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NORTHERN INDIANA PUBLIC SERVICE COMPANY
IURC Gas Service Tariff
Original Volume No. 5
Original Sheet No. 21.7A

RATE 348
RATE FOR GAS SERVICE
GAS LENDING SERVICE (GLS)

No. 1 of 4 Sheets

TO WHOM AVAILABLE

This experimental Rate for Lending Service is available to all Zone A and Zone B Customers receiving service under Rate Schedules 328, 336, 338, Firm Distribution Transportation Service (FDTS), Firm Transportation Service (FTS) and suppliers and marketer aggregators utilizing Supplier Aggregation Service (Qualifying Customers), who shall execute a Service Agreement with the Company for service hereunder.

CHARACTER OF SERVICE

Service hereunder shall be available, at the sole discretion of the Company, to any Qualifying Customer, who from time to time, desires to borrow certain volumes of natural gas for a designated period of time, and then repay the borrowed volumes of gas to the Company. Lending Service will not be provided for more than thirty (30) consecutive days, unless otherwise agreed to by the Company.

Company shall provide this service to Qualifying Customers on a transaction by transaction basis subject to mutually agreeable terms and conditions. Each transaction hereunder will be individually negotiated by the Qualifying Customer and the Company and set forth in the request to initiate service.

Service under this Rate Schedule shall be nominated on a daily basis, as provided in the applicable Lending Service Agreement hereunder, and is subject to interruption by the Company, in its sole discretion, as it deems necessary to meet its contractual and operational obligations.

SERVICE AGREEMENT

As a condition for receiving service hereunder, Qualifying Customer shall be required to execute a Lending Service Agreement, prior to initiating requests for transactions and the commencement of service hereunder.

REQUEST TO INITIATE A TRANSACTION

For each transaction under the lending Service Agreement, Qualifying Customer shall submit a request to initiate a transaction with the Company. Such request will include information required to determine whether Company's



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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