| Metric [Unit: USD Million] | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2023 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2022 |
|----------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Columbia Operations        | **953.7**  **[0001111711-24-000021_nix-20240331.htm:12]**  | **490.5**  **[0001111711-24-000032_nix-20240630.htm:41]**  | **426.7**  **[0001111711-24-000042_nix-20240930.htm:43]**  | N/A     | N/A     | N/A     | N/A     | N/A     |
| NIPSCO Operations          | **752.4**  **[0001111711-24-000021_nix-20240331.htm:12]**  | **597.4**  **[0001111711-24-000032_nix-20240630.htm:36]**  | **652.9**  **[0001111711-24-000042_nix-20240930.htm:36]**  | N/A     | N/A     | N/A     | N/A     | N/A     |

a4b6f5665ef7397dbf855ba9610337364e5d4d452cc064088b94fd64e0c9a75f

**Heating Degree Days [Days]**

**% Warmer than Normal HDD [%]**

**Nameplate Capacity [MW]**

**Storage Capacity [MW]**

**Cooling Degree Days [Days]**

**% Warmer than Normal CDD [%]**

**Columbia Operations Customers [Customers]**

a822c770568dfd8c73a71d4ae17c3fd5c091b6e65d5d885637c08fb5e448e254

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

cde378e617ca5b18d6d6e2951943070cc0b87b879f476a35f4781188eeecff2a

NiSource Inc. is an energy holding company that operates through two primary segments: Gas Distribution Operations and Electric Operations. The company provides natural gas distribution services to approximately 3.3 million customers across six states, including Ohio, Pennsylvania, Virginia, Kentucky, Maryland, and northern Indiana, through subsidiaries like NiSource Gas Distribution Group, Inc. and NIPSCO **[0001111711-24-000011_nix-20231231.htm:8]** **[0001111711-24-000032_nix-20240630.htm:35]** **[0001111711-24-000042_nix-20240930.htm:36]**. NiSource also focuses on generating power and transitioning its generation portfolio to include renewable energy and energy efficiency technologies **[0001111711-24-000011_nix-20231231.htm:31]** **[0001111711-24-000011_nix-20231231.htm:15]**. The company's strategy emphasizes safe and reliable service through rate-regulated utilities, infrastructure investment, and regulatory initiatives to enhance customer experience and reduce emissions **[0001111711-24-000011_nix-20231231.htm:8]** **[NI_3387289_3]** **[0001111711-24-000011_nix-20231231.htm:15]**.

1. **Gas Distribution Operations** - Distributes natural gas to residential, commercial, and industrial customers across six states, operating approximately 55,000 miles of distribution main pipeline and 1,000 miles of transmission main pipeline **[0001111711-24-000011_nix-20231231.htm:8]** **[0001111711-24-000032_nix-20240630.htm:35]** **[0001111711-24-000042_nix-20240930.htm:36]**.
2. **Electric Operations** - Generates power at central station power plants and is transitioning to include renewable energy, distributed generation, energy storage, and energy efficiency technologies, with regulatory mechanisms for fuel cost recovery **[0001111711-24-000011_nix-20231231.htm:31]** **[0001111711-24-000011_nix-20231231.htm:15]**.

2a705483d80e036ff8d20c84b2710936284b5ec83b5ff3d23b1cdf8f04cd7e0f

| Segment/Metric [Unit: $ Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Gas Distribution Operations**  | **1,504.4**  **[0001111711-23-000013_nix-20230331.htm:35]**  | **695.9**  **[0001111711-23-000026_nix-20230630.htm:14]**  | **531.5**  **[0001111711-23-000041_nix-20230930.htm:43]**  | N/A     | **953.7**  **[0001111711-24-000021_nix-20240331.htm:31]**  | **490.5**  **[0001111711-24-000032_nix-20240630.htm:13]**  | N/A     | N/A     |
| **Electric Operations**          | **464.7**  **[0001111711-23-000013_nix-20230331.htm:35]**    | **397.1**  **[0001111711-23-000026_nix-20230630.htm:14]**  | **499.1**  **[0001111711-23-000041_nix-20230930.htm:43]**  | N/A     | **752.4**  **[0001111711-24-000021_nix-20240331.htm:31]**  | **597.4**  **[0001111711-24-000032_nix-20240630.htm:13]**  | N/A     | N/A     |
| **Corporate and Other**          | **0.2**  **[0001111711-23-000013_nix-20230331.htm:35]**      | **123.0**  **[0001111711-23-000026_nix-20230630.htm:14]**  | **121.9**  **[0001111711-23-000041_nix-20230930.htm:43]**  | N/A     | **0.2**  **[0001111711-24-000021_nix-20240331.htm:31]**    | **139.1**  **[0001111711-24-000032_nix-20240630.htm:36]**  | N/A     | N/A     |
| **Total Operating Revenues**     | **1,966.0**  **[0001111711-23-000013_nix-20230331.htm:35]**  | **1,090.0**  **[0001111711-23-000026_nix-20230630.htm:14]**  | **1,027.4**  **[0001111711-23-000041_nix-20230930.htm:43]**  | N/A     | **1,706.3**  **[0001111711-24-000021_nix-20240331.htm:31]**  | **1,084.7**  **[0001111711-24-000032_nix-20240630.htm:36]**  | **1,076.3**  **[0001111711-24-000042_nix-20240930.htm:37]**  | N/A     |

200525139f9adc8bd51f5b1de64a670d815875f7d1a3fb714cc1bfe9088b8222

1. Given the recent issuance of **$500 million in junior subordinated debt** with **50% equity credit**, how does this impact your planned **$600 million ATM equity issuance for 2024**, and should we consider this debt as incremental to your equity needs?  **[NI_3397004_24]** 

2. With your peer utility receiving a **lower ROE** in their recent **Pennsylvania rate case** decision, can you provide more color on how this might impact your own rate case proceedings in the state, and what potential outcomes you foresee regarding settlement and timeline?  **[NI_3397004_17]** 

3. Considering the increasing interest in **data center development** within your **Northwest Indiana service area**, can you elaborate on the potential challenges to your infrastructure and how you plan to manage the risks associated with accommodating significant new load growth?  **[NI_3397004_23]** **[NI_3397004_1]** 

4. You mentioned that preliminary engineering on **MISO LRTP tranche 1 projects** indicates **higher costs exceeding original estimates**. How might these potential cost overruns impact your base financial plan, and what strategies do you have to mitigate these risks?  **[NI_3397004_7]** 

5. Given your commitment to **ESG initiatives**, including reducing methane emissions and achieving a **top AAA ESG rating**, how are you balancing the investments required for ESG initiatives with the need to maintain affordable energy prices for customers, and what challenges do you anticipate in achieving both goals?  **[NI_3397004_5]** 

ee682bcf20fcd00fa91868a3066fddf52cd82578ccebb34195f5892c6d4c274b

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

c9e7534b07beb9c42b2dc18a8f99e2b27b786c5f45f43bf9aac9c4c897c9ee16

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Non-GAAP Net Operating Earnings Per Share (NOEPS)**: $1.70 to $1.74, representing a 7.5% year-over-year growth rate from 2023 actual results  **[NI_3374231_2]** **[NI_3374231_7]** .
  2. **Annual EPS Growth Rate**: 6% to 8% from 2023 through 2028  **[NI_3374231_2]** .
  3. **Annual Rate Base Growth**: 8% to 10% over the 2023 to 2028 period  **[NI_3374231_2]** **[NI_3374231_7]** .
  4. **Capital Expenditures**: $16 billion over a 5-year period through 2028  **[NI_3374231_2]** **[NI_3374231_7]** .
  5. **Dividend**: 6% increase, positioning the annual dividend at the bottom half of the targeted payout ratio of 60% to 70%  **[NI_3374231_7]** .
  6. **FFO to Debt Ratio**: 14% to 16% through 2028  **[NI_3374231_7]** .
  7. **Equity Issuance**: Up to $600 million in ATM equity in 2024 and $200 million to $300 million annually from 2025 to 2028  **[NI_3374231_7]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EPS**: $1.70 to $1.74 for 2024  **[NI_3387289_1]** **[NI_3387289_6]** .
  2. **5-Year Adjusted EPS Growth Rate**: 6% to 8% from 2023 to 2028  **[NI_3387289_1]** **[NI_3387289_6]** .
  3. **Rate Base Growth**: 8% to 10% annually from 2023 to 2028  **[NI_3387289_1]** .
  4. **FFO-to-Debt Ratio**: 14% to 16% in all years of the plan  **[NI_3387289_1]** **[NI_3387289_6]** .
  5. **Base Capital Plan**: $16.4 billion through 2028  **[NI_3387289_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EPS Guidance for 2024**: $1.70 to $1.74, expecting to achieve the upper half of this range  **[NI_3397004_8]** **[NI_3397004_1]** .
  2. **Adjusted EPS Growth Rate**: 6% to 8% for 2023 to 2028  **[NI_3397004_1]** .
  3. **Rate Base Growth**: 8% to 10%  **[NI_3397004_1]** .
  4. **FFO to Debt**: 14% to 16% in all years of the plan  **[NI_3397004_1]** .
  5. **Equity Issuance**: Up to $600 million of equity in 2024 through ATM program and $200 million to $300 million annually thereafter  **[NI_3397004_24]** .
  6. **Capital Expenditure Plan**: $16.4 billion of investments, excluding upside CapEx or any data center load or investment  **[NI_3397004_9]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information from the Q3 2024 earnings call for NiSource, so the guidance metrics and period are not available.

1849411e1d6da6d6b206dc805acceab28507b49390d337cf0d8a12c0722ca848

e59ddeaf6f9c3497aa1d5c8415aa136c510b7be075a818d22f6849facba79d0d

334a6c80dfa648c1ef69461f7e71c9a4db46a8f0886d7fc3cf61cd285f89669d

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Lloyd M. Yates        | President and Chief Executive Officer                                    | February 2022    | Lloyd M. Yates has been serving as the President and CEO of NiSource Inc. since February 2022. He has over 40 years of experience in the energy industry  **[0001140361-24-016755_ny20014196x1_def14a.htm:21]** **[0001111711-24-000011_nix-20231231.htm:26]** .                                                                                |
| Shawn Anderson        | Executive Vice President and Chief Financial Officer                     | March 2023       | Shawn Anderson is the Executive Vice President and CFO of NiSource, having assumed this role in March 2023. He previously served as the Senior Vice President and Chief Strategy and Risk Officer  **[0001111711-24-000011_nix-20231231.htm:26]** .                                        |
| Melody Birmingham     | Executive Vice President and President, NiSource Utilities               | March 2023       | Melody Birmingham has held the position of Executive Vice President and President, NiSource Utilities since March 2023. She was previously the Executive Vice President and Chief Innovation Officer  **[0001111711-24-000011_nix-20231231.htm:26]** .                                     |
| Donald E. Brown       | Executive Vice President and Chief Innovation Officer                    | March 2023       | Donald E. Brown has been serving as the Executive Vice President and Chief Innovation Officer since March 2023. He was formerly the Executive Vice President and CFO of NiSource  **[0001111711-24-000011_nix-20231231.htm:26]** .                                                          |
| William Jefferson, Jr.| Executive Vice President, Operations and Chief Safety Officer            | July 2022        | William Jefferson, Jr. has been serving as the Executive Vice President, Operations and Chief Safety Officer since July 2022. He was previously the Station Director and Plant General Manager at STPNOC  **[0001111711-24-000011_nix-20231231.htm:26]** .                                  |
| Michael S. Luhrs      | Executive Vice President, Strategy and Risk Chief Commercial Officer     | March 2023       | Michael S. Luhrs has been serving as the Executive Vice President, Strategy and Risk Chief Commercial Officer since March 2023. He was previously a Senior Vice President at Alliant Energy  **[0001111711-24-000011_nix-20231231.htm:26]** .                                               |
| Kimberly S. Cuccia    | Senior Vice President, General Counsel and Corporate Secretary           | April 2022       | Kimberly S. Cuccia has been serving as the Senior Vice President, General Counsel, and Corporate Secretary since April 2022. She has held various positions within NiSource, including Vice President and Interim General Counsel  **[0001111711-24-000011_nix-20231231.htm:26]** .         |
| Melanie B. Berman     | Senior Vice President and Chief Human Resources Officer                  | June 2021        | Melanie B. Berman has been serving as the Senior Vice President and Chief Human Resources Officer since June 2021. She was previously the Executive Vice President and Chief Human Resources Officer of The Michaels Companies, Inc.  **[0001111711-24-000011_nix-20231231.htm:26]** .      |
| Michael W. Hooper     | Senior Vice President and President, NIPSCO                               | May 2020         | Michael W. Hooper has been serving as the Senior Vice President and President of NIPSCO since May 2020. He was previously the Senior Vice President of Regulatory, Legislative Affairs and Strategy at NIPSCO  **[0001111711-24-000011_nix-20231231.htm:26]** .                              |
| Gunnar J. Gode        | Vice President, Chief Accounting Officer and Controller                   | July 2020        | Gunnar J. Gode has been serving as the Vice President, Chief Accounting Officer, and Controller since July 2020. He was previously the Vice President and Controller of Washington Gas  **[0001111711-24-000011_nix-20231231.htm:26]** .                                                     |

7a9d38e002505fce1153ff67045baf4edc127ee7793a74cd2948866927ff1484

Columbia Operations

- Unaffiliated Revenue

- Intersegment Revenue

NIPSCO Operations

Corporate and Other

Eliminations

Total Revenue

0b1086e2db4215e49fc76de522afe4b7da705a9900a42a7d319f6835a19e40ef

**Annual guidance for FY 2024:**
- **Adjusted EPS**: $1.70 to $1.74  **[NI_3404659_6]**  (no change from $1.70 to $1.74  **[NI_3397004_8]** **[NI_3397004_1]** )

**Annual guidance for FY 2025:**
- **Adjusted EPS**: $1.84 to $1.88  **[NI_3404659_2]** **[NI_3404659_6]**  (no prior guidance)

**Other multi-year guidance:**
- **Rate Base Growth**: 8% to 10%  **[NI_3404659_6]**  (no change from 8% to 10%  **[NI_3397004_1]** )  
- **FFO to Debt**: 14% to 16%  **[NI_3404659_6]**  (no change from 14% to 16%  **[NI_3397004_1]** )  
- **Capital Plan**: $19.3 billion plus $1.8 billion upside  **[NI_3404659_5]**  (raised from $16.4 billion  **[NI_3397004_9]** )

0749247a404c1ca370303fcafe66b48e1566dca6caa2c7920c39efcaf3d1ebff

| Name                 | Start Date | End Date | Reason for Change |
|----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 2002  **[0001111711-24-000011_nix-20231231.htm:101]**    | Present  | Current auditor   |

30413756d8f8ec7b590c2b5461ece0396060fd4519d95cf6160918b083ae140d

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,076.3 million (+5% YoY)  **[0001111711-24-000042_nix-20240930.htm:5]** **[0001111711-24-000042_nix-20240930.htm:14]** **[0001111711-23-000041_nix-20230930.htm:6]** **[0001111711-23-000041_nix-20230930.htm:14]**   
- Operating Income (EBIT): $218.3 million (-6% YoY)  **[0001111711-24-000042_nix-20240930.htm:5]** **[0001111711-23-000041_nix-20230930.htm:6]**   
- Corporate & Other Segment Revenue: $30.2 million (down **75%** YoY)  **[0001111711-24-000042_nix-20240930.htm:37]** **[0001111711-24-000042_nix-20240930.htm:13]** **[0001111711-23-000041_nix-20230930.htm:43]**   
- Depreciation & Amortization: $269.5 million (up **28%** YoY)  **[0001111711-24-000042_nix-20240930.htm:5]** **[0001111711-23-000041_nix-20230930.htm:6]**   
- Diluted EPS: $0.19 (+6% YoY)  **[0001111711-24-000042_nix-20240930.htm:5]** **[0001111711-23-000041_nix-20230930.htm:6]**   

9acd715d6a1a705605194545c61886c6586892a65974a909152ef4576a2ba836

54b972f35c95cee1bcfcad144580a00060ddbed3efc5ac3fb0086508ff2eca02

e9a06208b1bda37c2f80feb60ac0050ed8c354d3c4e445b6701b553ac9e93c14

a607daa7fd94f6f791967973f5aad91362f6c293be7048fb7b00207dd1ba4f74

- **Significant Growth Opportunities in Data Center Development**: NiSource is experiencing "a lot of interest" from data center developers in Northern Indiana due to favorable policies like the **2019 sales tax exemption for data centers**, excellent infrastructure, and supportive stakeholders  **[NI_3397004_11]** . This presents "a significant opportunity to grow the company"  **[NI_3397004_11]** .
- **Potential for Substantial Load Growth**: In their Integrated Resource Plan (IRP), NiSource is considering scenarios with incremental load growth of **2.6 GW to 8.6 GW by 2035**, representing up to a "**100% increase to our peak load system**"  **[NI_3397004_18]** . This load growth is driven by data center and economic development opportunities  **[NI_3397004_18]** .
- **Earnings Growth Above Current Guidance**: NiSource has a "real strong plan" to "grow **6% to 8%**" and has "executed that growth over the past 3 years"  **[NI_3397004_11]** . The data center opportunities are considered "upside to that plan," potentially leading to earnings growth above current guidance  **[NI_3397004_11]** .

f5bfa7d9d23ec8729912cb8c4aaf85c36498dd9f01fb099ae60812257a5f85e4

1. **Data Center Investments and CapEx Impact**  
   **Q:** What's driving data center opportunities and CapEx impact?  
   **A:** NiSource sees data center investments as a significant incremental opportunity, primarily a **2025 activity**. They're progressing discussions with counterparties in a disciplined manner. The existing **$19.3 billion** capital plan is fully financed, but the **$1.8 billion of potential upside CapEx**, mainly from data centers, may require modest equity depending on cash flow and regulatory mechanisms. These investments are not in the base plan but may impact financing needs when incorporated.  **[NI_3404659_8]** ,  **[NI_3404659_9]** 

2. **Equity Financing Needs with Increased CapEx**  
   **Q:** Will increased CapEx require more equity financing?  
   **A:** The base **$19.3 billion** capital plan is fully financed without additional equity. However, the potential **$1.8 billion** in upside CapEx for data centers may necessitate modest equity based on project cash flows and sequencing. The company has been optimizing capital allocation, minimizing regulatory lag, and improving cash flow from operations to support financing needs.  **[NI_3404659_9]** ,  **[NI_3404659_14]** 

3. **2.6 GW Data Center Load in IRP**  
   **Q:** Can you provide details on the 2.6 GW data center load in the IRP?  
   **A:** The **2,600 megawatts** in the IRP reflects potential generation assets needed, including investments in storage and combined cycle gas turbines (CCGTs). The IRP includes multiple scenarios, covering a range of outcomes up to **6,000 megawatts**. Specific details on the cost per kilowatt and ownership structures are not available at this time. These resources are crucial to meet accreditation methodologies and dispatchable resource needs in the MISO region.  **[NI_3404659_10]** ,  **[NI_3404659_11]** ,  **[NI_3404659_12]** 

4. **Microsoft Data Center Project Timing**  
   **Q:** What's the status and timing of the Microsoft data center project?  
   **A:** The data center activity, including the Microsoft project announced last year, is primarily a **2025 activity**. NiSource is working methodically with counterparties to finalize plans. Infrastructure investments in generation and transmission will be required to support this load demand.  **[NI_3404659_13]** ,  **[NI_3404659_18]** ,  **[NI_3404659_19]** 

5. **Flat O&M Guidance Extension**  
   **Q:** Can you maintain flat O&M with increased CapEx?  
   **A:** NiSource expects to keep O&M expenses flat by improving efficiency and effectiveness. Initiatives like **Project Apollo** are enhancing operations, and there's a focus on digital transformation and process improvements. The company believes there's significant opportunity to continue this trend into the foreseeable future despite capital program growth.  **[NI_3404659_15]** 

6. **MISO Capacity Auction Impact**  
   **Q:** How will MISO capacity auction changes affect you?  
   **A:** As a vertically integrated utility, NIPSCO is responsible for generation, transmission, and distribution, which helps mitigate risks from MISO capacity market changes. The company is planning resource additions to balance supply and demand, and is engaged in conversations with regulators and stakeholders through the IRP process to address accreditation reductions and resource needs.  **[NI_3404659_16]** ,  **[NI_3404659_17]** 

7. **Gas Demand Growth and CapEx Increase**  
   **Q:** What's driving gas demand and CapEx increase?  
   **A:** NiSource is seeing gas demand growth, especially in Virginia and Central Ohio, with net customer additions around **1%**. The increase in the gas CapEx plan is due to system hardening work, including bare steel and first-generation plastic replacement programs, in-line inspections, and compliance with upcoming PHMSA regulations. The capital increase is driven by additional work, not higher costs for existing work.  **[NI_3404659_20]** ,  **[NI_3404659_21]** 

8. **Critical Gas Generation Infrastructure Steps**  
   **Q:** Are you taking steps for critical gas generation infrastructure?  
   **A:** NiSource is adequately planning and positioning itself to meet demand requirements, including infrastructure needs for data centers. While specifics aren't disclosed, the company is leveraging its proximity to gas supplies like the Utica and Marcellus Shales, which is a critical advantage in facilitating these projects.  **[NI_3404659_22]** ,  **[NI_3404659_23]** 

9. **Generation Needs Regardless of Data Centers**  
   **Q:** What generation is needed if data centers don't materialize?  
   **A:** Regardless of data center load, the IRP indicates a need for additional resources such as storage (between **500 megawatts and 1 gigawatt**) and dispatchable resources like gas turbines or peakers to meet MISO accreditation and reliability requirements. These additions are mostly projected beyond **2029**, aligning with EPA rules and accreditation methodologies.  **[NI_3404659_12]** 

10. **Templeton Wind Project in Base Plan**  
    **Q:** Is Templeton Wind now in your base plan?  
    **A:** Yes, the **Templeton Wind project** has been moved from the upside to the base capital plan. This reflects NiSource's ongoing efforts to maximize benefits to customers and stakeholders through company-owned generation assets and is subject to regulatory approval.  **[NI_3404659_14]** 

7f6c873527c84319ae8d1d171d46da78547bbb1d2b0736379f356c81c9b1e9d6

- **Robust economic development** in NiSource's service territories, including manufacturing reshoring and projects like **Intel's investment in Columbus**, is providing significant growth opportunities, especially in **Ohio and Indiana**.  **[NI_3387289_13]**
- NiSource has identified a **$1.6 billion** pipeline of upside capital investment opportunities, particularly in **Ohio, Indiana, and Pennsylvania**, driven by new regulatory requirements, which could enhance future growth.  **[NI_3387289_12]**
- The company is engaged in **constructive regulatory processes**, with rate cases progressing well, such as the **Pennsylvania rate case**, supporting future growth and investment plans.  **[NI_3387289_10]**

93ea5fd8fec0325b2e2ba944a6468962006af5925d6e1328cf97c78cd950263f

1. **Data Center Opportunities**  
   **Q:** When will data center opportunities be included in plans?  
   **A:** CEO Lloyd Yates expressed excitement about significant data center opportunities in Northern Indiana due to its attractive location and infrastructure. They are in conversations with stakeholders and expect to provide more clarity by **EEI or later this year**. They are ensuring data centers benefit shareholders, work for current customers without increasing their risks, and maintain reliability.  **[NI_3397004_11]** 

2. **Load Growth and 2024 Guidance**  
   **Q:** Is 2025-2026 growth above 7% achievable given current trends?  
   **A:** CFO Shawn Anderson acknowledged tailwinds like **5% load growth** in the quarter but cited headwinds such as capital market volatility and financing costs. They plan to maintain **6%-8%** annual growth, focusing on thoughtful financing and regulatory outcomes to offset uncertainties.  **[NI_3397004_12]** 

3. **Financing Plans and Equity Issuance**  
   **Q:** Will additional capital require more equity financing?  
   **A:** Shawn Anderson stated there's no rule of thumb due to varying project cash flows. They aim to maintain **14%-16%** equity in all years of the plan. The **$500 million** junior subordinated debt issued in May is incremental to the **$600 million** ATM equity planned for 2024, enhancing their equity cushion amid headwinds like lower cash receipts due to warm weather.  **[NI_3397004_14]** **[NI_3397004_24]** **[NI_3397004_25]** 

4. **Impact of Load Growth on Bill Growth**  
   **Q:** How will increased load affect customer bills?  
   **A:** Shawn Anderson noted they haven't yet incorporated data center load growth into financial plans but are committed to keeping residential bill increases at or below **4%**. Data centers could provide upside by sharing system costs, potentially offsetting costs and aiding affordability.  **[NI_3397004_13]** **[NI_3397004_15]** 

5. **Potential Large Load Increases and IRP Scenarios**  
   **Q:** What load growth is expected through partnerships?  
   **A:** In their Integrated Resource Plan (IRP), they project an incremental **2,600 MW** load growth by 2035, representing a **100%** increase to peak load. They are also considering scenarios with an additional **6,000 MW** based on data center interest and economic development.  **[NI_3397004_18]** **[NI_3397004_22]** 

6. **MISO Projects and Investment**  
   **Q:** How much of MISO's tranche 2 is relevant to you?  
   **A:** For tranche 1, they estimate around **$300 million** in projects but expect it may require more investment to execute safely. Tranche 2 estimates are still early; updates are expected in their November capital plan refresh. Most tranche 2 projects have service dates in the early **2030s**.  **[NI_3397004_10]** 

7. **Pennsylvania Rate Case Status**  
   **Q:** What's the outlook for the Pennsylvania rate case?  
   **A:** Melody Birmingham said they are engaging with stakeholders and working toward settlement discussions. They aim for win-win outcomes for customers and shareholders but do not yet know if a settlement is possible.  **[NI_3397004_17]** 

8. **Gas Business Opportunities with Data Centers**  
   **Q:** Are you seeing more gas demand from data centers?  
   **A:** Lloyd Yates acknowledged opportunities to build more gas infrastructure to support data centers, especially in Ohio and Virginia. Supplying gas to data centers, like the Digital Dallas project in Virginia, is an opportunity not currently reflected in their capital plan.  **[NI_3397004_20]** **[NI_3397004_21]** 

d40dfb48c4622d88700ab9828c2bc9de1231e26a23e449526c4e82420a30b6f1

- **Reliance on Potential Load Growth that May Not Materialize:** NiSource's growth projections include significant potential load growth from data centers and economic development, with scenarios adding up to **8.6 gigawatts by 2035**, representing a **100% increase** to current peak load. This reliance on uncertain future load growth poses risks to achieving projected growth.  **[NI_3397004_18]** **[NI_3397004_22]**
- **Unanticipated Capital Expenditures Could Pressure Financials:** Preliminary engineering on MISO long-range transmission projects indicates **higher costs exceeding original estimates**. These additional capital expenditures are **not included in the $16.4 billion base capital plan**, potentially leading to financial pressure.  **[NI_3397004_7]**
- **Delay in Incorporating Data Center Opportunities into Plans:** Management has indicated they need more time before embedding data center opportunities into financial plans, planning to provide more clarity **at EEI or later in the year**. This delay could impact the growth outlook.  **[NI_3397004_11]** **[NI_3397004_22]**

0d771b455f6b179e3894bb6f4cfeb765a92aae2157a395afa764270f6f153e3d

| Year  | Amount Due (Millions) | Debt Type                                   | Interest Rate (%) | % of Total Debt                                                                 |
|-------|------------------------|--------------------------------------------|-------------------|--------------------------------------------------------------------------------|
| 2029  | $600.0                | Senior Unsecured Notes                     | 5.200             | 4.5% = (600.0 / 13,357.5) * 100 **[0001111711-24-000042_nix-20240930.htm:7]** **[0001111711-24-000042_nix-20240930.htm:22]**                                |
| 2034  | $650.0                | Senior Unsecured Notes                     | 5.350             | 4.9% = (650.0 / 13,357.5) * 100 **[0001111711-24-000042_nix-20240930.htm:7]** **[0001111711-24-000042_nix-20240930.htm:22]**                                |
| 2054  | $500.0                | Fixed-to-Fixed Reset Rate Junior Sub Notes | 6.950             | 3.7% = (500.0 / 13,357.5) * 100 **[0001111711-24-000042_nix-20240930.htm:7]** **[0001111711-24-000042_nix-20240930.htm:22]**                                |
| 2055  | $500.0                | Fixed-to-Fixed Reset Rate Junior Sub Notes | 6.375             | 3.7% = (500.0 / 13,357.5) * 100 **[0001111711-24-000042_nix-20240930.htm:7]** **[0001111711-24-000042_nix-20240930.htm:22]**                                |

4838b5db009b0a018c7f36360b227b86b8d05f46d5247999552f947ae2ae48d0

1. **Data Center Growth Potential**  
   **Q:** What's the impact of data centers on your plans?  
   **A:** We see significant opportunity to grow our load with data centers in Northern Indiana due to our robust transmission system, plentiful land, available energy capacity, and favorable energy policies. We're in discussions with several data center developers and are optimistic about this growth, but we don't have specifics yet to include in our IRP and load growth projections.  **[NI_3387289_7]** **[NI_3387289_8]** **[NI_3387289_9]** 

2. **$1.6 Billion Upside Capital**  
   **Q:** What projects could shift into the base plan from the $1.6 billion upside, and how will you fund them?  
   **A:** Potential projects include electric generation based on our 2021 IRP, gas infrastructure work around PIMS requirements, electric transmission and distribution like MISO Tranche 1 and Tranche 2, grid modernization, and economic development initiatives such as data centers. We'll evaluate financing as these projects arise, aiming for accretive investments that benefit our customers and shareholders, leveraging our efficient regulatory mechanisms.  **[NI_3387289_8]** **[NI_3387289_12]** 

3. **Data Centers and IRP Timing**  
   **Q:** Will data centers impact your plan before the 2024 IRP?  
   **A:** Yes, data center opportunities could develop faster than the IRP process. Developers are looking for utilities that can move quickly, and we're positioning ourselves to meet that demand, potentially bringing benefits sooner than expected.  **[NI_3387289_9]** 

4. **Pennsylvania Rate Case and NIPSCO Deferral**  
   **Q:** What's the status of the Pennsylvania rate case and the NIPSCO deferral?  
   **A:** The Pennsylvania rate case filed on March 15 is progressing well with ongoing stakeholder engagement to mitigate surprises. We expect an order on the NIPSCO gas rate case this summer, and the deferral mechanism should prevent any negative financial impact on our plan.  **[NI_3387289_10]** **[NI_3387289_11]** 

5. **Funding and ATM Issuance**  
   **Q:** How much ATM issuance have you completed year-to-date?  
   **A:** We've completed approximately **one-third** of our ATM issuance to date.  **[NI_3387289_16]** 

6. **PHMSA Rules Impact on CapEx**  
   **Q:** What do you need from PHMSA's final rulemaking to trigger capital opportunities?  
   **A:** We're actively involved in the PHMSA rulemaking process, which focuses on grading leaks, repair timelines, and leak detection methods. We expect the rules to be finalized by the end of 2024, leading to capital upside in the middle of our plan as we develop compliance plans within 18 months and integrate them into our capital plan within 36 months.  **[NI_3387289_15]** 

7. **Manufacturing vs. Data Centers**  
   **Q:** How does manufacturing compare to data centers in growth potential?  
   **A:** Economic development beyond data centers is strong, particularly with reshoring of manufacturing like the Intel project in Ohio and battery plants in Indiana. We're strengthening our economic development efforts to capitalize on these opportunities, supported by significant incentives in our jurisdictions.  **[NI_3387289_13]** 

8. **Gas Jurisdictions with Most Upside**  
   **Q:** Which gas jurisdictions have the most upside potential?  
   **A:** Ohio, Indiana, and Pennsylvania present the most significant capital investment opportunities from regulatory rules within our $1.6 billion upside, but we see opportunities across all our jurisdictions.  **[NI_3387289_12]** 

9. **Technology Capital Deferral Mechanism**  
   **Q:** How much capital could flow through the technology capital deferral mechanism?  
   **A:** Approximately **$250 million** in project costs are forecasted across NiSource, with about **$150 million** flowing through NIPSCO on both electric and gas sides. This mechanism covers one-time O&M and some depreciation and amortization expenses.  **[NI_3387289_14]** 

da1ca0b685c409efa8608d02d8ed2885bf0e24fda48b3f822312ebf379b3947b

1. **Equity Financing Plans**  
   **Q:** Have you executed any of the $600 million ATM equity program, and can you explain the potential for private placements?  
   **A:** Shawn Anderson stated they have not executed any of the up to **$600 million** ATM program anticipated for 2024, as the previous program expired at the end of 2023, and they plan to file a new one soon.  **[NI_3374231_15]**  He mentioned they may consider potential bilateral or discrete agreements within the ATM, allowing investors to transact directly with sales agents, which would then be placed under the ATM.  **[NI_3374231_15]** 

2. **Earnings Growth Guidance**  
   **Q:** Are you comfortable with your position within the 6%-8% growth guidance range?  
   **A:** Lloyd Yates indicated they raised guidance based on strong 2023 performance, targeting **$1.70 to $1.74** EPS for 2024, which implies a **7.5%** growth.  **[NI_3374231_12]**  They are comfortable with these guidance ranges but are not specifying where they fall within the 6%-8% range at this point.  **[NI_3374231_12]** 

3. **Renewables Investment Timing**  
   **Q:** How are you thinking about the timing of layering the renewables investment and ownership upside into the plan, and can you sequence cash flows without additional equity financing?  
   **A:** Michael Luhrs explained they are methodically evaluating projects like Gibson and Fairbanks, which are part of a **$2 billion** CapEx upside, and expect to provide a full update in Q2.  **[NI_3374231_10]**  Shawn Anderson added that financing these projects may involve evaluating cash flow profiles and could potentially require a modest increase associated with the ATM to maintain the capital structure when accessing the upside CapEx plan.  **[NI_3374231_10]** 

4. **Gas CapEx Allocation**  
   **Q:** How much of your gas CapEx plan is attributed to base spending versus new expansion opportunities?  
   **A:** Shawn Anderson noted that nearly all gas CapEx is for safety, reliability, and compliance work, supporting regulatory requirements.  **[NI_3374231_18]**  They don't plan significant future expansion costs into the CapEx guidance since such projects are often supported by incoming revenues.  **[NI_3374231_18]** 

5. **Asset Optimization Opportunities**  
   **Q:** Are there opportunities to optimize assets to fund growth, similar to recent industry transactions?  
   **A:** Lloyd Yates stated they are always reviewing options to enhance shareholder value but are currently focused on their organic plan of investing **$16 billion** with a potential upside of **$2 billion**.  **[NI_3374231_17]**  While they like the scale and diversification of their six operating companies, they are open to more efficient capital-raising opportunities but remain focused on the organic plan.  **[NI_3374231_17]** 

6. **NIPSCO Electric Rate Case Timing**  
   **Q:** What is the status of the next NIPSCO electric rate case, and how much renewable spending will be captured?  
   **A:** Lloyd Yates mentioned they have not filed an electric case yet but plan to align it with the completion of renewable projects to keep the gap small.  **[NI_3374231_14]**  Currently, the renewable projects are on schedule, and they'll provide updates when possible.  **[NI_3374231_14]** 

7. **Pennsylvania Rate Case Filing**  
   **Q:** Are you still planning to file a rate case in Pennsylvania this year?  
   **A:** Management confirmed they filed a notice of intent for Pennsylvania and are working through the details of when to file.   

e9aa9cab0cd929c0a9c0bfed8345b082d94e6428981d5e2ebeb8ab91f8fdc2b2

- **Potential dilution due to planned equity issuances of up to $600 million in 2024 and $200–$300 million annually from 2025 to 2028, which could suppress earnings per share growth and shareholder value**.  **[NI_3374231_16]**
- **Uncertainty regarding the financing and timing of renewable projects, with possible additional equity financing needed to fund $1–$2 billion in upside capital expenditures, posing risks to the company's capital structure and potentially leading to further dilution**.  **[NI_3374231_15]**
- **Higher interest expenses and increased debt levels, as evidenced by a $128 million increase in interest expense in 2023, could pressure earnings and constrain financial flexibility in a high cost of capital environment**  **[NI_3374231_6]** ,.  **[NI_3374231_3]**

379238d1e83cd6be7e00b9ce2b96ee72171ae9d40b6069f60c079cd6e59395e2

- **Regulatory uncertainties may impact projects and financials**: NiSource acknowledges that "with all cases, they're uncertain", referring to ongoing rate cases like the Pennsylvania rate case, which may affect outcomes and timing.  **[NI_3387289_10]**
- **Dependence on stakeholder alignment could delay capital investments**: The company emphasizes that "stakeholder alignment is critical, and so the timing to implement the rules will matter as you think about our current CapEx plan", suggesting potential delays in executing capital projects.  **[NI_3387289_12]**
- **Potential equity needs may dilute shareholder value**: NiSource may need to raise additional equity capital through mechanisms like the ATM issuance to finance the **$1.6 billion** in upside capital projects, which could dilute existing shareholders' value.  **[NI_3387289_8]**

23877af30286c5c733453f2afbbd1d09ed0e16474ed620b32e3413b79dbb5725

- **NiSource is confident in maintaining its 6% to 8% long-term EPS growth**, supported by programmatic investments and effective regulatory mechanisms, even in the current market environment with flat commodity prices and higher interest rates.  **[NI_3363249_21]** **[NI_3363249_25]**
- **The partnership with Blackstone is expected to unlock additional growth opportunities**, including economic development, onshoring manufacturing, and increasing NIPSCO's load, which could enhance revenue and profitability for NiSource.  **[NI_3363249_16]**
- **Renewable projects are progressing as planned without significant supply chain disruptions**, with expected in-service dates on track, contributing to NiSource's clean energy transition and cost benefits to customers.  **[NI_3363249_19]** **[NI_3363249_9]**

a56c6a0d5eb290ed32ce8773ead7f3e22e24f3b0045df50d9259bf012b26b51e

- **NiSource plans to invest $16 billion** in its organic growth plan with a **potential upside of $2 billion**, demonstrating a strong commitment to future growth and value creation.  **[NI_3374231_17]** **[NI_3374231_13]**
- The company **raised its 2024 guidance**, implying a **7.5% year-over-year growth rate**, reflecting confidence in achieving the higher end of its **6% to 8% growth target**.  **[NI_3374231_12]**
- NiSource's subsidiary **NIPSCO's generation transition remains on track**, with progress in renewable projects like **full ownership of Cavalry and Dunns Bridge II** solar facilities, advancing towards the goal of **net zero by 2040** and delivering benefits to customers through efficient monetization of tax credits.  **[NI_3374231_4]**

aeac760653251134cf68245773002711097686777e73bd5efbf0d3b955125bfb

- **NiSource's increased capital expenditure plans, including an additional $1.15 billion from 2024 to 2027**, may pressure their financing needs and could lead to higher debt levels or equity dilution.  **[NI_3363249_18]**
- The company's financing plan **assumes raising $863 million through the remarketing of equity units in 2023**; failure to execute this may challenge their financing strategy or require adjustments to capital expenditures, potentially impacting growth.  **[NI_3363249_11]**
- **NiSource's financial projections are based on natural gas prices of $4 per MMBtu**, higher than current prices of $2 to $3; if gas prices remain low, this could affect earnings projections and customer bill assumptions, impacting financial performance.  **[NI_3363249_14]**

b280fcae6f99c110b798688466e82d49b3e7274f7805fda3caf1ce7e0476d49d

NiSource Inc (NI)

Financials