NiSource subsidiary NIPSCO signs agreement to supply power to data centers

NiSource Inc. (NYSE:NI), a $19 billion utility company with a strong financial health rating according to InvestingPro, disclosed Monday that its subsidiary, Northern Indiana Public Service Company LLC (NIPSCO), has entered into a contract with a large investment-grade company to provide electric service to the customer’s data centers. The agreement includes a capacity commitment that begins in 2027 and increases annually through 2032.

According to a statement released in a Securities and Exchange Commission filing, the contract will be submitted to the Indiana Utility Regulatory Commission for approval. The filing notes that the agreement includes a mechanism to return savings to retail customers for use of the existing system starting in 2027. The company has demonstrated consistent performance, maintaining dividend payments for 39 consecutive years while delivering nearly 17% revenue growth in the last twelve months.

To meet the demand outlined in the contract, NIPSCO Generation LLC, another NiSource subsidiary, plans to construct new dispatchable generation facilities. The company has entered into engineering, procurement, and construction contracts, as well as equipment supply agreements, related to these projects.

NiSource stated it expects to finance the project using a combination of debt and equity, which may include minority equity investments in subsidiaries. The company may also consider other funding sources, structures, or partnerships as market conditions and strategic considerations change.

Additional details regarding the contract and its financial impact are expected to be provided during NiSource’s earnings conference call for the quarter ending September 30, 2025, and in its forthcoming quarterly report on Form 10-Q.

This article is based on a statement provided in a Securities and Exchange Commission filing.

In other recent news, NiSource has been experiencing significant developments. The company announced a quarterly dividend of $0.28 per share, payable on November 20, 2025, to stockholders of record as of October 31, 2025. Meanwhile, NiSource’s plans to spin off its subsidiary, Genco, might face delays due to regulatory changes in Indiana, where two utility commissioners have stepped down. This regulatory uncertainty also led Jefferies to downgrade NiSource from Buy to Hold, lowering its price target to $44.00. Citigroup maintained a neutral rating, suggesting that these changes could impact the company’s strategic plans. On a more positive note, Wolfe Research raised its price target for NiSource to $46.00, maintaining an Outperform rating, citing strong rate base and EPS growth projections through 2029. Additionally, CFRA increased its price target to $45.00, highlighting NiSource’s growth opportunities. These updates reflect the mixed sentiment among analysts regarding NiSource’s future amid the current regulatory landscape.

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