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

NIPSCO ANNOUNCES GAS COST ADJUSTMENT TO REMAIN THE SAME IN APRIL

Merrillville, IN - Northern Indiana Public Service Company (NIPSCO) announced today that its gas cost adjustment (GCA) for April, 2001 would be unchanged from the previous month. However, residential customers may see a reduction due to lower seasonal usage. NIPSCO's business and commercial gas customers should see decreases on their April billing statements as well.

This adjustment was approved subject to refund by the Indiana Utility Regulatory Commission (IURC). Natural gas commodity prices for the month of April 2001 are projected to be the same as the March 2001 prices. As gas utilities begin to place gas in underground storage for next winter's requirements, national gas prices have begun to stabilize. The indices that track natural gas values indicate little change in prices in the near term.

For natural gas customers who are more comfortable with price stability, NIPSCO's BudgetPlan allows customers to spread gas costs over an entire year. The NIPSCO Choice program gives customers an opportunity to choose an alternative natural gas supplier.

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.

Customers may contact the Indiana Office of 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.

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.