News Release

For Release:
January 18, 2002

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

Columbia Gas of Virginia Files for Statewide CHOICE
Service would begin before next heating season

CHESTERFIELD COUNTY, Va., January 18, 2002 - Columbia Gas of Virginia (Columbia) has filed with the Virginia State Corporation Commission for permission to expand its Customer CHOICE pilot program service to all its customers in time for the 2002-2003 heating season. The company has requested an effective date of July 1, 2002.

The Customer CHOICE service will allow, with minor exceptions, all Columbia customers the freedom to choose their natural gas supply from either a licensed Competitive Service Provider or Columbia. The company has gained experience in operating and maintaining a retail choice pilot program since 1997 and is positioned to permanently offer the Customer CHOICE service statewide to residential and small commercial customers.

Under the Customer CHOICE service, Columbia will continue to install, operate and maintain the natural gas facilities serving its customers. Columbia will also continue to respond to all customer emergency calls. This does not change under the Customer CHOICE service. Furthermore, the rates Columbia charges for services it provides will continue to receive approval by the Virginia State Corporation Commission.

Columbia was the first utility in Virginia, natural gas or electric, to offer its customers the freedom to choose when it launched its Customer CHOICE pilot program Oct. 1, 1997, in Northern Virginia. It currently has approximately 11,000 customers enrolled in the Customer CHOICE pilot program in Northern Virginia.

To learn more about Columbia Gas of Virginia or our Customer CHOICE service, visit our 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 200,000 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.