FOR IMMEDIATE RELEASE
November 3, 2004

FOR ADDITIONAL INFORMATION

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

MERRILLVILLE, Ind. - Community and environmental organizations located in areas served by Northern Indiana Public Service Company (NIPSCO) are encouraged to apply for grants of between $500 and $5,000 (with special grants occasionally awarded up to $10,000) from the NiSource Environmental Challenge Fund (ECF).

Grant guidelines and applications are available on the NiSource web site at www.nisource.com/enviro/ecf.asp. Grant applications will be accepted between Nov. 1, 2004, and Feb. 28, 2005.

NIPSCO’s parent company, NiSource Inc. (NYSE:NI), established the ECF in 1995 as a not-for-profit corporation to support local natural resource and wildlife improvement projects, and related educational and recreational efforts.

Local Advisory Committees are located in Indiana, Ohio, Pennsylvania, Virginia, West Virginia and New England. These committees, comprised of NIPSCO employees and regional environmental and community leaders, will review the proposals and award grants to those projects that best serve the environmental needs of the communities. Grant awards will be announced on Earth Day, April 22, 2005.

“The Environmental Challenge Fund is one of many ways NiSource and its operating companies support local organizations that make a difference in the communities we serve,” said NIPSCO President Mark Maassel. “Our customers, our employees, and our company benefit by having a cleaner environment and healthier communities.”

The ECF has awarded $330,000 to 86 projects throughout the NiSource market area within the past two years. It has been awarding grants since 1995, and is supported by the NiSource Charitable Foundation.

About NIPSCO
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.

About NiSource
NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 holding company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.7 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com.