Pricing Supplement No. 001 Filing under Rule 424(b)(2)
Dated June 3, 1997 Registration No. 333-26847
(To Prospectus dated May 28, 1997)
$217,692,000
Northern Indiana Public Service Company
Medium-Term Notes, Series E
Due 1 to 30 Years From Date of Issue
____________________
Principal Amount: $12,000,000
Trade Date: June 3, 1997
Original Issue Date: June 6, 1997
Interest Rate: 7.25%
Stated Maturity Date: June 6, 2007
Form : XX Book Entry ___ Certified
Interest Payment Date(s): March 15, and September 15
Specified Currency: U.S. Dollars
Selling Agents Commission: $75,000
Net Proceeds to the Company: $11,925,000
The Medium-Term Note described in this Pricing Supplement is being sold
through Goldman Sachs & Co., as Agent.
Prior to the date of this Pricing Supplement, no Medium-Term Notes,
Series E, have been sold. Concurrently herewith, the Company is also
selling (1) $20,000,000 aggregate principal amount of Medium-Term Notes
with a Stated Maturity Date of June 7, 2027 and bearing an interest
rate of 7.69% at the initial price to the public equal to 100% of par,
less a fee to Goldman Sachs & Co., as Agent, equal to 0.75%; (2)
$1,000,000 aggregate principal amount of Medium-Term Notes with a
Stated Maturity Date of June 8, 2009 and bearing an interest rate of
7.35% at the initial price to the public equal to 100% of par, less a
fee to Goldman Sachs & Co., as Agent, equal to 0.625%; (3) $10,500,000
aggregate principal amount of Medium-Term Notes with a Stated Maturity
Date of June 6, 2002 and bearing an interest rate of 6.92% at the initial
price to the public equal to 100% of par, less a fee to Merrill Lynch
& Co., as Agent, equal to 0.50%; (4) $22,500,000 aggregate principal
amount of Medium-Term Notes with a Stated Maturity Date of June 12,
2017 and bearing an interest rate of 7.59% at the initial price to the
public equal to 100% of par, less a fee to Merrill Lynch & Co., as
Agent, equal to 0.75%; and (5) $33,000,000 aggregate principal amount
of Medium-Term Notes with a Stated Maturity Date of June 7, 2027 and
bearing an interest rate of 7.69% at the initial price to the public
equal to 100% of par, less a fee to Morgan Stanley & Co. Incorporated,
as Agent, equal to 0.75%.
Goldman, Sachs & Co.
Merrill Lynch & Co.
Morgan Stanley & Co. Incorporated
