August 17, 1998


Securities and Exchange Commission
Operations Center
6432 General Green Way
Alexandria, VA  22312-2413

Gentlemen:

We are transmitting herewith Indiana Energy, Inc.'s
Current Report on Form 8-K.

Very truly yours,



/s/ Douglas S. Schmidt
Douglas S. Schmidt


                  SECURITIES AND EXCHANGE COMMISSION
                                   
                       Washington, D. C.  20549



                                   
                                   
                               FORM 8-K
                                   

                            CURRENT REPORT
                                   
                                   
                                   
                Pursuant to Section 13 or 15(d) of the
                    Securities Exchange Act of 1934





Date of Report (Date of earliest event reported):   August 17, 1998




                         INDIANA ENERGY,INC.
         (Exact name of registrant as specified in its charter)




        INDIANA                     1-9091             35-1654378
(State or other jurisdiction  (Commission File No.)    (IRS Employer
 of incorporation)                                      Identification
                                                        Number)





       1630 North Meridian Street, Indianapolis, Indiana  46202
            (Address of principal executive offices)   (Zip Code)





Registrant's telephone number, including area code:   (317) 926-3351

Item 5.    Other Events

See the following press release dated August 17, 1998, announcing the
formation of Reliant Services, LLC.

Cinergy, Indiana Energy Form New Company

INDIANAPOLIS-IGC Energy, Inc., a subsidiary of Indiana Energy, Inc.
and Cinergy Supply Network Inc., a subsidiary of Cinergy Corp., have
formed a joint venture company called Reliant Services LLC, to perform
underground facilities locating and construction services.

Cinergy Supply Network and IGC Energy will each own 50 percent of the
new company.  Based in the Indianapolis area, Reliant will focus
initially on serving electric, gas, telephone, cable and water
companies in Indiana, Ohio and Kentucky.

"This is an opportunity for Indiana Energy and Cinergy to expand our
non-regulated operations into familiar areas of service," said Niel
Ellerbrook, president of Indiana Energy.  "Reliant will take advantage
of the cost savings pressures brought about by utility deregulation
and by the recent passage of federal "one call" legislation by
offering services that are growing in demand nationwide."

Larry Thomas, president of Cinergy Supply Network and vice-president
of Cinergy, said, "Reliant is a way not only to grow our business, but
also to help control facility locating costs for utility customers.
Cinergy and Indiana Energy's service territories often overlap, so
this venture makes sense.  We expect to be a very competitive and
reliable service provider."

Cinergy Corp., headquartered in Cincinnati, is the parent company of
The Cincinnati Gas & Electric Co. and PSI Energy Inc., which serve 1.4
million electric customers and more than 455,000 gas customers in
southwest Ohio, Indiana and Northern Kentucky.  Indiana Energy, with
headquarters in Indianapolis, is the parent company of Indiana Gas, a
gas distribution company serving 486,000 customers in central and
southern Indiana.


                              SIGNATURES

   Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.


                                 INDIANA ENERGY, INC.
                                    Registrant




Dated August 17, 1998    /s/Niel C. Ellerbrook
                         Niel C. Ellerbrook
                         President and Chief Operating Officer



Dated August 17, 1998    /s/Jerome A. Benkert
                         Jerome A. Benkert
                         Vice President and Controller