MERRILLVILLE, Ind.,
Sept. 29, 2020 /PRNewswire/ -- NiSource Inc. (NYSE: NI) will
host a virtual investor day this morning where the company will
discuss its long-term growth strategy, including key initiatives
focused on investments in safety, asset modernization and renewable
generation as well as cost structure refinements and capabilities
enhancements. Details of its financial outlook and balanced
financing plan that supports the company's strategy will also be
presented.
"We are at a key stage in the execution of our strategy to
deliver on our long-term value proposition, building on a number of
strategic actions we have taken to drive these efforts," said
NiSource President and CEO Joe
Hamrock. "We have made significant progress in 2020 and
continue to execute with a relentless focus on safety and customer
affordability. In recent years, we have accelerated implementation
of our safety management system (SMS), realigned our executive
leadership and integrated key operations across the organization,
enhanced oversight and guidance on the Quality Review Board and
NiSource Board of Directors, advanced a series of renewable energy
projects and are on track to complete the sale of Columbia Gas of
Massachusetts (CMA). By leveraging
our platform, dedicated investment approach and relentless
commitment to safety, we are delivering benefits for our customers
and communities and meaningfully enhancing NiSource's earnings
power over time."
Strong Financial Foundation for Value Creation
NiSource has a strong, sustainable growth platform with
supportive fundamentals and nearly $14
billion of regulated rate base, following the sale of CMA.
NiSource's core business strategy is expected to drive long-term
revenue and dividend growth, supported by stable, rate base driven
revenue streams and approximately $40
billion in expected infrastructure investment opportunities
over 20 years. These investment opportunities represent an increase
of $10 billion over prior
expectations, driven by incremental investments in renewable
generation and safety and asset modernization enhancements across
both gas and electric operations which total $9.9 – $10.5 billion of capital investment
opportunities during the 2021 – 2024 plan period.
At Investor Day, NiSource will discuss its recently launched
NiSource Next initiative, a comprehensive program designed to
identify long-term, sustainable capability enhancements and cost
efficiency improvements. Through this program, the company
anticipates driving continuous operational learnings and
improvements throughout the organization, while also contributing
to an approximately 8% reduction in O&M costs in 2021 from
expected 2020 levels. This cost reduction is expected to offset
future inflationary pressure to keep O&M costs relatively flat
through 2024 and ensure customers realize the value of the
company's enhanced capabilities.
Execution of NiSource's strategy is expected to drive a rate
base compound annual growth rate (CAGR) of 10% – 12%, which is
expected to result in a 7% – 9% NOEPS CAGR, and annual
dividend growth to maintain the company's targeted 60% – 70%
payout ratio over 2021 – 2024. Through the execution of a
strong rate base growth strategy while focusing on safety enhancing
capital deployment, and executing NiSource Next, customer
affordability is preserved throughout the planning horizon.
Growth Driven by Safety, Risk Mitigation and Customer
Service
NiSource continues to prioritize its safety initiatives across
its gas and electric businesses, including its SMS implementation,
which improves and drives robust operating standards, risk
identification and mitigation capabilities. The company's
$1.9 – $2.2 billion in planned
annual capital investment in its growth, safety and asset
modernization programs is enhancing NiSource's system safety and
reliability while driving shareholder value. The company will also
discuss how its NiSource Next program further supports the high
priority NiSource places on safety, risk mitigation and
customer service.
Renewable Generation Transition Strategy Focused on
Affordability and Sustainability
NiSource continues to execute its renewable generation
transition strategy that embraces the need for clean energy in
supporting its customers and communities through its NIPSCO gas and
electric distribution company in Indiana. The company is focused on retiring
100% of coal generation assets by 2028 and replacing them primarily
with renewables.
As part of NIPSCO's planned replacement of approximately 1,400
megawatts of retiring coal-fired generation in 2023, NiSource has
identified $1.8 – $2.0 billion in capital investment
opportunities, incremental to our previous capital plan, to be
deployed primarily across 2022 and 2023. These investments in
renewable energy will provide benefits for customers and value for
shareholders. The overall replacement plan is expected to save
NIPSCO's electric customers more than $4
billion in costs over 30 years when compared to the
continued operation of NIPSCO's current generation fleet and to
reduce greenhouse gas emissions 90 percent by 2030 compared to a
2005 baseline.
"Our approach across our portfolio is focused on driving
affordability for our customers and sustainability for the
communities we serve. It's important that we listen to our
customers and pursue strategic investments that meet their evolving
demands for more affordable, and cleaner energy resources," said
Hamrock.
Today's Investor Day Presentation
NiSource's Investor Day presentation will be webcast with
accompanying presentations on www.nisource.com starting at
11:00 am ET and is expected to
conclude by 1:00 pm ET. A replay of
the webcast will be available on www.nisource.com beginning that
evening.
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 8,400 employees are focused on safely delivering
reliable and affordable energy to our customers and communities we
serve. NiSource is a member of the Dow Jones Sustainability - North
America Index and the Bloomberg Gender Equality Index and has been
named by Forbes magazine among America's Best Large
Employers since 2016. 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. These forward-looking
statements include, but are not limited to, statements concerning
our plans, strategies, objectives, expected performance,
expenditures, recovery of expenditures through rates, stated on
either a consolidated or segment basis, and any and all underlying
assumptions and other statements that are other than statements of
historical fact. 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 press release include among other things, our
debt obligations; any changes to our credit rating or the credit
rating of certain of our subsidiaries; our ability to execute our
growth strategy; changes in general economic, capital and commodity
market conditions; pension funding obligations; economic regulation
and the impact of regulatory rate reviews; our ability to obtain
expected financial or regulatory outcomes; our ability to adapt to,
and manage costs related to, advances in technology; any changes in
our assumptions regarding the financial implications of the Greater
Lawrence Incident; compliance with the agreements entered into with
the U.S. Attorney's Office to settle the U.S. Attorney's Office's
investigation relating to the Greater Lawrence Incident; the
pending sale of the Columbia of Massachusetts business, including the terms
and closing conditions under the related Asset Purchase
Agreement; potential incidents and other operating risks
associated with our business; potential impacts from the COVID-19
pandemic; our ability to obtain sufficient insurance coverage and
whether such coverage will protect us against significant losses;
the outcome of legal and regulatory proceedings, investigations,
incidents, claims and litigation; any damage to our reputation,
including in connection with the Greater Lawrence Incident;
compliance with applicable laws, regulations and tariffs;
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; 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;
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 workforce; the ability of our
subsidiaries to generate cash; our ability to manage new
initiatives and organizational changes; the performance of
third-party suppliers and service providers; changes in the method
for determining LIBOR and the potential replacement of the LIBOR
benchmark interest rate; and other matters in the "Risk Factors"
section of our Annual Report on Form 10-K for the fiscal year ended
December 31, 2019, as updated in our
Quarterly Report on Form 10-Q for the quarters ended March 31, 2020 and June
30, 2020 and in our subsequent SEC filings, many of such
risks are beyond our control. In addition, the relative
contributions to profitability by each business segment, and the
assumptions underlying the forward-looking statements relating
thereto, may change over time. 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.
Regulation G Disclosure Statement
This press release includes financial results and guidance for
NiSource with respect to net operating earnings available to common
shareholders, which is a non-GAAP financial measure as defined by
the SEC's Regulation G. The company includes this measure because
management believes it permits investors to view the company's
performance using the same tools that management uses and to better
evaluate the company's ongoing business performance. With respect
to such guidance, it should be noted that there will likely be a
difference between this measure and its GAAP equivalent due to
various factors, including, but not limited to, fluctuations in
weather, the impact of asset sales and impairments, and other items
included in GAAP results. NiSource is not able to estimate the
impact of such factors on GAAP earnings and, as such, is not
providing earnings guidance on a GAAP basis.
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SOURCE NiSource Inc.