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NORTHERN INDIANA PUBLIC SERVICE COMPANY
IURC Gas Service Tariff
Original Volume No. 5
Original Sheet No. 21.4B

DAILY IMBALANCE CASH-OUT PROVISIONS
RIDER TO RATE SCHEDULES

No. 2 of 5 Sheets

DAILY IMBALANCE CASH-OUT PROVISIONS (continued)

The Daily Index price shall be the arithmetic average of the range of prices posted for "Chicago LDC's, large end users" under the table Citygate, Pooling Point Prices as published in Gas Daily. In the event this posting is unavailable, Company will establish a new Daily Index price.

The First of Month Index price shall be the arithmetic average of the "Range of Reported Spot Prices Utilities" for the first day of each Month appearing under the table "Northern Illinois/Northern Indiana"as published in INSIDE FERC.

Daily Imbalances During Critical Periods

For Undertake Imbalances (the Qualifying Customer's nominated volume is greater than its metered volume) the Company will purchase gas from the Qualifying Customer at the rates below

Imbalance
Level
Company Pays
Qualifying Aggregator
- 0% to .99%
- 1% to 4.99%
- 5% to 10%
Under - 10%
100% of the Lesser of Daily Index or First of Month Index
90% of the Lesser of Daily Index or First of Month Index
80% of the Lesser of Daily Index or First of Month Index
60% of the Lesser of Daily Index or First of Month Index

For Overtake Imbalances (the Qualifying Customer's nominated volume is less than its metered volume) the Qualifying Customer will purchase gas from the Company at the rates below, plus the applicable transportation charge as provided for in the Qualifying Customer's transportation tariff:

Imbalance
Level
Company Pays
Qualifying Aggregator
+ 0% to .99%
+ 1% to 4.99%
+ 5% to 10%
Over + 10%
100% of the Lesser of Daily Index or First of Month Index
110% of the Lesser of Daily Index or First of Month Index
120% of the Lesser of Daily Index or First of Month Index
140% of the Lesser of Daily Index or First of Month Index


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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