MERRILLVILLE, Ind. (April 28, 2000) - NiSource Inc. (NYSE: NI) subsidiary EnergyUSA today announced plans to install the first full-scale test unit of its residential fuel cell energy package in a new housing development in Chesterton, Ind. Home construction is scheduled to begin this summer. The "heart" of the home’s energy-generating system will be a fuel-cell-based package developed by EnergyUSA through its joint venture with the Institute of Gas Technology called MOSAIC Energy LLC.
"The field test will incorporate advanced technology, which includes the breakthrough fuel reformer process the industry has been looking for", said NiSource Chairman, President and Chief Executive Officer Gary L. Neale. "By working with respected builders to construct the first home designed for this revolutionary new power system, we are accelerating the time when fuel cell energy systems will be commercially available to homeowners. This fuel cell package represents the first step into the new electric economy where customers will have real choices".
Plans for the clean energy fuel cell test installation were unveiled at an event marking the 30th anniversary of Earth Day. Neale said the home will be located at a Lake Erie Land (LEL) Company development, which is a logical choice given LEL’s commitment to incorporating environmentally friendly features in all aspects of its communities. The model will provide EnergyUSA and MOSAIC Energy with useful information on the performance of the fuel cell energy package. The by-product heat produced by the fuel cell package will be redirected for various uses within the home, including space heating, which will increase overall energy cost savings for the homeowner and provide additional energy efficiency.
Looking ahead to the next steps of development for the project, MOSAIC Energy plans to extend minority equity positions to domestic and foreign manufacturing companies to support sales in other market areas. Prototype production will be initiated in the first quarter of 2001.
"An initial Midwest facility will serve the first phase of prototype production, with plans to ramp up to full-scale operations in the middle of 2002", said MOSAIC Energy General Manager Roger Gyger.
NiSource has meanwhile doubled its investment in MOSAIC Energy as part of the company’s commitment to begin to deliver the product to the commercial market in 2001.
"This collaboration also will help contractors understand how to install these clean energy systems into existing homes to deliver the same kinds of energy efficiency and environmental advantages", said Arthur E. Smith Jr., NiSource Environmental officer. "The location of the energy system near the customer will allow this environmentally friendly energy solution to give homeowners the opportunity to reduce their total energy costs by up to 15 percent. At the same time, it offers the added benefit of allowing people the choice to control their energy destiny since they won’t have to depend on the electric grid".
EnergyUSA, a wholly owned subsidiary of NiSource Inc., provides a diverse array of energy-related products and services to residential, commercial and industrial customers throughout the United States. For more information, visit the EnergyUSA Web site at www.energyusa.com.
MOSAIC Energy LLC is a joint venture between NiSource subsidiary EnergyUSA and the Institute of Gas Technology’s for-profit subsidiary, ENDESCO. The organizations joined forces to capitalize on their proprietary technologies in fuel cells, fuel processing and their capabilities in energy services.
Lake Erie Land Company, a wholly owned subsidiary of NiSource Inc., develops commercial and residential communities focused on environmental restoration and smart-growth principles. More information is available on the Internet at www.coffeecreekcenter.com.
NiSource Inc. is a holding company whose primary business is the distribution of electricity, natural gas and water in the Midwest and Northeast United States. The company also markets utility services and customer-focused resource solutions along a corridor stretching from Texas to Maine. Further information is available on the Internet at www.nisource.com.
FOR ADDITIONAL INFORMATION:
Regina D. Biddings, NiSource Corporate Communications
219-647-6204
Roger F. Gyger, MOSAIC Energy
847-768-0730