NiSource Inc. is reporting a net income in the second quarter of 2011 of
$38.9 million or 14 cents per share, compared to $28.1 million or 10 cents
in the year-ago period.
“NiSource delivered another quarter of solid financial and operational
performance, punctuated by significant accomplishments involving nearly all
aspects of our business plan,” NiSource President and CEO Robert Skaggs Jr.
said in a statement released today. “From the settlement of our electric
rate case in Indiana, to the achievement of key regulatory, commercial, and
infrastructure milestones across each of our businesses, our team continues
to create innovative energy solutions for our customers and sustainable
value for our shareholders.”
•On July 18, the Northern Indiana Public Service Company filed a settlement
agreement with the Indiana Utility Regulatory Commission, which if approved
would raise electric rates for the average residential customer by 4.5
percent or $3.33 per month, significantly down from the 16.8 percent hike
which the IURC initially authorized in August 2010. “Working collaboratively
with stakeholders, the settlement represents a balanced agreement that
supports NIPSCO’s ability to provide Indiana families, businesses, and
industries with the affordable, reliable, and environmentally sustainable
power they need now and for the future,” Skaggs said.
•On July 13, the IURC authorized NIPSCO “to purchase customer-generated
electricity from renewable energy products,” the company noted. “The
program, supported by consumer and environmental groups, also allows
customers to generate more of their own electricity using renewable energy
to reduce their utility costs.”
•On July 27, the IURC approved NIPSCO’s request to implement new
energy-efficiency programs for its electric customers, including appliance
recycling, commercial and industrial efficiency project incentives, and
expanded energy education.
•Gas distribution: $46.4 million ($18.5 million year-ago). NiSource
attributed the improvement to “increased residential and commercial margins
due to NIPSCO’s change from a volumetric-based rate design to one with a
higher fixed charge”; and to a reduction in operating expenses of $12.4
million as a result of lower depreciation rates.
•Gas transmission and storage: $84.7 million (74.9 million year-ago).
NiSource attributed the improvement to “an increase in demand margin as a
result of growth projects placed into service in the second half of 2010 and
the impact of the new Columbia Gulf rates, subject to refund, put into
effect May 1.”
•Electric: $39.8 million ($49.6 million year-ago). NiSource attributed the
results to “decreased residential and commercial margins” and to increased
operating expenses of $11.2 million, the latter the result of “higher
electric generation costs due to an increase in outage durations and higher
employee and administrative expenses.”
•Corporate and other: an operating loss of $7.6 million (an operating loss
of $3.8 million).
•Total operating income: $163.3 million ($139.2 million year-ago).