RATE 336 RATE FOR GAS SERVICE NEW BUSINESS TRANSPORTATION AND TRANSPORTATION BALANCING SERVICE

NORTHERN INDIANA PUBLIC SERVICE COMPANY
IURC Gas Service Tariff
Original Volume No. 5

Third Revised Sheet No. 17A
Superseding
Second Revised
Sheet No. 17A

RATE 336
RATE FOR GAS SERVICE
NEW BUSINESS TRANSPORTATION AND
TRANSPORTATION BALANCING SERVICE

No. 2 of 12 Sheets

CHARACTER OF SERVICE (continued)

The Customers in Zone B shall make all necessary agreements and obtain all necessary regulatory or governmental certificates or approvals to enable the gas transported under this Rate Schedule to be delivered to the Company at at least one delivery point of the Company's existing delivery points of Panhandle Eastern Pipe Line Company (Bluffton, Fort Wayne and Preble), ANR Pipeline Company (Fort Wayne), and Crossroads Pipeline Company (Nappanee) and provided the Company's contractual arrangements and facilities are adequate to transport the contracted volumes to the facilities of the Customer.

The Company will be the sole determinant of pipeline delivery point capacity availability for transport gas volumes. In the event there is greater demand for deliveries at any given City Gate than there is capacity available, such available capacity will be allocated to Customers in accordance with the allocation methodology established between the Company and the delivering pipeline.

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 Service 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 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).

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