NiSource receives regulatory approval for $2.1B sale of NIPSCO stake
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Merrillville-based NiSource Inc. has cleared a key hurdle in the proposed sale of a minority interest in its Northern Indiana Public Service Co. subsidiary. The $2.1 billion deal has received approval from the Federal Energy Regulatory Commission.
In June, NiSource announced plans to sell a 19.9% equity interest in NIPSCO to an affiliate of New York-based Blackstone Infrastructure Partners.
Blackstone is an investment firm that focuses on the utility, energy transition, transportation, digital infrastructure, water and waste infrastructure sectors. NiSource previously said Blackstone is committed to investing in NIPSCO’s ongoing energy transition and decarbonization programs.
The company said approval from the FERC is the only regulatory approval required for the deal. NiSource CFO Shawn Anderson said in a news release that the company is pleased to received the approval.
“Following the transaction close, NiSource’s balance sheet will be strengthened and positioned to support an ongoing robust capital expenditures program,” Anderson said. “We believe this valued partnership with Blackstone will greatly benefit our communities in northwest Indiana, and the further development of our NIPSCO operating company — a critical piece to ensuring long-term safety and reliability, while supporting the energy transition.”
The transaction is expected to close by the end of the year. When it does, NiSource will own the remaining 80.1% interest in NIPSCO.
NiSource bills NIPSCO as Indiana’s largest vertically integrated electric and gas distribution company with more than 1.3 million customers across more than two dozen Indiana counties..