<TABLE>
<S> <C>
Pricing Supplement No. 009 Filing under Rule 424(b)(2)
Dated March 26, 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: $10,000,000 Interest Payment Date(s): March 15, and
September 15
Trade Date: March 25, 1997
Specified Currency: U.S. Dollars
Original Issue Date: March 31, 1997
Selling Agent's Commission: $75,000
Interest Rate: 7.92%
Net Proceeds to the Company: $9,925,000
Stated Maturity Date: April 03, 2017
Form : XX Book Entry ___ Certified
</TABLE>
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, $34,000,000 Medium-Term
Notes have been sold. Concurrently herewith, the company is also
selling (1) $2,000,000 aggregate principal amount of Medium-Term Notes
with a Stated Maturity Date of April 3, 2017 and bearing an interest
rate of 7.82% 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%; (2) $
10,000,000 aggregate principal amount of Medium-Term Notes with a
Stated maturity Date of April 3, 2017 and bearing an interest rate of
7.82% 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%; (3) $50,000,000
aggregate principal amount of Medium-Term Notes with a Stated Maturity
Date of April 1, 2004 and bearing an interest rate of 7.39% at the
initial price to the public equal to 100% of par, less a fee to
Goldman, Sachs & Co., as Agent, equal to 0.6%; (4) $2,000,000
aggregate principal amount of Medium-Term Notes with a Stated Maturity
Date of April 2, 2007 and bearing an interest rate of 7.45% 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%; (5) $6,000,000
aggregate principal amount of Medium-Term Notes with a Stated Maturity
Date of April 1, 2022 and bearing an interest rate of 7.99% 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%; (6) $8,000,000
aggregate principal amount of Medium-Term Notes with a Stated Maturity
Date of April 1, 2022 and bearing an interest rate of 7.99% at the<PAGE>
initial price to the public equal to 100% of par, less a fee to
Merrill Lynch & Co., as Agent, equal to 0.75%; and (7) $6,000,000
aggregate principal amount of Medium-Term Notes with a Stated Maturity
Date of April 1, 2022 and bearing an interest rate of 7.99% 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<PAGE>
