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NIPSCO INDUSTRIES TO PURCHASE STOCK OF NORTHERN INDIANA FUEL AND LIGHT COMPANY

 HAMMOND, Ind., Nov. 20 ~PRNewswire~ -- NIPSCO Industries, Inc., (NYSE: NI) and Northern Indiana Fuel and Light Company have signed a letter of intent (Nov. 19, 1992), said Edmund A. Schroer, chairman and chief executive officer of NIPSCO Industries, and H. Phillip Conrad, Jr., president and treasurer of Northern Indiana Fuel and Light Company, for NIPSCO Industries to purchase the capital stock of Northern Indiana Fuel and Light Company. The transaction is valued at $29.5 million, primarily payable in NIPSCO Industries stock.
 Schroer said, "Northern Indiana Fuel and Light will be a valuable addition to our core regulated gas distribution business. The addition will be consistent with our commitment to quality in our utility business. There has been and will be substantial growth. Their management has long been efficient and their property well maintained. We intend to continue and build on these strengths in the challenging times ahead."
 Conrad said, "The resources available from a large distribution entity such as NIPSCO will become increasingly important as the full impact of restructuring of the gas pipeline industry is felt. NIPSCO's ability to provide additional gas supply options will enable us to keep our costs competitive and our customers satisfied."
 Completion of the sale transaction is subject to execution of definitive agreements and approval by NIPSCO Industries' board of directors, Northern Indiana Fuel and Light's directors and shareholders and certain federal regulatory approvals.
 Northern Indiana Fuel and Light Company is a closely held natural gas utility headquartered in Auburn, Ind., that serves approximately 27,500 customers in the northeast corner of the state. Cities served include Auburn, Angola, Kendallville and Garrett.
 Gary L. Neale, executive vice president of NIPSCO Industries and president and chief operating officer of Northern Indiana Public Service Company, the primary subsidiary of NIPSCO Industries, said, "Northern Indiana Fuel and Light is another outstanding small gas company which, like our Kokomo Gas acquisition, will help NIPSCO achieve its strategic objective to broaden its customer base and better utilize its existing natural gas assets. Likewise, the acquisition will provide Northern Indiana Fuel and Light with new gas supply and other resources to better serve their customers, despite the increasing burden posed by changes in the natural gas pipeline business."
 Neale said Northern Indiana Fuel and Light would become a wholly owned subsidiary of NIPSCO Industries and that the utility's operations would largely remain the same. Current rates would not be affected.
 Neale said, "We expect to continue the high levels of service to the community and to customers that Fuel and Light has provided to its northeastern Indiana territory in the past."
 NIPSCO Industries is an energy-based holding company whose primary subsidiary is Northern Indiana Public Service Company, a utility that serves about 604,000 natural gas customers and 385,000 electric customers.
 NIPSCO - NORTHERN INDIANA FUEL & LIGHT (NIFL)
 FACT SHEET
 1991
 Gas Utility NIPSCO NIFL
 Deliveries (million Dth) 243.5 7.1
 Gas Revenues (millions) $601.9 $20.8
 Customers 603,899 26,699
 89.8
 Commercial (pct.) 7.5 7.7
 Industrial (pct.) 0.7 0.8
 Gas Supply Mix:
 Natural Gas Pipeline (pct.) 17.2 --
 Midwestern Gas
 Transmission (pct.) 10.6 --
 Trunkline (pct.) 0.7 --
 ANR Pipeline (pct.) 1.0 13.3
 Panhandle Eastern (pct.) 4.6 14.5
 Spot Market (pct.) 36.2 72.2
 Firm Producer Contracts (pct.) 29.7 --
 Gas Revenues~Dth (excl. Transport)$5.14 $5.00
 Gas Cost~Dth $3.16 $3.06
 Net Gas Utility Plant (millions) $601.7 $22.7
 Total Company
 Book Value (millions) $1,011.7 $11.8
 Net Income (millions) $133.4 $1.0
 Employees 4,600 80
 -0- 11~20~92
 ~CONTACT: Thomas J. Kallay of NIPSCO Industries, Inc., 219-647-6203~
 (NI)


CO: NIPSCO Industries, Inc. ST: Indiana IN: UTI SU: TNM

KK -- CL008 -- 3451 11~20~92 14:47 EST
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Publication:PR Newswire
Date:Nov 20, 1992
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