FOR IMMEDIATE RELEASE
September 21, 2004

FOR ADDITIONAL INFORMATION

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

NIPSCO Winter Warmth Energy Assistance Program Filed With IURC
Program to provide utility bill and deposit assistance for low-income customers

MERRILLVILLE, Ind. -- Northern Indiana Public Service Company (NIPSCO) announced today it has filed with the Indiana Utility Regulatory Commission (IURC) its NIPSCO Winter Warmth energy assistance program. The program would provide additional assistance to low-income customers eligible for the state’s Energy Assistance Program (EAP) with payment of utility bills and security deposits needed to reestablish natural gas service or avoid a pending service disconnection.

Approval of the program by the IURC will be required prior to implementation.

NIPSCO will be working closely with the Office of the Utility Consumer Counselor (OUCC) to obtain approval of the NIPSCO Winter Warmth program for this winter heating season.

As submitted to the IURC, the program could provide up to $4.6 million in energy assistance to low-income natural gas customers in NIPSCO’s service territory. The funding would supplement energy assistance programs currently available.

The program will utilize existing energy assistance agencies to assist and simplify the application process for our customers.

“As we have in past years, NIPSCO is proposing a targeted energy assistance program to meet the current and expected needs of our low-income customers,” said NIPSCO President Mark Maassel. “There is an unmet need for energy assistance that will require bringing together all available resources if we are to achieve our goal of keeping customers warm and safe in their homes this winter.”

NIPSCO and its customers would provide funding for the program. NIPSCO would contribute up to $700,000 in overall energy assistance while customers would pay an amount not expected to exceed $0.50 per month.

“Only by combining existing government supported energy assistance, NIPSCO funding and contributions from our customers will we be able to meet the goal of restoring service to low-income customers across northern Indiana,” said Maassel.

Two other large natural gas utilities in the state, Citizens Gas, and Vectren, recently received approval from the IURC and OUCC to implement Universal Service Programs (USP) as two-year pilots.

“We applaud these companies for their efforts to serve the needs of low-income customers. However, a USP is not the best solution for customers in northern Indiana. Instead, NIPSCO committed to develop the program that we are announcing today, “ Maassel said.

NIPSCO will be informing customers, media, and local energy assistance agencies when the Winter Warmth program is approved.

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.