Pricing Supplement No. 012 Filing under Rule 424(b)(2)
Dated March 27, 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.
____________________
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Principal Amount: $15,000,000 Interest Payment Date(s): March 15, and
September 15
Trade Date: March 26, 1997
Specified Currency: U.S. Dollars
Original Issue Date: April 1, 1997
Selling Agent s Commission: $93,750
Interest Rate: 7.5 %
Net Proceeds to the Company: $14,906,250
Stated Maturity Date: April 02, 2007
Form : XX Book Entry ___ Certified
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The Medium-Term Note described in this Pricing Supplement is being
sold through Morgan Stanley & Co. Incorporated, as Agent.
Prior to the date of this Pricing Supplement, $128,000,000 Medium-Term
Notes have been sold. Concurrently herewith, the company is also
selling (1) $10,000,000 aggregate principal amount of Medium-Term
Notes with a Stated Maturity Date of April 2, 2007 and bearing an
interest rate of 7.49% at the initial price to the public equal to
100% of par, less a fee to Morgan Stanley & Co. Incorporated, as
Agent, equal to 0.625%; (2) $ 30,000,000 aggregate principal amount of
Medium-Term Notes with a Stated maturity Date of April 2, 2004 and
bearing an interest rate of 7.4% at the initial price to the public
equal to 100% of par, less a fee to Merrill Lynch & Co., as Agent,
equal to 0.6%; (3) $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 7.93% 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 (4) $1,000,000 aggregate principal amount of Medium-Term
Notes with a Stated Maturity Date of April 3, 2017 and bearing an
interest rate of 7.94% 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%.
Goldman, Sachs & Co.<PAGE>
Merrill Lynch & Co.
Morgan Stanley & Co.
Incorporated<PAGE>
