NiSource Achieves IURC Regulatory Approval for GenCo Strategy
With IURC approval, the structure unlocks energy solutions tailored for the
data center boom while protecting existing customers, enabling growth and
securing long-term value.
MERRILLVILLE, Ind. – NiSource Inc.
(NYSE: NI) has received Indiana Utility Regulatory Commission’s (IURC)
approval for its NIPSCO Generation LLC (GenCo) declination petition. GenCo is
designed to own, build and manage generation assets to serve the growing data
center industry in Northern Indiana.
This approval marks a pivotal moment for our company and the region, unlocking
GenCo’s ability to protect existing NIPSCO retail customers and best serve
data center and other large load customers. GenCo’s strategic pillars
include:
-
Customers First: GenCo was created to shield NIPSCO’s
existing retail customers from costs associated with serving new data center
customers.
-
Growth Ready: By operating as a separate entity, GenCo is
best positioned to meet the demands of new data center customers quickly and
flexibly.
-
Financial Stability: GenCo enables NiSource to make prudent
investments, manage costs effectively and create predictable cash
flows.
-
Future Flexibility: GenCo allows for quick adaptability as
energy markets evolve, ensuring that the company can pursue future
opportunities on behalf of the region without compromising customer
value.
“This is an important step forward to position Northern Indiana at the
center of a fast-growing, economically essential industry,” said NiSource
President and CEO, Lloyd Yates. “The order reflects confidence in our ability
to deliver safe, reliable and affordable energy solutions for our communities.
It gives us the tools we need to grow responsibly while ensuring that every
decision we make keeps customers front and center.”
IURC’s decision enables GenCo’s to execute on its growth-focused strategy.
With this order, NIPSCO is well positioned to power Indiana’s economic growth
while protecting the communities it serves – today and tomorrow.
Forward-Looking Statements
This Press Release contains "forward-looking statements," within the meaning
of Section 27A of the Securities Act of 1933, as amended (the "Securities
Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Investors and prospective investors should understand that
many factors govern whether any forward-looking statement contained herein
will be or can be realized. Any one of those factors could cause actual
results to differ materially from those projected. Forward-looking statements
in this press release include, but are not limited to, statements concerning
plans, strategies, objectives, economic growth, expected performance,
expenditures, recovery of expenditures and any and all underlying assumptions
and other statements that are other than statements of historical fact.
Expressions of future goals and expectations and similar expressions,
including "may," "will," "should," "could," "would," "aims," "seeks,"
"expects," "plans," "anticipates," "intends," "believes," "estimates,"
"predicts," "potential," "targets," "forecast," and "continue," reflecting
something other than historical fact are intended to identify forward-looking
statements. All forward-looking statements are based on assumptions that
management believes to be reasonable; however, there can be no assurance that
actual results will not differ materially.
Factors that could cause actual results to differ materially from the
projections, forecasts, estimates and expectations discussed in this Press
Release include, among other things: our ability to execute our business plan
or growth strategy, including utility infrastructure investments, or business
opportunities, such as data center development and related generation sources
and transmission capabilities to meet potential load growth; our ability to
manage data center growth in our service territories; potential incidents and
other operating risks associated with our business; the ability of key
suppliers and contractors to timely satisfy their obligations; the impact of
applicable tariffs, if any, and other economic factors; the impact of natural
disasters or other severe weather events; our ability to construct new
generation on-time and effectively and their technological feasibility;
capital market conditions, including the availability of credit and our
ability to obtain financing on acceptable terms; the ability of customer(s) to
implement plans to construct data centers; the impact of public involvement,
intervention or litigation with respect to data center projects; any early
termination of contract(s) our ability to adapt to, and manage costs related
to, advances in technology, including changes in laws and regulations; our
increased dependency on technology; impacts related to our aging
infrastructure; the success of our electric generation strategy;
fluctuations in demand from customers; fluctuations in the price of energy
commodities and related transportation costs or an inability to obtain an
adequate, reliable and cost-effective fuel supply to meet customer demand; our
ability to attract, retain or re-skill a qualified, diverse workforce and
maintain good labor relations; our ability to manage new initiatives and
organizational changes; the performance and quality of third-party suppliers
and service providers; our ability to manage the financial and operational
risks related to achieving our carbon emission reduction goals, including our
Net Zero Goal, including any future associated impact from business
opportunities such as data center development as those opportunities evolve;
potential cybersecurity attacks or security breaches; increased requirements
and costs related to cybersecurity; the actions of activist stockholders; any
damage to our reputation; the physical impacts of climate change and the
transition to a lower carbon future; our debt obligations; any changes to our
credit rating or the credit rating of certain of our subsidiaries; adverse
economic and capital market conditions, including increases in inflation or
interest rates, recession, or changes in investor sentiment; economic
regulation and the impact of regulatory rate reviews; our ability to obtain
expected financial or regulatory outcomes; economic conditions in certain
industries; the reliability of customers and suppliers to fulfill their
payment and contractual obligations; the ability of our subsidiaries to
generate cash; pension funding obligations; potential impairments of goodwill;
the outcome of legal and regulatory proceedings, investigations, incidents,
claims and litigation; compliance with changes in, or new interpretations of
applicable laws, regulations and tariffs, including impacts of state and
federal orders on our ability to carry out our business plan and growth
strategy; the cost of compliance with environmental laws and regulations and
the costs of associated liabilities; changes in tax laws or the interpretation
thereof; and other matters set forth in Item 1, "Business," Item 1A, "Risk
Factors" and Part II, Item 7, "Management’s Discussion and Analysis of
Financial Condition and Results of Operations," of our Annual Report on Form
10-K for the fiscal year ended December 31, 2024 and matters set forth in our
subsequent Quarterly Reports on Form 10-Q, some of which risks are beyond our
control. In addition, the relative contributions to profitability by each
business segment, and the assumptions underlying the forward-looking
statements relating thereto, may change over time.
All forward-looking statements are expressly qualified in their entirety by
the foregoing cautionary statements. We undertake no obligation to, and
expressly disclaim any such obligation to, update or revise any
forward-looking statements to reflect changed assumptions, the occurrence of
anticipated or unanticipated events or changes to the future results over time
or otherwise, except as required by law.
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility
companies in the United States, serving approximately 3.3 million natural gas
customers and 500,000 electric customers across six states through its local
Columbia Gas and NIPSCO brands. The mission of our approximately 7,700
employees is to deliver safe, reliable energy that drives value to our
customers. NiSource is a member of the Dow Jones Sustainability - North
America Index and is on Forbes lists of America’s Best Employers for Women and
Diversity. Learn more about NiSource’s record of leadership in sustainability,
investments in the communities it serves and how we live our vision to be an
innovative and trusted energy partner at
www.NiSource.com.
The content of our website is not incorporated by reference into this
document or any other report or document NiSource files with the Securities
and Exchange Commission (“SEC”).
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