NiSource Inc., the gas and electric power distributor headquarteredin Merrillville, IN, reported that its earnings were up 25% for thethird quarter, with a per common share of $1.27 compared with $1.02 inthe third quarter of 1999. The results were “favorably impacted” bythe sale of Market Hub Partners (see Daily GPI, Aug. 31), which resulted in a $23.8 millionafter-tax gain, or approximately 19 cents per common share. NiSourcesaid that continued customer growth from the company’s natural gas,electric and water distribution businesses contributed to improvedearnings, offset by decreased electricity sales in the cool summer,increased interest charges of $28.4 million related to the Bay StateGas and EnergyUSA-TPC acquisitions, and expenditures of $5 millionrelated to the NiSource Columbia Energy Group merger (see Daily GPI,June 2). Net income was $1.55 million,an increase of $27.6 million from the third quarter of 1999. Gasoperations EBIT increased $83 million to $144.7 million from lastyear, mostly because of its Market Hub Partners sale. Electricoperation earnings EBIT increased $8.9 million to $292 million becauseof decreased operating expenses, which were partially offset bydecreased sales to residential customers during the cooler summercompared to the same period in 1999. NiSource said its cooling degreedays were down 23% from a year ago, which also decreased bulk powersales to other utilities. As part of its merger with Columbia EnergyGroup, which is slated to close Wednesday (Nov. 1), NiSource completedexchanging Columbia common shares for those electing to receive stockunder an exchange ratio of 3.04414. Under the merger terms, theexchange ratio was determined by dividing $74 by the average closingprice of NiSource common stock beginning Sept. 18 and endingOct. 27. The average for the period was $24.3090. Columbiashareholders who wanted to receive NiSource stock in the merger weresupposed to submit their completed election forms and stockcertificates by 5 p.m. Monday (Oct. 30). Contact ChaseMellonShareholder Services at (800) 685-4258 for information.

Williams reported that its wholly-owned partnership WilliamsEnergy Partners L.P., has filed with the Securities and ExchangeCommission (SEC) to launch an initial public offering (IPO) ofcommon units. The subsidiary was formed to acquire, own and operatea diversified portfolio of energy assets including four marinepetroleum product terminal facilities, 24 inland terminals that actas a distribution network for gasoline and other refined petroleumproducts, and an ammonia pipeline and terminal system that travelsfrom Texas to Oklahoma to Minnesota. Under the symbol “WEG,”Williams hopes to offer 3,750,000 units (32% of the partnership)beginning in January 2001. Williams will retain the remaining 68%interest in the partnership.

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