April 30, 2001

COMMISSION APPROVES SETTLEMENT BETWEEN OUCC AND INDIANA GAS

Today the IURC approved a settlement agreement between the Office of the Utility Consumer Counselor and Indiana Gas.

The order in Cause No. 37394-GCA69 modifies the $3.8 million disallowance levied by the Commission against Indiana Gas on January 4, 2001, where the IURC found that the company did not use prudent purchasing practices when it bought natural gas for the period of November 2000 through March 2001.

The settlement agreement will have more than a $4.6 million impact on the company. Under the terms of the agreement, Indiana Gas will subtract $3.3 million of the cost it spent for gas in next month’s billing cycle. The company will also make significant contributions to assistance plans.

Indiana Gas will contribute an additional $1 million to fund income heating assistance programs for the winter of 2000-2001 that provides assistance to qualified natural gas customers located in its territory. If all of the money is not used, it will be available for the winter of 2001-2002.

In addition, Indiana Gas also agrees it will designate an additional $250,000 to its matching funds for the share the warmth program. Again, if all of the money isn’t utilized, it will be held over for next winter.

Indiana gas has already contributed $535,000 to low income heating assistance programs for this winter and has pledged an additional $100,000 to match contributions to those programs for this winter. The company has also agreed to modify its budget bill programs to encourage and facilitate expanded customer enrollment.

Indiana Gas serves approximately 513,000 customers in Indiana.

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