Filed by: NiSource Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Columbia Energy Group
Registration Statement File No: 333-33896
On June 8, 2000, NiSource and Columbia Energy Group issued a
press release announcing that the Maryland Public Service Commission
has certified that the companies' proposed merger will not impair the
state's ability to regulate Columbia Gas of Maryland, Inc., a natural
gas distribution subsidiary of Columbia Energy Group that serves
nearly 32,000 customers in three of Maryland's 24 counties. The text
of the press release is set forth below.
PRESS RELEASE
June 8, 2000
[NiSource Logo] [Columbia logo]
Contacts:
Media
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NiSource - Sally A. Anderson (219) 647-6203
Columbia - Michael J. McGarry (703) 561-6063
Investor Relations
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NiSource - Dennis Senchak (219) 647-6085
Columbia - Thomas L. Hughes (703) 561-6001
Maryland PSC Certifies Its Authority Following NiSource/Columbia
Merger Letter to SEC Cites Continued Protection of Columbia Customers
MERRILLVILLE, Ind., and HERNDON, Va. (June 8, 2000) - NiSource
Inc. and Columbia Energy Group today said the Maryland Public Service
Commission (PSC) has certified that the companies' proposed merger
will not impair the state's ability to regulate Columbia Gas of
Maryland, Inc.(CMD). A natural gas distribution subsidiary of Columbia
Energy Group, CMD serves nearly 32,000 customers in three of
Maryland's 24 counties.
In a letter to the U.S. Securities and Exchange Commission (SEC),
the Maryland PSC said that following the merger it will continue to
have the statutory authority and resources to protect CMD customers
subject to its jurisdiction. Furthermore, it "intends to exercise
that authority to the fullest extent possible under the law."
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Maryland PSC Certifies Authority After NiSource/Columbia Merger - 2
"The Maryland commission's prompt certification that our proposed
merger will have no impact on their regulatory authority is greatly
appreciated," said Gary L. Neale, NiSource chairman, president and
chief executive officer. "Their timeliness helps us maintain our
momentum in reaching merger completion before year-end."
"Our commitment to serving Columbia's customers in Maryland will
remain as strong as ever, and we will continue to build our customer
choice porgram," said Oliver G. Richard III, Columbia Energy Group
chairman, president and chief executive officer.
The Maryland PSC letter to the SEC, dated May 25, follows
similar actions by the Public Utilities Commission of Ohio on May 2
regarding Columbia Gas of Ohio and by the Commonwealth of
Massachusetts' Department of Telecommunications & Energy on May 12
regarding NiSource subsidiary Bay State Gas Company. Completion of the
NiSource/Columbia Energy Group merger is pending approvals by several
other state public utility commissions and certain federal regulatory
agencies. The $6 billion transaction, announced Feb. 28 and approved
by shareholders of both companies at meetings on June 1 and June 2, is
expected to close by the end of 2000.
NiSource Inc. (NYSE: NI) is a holding company with headquarters
in Merrillville, Ind., whose primary business is the distribution of
electricity, natural gas and water in the Midwest and Northeastern
United States. The company also markets utility services and customer-
focused resource solutions along a corridor from Texas to Maine. More
information about the company is available on the Internet at
www.nisource.com.
Columbia Energy Group (NYSE: CG), based in Herndon, Va., is one
of the nation's leading energy services companies. Its operating
companies engage in nearly all phases of the natural gas business,
including exploration and production, transmission, storage and
distribution, as well as retail energy marketing, propane and
petroleum product sales, and electric power generation. More
information about Columbia is available on the Internet at
www.columbiaenergygroup.com.
This release contains forward-looking statements within the
meaning of the federal securities laws. These forward-
looking statements are subject to various risks and
uncertainties. The factors that could cause actual results
to differ materially from the projections, forecasts,
estimates and expectations discussed herein include factors
that are beyond the companies' ability to control or
estimate precisely, such as estimates of future market
conditions, the behavior of other market participants and
the actions of the Federal and State regulators.
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Maryland PSC Certifies Authority After NiSource/Columbia Merger - 3
Other factors include, but are not limited to, actions in
the financial markets, weather conditions, economic
conditions in the two companies' service territories,
fluctuations in energy-related commodity prices, conversion
activity, other marketing efforts and other uncertainties.
These and other risk factors are detailed from time to time
in the two companies' SEC reports. Readers are cautioned
not to place undue reliance on these forward-looking
statements, which speak only as of the date of this release.
The companies do not undertake any obligation to publicly
release any revisions to these forward-looking statements to
reflect events or circumstances after the date of the
document.
In addition to other documents filed with the Securities and
Exchange Commission by the two companies, NiSource and the
new holding company have filed a registration statement,
which contains a joint proxy statement/prospectus for
NiSource and Columbia Energy. The final joint proxy
statement/prospectus, dated April 24, 2000, is available and
has been distributed to the companies' shareholders.
Investors and security holders are urged to read the joint
proxy statement/prospectus and any other relevant documents
filed with the SEC because they contain important
information. Investors and security holders may receive the
joint proxy statement/prospectus and other documents free of
charge at the SEC's Web site, www.sec.gov, from NiSource
Investor Relations at 801 East 86th Avenue, Merrillville,
Indiana 46410 or at its Web site, www.nisource.com, or from
Columbia Investor Relations at 13880 Dulles Corner Lane,
Herndon, Virginia 20171 or at its Web site,
www.columbiaenergygroup.com.
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