NiSource secured federal approval to sell a 19.9% stake in its NIPSCO utility.
The Federal Energy Regulatory Commission gave the Merrillville-based company approval to sell Blackstone Infrastructure Partners a minority stake valued at $2.15 billion in the electric and gas utility.
NiSource, which also owns Columbia Gas and is one of the largest publicly traded utility companies in the country, will retain the remaining 80.1% of NIPSCO, one of the largest electric and gas utilities in Indiana.
“We are pleased to have received FERC’s approval of the proposed transaction with Blackstone Infrastructure Partners,” said Shawn Anderson, NiSource's executive vice president and CFO. “Following the transaction close, NiSource’s balance sheet will be strengthened and positioned to support an ongoing robust capital expenditures program. We believe this valued partnership with Blackstone will greatly benefit our communities in Northwest Indiana, and the further development of our NIPSCO operating company — a critical piece to ensuring long-term safety and reliability, while supporting the energy transition.”
No further regulatory approval is needed to complete the transaction, which NiSource said would shore up its finances and improve shareholder returns by an estimated 9% to 11%. The deal provides it with more capital it doesn't have to get through raising customer rates, the company said.
NIPSCO President Michael Hooper said in a letter to employees the deal would have no impact on operations, customers or day-to-day decision-making.
NiSource expects to close the transaction this year.
NiSource, a member of the Dow Jones Sustainability-North America Index, serves about 3.3 million natural gas customers and 500,000 electric customers in six states. It was the only Fortune 500 company headquartered in Northwest Indiana until it sold off the Columbia Pipeline Group business in 2015.
Its NIPSCO subsidiary serves more than 821,000 natural gas customers and 468,000 electric customers across the northern third of Indiana.
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