NiSource(US:NI)2025-05-07 16:00Financial Performance - The company reported adjusted EPS of $0.98 for Q1 2025, a 15% increase from $0.85 in the same quarter last year [7][21] - The company reaffirmed its 2025 adjusted EPS guidance of $1.85 to $1.89 and annual growth of 6% to 8% through 2029 [7][24] - The company achieved over 52% of its projected midpoint earnings for the year, an increase of 8% compared to the same period last year [21] Business Lines and Capital Investments - The company continues to advance its energy transition strategy, having installed 2,100 megawatts of renewable nameplate capacity [18] - The capital investment outlook projects over $19 billion over the next five years, with $2 billion identified for safety and reliability improvements [19] - The company is actively developing its base plan to include investments that meet its standards, focusing on electric generation, gas and electric customer growth, and system modernization [19][20] Market and Regulatory Environment - The company is engaged in collaborative regulatory processes to ensure resources for critical investments, such as the Ohio legislative proposal to modernize natural gas rate making [6][10] - The company has filed new rate cases in Pennsylvania and Virginia to recover significant anticipated investments necessary for reliable service [13][14] - The regulatory framework is seen as stable, which helps mitigate the impact of rising product costs on the business [23][24] Strategic Direction and Industry Competition - The company emphasizes operational excellence through initiatives like AI and Project Apollo, which aim to enhance efficiency and reduce waste [12][11] - The company is focused on maintaining a strong balance sheet and enhancing visibility into how investments convert into earnings [26] - The company is positioned to capitalize on economic development opportunities, particularly in data center development and onshoring manufacturing [28][102] Management Commentary on Future Outlook - Management expressed confidence in achieving 2025 guidance and sustaining long-term growth through a balanced and diversified business plan [24][26] - The company is assessing the impact of regulatory changes and executive orders on its operational plans, particularly regarding coal asset retirements [40][41] - Management highlighted the importance of flexibility in capital allocation decisions to adapt to changing market conditions [20][26] Other Important Information - The company is leveraging AI to optimize operations, resulting in significant productivity improvements across various regions [12] - The company has secured a significant portion of critical equipment to support its operations and capital plans for the five-year horizon [22] - The company is exploring opportunities for data center development across its service territories, including Ohio and Virginia [94][95] Q&A Session Summary Question: On the NIPSCO, Jenco filing, do you need to receive an outcome before announcing a signed agreement? - The company can proceed with a special contract and announce it without having the Genco completed [31] Question: How do you think about the pricing of PPAs relative to regulatory perspectives? - The Genco structure allows flexibility to respond to stakeholder needs, and NIPSCO will still be the resource adequacy provider [33] Question: Is there an opportunity to accelerate the $2.2 billion currently outside of the base plan? - The $2.2 billion upside does not include data center development; any data center capital would be incremental to the plan [35] Question: How are you assessing the impact of executive orders on your asset retirement plans? - The company is currently assessing the impact and will work with regulators to determine the best course of action [41] Question: What is the current engagement pace with large load prospective customers? - The company is making excellent progress but emphasizes the complexity of these transactions [55] Question: Can you discuss the regulatory cap structure for Genco? - The financing structure for Genco has not been disclosed yet, as the focus is on completing special contracts with customers [59] Question: What are the expectations for O&M costs moving forward? - The company expects O&M to remain flat year over year, driven by efficiency initiatives [116]