FOR IMMEDIATE RELEASE
October 3, 2003

FOR ADDITIONAL INFORMATION

Don Babcock, Liaison NIPSCO Communications and Community Relations (219) 647-4975

MERRILLVILLE, Ind. --- Northern Indiana Public Service Company (NIPSCO) announced today the utility has acquired property in the vicinity of Burdick Road and the American Natural Resources (ANR) interstate pipeline for a new regulator station in Jackson Township. The new regulator station, planned to be in service to meet winter heating demand, will ensure NIPSCO can provide sufficient supplies of natural gas to 2,200 customers in the Jackson Township area.

NIPSCO has already completed other modifications including system piping upgrades as part of the overall plan to solve the low-pressure problems in the area.

"Construction of the new gas regulator station will complete the plan to meet NIPSCO's legal obligation to provide safe, reliable gas service at sufficient pressure on peak winter heating days," said Ken Foley, vice president of distribution for NIPSCO. "This property is located directly over the ANR interstate pipeline and will enable NIPSCO to place a new source of gas in the area of immediate need, prior to the coldest part of this heating season. We are pleased to have been able to find an effective location through a willing seller, so that we can move ahead with the system improvement plans without further delay. Serving our customers safely and reliably is our highest priority."

"We can understand the residents' concerns, and are trying to balance them with our obligation to provide reliable natural gas to all of our customers," said Don Babcock, NIPSCO spokesman for Porter and LaPorte Counties. "At the residents' requests, we considered other alternative locations. However, none of the additional sites we studied recently were feasible. We have communicated our latest plans, and will make every effort to address concerns and be a good neighbor. Knowing there is a reliable source of gas to the area this winter should give customers peace of mind."

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.