<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of NIPSCO Industries, Inc. for three months ended
September 30, 1996, and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JUL-01-1996
<PERIOD-END>                               SEP-30-1996
<BOOK-VALUE>                                  PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                    3,167,808
<OTHER-PROPERTY-AND-INVEST>                    244,314
<TOTAL-CURRENT-ASSETS>                         414,062
<TOTAL-DEFERRED-CHARGES>                        72,220
<OTHER-ASSETS>                                 213,527
<TOTAL-ASSETS>                               4,111,931
<COMMON>                                       518,123
<CAPITAL-SURPLUS-PAID-IN>                       29,776
<RETAINED-EARNINGS>                            565,043
<TOTAL-COMMON-STOCKHOLDERS-EQ>               1,112,942
<PREFERRED-MANDATORY>                           61,801
<PREFERRED>                                     81,129
<LONG-TERM-DEBT-NET>                           403,869
<SHORT-TERM-NOTES>                             235,026
<LONG-TERM-NOTES-PAYABLE>                      786,815
<COMMERCIAL-PAPER-OBLIGATIONS>                 180,000
<LONG-TERM-DEBT-CURRENT-PORT>                   77,634
<PREFERRED-STOCK-CURRENT>                        1,828
<CAPITAL-LEASE-OBLIGATIONS>                          0
<LEASES-CURRENT>                                     0
<OTHER-ITEMS-CAPITAL-AND-LIAB>               1,170,887
<TOT-CAPITALIZATION-AND-LIAB>                4,111,931
<GROSS-OPERATING-REVENUE>                      356,274
<INCOME-TAX-EXPENSE>                            17,961
<OTHER-OPERATING-EXPENSES>                     281,414
<TOTAL-OPERATING-EXPENSES>                     299,375
<OPERATING-INCOME-LOSS>                         56,899
<OTHER-INCOME-NET>                               6,741
<INCOME-BEFORE-INTEREST-EXPEN>                  63,640
<TOTAL-INTEREST-EXPENSE>                        29,230
<NET-INCOME>                                    34,410
<PREFERRED-STOCK-DIVIDENDS>                          0
<EARNINGS-AVAILABLE-FOR-COMM>                   34,410
<COMMON-STOCK-DIVIDENDS>                        25,561
<TOTAL-INTEREST-ON-BONDS>                            0
<CASH-FLOW-OPERATIONS>                          57,105
<EPS-PRIMARY>                                     0.56
<EPS-DILUTED>                                     0.56