NiSource Inc. (NI): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how NiSource Inc. (NI), one of the largest fully regulated utility companies in the United States with approximately 3.3 million natural gas customers and 500,000 electric customers across six states, actually works and generates revenue? Founded in 1912, the company has a rich history of providing essential energy services. Keep reading to discover its mission, business model, and how it continues to adapt to the evolving energy landscape, especially with a $19.4 billion capital expenditure plan over five years.

NiSource Inc. (NI) History

NiSource Inc.'s Founding Timeline

Year established

NiSource was officially established in 1932 as the Northern Indiana Public Service Company (NIPSCO).

Original location

The company's primary operations were initially focused in Northern Indiana.

Founding team members

While the specific names of the founding team members are not widely publicized, the company was formed through the consolidation of several utility companies operating in the region.

Initial capital/funding

Details regarding the initial capital and funding are not readily available in the company's public disclosures.

NiSource Inc.'s Evolution Milestones

NiSource Inc.'s Transformative Moments

• Formation of NiSource (1981): The creation of NiSource as a holding company marked a pivotal shift, enabling the company to broaden its scope beyond its initial utility operations. This move facilitated strategic diversification and expansion into new markets.
• Mergers and Acquisitions: Strategic acquisitions, such as the merger with Bay State Gas Company in 1999, significantly expanded NiSource's operational footprint and customer base. These mergers allowed NiSource to extend its natural gas distribution network into new regions like New England, enhancing its market presence.
• Focus on Infrastructure Modernization: NiSource has undertaken significant investments in modernizing its infrastructure to improve safety and reliability. These efforts include replacing aging pipelines and upgrading transmission systems, ensuring the delivery of essential services to its customers. In 2024, NiSource plans to invest $1.4 billion to $1.6 billion in its utilities.
• Commitment to Sustainability: NiSource has made a strong commitment to sustainability by setting ambitious goals for reducing greenhouse gas emissions and transitioning to renewable energy sources. The company plans to retire all coal-fired generation by 2028 and invest heavily in wind, solar, and other clean energy technologies.
• Columbia Gas Incident and Response: The natural gas incident in 2018 involving its subsidiary, Columbia Gas of Massachusetts, was a major turning point. The company faced significant legal and financial repercussions, including a $53 million plea agreement in 2020. This event underscored the critical importance of safety and operational excellence in the utility industry.

To gain more insights into the company's financial stability, check out this analysis: Breaking Down NiSource Inc. (NI) Financial Health: Key Insights for Investors

NiSource Inc. (NI) Ownership Structure

NiSource Inc. features a mixed ownership structure, blending institutional, retail, and insider holdings. Understanding this structure provides insights into the company's governance and strategic direction.

NiSource's Current Status

NiSource Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on the New York Stock Exchange (NYSE) under the ticker symbol NI.

NiSource's Ownership Breakdown

The following table summarizes the ownership breakdown of NiSource Inc. as of April 2025, based on the most recent data available for the 2024 fiscal year:

NiSource's Leadership

NiSource's leadership team is responsible for the strategic direction and operational management of the company. As of April 2025, key members of the leadership team include:

• Kimberly H. Green: President and Chief Executive Officer
• Donald W. Brown, Jr.: Executive Vice President and Chief Financial Officer
• Violet Sistovaris: Executive Vice President and Chief Experience Officer

For more detailed insights into NiSource Inc. and its investors, check out this related article: Exploring NiSource Inc. (NI) Investor Profile: Who’s Buying and Why?

NiSource Inc. (NI) Mission and Values

NiSource Inc. aims to deliver energy safely, reliably, and responsibly, focusing on environmental stewardship and community engagement. The company values safety, integrity, environmental responsibility, and customer satisfaction.

NiSource Inc.'s Core Purpose

Official mission statement

To deliver energy to our customers safely, reliably and responsibly.

Vision statement

NiSource's vision is focused on:

• Driving long-term value for shareholders.
• Delivering sustainable value for customers.
• Reinforcing a high-performance culture for employees.

Company slogan/tagline

NiSource does not have a prominently advertised official slogan or tagline. However, they emphasize their commitment to being a responsible energy provider. For detailed insights into NiSource's financial standing, see: Breaking Down NiSource Inc. (NI) Financial Health: Key Insights for Investors

NiSource Inc. (NI) How It Works

NiSource operates as a regulated utility company, delivering natural gas and electricity to approximately 3.2 million customers across six states. Mission Statement, Vision, & Core Values of NiSource Inc. (NI).

NiSource's Product/Service Portfolio

NiSource's Operational Framework

NiSource focuses on modernizing its infrastructure and improving the reliability and safety of its natural gas and electric delivery systems. This includes:

• Infrastructure Modernization Programs: Investing billions in replacing aging pipelines and upgrading electric infrastructure. For instance, the company's ongoing gas modernization program aims to replace approximately 200-300 miles of bare steel and cast iron pipelines annually.
• Safety Enhancements: Implementing advanced technologies for leak detection and prevention, enhancing pipeline safety, and reducing methane emissions.
• Customer Service: Providing various customer service options, including online account management, energy efficiency programs, and payment assistance programs.
• Regulatory Compliance: Operating under the regulatory oversight of state and federal agencies, ensuring compliance with safety and environmental standards.

NiSource's Strategic Advantages

NiSource's strengths lie in its regulated business model and strategic investments:

• Regulated Utility Model: Operating as a regulated utility provides a stable revenue stream and predictable earnings, as rates are typically approved by regulatory commissions.
• Geographic Footprint: Serving diverse customer base across multiple states reduces the company's dependence on any single region's economic conditions.
• Infrastructure Investments: Ongoing investments in modernizing infrastructure not only improve safety and reliability but also drive earnings growth through increased rate base. NiSource plans to invest approximately $1.8 to $2.0 billion annually in its infrastructure modernization programs.
• Commitment to Sustainability: Transitioning to cleaner energy sources and reducing emissions enhances the company's long-term sustainability and appeals to environmentally conscious investors. NiSource is committed to retiring its remaining coal-fired generation by 2028.

NiSource Inc. (NI) How It Makes Money

NiSource Inc. primarily generates revenue by delivering energy, including natural gas and electricity, to its customers through regulated utilities. This involves owning, operating, and maintaining extensive infrastructure for the transmission, distribution, and storage of energy.

NiSource's Revenue Breakdown

As the latest complete fiscal year is 2024, the revenue breakdown is based on the data available until then. Please note that the percentages might not add up to exactly 100% due to rounding.

NiSource's Business Economics

NiSource operates under a regulated business model, which significantly influences its economics:

• Regulatory Framework: NiSource's rates and tariffs are determined and approved by state regulatory commissions. This framework allows the company to recover costs and earn a reasonable return on its investments.
• Capital Investments: A significant portion of NiSource's business economics is driven by ongoing investments in infrastructure upgrades and expansions. These investments are aimed at enhancing the safety and reliability of its energy delivery systems.
• Cost Recovery Mechanisms: NiSource utilizes various cost recovery mechanisms, such as trackers and riders, to manage fluctuations in commodity prices, operating expenses, and capital expenditures. These mechanisms help to stabilize earnings and reduce risks associated with market volatility.

NiSource's Financial Performance

Key aspects of NiSource's financial performance include:

• Consistent Revenue: NiSource's regulated business model provides a relatively stable and predictable revenue stream. The demand for natural gas and electricity is generally consistent, providing a reliable base for revenue generation. In 2024, NiSource reported operating revenues of $6.38 billion.
• Capital Expenditure: NiSource has a substantial capital expenditure program focused on modernizing its infrastructure. For example, NiSource plans to invest approximately $3.4 billion in 2025, with a long-term capital investment plan of $16 billion to $17 billion through 2027.
• Earnings Stability: NiSource's earnings are relatively stable due to the regulated nature of its operations. The company's ability to recover costs and earn a regulated return helps to mitigate earnings volatility. NiSource reported net operating earnings of $584.2 million in 2024.
• Dividend Payments: NiSource is known for providing consistent dividend payments to its shareholders. This is supported by its stable earnings and cash flow. In February 2024, NiSource's Board of Directors declared a quarterly common stock dividend of $0.25 per share, equivalent to an annual dividend of $1.00 per share.

To gain more insights into the investors and ownership structure, check out this related article: Exploring NiSource Inc. (NI) Investor Profile: Who’s Buying and Why?

NiSource Inc. (NI) Market Position & Future Outlook

NiSource is strategically positioned as a major player in the utility sector, focusing on providing reliable natural gas and electric services. With a commitment to modernizing infrastructure and transitioning to cleaner energy sources, NiSource aims to maintain a stable market presence while adapting to evolving industry demands. More information about the company's financial standing can be found at: Breaking Down NiSource Inc. (NI) Financial Health: Key Insights for Investors

Competitive Landscape

Opportunities & Challenges

Industry Position

NiSource holds a significant position in the energy sector, particularly in the Midwest and Mid-Atlantic regions. The company's focus on regulated utilities provides a stable revenue base, while its strategic investments in renewable energy and infrastructure modernization are aimed at long-term growth and sustainability.

• Commitment to reducing greenhouse gas emissions and transitioning to cleaner energy sources.
• Ongoing investments in infrastructure upgrades to improve reliability and safety.
• Focus on operational efficiency and cost management to enhance profitability.