Delaware
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35-2108964
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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801 East 86th Avenue
Merrillville, Indiana
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46410
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(Address of principal executive offices)
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(Zip Code)
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Page
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PART I
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements - unaudited
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Condensed Statements of Consolidated Income
(unaudited)
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Item 2.
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Item 3.
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Item 4.
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PART II
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OTHER INFORMATION
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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DEFINED TERMS
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The following is a list of frequently used abbreviations or acronyms that are found in this report:
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NiSource Subsidiaries, Affiliates and Former Subsidiaries
|
|
Capital Markets
|
NiSource Capital Markets, Inc.
|
Columbia of Kentucky
|
Columbia Gas of Kentucky, Inc.
|
Columbia of Maryland
|
Columbia Gas of Maryland, Inc.
|
Columbia of Massachusetts
|
Bay State Gas Company
|
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
|
NiSource or the Company
|
NiSource Inc.
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NiSource Finance
|
NiSource Finance Corp.
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Abbreviations and Other
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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
|
CAA
|
Clean Air Act
|
CCRs
|
Coal Combustion Residuals
|
CEP
|
Capital Expenditure Program
|
CERCLA
|
Comprehensive Environmental Response Compensation and Liability Act (also known as Superfund)
|
CIAC
|
Contributions In Aid of Construction
|
CO
2
|
Carbon Dioxide
|
CPP
|
Clean Power Plan
|
DPU
|
Department of Public Utilities
|
DSM
|
Demand Side Management
|
ECR
|
Environmental Cost Recovery
|
ECT
|
Environmental Cost Tracker
|
EGUs
|
Electric Utility Generating Units
|
ELG
|
Effluent limitations guidelines
|
EPA
|
United States Environmental Protection Agency
|
EPS
|
Earnings per share
|
FAC
|
Fuel adjustment clause
|
FASB
|
Financial Accounting Standards Board
|
GAAP
|
Generally Accepted Accounting Principles
|
GCA
|
Gas cost adjustment
|
GCR
|
Gas cost recovery
|
GHG
|
Greenhouse gases
|
GSEP
|
Gas System Enhancement Program
|
gwh
|
Gigawatt hours
|
IBM
|
International Business Machines Corporation
|
IRP
|
Infrastructure Replacement Program
|
DEFINED TERMS
|
|
IURC
|
Indiana Utility Regulatory Commission
|
LDCs
|
Local distribution companies
|
MGP
|
Manufactured Gas Plant
|
MISO
|
Midcontinent Independent System Operator
|
MMDth
|
Million dekatherms
|
MPSC
|
Maryland Public Service Commission
|
NAAQS
|
National Ambient Air Quality Standards
|
NOL
|
Net operating loss
|
NYMEX
|
New York Mercantile Exchange
|
OCC
|
Ohio Consumers' Counsel
|
OPEB
|
Other Postretirement Benefits
|
OUCC
|
Office of Utility Consumer Counselor
|
Pure Air
|
Pure Air on the Lake LP
|
RCRA
|
Resource Conservation and Recovery Act
|
ppb
|
Parts per billion
|
PUCO
|
Public Utilities Commission of Ohio
|
SEC
|
Securities and Exchange Commission
|
TDSIC
|
Transmission, Distribution and Storage System Improvement Charge
|
VIE
|
Variable Interest Entities
|
VSCC
|
Virginia State Corporation Commission
|
Index
|
Page
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in millions, except per share amounts)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net Revenues
|
|
|
|
|
|
|
|||||||||
Gas Distribution
|
$
|
239.4
|
|
|
$
|
212.3
|
|
|
$
|
1,403.0
|
|
|
$
|
1,244.3
|
|
Gas Transportation
|
191.6
|
|
|
180.0
|
|
|
735.1
|
|
|
689.5
|
|
||||
Electric
|
485.8
|
|
|
465.5
|
|
|
1,365.5
|
|
|
1,249.2
|
|
||||
Other
|
0.2
|
|
|
3.5
|
|
|
2.7
|
|
|
12.5
|
|
||||
Gross Revenues
|
917.0
|
|
|
861.3
|
|
|
3,506.3
|
|
|
3,195.5
|
|
||||
Cost of Sales (excluding depreciation and amortization)
|
233.6
|
|
|
218.2
|
|
|
1,062.7
|
|
|
949.6
|
|
||||
Total Net Revenues
|
683.4
|
|
|
643.1
|
|
|
2,443.6
|
|
|
2,245.9
|
|
||||
Operating Expenses
|
|
|
|
|
|
|
|
||||||||
Operation and maintenance
|
383.3
|
|
|
336.6
|
|
|
1,184.9
|
|
|
1,028.9
|
|
||||
Depreciation and amortization
|
143.0
|
|
|
136.3
|
|
|
428.5
|
|
|
406.0
|
|
||||
Gain on sale of assets and impairments, net
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.4
|
)
|
||||
Other taxes
|
57.5
|
|
|
56.6
|
|
|
189.7
|
|
|
178.1
|
|
||||
Total Operating Expenses
|
583.8
|
|
|
529.4
|
|
|
1,803.0
|
|
|
1,612.6
|
|
||||
Operating Income
|
99.6
|
|
|
113.7
|
|
|
640.6
|
|
|
633.3
|
|
||||
Other Income (Deductions)
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
(87.9
|
)
|
|
(85.0
|
)
|
|
(260.8
|
)
|
|
(261.5
|
)
|
||||
Other, net
|
4.8
|
|
|
3.5
|
|
|
9.8
|
|
|
(1.9
|
)
|
||||
Loss on early extinguishment of long-term debt
|
—
|
|
|
—
|
|
|
(111.5
|
)
|
|
—
|
|
||||
Total Other Deductions, Net
|
(83.1
|
)
|
|
(81.5
|
)
|
|
(362.5
|
)
|
|
(263.4
|
)
|
||||
Income from Continuing Operations before Income Taxes
|
16.5
|
|
|
32.2
|
|
|
278.1
|
|
|
369.9
|
|
||||
Income Taxes
|
2.5
|
|
|
8.5
|
|
|
97.1
|
|
|
130.6
|
|
||||
Income from Continuing Operations
|
14.0
|
|
|
23.7
|
|
|
181.0
|
|
|
239.3
|
|
||||
Income (Loss) from Discontinued Operations - net of taxes
|
—
|
|
|
3.5
|
|
|
(0.1
|
)
|
|
3.4
|
|
||||
Net Income
|
14.0
|
|
|
27.2
|
|
|
180.9
|
|
|
242.7
|
|
||||
Basic Earnings Per Share
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
$
|
0.55
|
|
|
$
|
0.74
|
|
Discontinued operations
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.02
|
|
||||
Basic Earnings Per Share
|
$
|
0.04
|
|
|
$
|
0.08
|
|
|
$
|
0.55
|
|
|
$
|
0.76
|
|
Diluted Earnings Per Share
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
$
|
0.55
|
|
|
$
|
0.74
|
|
Discontinued operations
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
||||
Diluted Earnings Per Share
|
$
|
0.04
|
|
|
$
|
0.08
|
|
|
$
|
0.55
|
|
|
$
|
0.75
|
|
Dividends Declared Per Common Share
|
$
|
0.175
|
|
|
$
|
0.165
|
|
|
$
|
0.700
|
|
|
$
|
0.640
|
|
Basic Average Common Shares Outstanding
|
331.1
|
|
|
322.3
|
|
|
326.7
|
|
|
321.4
|
|
||||
Diluted Average Common Shares
|
332.4
|
|
|
323.9
|
|
|
328.0
|
|
|
323.2
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in millions, net of taxes)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net Income
|
$
|
14.0
|
|
|
$
|
27.2
|
|
|
$
|
180.9
|
|
|
$
|
242.7
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Net unrealized gain (loss) on available-for-sale securities
(1)
|
0.1
|
|
|
(0.3
|
)
|
|
1.1
|
|
|
2.2
|
|
||||
Net unrealized loss on cash flow hedges
(2)
|
(9.3
|
)
|
|
(22.6
|
)
|
|
(21.2
|
)
|
|
(146.8
|
)
|
||||
Unrecognized pension and OPEB benefit
(3)
|
1.1
|
|
|
0.2
|
|
|
1.5
|
|
|
0.7
|
|
||||
Total other comprehensive loss
|
(8.1
|
)
|
|
(22.7
|
)
|
|
(18.6
|
)
|
|
(143.9
|
)
|
||||
Comprehensive Income
|
$
|
5.9
|
|
|
$
|
4.5
|
|
|
$
|
162.3
|
|
|
$
|
98.8
|
|
NiSource Inc.
Condensed Consolidated Balance Sheets (unaudited)
|
|||||||
(in millions)
|
September 30,
2017 |
|
December 31,
2016 |
||||
ASSETS
|
|
|
|
||||
Property, Plant and Equipment
|
|
|
|
||||
Utility plant
|
$
|
20,657.6
|
|
|
$
|
19,368.0
|
|
Accumulated depreciation and amortization
|
(6,906.2
|
)
|
|
(6,613.7
|
)
|
||
Net utility plant
|
13,751.4
|
|
|
12,754.3
|
|
||
Other property, at cost, less accumulated depreciation
|
290.7
|
|
|
313.7
|
|
||
Net Property, Plant and Equipment
|
14,042.1
|
|
|
13,068.0
|
|
||
Investments and Other Assets
|
|
|
|
||||
Unconsolidated affiliates
|
5.6
|
|
|
6.6
|
|
||
Other investments
|
207.7
|
|
|
193.3
|
|
||
Total Investments and Other Assets
|
213.3
|
|
|
199.9
|
|
||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
19.3
|
|
|
26.4
|
|
||
Restricted cash
|
9.0
|
|
|
9.6
|
|
||
Accounts receivable (less reserve of $17.4 and $23.3, respectively)
|
480.0
|
|
|
847.0
|
|
||
Gas inventory
|
325.2
|
|
|
279.9
|
|
||
Materials and supplies, at average cost
|
102.3
|
|
|
101.7
|
|
||
Electric production fuel, at average cost
|
84.0
|
|
|
112.8
|
|
||
Exchange gas receivable
|
42.9
|
|
|
5.4
|
|
||
Regulatory assets
|
203.9
|
|
|
248.7
|
|
||
Prepayments and other
|
65.8
|
|
|
130.6
|
|
||
Total Current Assets
|
1,332.4
|
|
|
1,762.1
|
|
||
Other Assets
|
|
|
|
||||
Regulatory assets
|
1,666.2
|
|
|
1,636.7
|
|
||
Goodwill
|
1,690.7
|
|
|
1,690.7
|
|
||
Intangible assets
|
234.4
|
|
|
242.7
|
|
||
Deferred charges and other
|
90.4
|
|
|
91.8
|
|
||
Total Other Assets
|
3,681.7
|
|
|
3,661.9
|
|
||
Total Assets
|
$
|
19,269.5
|
|
|
$
|
18,691.9
|
|
NiSource Inc.
Condensed Consolidated Balance Sheets (unaudited) (continued)
|
|||||||
(in millions, except share amounts)
|
September 30,
2017 |
|
December 31,
2016 |
||||
CAPITALIZATION AND LIABILITIES
|
|
|
|
||||
Capitalization
|
|
|
|
||||
Common Stockholders’ Equity
|
|
|
|
||||
Common stock - $0.01 par value, 400,000,000 shares authorized; 336,691,078 and 323,159,672 shares outstanding, respectively
|
$
|
3.4
|
|
|
$
|
3.3
|
|
Treasury stock
|
(94.6
|
)
|
|
(88.7
|
)
|
||
Additional paid-in capital
|
5,518.5
|
|
|
5,153.9
|
|
||
Retained deficit
|
(1,020.6
|
)
|
|
(972.2
|
)
|
||
Accumulated other comprehensive loss
|
(43.7
|
)
|
|
(25.1
|
)
|
||
Total Common Stockholders’ Equity
|
4,363.0
|
|
|
4,071.2
|
|
||
Long-term debt, excluding amounts due within one year
|
7,518.6
|
|
|
6,058.2
|
|
||
Total Capitalization
|
11,881.6
|
|
|
10,129.4
|
|
||
Current Liabilities
|
|
|
|
||||
Current portion of long-term debt
|
289.8
|
|
|
363.1
|
|
||
Short-term borrowings
|
843.2
|
|
|
1,488.0
|
|
||
Accounts payable
|
447.4
|
|
|
539.4
|
|
||
Dividends payable
|
58.9
|
|
|
—
|
|
||
Customer deposits and credits
|
253.1
|
|
|
264.1
|
|
||
Taxes accrued
|
148.4
|
|
|
195.4
|
|
||
Interest accrued
|
89.2
|
|
|
120.3
|
|
||
Exchange gas payable
|
68.0
|
|
|
83.7
|
|
||
Regulatory liabilities
|
55.1
|
|
|
116.7
|
|
||
Legal and environmental
|
27.5
|
|
|
37.4
|
|
||
Accrued compensation and employee benefits
|
167.0
|
|
|
161.4
|
|
||
Other accruals
|
119.2
|
|
|
82.7
|
|
||
Total Current Liabilities
|
2,566.8
|
|
|
3,452.2
|
|
||
Other Liabilities
|
|
|
|
||||
Risk management liabilities
|
28.7
|
|
|
44.5
|
|
||
Deferred income taxes
|
2,619.4
|
|
|
2,528.0
|
|
||
Deferred investment tax credits
|
12.6
|
|
|
13.4
|
|
||
Accrued insurance liabilities
|
89.0
|
|
|
82.8
|
|
||
Accrued liability for postretirement and postemployment benefits
|
397.3
|
|
|
713.4
|
|
||
Regulatory liabilities
|
1,217.8
|
|
|
1,265.1
|
|
||
Asset retirement obligations
|
268.5
|
|
|
262.6
|
|
||
Other noncurrent liabilities
|
187.8
|
|
|
200.5
|
|
||
Total Other Liabilities
|
4,821.1
|
|
|
5,110.3
|
|
||
Commitments and Contingencies (Refer to Note 14, "Other Commitments and Contingencies")
|
—
|
|
|
—
|
|
||
Total Capitalization and Liabilities
|
$
|
19,269.5
|
|
|
$
|
18,691.9
|
|
NiSource Inc.
Condensed Statements of Consolidated Cash Flows (unaudited)
|
|||||||
Nine Months Ended September 30,
(in millions)
|
2017
|
|
2016
|
||||
Operating Activities
|
|
|
|
||||
Net Income
|
$
|
180.9
|
|
|
$
|
242.7
|
|
Adjustments to Reconcile Net Income to Net Cash from Continuing Operations:
|
|
|
|
||||
Loss on early extinguishment of debt
|
111.5
|
|
|
—
|
|
||
Depreciation and amortization
|
428.5
|
|
|
406.0
|
|
||
Deferred income taxes and investment tax credits
|
96.3
|
|
|
137.7
|
|
||
Other adjustments
|
28.5
|
|
|
24.5
|
|
||
Changes in Assets and Liabilities:
|
|
|
|
||||
Components of working capital
|
32.6
|
|
|
(52.0
|
)
|
||
Regulatory assets/liabilities
|
(12.9
|
)
|
|
(202.2
|
)
|
||
Postretirement and postemployment benefits
|
(314.5
|
)
|
|
(20.9
|
)
|
||
Other noncurrent assets
|
(3.7
|
)
|
|
(3.0
|
)
|
||
Other noncurrent liabilities
|
(17.7
|
)
|
|
—
|
|
||
Net Operating Activities from Continuing Operations
|
529.5
|
|
|
532.8
|
|
||
Net Operating Activities from (used for) Discontinued Operations
|
0.1
|
|
|
(0.8
|
)
|
||
Net Cash Flows from Operating Activities
|
529.6
|
|
|
532.0
|
|
||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(1,216.4
|
)
|
|
(1,083.4
|
)
|
||
Cost of removal
|
(78.9
|
)
|
|
(79.5
|
)
|
||
Purchases of available-for-sale securities
|
(139.4
|
)
|
|
(33.4
|
)
|
||
Sales of available-for-sale securities
|
129.4
|
|
|
25.9
|
|
||
Other investing activities
|
(0.8
|
)
|
|
2.2
|
|
||
Net Cash Flows used for Investing Activities
|
(1,306.1
|
)
|
|
(1,168.2
|
)
|
||
Financing Activities
|
|
|
|
||||
Issuance of long-term debt
|
2,750.0
|
|
|
500.0
|
|
||
Repayments of long-term debt and capital lease obligations
|
(1,352.4
|
)
|
|
(210.9
|
)
|
||
Premiums and other debt related costs
|
(139.8
|
)
|
|
(0.3
|
)
|
||
Change in short-term borrowings, net
|
(644.9
|
)
|
|
491.6
|
|
||
Issuance of common stock
|
332.6
|
|
|
16.8
|
|
||
Acquisition of treasury stock
|
(5.9
|
)
|
|
(8.1
|
)
|
||
Dividends paid - common stock
|
(170.2
|
)
|
|
(152.3
|
)
|
||
Net Cash Flows from Financing Activities
|
769.4
|
|
|
636.8
|
|
||
Change in cash and cash equivalents from (used for) continuing operations
|
(7.2
|
)
|
|
1.4
|
|
||
Change in cash and cash equivalents from (used for) discontinued operations
|
0.1
|
|
|
(0.8
|
)
|
||
Cash and cash equivalents at beginning of period
|
26.4
|
|
|
15.5
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
19.3
|
|
|
$
|
16.1
|
|
As of September 30,
(in millions)
|
2017
|
|
2016
|
||||
Non-cash transactions:
|
|
|
|
||||
Capital expenditures included in current liabilities
|
$
|
219.1
|
|
|
$
|
131.2
|
|
Dividends declared but not paid
|
$
|
58.9
|
|
|
$
|
53.1
|
|
(in millions)
|
Common
Stock
|
|
Treasury
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
|
||||||||||||
Balance as of January 1, 2017
|
$
|
3.3
|
|
|
$
|
(88.7
|
)
|
|
$
|
5,153.9
|
|
|
$
|
(972.2
|
)
|
|
$
|
(25.1
|
)
|
|
$
|
4,071.2
|
|
Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
180.9
|
|
|
—
|
|
|
180.9
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.6
|
)
|
|
(18.6
|
)
|
||||||
Common stock dividends ($0.70 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(229.3
|
)
|
|
—
|
|
|
(229.3
|
)
|
||||||
Treasury stock acquired
|
—
|
|
|
(5.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.9
|
)
|
||||||
Stock issuances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Employee stock purchase plan
|
—
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
||||||
Long-term incentive plan
|
—
|
|
|
—
|
|
|
11.2
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
||||||
401(k) and profit sharing
|
—
|
|
|
—
|
|
|
28.8
|
|
|
—
|
|
|
—
|
|
|
28.8
|
|
||||||
Dividend reinvestment plan
|
—
|
|
|
—
|
|
|
6.3
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
||||||
ATM program
|
0.1
|
|
|
—
|
|
|
314.6
|
|
|
—
|
|
|
—
|
|
|
314.7
|
|
||||||
Balance as of September 30, 2017
|
$
|
3.4
|
|
|
$
|
(94.6
|
)
|
|
$
|
5,518.5
|
|
|
$
|
(1,020.6
|
)
|
|
$
|
(43.7
|
)
|
|
$
|
4,363.0
|
|
Shares
(in thousands)
|
Common Shares
|
|
Treasury Shares
|
|
Outstanding Shares
|
|||
Balance as of January 1, 2017
|
326,664
|
|
|
(3,504
|
)
|
|
323,160
|
|
Treasury Stock acquired
|
|
|
(245
|
)
|
|
(245
|
)
|
|
Issued:
|
|
|
|
|
|
|||
Employee stock purchase plan
|
155
|
|
|
—
|
|
|
155
|
|
Long-term incentive plan
|
241
|
|
|
—
|
|
|
241
|
|
401(k) and profit sharing
|
1,188
|
|
|
—
|
|
|
1,188
|
|
Dividend reinvestment plan
|
261
|
|
|
—
|
|
|
261
|
|
ATM program
|
11,931
|
|
|
—
|
|
|
11,931
|
|
Balance as of September 30, 2017
|
340,440
|
|
|
(3,749
|
)
|
|
336,691
|
|
Standard
|
Description
|
Effective Date
|
Effect on the financial statements or other significant matters
|
ASU 2017-07,
Compensation -
Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
|
The pronouncement changes how defined benefit pension and other postretirement benefit plans present net periodic benefit cost. The service cost component of net periodic benefit cost will be included with other employee compensation costs whereas other components of the net periodic benefit cost will be disclosed separately outside of income from operations in the income statement. Additionally, only the service cost component of net periodic benefit cost will be eligible for capitalization.
|
Annual periods beginning after December 15, 2017, including interim periods therein. Early adoption is permitted.
|
NiSource plans to adopt the standard effective January 1, 2018. Upon adoption, NiSource will continue to present the service cost component of net periodic benefit cost within "Operation and maintenance"; however, other components of the net periodic benefit cost will be presented separately below "Operating Income" in the income statement. This change in income statement presentation will be implemented on a retrospective basis. Additionally, beginning prospectively on the date of adoption, only the service cost component of NiSource's net periodic benefit cost component will be eligible for capitalization as "Property, Plant and Equipment" on the balance sheet. NiSource is currently evaluating the impact of adoption on the Condensed Consolidated Financial Statements (unaudited) and Notes to Condensed Consolidated Financial Statements (unaudited).
|
Standard
|
Description
|
Effective Date
|
Effect on the financial statements or other significant matters
|
ASU 2016-12,
Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients
|
The pronouncement clarifies implementation guidance in ASU 2014-09 on assessing collectability, noncash consideration and the presentation of sales and other similar taxes collected from customers.
|
Annual periods beginning after December 15, 2017, including interim periods therein. Early adoption is permitted for annual or interim periods beginning after December 15, 2016.
|
NiSource has formed an internal stakeholder group to promote information sharing and communication of the new requirements. Additionally, NiSource participates in an informal forum of industry peers where questions can be asked and interpretations of the new standard can be shared. Involvement in this group has resulted in additional clarity on industry-specific issues such as treatment of CIAC, scoping of tariff arrangements and presentation of alternative revenue programs. This clarity has furthered NiSource's adoption efforts. NiSource has separated its various revenue streams into high-level categories, which serve as the basis for accounting analysis and documentation as it relates to the pronouncement's impact on NiSource's revenues. Substantially all of NiSource’s revenues are tariff based, which NiSource concluded will be in scope of ASC 606. Based on evaluation performed to date, NiSource generally expects that the revenue from tariff based sales will continue to be equivalent to the natural gas or electricity supplied and billed each period (including unbilled revenues) and the adoption of the new guidance will not result in a material shift in the amount or timing of revenue recognition for such sales. NiSource has also undertaken efforts to outline mock footnote disclosures intended to satisfy ASC 606's disclosure requirements and expects to enhance its disclosures on revenue recognition policies and elections. Certain disclosure options continue to be evaluated at NiSource, including method and level of revenue disaggregation. NiSource intends to adopt this ASU effective January 1, 2018 and plans to use the modified retrospective method of adoption. If applicable, this method requires a cumulative effect adjustment to be recorded on the balance sheet as of January 1, 2018 and disclosures reconciling results under the new revenue recognition guidance to results under previous guidance. In its evaluation, NiSource continues to monitor industry implementation issues which could impact accounting policies and revenue recognition, including NiSource's preliminary conclusions described above.
|
ASU 2016-08,
Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations
|
The pronouncement clarifies the principal versus agent guidance in ASU 2014-09. The amendment clarifies how an entity should identify the unit of accounting for the principal versus agent evaluation, and how it should apply the control principle to certain types of arrangements.
|
||
ASU 2014-09,
Revenue from Contracts with Customers (Topic 606)
|
The pronouncement outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
|
Standard
|
Description
|
Effective Date
|
Effect on the financial statements or other significant matters
|
ASU 2016-02,
Leases (Topic 842)
|
The pronouncement introduces a lessee model that brings most leases on the balance sheet. The standard requires that lessees recognize the following for all leases (with the exception of short-term leases, as that term is defined in the standard) at the lease commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.
|
Annual periods beginning after December 15, 2018, including interim periods therein. Early adoption is permitted.
|
NiSource has formed an internal stakeholder group that meets periodically to share information and gather data related to leasing activity at NiSource. This includes compiling a list of all contracts that could meet the definition of a lease under the new standard and evaluating the accounting for these contracts under the new standard to determine the ultimate impact the new standard will have on NiSource’s financial statements. Also, this procedure has identified process improvements to ensure data from newly initiated leases is captured to comply with the new standard. This work included the assistance of a third-party advisory firm. NiSource plans to adopt this standard effective January 1, 2019.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
(in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Denominator
|
|
|
|
|
|
|
|
||||
Basic average common shares outstanding
|
331,139
|
|
|
322,318
|
|
|
326,662
|
|
|
321,445
|
|
Dilutive potential common shares:
|
|
|
|
|
|
|
|
||||
Shares contingently issuable under employee stock plans
|
604
|
|
|
228
|
|
|
503
|
|
|
146
|
|
Shares restricted under employee stock plans
|
653
|
|
|
1,372
|
|
|
866
|
|
|
1,606
|
|
Diluted Average Common Shares
|
332,396
|
|
|
323,918
|
|
|
328,031
|
|
|
323,197
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Number of shares issued
|
10,612,915
|
|
|
—
|
|
|
11,931,376
|
|
|
—
|
|
||||
Average price per share
|
$
|
26.67
|
|
|
$
|
—
|
|
|
$
|
26.58
|
|
|
$
|
—
|
|
Proceeds, net of fees
(in millions)
|
$
|
281.0
|
|
|
$
|
—
|
|
|
$
|
314.7
|
|
|
$
|
—
|
|
(in millions)
|
September 30, 2017
|
|
December 31, 2016
|
||||
Risk Management Assets - Current
(1)
|
|
|
|
||||
Interest rate risk programs
|
$
|
—
|
|
|
$
|
17.0
|
|
Commodity price risk programs
|
0.2
|
|
|
7.4
|
|
||
Total
|
$
|
0.2
|
|
|
$
|
24.4
|
|
Risk Management Assets - Noncurrent
(2)
|
|
|
|
||||
Interest rate risk programs
|
$
|
20.1
|
|
|
$
|
17.1
|
|
Commodity price risk programs
|
0.7
|
|
|
7.5
|
|
||
Total
|
$
|
20.8
|
|
|
$
|
24.6
|
|
Risk Management Liabilities - Current
(3)
|
|
|
|
||||
Interest rate risk programs
|
$
|
36.9
|
|
|
$
|
15.3
|
|
Commodity price risk programs
|
3.3
|
|
|
1.5
|
|
||
Total
|
$
|
40.2
|
|
|
$
|
16.8
|
|
Risk Management Liabilities - Noncurrent
|
|
|
|
||||
Interest rate risk programs
|
$
|
—
|
|
|
$
|
24.5
|
|
Commodity price risk programs
|
28.7
|
|
|
20.0
|
|
||
Total
|
$
|
28.7
|
|
|
$
|
44.5
|
|
Recurring Fair Value Measurements
September 30, 2017 (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 September 30, 2017
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Risk management assets
|
$
|
—
|
|
|
$
|
21.0
|
|
|
$
|
—
|
|
|
$
|
21.0
|
|
Available-for-sale securities
|
—
|
|
|
139.3
|
|
|
—
|
|
|
139.3
|
|
||||
Total
|
$
|
—
|
|
|
$
|
160.3
|
|
|
$
|
—
|
|
|
$
|
160.3
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Risk management liabilities
|
$
|
—
|
|
|
$
|
68.1
|
|
|
$
|
0.8
|
|
|
$
|
68.9
|
|
Total
|
$
|
—
|
|
|
$
|
68.1
|
|
|
$
|
0.8
|
|
|
$
|
68.9
|
|
Recurring Fair Value Measurements
December 31, 2016 (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, 2016
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Risk management assets
|
$
|
5.4
|
|
|
$
|
43.6
|
|
|
$
|
—
|
|
|
$
|
49.0
|
|
Available-for-sale securities
|
—
|
|
|
131.5
|
|
|
—
|
|
|
131.5
|
|
||||
Total
|
$
|
5.4
|
|
|
$
|
175.1
|
|
|
$
|
—
|
|
|
$
|
180.5
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Risk management liabilities
|
$
|
1.2
|
|
|
$
|
58.9
|
|
|
$
|
1.2
|
|
|
$
|
61.3
|
|
Total
|
$
|
1.2
|
|
|
$
|
58.9
|
|
|
$
|
1.2
|
|
|
$
|
61.3
|
|
September 30, 2017
(in millions)
|
Amortized
Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair
Value
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury debt securities
|
$
|
34.3
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
$
|
34.2
|
|
Corporate/Other debt securities
|
104.2
|
|
|
1.3
|
|
|
(0.4
|
)
|
|
105.1
|
|
||||
Total
|
$
|
138.5
|
|
|
$
|
1.3
|
|
|
$
|
(0.5
|
)
|
|
$
|
139.3
|
|
December 31, 2016
(in millions)
|
Amortized
Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair
Value
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury debt securities
|
$
|
35.0
|
|
|
$
|
0.1
|
|
|
$
|
(0.6
|
)
|
|
$
|
34.5
|
|
Corporate/Other debt securities
|
98.7
|
|
|
0.3
|
|
|
(2.0
|
)
|
|
97.0
|
|
||||
Total
|
$
|
133.7
|
|
|
$
|
0.4
|
|
|
$
|
(2.6
|
)
|
|
$
|
131.5
|
|
(in millions)
|
Carrying
Amount as of September 30, 2017 |
|
Estimated Fair
Value as of September 30, 2017 |
|
Carrying
Amount as of
Dec. 31, 2016
|
|
Estimated Fair
Value as of
Dec. 31, 2016
|
||||||||
Long-term debt (including current portion)
|
$
|
7,808.4
|
|
|
$
|
8,550.7
|
|
|
$
|
6,421.3
|
|
|
$
|
7,064.1
|
|
(in millions)
|
September 30, 2017
|
|
December 31, 2016
|
||||
Gross Receivables
|
$
|
371.6
|
|
|
$
|
618.3
|
|
Less: Receivables not transferred
|
109.4
|
|
|
308.3
|
|
||
Net receivables transferred
|
$
|
262.2
|
|
|
$
|
310.0
|
|
Short-term debt due to asset securitization
|
$
|
262.2
|
|
|
$
|
310.0
|
|
(in millions)
|
|
Gas Distribution Operations
|
|
Electric Operations
|
|
Corporate and Other
|
|
Total
|
||||||||
Goodwill
|
|
$
|
1,690.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,690.7
|
|
|
Pension Benefits
|
|
Other Postretirement
Benefits
|
||||||||||||
Three Months Ended September 30,
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Components of Net Periodic Benefit Cost
|
|
|
|
|
|
|
|
||||||||
Service cost
(1)
|
$
|
7.4
|
|
|
$
|
7.7
|
|
|
$
|
1.2
|
|
|
$
|
1.3
|
|
Interest cost
(1)
|
17.1
|
|
|
22.4
|
|
|
4.5
|
|
|
5.5
|
|
||||
Expected return on assets
|
(30.8
|
)
|
|
(33.2
|
)
|
|
(4.0
|
)
|
|
(4.3
|
)
|
||||
Amortization of prior service credit
|
(0.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
|
(1.2
|
)
|
||||
Recognized actuarial loss
|
13.2
|
|
|
15.3
|
|
|
0.7
|
|
|
0.8
|
|
||||
Settlement loss
|
10.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Net Periodic Benefit Cost
|
$
|
17.4
|
|
|
$
|
12.2
|
|
|
$
|
1.3
|
|
|
$
|
2.1
|
|
|
Pension Benefits
|
|
Other Postretirement
Benefits
|
||||||||||||
Nine Months Ended September 30,
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Components of Net Periodic Benefit Cost
|
|
|
|
|
|
|
|
||||||||
Service cost
(1)
|
$
|
22.4
|
|
|
$
|
23.1
|
|
|
$
|
3.6
|
|
|
$
|
3.7
|
|
Interest cost
(1)
|
51.5
|
|
|
67.2
|
|
|
13.4
|
|
|
16.5
|
|
||||
Expected return on assets
|
(91.3
|
)
|
|
(99.6
|
)
|
|
(11.9
|
)
|
|
(12.9
|
)
|
||||
Amortization of prior service credit
|
(0.5
|
)
|
|
(0.2
|
)
|
|
(3.3
|
)
|
|
(3.6
|
)
|
||||
Recognized actuarial loss
|
40.0
|
|
|
45.9
|
|
|
2.2
|
|
|
2.4
|
|
||||
Settlement loss
|
10.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Net Periodic Benefit Cost
|
$
|
32.7
|
|
|
$
|
36.4
|
|
|
$
|
4.0
|
|
|
$
|
6.1
|
|
|
August 31, 2017
|
|
December 31, 2016
|
||
Weighted-average Assumption to Determine Benefit Obligation:
|
|
|
|
||
Discount rate
|
3.50
|
%
|
|
4.03
|
%
|
Weighted-average Assumptions to Determine Net Periodic Benefit Costs for the period ended:
|
|
|
|
||
Discount rate - service cost
(1)
|
4.40
|
%
|
|
4.24
|
%
|
Discount rate - interest cost
(1)
|
3.31
|
%
|
|
4.24
|
%
|
Expected return on assets
|
7.25
|
%
|
|
8.00
|
%
|
(in millions)
|
September 30,
2017 |
|
December 31,
2016 |
||||
Commercial Paper weighted-average interest rate of 1.50% and 1.24% at September 30, 2017 and December 31, 2016, respectively
|
$
|
581.0
|
|
|
$
|
1,178.0
|
|
Accounts receivable securitization facility borrowings
|
262.2
|
|
|
310.0
|
|
||
Total Short-Term Borrowings
|
$
|
843.2
|
|
|
$
|
1,488.0
|
|
Three Months Ended September 30, 2017
(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 July 1, 2017
|
$
|
0.4
|
|
|
$
|
(18.8
|
)
|
|
$
|
(17.2
|
)
|
|
$
|
(35.6
|
)
|
Other comprehensive income (loss) before reclassifications
|
0.1
|
|
|
(9.7
|
)
|
|
—
|
|
|
(9.6
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
0.4
|
|
|
1.1
|
|
|
1.5
|
|
||||
Net current-period other comprehensive income (loss)
|
0.1
|
|
|
(9.3
|
)
|
|
1.1
|
|
|
(8.1
|
)
|
||||
Balance as of September 30, 2017
|
$
|
0.5
|
|
|
$
|
(28.1
|
)
|
|
$
|
(16.1
|
)
|
|
$
|
(43.7
|
)
|
|
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2017
(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, 2017
|
$
|
(0.6
|
)
|
|
$
|
(6.9
|
)
|
|
$
|
(17.6
|
)
|
|
$
|
(25.1
|
)
|
Other comprehensive income (loss) before reclassifications
|
1.1
|
|
|
(23.3
|
)
|
|
0.2
|
|
|
(22.0
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
2.1
|
|
|
1.3
|
|
|
3.4
|
|
||||
Net current-period other comprehensive income (loss)
|
1.1
|
|
|
(21.2
|
)
|
|
1.5
|
|
|
(18.6
|
)
|
||||
Balance as of September 30, 2017
|
$
|
0.5
|
|
|
$
|
(28.1
|
)
|
|
$
|
(16.1
|
)
|
|
$
|
(43.7
|
)
|
Three Months Ended September 30, 2016
(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 July 1, 2016
|
$
|
2.0
|
|
|
$
|
(139.7
|
)
|
|
$
|
(18.6
|
)
|
|
$
|
(156.3
|
)
|
Other comprehensive loss before reclassifications
|
(0.3
|
)
|
|
(22.9
|
)
|
|
—
|
|
|
(23.2
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
0.3
|
|
|
0.2
|
|
|
0.5
|
|
||||
Net current-period other comprehensive income (loss)
|
(0.3
|
)
|
|
(22.6
|
)
|
|
0.2
|
|
|
(22.7
|
)
|
||||
Balance as of September 30, 2016
|
$
|
1.7
|
|
|
$
|
(162.3
|
)
|
|
$
|
(18.4
|
)
|
|
$
|
(179.0
|
)
|
|
|
|
|
|
|
|
|
||||||||
Nine Months Ended September 30, 2016
(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, 2016
|
$
|
(0.5
|
)
|
|
$
|
(15.5
|
)
|
|
$
|
(19.1
|
)
|
|
$
|
(35.1
|
)
|
Other comprehensive income (loss) before reclassifications
|
2.3
|
|
|
(148.0
|
)
|
|
—
|
|
|
(145.7
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
(0.1
|
)
|
|
1.2
|
|
|
0.7
|
|
|
1.8
|
|
||||
Net current-period other comprehensive income (loss)
|
2.2
|
|
|
(146.8
|
)
|
|
0.7
|
|
|
(143.9
|
)
|
||||
Balance as of September 30, 2016
|
$
|
1.7
|
|
|
$
|
(162.3
|
)
|
|
$
|
(18.4
|
)
|
|
$
|
(179.0
|
)
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Gross Revenues
|
|
|
|
|
|
|
|
||||||||
Gas Distribution Operations
|
|
|
|
|
|
|
|
||||||||
Unaffiliated
|
$
|
431.1
|
|
|
$
|
392.4
|
|
|
$
|
2,139.9
|
|
|
$
|
1,935.6
|
|
Intersegment
|
3.5
|
|
|
3.1
|
|
|
10.6
|
|
|
9.6
|
|
||||
Total
|
434.6
|
|
|
395.5
|
|
|
2,150.5
|
|
|
1,945.2
|
|
||||
Electric Operations
|
|
|
|
|
|
|
|
||||||||
Unaffiliated
|
485.8
|
|
|
465.4
|
|
|
1,365.5
|
|
|
1,249.2
|
|
||||
Intersegment
|
0.2
|
|
|
0.4
|
|
|
0.6
|
|
|
0.6
|
|
||||
Total
|
486.0
|
|
|
465.8
|
|
|
1,366.1
|
|
|
1,249.8
|
|
||||
Corporate and Other
|
|
|
|
|
|
|
|
||||||||
Unaffiliated
|
0.1
|
|
|
3.5
|
|
|
0.9
|
|
|
10.7
|
|
||||
Intersegment
|
126.4
|
|
|
100.5
|
|
|
367.7
|
|
|
298.1
|
|
||||
Total
|
126.5
|
|
|
104.0
|
|
|
368.6
|
|
|
308.8
|
|
||||
Eliminations
|
(130.1
|
)
|
|
(104.0
|
)
|
|
(378.9
|
)
|
|
(308.3
|
)
|
||||
Consolidated Gross Revenues
|
$
|
917.0
|
|
|
$
|
861.3
|
|
|
$
|
3,506.3
|
|
|
$
|
3,195.5
|
|
Operating Income (Loss)
|
|
|
|
|
|
|
|
||||||||
Gas Distribution Operations
|
$
|
(23.7
|
)
|
|
$
|
4.3
|
|
|
$
|
362.1
|
|
|
$
|
392.7
|
|
Electric Operations
|
124.4
|
|
|
112.8
|
|
|
286.3
|
|
|
251.5
|
|
||||
Corporate and Other
|
(1.1
|
)
|
|
(3.4
|
)
|
|
(7.8
|
)
|
|
(10.9
|
)
|
||||
Consolidated Operating Income
|
$
|
99.6
|
|
|
$
|
113.7
|
|
|
$
|
640.6
|
|
|
$
|
633.3
|
|
Index
|
Page
|
Executive Summary
|
|
Summary of Consolidated Financial Results
|
|
Results and Discussion of Segment Operations
|
|
Gas Distribution Operations
|
|
Electric Operations
|
|
Off Balance Sheet
Arrangements
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
(in millions, except per share amounts)
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||||||||
Total Net Revenues
|
$
|
683.4
|
|
|
$
|
643.1
|
|
|
$
|
40.3
|
|
|
$
|
2,443.6
|
|
|
$
|
2,245.9
|
|
|
$
|
197.7
|
|
Total Operating Expenses
|
583.8
|
|
|
529.4
|
|
|
54.4
|
|
|
1,803.0
|
|
|
1,612.6
|
|
|
190.4
|
|
||||||
Operating Income
|
99.6
|
|
|
113.7
|
|
|
(14.1
|
)
|
|
640.6
|
|
|
633.3
|
|
|
7.3
|
|
||||||
Total Other Deductions, net
|
(83.1
|
)
|
|
(81.5
|
)
|
|
(1.6
|
)
|
|
(362.5
|
)
|
|
(263.4
|
)
|
|
(99.1
|
)
|
||||||
Income Taxes
|
2.5
|
|
|
8.5
|
|
|
(6.0
|
)
|
|
97.1
|
|
|
130.6
|
|
|
(33.5
|
)
|
||||||
Income from Continuing Operations
|
14.0
|
|
|
23.7
|
|
|
(9.7
|
)
|
|
181.0
|
|
|
239.3
|
|
|
(58.3
|
)
|
||||||
Income (Loss) from Discontinued Operations - net of taxes
|
—
|
|
|
3.5
|
|
|
(3.5
|
)
|
|
(0.1
|
)
|
|
3.4
|
|
|
(3.5
|
)
|
||||||
Net Income
|
14.0
|
|
|
27.2
|
|
|
(13.2
|
)
|
|
180.9
|
|
|
242.7
|
|
|
(61.8
|
)
|
||||||
Basic Earnings Per Share from Continuing Operations
|
$
|
0.04
|
|
|
$
|
0.07
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.55
|
|
|
$
|
0.74
|
|
|
$
|
(0.19
|
)
|
Basic Average Common Shares Outstanding
|
331.1
|
|
|
322.3
|
|
|
8.8
|
|
|
326.7
|
|
|
321.4
|
|
|
5.3
|
|
•
|
NIPSCO filed a gas base rate case with the IURC on September 27, 2017. The request, which seeks NIPSCO's first natural gas base rate increase in more than 25 years, supports continued investment in system upgrades, technology improvements and other measures to increase pipeline safety and system reliability. If approved as filed, the fully implemented request would increase annual revenues by $143.5 million, inclusive of amounts being recovered through various tracker programs. An order is expected in the second half of 2018.
|
•
|
Columbia of Ohio filed a settlement agreement in its pending application for a five year extension of its IRP on August 18, 2017. This well-established pipeline replacement program, which is currently authorized through December 31, 2017,
|
•
|
New rates went into effect on October 27, 2017 following approval of Columbia of Maryland's base rate case settlement by the MPSC. The settlement supports continued accelerated replacement of aging pipe as well as adoption of additional pipeline safety upgrades and increases annual revenue by
$2.4 million
.
|
•
|
NIPSCO continues to execute on its seven-year, $850 million gas infrastructure modernization program to further improve system reliability and safety. New rates under NIPSCO's semi-annual tracker update took effect July 1, 2017. The latest update, covering $328.9 million of cumulative net capital spend through June 30, 2017, was filed on August 31, 2017. An order is expected in the fourth quarter of 2017.
|
•
|
On October 31, 2017, Columbia of Massachusetts filed its GSEP for the 2018 construction year. Columbia of Massachusetts is proposing to recover a cumulative revenue requirement of $
26.8 million
including a waiver to collect the $3.1 million revenue requirement in excess of the GSEP cap provision. If the waiver is not approved, the cumulative revenue requirement will be $
23.7 million
. An order is expected from the Massachusetts DPU in the second quarter of 2018, with new rates effective May 1, 2018.
|
•
|
NIPSCO continues to execute on its seven-year electric infrastructure modernization program, which includes enhancements to its electric transmission and distribution system designed to further improve system safety and reliability. The IURC-approved program represents approximately
$1.25 billion
of electric infrastructure investments expected to be made through 2022. On June 30, 2017, NIPSCO filed its latest tracker update request, covering $177.3 million in cumulative net capital expenditures through April 30, 2017. An order approving the request was received from the IURC on October 31, 2017.
|
•
|
NIPSCO's request, filed in November 2016, to invest in environmental upgrades at its Michigan City Unit 12 and R.M. Schahfer Units 14 and 15 generating facilities remains pending before the IURC. On June 9, 2017, NIPSCO, along with the Indiana OUCC, the Citizens Action Coalition and a group of NIPSCO industrial customers, submitted a settlement agreement seeking, among other things, approval and cost recovery for the CCR projects and moving ELG-related investments to a later proceeding. An IURC order is expected before the end of 2017.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||||||||
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales revenues
|
$
|
434.6
|
|
|
$
|
395.5
|
|
|
$
|
39.1
|
|
|
$
|
2,150.5
|
|
|
$
|
1,945.2
|
|
|
$
|
205.3
|
|
Less: Cost of gas sold (excluding depreciation and amortization)
|
94.6
|
|
|
76.1
|
|
|
18.5
|
|
|
662.0
|
|
|
569.6
|
|
|
92.4
|
|
||||||
Net Revenues
|
340.0
|
|
|
319.4
|
|
|
20.6
|
|
|
1,488.5
|
|
|
1,375.6
|
|
|
112.9
|
|
||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operation and maintenance
|
257.9
|
|
|
213.4
|
|
|
44.5
|
|
|
792.3
|
|
|
668.3
|
|
|
124.0
|
|
||||||
Depreciation and amortization
|
67.9
|
|
|
64.3
|
|
|
3.6
|
|
|
199.5
|
|
|
188.8
|
|
|
10.7
|
|
||||||
Other taxes
|
37.9
|
|
|
37.4
|
|
|
0.5
|
|
|
134.6
|
|
|
125.8
|
|
|
8.8
|
|
||||||
Total Operating Expenses
|
363.7
|
|
|
315.1
|
|
|
48.6
|
|
|
1,126.4
|
|
|
982.9
|
|
|
143.5
|
|
||||||
Operating Income (Loss)
|
$
|
(23.7
|
)
|
|
$
|
4.3
|
|
|
$
|
(28.0
|
)
|
|
$
|
362.1
|
|
|
$
|
392.7
|
|
|
$
|
(30.6
|
)
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
$
|
264.2
|
|
|
$
|
247.7
|
|
|
$
|
16.5
|
|
|
$
|
1,404.4
|
|
|
$
|
1,254.9
|
|
|
$
|
149.5
|
|
Commercial
|
80.9
|
|
|
71.6
|
|
|
9.3
|
|
|
456.0
|
|
|
402.7
|
|
|
53.3
|
|
||||||
Industrial
|
39.7
|
|
|
36.4
|
|
|
3.3
|
|
|
156.5
|
|
|
139.9
|
|
|
16.6
|
|
||||||
Off-System
|
30.4
|
|
|
19.9
|
|
|
10.5
|
|
|
97.1
|
|
|
59.4
|
|
|
37.7
|
|
||||||
Other
|
19.4
|
|
|
19.9
|
|
|
(0.5
|
)
|
|
36.5
|
|
|
88.3
|
|
|
(51.8
|
)
|
||||||
Total
|
$
|
434.6
|
|
|
$
|
395.5
|
|
|
$
|
39.1
|
|
|
$
|
2,150.5
|
|
|
$
|
1,945.2
|
|
|
$
|
205.3
|
|
Sales and Transportation (MMDth)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
14.5
|
|
|
13.7
|
|
|
0.8
|
|
|
157.2
|
|
|
169.5
|
|
|
(12.3
|
)
|
||||||
Commercial
|
17.3
|
|
|
16.3
|
|
|
1.0
|
|
|
111.3
|
|
|
114.7
|
|
|
(3.4
|
)
|
||||||
Industrial
|
125.9
|
|
|
130.4
|
|
|
(4.5
|
)
|
|
380.3
|
|
|
393.7
|
|
|
(13.4
|
)
|
||||||
Off-System
|
11.1
|
|
|
7.4
|
|
|
3.7
|
|
|
33.8
|
|
|
27.3
|
|
|
6.5
|
|
||||||
Other
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
||||||
Total
|
169.1
|
|
|
167.8
|
|
|
1.3
|
|
|
682.8
|
|
|
705.2
|
|
|
(22.4
|
)
|
||||||
Heating Degree Days
|
75
|
|
|
33
|
|
|
42
|
|
|
2,911
|
|
|
3,297
|
|
|
(386
|
)
|
||||||
Normal Heating Degree Days
|
85
|
|
|
85
|
|
|
—
|
|
|
3,576
|
|
|
3,608
|
|
|
(32
|
)
|
||||||
% Warmer than Normal
|
(12
|
)%
|
|
(61
|
)%
|
|
|
|
|
(19
|
)%
|
|
(9
|
)%
|
|
|
|||||||
Gas Distribution Customers
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
|
|
|
|
|
|
3,114,223
|
|
|
3,088,525
|
|
|
25,698
|
|
|||||||||
Commercial
|
|
|
|
|
|
|
275,424
|
|
|
274,276
|
|
|
1,148
|
|
|||||||||
Industrial
|
|
|
|
|
|
|
6,163
|
|
|
6,408
|
|
|
(245
|
)
|
|||||||||
Other
|
|
|
|
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||||||
Total
|
|
|
|
|
|
|
3,395,813
|
|
|
3,369,209
|
|
|
26,604
|
|
•
|
New rates from base-rate proceedings and infrastructure replacement programs of $16.0 million.
|
•
|
Higher revenues from increased industrial, commercial and residential customer usage of $2.9 million.
|
•
|
The effects of increased residential customer growth of $1.3 million.
|
•
|
Increased employee and administrative expenses of $25.4 million which includes the impact of a pension settlement charge recorded in 2017 along with a charge related to Columbia of Pennsylvania's portion of a 2017 pension contribution which, per regulatory order, is expensed on a cash basis.
|
•
|
Higher outside service costs of $14.4 million due to increased line locating expenses and IT service provider transition costs.
|
•
|
Increased depreciation of $3.6 million due to higher capital expenditures placed in service.
|
•
|
New rates from base-rate proceedings and infrastructure replacement programs of $97.1 million.
|
•
|
Higher regulatory, tax and depreciation trackers, which are offset in expense, of $24.7 million.
|
•
|
The effects of increased residential customer growth of $5.7 million.
|
•
|
The effects of warmer weather of $14.6 million.
|
•
|
Increased employee and administrative expenses of $51.3 million which includes the impact of the aforementioned pension settlement charge and pension contribution.
|
•
|
Higher outside service costs of $32.9 million due to IT service provider transition costs and increased line locating expenses.
|
•
|
Higher regulatory, tax and depreciation trackers, which are offset in net revenues, of $24.7 million.
|
•
|
Increased depreciation of $9.7 million due to higher capital expenditures placed in service.
|
•
|
Increased property taxes of $6.9 million due to higher capital expenditures placed in service and an accrual adjustment recorded in 2016.
|
•
|
Higher environmental costs of $4.9 million.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
(in millions)
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||||||||
Net Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales revenues
|
$
|
486.0
|
|
|
$
|
465.8
|
|
|
$
|
20.2
|
|
|
$
|
1,366.1
|
|
|
$
|
1,249.8
|
|
|
$
|
116.3
|
|
Less: Cost of sales (excluding depreciation and amortization)
|
139.0
|
|
|
142.0
|
|
|
(3.0
|
)
|
|
400.9
|
|
|
380.0
|
|
|
20.9
|
|
||||||
Net Revenues
|
347.0
|
|
|
323.8
|
|
|
23.2
|
|
|
965.2
|
|
|
869.8
|
|
|
95.4
|
|
||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operation and maintenance
|
136.7
|
|
|
127.6
|
|
|
9.1
|
|
|
422.1
|
|
|
372.1
|
|
|
50.0
|
|
||||||
Depreciation and amortization
|
69.8
|
|
|
66.9
|
|
|
2.9
|
|
|
212.0
|
|
|
202.8
|
|
|
9.2
|
|
||||||
Other taxes
|
16.1
|
|
|
16.5
|
|
|
(0.4
|
)
|
|
44.8
|
|
|
43.4
|
|
|
1.4
|
|
||||||
Total Operating Expenses
|
222.6
|
|
|
211.0
|
|
|
11.6
|
|
|
678.9
|
|
|
618.3
|
|
|
60.6
|
|
||||||
Operating Income
|
$
|
124.4
|
|
|
$
|
112.8
|
|
|
$
|
11.6
|
|
|
$
|
286.3
|
|
|
$
|
251.5
|
|
|
$
|
34.8
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential
|
$
|
138.0
|
|
|
$
|
145.1
|
|
|
$
|
(7.1
|
)
|
|
$
|
363.7
|
|
|
$
|
346.1
|
|
|
$
|
17.6
|
|
Commercial
|
134.6
|
|
|
127.1
|
|
|
7.5
|
|
|
379.0
|
|
|
336.2
|
|
|
42.8
|
|
||||||
Industrial
|
171.5
|
|
|
155.8
|
|
|
15.7
|
|
|
531.4
|
|
|
469.4
|
|
|
62.0
|
|
||||||
Wholesale
|
3.7
|
|
|
3.7
|
|
|
—
|
|
|
9.0
|
|
|
8.8
|
|
|
0.2
|
|
||||||
Other
|
38.2
|
|
|
34.1
|
|
|
4.1
|
|
|
83.0
|
|
|
89.3
|
|
|
(6.3
|
)
|
||||||
Total
|
$
|
486.0
|
|
|
$
|
465.8
|
|
|
$
|
20.2
|
|
|
$
|
1,366.1
|
|
|
$
|
1,249.8
|
|
|
$
|
116.3
|
|
Sales (Gigawatt Hours)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Residential
|
1,002.3
|
|
|
1,147.5
|
|
|
(145.2
|
)
|
|
2,523.9
|
|
|
2,744.9
|
|
|
(221.0
|
)
|
||||||
Commercial
|
1,042.7
|
|
|
1,102.8
|
|
|
(60.1
|
)
|
|
2,868.1
|
|
|
2,954.8
|
|
|
(86.7
|
)
|
||||||
Industrial
|
2,390.9
|
|
|
2,356.3
|
|
|
34.6
|
|
|
7,192.7
|
|
|
7,072.2
|
|
|
120.5
|
|
||||||
Wholesale
|
6.1
|
|
|
2.3
|
|
|
3.8
|
|
|
28.0
|
|
|
3.6
|
|
|
24.4
|
|
||||||
Other
|
31.2
|
|
|
39.7
|
|
|
(8.5
|
)
|
|
96.3
|
|
|
104.8
|
|
|
(8.5
|
)
|
||||||
Total
|
4,473.2
|
|
|
4,648.6
|
|
|
(175.4
|
)
|
|
12,709.0
|
|
|
12,880.3
|
|
|
(171.3
|
)
|
||||||
Cooling Degree Days
|
540
|
|
|
681
|
|
|
(141
|
)
|
|
765
|
|
|
966
|
|
|
(201
|
)
|
||||||
Normal Cooling Degree Days
|
570
|
|
|
570
|
|
|
|
|
|
745
|
|
|
799
|
|
|
|
|
||||||
% Warmer (Colder) than Normal
|
(5
|
)%
|
|
19
|
%
|
|
|
|
|
3
|
%
|
|
21
|
%
|
|
|
|
||||||
Electric Customers
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
|
|
|
|
|
|
407,998
|
|
|
405,895
|
|
|
2,103
|
|
|||||||||
Commercial
|
|
|
|
|
|
|
55,912
|
|
|
55,418
|
|
|
494
|
|
|||||||||
Industrial
|
|
|
|
|
|
|
2,311
|
|
|
2,341
|
|
|
(30
|
)
|
|||||||||
Wholesale
|
|
|
|
|
|
|
740
|
|
|
742
|
|
|
(2
|
)
|
|||||||||
Other
|
|
|
|
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|||||||||
Total
|
|
|
|
|
|
|
466,963
|
|
|
464,398
|
|
|
2,565
|
|
•
|
New rates from base-rate proceedings of $22.4 million.
|
•
|
Increased rates from incremental capital spend on electric transmission projects of $7.4 million.
|
•
|
Higher regulatory and depreciation trackers, which are offset in expense, of $5.4 million.
|
•
|
Higher regulatory and depreciation trackers, which are offset in net revenues, of $5.4 million.
|
•
|
Increased employee and administrative expenses of $4.0 million.
|
•
|
New rates from base-rate proceedings of $64.5 million.
|
•
|
Higher regulatory and depreciation trackers, which are offset in expense, of $25.8 million.
|
•
|
Increased rates from incremental capital spend on electric transmission projects of $18.2 million.
|
•
|
The effects of cooler weather of $17.3 million.
|
•
|
Higher regulatory and depreciation trackers, which are offset in net revenues, of $25.8 million.
|
•
|
Increased outside service costs of $13.9 million, primarily due to vegetation management activities and generation-related maintenance.
|
•
|
Higher employee and administrative expenses of $8.3 million.
|
•
|
Increased materials and supplies expenses of $8.0 million driven by generation-related maintenance and increased chemical usage.
|
•
|
Higher gross receipts taxes of $5.0 million driven by higher revenues.
|
•
|
Decreased amortization expense of $10.8 million.
|
(in millions)
|
September 30, 2017
|
December 31, 2016
|
||||
Current Liquidity
|
|
|
||||
Revolving Credit Facility
|
$
|
1,850.0
|
|
$
|
1,850.0
|
|
Accounts Receivable Program
(1)
|
262.2
|
|
310.0
|
|
||
Less:
|
|
|
||||
Drawn on Revolving Credit Facility
|
—
|
|
—
|
|
||
Commercial Paper
|
581.0
|
|
1,178.0
|
|
||
Accounts Receivable Program Utilized
|
262.2
|
|
310.0
|
|
||
Letters of Credit Outstanding Under Credit Facility
|
13.0
|
|
14.7
|
|
||
Add:
|
|
|
||||
Cash and Cash Equivalents
|
19.3
|
|
26.4
|
|
||
Net Available Liquidity
|
$
|
1,275.3
|
|
$
|
683.7
|
|
(4.1)
|
|
|
|
(4.2)
|
|
|
|
(4.3)
|
|
|
|
(12)
|
|
|
|
(31.1)
|
|
|
|
(31.2)
|
|
|
|
(32.1)
|
|
|
|
(32.2)
|
|
|
|
(101.INS)
|
XBRL Instance Document
|
|
|
(101.SCH)
|
XBRL Schema Document
|
|
|
(101.CAL)
|
XBRL Calculation Linkbase Document
|
|
|
(101.LAB)
|
XBRL Labels Linkbase Document
|
|
|
(101.PRE)
|
XBRL Presentation Linkbase Document
|
|
|
(101.DEF)
|
XBRL Definition Linkbase Document
|
|
|
*
|
Exhibit filed herewith.
|
|
|
|
NiSource Inc.
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
Date:
|
November 1, 2017
|
By:
|
/s/ Joseph W. Mulpas
|
|
|
|
|
Joseph W. Mulpas
|
|
|
|
|
Vice President and Chief Accounting Officer
(Principal Accounting Officer
and Duly Authorized Officer)
|
|
September 30, 2017
|
December 31, 2016
|
December 31, 2015
|
December 31, 2014
|
December 31, 2013
|
December 31, 2012
|
||||||||||||
Earnings as defined in item 503(d) of Regulation S-K:
|
|
|
|
|
|
|
||||||||||||
Add:
|
|
|
|
|
|
|
||||||||||||
Pretax income from continuing operations (a)(b)
|
$
|
278,012,014
|
|
$
|
510,208,667
|
|
$
|
340,406,027
|
|
$
|
423,910,493
|
|
$
|
330,158,304
|
|
$
|
253,968,177
|
|
Fixed Charges
|
304,685,825
|
|
407,450,678
|
|
422,886,197
|
|
421,483,105
|
|
410,081,138
|
|
415,593,947
|
|
||||||
Amortization of capitalized interest (c)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Distributed income of equity investees
|
1,095,420
|
|
224,702
|
|
151,119
|
|
110,964
|
|
118,416
|
|
—
|
|
||||||
Share of pre-tax losses of equity investees for which charges arising guarantees are included in fixed charges
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Deduct:
|
|
|
|
|
|
|
||||||||||||
Interest capitalized (c)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Preference security dividend requirements of consolidated subsidiaries(d)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Non-Controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
|
$
|
583,793,259
|
|
$
|
917,884,047
|
|
$
|
763,443,343
|
|
$
|
845,504,562
|
|
$
|
740,357,858
|
|
$
|
669,562,124
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges as defined in item 503(d) of Regulation S-K:
|
|
|
|
|
|
|
||||||||||||
Interest on long-term debt
|
$
|
261,985,138
|
|
$
|
352,265,520
|
|
$
|
377,469,202
|
|
$
|
368,614,101
|
|
$
|
364,427,942
|
|
$
|
366,907,783
|
|
Other interest
|
25,782,061
|
|
30,244,516
|
|
20,897,004
|
|
22,963,342
|
|
20,521,761
|
|
24,790,198
|
|
||||||
Capitalized interest during period (c)
|
|
|
|
|
|
|
||||||||||||
Amortization of premium, reacquisition premium, discount and expense on debt, net
|
5,309,002
|
|
7,618,345
|
|
8,701,321
|
|
9,967,085
|
|
9,395,881
|
|
9,699,157
|
|
||||||
Interest portion of rent expense
|
11,609,624
|
|
17,322,297
|
|
15,818,670
|
|
19,938,578
|
|
15,735,555
|
|
14,196,608
|
|
||||||
Non-controlling interest
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
|
$
|
304,685,825
|
|
$
|
407,450,678
|
|
$
|
422,886,197
|
|
$
|
421,483,106
|
|
$
|
410,081,139
|
|
$
|
415,593,746
|
|
|
|
|
|
|
|
|
||||||||||||
Plus preferred stock dividends: Preferred dividend requirements of subsidiary
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Preferred dividend requirements factor
|
0.65
|
|
0.64
|
|
0.58
|
|
0.61
|
|
0.67
|
|
0.67
|
|
||||||
Preference security dividend requirements of consolidated subsidiaries (d)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Fixed charges
|
304,685,825
|
|
407,450,678
|
|
422,886,197
|
|
421,483,106
|
|
410,081,139
|
|
415,593,746
|
|
||||||
|
$
|
304,685,825
|
|
$
|
407,450,678
|
|
$
|
422,886,197
|
|
$
|
421,483,106
|
|
$
|
410,081,139
|
|
$
|
415,593,746
|
|
|
|
|
|
|
|
|
||||||||||||
Ratio of earnings to fixed charges
|
1.92
|
|
2.25
|
|
1.81
|
|
2.01
|
|
1.81
|
|
1.61
|
|
1.
|
I have reviewed this Quarterly Report of NiSource Inc. on Form 10-Q for the quarter ended
September 30, 2017
;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 1, 2017
|
By:
|
|
/s/ Joseph Hamrock
|
|
|
|
|
|
Joseph Hamrock
|
|
|
|
|
|
President and Chief Executive Officer
|
|
1.
|
I have reviewed this Quarterly Report of NiSource Inc. on Form 10-Q for the quarter ended
September 30, 2017
;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 1, 2017
|
By:
|
|
/s/ Donald E. Brown
|
|
|
|
|
|
Donald E. Brown
|
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
/s/ Joseph Hamrock
|
|
|
|
|
Joseph Hamrock
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
Date:
|
|
November 1, 2017
|
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
/s/ Donald E. Brown
|
|
|
|
|
Donald E. Brown
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
|
Date:
|
|
November 1, 2017
|
|