NORTHERN INDIANA FUEL AND LIGHT COMPANY BECOMES A SUBSIDIARY OF NIPSCO INDUSTRIES, INC.
MERRILLVILLE, Ind., March 31 /PRNewswire/ -- The purchase of Northern Indiana Fuel and Light Company (NIFL) was finalized today officially making it a subsidiary of NIPSCO Industries, Inc. (NYSE: NI). NIFL is a gas utility headquartered in Auburn, Ind., and serves approximately 27,500 customers throughout northeastern Indiana. NIPSCO Industries officials said that even though NIFL is now a wholly-owned subsidiary, it will continue to be operated as a separate entity and will not be merged with the holding company's primary subsidiary, Northern Indiana Public Service Company (NIPSCO), until 1996 at the earliest, or when NIPSCO files a gas rate case with the Indiana Utility Regulatory Commission. The total purchase price for NIFL was $30.2 million, primarily payable in NIPSCO Industries stock. Gary L. Neale, chairman, president and chief executive officer of NIPSCO Industries, Inc., said, "The structure of Northern Indiana Fuel and Light will remain basically unchanged since it is a well-managed, well-maintained company. Current rates will not be affected. As a subsidiary of NIPSCO Industries, Northern Indiana Fuel and Light will continue to be operated by local management." Neale stated this 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 sources to better serve their customers." Neale explained that since NIPSCO is one of the country's largest natural gas distribution companies, NIFL customers can continue to expect a reliable supply of natural gas through a number of competitive sources. H. Phillip Conrad, Jr., president and treasurer of Northern Indiana Fuel and Light Company, said, "As the natural gas industry continues to become more competitive, the resources available from a large distribution company, like NIPSCO, will become increasingly important. Our affiliation with NIPSCO will provide our customers increased staff support, substantial gas storage and multiple pipeline sources. Most importantly, this affiliation will contribute to the continued growth of northeastern Indiana." NIPSCO Industries, Inc. 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 approximately 400,000 electric customers. NIPSCO Industries also owns Kokomo Gas and Fuel Company, a regulated natural gas utility serving 30,000 customers in Kokomo, Indiana, and the surrounding rural territory. -0- 3/31/93 /CONTACT: Thomas J. Kallay of NIPSCO Industries, Inc., 219-647-6203/ (NI)
CO: NIPSCO Industries, Inc.; Northern Indiana Fuel & Light Company ST: Indiana IN: UTI SU: TNM
BM -- CL011 -- 9806 03/31/93 15:02 EST
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|Date:||Mar 31, 1993|
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