MERRILLVILLE, Ind. - Northern Indiana Public Service Company (NIPSCO) announced today that natural gas costs for June 2003 increased compared to last month. NIPSCO residential customers will see an increase in natural gas costs of approximately 4.3 percent when compared to May through the company's gas cost adjustment (GCA).

For example, a typical NIPSCO residential customer using 50 therms of natural gas during May should expect an increase of $2.08 from last month's statement in their June billing, although total bill amounts will vary as a result of actual consumption. The adjustment was approved subject to refund by the Indiana Utility Regulatory Commission (IURC).
Nationally, higher natural gas market prices are being driven by utilities needing to refill storage facilities this spring and summer depleted by the past winter's below normal temperatures and a decline in natural gas production. According to the Energy Information Administration (EIA) current U.S. storage inventories are 41 percent less than one year ago and 32 percent less than the five-year average.
NIPSCO encourages customers experiencing bill payment problems to contact NIPSCO at 1-800-4-NIPSCO (1-800-464-7726). Customer Service Representatives can provide options for managing energy costs and also help customers access available energy assistance. It is also important for customers to take advantage of all information available through their monthly bill messages, bill inserts and NIPSCO's web site. Helpful information is also available from the Indiana Office of Utility Consumer Counselor (OUCC) toll-free at (888) 441-2494, or visit their website at www.in.gov/oucc. The OUCC is the state agency that represents the interests of all Indiana consumers in matters related to the provision of utility services.

For natural gas customers who want consistent monthly payments, 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, and NIPSCO's Price Protection Service option allows customers to fix or cap their per unit cost of natural gas.
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 customers without any markup under its traditional, regulated GCA service option. 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 natural gas use.
In addition, NIPSCO is reminding customers about their ability to complete various transactions through its automated phone service, DirectLink, including several convenient bill payment options that differ from traditional mail, such as writing a check via phone or paying with a credit or debit card. Customers with Internet access can also pay with a credit, debit card, or check online, or enroll in NIPSCO's Online Bill Payment program. For more information about DirectLink services and options, customers can call NIPSCO at 1-800-4-NIPSCO (1-800-464-7726).
The Indiana Utility Regulatory Commission (IURC) may be contacted toll-free at (800) 851-4268, or via their website at www.in.gov/iurc. An advocate of neither the public nor the utilities, the IURC is required by state statute to make decisions that balance 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 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.