FOR IMMEDIATE RELEASE
January 7, 2004

FOR ADDITIONAL INFORMATION

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

MERRILLVILLE, Ind. - Frank A. Shambo has been named Director of Regulatory and Government Policy for the Indiana Energy Group, which includes Northern Indiana Public Service Company (NIPSCO), Northern Indiana Fuel & Light and Kokomo Gas and Fuel Company.

In this role, Shambo will work closely with Indiana's regulatory agency officials regarding policies and practices of the three companies. Dan Gavito, who previously served in the role has been named vice president, Energy Supply Services at NiSource. Shambo will report directly to NIPSCO President Mark Maassel.

Prior to being named to this position, Shambo had been an independent consultant working with NIPSCO's regulatory affairs. In the past 18 years, he also has worked in marketing, finance and sales, in the energy industry. Shambo has a master's degree in Management from Northwestern University in Evanston, Ill., and a bachelor's degree in accounting from Western Illinois University in Macomb, Ill.

"Frank's broad experience in regulatory, sales, finance and marketing will be a significant asset to our leadership team," Maassel said.

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.