NiSource Inc. (NYSE: NI) subsidiary Primary Energy, Inc. has been chosen to receive a Governor's Award for Excellence in Pollution Prevention. The Indiana Department of Environmental Management (IDEM) made presentations to the award recipients during ceremonies in Indianapolis, Ind., Sept.20.

Primary Energy, which has gained attention for designing and constructing large "inside-the-fence" industrial cogeneration facilities throughout the region, was one of nine recipients to be selected for the awards from among 23 nominations.

IDEM said it selected Primary Energy for developing a waste heat utilization process that replaced a 134-megawatt coal burning power plant at Cokenergy at Ispat Inland in East Chicago, Ind., without the need to burn any additional fuels.

"We are honored that the state recognizes the environmental benefits of the projects that Primary Energy has developed over the past several years," said Primary Energy President Joe Turner. "We look forward to duplicating the success of these projects with other customers, which will further contribute environmental gains to our region and the state."

Four Primary Energy projects were included in the nomination: Cokenergy, Inc. at Ispat Inland Inc. in East Chicago, Ind.; Portside Energy Corp. at National Steel Corp. in Portage, Ind.; Lakeside Energy Corp. at U.S. Steel's Gary Works in Gary, Ind.; and North Lake Energy Corp. at Ispat Inland. In making its presentation, IDEM Commissioner Lori Kaplan cited the following environmental improvements as a result of several Primary Energy projects: reduction of sulfur dioxide emissions by over 6,600 tons a year; nitrogen oxide reductions of over 5,700 tons annually; and reductions of carbon dioxide emission of over 1.8 million tons each year.

"Previously considered waste heat is now being directed to a series of boiler-generator combinations to produce electricity for the steel mill," Kaplan said of the Cokenergy Inc. plant at Ispat Inland during the presentation.

"We establish environmental goals during the design phase of our cogeneration projects," said Kenneth P. Foley, vice president of Production & Maintenance at Primary Energy. "We are proud of the fact that we have been able to achieve all of our operational goals without making concessions on the environmental targets."

Primary Energy, Inc., a wholly owned subsidiary of NiSource Inc., invests in and manages projects that optimize energy productivity, while reducing operating costs for large, energy-intensive industrial and commercial complexes. Primary Energy specializes in on-site electric and steam-generating facilities and acts with strong customer focus to assure its customers' objectives are being met. Target markets include the steel, refining, chemical, food products and pulp and paper industries in North America. More information is available via the Internet at www.primaryenergy.com.

NiSource Inc. is a holding company whose primary business is the distribution of electricity, natural gas and water in the Midwest and Northeast United States. The company also markets utility services and customer-focused resource solutions along a corridor stretching from Texas to Chicago to Maine. Further information may be accessed on the Internet at www.nisource.com.

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