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FOR IMMEDIATE RELEASE
January 6, 2006

Contact:
Leslie Orbin
724.416.6333

Columbia Gas of Pennsylvania/Columbia Gas of Maryland accepting grant applications for the NiSource Environmental Challenge Fund

Canonsburg, Pa. - Community and environmental organizations located in areas served by Columbia Gas of Pennsylvania and Columbia Gas of Maryland are encouraged to apply for grants of between $500 and $5,000 (with special grants occasionally awarded up to $10,000) from the NiSource Environmental Challenge Fund (ECF).

NiSource Inc. (NYSE:NI), the parent company of Columbia Gas of Pennsylvania and Columbia Gas of Maryland, established the Environmental Challenge Fund in 1995 as a not-for-profit corporation to support local natural resource and wildlife improvement projects and related educational and recreational efforts.

Grant guidelines and a downloadable application form are available on the NiSource web site at www.nisource.com/enviro/ecf.asp. Applications will be accepted through Feb. 28, 2006.

A local advisory committee comprised of Columbia Gas of Pennsylvania and Columbia Gas of Maryland employees and regional environmental and community leaders will review the applications and award grants to those projects that best serve the environmental needs of the communities. Grant awards will be announced in conjunction with Earth Day -- April 22, 2006.

"The Environmental Challenge Fund is one of many ways NiSource and its operating companies support local organizations that make a difference in the communities we serve," said Terry Murphy, President of Columbia Gas of Pennsylvania and Columbia Gas of Maryland. "Our customers, our employees and our company benefit by having a cleaner environment and healthier communities."

Since 1995, the Environmental Challenge Fund has awarded nearly $650,000 to 195 projects. The Fund is supported by the NiSource Charitable Foundation.

About Columbia Gas of Pennsylvania
Columbia Gas of Pennsylvania, with local headquarters in Canonsburg, Pa., serves more than 400,000 customers in 27 counties. It is one of the 10 energy distribution companies of NiSource Inc. (NYSE: NI). NiSource distribution companies serve 3.7 million natural gas and electric customers primarily in nine states. More information about Columbia Gas of Pennsylvania is available on the World Wide Web at www.columbiagas.com.

About Columbia Gas of Maryland
Columbia Gas of Maryland serves more than 32,000 customers in three counties. It is one of the 10 energy distribution companies of NiSource Inc. (NYSE: NI). NiSource distribution companies serve 3.7 million natural gas and electric customers primarily in nine states. More information about Columbia Gas of Maryland is available on the World Wide Web at www.columbiagas.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 3.7 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 www.nisource.com.

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