<TABLE> <S> <C>

<ARTICLE> UT
<LEGEND>
This  schedule  contains  summary  financial   information  extracted  from  the
financial statements of NIPSCO Industries, Inc. for three months ended September
30, 1997,  and is  qualified  in its  entirety by  reference  to such  financial
statements.
</LEGEND>
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                                               DEC-31-1996
<PERIOD-START>                                                  JUL-01-1997
<PERIOD-END>                                                    SEP-30-1997
<BOOK-VALUE>                                                       PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                                         3,607,264
<OTHER-PROPERTY-AND-INVEST>                                         231,035
<TOTAL-CURRENT-ASSETS>                                              523,873
<TOTAL-DEFERRED-CHARGES>                                            130,358
<OTHER-ASSETS>                                                      303,383
<TOTAL-ASSETS>                                                    4,795,913
<COMMON>                                                            534,782
<CAPITAL-SURPLUS-PAID-IN>                                            90,499
<RETAINED-EARNINGS>                                                 641,424
<TOTAL-COMMON-STOCKHOLDERS-EQ>                                    1,266,705
<PREFERRED-MANDATORY>                                                59,396
<PREFERRED>                                                          85,620
<LONG-TERM-DEBT-NET>                                              1,113,260
<SHORT-TERM-NOTES>                                                   87,709
<LONG-TERM-NOTES-PAYABLE>                                           495,460
<COMMERCIAL-PAPER-OBLIGATIONS>                                       77,500
<LONG-TERM-DEBT-CURRENT-PORT>                                       111,722
<PREFERRED-STOCK-CURRENT>                                             1,828
<CAPITAL-LEASE-OBLIGATIONS>                                               0
<LEASES-CURRENT>                                                          0
<OTHER-ITEMS-CAPITAL-AND-LIAB>                                    1,496,713
<TOT-CAPITALIZATION-AND-LIAB>                                     4,795,913
<GROSS-OPERATING-REVENUE>                                           596,315
<INCOME-TAX-EXPENSE>                                                 20,208
<OTHER-OPERATING-EXPENSES>                                          509,480
<TOTAL-OPERATING-EXPENSES>                                          509,480
<OPERATING-INCOME-LOSS>                                              86,835
<OTHER-INCOME-NET>                                                    3,326
<INCOME-BEFORE-INTEREST-EXPEN>                                       90,161
<TOTAL-INTEREST-EXPENSE>                                             34,084
<NET-INCOME>                                                         35,869
<PREFERRED-STOCK-DIVIDENDS>                                               0
<EARNINGS-AVAILABLE-FOR-COMM>                                        35,869
<COMMON-STOCK-DIVIDENDS>                                             28,244
<TOTAL-INTEREST-ON-BONDS>                                                 0
<CASH-FLOW-OPERATIONS>                                              129,908
<EPS-PRIMARY>                                                          0.57
<EPS-DILUTED>                                                          0.57
        

</TABLE>