February 23, 1999
Securities and Exchange Commission
6432 General Green Way
Alexandria, VA 23212-2413
Gentlemen:
We are transmitting herewith Indiana Energy, Inc.'s
Statement on Form U-3A-2.
Sincerely,
/s/Douglas S. Schmidt
Douglas S. Schmidt
DSS:tmw
File No. 069-00312
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-3A-2
Statement by Holding Company Claiming Exemption
Under Rule U-3A-2 from the Provisions of the Public
Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
INDIANA ENERGY, INC.
hereby files with the Securities and Exchange
Commission (Commission), pursuant to Rule 2, its
statement claiming exemption as a holding company from
the provisions of the Public Utility Holding Company
Act of 1935, and submits the following information:
1. Name, State of organization, location and nature of
business of claimant and every subsidiary thereof.
Indiana Energy, Inc. (Indiana Energy), Claimant
in this statement, is an Indiana corporation with
its principal offices in Indianapolis, Indiana.
Claimant is a "holding company" (as such term is
defined by the Act), owning all of the issued and
outstanding shares of common stock of Indiana Gas
Company, Inc. (Indiana Gas), IEI Investments, Inc.
(IEI Investments) and IEI Capital Corp (Capital
Corp.). Indiana Energy is also the 99 percent
owner of IEI Services, LLC (IEI Services).
Indiana Gas is an Indiana corporation engaged
in the business of supplying gas service at retail,
including transportation, to ultimate consumers,
all within the state of Indiana. Indiana Gas is a
"subsidiary company" of Indiana Energy and is also
a "gas utility company" and a "public utility
company" (as such terms are defined by the Act).
Indiana Gas owns all of the issued and
outstanding shares of common stock of Terre Haute
Gas Corporation (Terre Haute) and Richmond Gas
Corporation (Richmond), both of which are Indiana
corporations. While Terre Haute and Richmond
technically exist as separate corporate entities,
in accordance with an order issued by the Indiana
Utility Regulatory Commission, Indiana Gas, Terre
Haute and Richmond have combined their operations
for all purposes and are transacting business under
the name Indiana Gas Company, Inc. Pursuant to
that order, accounting records and financial
reports are on a consolidated basis. For purposes
of this statement, any reference to Indiana Gas
will, in effect, be inclusive of the separate
corporate entities of Richmond and Terre Haute.
IEI Investments, an Indiana corporation, was
formed for the purpose of grouping and controlling
nonregulated businesses of Indiana Energy and
investments therein and to separate them from
regulated businesses. IEI Investments has three
wholly owned subsidiaries, IGC Energy, Inc., Energy
Realty, Inc. and Energy Financial Group, Inc., all
of which are Indiana corporations.
On March 15, 1996, IGC Energy, Inc. (IGC
Energy) and Citizens By-Products Coal Company, a
wholly owned subsidiary of Citizens Gas and Coke
Utility (Citizens Gas), formed a jointly and
equally owned Indiana limited liability company to
provide natural gas supply and related services.
The formed entity, ProLiance Energy, LLC
(ProLiance), began providing services to Indiana
Gas and Citizens Gas effective April 1, 1996.
ProLiance also provides products and services to
other gas utilities and customers in Indiana and
surrounding states. ProLiance assumed the business
of Indiana Energy Services, Inc., a wholly owned
subsidiary of IGC Energy and an Indiana
corporation, which had provided similar services to
other customers and from January 1, 1996, to March
31, 1996, to Indiana Gas. ProLiance added power
marketing in late fiscal 1997 to its services
offered. Power marketing involves buying
electricity on the wholesale market and then
reselling it to other marketers, utilities and
other customers.
On April 1, 1997, IGC Energy and Citizens By-
Products Coal Company formed CIGMA, LLC (CIGMA), a
jointly and equally owned Indiana limited liability
company. CIGMA provides materials acquisition and
related services that are used by Indiana Gas and
Citizens Gas, as well as similar services for third
parties.
On May 23, 1997, IGC Energy, Citizens By-
Products Coal Company and Energy Systems Group,
Inc. (ESGI) formed Energy Systems Group, LLC (ESG),
an equally owned Indiana limited liability company.
ESG provides a package of products, services and
skills to help energy users achieve enhanced energy
and operational performance. The packages provide
for improvements to be paid for by the customers
from savings generated within their existing
operating budgets. ESG assumed the
responsibilities of ESGI, an energy related
performance contracting firm and wholly owned
subsidiary of SIGCORP, Inc.
On June 30, 1998, IGC Energy and Cinergy Supply
Network, Inc., a subsidiary of Cinergy Corp.
(Cinergy), formed Reliant Services, LLC (Reliant),
an equally owned Indiana limited liability company,
to perform underground facilities locating and
construction services. In September 1998, Reliant
signed an agreement to purchase two Indianapolis
area companies to enable it to enter the market
once certain regulatory approvals are received by
Cinergy. Reliant is based in the Indianapolis area
and will focus initially on serving electric, gas,
telephone, cable and water companies in Indiana,
Ohio and Kentucky.
Energy Realty, Inc. is a real estate company
and also has affordable housing investments.
Energy Financial Group, Inc. (EFGI) was formed
on January 20, 1998, to hold all financial entities
and investments of IEI Investments. Also on
January 20, 1998, IEI Synfuels, Inc. was
established as an Indiana corporation and wholly-
owned subsidiary of EFGI and on February 5, 1998,
purchased one limited partnership unit
(representing an 8.3 percent ownership interest) in
Pace Carbon Synfuels Investors, L.P. (Pace Carbon),
a Delaware limited partnership formed to develop,
own and operate four projects to produce and sell
coal-based synthetic fuel. Pace Carbon converts
coal fines (small coal particles) into coal pellets
that are sold to major coal users such as utilities
and steel companies. This process is eligible for
federal tax credits under Section 29 of the
Internal Revenue Code and the Internal Revenue
Service has issued a private letter ruling with
respect to the four projects.
On April 1, 1998, IEI Financial Services, LLC
(IEI Financial Services) began its operations. IEI
Financial Services will perform third-party
collections, energy-related equipment leasing and
related services. IEI Financial Services will
provide these services to Indiana Gas and to other
third parties. IEI Financial Services has two
members, EFGI (99 percent ownership) and IGC Energy
(1 percent ownership).
On October 9, 1998, IEI Investments committed
to invest $10 million in Haddington Energy
Partners, L.P. (Haddington). Haddington, a Delaware
limited partnership, plans to raise $100 million to
invest in six to eight projects that represent a
portfolio of development opportunities, including
natural gas gathering and storage and electric
power generation. Haddington's investment
opportunities will focus on acquiring and building
on projects in progress rather than start-up
ventures. Haddington's initial closing achieved
$72 million in commitments.
Capital Corp., an Indiana corporation, was
formed in October 1997 to conduct the financing for
Indiana Energy and its subsidiaries other than
Indiana Gas. Capital Corp. will provide the
nonregulated businesses with short-term financing
for working capital requirements, as well as secure
permanent financing for those entities as
necessary.
IEI Services, formed in October 1997, provides
support services to Indiana Energy and its
subsidiaries. These services include information
technology, financial, human resources, building
and fleet services. IEI Services is an Indiana
limited liability company with two members, Indiana
Energy (99 percent ownership) and IGC Energy (1
percent ownership).
2. A brief description of the properties of
claimant and each of its subsidiary public utility
companies used for the production, transmission and
distribution of natural or manufactured gas, indicating
the location of principal transmission lines, producing
fields, gas manufacturing plants and gas distribution
facilities, including all such properties which are
outside the State in which claimant and its
subsidiaries are organized and all transmission or
pipelines which deliver or receive gas at the borders
of such State.
At the date of the filing of this Statement,
Indiana Energy had no real properties and is solely
a holding company owning all of the issued and
outstanding shares of common stock of Indiana Gas,
IEI Investments and Capital Corp.
The properties of Indiana Gas used for the
production, storage and distribution of gas are
located solely within the state of Indiana except
for pipeline facilities extending from points in
northern Kentucky to points in southern Indiana by
means of which gas is transported to Indiana for
sale or transportation by Indiana Gas to ultimate
customers in Indiana. At December 31, 1998, these
included approximately 10,716 miles of distribution
mains; 512,351 meters, five reservoirs for
underground storage of purchased gas with
approximately 71,484 acres of land owned and/or
held under storage easements with 8,972,000 Dth of
gas in storage providing a daily deliverability
capacity of 134,160 Dth. Indiana Gas has five
liquefied petroleum air gas manufacturing plants
with a total daily capacity of 36,700 Dth of gas.
These properties are used by Indiana Gas in its gas
operations in which gas is supplied to
approximately 491,000 consumers in 281 communities
in 48 of the 92 counties in the state of Indiana.
The largest communities served are Muncie,
Anderson, Lafayette-West Lafayette, Bloomington,
Terre Haute, Marion, New Albany, Columbus,
Jeffersonville, New Castle and Richmond. While
Indiana Gas does not serve in Indianapolis, it does
serve the counties and communities which border
that city.
Effective April 1, 1996, Indiana Gas purchases
all of its natural gas from ProLiance. Gas is
transported to Indiana Gas' system by interstate
pipeline suppliers under Federal Energy Regulatory
Commission approved rate schedules.
3. The following information for the last
calendar year with respect to Claimant and each of its
subsidiary public utility companies:
(a) Number of Dth of gas distributed at retail:
Dekatherms (Dth) of gas distributed at retail within
the state of Indiana by Indiana Gas for sales and
transportation during calendar year 1998 and the
associated revenues therewith were as follows:
<TABLE>
Dth Revenues
<S> <C> <C>
Sales 62,806,000 $400,217,000
Transportation 46,794,000 20,242,000
Total 109,600,000 $420,459,000
</TABLE>
(b) Number of Dth of gas distributed at retail outside the
State in which each such company is organized:
None
(c) Number of Dth of gas sold at wholesale
outside the State in which each such company is
organized, or at the State line:
None
(d) Number of Dth of gas purchased outside the
State in which each such company is organized
or at the State line:
None
4. The following information for the reporting
period with respect to claimant and each interest it
holds directly or indirectly in a EWG or a foreign
utility company.
Inapplicable to claimant.
Exhibit A
A consolidating statement of income and a
consolidating statement of retained earnings of Indiana
Energy and subsidiaries, for the calendar year 1998,
together with a consolidating balance sheet of Indiana
Energy and subsidiary companies, as of the close of
such calendar year, are annexed hereto as Exhibit A.
Exhibit B
See the Financial Data Schedule filed herewith as
Exhibit 27.
Exhibit C
Inapplicable to claimant.
The above named Claimant has caused this statement
to be duly executed on its behalf by its authorized
officer on this 23rd day of February 1999.
INDIANA ENERGY, INC.
(Name of Claimant)
By /s/Niel C. Ellerbrook
Niel C. Ellerbrook
President and
Chief Operating Officer
Attest:
/s/Anthony E. Ard
Anthony E. Ard
Senior Vice President and Secretary
Name, title and address of officer to whom notices and
correspondence concerning this statement should be
addressed:
Niel C. Ellerbrook
President and
Chief Operating Officer
Indiana Energy, Inc.
1630 North Meridian Street
Indianapolis, Indiana 46202
<TABLE>
INDIANA ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
(Thousands - Unaudited)
Indiana IEI IEI IEI IGC Energy
Indiana Gas Co., Services, Capital Invest., Energy, Realty,
ASSETS Energy, Inc. Inc. LLC Corp. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ (67) $ 20 $ (861) $ (110) $ (6,205) $ 7,695 $ (833)
Accounts receivable, less reserves 14 28,668 166 (1) (4) - 1
Accounts receivable from affiliated cos. 357 - 3,203 - 120 - 340
Notes receivable from affiliated cos. 575 - - 12,256 3,423 - -
Interest receivable from affiliated cos. 8 - - 230 67 - -
Accrued unbilled revenues - 40,577 - - - - -
Liquefied petroleum gas - at avg. cost - 892 - - - - -
Gas in underground storage - at
last-in, first-out cost - 18,150 - - - - -
Prepayments and other 1,949 4,903 (180) - (17) - 12
2,836 93,210 2,328 12,375 (2,616) 7,695 (480)
EQUITY IN NET ASSETS OF WHOLLY-
OWNED SUBSIDIARIES:
Indiana Gas Company, Inc. 245,880 - - - - - -
IEI Services, LLC 33,229 - - - - 346 -
IEI Investments, Inc. 28,692 - - - - - -
IEI Capital Corp. 6 - - - - - -
IGC Energy, Inc. - - - - 22,462 - -
Energy Realty, Inc. - - - - 1,646 - -
Energy Financial Group, Inc. - - - - 7,454 15 -
IEI Synfuels, Inc. - - - - - - -
IEI Financial Services, LLC - - - - - - -
Indiana Energy Services, Inc. - - - - - 1 -
307,807 - - - 31,562 362 -
INVESTMENTS IN UNCONSOLIDATED
AFFILIATES - - - - - 20,329 6,203
UTILITY PLANT:
Original cost - 946,602 - - - - -
Less - Accum. depr. and amort. - 376,133 - - - - -
- 570,469 - - - - -
NONUTILITY PLANT:
Original cost - 340 57,854 - 45 21 -
Less - Accum. depr. and amort. - 340 13,859 - 13 - -
- - 43,995 - 32 21 -
DEFERRED CHARGES AND
OTHER ASSETS:
Unamortized debt discount and exp. - 12,653 - - - - -
Regulatory income tax asset - 1,778 - - - - -
Other 9 2,622 440 - - - -
9 17,053 440 - - - -
$310,652 $680,732 $ 46,763 $ 12,375 $ 28,978 $ 28,407 $ 5,723
Indiana Energy IEI IEI Adjustments
Energy Financial Synfuels, Financial Debit
ASSETS Svcs, Inc. Group,Inc. Inc. Svcs,LLC (Credit) Consolidated
CURRENT ASSETS:
Cash and cash equivalents $ 1 $ (285) $ (53) $ 9 $ 709 $ 20
Accounts receivable, less reserves - - - 18 (252) 28,610
Accounts receivable from affiliated cos. - - - 44 (4,064) -
Notes receivable from affiliated cos. - - - 282 (16,536) -
Interest receivable from affiliated cos. - - - - (305) -
Accrued unbilled revenues - - - - - 40,577
Liquefied petroleum gas - at avg. cost - - - - - 892
Gas in underground storage - at
last-in, first-out cost - - - - - 18,150
Prepayments and other - - - - - 6,667
1 (285) (53) 353 (20,448) 94,916
EQUITY IN NET ASSETS OF WHOLLY-
OWNED SUBSIDIARIES:
Indiana Gas Company, Inc. - - - - (245,880) -
IEI Services, LLC - - - - (33,575) -
IEI Investments, Inc. - - - - (28,692) -
IEI Capital Corp. - - - - (6) -
IGC Energy, Inc. - - - - (22,462) -
Energy Realty, Inc. - - - - (1,646) -
Energy Financial Group, Inc. - - - - (7,469) -
IEI Synfuels, Inc. - 5,223 - - (5,223) -
IEI Financial Services, LLC - 1,531 - - (1,531) -
Indiana Energy Services, Inc. - - - - (1) -
- 6,754 - - (346,485) -
INVESTMENTS IN UNCONSOLIDATED
AFFILIATES - 1,604 5,200 - - 33,336
UTILITY PLANT:
Original cost - - - - - 946,602
Less - Accum. depr. and amort. - - - - - 376,133
- - - - - 570,469
NONUTILITY PLANT:
Original cost - - - 196 - 58,456
Less - Accum. depr. and amort. - - - 7 - 14,219
- - - 189 - 44,237
DEFERRED CHARGES AND
OTHER ASSETS:
Unamortized debt discount and exp. - - - - - 12,653
Regulatory income tax asset - - - - - 1,778
Other - - 86 1,068 - 4,225
- 86 1,068 - 18,656
$ 1 $ 8,073 $ 5,233 $ 1,610 $(366,933) $761,614
</TABLE>
<TABLE>
INDIANA ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
(Thousands - Unaudited)
Indiana IEI IEI IEI IGC Energy
LIABILITIES AND Indiana Gas Co., Services, Capital Invest., Energy, Realty,
SHAREHOLDERS' EQUITY Energy, Inc. Inc. LLC Corp. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C> <C>
CURRENT LIABILITIES:
Maturities and sinking fund
requirements of long-term debt $ - $ 10,000 $ - $ - $ - $ - $ 174
Notes payable - 48,675 10,565 12,080 - - 1,500
Accounts payable (124) 30,589 402 - (6) 247 -
Accounts payable to affiliated cos. 495 - 926 21 42 651 13
Interest payable to affiliated cos. - - 202 73 - - 10
Refundable gas costs - 14,343 - - - - -
Customer deposits and advance payments - 22,416 - - - - -
Accrued taxes - 9,848 220 (43) 2 - 100
Accrued interest - 4,746 - 238 - - -
Other current liabilities 321 14,871 659 - 163 5,070 617
692 155,488 12,974 12,369 201 5,968 2,414
DEFERRED CREDITS AND
OTHER LIABILITIES:
Deferred income taxes - 60,580 - - - - -
Accrued postretirement benefits
other than pensions 90 25,884 169 - 7 - -
Unamortized investment tax credit - 9,082 - - - - -
Other 580 1,854 45 - 78 (23) 241
670 97,400 214 - 85 (23) 241
CAPITALIZATION:
Long-term debt - 181,964 - - - - 1,422
Common stock 142,295 142,995 - 1 1 1 1
Paid-in capital - - 32,372 - 4,179 4,363 -
Unearned comp. - restr. stock grants (1,377) - - - - - -
Retained earnings 168,372 102,885 1,203 5 24,512 18,098 1,645
Total common shareholders' equity 309,290 245,880 33,575 6 28,692 22,462 1,646
309,290 427,844 33,575 6 28,692 22,462 3,068
$ 310,652 $680,732 $ 46,763 $ 12,375 $ 28,978 $ 28,407 $ 5,723
Indiana Energy IEI IEI Adjustments
LIABILITIES AND Energy Financial Synfuels, Financial Debit
SHAREHOLDERS' EQUITY Svcs, Inc. Group,Inc. Inc. Svcs,LLC (Credit) Consolidated
CURRENT LIABILITIES:
Maturities and sinking fund
requirements of long-term debt $ - $ - $ - $ - $ - $ 10,174
Notes payable - 191 - - 16,536 56,475
Accounts payable - - - 1 1,432 29,677
Accounts payable to affiliated cos. - 8 10 29 2,195 -
Interest payable to affiliated cos. - - - - 285 -
Refundable gas costs - - - - - 14,343
Customer deposits and advance payments - - - - - 22,416
Accrued taxes - - - - - 10,127
Accrued interest - - - - - 4,984
Other current liabilities - 420 - 27 (625) 22,773
- 619 10 57 19,823 170,969
DEFERRED CREDITS AND
OTHER LIABILITIES:
Deferred income taxes - - - - - 60,580
Accrued postretirement benefits
other than pensions - - - - - 26,150
Unamortized investment tax credit - - - - - 9,082
Other - - - 7 625 2,157
- - - 7 625 97,969
CAPITALIZATION:
Long-term debt - - - - - 183,386
Common stock 1 1 1 - 143,002 142,295
Paid-in capital - 7,526 5,295 1,499 55,234 -
Unearned comp. - restr. stock grants - - - - - (1,377)
Retained earnings - (73) (73) 47 148,249 168,372
Total common shareholders' equity 1 7,454 5,223 1,546 346,485 309,290
1 7,454 5,223 1,546 346,485 492,676
$ 1 $ 8,073 $ 5,233 $ 1,610 $ 366,933 $761,614
</TABLE>
<TABLE>
INDIANA ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME
TWELVE MONTHS ENDED DECEMBER 31, 1998
(Thousands - Unaudited)
Indiana IEI IEI IEI IGC Energy
Indiana Gas Co., Services, Capital Invest., Energy, Realty,
Energy, Inc. Inc. LLC Corp. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Utility $ - $420,459 $ - $ - $ - $ - $ -
Other - - 26,294 - - 276 526
- 420,459 26,294 - - 276 526
OPERATING EXPENSES:
Cost of gas - 231,889 - - - (1,116) -
Other operating 41 85,871 15,413 - 1,487 12 252
Depreciation and amortization - 32,758 5,832 - 13 - 54
Taxes other than income taxes 61 13,882 36 - - 92 -
102 364,400 21,281 - 1,500 (1,012) 306
OPERATING INCOME (102) 56,059 5,013 - (1,500) 1,288 220
OTHER INCOME:
Equity in earnings of unconsol.
affiliates - - - - - 7,618 (689)
Equity in earnings of consolidated
subs. 38,101 - - 6,798 311 -
Other - net 44 626 588 558 461 (21) 883
38,145 626 588 558 7,259 7,908 194
INCOME BEFORE INTEREST
AND INCOME TAXES 38,043 56,685 5,601 558 5,759 9,196 414
INTEREST EXPENSE - 15,802 421 550 - - 231
INCOME BEFORE INCOME TAXES 38,043 40,883 5,180 8 5,759 9,196 183
INCOME TAXES 1,919 14,058 - 3 (393) 3,365 (857)
NET INCOME $ 36,124 $ 26,825 $ 5,180 $ 5 $ 6,152 $ 5,831 $ 1,040
Indiana Energy IEI IEI Adjustments
Energy Financial Synfuels, Financial Debit
Svcs, Inc. Group,Inc. Inc. Svcs,LLC (Credit) Consolidated
OPERATING REVENUES:
Utility $ - $ - $ - $ - $ - $420,459
Other - - - 628 26,836 888
- - - 628 26,836 421,347
OPERATING EXPENSES:
Cost of gas (401) - - - - 230,372
Other operating - 44 9 609 (26,836) 76,902
Depreciation and amortization - - - 7 - 38,664
Taxes other than income taxes - 1 - - - 14,072
(401) 45 9 616 (26,836) 360,010
OPERATING INCOME 401 (45) (9) 12 - 61,337
OTHER INCOME:
Equity in earnings of unconsol.
affiliates - - (241) - - 6,688
Equity in earnings of consolidated
subs. - (27) - - 45,183 -
Other - net - - 1 35 706 2,469
- (27) (240) 35 45,889 9,157
INCOME BEFORE INTEREST
AND INCOME TAXES 401 (72) (249) 47 45,889 70,494
INTEREST EXPENSE - 1 - - 796 16,209
INCOME BEFORE INCOME TAXES 401 (73) (249) 47 45,093 54,285
INCOME TAXES 152 - (176) - (90) 18,161
NET INCOME $ 249 $ (73) $ (73) $ 47 $ 45,183 $ 36,124
</TABLE>
<TABLE>
INDIANA ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1998
(Thousands - Unaudited)
Indiana IEI IEI IEI IGC Energy
Indiana Gas Co., Services, Capital Invest., Energy, Realty,
Energy, Inc. Inc. LLC Corp. Inc. Inc. Inc.
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE DECEMBER 31, 1997 $ 159,420 $103,411 $ 880 $ - $ 18,360 $ 17,689 $ 605
ADD:
Net Income 36,124 26,825 5,180 5 6,152 5,831 1,040
195,544 130,236 6,060 5 24,512 23,520 1,645
DEDUCT:
Dividends 27,140 27,351 4,857 - - 5,422 -
Stock Issuance Expense 32 - - - - - -
27,172 27,351 4,857 - - 5,422 -
BALANCE DECEMBER 31, 1998 $ 168,372 $102,885 $ 1,203 $ 5 $ 24,512 $ 18,098 $ 1,645
Indiana Energy IEI IEI Adjustments
Energy Financial Synfuels, Financial Debit
Svcs, Inc. Group,Inc. Inc. Svcs,LLC (Credit) Consolidated
BALANCE DECEMBER 31, 1997 $ 4,590 $ - $ - $ - $145,535 $159,420
ADD:
Net Income 249 (73) (73) 47 45,183 36,124
4,839 (73) (73) 47 190,718 195,544
DEDUCT:
Dividends 4,839 - - - (42,469) 27,140
Stock Issuance Expense - - - - - 32
4,839 - - - (42,469) 27,172
BALANCE DECEMBER 31, 1998 $ - $ (73) $ (73) $ 47 $148,249 $168,372
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND>
This schedule contains summary financial information extracted from Indiana
Energy, Inc.'s consolidating financial statements as of December 31, 1998, and
for the twelve months then ended and is qualified in its entirety by reference
to such statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 761,614
<TOTAL-OPERATING-REVENUES> 421,347
<NET-INCOME> 36,124
</TABLE>
