WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<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 March 31,  1998,  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-31-1997
<PERIOD-START>                                                  JAN-01-1998
<PERIOD-END>                                                    MAR-31-1998
<BOOK-VALUE>                                                       PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                                         3,646,973
<OTHER-PROPERTY-AND-INVEST>                                         244,213
<TOTAL-CURRENT-ASSETS>                                              587,844
<TOTAL-DEFERRED-CHARGES>                                            145,952
<OTHER-ASSETS>                                                      275,510
<TOTAL-ASSETS>                                                    4,900,492
<COMMON>                                                            486,921
<CAPITAL-SURPLUS-PAID-IN>                                            87,719
<RETAINED-EARNINGS>                                                 701,890
<TOTAL-COMMON-STOCKHOLDERS-EQ>                                    1,276,530
<PREFERRED-MANDATORY>                                                58,841
<PREFERRED>                                                          85,619
<LONG-TERM-DEBT-NET>                                                485,100
<SHORT-TERM-NOTES>                                                   94,302
<COMMERCIAL-PAPER-OBLIGATIONS>                                       48,500
<LONG-TERM-DEBT-CURRENT-PORT>                                        55,729
<PREFERRED-STOCK-CURRENT>                                             1,828
<CAPITAL-LEASE-OBLIGATIONS>                                               0
<LEASES-CURRENT>                                                          0
<OTHER-ITEMS-CAPITAL-AND-LIAB>                                    1,608,382
<TOT-CAPITALIZATION-AND-LIAB>                                     4,900,492
<GROSS-OPERATING-REVENUE>                                           779,344
<INCOME-TAX-EXPENSE>                                                 32,343
<OTHER-OPERATING-EXPENSES>                                          662,230
<TOTAL-OPERATING-EXPENSES>                                          662,230
<OPERATING-INCOME-LOSS>                                             117,114
<OTHER-INCOME-NET>                                                    8,448
<INCOME-BEFORE-INTEREST-EXPEN>                                      125,562
<TOTAL-INTEREST-EXPENSE>                                             32,497
<NET-INCOME>                                                         60,722
<PREFERRED-STOCK-DIVIDENDS>                                               0
<EARNINGS-AVAILABLE-FOR-COMM>                                        60,722
<COMMON-STOCK-DIVIDENDS>                                             29,929
<TOTAL-INTEREST-ON-BONDS>                                                 0
<CASH-FLOW-OPERATIONS>                                              189,563
<EPS-PRIMARY>                                                          0.49
<EPS-DILUTED>                                                          0.48
        

</TABLE>