Pricing Supplement No. 002 Filing under Rule 424(b)(2)
Dated March 24, 1997 Registration No. 333-22347
(To Prospectus dated March 18, 1997, supplemented by Prospectus
Supplement dated March 21, 1997)
$300,000,000
NIPSCO CAPITAL MARKETS, INC.
Medium-Term Notes
Due Nine Months or More From Date of Issue
____________________
Entitled to the benefit of a Support Agreement
Providing for the Payment of Principal and Interest by
NIPSCO Industries, Inc.
____________________
Principal Amount: $30,000,000 Interest Payment March 15 and
Date(s): September 15
Trade Date: March 24, 1997 Specified Currency: U.S. Dollars
Original Issue Selling Agent's
Date: March 27, 1997 Commission: $225,000
Interest Rate: 7.86% Net Proceeds
to the Company: $29,775,000
Stated Maturity
Date: March 27, 2017
Form: _XX_ Book Entry ___ Certified
The $30,000,000 principal amount of Medium-Term Notes described in
this Pricing Supplement is being sold in increments of $10,000,000,
respectively by: (a) Goldman, Sachs & Co., (b) Merrill Lynch & Co.
and (c) Morgan Stanley & Co. Incorporated, each as Agent.
Prior to the date of this Pricing Supplement, no Medium-Term Notes of
the Company have been sold. Concurrently herewith, the Company is
also selling (a) $2,000,000 aggregate principal amount of Medium-Term
Notes with a Stated Maturity Date of March 27, 2017 and bearing an
interest rate of 7.85% 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%, and (b) $2,000,000 aggregate principal amount of Medium-Term
Notes with a Stated Maturity Date of March 27, 2007 and bearing an
interest rate of 7.38% 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%.
Goldman, Sachs & Co.
Merrill Lynch & Co.
Morgan Stanley & Co.
Incorporated<PAGE>