For Immediate Release
May 23, 2003

RICHMOND -- NiSource Inc. (NYSE:NI) Chairman, President and Chief Executive Officer Gary L. Neale announced a $20,000 contribution from the NiSource Charitable Foundation as the first installment of a five-year, $100,000 commitment to support Virginia’s Home Energy Assistance Fund. Virginia Department of Social Services Commissioner Maurice A. Jones accepted the contribution on behalf of the program.

"This contribution is recognition that NiSource and its subsidiary, Columbia Gas of Virginia, understand the importance of the Home Energy Assistance Fund and its impact on the lives of many Virginians," Neale said. "The recent winter weather conditions and volatile energy marketplace have created hardships for many individuals. We believe this contribution will be part of the weatherization efforts throughout the Commonwealth and make a difference in the living conditions of those in greatest need."

In accepting the contribution, Jones said, "We are really excited to have NiSource and Columbia Gas of Virginia provide the initial funding in this effort. We think it is a great public-private partnership, and a model of how we can truly address the needs of the citizens of Virginia. Neither the public sector nor the private sector can do it alone. We look forward to working with NiSource and hope other corporations will join us in similar endeavors."

Background on the program

The Home Energy Assistance Fund, established two years ago by the General Assembly, focuses on the unmet needs of households requiring energy assistance; creates additional funding mechanisms for low-income assistance; and provides new leveraging opportunities to increase funding for Virginia’s Low-Income Home Energy Assistance Program (LIHEAP) grant.

Contributions are deposited into a fund and shall be used to:

1. Supplement assistance provided through the Virginia Energy Assistance Program (fuel, crisis, cooling and weatherization) by assisting eligible low-income applicants with their residential energy needs;
2. Provide matching funds, when required by federal regulations, for the LIHEAP Virginia Energy Assistance Program or the U.S. Department of Energy Weatherization Assistance Program.

The energy assistance program is an important program with a wide-reaching impact across the state. This past winter, nearly 92,000 households across the state receive fuel assistance, another 19,000 received crisis fuel assistance. Last summer, nearly 16,000 households received cooling assistance. Another 1,500 households benefited from weatherization projects.

About NiSource Charitable Foundation

The NiSource Charitable Foundation provides grants to non-profit organizations in communities across NiSource’s service territory.

About NiSource Inc.

NiSource Inc. is a Fortune 500 holding company with headquarters in Merrillville, Ind., whose core operating companies engage in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to approximately 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 http://www.nisource.com.

About Columbia Gas of Virginia

Marcella Williamson
Division of Public Affairs
(804) 692-1031
mkw900@email1.dss.state.va.us

Bob Innes
Columbia Gas of Virginia
(804) 323-5456

Mark Friedlander
NiSource
(804) 647-6217