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 August 22, 2000, NiSource announced that it has appointed the
key leadership to be in place in Kentucky upon completion of its $6
billion merger with Columbia Energy Group. Joe Kelly has been named
executive vice president and chief operating officer of Columbia Gas
of Kentucky. The text of the press release is set forth below.
TEXT OF PRESS RELEASE
AUGUST 22, 2000
FOR ADDITIONAL INFORMATION
Maria Hibbs Steve Byars
NiSource Inc. Columbia Gas of Kentucky
219-647-6201 859-288-0227
NISOURCE ANNOUNCES POST-MERGER LEADERSHIP
KELLY TO CONTINUE TO LEAD COLUMBIA GAS OF KENTUCKY
MERRILLVILLE, Ind. (August 22, 2000) NiSource Inc. has
appointed the key leadership to be in place in Kentucky upon
completion of its $6 billion merger with Columbia Energy Group, which
was announced Feb. 28 and is expected to close by year-end.
Joe Kelly has been named executive vice president and chief
operating officer of Columbia Gas of Kentucky.
"Kentucky continues to play an important role in NiSource's
strategy to create a super-regional gas distribution powerhouse
through the Midwest and into the Northeast," said Gary L. Neale,
NiSource chairman, president and chief executive officer.
Kelly will continue to report to Robert Skaggs, who was named
president and chief executive officer for Columbia Gas of Kentucky,
Columbia Gas of Ohio and Bay State Gas Company. Skaggs will report to
Jeffrey Yundt, president of Energy Distribution for NiSource.
"Joe Kelly will continue to provide strong leadership to our
Kentucky operations," Yundt said. "Joe's commitment to working with
key stakeholders will prove invaluable during this time of change in
our industry."
Columbia Gas of Kentucky serves more than 141,000 customers in 31
Kentucky counties. The new NiSource will serve more than 3.6 million
gas and electric customers primarily located in nine states. Its
operations will span the high-growth energy corridor that extends from
the Gulf of Mexico through Chicago to New England, creating the
largest natural gas distributor east of the Rockies, with wholesale
and retail electric operations.
The NiSource/Columbia merger is on target to close by the end of
2000, pending approval by the U.S. Securities and Exchange Commission.
The combination was approved by the Federal Energy Regulatory
Commission in July, following necessary state actions regarding the
companies' distribution companies in Virginia, Pennsylvania, Maryland,
Indiana, Kentucky, Massachusetts, Ohio, Maine and New Hampshire. The
transaction also recently cleared the waiting period under the Hart-
Scott-Rodino Antitrust Improvements Act at the U.S. Department of
Justice and the Federal Trade Commission. Shareholders of both
companies approved the merger in June.
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
through Chicago 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 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 federal and state regulators.
Other factors include, but are not limited to, actions in the
financial markets, weather conditions, economic conditions in the
two companies' service territory, 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 for NiSource and Columbia Energy
Group. The final joint proxy statement/prospectus, dated April
24, 2000, is available and has been distributed to the companies'
shareholders. Investment and security holders are urged to read
the joint proxy statement/prospectus and 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.
# # #
