FOR IMMEDIATE RELEASE
April 2, 2001

FOR INFORMATION CONTACT
Regina D. Biddings
NIPSCO Communications Director
(219) 647-6388
Anthony Swinger
OUCC Public Information Officer
(317) 233-2747
Mary Beth Fisher
IURC Director of Public Information
(317) 232-2297

IURC CONFIRMS NIPSCO'S GAS PURCHASING PRACTICES BENEFIT CUSTOMERS
NIPSCO Receives Annual Review Approval from IURC

MERRILLVILLE--Northern Indiana Public Service Company (NIPSCO) announced that the Indiana Utility Regulatory Commission (IURC) has determined NIPSCO's natural gas purchasing practices are prudent, reasonable, and designed to provide reliable gas supplies to its customers at the lowest reasonable cost. The IURC further approved the utility's annual rates to be applicable during a twelve-month period that began November 1, 2000. There will still be monthly adjustments made to reflect fluctuations in the cost of natural gas.

"NIPSCO's ongoing gas purchasing strategies and practices are designed to deliver reliable natural gas at the lowest possible cost to our customers," said Dan Gavito, vice president, Regulatory and Governmental Policy. "This annual review of our process and costs provides the appropriate state regulatory agencies an opportunity to ensure our participation in the gas marketplace is in the best interest of our customers."

NIPSCO and other natural gas companies serving Indiana responded to an IURC request to present evidence regarding their purchasing practices as they relate to the customers' benefit. NIPSCO explained the design and management of its natural gas portfolio.

As a result of this testimony, the IURC determined NIPSCO's purchasing practices are "prudent, reasonable and designed to provide reliable gas supplies to the customers at the lowest reasonable price."

NIPSCO has made significant efforts to communicate with customers about rising natural gas prices since August 2000. In addition to securing low-cost supplies, NIPSCO continues to encourage its customers to investigate their payment options. NIPSCO's BudgetPlan and Choice programs, as well as various products and services can help. The company also provides information on various energy assistance programs currently available. For information about programs and other energy assistance, customers may visit our Web site at www.nipsco.com or call us at 1-800-4-NIPSCO.

Customers may contact the Indiana Office of Utility Consumer Counselor toll-free at (888) 441-2494, or visit their Web site 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 their Web site 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.

NIPSCO, with headquarters in Merrillville, Ind., is one of the 10 energy distribution companies of NiSource Inc. (NYSE: NI). With approximately 700,000 natural gas customers and 430,000 electric customers across the northern third of Indiana, NIPSCO is the largest natural gas distribution company, and the second largest electric distribution company, in the state. NiSource distribution companies serve 3.6 million natural gas and electric customers primarily in nine states. More information about NIPSCO is available at www.nipsco.com.