NiSource looking for a minority interest buyer
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Merrillville-based NiSource (NYSE: NI) says it is seeking a buyer to purchase a minority interest in its Indiana subsidiary. The news comes as it also reports third quarter net income of $52 million, up from $49.4 million during the same period last year.
During its annual investor day Monday, NiSource said it began a business review in February to find opportunities to drive value of the company.
President and Chief Executive Officer Lloyd Yates said acting on the recommendations, the company intends to sell a minority interest in its subsidiary, Northern Indiana Public Service Co. NIPSCO provides natural gas and electrical service across the northern third of Indiana.
“Our commitment to Indiana remains unchanged. This financial mechanism will have no impact on NIPSCO’s strategic direction in the state or on our commitment to our customers,” said Yates. “A minority sale provides a financially efficient opportunity to strengthen our balance sheet and provides flexibility to finance our growth investments as we continue to invest in and serve our customers.”
Yates says in addition to strengthening the balance sheet, the proposed minority sale is expected to minimize future external capital market needs and eliminate all equity needs until at least 2025.
Concurrently, the utility says NIPSCO filed an electric rate case on September 19 with the Indiana Utility Regulatory Commission.
The company says it is seeking $291.8 million to support renewable generation and associated transmission projects, grid modernization and customer-centric improvements.
If approved, the new rates would take effect in September 2023, with incremental new charges applied in 2024.
NiSource also told investors it plans to invest $15 billion from 2023 through 2027 on its continued adoption of renewable energy and infrastructure modernization.
The company says it has reduced emissions from its plants by 58% since 2005. It expects to reduce those levels by 90% by 2030.
NiSource says it intends to retire its last coal-fired generating units by 2026-2028, replaced by renewable energy sources, such as wind and solar.