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Wednesday, October 31, 2018
NIPSCO Announces "Your Energy, Your Future" Initiative
MERRILLVILLE, Ind., Oct. 31, 2018 /PRNewswire/ -- Northern Indiana Public Service Company LLC (NIPSCO), a subsidiary of NiSource Inc. (NYSE: NI), unveiled an initiative today to transition customers to a more affordable and sustainable energy mix. Referred to as "Your Energy, Your Future", the effort detailed in the company's 2018 Integrated Resource Plan, lays out a forward-looking blueprint to transition Northern Indiana's energy generation away from coal toward cleaner, more efficient and cost-competitive renewable energy sources. 

"Customers want what's best for their families: Energy that is affordable, reliable and sustainable. NIPSCO's new plan puts them front and center," said NIPSCO president Violet Sistovaris. 

"We have the opportunity to invest in balanced options that will deliver more cost-effective and cleaner energy for our customers. The 'Your Energy, Your Future' initiative envisions a brighter future that delivers the energy our customers need while reducing emissions and focusing on the long-term strength of our local economy," Sistovaris added.

The company also submitted a request to modify its existing electric rates to support changes in electric generation and service to customers. Over the long term, the changes NIPSCO is making will equate to more than $4 billion in cost savings for customers. Becoming coal-free will also improve the region's environment, reducing carbon emissions by more than 90 percent by 2028.

The two filings with the Indiana Utility Regulatory Commission (IURC) are the result of a comprehensive analysis of NIPSCO's future energy mix and months of meetings with customers, employees and local community leaders. With this direction, NIPSCO will pursue a more affordable and cleaner electric supply balance while maintaining flexibility for the technology and market changes ahead.

TRANSITIONING ELECTRIC GENERATION

To invest in a more balanced mix of energy generation to meet customer needs, the "Your Energy, Your Future" initiative accelerates the anticipated retirement of NIPSCO's five remaining coal-fired units and a transition to cleaner, more cost-efficient renewable energy. Under the plan, the company will retire Units 14, 15, 17 and 18 at the R.M. Schahfer Generating Station in Wheatfield, Ind. no later than 2023 and Unit 12 at the Michigan City Generating station in Michigan City, Ind. by 2028.

Operation of NIPSCO's existing natural gas-fired Sugar Creek Generating Station in West Terre Haute, Ind. and the Norway and Oakdale hydroelectric dams along the Tippecanoe River will continue.

While still too early to announce workforce changes, the company plans to coordinate with internal and outside regional and statewide partners to reduce the impact of the transition over the next five to 10 years.

To replace the coal-fired plants, NIPSCO anticipates pursuing largely renewable energy resources – such as solar and wind energy – combined with battery storage technology. The timeline for retirement is faster than indicated in NIPSCO's last IRP, as the energy market has since produced more competitive and cost-effective options for NIPSCO customers.

FOCUSED ON AFFORDABLE ENERGY

Though customers will realize savings over the long term – largely through lower fuel costs from increased use of renewable energy and the avoidance of costs associated with maintaining and upgrading aging facilities – NIPSCO's separate request to adjust electric rates proposes an increase for customers to support the transition.

"We know that every dollar matters to our customers, so we want to be upfront about shorter-term shifts some of our customers will see in their bills during this transition," said Sistovaris. "This proposal allows us to provide the level of service our customers expect, it addresses changes in the way major industrial customers will acquire electricity and it proposes new assistance programs for income-eligible customers."

NIPSCO's proposal must be reviewed and approved by the IURC, and the nearly yearlong process includes direct input from customers and the public. Under NIPSCO's request, newly proposed electric rates would be phased in over two steps in September 2019 and March 2020. The average residential customer would see an $11 per month increase – or 12 percent – in their electric bill. Included is a proposal to increase the existing, fixed monthly customer charge by $3 per month.

NIPSCO's request represents an increase in annual revenue of $21 million. While the company already offers a range of energy savings and weatherization programs, NIPSCO highlighted its commitment to working to identify and create a new electric bill payment assistance and home weatherization program for income-eligible customers.

The primary drivers of the proposed increase include investments in upgrading electric infrastructure, environmental upgrades and a shift in the way some large industrial customers will obtain electricity in the future. 

Meanwhile, NIPSCO's electric rates remain below the national average, and the company remains focused on improving service through investments to minimize outages, provide better overall response and information to customers when outages occur and help customers save energy and money.

By creating a path toward the sustainable energy future customers want, NIPSCO's Your Energy, Your Future initiative positions northern Indiana as a leader in creating a stronger, more cost-effective and cleaner balance of energy, and stands to make the region more competitive.

Learn more at NIPSCO.com/YourEnergy.

About NIPSCO: Northern Indiana Public Service Company LLC (NIPSCO), with headquarters in Merrillville, Indiana, has proudly served the energy needs of northern Indiana for more than 100 years. As Indiana's largest natural gas distribution company and the second-largest electric distribution company, NIPSCO serves approximately 820,000 natural gas and 460,000 electric customers across 32 counties. NIPSCO is part of NiSource's (NYSE: NI) seven regulated utility companies. NiSource is one of the largest fully regulated utility companies in the United States, serving approximately 4 million natural gas and electric customers through its local Columbia Gas and NIPSCO brands. More information about NIPSCO and NiSource is available at NIPSCO.com and NiSource.com.

About NiSource NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.5 million natural gas customers and 500,000 electric customers across seven states through its local Columbia Gas and NIPSCO brands. Based in Merrillville, Indiana, NiSource's approximately 8,000 employees are focused on safely delivering reliable and affordable energy to our customers and communities we serve. NiSource has been designated a World's Most Ethical Company by the Ethisphere Institute since 2012, is a member of the Dow Jones Sustainability - North America Index and was named by Forbes magazine as the top-rated utility among America's Best Large Employers in 2017. Additional information about NiSource, its investments in modern infrastructure and systems, its commitments and its local brands can be found at www.NiSource.com. Follow us at www.facebook.com/nisource, www.linkedin.com/company/nisource or www.twitter.com/nisourceinc. NI-F

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws. Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of those factors could cause actual results to differ materially from those projected. Examples of forward-looking statements in this press release include statements and expectations regarding NiSource's or any of its subsidiaries' business, performance, growth, commitments, investment opportunities, and planned, identified, infrastructure or utility investments. All forward-looking statements are based on assumptions that management believes to be reasonable; however, there can be no assurance that actual results will not differ materially. Factors that could cause actual results to differ materially from the projections, forecasts, estimates, plans, expectations and strategy discussed in this press release include, among other things, NiSource's debt obligations; any changes in NiSource's credit rating; NiSource's ability to execute its growth strategy; changes in general economic, capital and commodity market conditions; pension funding obligations; economic regulation and the impact of regulatory rate reviews; NiSource's ability to obtain expected financial or regulatory outcomes; any damage to NiSource's reputation; compliance with environmental laws and the costs of associated liabilities; fluctuations in demand from residential and commercial customers; economic conditions of certain industries; the success of NIPSCO's electric generation strategy; the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demands; the reliability of customers and suppliers to fulfill their payment and contractual obligations; potential impairments of goodwill or definite-lived intangible assets; changes in taxation and accounting principles; potential incidents and other operating risks associated with our business; the impact of an aging infrastructure; the impact of climate change; potential cyber-attacks; construction risks and natural gas costs and supply risks; extreme weather conditions; the attraction and retention of a qualified work force; advances in technology; the ability of NiSource's subsidiaries to generate cash; tax liabilities associated with the separation of Columbia Pipeline Group, Inc.; NiSource's ability to manage new initiatives and organizational changes; the performance of third-party suppliers and service providers; the availability of insurance to cover all significant losses and other matters set forth in Item 1A, "Risk Factors" section of NiSource's Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and in other filings with the Securities and Exchange Commission. A credit rating is not a recommendation to buy, sell or hold securities, and may be subject to revision or withdrawal at any time by the assigning rating organization. In addition, dividends are subject to board approval. NiSource expressly disclaims any duty to update, supplement or amend any of its forward-looking statements contained in this press release, whether as a result of new information, subsequent events or otherwise, except as required by applicable law.