NiSource Inc. is reporting a net income for the second quarter of 2012 of
$69.4 million or 25 cents basic earnings per share, compared to $40.2
million or 14 cents in the year-ago period.
“Across each of our three business units, NiSource continues to deliver on a
robust combination of infrastructure modernization, growth, and regulatory
initiatives that together deliver significant benefits for our customers and
solid value for our shareholders,” NiSource President and CEO Robert Skaggs
Jr. said in a statement released today. “We continue to see strong
performance from NiSource’s gas distribution unit, our Indiana electric
business, as well as our gas transmission, storage, and midstream business,
which is demonstrating NiSource’s significant near- and long-term growth
potential in the Utica and Marcellus Shale regions.”
NiSource reported the following initiatives pursued in the second quarter:
•NiSource Midstream & Minerals Group entered joint-ventures with affiliates
of Hilcorp Energy Company to build infrastructure to support hydrocarbon
production in the Utica Shale region of Northeast Ohio and Western
Pennsylvania. One of the ventures, Pennant Midstream, will invest $300
million in its first phase to provide gathering capacity of 400 million
cubic feet per day and processing capacity of 200 million feet per day. The
project should be on line in the second half of 2013.
•Still on track is NIPSCO’s $500 million investment in new flue gas
desulfurization at the Schahfer generating station, part of a nearly $850
million environmental investment program through 2018.
•NIPSCO has petitioned the Indiana Utility Regulatory Commission to approve
a “Green Power Rate” pilot program, under which customers could designate a
portion or all of their monthly electric usage to be attributable to power
generated by renewable energy sources, including wind, solar, geothermal,
biomass, and hydroelectric.
Meanwhile, NiSource said, “In the midst of sustained record high
temperatures and severe summer storms, NIPSCO’s operations, including its
generation fleet and transmission infrastructure, have continued to perform
well and in line with expectations. The company reached an all-time peak
load record on June 28, 2012, of roughly 3,710 megawatts.”
Finally, Skaggs added, “Our NIPSCO team is celebrating the company’s 100th
anniversary this year by executing a truly historic level of environmental
investment, customer focus, and community and economic development. These
combined efforts provide NIPSCO with an outstanding foundation for providing
long-term sustainable growth and enhanced service to our customers.”
•Gas distribution: $258.9 ($288.1 million in the year-ago). Weather
negatively affected the bottom line by $42.2 million.
•Gas transmission and storage: $230.1 million ($203 million in the
year-ago). NiSource attributed the improvement to higher demand margin
revenue as a result of growth projects.
•Electric: $116.6 million ($90.9 million in the year-ago). NiSource
attributed the improvement chiefly to increased industrial, commercial, and
residential margins mainly as a result of the implementation of the 2010
electric rate case. Weather positively affected the bottom line by $5.2
•Corporate: $2.4 million (an operating loss of $10.1 million in the
•Total operating income: $608 million ($571.9 in the year-ago).