NIPSCO expands solar capacity with new Cavalry Solar project

MERRILLVILLE, Ind. - Northern Indiana Public Service Company LLC (NIPSCO), a subsidiary of NiSource Inc. (NYSE: NYSE:NI), has announced the operational status of its Cavalry Solar project, a significant addition to its renewable energy portfolio. The newly completed facility, located in White County, Indiana, is designed to produce 200 megawatts (MW) of solar energy, supplemented by an additional 45 MW of battery storage technology.

The Cavalry Solar project marks the third solar endeavor in NIPSCO's generation mix and is part of the company's broader strategy to transition to a more balanced and reliable energy portfolio. The integration of battery storage technology demonstrates NIPSCO's commitment to leveraging advanced solutions to meet customer energy needs sustainably and cost-effectively.

Developed and constructed by Cavalry Energy Center, LLC, a subsidiary of NextEra Energy (NYSE:NEE) Resources, LLC, the facility is expected to power about 60,000 homes. It is also projected to generate approximately $25 million in tax revenue for White County over the project's lifespan.

NIPSCO's President and Chief Operating Officer, Vince Parisi, emphasized the importance of the project in the company's ongoing energy transition. "The inclusion of battery energy storage is an example of the advancing technology we're incorporating into our energy transition to best meet the needs of our customers," Parisi stated.

The Cavalry Solar project joins Indiana Crossroads Solar and Dunns Bridge I Solar in NIPSCO's solar project lineup, with Dunns Bridge II Solar currently under construction. These projects, alongside NIPSCO's operational wind projects, have contributed nearly $80 million in excess power sales and renewable energy credit sales back to customers since 2021.

This development aligns with NIPSCO's long-term electric generation transition plan, which includes a goal to be coal-free by 2028 and aims to reduce carbon emissions by more than 90% by 2030, compared to a 2005 baseline. The plan is informed by the company's Integrated Resource Plans (IRP), a regulatory process analyzing resource options for future electric generation portfolios.

The information in this article is based on a press release statement from NIPSCO and does not include any speculative or promotional content.

In other recent news, NiSource Inc. has reported significant financial developments. The company announced a quarterly dividend of $0.265 per share, scheduled for payment to registered shareholders in November 2024. NiSource's Q2 2024 earnings exceeded expectations, contributing to BMO Capital's decision to raise the share target to $34. The company also successfully completed approximately $500 million of its 2024 equity issuance plan.

NiSource remains on track with its full-year and long-term financial goals, projecting a 6% to 8% adjusted EPS growth and 8% to 10% rate base growth from 2023 to 2028. The company plans to issue up to $600 million of at-the-market equity in 2024 to strengthen its financial standing. Despite potential challenges such as increased financing costs and regulatory outcomes, NiSource is optimistic about load growth, particularly from data centers.

These recent developments have led BMO Capital to maintain an Outperform rating for NiSource. The company's strategic growth initiatives involve pursuing data center development opportunities and investing in solar projects and power purchase agreements. NiSource's commitment to renewable energy and its successful financial performance indicate a promising outlook for the company's future.

InvestingPro Insights

NiSource Inc. (NYSE: NI), the parent company of Northern Indiana Public Service Company LLC (NIPSCO), has been actively enhancing its renewable energy portfolio, as evidenced by the recent completion of the Cavalry Solar project. As NIPSCO works towards a more sustainable energy mix, investors and stakeholders monitor NiSource's financial health and market performance. Here are some key insights based on real-time data from InvestingPro:

• The company's market capitalization stands at a solid $14.31 billion, indicating a significant presence in the utility sector.
• With a Price/Earnings (P/E) ratio of 18.93 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 19.39, NiSource is trading at a valuation that reflects investor confidence in its earnings potential.
• NiSource's Gross Profit Margin for the last twelve months as of Q2 2024 is at a healthy 51.05%, showcasing its ability to manage production costs effectively while expanding its renewable energy projects.

Among the InvestingPro Tips relevant to NiSource's current strategic direction, it's noteworthy that the company has maintained dividend payments for 38 consecutive years, which is a testament to its financial stability and commitment to shareholder returns. In addition, NiSource's stock has experienced a large price uptick over the last six months, with a 25.4% total return, signaling strong market performance and investor optimism about the company's future, especially as it invests in renewable energy projects like Cavalry Solar.

For investors seeking more in-depth analysis, there are additional InvestingPro Tips available on the platform, which could further inform investment decisions regarding NiSource. For instance, the company operates with a significant debt burden, which is a critical factor to consider when assessing its financial health. Moreover, NiSource has seen three analysts revise their earnings downwards for the upcoming period, indicating potential challenges ahead that may impact its financial performance.

Visit InvestingPro for a comprehensive list of tips and a deeper dive into NiSource's financial metrics: https://www.investing.com/pro/NI.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.