FOR IMMEDIATE RELEASE
June 20, 2002

FOR MORE INFORMATION CONTACT

Regina D. Biddings, Director NIPSCO Communications & Community Relations (219) 647-6388

INDIANAPOLIS and MERRILLVILLE, Ind. - Electric customers of Northern Indiana Public Service Company (NIPSCO) will receive approximately $55 million each year in credits to their electric bills for 49 months, which will amount to approximately $225 million, according to a settlement agreement filed today with the Indiana Utility Regulatory Commission (IURC).

The settlement is the result of months of negotiations among NIPSCO, the Indiana Office of Utility Consumer Counselor (OUCC), and a group of commercial and industrial customers that includes: Central Soya Company; Ispat Inland, Inc.; Unilever Home and Personal Care USA; Praxair, Inc.; United States Steel Corporation; and Bethlehem Steel Corporation.

If approved by the IURC, NIPSCO electric customers, other than those on certain contract rates, will see a credit of approximately 6 percent of the electric portion of their monthly NIPSCO bill.

"NIPSCO's base electric rates, established in 1987, will remain the same, and this agreement provides NIPSCO electric customers with additional benefits," stated Barrett Hatches, NIPSCO president and chief executive officer. "In addition to credits customers will see on their bills, NIPSCO has committed to continuing to improve air quality and support economic development in northern Indiana.

"Also, in collaboration with the OUCC, NIPSCO will develop measures related to electric service reliability and customer service."

The settlement agreement filed today will now be reviewed by the IURC, which will issue a final order on this matter.

If the IURC approves, credits will be based on electric usage beginning July 1. Credits will begin appearing on customers' bills shortly after the IURC issues its order on this matter.

NIPSCO, with headquarters in Merrillville, Ind., is one of the 10 energy distribution companies of NiSource Inc. (NYSE: NI). With nearly 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 3.7 million natural gas and electric customers primarily in nine states. More information about NIPSCO is available at www.nipsco.com.