FOR IMMEDIATE RELEASE
February 3, 2004

FOR ADDITIONAL INFORMATION

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

MERRILLVILLE, Ind. - On December 31, 2003, Northern Indiana Public Service Company’s (NIPSCO) R.M. Schahfer Generating Station recorded a new electric production record of 10,010,132 megawatt hours (MWH) for the year.

"This production milestone was the direct result of the substantial efforts of the dedicated employees at our Schahfer Generating Station," said Jerry Godwin, NIPSCO vice president and chief operating officer. "This surpassed the old generation record of 9,973,797 MWHs produced in 1999. It’s a tremendous accomplishment because the record also was achieved while improving safety performance at the station."

Additionally, the employees at the Schahfer Generating Station also set a new record for the highest annual electric reliability in the station’s history. Other significant events occurring in 2003 include the successful installation of advanced pollution control equipment at NIPSCO’s Michigan City and Bailly Generating Stations.

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 3.7 million natural gas and electric customers primarily in nine states. More information about NIPSCO is available at www.nipsco.com.