FOR IMMEDIATE RELEASE
December 16, 2004

FOR ADDITIONAL INFORMATION

Larry Graham, Manager NIPSCO Communications (260) 439-1330 Anthony Swinger, Public Information Officer Indiana Office of Utility Consumer Counselor (317) 233-2747

MERRILLVILLE, Ind. - Northern Indiana Public Service Company (NIPSCO) and the Indiana Office of Utility Consumer Counselor (OUCC) announced today that the Indiana Utility Regulatory Commission (IURC) has approved NIPSCO’s $5.7 million Winter Warmth energy assistance program. The one-year pilot program will assist qualifying low-income NIPSCO natural gas customers with the payment of delinquent utility bills and natural gas deposits. The program will begin immediately.

To be eligible, a customer must either qualify for the Low Income Home Energy Assistance Program (LIHEAP) or otherwise have a financial hardship situation as determined by an administering Winter Warmth agency.

Customers will be able to apply for the program at one of 26 existing energy assistance agency sites located across NIPSCO’s northern Indiana service area.

Qualifying customers can receive up to $400 in annual energy assistance from the Winter Warmth program that can be applied to both the payment of delinquent utility bills and natural gas deposits. Additionally, as part of the program, NIPSCO will limit natural gas deposit payments for LIHEAP eligible customers to $150 and $300 for other non-LIHEAP eligible customers determined to have a financial hardship.

"NIPSCO has listened to our energy assistance providers and, with the support of our customers, has responded by developing this unique program," said NIPSCO President Mark Maassel. "We share everyone’s concern about how to best assist persons with limited or fixed incomes, and we want to do our part to help those customers be warm and safe in their homes this winter."

The Winter Warmth program will allow for flexibility by energy assistance agencies in meeting customer needs and will supplement existing energy assistance funding.

Maassel continued, "We also want to thank the IURC for its timely decision and the OUCC for working with NIPSCO to reach agreement on the Winter Warmth program."

"High natural gas prices are affecting consumers all across the country," said Indiana Utility Consumer Counselor Anne E. Becker. "This one-year pilot will provide immediate assistance to those in northern Indiana that are especially hard hit. This program, and others like it in central and southern Indiana, will be evaluated to help determine the most effective ways of helping at-risk consumers stay warm and safe in the face of higher heating costs."

The program will be funded by $700,000 in overall energy assistance from NIPSCO and through a small monthly charge included in residential, commercial and industrial natural gas customers’ bills. An average NIPSCO residential natural gas customer will pay approximately $0.50 per month for the program.

A listing of NIPSCO Winter Warmth agencies is attached.

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.