NiSource Files 10-K for Year Ended Dec. 31, 2008

--Recent business developments and accomplishments highlighted Company reiterates commitment to dividend, investment grade credit ratings MERRILLVILLE, Ind., March 2, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- In conjunction with the filing of its Form 10-K for the year ended Dec. 31, 2008, NiSource Inc. (NYSE: NI) today highlighted several key recent business accomplishments and reiterated its commitment to maintaining its dividend and investment grade credit ratings. NiSource filed its Form 10-K for the year ended Dec. 31, 2008, with the U.S. Securities and Exchange Commission on Friday, Feb. 27. The report includes comprehensive business information and data for the past year, as well as updates on recent 2009 business developments, such as: Near-term liquidity initiatives -- On Feb. 13, NiSource closed a $265 million two-year term loan which it expects to increase to $350 million in April under an accordion feature in the financing agreement. -- NiSource expects the bonus tax depreciation provisions contained in the Federal stimulus legislation enacted on Feb. 17 to effectively generate approximately $100 million in incremental cash for the company in 2009. -- NiSource business units have advanced efforts to generate additional cash and manage costs - with activities tailored to the unique circumstances of each company. For example, as discussed in the Form 10-K, in response to current economic and market conditions, the company's Natural Gas Transmission and Storage (NGT&S) unit has accelerated a planned comprehensive restructuring of its operations to better focus on core business processes, increase efficiency and maintain safe, reliable customer service. Business plan accomplishments -- On Feb. 18, Northern Indiana Public Service Company (NIPSCO) received a favorable regulatory order related to its actions to increase its electric generating capacity and advance its electric rate case. Acting on a settlement reached among NIPSCO and its regulatory stakeholders, the Indiana Utility Regulatory Commission (IURC) ruled that NIPSCO's recently purchased Sugar Creek electric generating plant was "in service" for ratemaking purposes as of Dec. 1, 2008. As such, the IURC order approved the proposed deferral of depreciation expenses and carrying costs associated with NIPSCO's $330 million Sugar Creek investment, effective Dec. 1, 2008, and continuing until such time as the deferred costs are recovered through rates. In that regard, NIPSCO's pending rate case is expected to be resolved, and new rates effective, in late 2009 or early 2010. -- On Feb. 20, Columbia Gas of Maryland (CMD) filed a unanimous joint motion for approval of a stipulation and settlement agreement in its rate case pending before the Maryland Public Service Commission. If approved by the Commission, CMD would increase revenues by $1.2 million annually. "Since our Feb. 4 earnings announcement, our team has delivered a series of accomplishments that provide further evidence of our ability to meet our commitments and effectively manage through this challenging environment," NiSource President and CEO Robert C. Skaggs, Jr. said. "Our leadership team and Board of Directors remain fully committed to advancing our core business strategy, meeting NiSource's financing needs and earnings projections, and maintaining our investment grade credit ratings and our dividend. As we continue to execute on that plan, we will keep all of our key stakeholders informed." About NiSource NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, storage and distribution, as well as electric generation, transmission and distribution. NiSource operating companies deliver energy to 3.8 million customers located within the high-demand energy corridor stretching from the Gulf Coast through the Midwest to New England. Information about NiSource and its subsidiaries is available via the Internet at www.nisource.com. NI-F Forward-Looking Statement This news release contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. These forward-looking statements include, but are not limited to, statements concerning NiSource's plans, objectives, expected performance, expenditures and recovery of expenditures through rates, stated on either a consolidated or segment basis, and any and all underlying assumptions and other statements that are other than statements of historical fact. From time to time, NiSource may publish or otherwise make available forward-looking statements of this nature. All such subsequent forward-looking statements, whether written or oral and whether made by or on behalf of NiSource, are also expressly qualified by these cautionary statements. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially. Realization of NiSource's objectives and expected performance is subject to a wide range of risks and can be adversely affected by, among other things, weather, fluctuations in supply and demand for energy commodities, growth opportunities for NiSource's businesses, increased competition in deregulated energy markets, the success of regulatory and commercial initiatives, dealings with third parties over whom NiSource has no control, the success of NiSource's restructured outsourcing agreement, actual operating experience of NiSource's assets, the regulatory process, regulatory and legislative changes, changes in general economic, capital and commodity market conditions, and counter-party credit risk, many of which risks are beyond the control of NiSource. In addition, the relative contributions to profitability by each segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time. SOURCE NiSource Inc. http://www.nisource.com Copyright (C) 2009 PR Newswire. All rights reserved

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