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 July 13, 2000, NiSource and Columbia announced that the
   Pennsylvania Public Utility Commission has approved the merger and
   that the waiting period under the Hart-Scott-Rodino Antitrust
   Improvements Act has expired.  The text of the joint press release
   follows:

                             Joint Press Release
                                July 13, 2000


   NEWS RELEASE
                                                                CONTACTS:
                            MEDIA
                            -----
   DRAFT FOR APPROVAL       NiSource   Sally A. Anderson (219) 647-6203
   7/12/00 2 p.m.           Columbia - R.A. Rankin, Jr. (703) 561-6044

                            INVESTOR RELATIONS
                            ------------------
                            NiSource - Dennis Senchak (219) 647-6085
                            Columbia - Thomas L. Hughes (703) 561-6001

      PENNSYLVANIA PUC APPROVES NISOURCE-COLUMBIA ENERGY GROUP MERGER,
                  HART-SCOTT-RODINO WAITING PERIOD EXPIRES

        MERRILLVILLE, Ind., and HERNDON, Va. (July 13, 2000)-NiSource
   Inc. and Columbia Energy Group today reported continued progress on
   the completion of important state and federal reviews of their
   proposed merger.

        The Pennsylvania Public Utilities Commission (PUC) today
   unanimously approved the merger, bringing the number of necessary
   state actions to eight of nine required.

        The transaction also has cleared the waiting period under the
   Hart-Scott-Rodino Antitrust Improvements Act at the U.S. Department of
   Justice and the Federal Trade Commission.  The Act requires federal
   antitrust agencies to review mergers of a certain size.

        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 million customers primarily located in nine states.
   Its operations will span the high-growth energy corridor extending
   from the Gulf of Mexico to Chicago to New England, creating the
   largest natural gas distributor east of the Rockies, with wholesale
   and retail electric operations.





        "We are gratified by this timely state and federal regulatory
   consideration given to our proposal to create a super-regional energy
   enterprise with access to strategic and operational opportunities that
   will benefit current and future energy markets," said Gary L. Neale,
   NiSource chairman, president and chief executive officer.

        Oliver G. Richard III, chairman, president and chief executive
   officer of Columbia Energy Group, said, "We are pleased with these
   actions, which will help NiSource and Columbia continue to keep the
   merger process on track.  Delivering outstanding service and strong
   value to our customers will continue to be major goals of Columbia's
   natural gas distribution companies."

        Approval by the Pennsylvania PUC followed a comprehensive
   settlement agreement filed June 22 with the commission, under which
   the groups who intervened in the original application recommended the
   merger's approval by the PUC. The intervenors included the
   Pennsylvania Offices of Consumer Advocate, Small Business Advocate,
   and Trial Staff; a group of large industrial customers; and a number
   of labor unions representing Columbia Energy Group employees.

        The Pennsylvania settlement agreement provides comprehensive
   customer benefits, including a freeze in base rates until Jan. 1,
   2004.  Columbia Gas of Pennsylvania will maintain its quality customer
   service and seek further improvements.  The company also will track
   related performance levels for three years, retain its commitment to
   expand its customer assistance program, maintain current charitable
   contributions, and support civic efforts for the next five years.

        Additionally, Columbia Gas will maintain an organization and
   staffing plan that will ensure safe, reliable service to the more than
   389,000 customers the company serves in 27 Pennsylvania counties and
   retain its headquarters in Pittsburgh.

        Approval is also required by other regulatory agencies, including
   the Virginia State Corporation Commission, the Federal Energy
   Regulatory Commission and the Securities and Exchange Commission.
   Shareholders of both companies approved the transaction in June.

        NiSource Inc. (NYSE: NI) 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 (NYSE: CG), based in Herndon, Va., is one
   of the nation's leading energy services companies.  Its operating
   companies engage in nearly all phases of the natural gas business,
   including exploration and production, transmission, storage and
   distribution, as well as 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 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.
             These and 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 release.
             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.

             In addition to other documents filed with the Securities and
             Exchange Commission by the two companies, NiSource and the
             new holding company have filed a registration statement,
             which contains a joint proxy statement/prospectus for
             NiSource and Columbia Energy.  The final joint proxy
             statement/prospectus, dated April 24, 2000, is available and
             has been distributed to the companies' shareholders.
             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 may receive the
             joint proxy statement/prospectus and other documents free of
             charge at the SEC's Web site, www.sec.gov, from NiSource
             Investor Relations at 801 East 86th Avenue, Merrillville,
             Indiana 46410 or at its Web site, www.nisource.com, or from
             Columbia Investor Relations at 13880 Dulles Corner Lane,
             Herndon, Virginia 20171 or at its Web site,
             www.columbiaenergygroup.com.



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