NiSource Inc. and Columbia Energy Group filed last week with theFederal Energy Regulatory Commission (FERC) for merger approvalunder the Federal Power Act (FPA).

The deal, announced Feb. 28, is expected to close by the end ofthe year (see NGI March 6). The combined company will serve morethan 4.1 million customers, mainly in nine states. Operations willspan the energy corridor from the Gulf of Mexico to New England,creating the largest gas distributor east of the Rockies, withwholesale and retail electric operations.

“Today’s filing is our next step toward creating asuper-regional enterprise with access to strategic and operationalopportunities that would not be available to us as separatecompanies,” said Gary L. Neale, NiSource CEO. “Together, we willhave three elements that are key to success in the increasinglyderegulated and competitive energy marketplace: increased size,scope and scale; access to strategic geographic markets, and abroad range of complementary assets.”

The principal subsidiary of NiSource subject to FERC FPAjurisdiction is Northern Indiana Public Service Co. (NIPSCO).NIPSCO generates and distributes electricity to about 426,000customers in 30 counties in northern Indiana, owns and operatesfour coal-fired generating stations, two hydroelectric plants andfour gas-fired combustion turbine generating units, providing totalcapability of 3,392 megawatts. The only Columbia subsidiary subjectto FPA jurisdiction is Columbia Energy Power Marketing (CEPM) Corp.Current FERC and state regulatory jurisdiction over the companies’subsidiaries will remain unchanged following the merger, accordingto the filing. Joe Fisher, Houston

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