EXHIBIT 99.1
                                                             ------------


                      PRESS RELEASE DATED MAY 21, 2002


   FOR IMMEDIATE RELEASE                        [NiSource Logo]
   May 21, 2002                                 801 E. 86th Avenue
                                                Merrillville, IN 46410

   FOR ADDITIONAL INFORMATION

   Media                                   Investors

   Bill Keegan                             Dennis Senchak
   Director, Corporate Communications      Vice President,
   (219) 647-6203                          Investor Relations
                                           (219) 647-6085

                                           Bill O'Malley
                                           Director, Investor Relations
                                           (219) 647-5688

                                           Rae Kozlowski
                                           Manager, Investor Relations
                                           (219) 647-6083

         NISOURCE NAMES DELOITTE & TOUCHE AS INDEPENDENT ACCOUNTANTS

        MERRILLVILLE, IND. - NiSource Inc. (NYSE: NI) today announced
   that its board of directors has selected Deloitte & Touche as its
   independent public accountant for fiscal year 2002. Deloitte & Touche
   replaces Arthur Andersen LLP.

        In making the announcement, NiSource chairman, president and
   chief executive officer Gary L. Neale said NiSource's board of
   directors acted upon the recommendation of its audit committee, which
   had conducted a comprehensive review of the selection process of
   independent accountants and the qualifications of a number of leading
   accounting firms.

        "The selection of Deloitte & Touche was based on a number of key
   considerations, including industry-related experience, depth of
   management and their commitment to client service," said Neale. "We're
   confident that Deloitte & Touche's dedicated account team will
   effectively serve NiSource's auditing and financial reporting
   requirements for 2002." The transition to Deloitte & Touche will begin
   immediately.

        Neale noted that the change of independent public accountants was
   not due to any disagreement between the company and Andersen on
   matters of accounting principles or practices, auditing scope or
   procedures or financial statement disclosure.


        "For nearly 70 years Arthur Andersen served our company admirably
   and provided a high level of service in a number of key business
   areas," said Neale. "However, the events and uncertainties surrounding
   Andersen and its future have necessitated this action, which we
   believe is in the best interests of the company, our shareholders and
   our employees."

        NiSource Inc. (NYSE: NI) is a holding company with headquarters
   in Merrillville, Ind., whose operating companies engage in the
   exploration and production, transmission, storage and distribution of
   natural gas, as well as the generation, transmission and distribution
   of electricity.  Its local distribution companies provide service to
   3.7 million customers located within the high-demand energy corridor
   that stretches from the Gulf of Mexico through the Midwest to New
   England.  Information about NiSource is available via the Internet at
   www.nisource.com.

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   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 include, among
   other things, increased competition in deregulated energy markets,
   weather, fluctuations in supply and demand for energy commodities,
   successful consummation of proposed acquisitions and dispositions,
   growth opportunities for NiSource's regulated and non-regulated
   businesses, dealings with third parties over whom NiSource has no
   control, actual operating experience of acquired assets, NiSource's
   ability to integrate acquired operations into its operations, the
   regulatory process, regulatory and legislative changes, changes in
   general economic, capital and commodity market conditions, and
   counter-party credit risk, many of which are beyond the control of
   NiSource.  These and other risk factors are detailed from time to time
   in the company's SEC reports.  Readers are cautioned not to place
   undue reliance on these forward-looking statements, which speak only
   as of the date of this release.  The company does not undertake any
   obligation to publicly release any revision to these forward-looking
   statements to reflect events or circumstances after the date of this
   release.