Lawrence, Mass., natural-gas pipeline disaster--a series of explosions on
Sept. 13 which killed one person, destroyed dozens of homes, and displaced
8,000 people, apparently caused by an over-pressurization in the
distribution lines of NiSource Inc. subsidiary Columbia Gas of
Massachusetts--has put NiSource in the red in the third quarter.
reporting today a net loss of $345.1 million or 95 cents per share, compared
to a net income in the year-ago period of $14 million or 4 cents.
third-quarter results include $461.9 million in expenses “related to
third-party claims and other expenses associated with the Sept. 13, 2018,
incident on its gas-distribution system in the Greater Lawrence, Mass.,
“Those expenses are
expected to be substantially recovered through insurance,” NiSource added.
“However, no recovery amounts have been recorded as of Sept. 30.”
“We are deeply
humbled by what happened in Massachusetts, and realize that much work lies
ahead of us to finish the service restoration in the Lawrence area, and to
regain the trust of our customers and communities,” NiSource President and
CEO Joe Hamrock said. “We continue to marshal the needed resources and
adjust our approach to best accommodate and meet our customers’ needs.”
“Safety and the
care of our customers is the foundation of our business,” Hamrock added.
“Although the reviews of what occurred are not complete, NiSource is taking
steps across our seven-state footprint to enhance the safety of low-pressure
systems. These enhancements will benefit all customers and communities we
serve across seven states.”
NiSource said that
its crews and contractors have completed 100 percent of the 45-mile
accelerated distribution system replacement needed to make homes and
businesses “Gas Ready “ in the Greater Lawrence area, while work remains on
making homes and businesses “House Ready” so that gas service can be
3Q Operating Income
* Gas distribution:
an operating loss of $455.2 million (operating loss of $15.2 million in the
* Electric: an
operating income of $134.9 million (operating income of $125.1 in the
* Corporate and
other: an operating income of $4.4 million (operating income of $1.5 million
in the year-ago).
* Total operating
loss in the 3Q: $315.9 million (operating income of $111.2 million in the