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NORTHERN INDIANA PUBLIC SERVICE COMPANY
IURC Gas Service Tariff
Original Volume No. 5		 Fourth Revised Sheet No.12A
Superseding
Second Substitute
Third Revised Sheet No. 12A

RATE 328
RATE FOR GAS SERVICE
TRANSPORTATION AND TRANSPORTATION BALANCING SERVICE

No. 2 of 19 Sheets

CHARACTER OF SERVICE (continued)

Gas transported by the Company for a Customer contracting for service hereunder shall be for the sole and exclusive benefit of such Customer and shall not be available for resale except under the provisions of the Nomination Exchange and Imbalance Exchange Services of the Company's Gas Transportation Rate Schedules.

CONTRACT

Any Customer requesting service hereunder shall enter into a written contract with the Company for such period as shall be mutually agreeable to the parties. The contract shall set forth the level of firm sales or transportation service, if desired, to be provided by the Company, which level, when selected will be considered the first volume through the meter serving the Customer.

DELIVERY OF GAS BY THE COMPANY

All gas delivered by the Company to a Customer under this Rate Schedule shall be subject to a 0.85% line loss deduction.

A schedule of the quantities of gas to be delivered to the Company on each day of the subsequent month for the Customer's account shall be delivered to the Company at the same time that nominations are required by the delivering pipeline(s). The Company will allow a Customer to change nominations daily. Daily changes in nominations must be supplied to the Company no later than the time required for such nominations by the delivering pipeline(s).

The Company acknowledges that the volume of Customer-owned gas delivered to the Company in any day, as adjusted for line losses, may not due to operating conditions, equal the amount of gas consumed by the Customer in the same day. However, the Company requires all Customers to be administratively in balance on a daily basis utilizing services provided under this Rate Schedule and/or other applicable rates.

IMBALANCES

The Company requires all Customers to be administratively balanced on a daily basis. Daily administrative balancing is accomplished through the use of services available as follows:

(A) For Customers whose annual average daily gas requirements are 3,000 Dth per day or greater.

Customers set forth in (A) above will be allowed to select from one of two service options. A Customer must select one of the two options, and will have an opportunity to change their option.

Issued Date Issued By
Gary L. Neale
Chairman, President and Chief Executive Officer 		Effective Date
May 12, 1999 Hammond, Indiana June 1, 1999

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