FOR IMMEDIATE RELEASE
December 3, 2001

FOR INFORMATION CONTACT Bill Keegan Director Corporate Communications (219) 647-6203

NORTHERN INDIANA PUBLIC SERVICE COMPANY
DECLARES PREFERRED DIVIDENDS

MERRILLVILLE, IN - Directors of Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc. (NYSE: NI), declared dividends on the following preferred stocks: $1.0625 a share on 4-1/4 percent Cumulative Preferred Stock; $1.12 a share on 4-1/2 percent Cumulative Preferred Stock; $1.05 a share on 4.22 percent Cumulative Preferred Stock; $1.22 a share on 4.88 percent Cumulative Preferred Stock; $1.86 a share on 7.44 percent Cumulative Preferred Stock; $1.88 a share on 7.50 percent Cumulative Preferred Stock; $1.9375 a share on 7-3/4 percent Cumulative Preferred Stock; $2.0875 a share on 8.35 percent Cumulative Preferred Stock; $1.625 a share on 6.50 percent Cumulative Preferred Stock; 75 cents a share on the Adjustable Rate Cumulative Preferred Stock, Series A.

All of the above are payable on January 14, 2002, to shareholders of record at the close of business on December 14, 2001

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.