FOR IMMEDIATE RELEASE
October 25, 2004

FOR ADDITIONAL INFORMATION

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

MERRILLVILLE, Ind. --- Northern Indiana Public Service Company (NIPSCO) announced today it would be partnering with The Family Social Services Administration (FSSA) to provide $400,000 to local Community Action agencies to help low-income customers weatherize their homes to make them more comfortable and energy-efficient this winter.

The announcement was made in conjunction with the State of Indiana proclaiming Monday, October 25, 2004, as "Weatherize Indiana Day." NIPSCO officials and the local Community Action agencies administering weatherization funds were at homes in Fort Wayne, Hammond, Michigan City, and South Bend, where they provided customers with tips and strategies on how to weatherize their homes.

"Investing in the weatherization of low-income customer homes today is important if customers are to manage their energy costs in the future," said NIPSCO President Mark Maassel. "These homes are often older and some of the least energy efficient. Weatherization will provide a long-term reduction in energy cost, increase home comfort, and make utility bills more manageable."

NIPSCO will be partnering with local Community Action agencies that currently administer weatherization programs by providing $250,000 for home weatherization this winter. The FSSA will provide an additional $150,000 for a total of $400,000 in weatherization funding. The weatherization funds will allow for a comprehensive weatherization of approximately 190 homes of qualifying low-income homeowners in NIPSCO’s northern Indiana service area. Homes selected for the weatherization program could receive improvements such as additional insulation and weather stripping, replacement of doors and windows, along with the inspection and repair of natural gas appliances.

To be considered for the weatherization program customers must meet income levels that would qualify them for the Low Income Home Energy Assistance Program (LIHEAP) and own their home. Customers can have their home considered for the weatherization program when they apply for LIHEAP assistance or can contact their local Community Action agency.

NIPSCO lists important energy saving suggestions in our "99 Ways to Conserve Energy" booklet, which is available to customers by visiting our Web site at www.nipsco.com or by calling 1-800-4NIPSCO (1-800-464-7726).

The following are just a few weatherization and conservation tips from NIPSCO:

• Make sure your home is well insulated. You can increase the comfort of your home while reducing your heating and cooling needs. Consumers should work with a licensed contractor to determine how well their home is insulated.
• Have your heating system checked by a qualified contractor. Furnaces that aren’t working properly are often inefficient and can create serious health dangers from carbon monoxide.
• Weather strip and caulk windows and doors. Install weather stripping and caulk around window openings and doorways to keep the cold out and the heat in.
• Once you stop the drafts, try turning back the thermostat. A home without drafts can feel comfortable even if you set back the thermostat two to four degree below what you are used to, especially if you wear a sweater.
• Change or clean your furnace air filter often. Dirty air filters lower the efficiency of your furnace.
• Install an automatic setback thermostat. You can reduce the temperature while you’re away from home and return the temperature to a comfortable level by the time you return. Keep the area around your thermostat clear.
• Check heat registers. Make sure they are not blocked by furniture, carpeting or other objects.
• Avoid heating or partially heating unused rooms. Shut registers and close unused rooms. Registers in upstairs rooms can often be partially closed since hot air rises.
• Open drapes and blinds during the day to allow sunlight to warm your home or business. Close them at night to help provide another layer of insulation and keep your home or business warmer.
• Keep the fireplace damper closed when not in use. Warm air will escape out of an open fireplace damper. Be sure the fire is out and the ashes are cold first.
• Water heaters use 21 percent of the energy consumed in an average home. Consider installing a water heater blanket and insulating hot water pipes.
• Turn down your water heater thermostat. At 120 degrees, or the medium-heat setting, your water heater will be more efficient and still provide enough hot water.
• Find additional energy-saving tips at:
  U.S. Department of Energy, www.energysavers.gov or 1-800-363-3732
  Insulation Fact Sheet, www.ornl.gov/roofs+walls/insulation

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.