Pricing Supplement No. 1                 Filing Under Rule 424(b)(5)
          Dated:  June 5, 1995                     Registration No. 33-54820
          (To Prospectus, dated April 5, 1995,
          as supplemented by Prospectus 
          Supplement, dated April 5, 1995)

                                         $55,000,000
                                  Indiana Gas Company, Inc.
                                 Medium-Term Notes, Series E

                                                                             
              Principal Amount:       $5,000,000        Redeemable:  Yes __ No _X_
              Original Issue Date:    June 9, 1995         Initial Redemption Date:     N/A
              Interest Rate:          7.15%                Redemption Limitation Date:  N/A
              Overdue Interest Rate:  N/A                  Initial Redemption Price:    N/A
              Stated Maturity Date:   March 15, 2015       Reduction Percentage:        N/A
              Issue Price:            100%              Regular Record Dates:           A/S
              Agents' Commission:     .75%              Form:
              Proceeds to Company:    99.25%               Book Entry (DTC)             _X_
              Interest Payment Dates: A/S                  Certificated                 ____

                        Repayable at the Option of the Holder: Yes__ No _X_
                        Optional Repayment Dates:  _____N/A_______________
                        Price to be Repaid (if other than unpaid principal 
                        amount plus accrued interest): ___N/A________________

            

            Redemption prices (if any):  The Initial Redemption Price shall
          be __N/A__% of the principal amount of such Notes to be redeemed







          and shall decline on each anniversary of the Initial Redemption
          Date by a Reduction Percentage of __N/A__% of the principal
          amount to be redeemed until the redemption price shall be 100% of
          such principal amount.

          Additional terms:  N/A



               Prior to the date of this Pricing Supplement, the Company
          has sold $-0- aggregate principal amount of the Medium-Term
          Notes, Series E.

               N/A as used herein means "Not Applicable."  A/S as used
          herein means "As stated in the Prospectus Supplement referred to
          above."

               THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY
          THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
          COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION  OR 
          ANY  STATE  SECURITIES  COMMISSION  PASSED UPON THE ACCURACY OR
          ADEQUACY  OF  THIS  PRICING SUPPLEMENT OR THE PROSPECTUS TO WHICH
          IT RELATES. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
          OFFENSE.


          (X )  Goldman, Sachs & Co.    (   )  Merrill Lynch & Co.