NiSource Inc. yesterday unveiled the new organizationalstructure that will be in place when its $6 billion merger withColumbia Energy Group is completed, and noticeably absent from theroster was Columbia Chairman, CEO and President Oliver “Rick”Richard III who had fought tooth and nail to fend off NiSource’soverture.

In an internal e-mail to all Columbia employees last week, sentthe day after FERC approved the NiSource-Columbia marriage, Richardsaid. “I am taking this opportunity to announce my intent to seeknew opportunities immediately following the closing date [of themerger]. While I will not be part of the new NiSource, I do intendto continue to work toward the effective restructuring of theindustry to meet the challenges of customer choice, energy economicdemocracy and shareholder value.”

Richard has been with Columbia since April 1995, and saw theHerndon, VA-based company through Chapter 11 bankruptcy from whichit emerged later that year. Columbia had been in the throes ofbankruptcy since July 1991. Since coming out of bankruptcy, “wehave provided to Columbia’s shareholders a total return of 240% oralmost 30% per year, clearly one of the most impressive records inour industry. I am proud to [have been] part of that successstory,” he said in the e-mail.

Throughout his career, Richard has worked on Capitol Hill, beena FERC Commissioner, and has held key positions with several majorenergy companies, including New Jersey Resources and Enron Corp. Noone could say whether Richard has accepted any offers yet, but thegeneral thinking is that he will land a plum position at anotherenergy company.

When the NiSource-Columbia merger is closed — only Securitiesand Exchange Commission approval is required — Gary L. Neale,currently chairman, president and CEO of NiSource, will become headof the new company and will retain the same titles. Most of themanagement team that has been picked to lead the new company, whichwill be named NiSource, consists of NiSource executives.

The new company’s vice chairman will be Stephen P. Adik, who nowis senior vice president, CFO and treasurer of NiSource. CatherineG. Abbott, CEO of Columbia Gas Transmission and Columbia GulfTranmission, has been named president of Pipeline Operations. Shewill oversee the two Columbia pipelines and fiber optictelecommunications network operations, as well as NiSource’sCrossroads Pipeline Co. and NiSource’s investment in PortlandNatural Gas Transmission System.

Patrick J. Mulchay, president of NiSource’s Northern IndianaPublic Service Co. (NIPSCO), will become president of the MerchantCompany, which will include electric generating operations,wholesale gas and electric trading, gas supply and storage, and gasexploration and production activities.

Jeffrey W. Yundt, president of NiSource’s Bay State Gas Co.subsidiary, has been named president of Energy Distribution,overseeing all gas and electric distribution systems of thecombined company. Mark D. Wyckoff, who will head up theNiSource/Columbia integration process, has been appointed presidentof New Energy Company, which will oversee the new company’sdistributed generation and electronic commerce initiatives. JosephL. Turner will remain president of Primary Energy Inc., thenation’s leading developer of on-site industrial power generation.All of the above executives will report directly to Neale.

Three other executives — Michael W. O’Donnell, Stephen P.Smith and James M. Clarke — will report to Adik. O’Donnell,currently senior vice president and CFO of Columbia Energy, hasbeen named executive vice president and CFO of the new company.Smith, Columbia’s deputy CFO, will be president of BusinessServices, which will include administrative and shared servicesfunctions. He also will assist Wyckoff in the integration process.Clarke will continue as vice president of Risk Management andCapital Allocation.

“This management team’s extraordinary experience, talent andenergy will enable us to hit the ground running once the merger iscompleted, to deliver to our customers and shareholders the valuefrom this strategic combination of brands and other assets,” Nealesaid. The NiSource/Columbia merger is targeted to close by the endof this year.

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