News Release

For Release:
November 12, 2001

Contact:
Columbia Gas of Virginia
Bob Innes
(804) 323-5456
rinnes@nisource.com

Columbia Gas Reminds Customers to Explore Payment Options

CHESTERFIELD COUNTY, Va., November 12, 2001 - Columbia Gas of Virginia (Columbia) has filed with the Virginia State Corporation Commission for a 26 percent decrease in residential gas prices effective Nov. 28, 2001. If approved, this change means the average monthly bill for the typical residential customer using 70 Ccf (7 Mcf) of natural gas per month would be reduced by $21.54.

The decrease in natural gas prices means the average monthly bill for the typical residential customer will drop from $82.42 to $60.88 beginning with meter readings as of Nov. 28. The latest decrease means the average customer bill has declined by nearly 46 percent since the record high prices in January.

"This significant change is great news for our customers as we enter the winter season," said Mark C. Darrell, executive vice president and chief operating officer. "The natural gas industry has worked hard to increase the supply for this winter by increasing production and storage. This effort along with reduced demand as a result of milder weather and softening economic conditions have contributed to driving down the commodity price of natural gas."

The new price will be in effect for the months of December, January and February, pending monthly review by Columbia. Columbia's costs are adjusted on a quarterly basis to reflect the price the company pays for gas, which by law is passed on to customers without markup.

Columbia makes filings with the Virginia State Corporation Commission on a quarterly basis to reflect adjustments in gas prices because of fluctuations in commodity market prices, which are affected by supply and demand, weather conditions, market conditions and other factors. These quarterly purchased gas adjustments are filed in February, May, August and November.

In addition to the gas supply charge, the other components of a Columbia monthly gas bill include charges for the service and delivery of natural gas and state and local
taxes.

"We do recognize that last winter's uncharacteristically high prices may have some lingering impact on our customers," Darrell said. "We encourage our customers to explore the numerous payment options available to them."

Payment plan options available to customers include:

Credit Card Payment
This plan provides the option to use a credit card or electronic check to make a bill payment anytime. Visit http://www.columbiagasva.com and click on the link to take you to the vendor that provides this service. A minimum service charge of $5.95 will apply to payments made by credit card. Electronic check transactions will be assessed a $1.95 fee.

Pay By Using Your Telephone
Customers without access to a computer can make payments through the telephone simply by calling 1-800-249-9033. This service allows customers to pay by credit card or electronic check. A minimum service charge of $5.95 will apply to payments made by credit card. Electronic check transactions will be assessed a $1.95 fee.

Automatic Debit Payment
This plan allows you to authorize your financial institution to pay your gas bills automatically without writing a check. Call our Customer Contact Center at 1-800-543-8911, and then select option 3 to receive an application.

Budget Payment Plan
This plan spreads the annual utility costs throughout the entire year by paying the same amount every month; for more information contact Columbia Gas by telephone at 1-800-543-8911.

Individual payment plans
Other payment options may be discussed by contacting Columbia Gas by telephone at 1-800-543-8911.

To learn more about these and other services, visit the Columbia Gas of Virginia Web site at http://www.columbiagasva.com, or look for information in your gas bill.

Columbia Gas of Virginia, with headquarters in Chesterfield County, is one of the 10 energy distribution companies of NiSource Inc. (NYSE: NI). Columbia Gas of Virginia serves more than 196,000 customers in 89 communities in portions of Northern Virginia, Hampton Roads, suburban Richmond, Central Virginia, and the Shenandoah Valley, the Lynchburg region and parts of Western Virginia. NiSource distribution companies serve 3.6 million gas and electric customers primarily in nine states.