News Release

News Release:
August 27, 2008

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

Costs Decline For Columbia Gas Of Virginia Customers

CHESTER, VA. - August 27, 2008 - Columbia Gas of Virginia customers will see a 12% reduction in their monthly natural gas bills effective August 28. The decline means a typical residential customer based on a 26 Ccf seasonal usage will have their monthly bill decrease from a current amount of $61.37 to $53.98.

This cost adjustment period covers the months of September, October and November. A Ccf is the measurement used for natural gas usage and is the equivalent of 100 cubic feet.

"We are adjusting our rates to reflect a general reduction in prices that has occurred in the energy markets,” said Carl Levander, Columbia’s president. “While Columbia appreciates the relief this will bring to our customers, we would note that even with this reduction, our prices are higher than this time last year, and uncertainty remains in the energy markets over the direction of prices as we enter the winter heating season. We urge customers to act now to take steps to manage their energy costs by taking advantage of the budget payment plan, which spreads their billing evenly over an annual period. We would also, encourage our customers to take the time today to perform maintenance on their heating equipment and prepare their homes for the winter.”

Columbia has extended the enrollment period of the Budget Payment Plan through the end of September to give its customers additional opportunities to take advantage of this simple way to avoid high winter bills. Customers may enroll in the budget payment plan by paying the promoted budget amount noted on their current bill; logging on to www.columbiagasva.com, click on “Manage Your Account” and log in to their account or dial Columbia’s automated self-service phone system at 1-800-543-8911, select option 1 from the main menu, then option 3 for Budget information.

August Purchased Gas Cost

By law, utilities like Columbia are required to pass through the costs they pay for natural gas to the consumer on a dollar for dollar basis without markup. The other components of a Columbia monthly natural gas bill, which are not changed by this filing (and which have not been increased since 1998), include charges for the service and delivery of natural gas and state and local taxes.

Levander added that Columbia continues to support enactment of energy policies to help reduce natural gas prices in the longer term. These include actively urging Virginia’s Congressional delegation to take action to open access to new sources of natural gas, including drilling off the Virginia coastline. Also, Columbia remains an advocate for full federal funding of the Low Income Energy Assistance Program which provides financial support to Virginians who have difficulty in paying for their near-term energy needs.

Columbia customers can take the following steps to manage their energy costs:

• Perform maintenance on your furnace
  
• Install caulking or weather-stripping around windows or doors
  
• Keep all registers and air return ducts clear of furniture, carpet, drapes and vacuum them occasionally
  
• Add insulation to the attic or crawl spaces
  
• Install a set back thermostat
  

For more information on steps to manage energy costs, customers can call Columba’s DirectLink at 1-800-543-8911 or log on to www.columbiagasva.com.

Additional Energy Savings tips can be found at the following web sites:

• U.S. Department of Energy - www.hes.lbl.gov or www.eere.energy.gov
  
• Energy Star - www.energystar.gov
  
• American Gas Association - www.aga.org
  

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 nearly 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.