FOR IMMEDIATE RELEASE
December 19, 2003

FOR ADDITIONAL INFORMATION

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

MERRILLVILLE, Ind. --- Northern Indiana Public Service Company (NIPSCO) announced today that it is exploring options to meet the future needs of its residential, commercial and industrial electric customers.

The company has issued a Request for Proposals (RFP) seeking bids on power supplies. The RFP explores a number of possible purchases ranging from 50 to 500 megawatts over three to seven years. Proposals are due back to the company by January 9, 2004.

"Looking at the energy available in power markets is a part of the process to ensure a safe, reliable supply of electricity for our customers and the company," said Jerry Godwin, NIPSCO vice president and chief operating officer. "Our responsibility is to provide reliable, environmentally sound, cost-effective power to our customers when they need it. This is simply one step in our integrated power supply planning process as we look into the future."

The company has historically provided electricity to customers using a balanced portfolio that combines its own generating capacity with purchased power. Among the options being considered by NIPSCO is whether the Dean H. Mitchell Generating Station will be restarted in 2004. However, with the strengthening economy, the continued growth of customers, and reserve capacity requirement, electricity forecasts suggest that NIPSCO may need to supplement its current generation capacity, even if the station is up and running.

"NIPSCO has always been an environmentally conscientious company," Godwin continued. "Due to current and ongoing environmental requirements, it may be more environmentally sound and cost-effective to purchase power than to develop additional generating facilities."

NIPSCO anticipates that evaluation of any proposals it receives will take some time. The evaluations will include many factors, such as reliability, type and location of the generating facilities used to provide the electricity and transmission facilities used to deliver to NIPSCO's territory.

Forward-looking statements
This news release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to various risks and uncertainties. The factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed herein include, among other things, increased competition in deregulated energy markets, weather, fluctuations in supply and demand for energy commodities, growth opportunities for NIPSCO's regulated businesses, dealings with third parties over whom NIPSCO has no control, the regulatory process, regulatory and legislative changes, changes in general economic, capital and commodity market conditions, and counter-party credit risk, many of which risks are beyond the control of NIPSCO. These and other risk factors are detailed from time-to-time in the company's SEC reports. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The company does not undertake any obligation to publicly release any revision to these forward-looking statements to reflect events or circumstances after the date of this news release.

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. # # #