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                              Columbia Energy Group
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EX-99.1

[NiSource Logo]                                     [Columbia Energy Group Logo]

GRAPHIC OMITTED                                            GRAPHIC OMITTED


NEWS RELEASE                                                           CONTACTS:
                                      Media
                                      -----
                                      NiSource - Maria P. Hibbs (219) 647-6201
                                      Columbia - R.A. Rankin, Jr. (703) 561-6044
                                      Investor Relations
                                      ------------------
                                      NiSource - Dennis Senchak (219) 647-6085
                                      Columbia - Thomas L. Hughes (703) 561-6001


         NISOURCE, COLUMBIA ENERGY GROUP ASK VIRGINIA TO APPROVE MERGER

         MERRILLVILLE, Ind. and HERNDON, Va. (April 4, 2000)--NiSource Inc.
(NYSE: NI) and Columbia Energy Group (NYSE: CG) today announced they have filed
a joint petition with the State Corporation Commission of the Commonwealth of
Virginia requesting necessary approvals related to their planned merger.

         Columbia Gas of Virginia, Inc., a Columbia subsidiary based in
Chesterfield County, provides retail natural gas service to more than 182,000
customers in 52 counties. Areas served by the local distribution company include
portions of northern Virginia, Fredericksburg, the Shenandoah Valley, the
Lynchburg region, suburban Richmond, and parts of Hampton Roads, Southside
Virginia and western Virginia.

         In today's joint petition, the Commission is asked to approve the
transfer of Columbia Gas of Virginia ownership under the proposed
NiSource/Columbia merger agreement announced February 28. The transaction is
expected to close by the end of the year. The combined company will become the
largest natural gas distributor east of the Rocky Mountains, serving more than
4.1 million customers primarily located in nine states. Its operations will span
the high-growth energy corridor stretching from the Gulf of Mexico to New
England.

         "The purpose of the merger is to create an enterprise that will better
serve our local customers than either company could alone," said Gary L. Neale,
NiSource chairman, president and chief executive officer. "It is driven by our
shared vision of the future of the energy industry in which successful providers
add value for their customers by offering the combined benefits of innovation
and economies of scale.

         "The combination will establish a powerful platform for growth, with
access to 30 percent of the country's population and 40 percent of the nation's
energy consumption in growing markets," Neale explained. "Columbia Gas of
Virginia will benefit by sharing the opportunities created by the merger, and
will continue to be a regulated utility with a focus on serving customers in
Virginia and developing the economy of Virginia."

                                     -more-





             NiSource/Columbia Seek Virginia Regulatory Approval--2

         Oliver G. Richard III, chairman, president and chief executive officer
of Columbia Energy Group, said, "We are enthusiastic about the opportunities and
value the merger will bring to our shareholders, customers and the communities
we serve. Columbia's historical leadership in opening markets to supplier choice
under deregulation will be continued. Columbia Gas customers will be able get
the same friendly, reliable service they have known for years, plus new energy
options such as distributed generation that are being pioneered by NiSource."

         The proposed merger will have no impact on Columbia Gas of Virginia's
rates, terms and conditions now approved by the Commission, according to the
filing.

         The filing also pointed out that following the NiSource/Columbia
merger, Columbia Gas of Virginia will:

          o    Maintain its headquarters in Chesterfield County.
          o    Retain key management personnel along with local decision-making
               authority.
          o    Retain local operations and the employee workforce in accordance
               with Columbia Gas of Virginia's plans before the merger
               announcement.
          o    Honor all collective bargaining agreements.
          o    Continue to support economic growth within its service territory
               and throughout the Commonwealth, working closely with state and
               local economic development agencies to attract or retain
               businesses and jobs.
          o    Continue its long history of community and civic involvement.

         Today's action follows a similar filing March 30 with the Pennsylvania
Public Utility Commission. NiSource and Columbia also will seek merger approval
from state regulators in Kentucky and from various federal agencies.

         NiSource Inc. is a holding company with headquarters in Merrillville,
Ind., whose primary business is the distribution of electricity, natural gas and
water in the Midwest and Northeastern United States. The company also markets
utility services and customer-focused resource solutions along a corridor from
Texas to Maine. More information about the company is available on the Internet
at www.nisource.com.

         Columbia Energy Group, based in Herndon, Va., is one of the nation's
leading energy services companies, with assets of approximately $7 billion. Its
operating companies engage in virtually all phases of the natural gas business,
including exploration and production, transmission, storage and distribution, as
well as retail energy marketing, propane and petroleum product sales, and
electric power generation. More information about Columbia is available on the
Internet at www.columbiaenergygroup.com.

                                       ###

         This release contains forward-looking statements within the meaning of
the federal securities laws. These forward-looking statements are subject to
various risks and uncertainties. The factors that could cause actual results to
differ materially from the projections, forecasts, estimates and expectations
discussed herein may include factors that are beyond the companies' ability to
control or estimate

                                    - more -




             NiSource/Columbia Seek Virginia Regulatory Approval--3

precisely, such as estimates of future market conditions, the behavior of other
market participants and the actions of the federal and state regulators. Other
factors include, but are not limited to, actions in the financial markets,
weather conditions, economic conditions in the two companies' service
territories, fluctuations in energy-related commodity prices, conversion
activity, other marketing efforts and other uncertainties. Other risk factors
are detailed from time to time in the two companies' SEC reports. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this document. The companies do not undertake any
obligation to publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date of the document.

         NiSource and the new holding company will be filing a registration
statement, which will contain a joint proxy statement/prospectus of NiSource and
Columbia, and other documents with the Securities and Exchange Commission.
Investors and security holders are urged to read the joint proxy
statement/prospectus and any other relevant documents filed with the SEC when
they become available because they will contain important information. Investors
and security holders will be able to receive the final joint proxy
statement/prospectus and other documents free of charge at the SEC's web site,
www.sec.gov, from NiSource at its web site, www.nisource.com, or from Columbia
at its web site, www.columbiaenergygroup.com. Information concerning the
identity of the participants in the solicitation of proxies by the NiSource Inc.
and Columbia Energy Group boards of directors and their direct or indirect
interest, by security holdings or otherwise, may be obtained from the Secretary
of NiSource Inc. or the Secretary of Columbia Energy Group at the respective
addresses listed above.