NI - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2024 NiSource Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Chris Turnure, Head of Investor Relations.

You may begin.

Christopher Turnure

you. Thank welcome Third and Call. XXXX the to morning, Quarter NiSource Investor Good

Anderson; of me Chief Commercial and Vice and Shawn as and are Melody on Officer, President Chief Vice financial Officer; Officer, Joining Executive President Executive Michael Executive third the Luhrs; performance today Vice and Utilities, of drivers. and Strategy well Risk Lloyd and Yates; Financial Executive Chief President provide presentation update Birmingham. The growth XXXX an as and operations Group President, is this our for quarter purpose NiSource to NiSource's of review President

in prepared open our the be during statements materially this Information the remarks, Investor These Following to such uncertainties results you uncertainties subject would the to and periodic forward-looking. our MD&A statements. SEC in in today's included statements made risks risk are cause of and concerning section filings. that actual remind we'll of website. We could your for questions. sections some of could Slides to the Relations available from presentation risks like factors call our are call expressed to the and that those differ is

to measures. I'd supplemental the like full the Please this non-GAAP on statements refer comparable now the of GAAP information Lloyd. directly over financial most reconciliation segment call to these to to a relate some Additionally, schedules of made for on the slides, and measures. information and call measure turn

Lloyd Yates

and while affordable fundamentals recovery and energy regulatory thesis These balance and customers efficient generate Chris, safe value. good I'll position. by on our investment our an sheet asset mechanisms. competitive deployment, is energy safe requires you, Thank serve NiSource everyone. Affordable at returns operations capital reliable X. We enhancing constructive begin Slide morning, simple. The delivering

level, plan, to from Strong type diversification operations and regulated what is focus our capital the X.X% shareholder fundamentals constructive continues made these despite a these business NiSource with returns a demonstrating compelling the our regulatory trailing weather. X stakeholders, This to at the financial location. by execution normalized deployed number to GAAP across are and XX-month to offering adjustment across which on an leverage. offer growing fuel utility value driven driven NiSource only have business highly and declining Importantly, earned ROE are foundation jurisdictions, team rapidly

NiSource's and all XXXX. received solar stations a as coal-generating by these settlements processes. Last facilities remaining in approvals value activity. Being quarter. add retire we All these judge in focus our foundation each But us of progress to our our active amendments made approach regulatory October, utilities. Approval enhancing on let's stakeholder remain in build general our and its In Indiana, and our energy of this utilizing the X-state on long-term a regulated have as a end solar CPCN recommended refresh, advance we peaking X a informs approval. a are our stakeholder-focused plan superior for In which law multiparty commission to to general continue full subject as trusted Kentucky ownership long-term well rate before gas our teams both our both reached we to by we filed. approve footprint case to teams credibility Pennsylvania CPC rate case facility, the our mindset and regulatory through is commission the the Slide month, as and touch a priority, on tracker turn and settlement settlement partner NiSource differentiates of and from of we rate filings We case. which an construct believe final peer helped of proposition, administrative

and returns our in This data work program, and and will received technology to ongoing analytics efficiently live through our operational gas go our operations which for our utilizes and more approval technology serve dispatch team. This better for our which example and inform the management to and onetime July is enhance an management making expenses operations. excellence to next advance culture our for the of investments includes using customers deferral our AI summer of for efficiency operations electric also a new to went of through also in across raise live an upgraded for to deliver productivity We system, risk strategy across our customers. strategic asset systems, capital

Our operational and faced constantly our management of allocation drives We excellence through communities to many which protection shareholders essential head our framework. potential risk environment, categories and on to The rate of relentless natural industry relates posture divesters, on, our whether enhances capital face management risk, inflationary continues and focus for our customers, structures other challenges interest it on utility pressures to cost uncertainty. or values. evolve the risk items potential

and Our industry practices best utilize commitments. our lead solutions to teams and understand to constantly add are implementing layers into execution deliver to our partners plans protection of our and derisk proactive

We our have highly which confidence believe in high are we to commitments, achieve financial our executable. ability

XXXX guidance continue upper achieve to to of are the EPS $X.XX expect adjusted half of reaffirming range. this to We we $X.XX, and

base. fuels year-end We X% rate outlook to our and guidance XX% X% to equivalent XXXX horizon with refresh and to ability X-year XXXX of or rate our commitment. a which plan period, we adjusted commitment base. XXXX across this annually. our growth plans, capital overall announcing included per to growth billion $XX.X earnings that current our financial rate to are elements plan, is of This to our extend are our increase total than initiating base of over larger to planning updated maintaining consistent which growth adjusted to X% our X% XXXX. rate XX% X-year of EPS Key annual of an drives slightly XX% is prior existing This share to the our also by guidelines $X.XX $X.XX, XXXX Today, X%

years our plan. to support commitment XX% XX% sheet target balance of FFO in the of the debt strengthening in investments to Our all to

stop not base capital plan. does work at the Our

to will Shawn plan detail fortunate include a beyond portfolio investments of are valuable far our We horizon, robust later. extend which customer have and X-year

in active teams strategy Our our work Indiana serve be to our projects by and The compelling of be a example of state included data standards our factors a supportive to all potential of advancing the to NIPSCO. including proximity transmission and meet region. land by of to region One the access necessary fiber to system to for favorable teams our with risk base development robust data in Northwest tax constructive interest developing including portfolio power centers are are of plan. the business in to customers weather remain is this center by in served the and connections. Predictable critical favorable customers, infrastructure, climate, catastrophe government critical low-cost robust low a structures, natural development and climate fundamentals center data

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years with on focus execution to X. our core detailed X our Now on the upon last the regulatory deliver Slide continue engagement over let's teams

a trailing the of expect of for first new in the investment of solar Shafer a state basis. now we as the implementation Pennsylvania, as electric Ohio, both incremental storage projects, filed our X regulators a and Major rate investments In key again customers. Switching year. In are at and XX% policymakers, last in thoughtful million its final deliver capital for and October residential of incorporates total early safety, planned compliance family for XX-month in retirement rate Affordability energy Generating customers be next was bill and commission XX continue and a reliability period these companies, our the well Station expenditure partnership customers. In examples new next Columbia our was continued priority ending to and general our major Northern safe approved we XX Virginia, the month, full submit general intervenor average NIPSCO year. The in and our testimony by state and X riders ownership. reliable in to order about our program with December. a NIPSCO we final gas is case as During advance September, we to and remains to on this and rider bill such case NIPSCO's filed necessary of $X.X investment expected XXXX driven in X the Indiana. work early as August to reflecting capital for $XXX billion declined order communities years, Units expect nearly and rate case for critical

employees our turn the values, less efficient thank safer, want doing and their over, and to for more I of call NiSource dedication things costs. Before contractors all better, to for I

Our now customers things Michael. on over and shareholders turn day. I'll every rely you to

Michael Luhrs

you, Thank Good Lloyd. morning.

We disciplined I'll methodical investments. generation continue of a X benefit and on and to approach effectuating stakeholders. on robust begin our developing to an investments with pipeline update our Slide

in converted been that will full Gibson August, regulatory now will to stakeholders. for materially have X As Lloyd investments made With benefit ownership approval which we cost customers. has there generation received related ownership, to mentioned, substantial progress full projects all and to having lower Fairbanks

QX Gibson since result for stakeholder projects a the creating win economically valuable XXXX and wind XX will completion. If the expect all project in of generation of charges that own time work related placed delivered to with with expected in to of bringing Resource The versus filed County, it state Wind approved, last Fairbanks we Plan XXX-megawatt an key cost into incremental the stakeholders. in the was turn no NIPSCO lines X. the and earlier renewable shareholder property process. example which our in processes. These of commodity investment and of IURC XXXX. In project In Solar at in filed on the progressed the Slide the with MISO which IURC solar assets storage will and a and modules Center of the are storage planning benefits the to X regulations, of build billions meeting X next driven RFP of to megawatts in for be on for Bridge costs a this projects we addition, Indiana, changes service service represent Gibson our EPA year. Fairbanks assets customers, is portfolio great agreement Slide fossil site, are work solar for and by structure the XXX-megawatt a to center customers. Please early which in will XXXX delivering Monday, very held investment. XXXX NiSource X Templeton application to update. are already generation Benton with week factors: Dunns come fuel have new be The all to of needs dollars in by team Energy the increase online NIPSCO early the was are service. of NIPSCO already the May, expected modules X fifth asset IRP continuing our It XXX% is customer convert fuel Potential PPA driving transfer demand. the Cavalry approved rules Indiana, later a PPA the requesting driven well reduce team wind, of corresponding in data of to reliability last and our horizon maximizing XXXX On at to the upon by and have majority notification are and XXX-megawatt the down Integrated megawatts XX NIPSCO

factors, As earlier power capacity. investments finalized gas or guidelines utilization carbon year fossil for EPA require generation fired the hydrogen may this aware, greenhouse sequestration fuel and standards most you of capacity plant are limit gas

reference intend data centers and We to IRP Additionally, in updates capacity of requirements our MISO's the on changes, the NIPSCO, in which center IURC will growing X,XXX load impact case, footprint. the the and interest at accreditation have design file in the X-season the data loss includes a supports and megawatts and direct December. These final demand. rule capacity IRP these MISO reduction under combined market with of substantial in construct significant generation

upside work balance and reduction as priorities, the to will customer most have opportunities our changes by beneficial made customer capital and through overview an we XX% meet our build interim move base a NiSource teams these our you'll these of investments center goal. are opportunities As commitment and have AI the developing, electric towards demand, significant cases analytics financial to opportunities and to with under To in of objectives XXXX to pace highlight breadth X, I development remain and glide or major goals. On path our examples: highlight net component X the overall employing we more of are business plans. and These we these we not evaluating XXXX XXXX find progress Environmental X will reliability data for to are important stakeholders. commercial strategy disparate Slide baseline, advance included and the than relative of data COX we to company work. cost, an continue items we our and

we mentioned, strong the Lloyd of but and made effective As have progress in we AI. building analytics have upgrades, real deployment been technology capabilities also and utilizing data

qualified end the built, deploying CapEx already management have improvements, cost, of efficiency seen and significant generation derisking NIPSCO support and we customers. work other with their meeting operational as data utilizing while increasing needs understand transmission deployment develop and have we counterparties and operations. At the data our existing with to now tested region and for needs structures deal gas our for lowering are team spectrum, We models ensuring reliability and goals, center the enabling center protecting business our AI is operations, to

actively center data profile. the demand access working speed to are to We consistent with the enable

frames Fortunately, sites, for fundamentals network time infrastructure technical NIPSCO which sound beneficial has generation buildout within and development. have a center strong transmission to in data very the

we data or have we activity developing our centers upside, customers, focus though vetting and included existing shareholders, that beneficial continue to data potential center would plans So opportunities communities. be any not our to on and within

just will methodical as disciplined done that Shawn we of mentioned will touch Templeton a As and started, these the with manner next. when project. in we've on more Wind Shawn? opportunities we develop

Shawn Anderson

Thank you, Michael.

Slide Let's start X. on

EPS versus Higher was net increase of million benefits quarter ago. adjusted of $XX the approximately an rate investments drove Third $X.XX incremental share, year per revenue, $X.XX $XX period same base financing basis. in electric year. last X also realized million were our million $X.X Customer million for the and and usage added $XX businesses total a gas year-over-year on have over and count across versus year also grown and

Moving XX. to Slide

Let's our plan break XXXX. through CapEx down

capital factors, As Lloyd billion. gas number technology outlook, base which plan including plan investments $X.X and of mentioned to starts earlier, is billion a plan we've modernize our our systems. than of base plan, by a projects, investments, larger increased driven compliance X-year and prior refreshed which our $XX.X enhanced base system with hardening is The information generation

our inclusion upside our agreement shared, base project, now commercial plan our Templeton the ownership shifted base teams of which after plan the the on the reached Michael the As of from reflects plan into project.

detail our enhanced our reliable have necessary investment as are the safe on and to deliver We disclosure new base themes service to to the plan seeing we customers.

previous All investments at upside structures It Tranche flowing our we've now plan, consists charts portfolio of our are or base costs the base The in requirements included legacy electric those plan. those the sits upside not billion refreshing base teams that gas is work than upside in any of socialization as billion, revised X when compliance working based time our the slightly projects plans. The included on figure. compliance an safety in capital met of viable well and modernization, included actively on projects larger our PHMSA these and plan $X.X and our yet MISO and an the despite into of to guidance in as at $X.X systems now also stakeholders, CapEx being with plastic mainly have spent for additional become projects. may estimation category be threshold upside affordable commercial of and value. We've plan,

along the threshold the these for be center standards. not our a we strategy plan that growth believe plan, the systems do highlighted upside projects for base and see investment full We and investment capital continue necessary deliver I'd capacity provide NiSource. represents the and center require data in Once our stakeholders which activity, alignment the these opportunity the data updates to any and operating while base meet that way. included note earlier. We system will Lloyd plans compelling demand here with through Michael increased strongly our include expenditures flow to our to in in

meet is advance plans. company strategy. threshold strongly to said, strategy to base this upside that additional in include either is our the of the to capital However, the With or required development positioned

recovery. data on flow capital model has for deep customers enables and minimizes including steel its customers NiSource the balance working company, execution customers experience supporting in cash which a also sheet utility-centric around financial load of all backdrop deliver history be with in flexibility and regulatory the allocation has providing the our large in vertical decisions. The Continued markets finance for stakeholders. of to strengthened industry positioning, supports and has business maintains of efficiently has access NiSource profile opportunistic financial compact, regulatory commitments while to opportunities. large and to constructive a complexity integration the to flexibility NiSource center regulators, the long-standing capital value Indiana

Let's move to Slide XX.

our is recovery strengthen capital minimize rate the using XX% capital our including recovery and FFO common we and annual and of for capital financing throughout highlighted, in $XXX begin capital included do we've the returns minimizes to new lag NiSource at-the-market maintain the opportunistic the XX% same our cash of achieve debt to in strategy, flow our expenditures needed X% XX, debt drives capital that reasonable subordinated We Approximately we in the inside the capital the a EPS XX% regulatory to cash guidance plan our which for year, adjusted XXXX from marketplace capital in priced debt to program. Limiting to $XXX subordinated fund from Slide trackers our base of X.X% our balance enterprise trailing to recovery CapEx achieving X% need base planned deployed. X-year forward-looking new balanced fuels of financial junior through and delays period helped to sequencing us and this new see use strengthen mechanisms growth pleased completing debt and the all structure ROE, guidance target of of notes XX-month report capital position XXXX. will to the capital new mix equity through which of business stated with continued and million mechanisms, the commitments. is which base plan, of expected Lloyd million efficient to our the are plan long-term of our issued annual plan, as million years base $XXX months, equity continues maintenance Along our continue to our in The expect over revised plans. in each of operations, across use long-term forward to of enabled structure, returns XX% NiSource horizon. On not have of positioning helps The period. to is the the to our FFO our to continue increase has rate updated ATM through company. of be in plan changes which growth sheet to this X% note, Despite expenditures through we reflecting XX the out Of notable. to year value junior you'll growth the equity. This

will through of rebase the actual guidance long-term rate. full know, EPS you incorporating As off growth compound our we when flow and plan and results growth outperformance

we driven XXXX of Investor Day, the share the our range above per midpoint plan. And estimated X.X% than of midpoint initiated is outperforming we in is in to this XXXX. our by years for original example, midpoint midpoint the $X.XX initiate $X.XX higher XXXX guidance For when guidance all $X.XX, as this of was

$X.XX to for our of guidance expect the again, in to and half achieve We results this range. are $X.XX reaffirming of upper XXXX

of FFO plan. committed XX% all to remain years XX% debt we Additionally, to to the in

and projects plan, upside financial our As those projects the note, increases the remain work the was Center not this customer will enable CapEx with in like fuel upper plan the case required our commitments the prior costs impact, in focused has the we with across Templeton safety, while to when meet customer plans compliance shown any from Energy base through drive reducing better case on our to reliability be and increase the box, base. Wind portion plan category generation. eliminate upside is capital impacts and our an Efficient to of included. I'd planned the for flow to CapEx associated we financial standards cost minimizing of any center

than projects highlights bill annual with revised X% NiSource. I'll on increases less Our average track of record across XX. conclude our Slide plan growing

Our financial commitments are XXXX. on for track

XXXX for for utilized for executable to our generation our and ensure guidance guidance Pennsylvania has of and and and on control investments assumptions. our sheet been our critical in our marketplace resilient debt and of our and completed, numerous in financing junior and recovery established and have execution are approvals confident cases remains underscore safety realistic remain Settlements based our fortify forces and and technology market demonstrates to activity and Indiana long-term outside investments the the rate balance Kentucky and balance continues We to flexibility systems. Year-to-date reliability subordinated positioning. diversification near-term sheet

have XXXX. The EPS CapEx diversified gas the growth upside the plans a long-term to and regulatory infrastructure to electric story invest time, To rate or and emerging upside to base transition opportunities any known plans executed and customers elements since programmatic guidance and story been the adjusted investment in socialized to with economic over proposition but integrated to investors to the today. I'd for demonstrate support onshoring Q&A. are we've the and to regulated assets call for contributed our upon base many turn accelerated offer our investment load and These the utility opportunity core truly both neither energy and value new include X.X% data to the the business. operator nor some center EPS in of data both value like have our differentiate for CapEx now adjusted market opportunity our the center relative rate development alternatives investors. development, fully programmatic reiterate, built and NiSource programs, continues investment and which is proposition Lastly,

Operator

the Your Barclays. Campanella with question of comes line Nick from Instructions] first [Operator

Nicholas Campanella

Good from the here. Analyst everything playing to see Day out

that. on congrats So

with in having remarks, recent largely So And understand of talked it the was continuing kind prepared CapEx about increase gas your I side, seems. in you on centers. discussions data you're just the that

So we NIPSCO watching you Is opportunities? that just discussions about talk layer to the on of of for, that timing getting looks should it case? can like? you catalysts an rate Is it what what those through for finishing kind be would kind And the tariff in those be? the of what

Lloyd Yates

I'll start, more I'll Luhrs the primarily NiSource company are sees the incremental detail. activity. Michael we and good provide center really now, a So data and for investment let opportunity I as think a just But it's where opportunity. XXXX

the I and that's well. think kind and been to way, you who about to probably disciplined in of as that we methodical wind progress this the we want think way counterparties, our a get to Templeton, just with of going has some executing do we've sure to of and take we down in disciplined make discussions time. the methodical detail keys do ability just And what in things if the why so with project, mean to I been a

add So to anything to Mike, that?

Michael Luhrs

Templeton accretive which project Wind they're them they bring as or those it, work were make then opportunities in you hit the And said, point existing accretive are to these going we will We we're providing for beneficial, manner, benefits with we shareholders. methodically, customers, sure you through today. come disciplined we a that that it's as the forward Lloyd. do opportunities as and know No, to at through we just

Nicholas Campanella

Okay.

can that on that and require it equity the it just from of balance sheet take clarify are here, you maybe incremental it? absorb you rates raise the right plan these that So kind to absorb can CapEx financing? customer does truly is additional if the that can the And

Shawn Anderson

Yes,.

be CapEx not the systems investments have our we captured those work mechanism. would require flow would our today. through it get do Just capital to would potential based where $XX.X to those live. everything through the know center that. I sequenced But flow with this opportunities amounts just $X.X incremental when of through projects, The of systems. incorporate we regulatory they of clear, of full the those incremental That's how in planned systems opportunities we billion We'll Therefore, all modest the equity those may when through highlighted. cash themselves. The is financed reevaluate profiles any and mechanisms billion fully on we've upside to to a through are investment theoretically systems, shared plan that refresh those that need don't investment you'll know and data you

Operator

comes Your line with the Julien next Dumoulin-Smith of question from Jefferies.

Julien Dumoulin-Smith

Very your Those well done, say. truly are not to average LDCs, got I impressive.

In data given the fact, IRP, XQ year, different impressive mean, The mean something that's staggering data next here, number update the over December you're of out. looking year to these a AI points a here. data end, I data I to that's correct? a the should going center-related that That's understand just we not be just to points the of here, update points CapEx upside billion to here, with XQ. $X.X presumably, going to be get

Shawn Anderson

Yes.

real quick. step just it me Let through

we actually of do to see kind the capital and CapEx development don't see emerge move those on those And we start to some projects. continue billion but see shared. profile see you allocation $X.X layered XXXX. it the those it of can So upside point, in to can XXXX, around CapEx, your the upside bars slide But XXXX, of in. We'll on in based that much we in you the

on do understand and yet those to significant it here the we're stakeholders. it of know the takes under opportunities I well need development pretty be and XQ for terms we'll company. through IRP, roll call, the strategies preferred working we what don't updates, value in how but the update the development, the will portfolio imagine systems, CapEx land. And we Likewise, we'll commercial the to call. those all outlook where I and be centers are on the what I more, data seems it those upside might underway both with clearly through then allocation we'll discuss As and Therefore, the and creation Again, incorporated. will on imagine know post we'll for those. that that action that Once understand

Julien Dumoulin-Smith

to may, guys. right? Got you'd can basic you I number if base mean, as kind -- up proposal in that X.X I And mean, here, talk though? process I there offer here, here, is of on it. you owned. a a center start open around detail. iterations you of the kilowatt got I can more gigawatts data Excellent, observations up But -- put Anything details the per I this that some get You've if what maybe kind little as know I about, walk can of the you any this various assumptions, baselines different initial here. historically thought to dollar you'd will, translate the

Lloyd Yates

that? Michael, do you want to take

Michael Luhrs

Yes. it more you. with time, additional the of required and Shawn and in relative associated a out IRP to we to generation is But it you the said, XXXX associated investments imputes we have with detail, what entail and and other this don't be associated activity. that, thing only that the Monday. if look what that mechanisms. CCGTs can would would as at to at detail in storage see just point assets assets I'll those X,XXX Thank add posted you would on What that megawatts The be

that covering As will you materials, see scenarios comment IRP that associated could multiple the potentially we megawatts, with of process, Lloyd from case X,XXX in including range with entail of opportunities, can outcomes what the upside associated sort again, have commented, I assets. but and a an

Julien Dumoulin-Smith

] But on time, palatable [ no specific views percent to this own? at Got Yes. it.

Lloyd Yates

No, not at time. this

Operator

line the Richard from comes with question JPMorgan. of next Sunderland Your

Richard Sunderland

broadly the the you've you this Maybe lot generation Julien opportunity curious you've of that's might asking load PPA IRP, But you this with need regardless we're I'm type in center data scenarios work outside going not? or convert I'll Again, a Templeton, forward? center pick of up the was up what just a lot as projects clear. overall, sort data think about that's bucket done work focused And X.X load also in company-owned on of what all showed and the really of needs how to you've of on I just just shows think Kind on projects? maybe of given of generation the do load into done gigawatts kind on. generation IRP that now. of said that

Michael Luhrs

about Yes. talk I'd that to be more. happy

with So customers just have which a look lot we've you work beneficial stakeholders what we associated done, the with it. and associated you one on generation of of very the when done shareholders hitting relative are all to assets, made, at points and

work benefits We that make to like and parties. will do maximizing we're to to the continue the all opportunities sure

a elements with to associated rules going be in we're them. commission. When turbines different the associated also storage by you and will all for pretty the time, dispatchable you the need that's the assets should for address such gas those of resources given methodology But are resources, MISO megawatts dispatchable and known the be you the accreditation the we've about batteries or help forward, At And help same need so impacts additional MISO, to and IRP as look especially excited time, And XXX at opportunity gigawatt same cases, peakers. DLOL storage with going necessary, of much between approved need the Templeton spinning at that it with you and all that. it.

You generation. more with you of look need scenarios, centers, the up that. will will you data most those at show regardless dispatchable likely form of in see that I that resources, when emphasize cash

But associated goal assets will frame XXXX of on most customer in doing at though just we see to you work continue you as through make of that, we focused what the those, our as XXXX of way. still it the associated are and from kind even with we're you're our interim that with sure -- potential in can beneficial I We those most look even like those looking it. be beyond look sort assets would term, say near in the time those though the -- goals

the the plan rules. years, much in then as EPA time of more further not Shawn which significantly So obviously, the with you goes significantly highlighted. And as out, potential there's additions move as then couple resource through next resource

Richard Sunderland

Great. work could firmed that going But you of -- say anything either getting upside some been center a again, kind with back zooming the Microsoft and then that that's the to summer there's front? here that? curious given lot else announcement, work And on the project if opportunity, more clear of out commercial on I to something going you big realize you've data the closer up on and that on to more about along anything plan? or could is out And say your kind there, base added Is there it of your forward efforts.

Lloyd Yates

think did is timetable but that activity. the the on is, activity primarily counterparty year, And last XXXX. and I of Microsoft center, all I XXXX is we're the data announce work think the point the the The with associated

Operator

with Your ISI. Durgesh line next Evercore Chopra comes from question the of

Durgesh Chopra

I in Is clarification. base to quick Templeton be that's this, first just on Just that clear correct? want Is Wind, the plan.

Lloyd Yates

upside to Yes. moved plan. We from the that just base the

Durgesh Chopra

Is to XX%, then close kind the And number even increase, it's substantial the I -- helpful. to And equity? front in more with capital getting believe, increase more recovery Shawn, the perhaps versus improvement you filings, bit a with was just the that you staying that regulatory an a called maybe, Perfect. to X more equity that, color this Or capital in talked to you this talked would Maybe the any don't know like out, X months. plan be is little but years, same, it issue this of just Okay. I XX%. that about you X around ROE? have in

Shawn Anderson

in a over our the XX% But the cash Appreciate across projections billion XXXX it, ahead in current the sub supports utilizing which to and were contribute marketplace to regulatory of Yes, the credit outperforming sure. structure. the we're terms horizon. the $X which in junior capital and quality, lag, note of seeing a allocation, in efficient on from course here it we Durgesh. higher really our maybe again, financing I'd funding, plan. helping worked systems, which more for financial efficient both year of initially That's minimizes more operations, key, A not flow about that's plan

capitalizing this some benefit made we're that and also. progress to of So we've on some already of date

Durgesh Chopra

it. Got

you mean I So have some breathing room with. to start

question, flat on just Okay. Final O&M.

had for now. guidance a You've years this few

well, there's generally, business, there. thinking has but understand, just With how maybe down, the I I comes but would capital program. you're large through come expenses, assume, inflation increase the in growth operating So that it's obviously, a higher still in that?

sort are go of extending thinking? to that financial latter Just you how as of the level flat sort O&M plans? your we What's years of in confidence

Lloyd Yates

So process And lower our in Durgesh, We I improve those mentioned to in using the asset work values and value talked there's at to safer, through lot cost. efficiencies. a about organization. better, think efficient AI opportunity I more and our and faster management and drive the NiSource for more schedule

when have. And just do So workforce year, lot our up the its and continue second hands we see in Project the Apollo is see and think at to more flat time we're getting on our whole with I future, you people has just a look I gone -- opportunity. and foreseeable more done O&M. there's

foreseeable So more we more for future see flat efficient. being effective by the being and

Operator

line Your next America. from Ross of question of comes Bank Fowler with the

Ross Fowler

capacity So you mentioned the sort remarks. of in MISO prepared

So next has. I for that they've Clearly, auction into a of bit. little also constructs just the to that PJM dig the wanted adopted some

for about you a Indiana what in And higher conversation rate result auction the of And with context there prices, vertically guess in sort questions related so going the next the like to integrated front and in get and happened the been. has then regulator model IRP in of the spring? to couple of takes talked saw that we risk of and it sort with feedback thing. case because the a time you sort we the allow IRP, that. Do timing do what in demand saw get of coming the and the data an centers you might capacity time, see of still feel of related what PJM How to we you I XXXX the build of to demand takes the X think time about being permitting years kind of generation, over right, sort the X, X, of sort by maybe the sort which the contextualize. and center [indiscernible] that we're and dispatchable build get of data ability So things? the you hearing and to

Lloyd Yates

Yes.

weigh me Let that start Mike in. can

to NIPSCO, we even integrated electricity, responsible for a we're You be think continue about part we vertically transmission though of serve where generation distribution. MISO, and utility,

advantage to in load. gives a MISO competitive market model I terms to speed these of us data the center some facilitate think of

think go add center we're those anything with conversations XXXX. Mike, can build think to And of can the as part respect into that? for what we loads match conversation load build to of it? of to data part the the pace or data will below the the the demand I center At of that XXXX. that's demand, I we to activity that speed, grows having

Michael Luhrs

includes the is stakeholders add The when only across through would go it process, it. thing we I IRP

may conversations already accreditation, which and storage to the it, MISO have EPA around requirements, sequestration those require been relative So the carbon scenarios gone.

means thing impact those with that we've what So would and having stakeholders data I been some only would and that, potential be to conversations the portfolios. The now introducing relative also that of what highlight want those centers they demand are aware requirements of say is associated would of with I and entities are we just to we activities, in well would addition what the do. through the working that

what disciplined also methodical we satisfy a our needs. meet methodical fashion, customer in demand fashion working in disciplined would as to I takes say a through it and So through work we're it and that to

Ross Fowler

does bit do seen in direction we clear, we've the you the into Or rules with given in MISO seen already get you've if capacity your headroom? And worry should conjunction do auction, about And that? of a VR MISO, they've you're et PJM? and Missouri going regulators? I I which then you the price the adopted that be cetera, in a I guess in know little on how of Should eat but high capacity capacity a in different think a that with same that kind about curve, zone,

Michael Luhrs

with so My others official the and been in reasons vertically the jump of be, has it. with that's be because to we would one for comment would provide then whatever associated and that as model on to have accreditation as that we associated bear top that reduction. margin comment can have integrated My it with to that what's requirements the the to reserve well is associated of brought

be at supply/demand So what we required scenario low what also megawatts additions, to I looking case why would of keep case in balance we're which X,XXX would like in the included doing say, we're the large and resource helping that and fundamentally, data reference potential associated the is -- supply/demand, by centers with upside. we're

what mitigate that lot focus of are that and model vertically on a of also So is, the always risk. customers helps integrated that impact though we I would that cognizant say

Operator

Your line next with Travis the Miller comes of question from Morningstar.

Travis Miller

in to technical of you've Good initially figure, then X to But given. put ground to you build technically need is another to the infrastructure data That's to this all center actually perhaps to and and data clarification short a clarification X clarifications a first of maybe and Do power just others? anything the in the term these build do question, couple anything, you of centers need the flow or get right? Center that question, more Microsoft online? allow

Lloyd Yates

Yes, low we we're kind of or about, would Microsoft demand facilitate the whether build it's need counterparty. to any talking to other

Travis Miller

maybe and And or is the first X for the -- transmission that X or Microsoft Center more generation for others?

Lloyd Yates

generation both require these of Most would investments transmission. and

Michael Luhrs

the that capacity entities. with with though, as from we great additional going all when would entities, a the transmission in sites to look have well high these add order associated have resources thing of meet we at have you that, The high are those and that to we load with demand as demand with only is But have infrastructure associated to add you reliability additional factor as do territory generation. and I what associated associated very beneficial before, in mentioned capability,

Travis Miller

Okay.

until So works build come that or can't Microsoft however, online that Center new out? literally, the new was generation announced you transmission,

Michael Luhrs

you're talking that just significant infer system. adding infer wouldn't from I associated when with the I that scale it. would about

saying be sure step in they would to without that that say, come any with reserve of make the associated You margins a that too online reliability sort would requirements, and it. place, of can't meeting have going I you're far

Travis Miller

right is What of terms gas you extended demand. Okay. Got CapEx different are how now in on it. seeing gas your demand? assumption? much And And growth then in gas and demand plan the new topic

Shawn Anderson

we seeing to territories, close at growth notably, seeing is net have We're system. basis, fair a still the grow most and to X% gas on Ohio to additions amount minus Virginia, we're service businesses. across continue of customer Central total continue a of for attrition extend ending customers the still about Yes, our net the number X%

to an economic service across forecast and electric a in little forecast relates to and demand to looks see to growth we total pipelines tend to few standpoint as customer a it tend onshoring additions. the the XX-month Economic that territory. close horizon basis. development from to support to and gas Therefore, manufacturers bit customer customer across battery continuing vehicle but hard predict. mute be for count X% have we're what can that to for our We bearish development continue the on examples other see We growth, we total for trailing be a

Operator

Your next question Moreen comes from of Securities. Gabe Mizuho the with line

Gabriel Moreen

may in second Can have accelerating gas any maybe part curve, customer a the ability down talk into as at or CapEx? you as color to change here? it just you CapEx on Columbia you jurisdictions various Are sort around any discrete the projects can about or just not changes since more question well the that, last a give following Just of the little may last forward X% plan X-year come which extent played has keep bills what increase point as then costing more? lower? to the to there step within work gas. to? And the up Are on you Is

Shawn Anderson

Yes.

question. I Gabe. appreciate bet, You the

So so of if a replacement change we're the call as don't glide the it step bare the what hardening much the will a I'd programs. gas be steel know work requirements completion necessarily for into seeing, I system that

Some starting investment, our continue. We as gas that are some customers. programs We we better would do like on, to to been plastic have efficiency and which focused service AMI up first-generation great pop for think drives well. replacement and new we've

compliance. included as that as So work well. there inspection some is well some continues as in-line transmission of IOI But

rules. requirements as could some the rulemaking detection the indications time that better give with on in expect compliance new year linked associated We lines well for PHMSA

that's gas right year, our itself. And the is which additional curve, year. forecast, in whole the of a average $X.XX. harden there's in for We've now the XX% allocation help the this for gas you're what to an NYMEX used do the territory to capital increases things by service that subsequent and system, then gas forward-look host terms about So next us in curve seeing the of in cost across XX%

already it projected up step gas a that horizon. included So costs pretty that's reflects across in fuel healthy that we've the inside

Operator

Your Ryan of next question with the comes Citi. Levine from line

Ryan Levine

to NiSource critical accelerate have enter market NIPSCO the for gas or your help any for that to been taken time could Are generation steps queue that customers? the infrastructure there for

Michael Luhrs

any specific effectively. that through commercial have positioning will those infrastructure, I infrastructure what's be required. All planning just we previous to what those level Yes. discussions. as get transmission, facilities with on been been we're question details of whether have there's require it have have needed done I asking and was wouldn't generation, been But associated going the et appropriately some based just to associated substation, these activities cetera. with calibrated -- as aware the we're relative appropriately that into we've and been we say ourselves

Lloyd Yates

gas One supplies of Marcellus the the to Shale. advantages of proximity is the Utica our and NIPSCO to

to opportunities, look in supply gas mean advantages I approximately at I proximity these mentioned system as robust think electric earlier, a for transmission critical we transmission just you the -- are So company.

Michael Luhrs

that. one And more add to I thing will

data of that in onshoring, Indiana. other and how beneficial benefit gas territories seeing very to other other across address our but look power to also it's gas areas. as not shortfalls it in are only they relative center in territories We just more that potential than activities see benefit areas We at and because for the

Ryan Levine

given type change costing to items the new added previously demand the And CapEx your maybe with associated increased items for additional in versus plan? infrastructure, of this maybe plan guidance CapEx of being a follow-up, more how much is

Shawn Anderson

on think for increase an or in inflationary don't versus reliability regulation change deliver Ryan, that calc us requirement to requirements, our we I what's for necessary a what's exact have compliance customers.

compliance the that regulation cost down. just of to whether is continue same headed. whether And work come from I think able is the that to MISO the work PHMSA parse FERC whether -- capital of from the that's and that's we to So really direction coming it it's increase. and from additional is driver coming wouldn't allocation But cost continues the EPA, driving increase, what's be cost the the see of to thematic answer the not

Operator

I now concludes will remarks. turn our That over to session. for Yates, closing back Lloyd the Q&A CEO, conference

Lloyd Yates

NiSource. Thank the in seeing for you financial for look interest at Thank forward we your of you you your for EEI your and thank And questions weeks. conference interest, of to today. a in all couple

Operator

This for concludes today's call. Thank you joining.

disconnect. now may You

NiSource (NI) 30 Oct 242024 Q3 Earnings call transcript