FOR IMMEDIATE RELEASE
January 30, 2004

FOR ADDITIONAL INFORMATION

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

MERRILLVILLE, Ind. --- Northern Indiana Public Service Company (NIPSCO) received 64 bid options in response to a Request for Proposals (RFP) that the company issued in December 2003. NIPSCO issued an RFP to explore options to meet the future needs of its residential, commercial and industrial electric customers.

Twenty-two companies submitted bids to provide power from facilities in seven states, including Indiana. The RFP explores a number of possible purchases ranging from 50 to 500 megawatts and a contract duration ranging anywhere from 2 to 20 years. The participating bidders submitted aggregate bids up to 7,250 megawatts (MW). The proposals also represented a variety of fuel sources, fuel types, as well as various lengths of time and varying degrees of firmness. The options being reviewed also include renewable energy sources and demand-side management.

"We are pleased with the number of bids we received," said Jerry Godwin, NIPSCO vice president and chief operating officer. "The analysis will include many factors, such as cost, reliability, type and location of the generating facilities used to provide the electricity, and transmission facilities used to deliver to NIPSCO’s territory. Due to the nature and complexity of this review, we expect to have the preliminary analysis complete in March."

The RFP review is part of the company’s overall future planning activities to ensure that NIPSCO continues to provide reliable, environmentally sound, cost-effective power to its customers when they need it. As the company maintains its record of achieving current and ongoing environmental requirements, it may be more environmentally sound and cost-effective to purchase power than to develop additional generating facilities, Godwin said.

NIPSCO earlier reported that electricity forecasts suggest that the company may need to supplement its current generation capacity in the future, even if the Dean H. Mitchell generating station is placed back into service.

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.