FOR IMMEDIATE RELEASE
November 7, 2003

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

NIPSCO Generating Station Improvement Project Applauded
By Construction Advancement Foundation

MERRILLVILLE, Ind. Northern Indiana Public Service Company (NIPSCO) and BMW Constructors, Inc. received the 2003 Industrial Project of the Year award for a $60 million environmental improvement project at NIPSCO's Michigan City Generating Station.

At its 55th annual awards ceremony, the Construction Advancement Foundation (CAF) recognized the teamwork of NIPSCO and BMW Constructors for the installation of Selective Catalytic Reduction (SCR) equipment on Unit 12 at NIPSCO's Michigan City Generating Station. The Environmental Protection Agency requires that gaseous emissions of nitrous oxides (NOx) be reduced by May 2004. This is the first of NIPSCO's generating facilities to comply with this mandate.

"The completion of this project takes NIPSCO's environmental stewardship commitment a giant step forward," said Phil Pack, NIPSCO SCR Project Manager. "We are pleased with the success of the project -- from the excellent safety record with zero lost-time accidents to the state-of-the-art methods of construction. We worked closely with our general contractor, BMW Constructors, on the early planning and engineering phases to ensure that this project was a success."

The project included the assembly of more than 1,000 tons of structural steel, more than 1,000 tons of duct work, as well as huge induced draft fans, which are used to remove the combustion gases from the boiler. The 180-foot by 40-foot by 80-foot SCR system was commissioned and start-up began in June 2003.

The CAF Award for Industrial Project of the Year is based on seven criteria: Safety; Sympathy for the Environment and Its Surroundings; Excellence in Partnering and Teamwork; Quality in Project Management; Innovation and Uniqueness in Construction Techniques; Character and Value That Was Added to the Community; and Craftsmanship.

NIPSCO, with headquarters in Merrillville, Ind., is one of the 10 energy distribution companies of NiSource Inc. (NYSE: NI). With approximately 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 3.6 million natural gas and electric customers primarily in nine states. More information about NIPSCO is available at www.nipsco.com.