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Released August 16, 2024 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--NiSource Incorporated (NYSE:NI) (Merrillville, Indiana), a gas and electric utility holding company, plans to make as much as $17 billion in capital investments from 2024 through 2028, roughly $2 billion more than the company estimated in last year's five-year capital expenditure (capex) program, company officials told investors on a second-quarter earnings call August 7.
Over the five-year period, NiSource subsidiary Northern Indiana Public Service Company (NIPSCO) (Merrillville), a combination electric and gas utility, is scheduled to make capital investments of between $8.5 billion and $9.4 billion. Over that same timeframe, NiSource's stand-alone gas utilities, which operate in Maryland, Ohio, Kentucky, Pennsylvania and Virginia under the Columbia Gas umbrella, are slated to make capital investments of between $7 billion and $7.8 billion.
Beyond the base capex program for 2024-2028, company officials told investors there could be up to an additional $1.6 billion in potential capital investment opportunities after 2028. Those longer-term opportunities include:
All told, NiSource's operating utilities deliver natural gas to about 3.3 million customers. An additional 500,000 customers receive electric service from NIPSCO.
NIPSCO has a goal of reducing Scope 1 greenhouse gas (GHG) emissions 90% by 2030 compared to a 2005 baseline, and becoming a net-zero emitter by 2040.
To achieve those goals, NIPSCO has closed, or is preparing to close, several coal-fired generating stations. It also invested about $1 billion, and it plans to invest an additional $2.1 billion to construct non-emitting generation, storage and transmission assets that are being developed by third-parties, such as Invenergy (Chicago, Illinois) or NextEra Energy Resources LLC (Juno Beach, Florida), and will be transferred to NIPSCO under a build-transfer agreement (BTA). In addition, several other wind and solar generation projects have been or are being built by third-party developers; those generators are selling, or will sell, power to NIPSCO under a power purchase agreement (PPA).
Click on the image at right to see a map of non-emitting generating and storage facilities that are being constructed by NIPSCO or for its benefit.
Industrial Info is tracking seven capital-spending projects from NiSource, totaling about $873 million in investment. Measured in dollars, the largest proposed project is a 60-mile, 345-kilovolt (kV) transmission line from Topeka, Indiana, to Calhoun County, Indiana. Most of NiSource's other planned capital projects involve closing and remediating coal ash ponds or decommissioning and demolishing coal-fired generators.
Several planned wind and solar generation facilities, such as a solar farm in Fairbanks, Indiana, are being developed by NextEra Energy and Invenergy, respectively. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the transmission line and solar farm.
On its August 7 earnings call, company officials said NiSource earned $85.8 million in the April-to-June period on nearly $1.1 billion in revenue, a big improvement over the year-earlier period when the company earned $39.9 million on about $1.1 billion in sales.
Commenting on quarterly results, Lloyd Yates, president and chief executive, said: "During the second quarter, NiSource placed the Cavalry Solar & Storage project into service and reported strong earnings results, executing our investment plan and delivering consistent shareholder returns." In July, he continued, "our team was put to the test in responding to a major windstorm in our Indiana service area. I want to thank our employees and contractors for their preparation and around-the-clock response in restoring service to our communities."
Subscribers can click here for a list of related project reports and click here for a list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Over the five-year period, NiSource subsidiary Northern Indiana Public Service Company (NIPSCO) (Merrillville), a combination electric and gas utility, is scheduled to make capital investments of between $8.5 billion and $9.4 billion. Over that same timeframe, NiSource's stand-alone gas utilities, which operate in Maryland, Ohio, Kentucky, Pennsylvania and Virginia under the Columbia Gas umbrella, are slated to make capital investments of between $7 billion and $7.8 billion.
Beyond the base capex program for 2024-2028, company officials told investors there could be up to an additional $1.6 billion in potential capital investment opportunities after 2028. Those longer-term opportunities include:
- Electric transmission & distribution (T&D) reliability and performance investments focused on infrastructure replacement, continued grid modernization, system hardening and transportation electrification
- Generation investments to ensure ongoing reliability and support incremental demand, asset retirements and decarbonization
- Interstate electric transmission investments that were regulated by the Federal Energy Regulatory Commission (FERC) (Washington, D.C.) that could be made as part of the multi-year long-range transmission planning initiative undertaken by the Midcontinent Independent System Operator (MISO) (Carmel, Indiana)
- Continuation of investments in gas system modernization and advanced metering infrastructure (AMI) programs and renewable natural gas (RNG) infrastructure
- Investments to support hydrogen production, transportation, storage and consumption in our territories
All told, NiSource's operating utilities deliver natural gas to about 3.3 million customers. An additional 500,000 customers receive electric service from NIPSCO.
NIPSCO has a goal of reducing Scope 1 greenhouse gas (GHG) emissions 90% by 2030 compared to a 2005 baseline, and becoming a net-zero emitter by 2040.
To achieve those goals, NIPSCO has closed, or is preparing to close, several coal-fired generating stations. It also invested about $1 billion, and it plans to invest an additional $2.1 billion to construct non-emitting generation, storage and transmission assets that are being developed by third-parties, such as Invenergy (Chicago, Illinois) or NextEra Energy Resources LLC (Juno Beach, Florida), and will be transferred to NIPSCO under a build-transfer agreement (BTA). In addition, several other wind and solar generation projects have been or are being built by third-party developers; those generators are selling, or will sell, power to NIPSCO under a power purchase agreement (PPA).
Click on the image at right to see a map of non-emitting generating and storage facilities that are being constructed by NIPSCO or for its benefit.Industrial Info is tracking seven capital-spending projects from NiSource, totaling about $873 million in investment. Measured in dollars, the largest proposed project is a 60-mile, 345-kilovolt (kV) transmission line from Topeka, Indiana, to Calhoun County, Indiana. Most of NiSource's other planned capital projects involve closing and remediating coal ash ponds or decommissioning and demolishing coal-fired generators.
Several planned wind and solar generation facilities, such as a solar farm in Fairbanks, Indiana, are being developed by NextEra Energy and Invenergy, respectively. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the transmission line and solar farm.
On its August 7 earnings call, company officials said NiSource earned $85.8 million in the April-to-June period on nearly $1.1 billion in revenue, a big improvement over the year-earlier period when the company earned $39.9 million on about $1.1 billion in sales.
Commenting on quarterly results, Lloyd Yates, president and chief executive, said: "During the second quarter, NiSource placed the Cavalry Solar & Storage project into service and reported strong earnings results, executing our investment plan and delivering consistent shareholder returns." In July, he continued, "our team was put to the test in responding to a major windstorm in our Indiana service area. I want to thank our employees and contractors for their preparation and around-the-clock response in restoring service to our communities."
Subscribers can click here for a list of related project reports and click here for a list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
