NiSource Inc. and Columbia Energy Group filed a jointapplication with the Federal Energy Regulatory Commission (FERC)seeking necessary approvals of their planned merger under theFederal Power Act (FPA).

The deal, announced Feb. 28, is expected to close by the end ofthe year. The combined company will serve more than 4.1 millioncustomers, primarily located in nine states. Its 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 that is subject to FERCjurisdiction under the FPA is Northern Indiana Public ServiceCompany (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 generatingplants and four gas-fired combustion turbine generating units,providing a total system net capability of 3,392 megawatts.

The only Columbia subsidiary subject to FPA jurisdiction isColumbia Energy Power Marketing (CEPM) Corp. Current FERC and stateregulatory jurisdiction over the companies’ subsidiaries also willremain unchanged following the merger, according to the filing.

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