NiSource Unit Files Rate Case Settlement With Pennsylvania Public Utility Commission

MERRILLVILLE, Ind., July 2 /PRNewswire-FirstCall/ -- NiSource Inc. NYSE: NI today announced that one of its natural gas subsidiaries, Columbia Gas of Pennsylvania (CPA), has filed a unanimous settlement with an Administrative Law Judge of the Pennsylvania Public Utility Commission (PUC) detailing an agreement reached with regulatory stakeholders on an adjustment to its distribution rates. The settlement involves a base rate case filed by CPA in January 2008, the company's first rate case in 12 years. Subject to approval by the PUC, new rates under the settlement are expected to become effective October 28, 2008.

"We applaud the efforts that were put forth by all parties to craft a settlement that meets the needs of the company and its many stakeholders," NiSource Gas Distribution Chief Executive Officer Jimmy Staton said. "We are committed to providing safe and reliable service to our customers in Pennsylvania, and throughout all of our NiSource service areas, as well as to making the infrastructure investments necessary to deliver on that commitment."

NiSource President and Chief Executive Officer Robert C. Skaggs Jr. added, "The CPA settlement represents another step forward by our team in executing on our 2008 Path Forward business plan. The outcome of the case is consistent with our expectations and reflects our philosophy of working collaboratively with stakeholders to achieve mutually beneficial results." Skaggs noted that the settlement is expected to contribute approximately $0.06 of basic earnings per share in 2009, after taking into consideration expected expense levels and interest costs associated with CPA's infrastructure improvement program.

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 http://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 presentation 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; the success of NiSource's restructuring of its outsourcing agreement; actual operating experience of NiSource assets; the regulatory process; regulatory and legislative changes; changes in general economic, capital and commodity market conditions; and counter-party credit risk.