NiSource is making some of the last remaining organizational changes since it bought Columbia Energy Group two years ago. The company announced actions Thursday to reduce the size of its management structure. Under the plan, the streamlining will move executive management closer to customers and promote efficiency while lowering costs in response.

NiSource said four executives are retiring or leaving the organization by early 2003. They include:

These executives led the business units formed when NiSource merged with Columbia in November 2000.

“As with all such decisions, today’s actions, while painful in announcing the departure from the company of trusted and loyal colleagues, reflect our commitment to make the changes necessary to adapt to an evolving energy industry,” said Gary L. Neale, NiSource CEO. “Agile companies review their management structure in response to business efficiency needs and changing market conditions.

“The management structure that evolved from our merger with Columbia Energy Group was designed to support an organization with a broader strategy that included a merchant function,” he added. “Current conditions dictate a focus on our core regulated businesses, and streamlining our management structure to reflect that change is the right move.”

The company was quick to note that the management restructuring would not alter its existing business structure and operating companies. NiSource said executives currently in leadership roles will lead its operating companies. They include the following:

Under the new structure, these operating executives will report to Samuel W. Miller, who earlier this week was named NiSource’s executive vice president and COO, as will the functional leaders of NiSource’s business services on an interim basis.

“This process of looking at ourselves and ensuring that we are organized and staffed efficiently and effectively is ongoing,” Neale stated. “Work that we began last fall indicated a necessary reduction in management layers to efficiently support our current focused business strategy. By reducing these layers, we can operate closer to our customers and better integrate our businesses while achieving greater levels of efficiency and effectiveness.”

The Merrillville, IN-based company engages in nearly all phases of the natural gas business from exploration and production to transmission, storage and distribution, as well as electric generation, transmission and distribution.

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