NiSource: NIPSCO Electric Order in Line With Outlook

MERRILLVILLE, Ind., Aug. 26 /PRNewswire-FirstCall/ — NiSource Inc. (NYSE: NI)
said today that, based on an initial review, it has concluded that the overall
impact of an electric rate order received by Northern Indiana Public Service Co.
(NIPSCO) is in line with the company’s expected outcome for the case and its
financial outlook.

“The IURC’s order in NIPSCO’s 2008 electric rate case is a significant milestone
in our effort to modernize rate design, enhance customer service and
reliability, and build a platform for long-term, investment-driven growth,”
NiSource President and CEO Robert C. Skaggs Jr. noted. “This important
development, along with the proposed settlement of NIPSCO’s natural gas rate
case announced earlier this week, represents another significant step forward in
our Indiana business agenda.”

Skaggs acknowledged the IURC’s straightforward assessment of NIPSCO’s
operational and customer service improvement opportunities, noting that these
have been key areas of ongoing focus for the company.

“The Commission’s order references both challenges and positive efforts by
NIPSCO to improve customer service, responsiveness, and reliability,” Skaggs
said. “While our NIPSCO team has made progress in each of these areas, we know
additional work remains. Our entire team embraces that challenge, and is
committed to delivering material improvements as we move forward.”

NiSource is continuing to review the order and will provide updates as
necessary. As previously announced, NIPSCO plans to make another electric rate
filing later this year to propose new customer programs and update its electric
rates to reflect more recent operating costs and usage levels. The company has
not yet determined potential rate impacts associated with that filing.

Additional information about the NIPSCO rate order and NiSource’s long-term,
investment-driven growth strategy is available at www.nisource.com and
www.NIPSCO.com.

About NiSource

NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company
engaged in natural gas transmission, storage and distribution, as well as
electric generation, transmission and distribution. NiSource operating companies
deliver energy to 3.8 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. NI-F

Forward-Looking Statements

This news release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Those statements include statements
regarding the intent, belief or current expectations of NiSource and its
management. Although NiSource believes that its expectations are based on
reasonable assumptions, it can give no assurance that its goals will be
achieved. Readers are cautioned that the forward-looking statements in this news
release are not guarantees of future performance and involve a number of risks
and uncertainties, and that actual results could differ materially from those
indicated by such forward-looking statements. Important factors that could cause
actual results to differ materially from those indicated by such forward-looking
statements include, but are not limited to, the following: weather; fluctuations
in supply and demand for energy commodities; growth opportunities for NiSource’s
businesses; increased competition in deregulated energy markets; the success of
regulatory and commercial initiatives; dealings with third parties over whom
NiSource has no control; actual operating experience of NiSource’s assets; the
regulatory process; regulatory and legislative changes; the impact of potential
new environmental laws or regulations; the results of material litigation;
changes in pension funding requirements; changes in general economic, capital
and commodity market conditions; and counter-party credit risk, and the matters
set forth in the “Risk Factors” section in NiSource’s 2009 Form 10-K, many of
which risks are beyond the control of NiSource. NiSource expressly disclaims a
duty to update any of the forward-looking statements contained in this release.