NISOURCE INC. (NI) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that NISOURCE INC. surfaced in its latest filing.

• Two coal units at R.M. Schahfer Generating Station are subject to a federal directive to remain open, delaying previously intended 2025 retirement.2025
• Two natural gas-fired peaking units at R.M. Schahfer Generating Station intended for retirement.by end of 2027
• Coal unit at Michigan City Generating Station intended for retirement.by end of 2028
• Under the ADS Contract, NIPSCO expects to construct 400 MW of new battery storage and a new power generation facility consisting of two 1,300 MW CCGTs, expected to reach commercial operation.between 2028 and 2032
• Announced net zero Scope 1 and 2 greenhouse gas emissions goal.November 2022
• Total consolidated indebtedness of $16,213.5 million outstanding.December 31, 2025
• Debt-to-capitalization ratio was 51.0% under the revolving credit facility covenant.December 31, 2025
• NIPSCO is incurring costs for closing, corrective action, and ongoing monitoring of certain CCR impoundments.
• Pending application with the EPA to continue operation of a CCR impoundment tied to R.M. Schahfer Generating Station Units 17 and 18, operating under a 202(c) order.
• The EPA has proposed a rule extending the deadline to close the CCR impoundment at R.M. Schahfer.from 2028 to 2031
• The Inflation Reduction Act imposes a 15 percent minimum tax rate on book earnings for corporations with higher than $1 billion of annual income.
• The Inflation Reduction Act imposes a 1 percent excise tax on corporate stock repurchases.
• ADS has a one-time option to halve committed capacity under the ADS Contract to 1,200 MW.exercisable no later than March 31, 2029; commencing January 31, 2032
• In November 2024, the TSA issued a Notice of Proposed Rulemaking (NPRM) that would mandate cyber risk management and reporting requirements for the pipeline industry.November 2024
• The NIPSCO Holdings II LLC Agreement and Generation Holdings II LLC Agreement contain certain protective rights held by third-party investors, and Blackstone affiliates have minority interest investments.
• NIPSCO's electric generation transition outlined in the 2024 Plan is a key element of the Net Zero Goal.2024