FOR IMMEDIATE RELEASE
October 22, 2002

FOR ADDITIONAL INFORMATION
Larry Graham, Manager
NIPSCO Communications & Community Relations
(260) 439-1330

HEATING BILL INCREASE LIKELY
Customers Encouraged to Review Energy Bill Management Options

MERRILLVILLE, Ind. - Northern Indiana Public Service Company (NIPSCO) updated community leaders and social service agency representatives regarding the forecast for this coming winter's natural gas bills and available services and programs to help customers manage their energy bills this heating season.

If winter temperatures return to normal, natural gas bills could increase by as much as 45 percent due to an increase in usage and natural gas prices this heating season.

NIPSCO projected an average monthly heating bill for this winter would be $127 compared to $87 last winter.

"Our forecast of a potential 45 percent increase on customers' bills is a result of higher natural gas prices and increased usage," said Dan Gavito, vice president, NIPSCO Regulatory and Governmental Policy.

"We encourage our customers to consider all available options in managing their winter energy costs. It is important for customers to take advantage of all information available through their monthly bills, bill inserts, and NIPSCO's Web site."

In addition to natural gas price projections, information about NIPSCO products, services, and energy assistance programs was provided.

Company officials also suggested customers consider NIPSCO's BudgetPlan to help manage high winter gas bills. Customers pay the same monthly BudgetPlan amount until actual and budget payments are reconciled in May 2004.

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.