For Immediate Release

October 16, 2002

IURC APPROVES GAS COST ADJUSTMENT FOR INDIANA NATURAL GAS

Today, in Cause No. 37418-GCA 75, the Indiana Utility Regulatory Commission approved the decrease in the Gas Cost Adjustment for November, December 2002 and January 2003, requested by Indiana Natural Gas. While there is a small increase over the current bill, prices will be 20% lower than one year ago. The table below shows the impact on customers.

Table 1

Proposed vs. Currently Approved GCA Factor

For Residential Customers

Consumption Mcf	Bill at Proposed GCA Factor	Bill at Currently Approved GCA Factor	Dollar Increase	Percent Change

5	$ 42.34	$ 41.85	$0.49	1.17%
10	78.68	77.71	0.97	1.25%
15	115.02	113.56	1.46	1.29%
20	151.36	149.41	1.95	1.31%
25	187.70	185.26	2.44	1.32%

Table 2

Proposed vs. Prior Year Approved GCA Factor

For Residential Customers

Consumption Mcf	Bill at Proposed GCA Factor	Bill at Prior Year Approved GCA Factor	Dollar (Decrease)	Percent Change

5	$ 42.34	$ 53.22	($10.88)	(20.44%)
10	78.68	100.44	( 21.76)	(21.66%)
15	115.02	147.66	( 32.64)	(22.10%)
20	151.36	194.89	( 43.53)	(22.34%)
25	187.70	242.11	( 54.41)	(22.47%)

Indiana Natural Gas serves more than 7,700 customers, with its headquarters in Paoli, Indiana.

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