NiSource Inc. is reporting a net income for the third quarter of $19.3
million or 6 cents basic earnings per share, compared to $34.7 million or 12
cents for the year-ago period.
Those results reflect the costs to achieve a pipeline modernization
settlement which subsidiary Columbia Gas Transmission filed with the Federal
Energy Regulatory Commission in September, the company said in a statement
“The modernization settlement will provide significant long-term benefits to
all key stakeholders,” NiSource President and CEO Robert Skaggs Jr. said.
“By partnering with our customers, we’ve developed a collaborative
settlement that supports good public policy, while creating a win-win for
customers, pipeline integrity, economic growth, and shareholder value.”
Skaggs also indicated that NiSource is “solidly on track to achieve its 2012
earnings guidance,” while “advancing its long-term strategy to produce
increased shareholder value and sustainable earnings growth of 5-7 percent
In addition, NiSource updated the activities and initiatives of its Indiana
subsidiary, the Northern Indiana Public Service Company:
•NIPSCO’s “electric margins continued to remain strong in the third quarter,
following implementation of 2011 regulatory initiatives.”
•NIPSCO is on schedule with its $500 million flue gas desulfurization
project at its Schahfer generating station.
•NIPSCO received approval from the Indiana Utility Regulatory Commission to
proceed with a similar desulfurization project at its Michigan City
generating station, this one costing an estimated $250 million.
•In the third quarter the Federal Energy Regulatory Commission approved
NIPSCO’s right to develop 50 percent of a $330 million transmission project:
the construction of a new 66-mile 765-kilovolt transmission line in Center
•Gas distribution: $16.2 million ($7.9 million in the year-ago). The company
attributed the improvement to increases in regulatory and service programs,
chiefly involving Columbia Gas of Ohio and Columbia Gas of Pennsylvania.
•Gas transmission and storage: $38.8 million ($68.2 million in the
year-ago). The company attributed the decline to the Columbia Gas
•Electric: $83.6 million ($78.8 million in the year-ago). The company cited
lower revenue credits and increased industrial and commercial margins, both
the results of NIPSCO 2011 electric rate case.
•Corporate: an operating loss of $1.4 million ($7.5 million in the
•Total operating income: $137.2 million ($147.4 million in the year-ago).