FOR IMMEDIATE RELEASE
December 11, 2002

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

NIPSCO'S NEWEST GAS PRICING PRODUCT, DEPENDABILL, SOLD OUT

MERRILLVILLE, Ind. - Northern Indiana Public Service Company (NIPSCO) announced today participation in its newest gas cost management product, DependaBill, had reached its pilot program enrollment cap of 1,500 customers prior to the Dec. 16 enrollment deadline. DependaBill offers customers a fixed natural gas bill for a 12-month period that does not change with weather or natural gas prices.

"Customer response to our DependaBill program has been strong but not unexpected," said Dan Gavito, vice president, Regulatory and Governmental Policy. "While our standard budget plan has been popular with many of our customers, our market surveys and experience with existing programs like NIPSCO Choice and our Price Protection Program (PPS) have shown customers want more options to manage their energy bills. The continued growth of these programs further confirms our customers are informed consumers who gather and evaluate information prior to making choices on acquiring consumer products and services - energy is no different."

DependaBill differs from NIPSCO's budget plan by providing a predetermined, totally guaranteed fixed monthly natural gas bill unaffected by changes in natural gas prices and weather with no "settle up" amount at the end of the 12-month contract.

"NIPSCO was the first gas utility in the state of Indiana to offer customers choice in how they purchased natural gas with a pilot program initiated in 1997 in response to state legislation encouraging gas utilities to deregulate the process," said Gavito. "Since then we have developed our NIPSCO Choice program, which allows customers to compare prices and services from other suppliers, offered the Price Protection Program allowing customers to "lock in" a price for natural gas for a 12 month period and finally, our newest product, DependABill."

Of NIPSCO's approximately 700,000 natural gas customers, 80,000, or over 11 percent, participate in either NIPSCO Choice or the PPS program.

NIPSCO will be evaluating the DependaBill program during the pilot period and plans to open it to additional enrollments during 2003.

As with all of NIPSCO's products and services, a detailed enrollment form was made available to customers regarding the DependaBill program. Information sent with monthly bill statements included a comparison of a DependaBill quote for their residence with the BudgetPlan and the standard NIPSCO gas cost tariff.

NIPSCO continues to encourage customers to make informed decisions by reviewing all available information on DependaBill and any other products and services they may be considering to achieve their energy management goals.

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.