<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, 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>                                                  JUL-01-1998
<PERIOD-END>                                                    SEP-30-1998
<BOOK-VALUE>                                                       PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                                         3,648,562
<OTHER-PROPERTY-AND-INVEST>                                         266,343
<TOTAL-CURRENT-ASSETS>                                              482,184
<TOTAL-DEFERRED-CHARGES>                                            172,543
<OTHER-ASSETS>                                                      267,598
<TOTAL-ASSETS>                                                    4,837,230
<COMMON>                                                            332,702
<CAPITAL-SURPLUS-PAID-IN>                                            86,630
<RETAINED-EARNINGS>                                                713,386
<TOTAL-COMMON-STOCKHOLDERS-EQ>                                    1,134,718
<PREFERRED-MANDATORY>                                                56,991
<PREFERRED>                                                          85,614
<LONG-TERM-DEBT-NET>                                               484,600
<SHORT-TERM-NOTES>                                                  211,154
<LONG-TERM-NOTES-PAYABLE>                                         1,669,850
<COMMERCIAL-PAPER-OBLIGATIONS>                                      151,900
<LONG-TERM-DEBT-CURRENT-PORT>                                        20,718
<PREFERRED-STOCK-CURRENT>                                             1,828
<CAPITAL-LEASE-OBLIGATIONS>                                               0
<LEASES-CURRENT>                                                          0
<OTHER-ITEMS-CAPITAL-AND-LIAB>                                    2,752,969
<TOT-CAPITALIZATION-AND-LIAB>                                     4,900,492
<GROSS-OPERATING-REVENUE>                                         2,986,633
<INCOME-TAX-EXPENSE>                                                 99,719
<OTHER-OPERATING-EXPENSES>                                        2,571,919
<TOTAL-OPERATING-EXPENSES>                                        2,571,919
<OPERATING-INCOME-LOSS>                                             414,714
<OTHER-INCOME-NET>                                                    8,680
<INCOME-BEFORE-INTEREST-EXPEN>                                      423,394
<TOTAL-INTEREST-EXPENSE>                                             35,199
<NET-INCOME>                                                        288,476
<PREFERRED-STOCK-DIVIDENDS>                                               0
<EARNINGS-AVAILABLE-FOR-COMM>                                       288,476
<COMMON-STOCK-DIVIDENDS>                                             28,244
<TOTAL-INTEREST-ON-BONDS>                                                 0
<CASH-FLOW-OPERATIONS>                                               80,456
<EPS-PRIMARY>                                                          1.54
 <EPS-DILUTED>                                                         1.53
        

</TABLE>