November 9, 2000

FOR ADDITIONAL INFORMATION
Larry Graham
NIPSCO Acting Communications Manager
(219) 647-6375

Mike Leppert
IURC Executive Director of External Affairs
(317) 232-2714

Anthony Dzwonar
OUCC External Affairs Director
(317) 233-9682

NIPSCO GAS COSTS TO DECREASE IN NOVEMBER

MERRILLVILLE, Ind. - Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc., announced a decrease in its gas cost adjustment (GCA) for November 2000.

This adjustment, which was approved subject to refund by the Indiana Utility Regulatory Commission (IURC), represents a 2.24 percent decrease in a typical residential customer's bill from October 2000 and a 47.50 percent increase when compared with November 1999. NIPSCO business and commercial gas customers will see similar impacts on their November billing statements.

For example, a typical NIPSCO residential customer using 150 therms of natural gas during November should expect a $2.92 decrease in their November billing statement when compared to last month and a $40.98 increase when compared to November of last year.

Even though natural gas commodity prices for the month of November 2000 are projected to be lower than October 2000, it is still anticipated prices this November will be significantly higher than November 1999.

The anticipated decrease in natural gas prices from last month's levels can be attributed to milder weather across the country, increased supplies entering the market and higher-than-expected storage levels during the month of October, improving utilities' access to natural gas supplies for the coming winter. NIPSCO cautioned it customers, however, that the November decrease does not necessarily reflect a trend of lower gas prices in future months.

"The November reduction demonstrates how market prices can move up or down in response to weather and other factors," said Dan Gavito, vice president of Regulatory and Governmental Police for Indiana. "One month does not reflect a trend and the future price of natural gas will continue to be driven by supply and demand, weather, and usage occurring at a national level."

The GCA is an allowed monthly adjustment to the gas supply charge portion of NIPSCO's natural gas service rates. The adjustment, which must be approved by the IURC, reflects the fluctuations in the price NIPSCO pays in the marketplace for natural gas. NIPSCO recovers through the GCA what it pays to purchase natural gas for its customers.

To help manage energy bills, NIPSCO customers can enroll in the BudgetPlan. "NIPSCO's BudgetPlan estimates a customer's annual usage and calculates an equal monthly payment," said Peggy Landini, NIPSCO's vice president of Commercial Operations. "This takes the guesswork out of budgeting for this winter's natural gas bills." The customer's budget payments and actual usage will "settle up" in May 2002. Customers not currently on the BudgetPlan, or customers that may need to adjust their current budget payment, should check their November billing statement for additional information.

Aside from the gas supply charge, the other components of NIPSCO's monthly gas statements include service costs for gas delivery, and state and local taxes. These service costs, which are also regulated by the IURC, vary with monthly gas use.

Customers may also inquire about similar pricing options with the qualified suppliers participating in the NIPSCO Choice program. Under the NIPSCO Choice program, customers have an opportunity to choose an alternative natural gas supplier.

For additional information or questions about NIPSCO's adjustment to its gas supply charge, the NIPSCO Choice program, or any of NIPSCO's products or services, call (800) 4-NIPSCO (800-464-7726), 24 hours-a-day, to speak with a NIPSCO customer service representative.

Customers may also contact the Indiana Office of the Utility Consumer Counselor toll-free at (888) 441-2494, or visit their website at www.state.in.us/oucc. The OUCC is the state agency that represents the interests of Indiana consumers in matters related to the provision of utility services.

The Indiana Utility Regulatory Commission (IURC) may be contacted toll-free at (800) 851-4268, or visit the their website at www.state.in.us/iurc. An advocate of neither the public nor the utilities, the IURC is required by state statute to make decisions that balances the interests of all parties to ensure that utilities provide adequate and reliable service at reasonable prices.

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.