Research · Sep 3, 2026
[NI] NiSource Thesis 2026: Data Center Load Accelerates Indiana Grid Investment
NiSource delivered another year of 6-8% regulated utility EPS growth in FY2025 with non-GAAP EPS of ~$1.73 and rate base reaching ~$14.4B. The NIPSCO electric division's coal-to-renewables transition capex is accelerating on data center load additions in northern Indiana, adding ~$200-400M to the multi-year capital plan. The gas distribution franchise (Columbia Gas brands in 6 states) provides earnings stability. Regulatory rate case outcomes in Indiana and Ohio are the primary risk variable.