NiSource(US:NI)2024-05-08 18:10Financial Data and Key Metrics Changes - The company reported first quarter 2024 adjusted EPS of $0.85, a 10% increase from $0.77 in the previous year [21][58] - The total year-end 2023 rate base was $18.8 billion, with expectations for substantial low growth over the next five years due to data centers and reshoring of manufacturing [20][21] - The company reaffirmed 2024 adjusted EPS guidance of $1.70 to $1.74 and a long-term adjusted EPS growth rate of 6% to 8% annually [21][59] Business Line Data and Key Metrics Changes - The company has invested over $1.7 billion in capital expenditures over the 12-month period ending in March, while residential gas customer bills decreased by 15% during the same period [53] - The gas assets now have automatic shutoff valves and remote pressure monitoring on 100% of low-pressure systems, with 98% of gas service lines mapped as of year-end 2023 [24][51] Market Data and Key Metrics Changes - Northern Indiana is highlighted as a favorable market for data center development due to robust electric transmission and a pro-business policy environment [5][66] - The company is optimistic about the potential demand from data centers and is in discussions with several developers [66] Company Strategy and Development Direction - The company has a $16.4 billion base CapEx plan projected over the next five years, with additional upside projects exceeding $1.5 billion [3][54] - The focus is on balancing customer value with shareholder returns while maintaining a flexible capital structure [18][43] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of stable public policy and regulatory mechanisms for efficient capital allocation [3][18] - The company is committed to proactive engagement with stakeholders to ensure alignment and mitigate surprises during the regulatory cycle [10][49] Other Important Information - The company is undergoing a multi-year technology investment initiative to upgrade outdated technology, which is expected to drive reliability improvements and cost savings [22][54] - The NIPSCO gas settlement is expected to conclude with a final order in the third quarter of the year [10][49] Q&A Session Summary Question: What is the potential demand for data centers in Indiana? - Management noted that Northern Indiana has robust fundamentals for data center development and is optimistic about growing load from this sector [36][66] Question: What projects could move into the base plan from the $1.6 billion upside capital? - Management indicated that electric generation projects and gas infrastructure work related to compliance requirements are potential candidates for inclusion in the base plan [39][41] Question: What is the timeline for the NIPSCO deferral and its financial impact? - Management stated that the deferral mechanism should not negatively impact financials and expects an order on the NIPSCO gas rate case in the summer [47][49] Question: How much capital could flow through the technology capital deferral mechanism? - Approximately $250 million across NiSource is expected, with about $150 million allocated to NIPSCO [80] Question: What are the implications of the PHMSA rules for capital opportunities? - Management anticipates that finalized PHMSA rules will lead to capital additions in the middle of the plan, with compliance plans needing to be developed within specified timelines [82][90]