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                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                                  FORM 10-K/A
                                Amendment No. 1
      [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                             EXCHANGE ACT OF 1934
                  For the fiscal year ended December 31, 1998
                                      OR
    [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                             EXCHANGE ACT OF 1934
              For the transition period from         to
                         Commission file number 1-9776

                            NIPSCO Industries, Inc.
            (Exact name of registrant as specified in its charter)

                Indiana                              35-1719974
    (State or other jurisdiction of     (I.R.S. Employer Identification No.)
    incorporation or organization)
                                                       
         801 East 86th Avenue                           46410 
         Merrillville, Indiana                        (Zip Code)
    (Address of principal executive
               offices)

        Registrant's telephone number, including area code 219-853-5200
Securities registered pursuant to Section 12(b) of the Act:

                                                Name of each exchange
       Title of each class                         on which registered
       -------------------                       ---------------------
             Common Shares                  New York, Chicago and Pacific
    Preferred Share Purchase Rights         New York, Chicago and Pacific
  Obligations Pursuant to Support                     New York
   Agreements with NIPSCO Capital
   Markets, Inc.

Corporate Premium Income Equity Securities            New York
Securities registered pursuant to Section 12(g) of the Act:
                                     None

  Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days. Yes   X   No
                                       ----     ----    
  Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K/A or any
amendment to this Form 10-K/A.
  As of February 26, 1999, 117,565,614 Common Shares (not including 30,218,604
Common Shares held in treasury), were outstanding. The aggregate market value
of the Common Shares (based upon the February 26, 1999 closing price of
$25.938 on the New York Stock Exchange) held by nonaffiliates was
approximately $3,023,748,754.88. This information reflects the two-for-one
stock split which was paid February 20, 1998, to shareholders of record at the
close of business on January 30, 1998.
 
                      DOCUMENTS INCORPORATED BY REFERENCE
  Portions of the NIPSCO Industries, Inc. 1998 Annual Report to Shareholders
are incorporated by reference into Parts I, II and IV of this report.

  Portions of the Notice of Annual Meeting and Proxy Statement dated March 15,
1999 for the Annual Meeting to be held April 14, 1999 are incorporated by
reference into Part III of this report.
 
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   The Registrant is filing this Form 10-K/A (Amendment No. 1) for the sole
purpose of amending Exhibit 23 to its Annual Report on Form 10-K for the fiscal
year ended December 31, 1998. The amended Exhibit 23 includes additional
Registration Statements on Form S-8 into which the consent of independent
public accountants will be incorporated and omits certain Registration
Statements on Form S-4 and Form S-3 from such consent.
 
                                   SIGNATURES
 
   Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to be signed on its behalf by the
undersigned, hereunto duly authorized.
 
                                          NIPSCO INDUSTRIES, INC.
                                          (Registrant)
 
Date       March 30, 1999                 By /s/ Stephen P. Adik
  _________________________________          __________________________________
                                             Stephen P. Adik, Its Senior
                                             Executive Vice President,Chief
                                             Financial Officer and Treasurer