NiSource
| Company type | Public |
|---|---|
| Industry | Utility |
| Predecessor | Northern Indiana Public Service Company |
| Founded | 1912 |
| Headquarters | Merrillville, Indiana , United States |
Area served | Indiana, Kentucky, Maryland, Ohio, Pennsylvania, Virginia |
| Products | Natural gas and electric utility services |
Number of employees | 8000+ |
NiSource Inc. ranks among the largest fully regulated utility providers in the United States, catering to approximately 3.5 million natural gas customers and 500,000 electric customers across six states through its Columbia Gas and NIPSCO divisions. Based in Merrillville, Indiana, NiSource employs more than 8,000 individuals and holds the distinction of being the only utility company headquartered in Indiana.
History
Established in 1912 under the name Northern Indiana Public Service Company, NiSource combined with various companies to create the Columbia Gas and Electric Corporation. After the enactment of the Public Utility Holding Company Act of 1935, Columbia underwent restructuring, divesting its electric utilities and emerging as the Columbia Gas System. In 2000, NiSource merged with Columbia Energy Group; later, in 2015, NiSource separated from Columbia Pipeline Group. The subsequent year saw Columbia Pipeline Group acquired by TransCanada Corporation, while NiSource continued to operate the Columbia Gas distribution entities.
Company operations
NiSource’s natural gas utilities provide domestically sourced fuel to residential, commercial, and industrial clients through nearly 60,000 miles of pipeline infrastructure spanning Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and Virginia.
The company’s electric division serves close to 500,000 customers located in northern Indiana, covering power generation, transmission, local distribution, and wholesale electricity sales. Its generation assets include natural gas, hydroelectric, wind, and coal facilities, collectively offering a capacity exceeding 3,000 megawatts.
Since 2009, NiSource has upheld a formal climate change policy. In 2015, it earned placement on the Dow Jones Sustainability—North America Index for the second year running and marked its ninth inclusion since 1999.
Internal organization
NiSource manages six regional utilities within its operating territory:
- Northern Indiana Public Service Co. (NIPSCO)
- Columbia Gas of Ohio
- Columbia Gas of Kentucky
- Columbia Gas of Pennsylvania
- Columbia Gas of Maryland
- Columbia Gas of Virginia
Recent corporate actions
On July 1, 2015, NiSource completed the spin-off of Columbia Pipeline Group (NYSE: CPGX), establishing it as an independent publicly traded entity. Shareholders of NiSource received one share of Columbia Pipeline Group for each share held. This separation encompassed Columbia Gas Transmission, Columbia Gulf Transmission, Columbia Midstream Group, its interest in Columbia Pipeline Partners (NYSE: CPPL), along with other midstream assets related to natural gas pipelines and storage.
In January 2019, NiSource declared plans to expedite the retirement of five coal-fired power plants as part of its commitment to renewable energy sources including solar, wind, and battery storage under the "Your Energy, Your Future" program. This initiative aims to reduce carbon emissions by more than 90% by 2028.
Criticism
In December 2011, the progressive organization Public Campaign criticized NiSource for allocating $1.83 million toward lobbying efforts while avoiding federal income taxes from 2008 through 2010. During this period, despite generating $1.4 billion in profits, NiSource received $227 million in tax rebates. The group also pointed out a 33% rise in executive pay for the top five officers in 2010, totaling $11.2 million. NiSource benefited from a bonus depreciation provision that accelerated deductions for capital investments, temporarily lowering federal tax liabilities.
NiSource responded by explaining that this legislation encouraged faster capital expenditures to support economic recovery by permitting earlier deductions without decreasing overall deductible amounts; consequently, future income tax obligations are expected to rise.
Massachusetts Gas Line Explosions and Withdrawal from the State
On September 13, 2018, failures in gas pipelines managed by Columbia Gas of Massachusetts, a subsidiary of NiSource, triggered simultaneous fires and explosions in 80 residences across Andover, Massachusetts, Lawrence, Massachusetts, and North Andover, Massachusetts. These events led to at least one death and 25 injuries. Portions of the three affected towns were evacuated, and power was cut off pending safety evaluations. Gas supply was interrupted for approximately 8,600 customers, with some experiencing outages lasting several months.
Columbia Gas admitted to the incorrect management of gas pressure monitoring devices by its maintenance team and pleaded guilty to breaching the federal Pipeline Safety Act. The company faced a $53 million penalty, agreed to a $143 million settlement with local residents and businesses, paid $83 million to municipalities, and provided additional compensation related to injuries and the fatality. Furthermore, it covered expenses for replacing pipelines and appliances. As a consequence of these financial burdens, NiSource consented to sell its Massachusetts gas operations to rival Eversource at a loss compared to its initial purchase price.