Delaware
|
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35-2108964
|
(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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||
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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
|
|
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 LLC
|
NiSource ("we," "us" or “our”)
|
NiSource Inc.
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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
|
CAA
|
Clean Air Act
|
CCRs
|
Coal Combustion Residuals
|
CEP
|
Capital Expenditure Program
|
CERCLA
|
Comprehensive Environmental Response Compensation and Liability Act (also known as Superfund)
|
CO
2
|
Carbon Dioxide
|
CPP
|
Clean Power Plan
|
DPU
|
Department of Public Utilities
|
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
|
FERC
|
Federal Energy Regulatory Commission
|
GAAP
|
Generally Accepted Accounting Principles
|
GCA
|
Gas cost adjustment
|
GCR
|
Gas cost recovery
|
GHG
|
Greenhouse gases
|
GSEP
|
Gas System Enhancement Program
|
gwh
|
Gigawatt hours
|
IRP
|
Infrastructure Replacement Program
|
IURC
|
Indiana Utility Regulatory Commission
|
LDCs
|
Local distribution companies
|
LIBOR
|
London InterBank Offered Rate
|
LIFO
|
Last In, First Out
|
MGP
|
Manufactured Gas Plant
|
MISO
|
Midcontinent Independent System Operator
|
DEFINED TERMS
|
|
MMDth
|
Million dekatherms
|
NOL
|
Net operating loss
|
NYMEX
|
New York Mercantile Exchange
|
OPEB
|
Other Postretirement Benefits
|
OUCC
|
Office of Utility Consumer Counselor
|
ppb
|
Parts per billion
|
PSC
|
Public Service Commission
|
PUC
|
Public Utilities Commission
|
PUCO
|
Public Utilities Commission of Ohio
|
Pure Air
|
Pure Air on the Lake LP
|
RCRA
|
Resource Conservation and Recovery Act
|
SEC
|
Securities and Exchange Commission
|
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 Entities
|
VSCC
|
Virginia State Corporation Commission
|
WCE
|
Whiting Clean Energy
|
Index
|
Page
|
|
Three Months Ended
March 31, |
||||||
(in millions, except per share amounts)
|
2018
|
|
2017
|
||||
Operating Revenues
|
|
|
|||||
Customer revenues
|
$
|
1,717.2
|
|
|
$
|
1,542.5
|
|
Other revenues
|
33.6
|
|
|
56.1
|
|
||
Total Operating Revenues
|
1,750.8
|
|
|
1,598.6
|
|
||
Operating Expenses
|
|
|
|
||||
Cost of sales (excluding depreciation and amortization)
|
724.4
|
|
|
552.3
|
|
||
Operation and maintenance
|
402.5
|
|
|
411.6
|
|
||
Depreciation and amortization
|
144.7
|
|
|
143.3
|
|
||
Gain on sale of assets
|
(0.3
|
)
|
|
—
|
|
||
Other taxes
|
78.9
|
|
|
76.0
|
|
||
Total Operating Expenses
|
1,350.2
|
|
|
1,183.2
|
|
||
Operating Income
|
400.6
|
|
|
415.4
|
|
||
Other Income (Deductions)
|
|
|
|
||||
Interest expense, net
|
(93.1
|
)
|
|
(85.2
|
)
|
||
Other, net
|
31.3
|
|
|
2.3
|
|
||
Total Other Deductions
|
(61.8
|
)
|
|
(82.9
|
)
|
||
Income before Income Taxes
|
338.8
|
|
|
332.5
|
|
||
Income Taxes
|
62.7
|
|
|
121.2
|
|
||
Net Income
|
276.1
|
|
|
211.3
|
|
||
Earnings Per Share
|
|
|
|
||||
Basic earnings per share
|
$
|
0.82
|
|
|
$
|
0.65
|
|
Diluted earnings per share
|
$
|
0.81
|
|
|
$
|
0.65
|
|
Dividends Declared Per Common Share
|
$
|
0.39
|
|
|
$
|
0.35
|
|
Basic Average Common Shares Outstanding
|
338.0
|
|
|
323.7
|
|
||
Diluted Average Common Shares
|
339.0
|
|
|
325.3
|
|
|
Three Months Ended
March 31, |
||||||
(in millions, net of taxes)
|
2018
|
|
2017
|
||||
Net Income
|
$
|
276.1
|
|
|
$
|
211.3
|
|
Other comprehensive income:
|
|
|
|
||||
Net unrealized gain (loss) on available-for-sale securities
(1)
|
(1.7
|
)
|
|
0.4
|
|
||
Net unrealized gain on cash flow hedges
(2)
|
35.4
|
|
|
4.9
|
|
||
Unrecognized pension and OPEB benefit
(3)
|
0.2
|
|
|
0.2
|
|
||
Total other comprehensive income
|
33.9
|
|
|
5.5
|
|
||
Comprehensive Income
|
$
|
310.0
|
|
|
$
|
216.8
|
|
NiSource Inc.
Condensed Consolidated Balance Sheets (unaudited)
|
|||||||
(in millions)
|
March 31,
2018 |
|
December 31,
2017 |
||||
ASSETS
|
|
|
|
||||
Property, Plant and Equipment
|
|
|
|
||||
Utility plant
|
$
|
21,374.0
|
|
|
$
|
21,026.6
|
|
Accumulated depreciation and amortization
|
(7,048.1
|
)
|
|
(6,953.6
|
)
|
||
Net utility plant
|
14,325.9
|
|
|
14,073.0
|
|
||
Other property, at cost, less accumulated depreciation
|
130.7
|
|
|
286.5
|
|
||
Net Property, Plant and Equipment
|
14,456.6
|
|
|
14,359.5
|
|
||
Investments and Other Assets
|
|
|
|
||||
Unconsolidated affiliates
|
5.0
|
|
|
5.5
|
|
||
Other investments
|
201.3
|
|
|
204.1
|
|
||
Total Investments and Other Assets
|
206.3
|
|
|
209.6
|
|
||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
35.0
|
|
|
29.0
|
|
||
Restricted cash
|
9.7
|
|
|
9.4
|
|
||
Accounts receivable (less reserve of $28.0 and $18.3, respectively)
|
973.8
|
|
|
898.9
|
|
||
Gas inventory
|
71.9
|
|
|
285.1
|
|
||
Materials and supplies, at average cost
|
104.3
|
|
|
105.9
|
|
||
Electric production fuel, at average cost
|
69.1
|
|
|
80.1
|
|
||
Exchange gas receivable
|
53.6
|
|
|
45.8
|
|
||
Regulatory assets
|
160.9
|
|
|
176.3
|
|
||
Prepayments and other
|
155.5
|
|
|
132.8
|
|
||
Total Current Assets
|
1,633.8
|
|
|
1,763.3
|
|
||
Other Assets
|
|
|
|
||||
Regulatory assets
|
1,784.2
|
|
|
1,624.9
|
|
||
Goodwill
|
1,690.7
|
|
|
1,690.7
|
|
||
Intangible assets
|
228.9
|
|
|
231.7
|
|
||
Deferred charges and other
|
98.0
|
|
|
82.0
|
|
||
Total Other Assets
|
3,801.8
|
|
|
3,629.3
|
|
||
Total Assets
|
$
|
20,098.5
|
|
|
$
|
19,961.7
|
|
NiSource Inc.
Condensed Consolidated Balance Sheets (unaudited) (continued)
|
|||||||
(in millions, except share amounts)
|
March 31,
2018 |
|
December 31,
2017 |
||||
CAPITALIZATION AND LIABILITIES
|
|
|
|
||||
Capitalization
|
|
|
|
||||
Common Stockholders’ Equity
|
|
|
|
||||
Common stock - $0.01 par value, 400,000,000 shares authorized; 337,598,033 and 337,015,806 shares outstanding, respectively
|
$
|
3.4
|
|
|
$
|
3.4
|
|
Treasury stock
|
(99.5
|
)
|
|
(95.9
|
)
|
||
Additional paid-in capital
|
5,540.5
|
|
|
5,529.1
|
|
||
Retained deficit
|
(919.2
|
)
|
|
(1,073.1
|
)
|
||
Accumulated other comprehensive loss
|
(19.0
|
)
|
|
(43.4
|
)
|
||
Total Common Stockholders’ Equity
|
4,506.2
|
|
|
4,320.1
|
|
||
Long-term debt, excluding amounts due within one year
|
7,286.8
|
|
|
7,512.2
|
|
||
Total Capitalization
|
11,793.0
|
|
|
11,832.3
|
|
||
Current Liabilities
|
|
|
|
||||
Current portion of long-term debt
|
262.7
|
|
|
284.3
|
|
||
Short-term borrowings
|
1,567.3
|
|
|
1,205.7
|
|
||
Accounts payable
|
497.3
|
|
|
625.6
|
|
||
Dividends payable
|
65.8
|
|
|
—
|
|
||
Customer deposits and credits
|
154.7
|
|
|
262.6
|
|
||
Taxes accrued
|
212.8
|
|
|
208.1
|
|
||
Interest accrued
|
93.9
|
|
|
112.3
|
|
||
Risk management liabilities
|
4.6
|
|
|
43.2
|
|
||
Exchange gas payable
|
11.5
|
|
|
59.6
|
|
||
Regulatory liabilities
|
97.3
|
|
|
58.7
|
|
||
Legal and environmental
|
33.6
|
|
|
32.1
|
|
||
Accrued compensation and employee benefits
|
115.2
|
|
|
195.4
|
|
||
Other accruals
|
109.5
|
|
|
90.8
|
|
||
Total Current Liabilities
|
3,226.2
|
|
|
3,178.4
|
|
||
Other Liabilities
|
|
|
|
||||
Risk management liabilities
|
32.8
|
|
|
28.5
|
|
||
Deferred income taxes
|
1,384.8
|
|
|
1,292.9
|
|
||
Deferred investment tax credits
|
12.1
|
|
|
12.4
|
|
||
Accrued insurance liabilities
|
83.9
|
|
|
80.1
|
|
||
Accrued liability for postretirement and postemployment benefits
|
323.4
|
|
|
337.1
|
|
||
Regulatory liabilities
|
2,780.7
|
|
|
2,736.9
|
|
||
Asset retirement obligations
|
269.9
|
|
|
268.7
|
|
||
Other noncurrent liabilities
|
191.7
|
|
|
194.4
|
|
||
Total Other Liabilities
|
5,079.3
|
|
|
4,951.0
|
|
||
Commitments and Contingencies (Refer to Note 16, "Other Commitments and Contingencies")
|
—
|
|
|
—
|
|
||
Total Capitalization and Liabilities
|
$
|
20,098.5
|
|
|
$
|
19,961.7
|
|
NiSource Inc.
Condensed Statements of Consolidated Cash Flows (unaudited)
|
|||||||
Three Months Ended March 31,
(in millions)
|
2018
|
|
2017
|
||||
Operating Activities
|
|
|
|
||||
Net Income
|
$
|
276.1
|
|
|
$
|
211.3
|
|
Adjustments to Reconcile Net Income to Net Cash from Operating Activities:
|
|
|
|
||||
Depreciation and amortization
|
144.7
|
|
|
143.3
|
|
||
Deferred income taxes and investment tax credits
|
56.8
|
|
|
109.4
|
|
||
Other adjustments
|
(15.6
|
)
|
|
11.0
|
|
||
Changes in Assets and Liabilities:
|
|
|
|
||||
Components of working capital
|
(178.4
|
)
|
|
(117.5
|
)
|
||
Regulatory assets/liabilities
|
117.1
|
|
|
69.3
|
|
||
Deferred charges and other noncurrent assets
|
1.9
|
|
|
(1.2
|
)
|
||
Other noncurrent liabilities
|
(14.4
|
)
|
|
(14.5
|
)
|
||
Net Cash Flows from Operating Activities
|
388.2
|
|
|
411.1
|
|
||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(370.0
|
)
|
|
(312.0
|
)
|
||
Cost of removal
|
(19.0
|
)
|
|
(31.4
|
)
|
||
Other investing activities
|
(9.9
|
)
|
|
0.4
|
|
||
Net Cash Flows used for Investing Activities
|
(398.9
|
)
|
|
(343.0
|
)
|
||
Financing Activities
|
|
|
|
||||
Repayments of long-term debt and capital lease obligations
|
(279.0
|
)
|
|
(36.6
|
)
|
||
Change in short-term borrowings, net
|
361.6
|
|
|
26.2
|
|
||
Issuance of common stock
|
3.7
|
|
|
6.4
|
|
||
Acquisition of treasury stock
|
(3.6
|
)
|
|
(4.4
|
)
|
||
Dividends paid - common stock
|
(65.7
|
)
|
|
(56.5
|
)
|
||
Net Cash Flows from Financing Activities
|
17.0
|
|
|
(64.9
|
)
|
||
Change in cash, cash equivalents and restricted cash
|
6.3
|
|
|
3.2
|
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
38.4
|
|
|
36.0
|
|
||
Cash, Cash Equivalents and Restricted Cash at End of Period
|
$
|
44.7
|
|
|
$
|
39.2
|
|
Three Months Ended March 31,
(in millions)
|
2018
|
|
2017
|
||||
Non-cash transactions:
|
|
|
|
||||
Capital expenditures included in current liabilities
|
$
|
145.4
|
|
|
$
|
133.9
|
|
Dividends declared but not paid
|
65.8
|
|
|
56.7
|
|
||
Reclassification of other property to regulatory assets
(1)
|
$
|
142.3
|
|
|
$
|
—
|
|
(in millions)
|
Common
Stock
|
|
Treasury
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
|
||||||||||||
Balance as of January 1, 2018
|
$
|
3.4
|
|
|
$
|
(95.9
|
)
|
|
$
|
5,529.1
|
|
|
$
|
(1,073.1
|
)
|
|
$
|
(43.4
|
)
|
|
$
|
4,320.1
|
|
Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
276.1
|
|
|
—
|
|
|
276.1
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33.9
|
|
|
33.9
|
|
||||||
Common stock dividends ($0.39 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(131.7
|
)
|
|
—
|
|
|
(131.7
|
)
|
||||||
Treasury stock acquired
|
—
|
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
||||||
Cumulative effect of change in accounting principle
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
|
(9.5
|
)
|
|
—
|
|
||||||
Stock issuances:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Employee stock purchase plan
|
—
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
|
1.2
|
|
||||||
Long-term incentive plan
|
—
|
|
|
—
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
||||||
401(k) and profit sharing
|
—
|
|
|
—
|
|
|
6.2
|
|
|
—
|
|
|
—
|
|
|
6.2
|
|
||||||
Balance as of March 31, 2018
|
$
|
3.4
|
|
|
$
|
(99.5
|
)
|
|
$
|
5,540.5
|
|
|
$
|
(919.2
|
)
|
|
$
|
(19.0
|
)
|
|
$
|
4,506.2
|
|
Shares
(in thousands)
|
Common Shares
|
|
Treasury Shares
|
|
Outstanding Shares
|
|||
Balance as of January 1, 2018
|
340,813
|
|
|
(3,797
|
)
|
|
337,016
|
|
Treasury Stock acquired
|
|
|
(149
|
)
|
|
(149
|
)
|
|
Issued:
|
|
|
|
|
|
|||
Employee stock purchase plan
|
47
|
|
|
—
|
|
|
47
|
|
Long-term incentive plan
|
420
|
|
|
—
|
|
|
420
|
|
401(k) and profit sharing
|
264
|
|
|
—
|
|
|
264
|
|
Balance as of March 31, 2018
|
341,544
|
|
|
(3,946
|
)
|
|
337,598
|
|
Standard
|
Description
|
Effective Date
|
Effect on the financial statements or other significant matters
|
ASU 2016-13,
Financial Instruments-Credit Losses (Topic 326)
|
The pronouncement changes the impairment model for most financial assets, replacing the current "incurred loss" model. ASU 2016-13 will require the use of an "expected loss" model for instruments measured at amortized cost. It will also require entities to record allowances for available-for-sale debt securities rather than impair the carrying amount of the securities. Subsequent improvements to the estimated credit losses of available-for-sale securities will be recognized immediately in earnings instead of over time as they are under historic guidance.
|
Annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for annual or interim periods beginning after December 15, 2018.
|
We maintain investments in U.S. Treasury, corporate and mortgage-backed debt securities which are pledged as collateral for trust accounts related to our wholly-owned insurance company. These debt securities are classified as available for sale. We are currently evaluating the impact of adoption, if any, on our Condensed Consolidated Financial Statements (unaudited) and Notes to Condensed Consolidated Financial Statements (unaudited).
|
ASU 2018-01,
Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842
|
The pronouncement offers a practical expedient for accounting for land easements under ASU 2016-02. This practical expedient allows an entity the option of not evaluating existing land easements under ASC 842. New or modified land easements will still require evaluation under ASC 842 on a prospective basis beginning on the date of adoption.
|
Annual periods beginning after December 15, 2018, including interim periods therein. Early adoption is permitted.
|
We formed an internal stakeholder group that meets periodically to share information and gather data related to our leasing activity. This includes compiling a list of all contracts that could meet the definition of a lease and evaluating the accounting for these contracts under the new standard to determine the ultimate impact the new standards will have on our financial statements. 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. In addition, we are implementing a new lease accounting system, which we will utilize to capture, track, and record lease data. We maintain a substantial number of easements and expect ASU 2018-01 will ease the process of implementing ASC 842. We continue to monitor both FASB and industry updates related to the new leasing standards and intend to adopt these standards effective January 1, 2019.
|
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.
|
Standard
|
Adoption
|
ASU 2018-02,
Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
We elected to adopt this ASU effective March 31, 2018. Upon adoption, $9.5 million of tax effects that were stranded in accumulated other comprehensive loss as a result of the implementation of the TCJA have been reclassified to retained deficit. This change is reflected on our Condensed Statements of Consolidated Equity (unaudited).
|
ASU 2016-15,
Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force)
|
We adopted this ASU effective January 1, 2018. The adoption of this standard did not have a material impact on our Condensed Consolidated Financial Statements (unaudited) or Notes to Condensed Consolidated Financial Statements (unaudited).
|
ASU 2016-12,
Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients
|
See Note 3, "Revenue Recognition," for our discussion of the effects of implementing these standards.
|
ASU 2016-08,
Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations
|
|
ASU 2014-09,
Revenue from Contracts with Customers (Topic 606)
|
Year Ended December 31, 2016
(in millions)
|
|
As Previously Reported
|
|
Effect of Change
(1)
|
|
As Adjusted
|
||||||
Operation and maintenance
|
|
$
|
1,453.7
|
|
|
$
|
(7.9
|
)
|
|
$
|
1,445.8
|
|
Total Operating Expenses
|
|
3,634.3
|
|
|
(7.9
|
)
|
|
3,626.4
|
|
|||
Operating Income
|
|
858.2
|
|
|
7.9
|
|
|
866.1
|
|
|||
Other Income (Deductions)
|
|
|
|
|
|
|
||||||
Other, net
|
|
1.5
|
|
|
(7.9
|
)
|
|
(6.4
|
)
|
|||
Total Other Deductions
|
|
(348.0
|
)
|
|
(7.9
|
)
|
|
(355.9
|
)
|
|||
Income before Income Taxes
|
|
$
|
510.2
|
|
|
$
|
—
|
|
|
$
|
510.2
|
|
Year Ended December 31, 2017
(in millions)
|
|
As Previously Reported
|
|
Effect of Change
(1)
|
|
As Adjusted
|
||||||
Operation and maintenance
|
|
$
|
1,612.3
|
|
|
$
|
(10.6
|
)
|
|
$
|
1,601.7
|
|
Total Operating Expenses
|
|
3,964.0
|
|
|
(10.6
|
)
|
|
3,953.4
|
|
|||
Operating Income
|
|
910.6
|
|
|
10.6
|
|
|
921.2
|
|
|||
Other Income (Deductions)
|
|
|
|
|
|
|
||||||
Other, net
|
|
(2.8
|
)
|
|
(10.6
|
)
|
|
(13.4
|
)
|
|||
Total Other Deductions
|
|
(467.5
|
)
|
|
(10.6
|
)
|
|
(478.1
|
)
|
|||
Income before Income Taxes
|
|
$
|
443.1
|
|
|
$
|
—
|
|
|
$
|
443.1
|
|
|
Three Months Ended
March 31, |
||||||
(in millions)
|
2018
|
|
2017
|
||||
Operating Revenues
|
|
|
|
||||
Gas Distribution
|
$
|
983.8
|
|
|
$
|
836.5
|
|
Gas Transportation
|
342.2
|
|
|
338.6
|
|
||
Electric
|
423.3
|
|
|
421.7
|
|
||
Other
|
1.5
|
|
|
1.8
|
|
||
Total Operating Revenues
|
$
|
1,750.8
|
|
|
$
|
1,598.6
|
|
Three Months Ended March 31, 2018 (
in millions)
|
Gas Distribution Operations
|
|
Electric Operations
|
|
Corporate and Other
|
|
Total
|
||||||||
Customer Revenues
(1)
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
893.6
|
|
|
$
|
114.5
|
|
|
$
|
—
|
|
|
$
|
1,008.1
|
|
Commercial
|
308.3
|
|
|
116.9
|
|
|
—
|
|
|
425.2
|
|
||||
Industrial
|
74.6
|
|
|
162.5
|
|
|
—
|
|
|
237.1
|
|
||||
Off-system
|
22.3
|
|
|
—
|
|
|
—
|
|
|
22.3
|
|
||||
Miscellaneous
|
16.8
|
|
|
7.5
|
|
|
0.2
|
|
|
24.5
|
|
||||
Total Customer Revenues
|
$
|
1,315.6
|
|
|
$
|
401.4
|
|
|
$
|
0.2
|
|
|
$
|
1,717.2
|
|
Other Revenues
|
11.7
|
|
|
21.9
|
|
|
—
|
|
|
33.6
|
|
||||
Total Operating Revenues
|
$
|
1,327.3
|
|
|
$
|
423.3
|
|
|
$
|
0.2
|
|
|
$
|
1,750.8
|
|
(in millions)
|
Customer Accounts Receivable, Billed (less reserve)
(1)
|
|
Customer Accounts Receivable, Unbilled (less reserve)
(2)
|
||||
Balance as of December 31, 2017
|
$
|
477.0
|
|
|
$
|
356.0
|
|
Balance as of March 31, 2018
|
617.2
|
|
|
274.6
|
|
||
Increase (Decrease)
|
$
|
140.2
|
|
|
$
|
(81.4
|
)
|
|
Three Months Ended
|
||||
|
March 31,
|
||||
(in thousands)
|
2018
|
|
2017
|
||
Denominator
|
|
|
|
||
Basic average common shares outstanding
|
338,012
|
|
|
323,681
|
|
Dilutive potential common shares:
|
|
|
|
||
Shares contingently issuable under employee stock plans
|
715
|
|
|
360
|
|
Shares restricted under employee stock plans
|
264
|
|
|
1,265
|
|
Diluted Average Common Shares
|
338,991
|
|
|
325,306
|
|
|
|
|
|
(in millions)
|
March 31, 2018
|
|
December 31, 2017
|
||||
Risk Management Assets - Current
(1)
|
|
|
|
||||
Interest rate risk programs
|
$
|
9.4
|
|
|
$
|
14.0
|
|
Commodity price risk programs
|
0.4
|
|
|
0.5
|
|
||
Total
|
$
|
9.8
|
|
|
$
|
14.5
|
|
Risk Management Assets - Noncurrent
(2)
|
|
|
|
||||
Interest rate risk programs
|
$
|
18.6
|
|
|
$
|
5.6
|
|
Commodity price risk programs
|
2.8
|
|
|
1.0
|
|
||
Total
|
$
|
21.4
|
|
|
$
|
6.6
|
|
Risk Management Liabilities - Current
|
|
|
|
||||
Interest rate risk programs
|
$
|
—
|
|
|
$
|
38.6
|
|
Commodity price risk programs
|
4.6
|
|
|
4.6
|
|
||
Total
|
$
|
4.6
|
|
|
$
|
43.2
|
|
Risk Management Liabilities - Noncurrent
|
|
|
|
||||
Interest rate risk programs
|
$
|
—
|
|
|
$
|
—
|
|
Commodity price risk programs
|
32.8
|
|
|
28.5
|
|
||
Total
|
$
|
32.8
|
|
|
$
|
28.5
|
|
Recurring Fair Value Measurements
March 31, 2018 (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, 2018
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Risk management assets
|
$
|
—
|
|
|
$
|
31.0
|
|
|
$
|
0.2
|
|
|
$
|
31.2
|
|
Available-for-sale securities
|
—
|
|
|
132.5
|
|
|
—
|
|
|
132.5
|
|
||||
Total
|
$
|
—
|
|
|
$
|
163.5
|
|
|
$
|
0.2
|
|
|
$
|
163.7
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Risk management liabilities
|
$
|
—
|
|
|
$
|
37.4
|
|
|
$
|
—
|
|
|
$
|
37.4
|
|
Total
|
$
|
—
|
|
|
$
|
37.4
|
|
|
$
|
—
|
|
|
$
|
37.4
|
|
Recurring Fair Value Measurements
December 31, 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
December 31, 2017
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Risk management assets
|
$
|
—
|
|
|
$
|
21.1
|
|
|
$
|
—
|
|
|
$
|
21.1
|
|
Available-for-sale securities
|
—
|
|
|
133.9
|
|
|
—
|
|
|
133.9
|
|
||||
Total
|
$
|
—
|
|
|
$
|
155.0
|
|
|
$
|
—
|
|
|
$
|
155.0
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Risk management liabilities
|
$
|
—
|
|
|
$
|
71.4
|
|
|
$
|
0.3
|
|
|
$
|
71.7
|
|
Total
|
$
|
—
|
|
|
$
|
71.4
|
|
|
$
|
0.3
|
|
|
$
|
71.7
|
|
March 31, 2018
(in millions)
|
Amortized
Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair
Value
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury debt securities
|
$
|
22.3
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
$
|
22.2
|
|
Corporate/Other debt securities
|
112.2
|
|
|
0.3
|
|
|
(2.2
|
)
|
|
110.3
|
|
||||
Total
|
$
|
134.5
|
|
|
$
|
0.3
|
|
|
$
|
(2.3
|
)
|
|
$
|
132.5
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
(in millions)
|
Amortized
Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair
Value
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury debt securities
|
$
|
26.9
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
$
|
26.8
|
|
Corporate/Other debt securities
|
106.8
|
|
|
0.9
|
|
|
(0.6
|
)
|
|
107.1
|
|
||||
Total
|
$
|
133.7
|
|
|
$
|
0.9
|
|
|
$
|
(0.7
|
)
|
|
$
|
133.9
|
|
(in millions)
|
Carrying
Amount as of March 31, 2018 |
|
Estimated Fair
Value as of March 31, 2018 |
|
Carrying
Amount as of
Dec. 31, 2017
|
|
Estimated Fair
Value as of
Dec. 31, 2017
|
||||||||
Long-term debt (including current portion)
|
$
|
7,549.5
|
|
|
$
|
7,862.3
|
|
|
$
|
7,796.5
|
|
|
$
|
8,603.4
|
|
(in millions)
|
March 31, 2018
|
|
December 31, 2017
|
||||
Gross Receivables
|
$
|
683.4
|
|
|
$
|
635.3
|
|
Less: Receivables not transferred
|
170.0
|
|
|
298.6
|
|
||
Net receivables transferred
|
$
|
513.4
|
|
|
$
|
336.7
|
|
Short-term debt due to asset securitization
|
$
|
513.4
|
|
|
$
|
336.7
|
|
(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 March 31,
(in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Components of Net Periodic Benefit (Income) Cost
(1)
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
7.9
|
|
|
$
|
7.5
|
|
|
$
|
1.3
|
|
|
$
|
1.2
|
|
Interest cost
|
16.6
|
|
|
17.2
|
|
|
4.4
|
|
|
4.5
|
|
||||
Expected return on assets
|
(36.3
|
)
|
|
(30.3
|
)
|
|
(3.7
|
)
|
|
(4.0
|
)
|
||||
Amortization of prior service credit
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(1.0
|
)
|
|
(1.1
|
)
|
||||
Recognized actuarial loss
|
10.2
|
|
|
13.4
|
|
|
0.9
|
|
|
0.8
|
|
||||
Total Net Periodic Benefit (Income) Cost
|
$
|
(1.7
|
)
|
|
$
|
7.6
|
|
|
$
|
1.9
|
|
|
$
|
1.4
|
|
|
|
|
|
|
|
|
|
(in millions)
|
March 31,
2018 |
|
December 31,
2017 |
||||
Commercial Paper weighted-average interest rate of 2.51% and 1.97% at March 31, 2018 and December 31, 2017, respectively
|
$
|
1,053.9
|
|
|
$
|
869.0
|
|
Accounts receivable securitization facility borrowings
|
513.4
|
|
|
336.7
|
|
||
Total Short-Term Borrowings
|
$
|
1,567.3
|
|
|
$
|
1,205.7
|
|
Three Months Ended March 31, 2018
(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, 2018
|
$
|
0.2
|
|
|
$
|
(29.4
|
)
|
|
$
|
(14.2
|
)
|
|
$
|
(43.4
|
)
|
Other comprehensive income (loss) before reclassifications
|
(1.9
|
)
|
|
51.1
|
|
|
(0.6
|
)
|
|
48.6
|
|
||||
Amounts reclassified from accumulated other comprehensive loss
(2)
|
0.2
|
|
|
(15.7
|
)
|
|
0.8
|
|
|
(14.7
|
)
|
||||
Net current-period other comprehensive income (loss)
|
(1.7
|
)
|
|
35.4
|
|
|
0.2
|
|
|
33.9
|
|
||||
Reclassification due to adoption of ASU 2018-02 (Refer to Note 2)
|
—
|
|
|
(6.3
|
)
|
|
(3.2
|
)
|
|
$
|
(9.5
|
)
|
|||
Balance as of March 31, 2018
|
$
|
(1.5
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
(17.2
|
)
|
|
$
|
(19.0
|
)
|
Three Months Ended March 31, 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 before reclassifications
|
0.2
|
|
|
4.6
|
|
|
0.1
|
|
|
4.9
|
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
0.2
|
|
|
0.3
|
|
|
0.1
|
|
|
0.6
|
|
||||
Net current-period other comprehensive income
|
0.4
|
|
|
4.9
|
|
|
0.2
|
|
|
5.5
|
|
||||
Balance as of March 31, 2017
|
$
|
(0.2
|
)
|
|
$
|
(2.0
|
)
|
|
$
|
(17.4
|
)
|
|
$
|
(19.6
|
)
|
Three Months Ended March 31,
(in millions)
|
2018
|
|
2017
|
||||
Interest Income
|
$
|
1.7
|
|
|
$
|
0.9
|
|
AFUDC Equity
|
3.7
|
|
|
2.5
|
|
||
Pension and other postretirement non-service cost
|
6.2
|
|
|
1.2
|
|
||
Interest rate swap settlement gain
(1)
|
21.2
|
|
|
—
|
|
||
Miscellaneous
|
(1.5
|
)
|
|
(2.3
|
)
|
||
Total Other, net
|
$
|
31.3
|
|
|
$
|
2.3
|
|
|
Three Months Ended
March 31, |
||||||
(in millions)
|
2018
|
|
2017
|
||||
Operating Revenues
|
|
|
|
||||
Gas Distribution Operations
|
|
|
|
||||
Unaffiliated
|
$
|
1,327.3
|
|
|
$
|
1,176.3
|
|
Intersegment
|
3.3
|
|
|
3.5
|
|
||
Total
|
1,330.6
|
|
|
1,179.8
|
|
||
Electric Operations
|
|
|
|
||||
Unaffiliated
|
423.3
|
|
|
421.7
|
|
||
Intersegment
|
0.2
|
|
|
0.2
|
|
||
Total
|
423.5
|
|
|
421.9
|
|
||
Corporate and Other
|
|
|
|
||||
Unaffiliated
|
0.2
|
|
|
0.6
|
|
||
Intersegment
|
114.1
|
|
|
119.6
|
|
||
Total
|
114.3
|
|
|
120.2
|
|
||
Eliminations
|
(117.6
|
)
|
|
(123.3
|
)
|
||
Consolidated Operating Revenues
|
$
|
1,750.8
|
|
|
$
|
1,598.6
|
|
Operating Income (Loss)
|
|
|
|
||||
Gas Distribution Operations
|
$
|
321.7
|
|
|
$
|
338.8
|
|
Electric Operations
|
83.1
|
|
|
77.6
|
|
||
Corporate and Other
|
(4.2
|
)
|
|
(1.0
|
)
|
||
Consolidated Operating Income
|
$
|
400.6
|
|
|
$
|
415.4
|
|
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 March 31,
|
||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018 vs. 2017
|
||||||
Operating Income
|
$
|
400.6
|
|
|
$
|
415.4
|
|
|
$
|
(14.8
|
)
|
|
Three Months Ended March 31,
|
||||||||||
(in millions, except per share amounts)
|
2018
|
|
2017
|
|
2018 vs. 2017
|
||||||
Operating Revenues
|
$
|
1,750.8
|
|
|
$
|
1,598.6
|
|
|
$
|
152.2
|
|
Cost of Sales (excluding depreciation and amortization)
|
724.4
|
|
|
552.3
|
|
|
172.1
|
|
|||
Total Net Revenues
|
1,026.4
|
|
|
1,046.3
|
|
|
(19.9
|
)
|
|||
Other Operating Expenses
|
625.8
|
|
|
630.9
|
|
|
(5.1
|
)
|
|||
Operating Income
|
400.6
|
|
|
415.4
|
|
|
(14.8
|
)
|
|||
Total Other Deductions
|
(61.8
|
)
|
|
(82.9
|
)
|
|
21.1
|
|
|||
Income Taxes
|
62.7
|
|
|
121.2
|
|
|
(58.5
|
)
|
|||
Net Income
|
276.1
|
|
|
211.3
|
|
|
64.8
|
|
|||
Basic Earnings Per Share
|
$
|
0.82
|
|
|
$
|
0.65
|
|
|
$
|
0.17
|
|
Basic Average Common Shares Outstanding
|
338.0
|
|
|
323.7
|
|
|
14.3
|
|
•
|
NIPSCO reached a settlement with parties to its base rate case pending before the IURC. 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 the settlement is approved as filed, it will result in an annual revenue increase of $107.3 million, inclusive of amounts being recovered through various tracker programs and reflecting the impact of the TCJA. An order is expected from the IURC in the second half of 2018.
|
•
|
On April 2, 2018, NIPSCO filed a new seven-year gas infrastructure modernization program with the IURC. The filing represents approximately $1.25 billion of gas infrastructure investments through 2025. The well-established program allows for modernization of underground natural gas infrastructure and recovery of associated costs through the TDSIC. An IURC order on the new seven-year plan is expected in the second half of 2018. On February 27, 2018, NIPSCO filed its latest TDSIC tracker update request, covering $77.9 million of investments made in the second half of 2017.
|
•
|
On March 16, 2018. Columbia of Pennsylvania filed a base rate case with the Pennsylvania PUC seeking approval for an annual revenue increase of $46.9 million to upgrade and replace the underground natural gas distribution pipelines and enhance pipeline safety. An order is expected in the fourth quarter of 2018 with new rates to be implemented in December 2018.
|
•
|
On April 25, 2018, the PUCO approved Columbia of Ohio’s annual IRP tracker adjustment. The order allows recovery to begin on approximately $207 million of infrastructure investments made in 2017. In January, the PUCO approved a settlement which allows Columbia of Ohio to continue the IRP through 2022. This well-established pipeline replacement program covers replacement of priority mainline pipe and targeted customer service lines.
|
•
|
On April 13, 2018, Columbia of Massachusetts filed a rate case with the Massachusetts DPU seeking authorization to increase base rates to recover operating costs associated with federal and state regulatory mandates and capital costs associated with upgrading its gas distribution infrastructure. If approved as filed, the request would increase annual revenues by $24.1 million, net of infrastructure trackers. If approved, rates are expected to go into effect March 1, 2019.
|
•
|
Also at Columbia of Massachusetts, the Massachusetts DPU approved the 2018 GSEP on April 30, 2018. This approval authorizes recovery of incremental capital investments of $83.9 million. New rates were effective May 1, 2018.
|
•
|
On April 13, 2018, Columbia of Maryland filed a base rate case with the Maryland PSC. If approved as filed, the rate adjustment would result in an annual revenue increase of $6.0 million. An order is expected in the fourth quarter of 2018 with new rates effective in November 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 January 30, 2018, NIPSCO filed its latest tracker update request, covering $75.0 million in incremental investments made from May 2017 through November 2017. An IURC order is expected in May 2018 with new rates expected to go into effect with the first billing cycle of June 2018.
|
|
Three Months Ended March 31,
|
||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018 vs. 2017
|
||||||
Operating Income
|
$
|
321.7
|
|
|
$
|
338.8
|
|
|
$
|
(17.1
|
)
|
|
Three Months Ended March 31,
|
||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018 vs. 2017
|
||||||
Net Revenues
|
|
|
|
|
|
||||||
Operating Revenues
|
$
|
1,330.6
|
|
|
$
|
1,179.8
|
|
|
$
|
150.8
|
|
Less: Cost of gas sold (excluding depreciation and amortization)
|
591.8
|
|
|
436.2
|
|
|
155.6
|
|
|||
Net Revenues
|
738.8
|
|
|
743.6
|
|
|
(4.8
|
)
|
|||
Operating Expenses
|
|
|
|
|
|
||||||
Operation and maintenance
|
287.2
|
|
|
284.5
|
|
|
2.7
|
|
|||
Depreciation and amortization
|
70.7
|
|
|
65.3
|
|
|
5.4
|
|
|||
Other taxes
|
59.2
|
|
|
55.0
|
|
|
4.2
|
|
|||
Total Operating Expenses
|
417.1
|
|
|
404.8
|
|
|
12.3
|
|
|||
Operating Income
|
$
|
321.7
|
|
|
$
|
338.8
|
|
|
$
|
(17.1
|
)
|
Revenues
|
|
|
|
|
|
||||||
Residential
|
$
|
893.0
|
|
|
$
|
801.8
|
|
|
$
|
91.2
|
|
Commercial
|
308.9
|
|
|
269.8
|
|
|
39.1
|
|
|||
Industrial
|
74.7
|
|
|
71.5
|
|
|
3.2
|
|
|||
Off-System
|
22.3
|
|
|
30.9
|
|
|
(8.6
|
)
|
|||
Other
|
31.7
|
|
|
5.8
|
|
|
25.9
|
|
|||
Total
|
$
|
1,330.6
|
|
|
$
|
1,179.8
|
|
|
$
|
150.8
|
|
Sales and Transportation (MMDth)
|
|
|
|
|
|
||||||
Residential
|
135.1
|
|
|
113.5
|
|
|
21.6
|
|
|||
Commercial
|
82.2
|
|
|
69.4
|
|
|
12.8
|
|
|||
Industrial
|
145.5
|
|
|
132.8
|
|
|
12.7
|
|
|||
Off-System
|
7.6
|
|
|
10.8
|
|
|
(3.2
|
)
|
|||
Other
|
0.1
|
|
|
(0.1
|
)
|
|
0.2
|
|
|||
Total
|
370.5
|
|
|
326.4
|
|
|
44.1
|
|
|||
Heating Degree Days
|
2,823
|
|
|
2,379
|
|
|
444
|
|
|||
Normal Heating Degree Days
|
2,892
|
|
|
2,892
|
|
|
—
|
|
|||
% Warmer than Normal
|
(2
|
)%
|
|
(18
|
)%
|
|
|
||||
Gas Distribution Customers
|
|
|
|
|
|
||||||
Residential
|
3,179,647
|
|
|
3,152,352
|
|
|
27,295
|
|
|||
Commercial
|
281,503
|
|
|
280,480
|
|
|
1,023
|
|
|||
Industrial
|
6,244
|
|
|
6,225
|
|
|
19
|
|
|||
Other
|
5
|
|
|
—
|
|
|
5
|
|
|||
Total
|
3,467,399
|
|
|
3,439,057
|
|
|
28,342
|
|
•
|
A regulatory revenue reserve in 2018 resulting from the probable future refund of certain collections from customers as a result of the lower income tax rate from the TCJA of $47.6 million.
|
•
|
The effects of colder weather in 2018 of $24.6 million.
|
•
|
New rates from infrastructure replacement programs of $12.5 million.
|
•
|
The effects of increased customer growth and usage of $6.5 million.
|
•
|
Higher employee and administrative expenses of $7.7 million.
|
•
|
Increased depreciation of $5.1 million due to higher capital expenditures placed in service.
|
|
Three Months Ended March 31,
|
||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018 vs. 2017
|
||||||
Operating Income
|
$
|
83.1
|
|
|
$
|
77.6
|
|
|
$
|
5.5
|
|
|
Three Months Ended March 31,
|
||||||||||
(in millions)
|
2018
|
|
2017
|
|
2018 vs. 2017
|
||||||
Net Revenues
|
|
|
|
|
|
||||||
Operating revenues
|
$
|
423.5
|
|
|
$
|
421.9
|
|
|
$
|
1.6
|
|
Less: Cost of sales (excluding depreciation and amortization)
|
132.7
|
|
|
116.2
|
|
|
16.5
|
|
|||
Net Revenues
|
290.8
|
|
|
305.7
|
|
|
(14.9
|
)
|
|||
Operating Expenses
|
|
|
|
|
|
||||||
Operation and maintenance
|
126.2
|
|
|
138.8
|
|
|
(12.6
|
)
|
|||
Depreciation and amortization
|
65.5
|
|
|
72.0
|
|
|
(6.5
|
)
|
|||
Other taxes
|
16.0
|
|
|
17.3
|
|
|
(1.3
|
)
|
|||
Total Operating Expenses
|
207.7
|
|
|
228.1
|
|
|
(20.4
|
)
|
|||
Operating Income
|
$
|
83.1
|
|
|
$
|
77.6
|
|
|
$
|
5.5
|
|
Revenues
|
|
|
|
|
|
||||||
Residential
|
$
|
114.5
|
|
|
$
|
115.7
|
|
|
$
|
(1.2
|
)
|
Commercial
|
116.9
|
|
|
120.7
|
|
|
(3.8
|
)
|
|||
Industrial
|
162.7
|
|
|
179.1
|
|
|
(16.4
|
)
|
|||
Wholesale
|
4.7
|
|
|
2.8
|
|
|
1.9
|
|
|||
Other
|
24.7
|
|
|
3.6
|
|
|
21.1
|
|
|||
Total
|
$
|
423.5
|
|
|
$
|
421.9
|
|
|
$
|
1.6
|
|
Sales (Gigawatt Hours)
|
|
|
|
|
|
||||||
Residential
|
788.4
|
|
|
752.6
|
|
|
35.8
|
|
|||
Commercial
|
905.7
|
|
|
895.0
|
|
|
10.7
|
|
|||
Industrial
|
2,333.8
|
|
|
2,363.3
|
|
|
(29.5
|
)
|
|||
Wholesale
|
50.8
|
|
|
20.2
|
|
|
30.6
|
|
|||
Other
|
33.2
|
|
|
33.4
|
|
|
(0.2
|
)
|
|||
Total
|
4,111.9
|
|
|
4,064.5
|
|
|
47.4
|
|
|||
Electric Customers
|
|
|
|
|
|
||||||
Residential
|
409,962
|
|
|
407,321
|
|
|
2,641
|
|
|||
Commercial
|
56,175
|
|
|
55,692
|
|
|
483
|
|
|||
Industrial
|
2,300
|
|
|
2,315
|
|
|
(15
|
)
|
|||
Wholesale
|
739
|
|
|
750
|
|
|
(11
|
)
|
|||
Other
|
2
|
|
|
2
|
|
|
—
|
|
|||
Total
|
469,178
|
|
|
466,080
|
|
|
3,098
|
|
•
|
Lower regulatory and depreciation trackers, which are offset in operating expense, of $13.3 million.
|
•
|
A regulatory revenue reserve in 2018 resulting from the probable future refund of certain collections from customers as a result of the lower income tax rate from the TCJA of $12.5 million.
|
•
|
Increased rates from incremental capital spend on electric transmission projects of $7.7 million.
|
•
|
The effects of colder weather of $3.0 million.
|
•
|
Lower regulatory and depreciation trackers, which are offset in net revenues, of $13.3 million.
|
•
|
Decreased materials and supplies costs of $4.9 million and lower outside service costs of $4.3 million primarily related to decreased planned maintenance.
|
(in millions)
|
March 31, 2018
|
December 31, 2017
|
||||
Current Liquidity
|
|
|
||||
Revolving Credit Facility
|
$
|
1,850.0
|
|
$
|
1,850.0
|
|
Accounts Receivable Program
(1)
|
513.4
|
|
336.7
|
|
||
Less:
|
|
|
||||
Drawn on Revolving Credit Facility
|
—
|
|
—
|
|
||
Commercial Paper
|
1,053.9
|
|
869.0
|
|
||
Accounts Receivable Program Utilized
|
513.4
|
|
336.7
|
|
||
Letters of Credit Outstanding Under Credit Facility
|
10.7
|
|
11.1
|
|
||
Add:
|
|
|
||||
Cash and Cash Equivalents
|
35.0
|
|
29.0
|
|
||
Net Available Liquidity
|
$
|
820.4
|
|
$
|
998.9
|
|
|
S&P
|
Moody's
|
Fitch
|
|||
|
Rating
|
Outlook
|
Rating
|
Outlook
|
Rating
|
Outlook
|
NiSource
|
BBB+
|
Stable
|
Baa2
|
Stable
|
BBB
|
Stable
|
NIPSCO
|
BBB+
|
Stable
|
Baa1
|
Stable
|
BBB
|
Stable
|
Columbia of Massachusetts
|
BBB+
|
Stable
|
Baa2
|
Stable
|
Not rated
|
Not rated
|
Commercial Paper
|
A-2
|
Stable
|
P-2
|
Stable
|
F3
|
Stable
|
(3.1)
|
Amended and Restated Bylaws of NiSource Inc., adopted on January 26, 2018 (incorporated by reference to
Exhibit 3.1 of the NiSource Inc. Form 8-K
filed on January 26, 2018).
|
|
|
(4.1)
|
|
|
|
(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:
|
May 2, 2018
|
By:
|
/s/ Joseph W. Mulpas
|
|
|
|
|
Joseph W. Mulpas
|
|
|
|
|
Vice President and Chief Accounting Officer
(Principal Accounting Officer)
|
|
|
|
By:
|
/s/ Donald E. Brown
|
|
|
|
|
Name:
|
Donald E. Brown
|
|
|
|
|
Title:
|
Executive Vice President and Chief Financial Officer
|
|
Attest:
|
|
|
|
|
|
|
|
|
By:
|
/s/ Samuel K. Lee
|
|
|
Samuel K. Lee
|
|
|
Vice President and Corporate Secretary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018
|
December 31, 2017
|
December 31, 2016
|
December 31, 2015
|
December 31, 2014
|
December 31, 2013
|
||||||||||||
Earnings as defined in item 503(d) of Regulation S-K:
|
|
|
|
|
|
|
||||||||||||
Add:
|
|
|
|
|
|
|
||||||||||||
Pretax income from continuing operations (a)(b)
|
$
|
338,752,250
|
|
$
|
442,760,285
|
|
$
|
510,208,667
|
|
$
|
340,406,027
|
|
$
|
423,910,493
|
|
$
|
330,158,304
|
|
Fixed Charges
|
107,723,885
|
|
412,282,807
|
|
407,450,678
|
|
422,886,197
|
|
421,483,105
|
|
410,081,138
|
|
||||||
Amortization of capitalized interest (c)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Distributed income of equity investees
|
375,236
|
|
1,392,463
|
|
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
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
|
$
|
446,851,371
|
|
$
|
856,435,555
|
|
$
|
917,884,047
|
|
$
|
763,443,343
|
|
$
|
845,504,562
|
|
$
|
740,357,858
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges as defined in item 503(d) of Regulation S-K:
|
|
|
|
|
|
|
||||||||||||
Interest on long-term debt
|
$
|
92,380,764
|
|
$
|
354,777,430
|
|
$
|
352,265,520
|
|
$
|
377,469,202
|
|
$
|
368,614,101
|
|
$
|
364,427,942
|
|
Other interest
|
9,866,502
|
|
33,771,593
|
|
30,244,516
|
|
20,897,004
|
|
22,963,342
|
|
20,521,761
|
|
||||||
Capitalized interest during period (c)
|
|
|
|
|
|
|
||||||||||||
Amortization of premium, reacquisition premium, discount and expense on debt, net
|
1,899,339
|
|
7,237,875
|
|
7,618,345
|
|
8,701,321
|
|
9,967,085
|
|
9,395,881
|
|
||||||
Interest portion of rent expense
|
3,577,280
|
|
16,495,909
|
|
17,322,297
|
|
15,818,670
|
|
19,938,578
|
|
15,735,555
|
|
||||||
Non-controlling interest
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
|
$
|
107,723,885
|
|
$
|
412,282,807
|
|
$
|
407,450,678
|
|
$
|
422,886,197
|
|
$
|
421,483,106
|
|
$
|
410,081,139
|
|
|
|
|
|
|
|
|
||||||||||||
Plus preferred stock dividends: Preferred dividend requirements of subsidiary
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Preferred dividend requirements factor
|
0.81
|
|
0.29
|
|
0.64
|
|
0.58
|
|
0.61
|
|
0.67
|
|
||||||
Preference security dividend requirements of consolidated subsidiaries (d)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Fixed charges
|
107,723,885
|
|
412,282,807
|
|
407,450,678
|
|
422,886,197
|
|
421,483,106
|
|
410,081,139
|
|
||||||
|
$
|
107,723,885
|
|
$
|
412,282,807
|
|
$
|
407,450,678
|
|
$
|
422,886,197
|
|
$
|
421,483,106
|
|
$
|
410,081,139
|
|
|
|
|
|
|
|
|
||||||||||||
Ratio of earnings to fixed charges
|
4.15
|
|
2.08
|
|
2.25
|
|
1.81
|
|
2.01
|
|
1.81
|
|
1.
|
I have reviewed this Quarterly Report of NiSource Inc. on Form 10-Q for the quarter ended
March 31, 2018
;
|
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:
|
May 2, 2018
|
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
March 31, 2018
;
|
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:
|
May 2, 2018
|
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:
|
|
May 2, 2018
|
|
(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:
|
|
May 2, 2018
|
|