December 20, 2000

FOR ADDITIONAL INFORMATION
Regina D. Biddings, Director
NIPSCO Communications & Community Relations
(219) 647-6388

NIPSCO CHALLENGE FUND PROMOTES
ENVIRONMENTAL STEWARDSHIP

MERRILLVILLE, Ind.-Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc. (NYSE: NI), 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 promote activities that will improve the environmental quality in our communities," said Art Smith, NiSource vice president and environmental 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 82 awards totaling $213,993 since the first grants were awarded in 1995. The deadline to submit applications for the fall awards is February 1, 2001. 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.

Northern Indiana Public Service Company (NIPSCO), with local headquarters in Merrillville, Ind., serves approximately 700,000 gas and 425,000 electric customers in 32 Indiana counties. NIPSCO is a subsidiary of NiSource Inc. (NYSE: NI), a holding company with headquarters in Merrillville, Ind., whose operating companies engage in virtually all phases of the natural gas business from exploration and production to transmission, storage and distribution, as well as electric generation, transmission and distribution. As the second largest natural gas distributor in the U.S., NiSource companies serve a high-growth energy corridor from the Gulf of Mexico to the Midwest to New England. NiSource distribution companies serve 3.6 million gas and electric customers primarily in nine states.