FOR IMMEDIATE RELEASE
October 14, 2003

FOR ADDITIONAL INFORMATION
 
Regina D. Biddings, Director
NIPSCO Communications
(219) 647-6388

Indiana Court Of Appeals Upholds NIPSCO Electric Rate Settlement Agreement
Ruling is a victory for consumers; credits on electric bills to continue

MERRILLVILLE, Ind. --- The Indiana Court of Appeals today upheld the 2002 settlement agreement that has resulted in $55 million per year in credits to electric customers of Northern Indiana Public Service Company (NIPSCO).

The appellate court affirmed in all respects the Indiana Utility Regulatory Commission's (IURC) September 2002 order approving a settlement agreement among parties to an IURC investigation of NIPSCO's electric rates. The court's unanimous opinion states that the IURC's approval of the settlement agreement is consistent with the law and supported by substantial evidence.

"The appellate court's ruling is a great victory for our customers," said Mark Maassel, president of NIPSCO. "Since November 2002, every NIPSCO electric customer has received a monthly credit averaging 5 percent to 6 percent of their electric bill. Today's ruling provides rate stability for NIPSCO electric customers, ensuring that these credits will continue and reaffirming the balanced resolution of this issue."

Under terms of the settlement agreement reached by NIPSCO, the Indiana Office of Utility Consumer Counselor and several industrial and commercial customers, which was approved by the IURC in September 2002, NIPSCO customers are receiving bill credits of approximately $55 million each year, for a cumulative total of $225 million for the 49-month term of the agreement.

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.