Reflected in the GAAP results is a
"
Additional information for the quarter ended
Second Quarter 2017 and Recent Business Highlights
NiSource continues to advance regulatory initiatives and customer programs in support of its ongoing infrastructure modernization, system safety and reliability enhancements, and customer growth investments.
Gas Distribution Operations
Columbia Gas of Ohio's application for a five year extension of its Infrastructure Replacement Program remains pending before thePublic Utilities Commission of Ohio (PUCO). This well-established pipeline replacement program, which is currently authorized throughDecember 31, 2017 , covers replacement of priority mainline pipe and targeted customer service lines. A PUCO order is expected by the end of the year.Columbia Gas of Maryland's base rate case remains pending before theMaryland Public Service Commission (MPSC). The request, filedApril 14, 2017 , seeks to adjust the company's base rates so it can continue to expedite the replacement of aging pipe as well as adopt additional pipeline safety upgrades. OnJuly 28, 2017 , all parties filed a settlement agreement with the MPSC which, if approved as filed, would result in an annual revenue increase of$2.4 million , effective in lateOctober 2017 .Northern Indiana Public Service Company (NIPSCO) continues to execute on its seven-year,$845 million gas infrastructure modernization program to further improve system reliability and safety. OnJune 28, 2017 theIndiana Utility Regulatory Commission (IURC) approved NIPSCO's latest semi-annual tracker update covering approximately$61 million of investments that were made in the second half of 2016.
Electric Operations
- NIPSCO's request, filed in
November 2016 , to invest in environmental upgrades at its Michigan City Unit 12 and R.M. Schahfer Units 14 and 15 generating facilities remains pending before the IURC. OnJune 9, 2017 , NIPSCO, along with theIndiana Office of Utility Consumer Counselor , theCitizens Action Coalition and a group of NIPSCO industrial customers submitted a settlement agreement seeking, among other things, approval and cost recovery for the Coal Combustion Residuals projects and moving Effluent Limitation Guidelines-related investments to a later proceeding. An IURC order is expected before the end of the year. - NIPSCO continues to execute on its seven-year electric infrastructure modernization program, which includes enhancements to its electric transmission and distribution system designed to further improve system safety and reliability. The IURC-approved program represents approximately
$1.25 billion of electric infrastructure investments expected to be made through 2022. InFebruary 2017 , NIPSCO began recovering on approximately$46 million of these investments. OnJune 30, 2017 , it filed with the IURC its latest tracker update request, covering$133.6 million in investments fromMay 2016 throughApril 2017 . - NIPSCO's two major electric transmission projects remain on schedule with anticipated in-service dates in the second half of 2018. The 100-mile 345-kV and 65-mile 765-kV projects are designed to enhance region-wide system flexibility and reliability. Substation, line and tower construction are under way for both projects.
Long-term Earnings and Dividend Growth, Capital Investment Forecasts on Track
Consistent with plans outlined at its Investor Day in
With this robust investment and steady earnings and dividend growth projected,
About
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
Regulation G Disclosure Statement
This press release includes financial results and guidance for
Schedule 1 - Reconciliation of Consolidated Net Operating Earnings (Non-GAAP) to |
|||||||
Income (Loss) from Continuing Operations (unaudited) |
|||||||
Three Months Ended |
Six Months Ended |
||||||
|
|
||||||
(in millions, except per share amounts) |
2017 |
2016 |
2017 |
2016 |
|||
Net Operating Earnings (Non-GAAP) |
$ 33.3 |
$ 26.6 |
$ 263.9 |
$ 224.3 |
|||
Items Excluded from Operating Earnings: |
|||||||
Net Revenues: |
|||||||
Weather - compared to normal |
(4.9) |
4.6 |
(33.9) |
(12.6) |
|||
Operating Expenses: |
|||||||
Plant retirement costs(1) |
- |
- |
(1.5) |
- |
|||
IT service provider transition costs(2) |
(5.1) |
- |
(5.1) |
- |
|||
Transaction costs(3) |
- |
(0.9) |
- |
(1.7) |
|||
Gain on sale of assets and impairments, net |
0.1 |
0.2 |
0.1 |
0.3 |
|||
Total items excluded from operating earnings |
(9.9) |
3.9 |
(40.4) |
(14.0) |
|||
Other Income (Deductions): |
|||||||
Loss on early extinguishment of long-term debt |
(111.5) |
- |
(111.5) |
- |
|||
Income Taxes: |
|||||||
Tax effect of above items |
43.8 |
(1.5) |
55.0 |
5.3 |
|||
Total items excluded from net operating earnings |
(77.6) |
2.4 |
(96.9) |
(8.7) |
|||
GAAP Income (Loss) from Continuing Operations |
$ (44.3) |
$ 29.0 |
$ 167.0 |
$ 215.6 |
|||
Basic Average Common Shares Outstanding |
325.1 |
321.7 |
324.4 |
321.0 |
|||
Non-GAAP Basic Net Operating Earnings Per Share |
$ 0.10 |
$ 0.08 |
$ 0.81 |
$ 0.70 |
|||
Items excluded from net operating earnings (after-tax) |
(0.24) |
0.01 |
(0.30) |
(0.03) |
|||
GAAP Basic Earnings (Loss) Per Share From Continuing Operations |
$ (0.14) |
$ 0.09 |
$ 0.51 |
$ 0.67 |
|||
(1) Represents employee severance costs incurred associated with the planned retirement of Units 7 and 8 at |
|||||||
(2) Represents external legal and consulting costs associated with termination of the IBM IT services agreement and the transition to |
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(3) Represents costs incurred associated with the separation of Columbia Pipeline Group ("CPG"). |
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