FOR IMMEDIATE RELEASE
May 6, 2004

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

A Statement from Northern Indiana Public Service Company (NIPSCO) Regarding the Petition of the City of Gary, Indiana, for Valuation of NIPSCO’s Dean H. Mitchell Generating Station (DHMGS) and Approval of the Acquisition of DHMGS

MERRILLVILLE, Ind. --- NIPSCO's highest priority is to ensure the long-term, reliable supply of energy for our customers at competitive prices. We understand the city of Gary intends to file a petition with the Indiana Utility Regulatory Commission (IURC). NIPSCO will participate in any regulatory proceedings convened by the IURC.

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.