NISOURCE INC. (NI)

NiSource Inc. is an Indiana-based energy holding company, regulated under the Public Utility Holding Company Act of 2005, that operates fully regulated natural gas and electric utility businesses serving approximately 3.8 million customers across six states. Originally incorporated in 1987 as NIPSCO Industries, Inc., the company was renamed NiSource Inc. in 1999. Its principal subsidiaries include NiSource Gas Distribution Group (holding company for Columbia gas utilities in Kentucky, Maryland, Ohio, Pennsylvania, and Virginia) and NIPSCO Holdings I (controlling interest in NIPSCO, a gas and electric utility in northern Indiana), with substantially all revenue and earnings derived from these rate-regulated businesses.

The company also formed Generation Holdings I, which holds a controlling interest in GenCo, to develop generation resources for serving data center customers, including under a 2025 agreement (the ADS Contract) whereby NIPSCO will provide electric service to a data center customer via power procured from GenCo. NiSource operates through two reportable segments: Columbia Operations, which distributes natural gas to about 2.4 million customers via roughly 37,300 miles of distribution main and 310 miles of transmission main across five states; and NIPSCO Operations, which distributes natural gas to about 0.9 million customers in northern Indiana and generates, transmits, and distributes electricity to about 0.5 million customers across 20 Indiana counties, operating a diverse generation fleet including coal, natural gas combined-cycle, hydroelectric, wind, and solar (with battery storage) facilities totaling nearly 4,000 MW, supplemented by power purchase agreements providing roughly 1,200 MW. NIPSCO participates in the MISO wholesale market and continues to execute its long-term integrated resource plan, which anticipates data center-driven load growth and additional generation investment through 2029, including new gas-fired resources.

The company faces competition from other utilities, alternative fuels, self-generation, and, in the emerging data center market, from utilities and power providers nationally and internationally. Both segments are subject to seasonal demand fluctuations and are supported by various cost-recovery mechanisms, rate trackers, and rate case proceedings across jurisdictions. NiSource is subject to extensive state and federal regulation, including oversight by FERC and PHMSA, and actively monitors evolving environmental and climate policies, including EPA deregulatory actions, GHG emissions rules, and state-level initiatives such as Maryland's Climate Solutions Now Act.

The company maintains a 2040 net zero GHG emissions goal (Scope 1 and 2), having reduced Scope 1 emissions by approximately 72% from 2005 levels through initiatives such as coal plant retirements, pipeline modernization, and leak-detection technology, though achievement of this goal remains subject to regulatory, technological, and business developments including data center growth. NiSource maintains safety certifications under API Recommended Practice 1173 and ISO 55001 Asset Management standards. As of December 31, 2025, the company employed 7,668 full-time and 70 part-time workers, with about 32% covered by collective bargaining agreements, and maintains various human capital programs focused on talent development, succession planning, employee engagement, and workplace health and safety, overseen by its Board's Compensation and Human Capital Committee and Safety, Operations, Regulatory and Policy Committee.