FOR IMMEDIATE RELEASE
June 16, 2003

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

NIPSCO Reaches Compromise with Michigan City, LaPorte and Plymouth

MERRILLVILLE, Ind. --- Northern Indiana Public Service Company (NIPSCO) and the cities of LaPorte, Michigan City and Plymouth have agreed to a settlement that addresses the communities' concerns regarding NIPSCO's operating facilities in LaPorte and Plymouth. The company today filed settlement documents with the Indiana Utility Regulatory Commission (IURC), which outline a compromise between the company and the cities.

"These agreements are possible because of the commitment of community leaders and NIPSCO to resolve our differences," said Barrett Hatches, NIPSCO president and chief executive officer. "This compromise also ensures ongoing communication between the communities and the company regarding the level of service we provide. We have always been partners in community and economic development issues and we look forward to continuing that relationship."

The three-year settlement agreements provide for the following:

The key to the compromise was the blending of the expansion of NIPSCO's area service model with traditional headquarters-based operations. The area service model places employees and materials closer to the customer.

"We remain committed to reach a compromise with the remaining parties to this proceeding prior to hearings, which would be scheduled before the IURC,'' Hatches said.

About NIPSCO
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.