FOR IMMEDIATE RELEASE
August 30, 2004

FOR ADDITIONAL INFORMATION
Jim Fitzer, Public Affairs Manager
NIPSCO Communications
(219) 477-3281

NIPSCO PARTNERS WITH NICTD TO INCREASE RELIABILITY
OF SOUTH SHORE RAILROAD ELECTRIC LINE

MERRILLVILLE, Ind. -- Northern Indiana Public Service Company (NIPSCO) has heightened its efforts to increase the system reliability and transmission capacity of the NIPSCO electric line along the South Shore Railroad, thereby decreasing joint pole disruptions by the end of the year.

NIPSCO is partnering with the Northern Indiana Commuter Transportation District (NICTD) to improve the electric system stretching from New Carlisle to Hammond. This project involves the replacement of hundreds of electric poles and insulators, a dozen electric switches, and nearly 30 miles of wire line.

“The South Shore Railroad plays an important role in the economy of northern Indiana,” said NIPSCO President Mark Maassel. “NIPSCO is making improvements to its transmission system at this time to ensure that the safe delivery of reliable energy to this customer continues – so the railroad can continue to expand and serve the needs of our region.”

Since 2000, NIPSCO has been working with the NICTD to upgrade, or replace as necessary, the poles supporting NIPSCO’s electric wires and NICTD’s catenary, which uses electricity supplied by NIPSCO to power the South Shore Railroad.

According to Gerald Hanas, NICTD’s general manager, “Our passengers need reliable transportation. These upgrades to NIPSCO’s power transmission system will reduce joint pole line service disruptions. NIPSCO’s upgrades, combined with NICTD’s investments in new signal and catenary technology over the next five years, will improve overall train service reliability.”

Full time work crews and senior staff have been assigned to the project from NIPSCO’s Engineering, Operations, and Construction departments and NICTD’s Engineering and Passenger divisions.

“The South Shore Railroad is a vital link between northwest Indiana and Chicago that commuters depend on every day,” said Maassel “Supporting the reliability and growth of this asset is critical to the growth of our economy and we are pleased to partner with NICTD in this effort.”

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 440,000 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.nisource.com.