An important part of NiSource’s sustainability plan involves increasing the use of Renewable Natural Gas (RNG). As an alternate, pipeline gas, RNG is fully interchangeable with conventional natural gas and we believe provides many of the same safe and reliable usage benefits for customers. In some ways it could provide a greater benefit than conventional natural gas because it captures more greenhouse gases than it emits.
RNG is a byproduct of the decomposition of organic matter from sources such as landfills, livestock operations, and wastewater treatment facilities. Because it comes from organic sources that once absorbed carbon dioxide, RNG is carbon neutral. It is produced from organic waste that would otherwise decay and emit methane emissions into the atmosphere.
Since RNG is fully interchangeable with natural gas, no additional updates are needed to our existing natural gas distribution infrastructure. RNG is available now, and the supply is growing all the time. By continuing to expand our energy mix, NiSource is expected to meet the sustainable energy needs of our customers for well into the future.
Today, all NiSource operating companies offer RNG producers the option to interconnect with our gas distribution systems, where the NiSource companies can transport RNG to the market. Each company has high quality gas standards set in place specifically for RNG that enters our systems. To streamline the process, each NiSource company allows RNG producers to submit applications through the company websites.
To date, some companies have already begun to offer customers RNG as an option for their energy needs. Our subsidiaries, NIPSCO and Columbia Gas of Virginia (CVA) offer the voluntary Green Path℠ program. This program offers various levels of RNG and carbon offsets for customers to neutralize all or part of their carbon emissions from their natural gas usage. NiSource plans to continue to seek approval from state regulatory commissions to offer the program across other service territories.
Additionally, NiSource companies are building strategies to advocate for favorable and supportive policies that enable investments in additional sustainable fuel sources. At the state level, NiSource is engaged with chambers of commerce, business roundtables, farm bureaus, and restaurant associations to advance legislation that is expected to enable the development of renewable energy and low-carbon and no-carbon fuels.
As an example, CVA worked with stakeholders to pass the Virginia Energy Innovation Act in June 2022, which allows for the robust development of renewable natural gas in the commonwealth of Virginia. This law allows gas utilities to invest in and own RNG processing facilities. The statute also includes recovery of operations and maintenance expenses associated with producing RNG. The law opens potential opportunities for CVA to produce RNG for its natural gas customers in the state. It also could lead to the decarbonization of the natural gas system in Virginia without significant impact to customers’ bills. Added benefits could include the reduction of Scope 3 emissions and the potential for job creation and economic development opportunities for Virginia.
While the value and necessity of natural gas will remain an important part of our energy future for generations to come, the addition of renewable energy options, such as, RNG, will be vital in the transition to a more diverse mix of energy resources that are safe, reliable, and environmentally responsible.
Forward-Looking Statements
This article contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). 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. These forward-looking statements include, but are not limited to, statements concerning our plans, strategies, objectives, goals, expected performance, including sustainability commitments, and any and all underlying assumptions and other statements that are other than statements of historical fact. Expressions of future goals and expectations and similar expressions, including "may," "will," "should," "could," "would," "aims," "seeks," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "targets," "forecast," and "continue," reflecting something other than historical fact are intended to identify forward-looking statements. 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 and expectations discussed in this article include, among other things: our ability to execute our business plan or growth strategy, including utility infrastructure investments; potential incidents and other operating risks associated with our business; our ability to work successfully with our third-party investors; our ability to adapt to, and manage costs related to, advances in technology, including alternative energy sources and changes in laws and regulations; our increased dependency on technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in 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 demand; our ability to attract, retain or re-skill a qualified, diverse workforce and maintain good labor relations; our ability to manage new initiatives and organizational changes; the actions of activist stockholders; the performance and quality of third-party suppliers and service providers; potential cybersecurity attacks or security breaches; increased requirements and costs related to cybersecurity; any damage to our reputation; the impacts of natural disasters, potential terrorist attacks or other catastrophic events; the physical impacts of climate change and the transition to a lower carbon future; our ability to manage the financial and operational risks related to achieving our carbon emission reduction goals, including our Net Zero Goal; our debt obligations; any changes to our credit rating or the credit rating of certain of our subsidiaries; adverse economic and capital market conditions, including increases in inflation or interest rates, recession, or changes in investor sentiment; economic regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; economic conditions in certain industries; the reliability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; compliance with changes in, or new interpretations of applicable laws, regulations and tariffs; the cost of compliance with environmental laws and regulations and the costs of associated liabilities; changes in tax laws or the interpretation thereof; and other matters set forth in Item 1, "Business," Item 1A, "Risk Factors" and Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and any subsequent filings made with the Securities and Exchange Commission, some of which risks are beyond our control.
All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to the future results over time or otherwise, except as required by law.