FOR IMMEDIATE RELEASE
March 16, 2004

FOR ADDITIONAL INFORMATION
 
Larry Graham, Manager
NIPSCO Communications
(260) 439-1330

NIPSCO Prepared to Assist Customers

MERRILLVILLE, Ind. --- Northern Indiana Public Service Company (NIPSCO) is prepared to work with customers who require bill payment assistance at the end of the state moratorium on service disconnections. Low Income Home Energy Assistance Program (LIHEAP) customers are encouraged to call NIPSCO at 1-800-464-7726 between 7:00 a.m. and 7:00 p.m., Monday through Friday, to obtain information on payment agreements and energy assistance funding to avoid any interruption in service.

“By carefully reviewing accounts and working with energy assistance agencies across our customer communities, including our own Gift of Warmth agencies, we have been very successful in avoiding any interruption of service following the end of the moratorium period,” said Debora Owen, manager of NIPSCO’s Customer Service Center. “The key is for customers who are having difficulty making payments, including those who have disconnect notices, to contact NIPSCO as soon as possible.”

As of March 15, approximately 30,000 NIPSCO customers received assistance through the State Energy Assistance Program (EAP), primarily by the federally funded LIHEAP. NIPSCO has been able to avoid interruption of service to all but a small percentage of customers covered by the moratorium by reviewing customer accounts for payment activity, providing payment agreements, making phone calls to customers in need, and helping customers identify energy assistance options prior to disconnection.

The following steps are taken before any disconnection:

  1. All delinquent EAP customers continue to receive a reminder notice of the delinquency on their bill each month during the moratorium.
  2. Beginning in early March, NIPSCO mails disconnect notices separately from the bill.
  3. NIPSCO attempts to call each customer within three to five days of the scheduled disconnect date.
  4. NIPSCO attempts another call one day prior to the disconnect date to offer the customer payment or energy assistance options to help avoid disconnection of service.

The effect of wholesale gas cost included in NIPSCO rates, which was lower than earlier anticipated, has helped to minimize the number of customers who may be subject to disconnection of service.

The NIPSCO Heat Aid 2004 program, which was launched on January 26, 2004 as part of an agreement between NIPSCO and the Indiana Office of Utility Consumer Counselor (OUCC), has distributed approximately one-third of the $656,000 initial funding. The program continues to be available for customers who haven’t already received energy assistance and are having difficulty paying their 2003-2004 winter natural gas bills or security deposits required for reconnection of service.

The NIPSCO Heat Aid 2004 program will provide the following types of assistance:

  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, 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.