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

DAILY IMBALANCE CASH-OUT PROVISIONS
RIDER TO RATE SCHEDULES

No. 1 of 5 Sheets

AVAILABILITY

This Rider shall apply to any Rate Schedule that incorporates this Daily Imbalance Cash-out Provisions Rider by reference.

DAILY IMBALANCE CASH-OUT PROVISIONS

The Qualifying Customer shall use its best efforts to balance within plus or minus five percent (5%) on a daily basis its confirmed nominations of gas at the city gate with its usage at the burnertip. Volume imbalances shall be subject to the daily charges provided herein.

Daily Imbalances During Non-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 Company
- 0% to 4.99%
- 5% to 9.99%
- 10% to 20%
Under - 20%
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
Qualifying Customer
Pays Company
+ 0% to 4.99%
+ 5% to 9.99%
+ 10% to 20%
Over + 20%
100% of the Greater of Daily Index or First of Month Index
110% of the Greater of Daily Index or First of Month Index
120% of the Greater of Daily Index or First of Month Index
140% of the Greater 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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