News Release

News Release:
February 29, 2008

Contact:
Columbia Gas of Virginia
Bob Innes
(804) 768-6410 - office
(804) 512-1425 - cellular
rinnes@nisource.com

Lower Costs to Columbia Gas of Virginia Customers

CHESTER, VA. - Feb. 29, 2008 - Columbia Gas of Virginia (Columbia) is reducing its gas costs effective with meter read beginning Feb. 29, 2008. This change reflects a decrease in the amount Columbia pays to purchase natural gas for its customers.

This reduction means a typical customer can expect to pay about 6.9 percent less than their current monthly bill. The new average monthly amount will be $150.66 compared to a previous monthly bill of $161.77.

"Key factors influencing this decrease include a ten percent warmer than normal winter in our service territory and adequate natural gas storage levels," said Carl Levander, president of Columbia. "Customers are encouraged to contact us immediately if they need assistance so that we can direct them on how they can receive help through programs like Columbia's HeatShare energy assistance program and other payment options."

This adjustment is for the months of March, April and May. During this period a residential customer use ranges from an average of 100 Ccf in March to 35 Ccf in May. (1 Ccf equals 100 cubic feet of natural gas).The actual amount used will vary depending on weather, individual comfort and each customer's usage needs (including the size of the home or business receiving natural gas service, and the number of natural gas appliances).

The wise use of energy can help mitigate winter heating bills. Take time to seal out drafts around windows and doors with caulk and weather-stripping; install door sweeps on exterior doors, check the insulation levels in attics and crawl spaces and change furnace filters regularly this winter. For more conservation and energy-saving tips go to www.columbiagasva.com or the Department of Energy at www.doe.gov.

Columbia offers several billing and payment services to help customers reduce the impact on household budgets. Customers can log on to www.columbiagasva.com or contact Columbia's DirectLink at 1-800-543-8911 to join the budget payment plan, to make payment arrangements or to learn about energy assistance programs.

Columbia's purchased gas costs are typically adjusted on a quarterly basis to reflect the price the company pays for natural gas, which by law is passed on dollar-for-dollar to customers without markup or profit.

Aside from 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. The service and delivery amount has not changed since 1998.

About Columbia Gas of Virginia
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 240,000 customers 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 3.8 million gas and electric customers primarily in nine states. More information about Columbia Gas of Virginia is available on the World Wide Web at www.columbiagasva.com.