Pricing Supplement No. 1 Filing Under Rule 424(b)(3)
Dated: December 2, 1997 Registration No. 333-39085
(To Prospectus, dated November 19, 1997,
as supplemented by Prospectus
Supplement, dated November 19, 1997)
$95,000,000
Indiana Gas Company, Inc.
Medium-Term Notes, Series F
Principal Amount: $15,000,000 Redeemable: Yes __ No _X_
Original Issue Date: December 5, 1997 Initial Redemption Date: N/A
Interest Rate: 6.36% Redemption Limitation Date: N/A
Overdue Interest Rate: N/A Initial Redemption Price: N/A
Stated Maturity Date: December 6, 2004 Reduction Percentage: N/A
Issue Price: 100% Regular Record Dates: N/A
Agents' Commission: .600% Form:
Proceeds to Company: 99.400% Book Entry (DTC) _X__
Interest Payment Dates: A/S Certificated ____
Repayable at the Option of the Holder: Yes___ No _X_
Optional Repayment Date: ________N/A____________
Price to be Repaid (if other than unpaid principal
amount plus accrued interest): __________N/A____________
Estate Redemption Option: Yes__ No _X_
Redemption prices (if any): The Initial Redemption Price shall be __N/A_____% of
the principal amount of such Notes to be redeemed and shall decline on each
anniversary of the Initial Redemption Date by a Reduction Percentage of
___N/A__% of the principal amount to be redeemed until the redemption price
shall be 100% of such principal amount.
Additional terms: N/A
Prior to the date of this Pricing Supplement, the Company has sold $-0-
aggregate principal amount of the Medium-Term Notes, Series F.
N/A as used herein means "Not Applicable." A/S as used herein means "As
stated in the Prospectus Supplement referred to above."
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PRICING SUPPLEMENT OR THE PROSPECTUS TO
WHICH IT RELATES. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
(X ) Merrill Lynch & Co. ( ) ________________
