MERRILLVILLE, Ind. -Northern Indiana Public Service Company (NIPSCO), a subsidiary of NiSource Inc. (NYSE: NI), today announced plans to indefinitely shut down its Dean H. Mitchell Generating Station (DHMGS) located in Gary, Ind. This decision is based on declining electric demand as a result of the economic downturn and the significant cost required to maintain the aging facility.

There will be no impact on service or reliability to NIPSCO electric customers due to the shutdown of DHMGS.

"As always, the safe, reliable delivery of electricity and natural gas is our primary mission," said Barrett Hatches, NIPSCO president and chief executive officer. "Given the current economic climate, the decision to shut down the Mitchell Generating Station allows us to more efficiently serve our customers while ensuring long-term benefits to customers and NiSource shareholders."

Originally constructed in 1955, DHMGS has the oldest active operating units and is the least efficient station in the NIPSCO electric production system.

Due to the station's age, extensive capital expenditures would be required in the next several years to ensure continued reliability. Furthermore, substantial capital investment would be needed to comply with current and future environmental standards set by the U.S. Environmental Protection Agency (EPA) and the Indiana Department of Environmental Management (IDEM).

NIPSCO has notified the 112 employees who work at DHMGS that their current positions will be eliminated. Of these employees, 84 are represented by the United Steelworkers of America, and 28 are salaried employees.

DHMGS will cease production of electricity as early as the end of this year, with completion of the shutdown process expected by March 1, 2002.

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