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 13, 2000, NiSource distributed the following news item to its
   employees.  The news item was included in NiSource's daily newsletter,
   "The FLASH."


                              TEXT OF NEWS ITEM
                               APRIL 13, 2000

  "NISOURCE, COLUMBIA ENERGY GROUP SEEK FERC APPROVAL OF MERGER...

   NiSource Inc. and Columbia Energy Group yesterday 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."

                                     ###

             This news item 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.