Pricing Supplement No. 026 Filing under Rule 424(b)(2)
Dated May 5, 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: $25,000,000
Trade Date: May 2, 1997
Original Issue Date: May 7, 1997
Interest Rate: 7.50%
Stated Maturity Date: May 8, 2006
Form : XX Book Entry ___ Certified
Interest Payment Date(s): March 15, and September 15
Specified Currency: U.S. Dollars
Selling Agent s Commission: $150,000
Net Proceeds to the Company: $24,850,000
The Medium-Term Note described in this Pricing Supplement is being sold
through Merrill Lynch Co., as Agent.
Prior to the date of this Pricing Supplement, $275,000,000 Medium-Term Notes
have been sold.
Goldman, Sachs & Co.
Merrill Lynch & Co.
Morgan Stanley & Co. Incorporated
