Nisource Inc 10-Q for FY2024 Q1

Nisource Inc. (NI)

10-Q 2024-05-08 For: 2024-03-31

Added on April 07, 2026

About this 10-Q

Nisource Inc filed this 10-Q on May 8, 2024, covering the quarter ended March 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.71B; down 13.2% from $1.97B a year earlier
Net income: $365M; up 9.6% from net income of $333M a year earlier
Diluted EPS: $0.77; up 8.5% from $0.71 a year earlier

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DE		35-2108964
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

801 East 86th Avenue
Merrillville,	IN	46410
(Address of principal executive offices)		(Zip Code)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share	NI	NYSE


			Page

	Defined Terms		3

PART I	FINANCIAL INFORMATION

	Item 1.	Financial Statements - unaudited

		Condensed Statements of Consolidated Income (unaudited)	8

		Condensed Statements of Consolidated Comprehensive Income (unaudited)	9

		Condensed Consolidated Balance Sheets (unaudited)	10

		Condensed Statements of Consolidated Cash Flows (unaudited)	12

		Condensed Statements of Consolidated Equity (unaudited)	13

		Notes to Condensed Consolidated Financial Statements (unaudited)	15

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	57

	Item 4.	Controls and Procedures	57

PART II	OTHER INFORMATION

	Item 1.	Legal Proceedings	58

	Item 1A.	Risk Factors	58

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	58

	Item 3.	Defaults Upon Senior Securities	58

	Item 4.	Mine Safety Disclosures	58

	Item 5.	Other Information	58

	Item 6.	Exhibits	59

	Signature		60


DEFINED TERMS
The following is a list of frequently used abbreviations or acronyms that are found in this report:

NiSource Subsidiaries and Affiliates (not exhaustive)
Columbia of Kentucky			Columbia Gas of Kentucky, Inc.
Columbia of Maryland			Columbia Gas of Maryland, Inc.

Columbia of Ohio			Columbia Gas of Ohio, Inc.
Columbia of Pennsylvania			Columbia Gas of Pennsylvania, Inc.
Columbia of Virginia			Columbia Gas of Virginia, Inc.
NIPSCO			Northern Indiana Public Service Company LLC
NIPSCO Holdings I			NIPSCO Holdings I LLC
NIPSCO Holdings II			NIPSCO Holdings II LLC
NiSource ("we," "us" or "our")			NiSource Inc.
Rosewater			Rosewater Wind Generation LLC and its wholly owned subsidiary, Rosewater Wind Farm LLC
Indiana Crossroads Wind			Indiana Crossroads Wind Generation LLC and its wholly owned subsidiary, Indiana Crossroads Wind Farm LLC
Indiana Crossroads Solar			Indiana Crossroads Solar Generation LLC and its wholly owned subsidiary, Meadow Lake Solar Park LLC
Dunns Bridge I			Dunn's Bridge I Solar Generation LLC and its wholly owned subsidiary, Dunns Bridge Solar Center, LLC
Dunns Bridge II			Dunn's Bridge II Solar Generation LLC
Gibson			Gibson Solar Generation LLC
Fairbanks			Fairbanks Solar Generation LLC
Cavalry			Cavalry Solar Generation LLC

Abbreviations and Other

AFUDC			Allowance for funds used during construction

AOCI			Accumulated Other Comprehensive Income (Loss)
ASC			Accounting Standards Codification
ASU			Accounting Standards Update
ATM			At-the-market
BIP			BIP Blue Buyer L.L.C
Blackstone			Blackstone Infrastructure Partners L.P
BTA			Build-transfer agreement


CCRs			Coal Combustion Residuals
CEP			Capital Expenditure Program
CERCLA			Comprehensive Environmental Response Compensation and Liability Act (also known as Superfund)
Columbia Operations			Reportable segment comprised of the results of Columbia Gas distribution companies and all related subsidiaries
Corporate Units			Series A Corporate Units




DSM			Demand Side Management
EGUs			Electric Utility Generating Units
EPA			United States Environmental Protection Agency
EPS			Earnings per share
Equity Units			Series A Equity Units
FAC			Fuel adjustment clause


DEFINED TERMS
FASB			Financial Accounting Standards Board

FMCA			Federally Mandated Cost Adjustment
GAAP			Generally Accepted Accounting Principles
GCA			Gas cost adjustment
GHG			Greenhouse gases
GWh			Gigawatt hours

IRA			Inflation Reduction Act of 2022
IRP			Infrastructure Replacement Program

IURC			Indiana Utility Regulatory Commission
JV			Joint Venture

LIFO			Last In, First Out
LIHEAP			Low Income Heating Energy Assistance Program

MGP			Manufactured Gas Plant
MISO			Midcontinent Independent System Operator
MMDth			Million dekatherms
MW			Megawatts
MWh			Megawatt hours

NIPSCO Electric			The electric generation and transmission activities of the NIPSCO Operations reportable segment
NIPSCO Gas			The gas distribution activities of the NIPSCO Operations reportable segment
NIPSCO Minority Interest Transaction			A transaction between NiSource, NIPSCO Holdings II (sole owner of NIPSCO) and an affiliate of Blackstone pursuant to a purchase and sale agreement entered into on June 17, 2023, that offered equity interests in NIPSCO Holdings II in exchange for capital contributions by the parties.
NIPSCO Operations			Reportable segment comprised of the results of NIPSCO Holdings I, NIPSCO Holdings II, and NIPSCO and all related subsidiaries
NYMEX			New York Mercantile Exchange
OPEB			Other Postemployment Benefits


PHMSA			Pipeline and Hazardous Materials Safety Administration
PPA			Power Purchase Agreement





RNG			Renewable Natural Gas

SAVE			Steps to Advance Virginia's Energy Plan
Scope 1 GHG Emissions			Direct emissions from sources owned or controlled by us (e.g., emissions from our combustion of fuel, vehicles, and process emissions and fugitive emissions)
Scope 2 GHG Emissions			Indirect emissions from sources owned or controlled by us
SEC			Securities and Exchange Commission

SMRP			Safety Modification and Replacement Program
SMS			Safety Management System


TCJA			An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (commonly known as the Tax Cuts and Jobs Act of 2017)
TDSIC			Transmission, Distribution and Storage System Improvement Charge


VIE			Variable Interest Entity
WAM			Work and Asset Management


Index			Page
Condensed Statements of Consolidated Income (unaudited)			8
Condensed Statements of Consolidated Comprehensive Income (unaudited)			9
Condensed Consolidated Balance Sheets (unaudited)			10
Condensed Statements of Consolidated Cash Flows (unaudited)			12
Condensed Statements of Consolidated Equity (unaudited)			13
Notes to Condensed Consolidated Financial Statements (unaudited)			15
1. Basis of Accounting Presentation			15
2. Recent Accounting Pronouncements			15
3. Revenue Recognition			15
4. Noncontrolling Interest			18
5. Earnings Per Share			19


6. Equity			20
7. Short-Term Borrowings			21
8. Long-Term Debt			22
9. Gas in Storage			22


10. Regulatory Matters			22
11. Risk Management Activities			23
12. Fair Value			25
13. Income Taxes			28
14. Pension and Other Postemployment Benefits			28
15. Other Commitments and Contingencies			28
16. Accumulated Other Comprehensive Loss			30
17. Business Segment Information			31
18. Other, Net			33


	Three Months Ended March 31,
(in millions, except per share amounts)	2024		2023
Operating Revenues
Customer revenues	$	1,643.0	$	1,896.1
Other revenues	63.3		69.9
Total Operating Revenues	1,706.3		1,966.0
Operating Expenses
Cost of energy	425.0		765.1
Operation and maintenance	378.4		391.2
Depreciation and amortization	242.1		206.9

Other taxes	77.4		71.8
Total Operating Expenses	1,122.9		1,435.0

Operating Income	583.4		531.0
Other Income (Deductions)
Interest expense, net	(116.3)		(108.9)
Other, net	9.2		1.5

Total Other Deductions, Net	(107.1)		(107.4)
Income before Income Taxes	476.3		423.6
Income Taxes	76.0		85.8


Net Income	400.3		337.8
Net income (loss) attributable to noncontrolling interest	35.3		4.8
Net Income Attributable to NiSource	365.0		333.0
Preferred dividends	(6.7)		(13.8)
Preferred redemption premium	(14.0)		—
Net Income Available to Common Shareholders	344.3		319.2
Earnings Per Share
Basic Earnings Per Share	$	0.77	$	0.77
Diluted Earnings Per Share	$	0.77	$	0.71
Basic Average Common Shares Outstanding	447.9		412.8
Diluted Average Common Shares	449.4		447.1


	Three Months Ended March 31,
(in millions, net of taxes)	2024		2023
Net Income	$	400.3	$	337.8
Other comprehensive income:
Net unrealized loss on available-for-sale debt securities(1)	(0.3)		2.0
Reclassification adjustment for cash flow hedges(2)	(0.1)		0.1
Unrecognized pension and OPEB benefit (costs)(3)	0.2		0.3
Total other comprehensive income (loss)	(0.2)		2.4
Comprehensive Income	$	400.1	$	340.2


(in millions)	March 31, 2024		December 31, 2023
ASSETS
Property, Plant and Equipment
Plant	$	31,300.6	$	30,482.1
Accumulated depreciation and amortization	(8,354.5)		(8,207.2)


Net Property, Plant and Equipment(1)	22,946.1		22,274.9
Investments and Other Assets
Unconsolidated affiliates	5.4		5.3
Available-for-sale debt securities (amortized cost of $160.2 and $169.0, allowance for credit losses of $0.4 and $0.6, respectively)	150.1		159.1
Other investments	86.8		82.7
Total Investments and Other Assets	242.3		247.1
Current Assets
Cash and cash equivalents	102.2		2,245.4
Restricted cash	38.3		35.7
Accounts receivable	877.2		884.9
Allowance for credit losses	(31.6)		(22.9)
Accounts receivable, net	845.6		862.0
Gas storage	70.1		265.8
Materials and supplies, at average cost	187.2		172.1
Electric production fuel, at average cost	66.3		65.3
Exchange gas receivable	43.2		66.0

Regulatory assets	260.4		214.3

Deposits to renewable generation asset developer	285.8		454.2
Prepayments and other	161.1		118.6
Total Current Assets(1)	2,060.2		4,499.4
Other Assets
Regulatory assets	2,231.7		2,245.9
Goodwill	1,485.9		1,485.9

Deferred charges and other	371.9		324.0
Total Other Assets	4,089.5		4,055.8
Total Assets	$	29,338.1	$	31,077.2


(in millions, except share amounts)	March 31, 2024		December 31, 2023
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholders’ Equity
Common stock - $0.01 par value,750,000,000 shares authorized; 448,197,604 and 447,381,671 shares outstanding, respectively	$	4.5	$	4.5
Preferred stock - $0.01 par value, 20,000,000 shares authorized; 0 and 40,000 shares outstanding, respectively	—		486.1
Treasury stock	(99.9)		(99.9)
Additional paid-in capital	8,886.8		8,879.5
Retained deficit	(861.7)		(967.0)
Accumulated other comprehensive loss	(33.8)		(33.6)
Total NiSource Stockholders’ Equity	7,895.9		8,269.6
Noncontrolling interest in consolidated subsidiaries	1,899.0		1,866.7
Total Stockholders' Equity	9,794.9		10,136.3
Long-term debt, excluding amounts due within one year	11,724.6		11,055.5
Total Capitalization	21,519.5		21,191.8
Current Liabilities
Current portion of long-term debt	24.0		23.8
Short-term borrowings	1,222.3		3,048.6
Accounts payable	612.5		749.4
Dividends payable - common stock	119.0		—

Customer deposits and credits	189.5		294.4
Taxes accrued	169.5		166.2
Interest accrued	148.6		136.1

Exchange gas payable	17.1		50.5
Regulatory liabilities	237.6		278.6


Asset retirement obligations	78.0		72.5
Accrued compensation and employee benefits	136.0		227.6


Other accruals	170.9		217.4
Total Current Liabilities(1)	3,125.0		5,265.1
Other Liabilities

Deferred income taxes	2,159.5		2,080.4


Accrued liability for postretirement and postemployment benefits	244.8		250.1
Regulatory liabilities	1,482.0		1,510.7
Asset retirement obligations	509.6		480.5
Other noncurrent liabilities and deferred credits	297.7		298.6
Total Other Liabilities(1)	4,693.6		4,620.3
Commitments and Contingencies (Refer to Note 15, "Other Commitments and Contingencies")
Total Capitalization and Liabilities	$	29,338.1	$	31,077.2


Three Months Ended March 31, (in millions)	2024		2023
Operating Activities
Net Income	$	400.3	$	337.8
Adjustments to Reconcile Net Income to Net Cash from Operating Activities:

Depreciation and amortization	242.1		206.9
Deferred income taxes and investment tax credits	61.6		75.5



Payments for asset retirement obligations	(12.0)		(5.5)
Other adjustments	7.8		1.1
Changes in Assets and Liabilities:









Components of working capital	(235.2)		71.1
Regulatory assets/liabilities	18.4		11.0


Deferred charges and other noncurrent assets	(18.0)		(12.0)
Other noncurrent liabilities and deferred credits	(8.8)		(2.5)

Net Cash Flows from Operating Activities	456.2		683.4
Investing Activities
Capital expenditures	(589.5)		(557.1)





Milestone payments to renewable generation asset developer	(110.6)		(137.3)
Other investing activities	(22.9)		(33.4)

Net Cash Flows used for Investing Activities	(723.0)		(727.8)
Financing Activities
Proceeds from issuance of long-term debt	644.4		744.2
Repayments of finance lease obligations	(7.2)		(8.1)


Repayment of short term credit agreements	(1,650.0)		—
Net change in commercial paper and other short-term borrowings	(176.3)		(480.4)
Issuance of common stock, net of issuance costs	2.7		3.0
Redemption of preferred stock	(486.1)		—
Preferred stock redemption premium	(14.0)		—
Equity costs, premiums and other debt related costs	(57.6)		(11.8)
Contributions from noncontrolling interests	—		3.6
Distributions to noncontrolling interests	(3.0)		(5.3)

Dividends paid - common stock	(118.6)		(103.2)
Dividends paid - preferred stock	(8.1)		(8.1)
Contract liability payment	—		(16.6)



Net Cash Flows from Financing Activities	(1,873.8)		117.3
Change in cash, cash equivalents and restricted cash	(2,140.6)		72.9
Cash, cash equivalents and restricted cash at beginning of period	2,281.1		75.4
Cash, Cash Equivalents and Restricted Cash at End of Period	$	140.5	$	148.3

























(in millions)	Common Stock		Preferred Stock		Treasury Stock		Additional Paid-In Capital		Retained Deficit		Accumulated Other Comprehensive Loss		Noncontrolling Interest in Consolidated Subsidiaries		Total
Balance as of January 1, 2024	$	4.5	$	486.1	$	(99.9)	$	8,879.5	$	(967.0)	$	(33.6)	$	1,866.7	$	10,136.3
Comprehensive Income:
Net income	—		—		—		—		365.0		—		35.3		400.3
Other comprehensive loss, net of tax	—		—		—		—		—		(0.2)		—		(0.2)
Dividends:
Common stock ($0.53 per share)	—		—		—		—		(237.6)		—		—		(237.6)
Preferred stock (See Note 6)	—		—		—		—		(8.1)		—		—		(8.1)
Noncontrolling Interests:


Distributions to noncontrolling interests	—		—		—		—		—		—		(3.0)		(3.0)


Stock issuances (redemptions):

Series B and B-1 Preferred Stock Redemption	—		(486.1)		—		—		—		—		—		(486.1)

Series B and B-1 Preferred stock redemption premium	—		—		—		—		(14.0)		—		—		(14.0)
Employee stock purchase plan	—		—		—		1.4		—		—		—		1.4
Long-term incentive plan	—		—		—		3.3		—		—		—		3.3
401(k) and profit sharing	—		—		—		2.6		—		—		—		2.6

Balance as of March 31, 2024	$	4.5	$	—	$	(99.9)	$	8,886.8	$	(861.7)	$	(33.8)	$	1,899.0	$	9,794.9
















	Preferred	Common
Shares (in thousands)	Shares	Shares	Treasury	Outstanding
Balance as of January 1, 2024	40	451,345	(3,963)	447,382
Issued (Redeemed):


Employee stock purchase plan	—	53	—	53
Long-term incentive plan	—	663	—	663
401(k) and profit sharing	—	100	—	100


Series B and B-1 Preferred Stock	(40)	—	—	—
Balance as of March 31, 2024	—	452,161	(3,963)	448,198














	Preferred	Common
Shares (in thousands)	Shares	Shares	Treasury	Outstanding
Balance as of January 1, 2023	1,303	416,106	(3,963)	412,143
Issued:


Employee stock purchase plan	—	48	—	48
Long-term incentive plan	—	695	—	695
401(k) and profit sharing	—	97	—	97

Balance as of March 31, 2023	1,303	416,946	(3,963)	412,983


Three months ended March 31, 2024 (in millions)	Columbia Operations		NIPSCO Operations		Corporate and Other		Total
Gas Distribution
Residential	$	628.0	$	212.1	$	—	$	840.1
Commercial	220.4		74.7		—		295.1
Industrial	40.1		23.8		—		63.9
Off-system	12.8		—		—		12.8
Wholesale	0.8		—		—		0.8

Miscellaneous(1)	8.2		7.9		—		16.1
Subtotal	$	910.3	$	318.5	$	—	$	1,228.8
Electric Generation and Power Delivery
Residential	$	—	$	143.8	$	—	$	143.8
Commercial	—		142.9		—		142.9
Industrial	—		115.9		—		115.9
Wholesale	—		6.3		—		6.3
Public Authority	—		2.1		—		2.1
Miscellaneous(1)	—		3.2		—		3.2

Subtotal	$	—	$	414.2	$	—	$	414.2
Total Customer Revenues(2)	910.3		732.7		—		1,643.0
Other Revenues(3)	43.4		19.7		0.2		63.3
Total Operating Revenues	$	953.7	$	752.4	$	0.2	$	1,706.3
(1)Amounts included in Columbia Operations are primarily related to earnings share mechanisms and late fees. Amounts included in NIPSCO Operations are primarily related to revenue refunds, public repairs and property rentals. (2)Customer revenue amounts exclude intersegment revenues. See Note 17, "Business Segment Information," for discussion of intersegment revenues. (3)Amounts included in Columbia Operations primarily relate to weather normalization adjustment mechanisms. Amounts included in NIPSCO Operations primarily relate to MISO multi-value projects and revenue from non-jurisdictional transmission assets.

Three months ended March 31, 2023 (in millions)	Columbia Operations		NIPSCO Operations		Corporate and Other		Total
Gas Distribution
Residential	$	684.6	$	302.4	$	—	$	987.0
Commercial	248.0		112.6		—		360.6
Industrial	40.4		31.5		—		71.9
Off-system	17.2		—		—		17.2
Wholesale	1.0		—		—		1.0

Miscellaneous(1)	11.8		5.6		—		17.4
Subtotal	$	1,003.0	$	452.1	$	—	$	1,455.1
Electric Generation and Power Delivery
Residential	$	—	$	150.4	$	—	$	150.4
Commercial	—		150.9		—		150.9
Industrial	—		134.2		—		134.2

Wholesale	—		2.6		—		2.6
Public Authority	—		2.1		—		2.1
Miscellaneous(1)	—		0.8		—		0.8
Subtotal	$	—	$	441.0	$	—	$	441.0
Total Customer Revenues(2)	1,003.0		893.1		—		1,896.1
Other Revenues(3)	45.9		23.8		0.2		69.9
Total Operating Revenues	$	1,048.9	$	916.9	$	0.2	$	1,966.0
(1)Amounts included in Columbia Operations are primarily related to earnings share mechanisms and late fees. Amounts included in NIPSCO Operations, are primarily related to revenue refunds, public repairs and property rentals. (2)Customer revenue amounts exclude intersegment revenues. See Note 17, "Business Segment Information," for discussion of intersegment revenues. (3)Amounts included in Columbia Operations are primarily relate to weather normalization adjustment mechanisms. Amounts included in NIPSCO Operations primarily relate to MISO multi-value projects and revenue from non-jurisdictional transmission assets.


(in millions)	Customer Accounts Receivable, Billed (less reserve)		Customer Accounts Receivable, Unbilled (less reserve)
Balance as of December 31, 2023	$	479.4	$	337.6
Balance as of March 31, 2024	552.1		263.6


	March 31, 2024				December 31, 2023
(in millions)	Assets		Liabilities		Assets		Liabilities
Current(1)

Derivatives not designated as hedging instruments	$	3.0	$	11.6	$	1.1	$	7.5
Total	$	3.0	$	11.6	$	1.1	$	7.5
Noncurrent(2)

Derivatives not designated as hedging instruments	$	20.2	$	1.9	$	22.2	$	1.9
Total	$	20.2	$	1.9	$	22.2	$	1.9


(in millions)	March 31, 2024		December 31, 2023
Regulatory Assets
Losses on commodity price risk programs	$	20.1	$	24.4
Regulatory Liabilities
Gains on commodity price risk programs	23.3		23.3


	Three Months Ended March 31,
(in millions)		2024			2023			Favorable (Unfavorable)
Operating Revenues		$	956.9		$	1,051.9		$	(95.0)
Operating Expenses
Cost of energy		228.8			338.3			109.5
Operation and maintenance		210.7			220.5			9.8
Depreciation and amortization		98.2			87.7			(10.5)


Other taxes		57.2			53.6			(3.6)
Total Operating Expenses		594.9			700.1			105.2
Operating Income		$	362.0		$	351.8		$	10.2
Revenues
Residential		$	665.8		$	722.9		$	(57.1)
Commercial		225.3			253.2			(27.9)
Industrial		40.4			40.5			(0.1)
Off-System		12.7			17.2			(4.5)
Other		12.7			18.1			(5.4)
Total		$	956.9		$	1,051.9		$	(95.0)
Sales and Transportation (MMDth)
Residential		77.0			74.4			2.6
Commercial		54.3			50.7			3.6
Industrial		68.5			61.6			6.9
Off-System		7.3			7.4			(0.1)
Other		0.2			0.2			—
Total		207.3			194.3			13.0
Heating Degree Days(1)		2,284			2,229			55
Normal Heating Degree Days(1)		2,739			2,729			10
% (Warmer) than Normal		(17)		%	(18)		%
% Colder than prior year		2		%
Columbia Operations Customers
Residential		2,222,345			2,212,247			10,098
Commercial		189,394			189,222			172
Industrial		1,980			2,074			(94)
Other		5			3			2
Total		2,413,724			2,403,546			10,178


	Favorable (Unfavorable)
Changes in Operating Revenues (in millions)	Three Months Ended March 31, 2024 vs 2023
New rates from base rate proceedings and regulatory capital programs	$	34.9
Increased customer usage	8.1
The effects of customer growth	2.2

The effects of weather in 2024 compared to 2023	1.6

Other	(2.9)
Change in operating revenues (before cost of energy and other tracked items)	$	43.9
Operating revenues offset in operating expense
Lower cost of energy billed to customers	(109.4)
Lower tracker deferrals within operation and maintenance, depreciation, and tax	(29.5)

Total change in operating revenues	$	(95.0)


Recurring Fair Value Measurements March 31, 2024 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of March 31, 2024
Assets

Risk management assets	$	—	$	23.2	$	—	$	23.2

Available-for-sale debt securities	—		150.1		—		150.1
Total	$	—	$	173.3	$	—	$	173.3
Liabilities

Risk management liabilities	$	—	$	13.5	$	—	$	13.5
Total	$	—	$	13.5	$	—	$	13.5


Recurring Fair Value Measurements December 31, 2023 (in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2023
Assets


Risk management assets	$	—	$	23.3	$	—	$	23.3


Available-for-sale debt securities	—		159.1		—		159.1
Total	$	—	$	182.4	$	—	$	182.4
Liabilities

Risk management liabilities	$	—	$	9.4	$	—	$	9.4
Total	$	—	$	9.4	$	—	$	9.4


March 31, 2024 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses(1)		Allowance for Credit Losses		Fair Value
Available-for-sale debt securities
U.S. Treasury debt securities	$	62.1	$	—	$	(3.3)	$	—	$	58.8
Corporate/Other debt securities	98.1		0.6		(7.0)		(0.4)		91.3
Total	$	160.2	$	0.6	$	(10.3)	$	(0.4)	$	150.1

December 31, 2023 (in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses(2)		Allowance for Credit Losses		Fair Value
Available-for-sale debt securities
U.S. Treasury debt securities	$	63.8	$	—	$	(3.2)	$	—	$	60.6
Corporate/Other debt securities	105.2		0.8		(6.9)		(0.6)		98.5
Total	$	169.0	$	0.8	$	(10.1)	$	(0.6)	$	159.1


(in millions)	Carrying Amount as of March 31, 2024		Estimated Fair Value as of March 31, 2024		Carrying Amount as of Dec. 31, 2023		Estimated Fair Value as of Dec. 31, 2023
Long-term debt (including current portion)	$	11,748.6	$	10,852.3	$	11,079.3	$	10,370.9














	Pension Benefits				OPEB
Three Months Ended March 31, (in millions)	2024		2023		2024		2023
Components of Net Periodic Benefit Cost(1)
Service cost	$	5.4	$	5.1	$	1.3	$	1.3
Interest cost	16.3		17.1		5.4		5.4
Expected return on assets	(23.8)		(23.6)		(4.0)		(3.8)
Amortization of prior service credit	—		—		(0.4)		(0.5)
Recognized actuarial loss	7.2		8.4		0.8		0.8

Total Net Periodic Benefit Cost	$	5.1	$	7.0	$	3.1	$	3.2
(1)The service cost component and all non-service cost components of net periodic benefit (income) cost are presented in "Operation and maintenance" and "Other, net," respectively, on the Condensed Statements of Consolidated Income (unaudited).


(in millions)	Gains and Losses on Securities(1)		Gains and Losses on Cash Flow Hedges(1)		Pension and OPEB Items(1)		Accumulated Other Comprehensive Loss(1)
Balance as of January 1, 2024	$	(7.3)	$	(12.8)	$	(13.5)	$	(33.6)
Other comprehensive loss before reclassifications	(0.6)		(0.2)		(0.1)		(0.9)
Amounts reclassified from accumulated other comprehensive loss	0.3		0.1		0.3		0.7
Net current-period other comprehensive income (loss)	(0.3)		(0.1)		0.2		(0.2)

Balance as of March 31, 2024	$	(7.6)	$	(12.9)	$	(13.3)	$	(33.8)


Index			Page
Executive Summary			35
Summary of Consolidated Financial Results			37
Results and Discussion of Segment Operations			38
Columbia Operations			39
NIPSCO Operations			42
Liquidity and Capital Resources			47
Regulatory, Environmental and Safety Matters			51
Market Risk Disclosures			55
Other Information			56


	Favorable (Unfavorable)
Changes in Operating Expenses (in millions)	Three Months Ended March 31, 2024 vs 2023
Higher employee and administrative related expenses	$	(13.7)



Higher depreciation and amortization expense	(10.6)
Higher property tax	(2.6)



Higher outside services expenses	(2.4)


Other	(4.4)
Change in operating expenses (before cost of energy and other tracked items)	$	(33.7)
Operating expenses offset in operating revenue
Lower cost of energy billed to customers	109.4

Lower tracker deferrals within operation and maintenance, depreciation, and tax	29.5
Total change in operating expense	$	105.2


(in millions)
Company	Approved ROE		Requested Incremental Revenue		Approved Incremental Revenue		Filing Date	Rates Effective
Approved Rate Cases

Columbia of Pennsylvania(1)	None specified		$	82.2	$	44.5	March 18, 2022	December 2022

Columbia of Maryland(1)	None specified		$	6.5	$	3.9	May 12, 2023	December 2023
Columbia of Kentucky(2)	9.35	%	$	26.7	$	18.3	May 28, 2021	January 2022
Columbia of Virginia(3)	None specified		$	40.5	$	25.8	April 29, 2022	October 2022
Columbia of Ohio	9.60	%	$	221.4	$	68.3	June 30, 2021	March 2023
NIPSCO - Gas(4)	9.85	%	$	109.7	$	71.8	September 29, 2021	September 2022

NIPSCO - Electric(5)	9.80	%	$	291.8	$	261.9	September 19, 2022	August 2023
Pending Rate Cases
NIPSCO - Gas(6)	In process		$	161.9	In process		October 25, 2023	September 2024

Columbia of Pennsylvania	In process		$	124.1	In process		March 15, 2024	December 2024
Columbia of Virginia(7)	In process		$	37.2	In process		April 29, 2024	October 2024



(3.1)			Certificate of Elimination of the Company with respect to the Series B Preferred Stock and the Series B-1 Preferred Stock, dated March 18, 2024 (incorporated by reference to Exhibit 3.1 to the NiSource Inc. Form 8-K filed on March 18, 2024).

(4.1)			Form of 5.350% Notes due 2034 (incorporated by reference to Exhibit 4.1 to the NiSource Inc. Form 8-K filed on March 14, 2024).

(10.1)			Separation Agreement dated March 15, 2024, between NiSource Inc. and Donald Brown (incorporated by reference to Exhibit 10.1 to the NiSource Inc. Form 8-K filed on March 15, 2024).

(10.2)			Second Amended and Restated Limited Liability Company Agreement of NIPSCO Holdings II LLC, dated January 30, 2024 (incorporated by reference to Exhibit 10.44 to NiSource Inc. Form 10-K filed on February 21, 2024).

(10.3)			Form of 2024 CEO RSU Award Agreement (incorporated by reference to Exhibit 10.1 of the NiSource Inc. Form 10 -K filed on February 21, 2024).

(10.4)			Form of 2024 CEO PSU Award Agreement (incorporated by reference to Exhibit 10.2 of the NiSource Inc. Form 10-K filed on February 21, 2024).

(10.5)			Form of RSU Award Agreement (for awards on or after 2024) (incorporated by reference to Exhibit 10.3 of the NiSource Inc. Form 10-K filed on February 21, 2024).

(10.6)			Form of PSU Award Agreement (for awards on or after 2024) (incorporated by reference to Exhibit 10.48 of the NiSource Inc. Form 10-K filed on February 21, 2024).

(31.1)			Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

(31.2)			Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

(32.1)			Certification of Chief Executive Officer pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).*

(32.2)			Certification of Chief Financial Officer pursuant to 18. U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).*

(101.INS)			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

(101.SCH)			Inline XBRL Schema Document

(101.CAL)			Inline XBRL Calculation Linkbase Document

(101.LAB)			Inline XBRL Labels Linkbase Document

(101.PRE)			Inline XBRL Presentation Linkbase Document

(101.DEF)			Inline XBRL Definition Linkbase Document

(104)			Cover page Interactive Data File (formatted as inline XBRL, and contained in Exhibit 101.)

*			Exhibit filed herewith.
**			Schedules and similar attachments to this Exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule or exhibit to the U.S. Securities and Exchange Commission (the “SEC”) upon request


/s/ Lloyd M. Yates
Lloyd M. Yates
President and Chief Executive Officer

Date: May 8, 2024


/s/ Shawn Anderson
Shawn Anderson
Executive Vice President and Chief Financial Officer

Date: May 8, 2024