FOR IMMEDIATE RELEASE
January 20, 2004

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

Salvation Army to Distribute Heat Aid to NIPSCO Customers

NIPSCO and State Utility Consumer Advocate Provide $656,000 in Bill Assistance

MUNSTER, Ind. - The Salvation Army has been selected by the Northern Indiana Public Service Company (NIPSCO) and the Indiana Office of Utility Consumer Counselor (OUCC) to distribute an additional $656,000 in energy assistance to help NIPSCO customers in need pay their winter heating bills. The funding is being made available as a result of an agreement between NIPSCO and the OUCC.

The funds will be distributed under the title “NIPSCO Heat Aid 2004” in order to assist customers who are having difficulty paying their 2003-2004 winter natural gas bills or security deposits required to reestablish disconnected service.

NIPSCO Heat Aid 2004 will be distributed through 15 Salvation Army Centers located throughout Northern Indiana beginning January 26, 2004. A contact list for the 15 centers is attached to this release.

“The Salvation Army is pleased to have been selected by NIPSCO and the OUCC as the agency to get assistance to people who need it,” said Lake County Coordinator Major Roger Ross. “This program allows us to help people who do not qualify for other programs. During the winter of 2001-2002, we distributed over one million dollars of special energy assistance funding provided by NIPSCO to help thousands of people across Northern Indiana from Hammond all the way to Fort Wayne. We look forward to the opportunity to help people again.”

In addition to the NIPSCO Heat Aid 2004 funds, the Salvation Army provided over $1.2 million dollars of assistance in 2003 to strengthen the children, youth and families of Lake County.

“The decision to work with the Salvation Army makes perfect sense,” said NIPSCO President Mark Maassel. “They have offices available to NIPSCO customers throughout our service territory. Many northern Indiana Salvation Army offices already administer NIPSCO’s Gift of Warmth dollars and they are very familiar with energy assistance programs.”

NIPSCO and the OUCC worked together to target $656,000 of a $3.8 million gas cost refund ordered in September 2003 by the Indiana Utility Regulatory Commission (IURC) for this bill assistance.

“This money will go directly to consumers who need it most,” said Indiana Utility Consumer Counselor Anne E. Becker. “While we are pleased to be able to assist these consumers, we urge all utility consumers who face financial hardships to contact their utilities immediately, work out payment plans in a proactive manner, and to seek out all available financial assistance.”

As administered by the Salvation Army, the NIPSCO Heat Aid 2004 program will have two key components:

  1. Deposit Assistance for LIHEAP Eligible NIPSCO Customers

    NIPSCO customers who qualify for energy assistance under the current LIHEAP guidelines and are currently without natural gas service can receive one-time assistance of up to $300 towards the deposit with their minimum matching payment of $100.

  2. Assistance for Non-LIHEAP NIPSCO Customers with Delinquent Balances

    NIPSCO customers within 126 percent to 250 percent of the federal poverty level who do not qualify for LIHEAP or are not protected under the moratorium, but who have received a delinquency notice after November 1, 2003, or are seeking restoration of their gas service following a disconnection, may use the one-time assistance of up to $300 to pay towards their utility arrearages with their minimum matching payment of $100.

    NIPSCO has launched other initiatives to help customers manage their energy bills this winter:

    Deposit Extension for Energy Assistance Customers

    Customers who need their natural gas service restored, whose deposits are more than $300, and who qualify for Energy Assistance under the current LIHEAP guidelines, can defer the deposit amount over $300 through a credit agreement for up to three months.

    Weatherization Assistance

    A final $105,000 from the $3.8 million gas cost refund will be allotted to the existing NIPSCO Low Income Home Weatherization Fund under the agreement between the OUCC and NIPSCO. This assistance will be offered through Local Community Action Agencies throughout NIPSCO’s service territory to help low-income NIPSCO customers improve the energy efficiency of their homes. Current weatherization assistance guidelines will be used to assist qualified NIPSCO customers. NIPSCO is seeking a matching grant from the Indiana Family and Social Services Administration (FSSA). NIPSCO Choice customers are not eligible for any component of this program. In October 2003, NIPSCO announced it would make available $150,000 in weatherization funds, which would be matched by the Indiana Family and Social Services Administration.

    NIPSCO’s Gift of Warmth Program

    The Gift of Warmth program, which has provided $500,000 annually in matching fund energy assistance since 1982 will continue to assist customers in need as in the past. In addition, NIPSCO’s Customer Service Call Center will continue to refer customers inquiring about assistance programs to local community agencies and township trustees.

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.nisource.com.

The OUCC is the state agency that represents the interests of all Indiana consumers in matters related to the provision of utility services. Helpful information is available from the Indiana Office of Utility Consumer Counselor (OUCC) toll-free at (888) 441-2494, or visit the website at www.in.gov/oucc.