NiSource (NYSE:NI) reported third-quarter 2026 consolidated adjusted earnings per share of $0.27, up from $0.19 a year earlier, and said it was narrowing its full-year outlook to the upper half of its prior $2.02-to-$2.07 adjusted EPS range.
Year-to-date adjusted EPS totaled $1.49. Chief Financial Officer Shawn Anderson said the quarter benefited from cost management and higher customer usage and customer counts at NIPSCO and Columbia Gas operations in Ohio, Virginia and Kentucky. Operations and maintenance expense increased year over year because of storm-response costs, while other activities were flat, he said.
The utility also initiated 2027 adjusted EPS guidance of $2.22 to $2.30 and extended its long-term financial plan through 2033. The company now expects consolidated adjusted EPS to grow at a 10% to 11% compound annual rate from its 2027 expectations through 2033, including contributions from its GenCo business that serves large-load customers.
Capital plan expands to $40 billion
NiSource outlined a seven-year, $40 billion capital plan, consisting of $32 billion for its regulated base business and about $8 billion for GenCo investments supporting data-center customers. The plan includes gas-system modernization and safety work, electric reliability and resiliency investments, generation capacity and infrastructure intended to support economic development.
Anderson said the plan is designed to convert more than 90% of investments into initial recovery within 12 months. The company expects 9% to 10% consolidated investment growth and said its base business is expected to provide 6% to 8% annual adjusted EPS growth through 2033.
NiSource also maintained its target of 14% to 16% funds from operations to debt throughout the plan. In August, the company issued $750 million of junior subordinated notes. It expects to issue $400 million to $600 million of maintenance equity annually in the near term, with those requirements declining to minimal levels beginning in 2032 as the business generates more of its own funding.
The company said Blackstone is expected to contribute its pro rata 19.9% share of investments across the NIPSCO and GenCo capital plans.
Microsoft agreement adds to data-center strategy
NiSource announced that Microsoft will take electric service under a 20-year agreement beginning in 2028. The agreement is expected to increase the GenCo-owned pool portfolio by roughly 1,100 megawatts, including about 500 MW of combustion turbines and 600 MW of battery storage.
Executive Vice President and Chief Commercial Officer Michael Luhrs said NiSource expects to file the special contract with the Indiana Utility Regulatory Commission by year-end and is seeking an order during the first half of 2027. The agreement includes minimum capacity charges, pass-through treatment of variable costs and termination protections, according to the company.
The Microsoft deal marks NiSource’s fifth GenCo agreement in just over a year and its third signed major technology customer, joining agreements with Amazon and Alphabet. The company said its signed agreements are expected to provide approximately $1.75 billion in savings to existing NIPSCO electric customers, up from $1.4 billion cited last quarter.
At full ramp, NiSource estimates those agreements could lower annual bills by about $140 for an average residential customer. The company said bill credits could begin as early as January, subject to IURC approval, and may appear as a “My Data Center Credit.”
Luhrs said the company has approximately 5 GW of signed capacity, 2 GW in strategic negotiations and another 2 GW of developing opportunities. NiSource is studying the potential to expand its GenCo model beyond its current 9 GW pipeline and expects to provide an update in 2027. Management said its agreements are structured so data-center customers pay costs associated with their load, while existing electric customers are insulated from the GenCo assets in the utility rate base.
The company expects GenCo to contribute $0.05 to $0.09 to 2027 adjusted EPS. By 2030, it expects the segment to contribute $0.32 to $0.40 per share, rising to $0.52 to $0.68 in 2033 as customers reach full demand and financing costs become more efficient.
Storm response and regulatory matters
President and Chief Executive Officer Lloyd Yates said an Aug. 11 derecho with wind speeds reaching 110 miles per hour caused severe damage across northern Indiana, followed by additional rounds of severe weather. NiSource activated its incident command structure, suspended noncritical work and brought in more than 1,700 external personnel within 24 hours.
The company completed its broad restoration work by Aug. 25 without injury, Yates said. NiSource is conducting an internal after-action review expected to conclude by late November and has hired an outside expert to independently review its response. It is also participating in reviews by the IURC.
Management said the reviews are expected to identify opportunities to improve storm response, customer communications and investments needed to harden the electric system. The company has not yet quantified potential resiliency investments.
On regulatory matters, NiSource said Columbia Gas of Ohio filed its first three-year forward-looking rate case under the framework established through Ohio Senate Bill 103. Its Kentucky and Virginia rate cases remain on schedule, with Virginia rates effective Oct. 12 subject to refund and decisions in both states expected in the first half of 2027.
NIPSCO also received a fourth federal order in September requiring continued operation of the Schahfer Coal Units. The company said it is pursuing recovery of compliance costs through the FERC-approved MISO tariff schedule while evaluating a potential extension of the units’ operations through its integrated resource plan.
About NiSource (NYSE:NI)
NiSource Inc is a regulated energy holding company based in Merrillville, Indiana. Through its operating companies, the company provides natural gas distribution and electric utility services to residential, commercial and industrial customers.
NiSource’s natural gas operations include Columbia Gas utilities serving customers in several states, including Kentucky, Maryland, Ohio, Pennsylvania and Virginia. Its electric utility, Northern Indiana Public Service Company (NIPSCO), serves customers in northern Indiana and provides both electric power and natural gas services.
The company’s operations include energy delivery infrastructure, utility system maintenance, customer services and investments intended to support reliability and the transition of its generation portfolio.
