FOR IMMEDIATE RELEASE
March 26, 2003

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

NIPSCO ECONOMIC DEVELOPMENT RATE APPROVED BY IURC
Electric Rate Discount Available to Qualifying New or Expanding Industries

MERRILLVILLE, Ind. --- Northern Indiana Public Service Company (NIPSCO) announced today that the Indiana Utility Regulatory Commission (IURC) approved its new Economic Development Rider (EDR), which will allow the utility to negotiate discounts on selected electric rates to assist in the attraction of a qualifying new business or expansion of an existing business in NIPSCO's service territory.

"NIPSCO has always been an important economic development partner, providing staff assistance, financial and technical web site support for the communities and economic development organizations across our service territory," said NIPSCO President and Chief Executive Officer Barrett Hatches. "Energy costs are one of many factors in deciding where to locate a new plant or expand an existing facility. NIPSCO's EDR will provide another tool to assist in the attraction and expansion of business in Northern Indiana."

The EDR will allow NIPSCO to negotiate discounts to selected electric rates at an average of up to 30% over a five-year period for qualifying businesses. It specifically targets new businesses and industries that are large electric energy users that would move into NIPSCO's service territory. It also would encourage existing businesses to expand and invest in NIPSCO's customer communities instead of another location.

NIPSCO's community relations and economic development representatives will be meeting with local economic development leaders in the coming weeks to review the new tariff.

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.