FOR IMMEDIATE RELEASE
May 5, 2004

FOR ADDITIONAL INFORMATION

Julia Van De Water, Manager NIPSCO Communications (574) 284-2151

MERRILLVILLE, Ind. --- Northern Indiana Public Service Company (NIPSCO) announced today that it will reduce the price of electricity for its customers during May, June and July of 2004.

The announcement follows a March 24, 2004, decision by the Indiana Utility Regulatory Commission (IURC) approving NIPSCO’s request for a reduction in its fuel cost adjustment during the summer months.

“NIPSCO is always working hard to hold the line on costs for our customers,” said NIPSCO President Mark Maassel. “We are very proud that NIPSCO has had the same electric rates since the 1980s.”

The average monthly electric bill for a residential customer will decrease more than $2.00 due to an increased customer credit resulting from adjustments made with the Fuel Costs Adjustment Clause (FAC).

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.