FOR IMMEDIATE RELEASE
November 9, 2004

FOR ADDITIONAL INFORMATION

Julia Van De Water, Manager NIPSCO Communications (574) 284-2151 Anthony Swinger OUCC Public Information Officer (317) 233-2747 Mary Beth Fisher IURC Director of Public Information (317) 232-2297

MERRILLVILLE, Ind. - Northern Indiana Public Service Company (NIPSCO) announced today that natural gas costs for November 2004 increased compared to last year. NIPSCO residential customers will see an increase in natural gas costs of approximately 13 percent when compared to November 2003. The Indiana Utility Regulatory Commission (IURC) approved the adjustment subject to refund.

A typical NIPSCO residential customer using 100 therms of natural gas should expect an increase of $11.56 from last year’s statement in their November billing, although total bill amounts will vary as a result of actual consumption.

Following dramatic and significant changes in the natural gas wholesale market during the past few weeks, NIPSCO announced gas bills are expected to be 10 to 15 percent higher for the November 2004 to March 2005 winter heating season when compared to last winter. This assumes normal winter temperatures, however, and colder than normal weather, as well as other factors, could have a further impact on natural gas prices and customer bills.

NIPSCO utilizes a balanced portfolio which includes storage gas purchased prior to winter and contracts with suppliers to reduce price volatility for our customers.

For natural gas customers who want consistent monthly payments, NIPSCO’s BudgetPlan allows customers to spread gas costs over an entire year.

The NIPSCO Choice program gives customers an opportunity to choose an alternative natural gas supplier, and NIPSCO’s Price Protection Service option allows customers to fix or cap their per unit cost of natural gas.

The GCA is an allowed monthly adjustment to the gas supply charge portion of NIPSCO’s natural gas service rates. The adjustment, which must be approved by the IURC, reflects the fluctuations in the price NIPSCO pays in the marketplace for natural gas. The company passes on the costs of the natural gas directly to customers without any markup under its traditional, regulated GCA service option.

NIPSCO is reminding customers about their ability to complete various transactions through its automated phone service, DirectLink, including several convenient bill payment options that differ from traditional mail, such as writing a check via phone or paying with a credit or debit card. Customers with Internet access can also pay with a credit, debit card, or check online, or enroll in NIPSCO’s Online Bill Payment program. For more information about DirectLink services and options, customers can call NIPSCO at 1-800-4-NIPSCO (1-800-464-7726).

Aside from the gas supply charge, the other components of NIPSCO’s monthly gas statements include service costs for gas delivery, and state and local taxes. These service costs, which are also regulated by the IURC, vary with monthly natural gas use.

Helpful consumer information on natural gas prices and managing utility bills is also available from the Indiana Office of Utility Consumer Counselor (OUCC) toll-free at (888) 441-2494, or visit their website at www.in.gov/oucc. The OUCC is the state agency that represents the interests of all Indiana consumers in matters related to the provision of utility services.

The IURC may be contacted toll-free at (800) 851-4268, or via their website at www.in.gov/oucc. An advocate of neither the public nor the utilities, the IURC is required by state statute to make decisions that balance the interests of all parties to ensure that utilities provide adequate and reliable service at reasonable prices.

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.com.