Filed by:  NiSource Inc.
                    Pursuant to Rule 425 under the Securities Act of 1933

                                  Subject Company:  Columbia Energy Group
                                Registration Statement File No: 333-33896

   On April 12, 2000, NiSource Inc. and Columbia Energy Group announced
   that they have filed a joint application with the Federal Energy
   Regulatory Commission seeking necessary approvals of their planned
   merger under the Federal Power Act. The following is a transcript of
   the press release issued on April 12, 2000:


                                PRESS RELEASE
                               April 12, 2000


   [NiSource logo]                           [Columbia Energy Group logo]


   NEWS RELEASE

                  Contacts:

                            Media
                            -----
                            NiSource - Sally A. Anderson (219) 647-6203
                            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 SEEK FERC APPROVAL OF MERGER
                 JOINT PETITION REQUESTS DECISION BY JULY 31

        MERRILLVILLE, Ind., and HERNDON, Va. (April 12, 2000)--NiSource
   Inc.  (NYSE: NI) and Columbia Energy Group (NYSE: CG) today announced
   they have filed a joint application with the Federal Energy Regulatory
   Commission (FERC) seeking necessary approvals of their planned merger
   under the Federal Power Act (FPA).

        The NiSource/Columbia merger satisfies the requirements of the
   FPA and the standards defined in the FERC's Merger Policy Statement in
   that it will not adversely affect competition, impair the
   effectiveness of regulation, or cause increases in the rates paid by
   wholesale electric or transmission customers, according to the filing.
   The joint application requests a decision by July 31, a time period
   consistent with other recent FERC merger approvals under the FPA.

        The NiSource/Columbia transaction, announced February 28, is
   expected to close by the end of the year.  The combined company will
   serve more than 4.1 million customers primarily located in nine
   states.  Its operations will span the high-growth energy corridor

                                   -more-



                   NiSource/Columbia Seek FERC Approval--2


   extending from the Gulf of Mexico to New England, creating the largest
   natural gas distributor east of the Rockies, with wholesale and retail
   electric operations.

        "Today's filing is our next step toward creating a super-regional
   enterprise with access to strategic and operational opportunities that
   would not be available to us as separate companies," said Gary L.
   Neale, NiSource chairman, president and chief executive officer.
   "Together, we will have three elements that are key to success in the
   increasingly deregulated and competitive energy marketplace: increased
   size, scope and scale; access to strategic geographic markets, and a
   broad range of complementary assets."

        Oliver G. Richard III, chairman, president and chief executive
   officer of Columbia Energy Group, said, "We are enthusiastic about the
   value the merger will bring to our shareholders, customers and the
   communities we serve.  The combination provides a powerful platform
   for growth."

        The principal subsidiary of NiSource that is subject to FERC
   jurisdiction under the FPA is Northern Indiana Public Service Company
   (NIPSCO).

        NIPSCO generates and distributes electricity to about 426,000
   customers in 30 counties in northern Indiana, owns and operates four
   coal-fired generating stations, two hydroelectric generating plants
   and four gas-fired combustion turbine generating units, providing a
   total system net capability of 3,392 megawatts.  NIPSCO's electric
   retail rates and services in Indiana will continue to be regulated by
   the Indiana Utility Regulatory Commission following the merger,
   according to the filing.

        The only Columbia subsidiary subject to FPA jurisdiction is
   Columbia Energy Power Marketing (CEPM) Corporation.

        The NiSource/Columbia application gives an independent analysis
   of the potential competitive impacts of their proposed merger by an
   economic expert.  The analysis concludes that combining the companies
   will not adversely impact competition in any relevant product and
   geographic markets.

        Current FERC and state regulatory jurisdiction over the
   companies' subsidiaries also will remain unchanged following the
   merger, according to the filing.

        NiSource 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
   http://www.nisource.com.

                                   -more-



                   NiSource/Columbia Seek FERC Approval--3


        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 http://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 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 have filed a
             registration statement, which contains 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 because they contain important
             information.  Investors and security holders are able to
             receive the final joint proxy statement/prospectus and other
             documents free of charge at the SEC's web site,
             http://www.sec.gov, from NiSource at its web site,
             http://www.nisource.com, or from Columbia at its web site,
             http://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.