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NORTHERN INDIANA PUBLIC SERVICE COMPANY
IURC Gas Service Tariff
Original Volume No. 5
Original Sheet No. 21.9B

RATE 340
RATE FOR GAS SERVICE
LIQUIFIED NATURAL GAS (LNG) SERVICE

No. 2 of 3 Sheets

RATE

Transaction Charge

$50.00 per Transaction

Liquefaction Charge

The Company shall determine, based on alternative fuel prices, the liquefaction charge component to be included in the commodity charge.

Supply and Delivery Charge

The Supply and Delivery Charge shall include, where applicable, Gas Supply Charges, Transportation Charges, Fuel Use Charges, Delivery Charges and Administrative Charges.

Customers taking service hereunder may elect to supply the appropriate quantity of natural gas to the Company's gas system to compensate the Company for the volume of gas required for the LNG delivery.

The Liquefaction Charge and Supply and Delivery Charge will be individually negotiated charges, such charges to be set forth in each Customer Service Agreement.

Rate Adjustments

Gas supplied under this Rider shall be subject to the following surcharges:

( i ) Take-or-Pay Surcharge

Such surcharge per therm shall be calculated by dividing the total take-or-pay costs charged to the Company by the projected total sales and delivered volumes for the twelve (12) month period commencing with the proposed effective date of the surcharge. The surcharge per therm shall be adjusted quarterly concurrent with the Company's Gas Cost Adjustment filing.



Issued Date Issued By
Gary L. Neale
Chairman, President and Chief Executive Officer
Effective Date
November 1, 1997Hammond, Indiana November 1, 1997

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