<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of NIPSCO Industries, Inc. for three months ended
March 31, 1997, 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>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<BOOK-VALUE>                                  PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                    3,621,142
<OTHER-PROPERTY-AND-INVEST>                    270,635
<TOTAL-CURRENT-ASSETS>                         592,320
<TOTAL-DEFERRED-CHARGES>                       104,164
<OTHER-ASSETS>                                 322,312
<TOTAL-ASSETS>                               4,910,573
<COMMON>                                       574,950
<CAPITAL-SURPLUS-PAID-IN>                       86,767
<RETAINED-EARNINGS>                            635,399 
<TOTAL-COMMON-STOCKHOLDERS-EQ>               1,297,116
<PREFERRED-MANDATORY>                           61,246
<PREFERRED>                                     85,622
<LONG-TERM-DEBT-NET>                           496,698
<SHORT-TERM-NOTES>                             102,907
<LONG-TERM-NOTES-PAYABLE>                      875,388
<COMMERCIAL-PAPER-OBLIGATIONS>                 170,900
<LONG-TERM-DEBT-CURRENT-PORT>                  154,643
<PREFERRED-STOCK-CURRENT>                        1,828
<CAPITAL-LEASE-OBLIGATIONS>                          0
<LEASES-CURRENT>                                     0
<OTHER-ITEMS-CAPITAL-AND-LIAB>               1,664,225
<TOT-CAPITALIZATION-AND-LIAB>                4,910,573
<GROSS-OPERATING-REVENUE>                      579,224
<INCOME-TAX-EXPENSE>                            38,268
<OTHER-OPERATING-EXPENSES>                     450,374
<TOTAL-OPERATING-EXPENSES>                     488,642
<OPERATING-INCOME-LOSS>                         90,582
<OTHER-INCOME-NET>                               9,304
<INCOME-BEFORE-INTEREST-EXPEN>                  99,886
<TOTAL-INTEREST-EXPENSE>                        29,048
<NET-INCOME>                                    70,838
<PREFERRED-STOCK-DIVIDENDS>                          0
<EARNINGS-AVAILABLE-FOR-COMM>                   70,838
<COMMON-STOCK-DIVIDENDS>                        26,273
<TOTAL-INTEREST-ON-BONDS>                            0
<CASH-FLOW-OPERATIONS>                         305,118
<EPS-PRIMARY>                                     1.18
<EPS-DILUTED>                                     1.18