MERRILLVILLE, Ind.-NiSource Inc. (NYSE: NI) subsidiary Northern Indiana Public Service Company (NIPSCO) is accepting applications for environmental restoration and enhancement projects that need financial support. NIPSCO's Environmental Challenge Fund provides funding for such projects throughout its market area.

The Environmental Challenge Fund is an employee-driven, non-profit corporation aimed at preserving, enhancing and protecting the environment. The fund provides employees the opportunity to demonstrate their commitment to the environment. It also offers organizations a funding source to advance their environmental restoration and enhancement efforts.

"This is part of our pledge to seek out opportunities to work with others who also are interested in activities that will improve the environmental quality in our communities," said Art Smith, NiSource Environmental officer and counsel. Smith directs the company's environmental programs and is treasurer of the Environmental Challenge Fund's board of directors.

Past fund recipients include environmental groups, community groups, neighborhood associations and other non-profit organizations. To date, the Environmental Challenge Fund has distributed 73 awards totaling $194,937 since the first grants were awarded in 1995. The deadline to submit applications for the fall awards is August 1, 2000. Applications are available by calling Karen McKeown, Environmental Affairs, 801 E. 86th Avenue, Merrillville, IN 46410, (219) 647-5246. Interested organizations also may apply via the Internet at www.nisource.com or www.nipsco.com.

Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc., is a regulated utility that provides natural gas to nearly 700,000 customers and electricity to 416,000 customers across the northern third of Indiana. NIPSCO is the largest natural gas distribution company and the second largest electric distribution company in Indiana. Information about NiSource Inc. and its subsidiaries is available via the Internet at www.nisource.com.

NiSource Inc. is a holding company with headquarters in Merrillville, Ind., whose primary business is the distribution of electricity, natural gas and water in the Midwest and Northeastern United States. The company also markets utility services and customer-focused resource solutions along a corridor from Texas to Maine.