June 19, 2002

IURC APPROVES DECREASE IN GAS COST ADJUSTMENT FOR PEOPLES GAS

Today in Cause No. 37441-GCA74 the Indiana Utility Regulatory Commission approved the gas cost adjustment for Peoples Gas. Customers of the company will have the benefit of lower prices for the months of August through October of 2002. The tables below show the impact on customers.

Table 1

Proposed vs. Currently Approved GCA Factor

For Residential Customers

Consumption Dth		Bill at Proposed GCA Factor	Bill at Currently Approved GCA Factor		Dollar Decrease		Percent Change

5	$ 33.28			$ 38.18	$ ( 4.90)	-12.83%
10	61.83			71.63	( 9.80)	-13.68%
15	86.03			100.74	(14.71)	-14.60%
20	110.24			129.86	(19.62)	-15.11%
25	134.45			158.97	(24.52)	-15.42%

Table 2

Proposed vs. Prior Year Approved GCA Factor

For Residential Customers

Consumption Dth	Bill at Proposed GCA Factor	Bill at Prior Year Approved GCA Factor	Dollar Decrease	Percent Change

5	$ 33.28	$ 55.63	$ ( 22.35)	-40.18%
10	61.83	106.52	( 44.69)	-41.95%
15	86.03	153.08	( 67.05)	-43.80%
20	110.24	199.64	( 89.40)	-44.78%
25	134.45	246.19	(111.74)	-45.39%

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