April 28, 2000

Larry Graham

NIPSCO Communications Interim Manager

(219) 662-4254

Ryan Soultz

IURC Public Information Director

(317) 232-2297

Jo Lynn Ewing

OUCC Public Information Officer

(317) 233-2747

MERRILLVILLE, Ind. – Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc., announced today an increase in its gas cost adjustment (GCA) for May 2000.

This adjustment, which was approved subject to refund by the Indiana Utility Regulatory Commission (IURC), represents a 4.24 percent increase in a typical residential customer’s bill from April 2000 and a 21.15 percent increase when compared with May 1999. NIPSCO’s business and commercial gas customers will see similar impacts on their May billing statements.

For example, a typical NIPSCO residential customer using 50 therms of natural gas during May should expect a $1.41 increase in their May billing statement, when compared to last month and a $6.05 increase when compared to May last year.

The increase in May’s GCA is driven by today’s national storage levels being lower than were anticipated earlier this year. Cold weather in the Midwest and the Northeast coupled with the reversal in the traditional injection cycle due to higher gas consumption during April has caused May prices to be higher than last month and May of 1999. Storage inventory during April 2000 was approximately 74% of April 1999 level. Natural gas prices are anticipated to remain strong through the summer injection months as U.S. storage replenishment demand competes for supply with U.S. electric generation gas requirements during the summer cooling months.

NIPSCO is committed to providing its customers with reliable natural gas supplies at the lowest possible cost. To do this, NIPSCO continuously seeks to improve its purchase contracts and its storage and transmission costs in an effort to ensure the most competitive price for its customers and ease the effect of market price fluctuations on their monthly billing statements.

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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. The company passes on the costs of the natural gas directly to the customer without any markup.

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.

For natural gas customers who are more comfortable with price stability, NIPSCO continues to offer its Budget Plan as an option to stabilize their monthly gas bill.

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, 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.

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