NiSource Inc. is one of the largest fully regulated utility companies in the United States, serving approximately 3.5 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The company, based in Merrillville, Indiana, has more than 8,000 employees. As of 2018, NiSource is the sole Indiana-based utility company.3Wikipedia text CC BY-SA 4.0
NiSource Inc. is one of the largest fully regulated utility companies in the United States, serving approximately 3.5 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. The company, based in Merrillville, Indiana, has more than 8,000 employees. As of 2018, NiSource is the sole Indiana-based utility company.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Where each dollar of operating cash went, fiscal 2025
Capital spendingDividends paid
Capital spending84¢$2.8B
Dividends paid16¢$530.4M
Out of $2.4B of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.9
Financial statements
Revenue101112139$6.5B in 2025+29% since 2019Operating income101112139$1.8B in 2025+106% since 2019Net income101112139$929.5M in 2025+143% since 2019
Revenue91516$1.3B in Q2 FY2026−80% since Q4 FY2025Operating income1516$228.1M in Q2 FY2026−72% since Q1 FY2026Net income1516$45.5M in Q2 FY2026−91% since Q1 FY2026
Every line of the income statement as filed: the last 3 fiscal years, latest first.9
Period ending
2025-12-31
2024-12-31
2023-12-31
Customer revenues
$6.5B
$5.3B
$5.3B
Other revenues
$119.4M
$172.2M
$157.6M
Total Operating Revenues
$6.6B
$5.5B
$5.5B
Cost of energy
$1.6B
$1.1B
$1.5B
Operation and maintenance
$1.7B
$1.5B
$1.5B
Depreciation and amortization
$1.2B
$1.0B
$908.2M
Loss on impairment of assets
$700.0K
$6.1M
$0
Loss (gain) on sale of assets, net
-$100.0K
$2.9M
$2.9M
Other taxes
$344.1M
$300.0M
$270.6M
Total Operating Expenses
$4.8B
$4.0B
$4.2B
Operating Income
$1.8B
$1.5B
$1.3B
Interest expense, net
-$639.0M
-$517.2M
-$489.6M
Other, net
$20.1M
$64.5M
$8.0M
Total Other Deductions, Net
-$618.9M
-$452.7M
-$481.6M
Income before Income Taxes
$1.2B
$1.0B
$813.9M
Income Taxes
$203.8M
$158.1M
$139.5M
Net Income
$1.0B
$844.7M
$674.4M
Net income (loss) attributable to noncontrolling interest
$83.1M
$84.3M
-$39.9M
Net Income attributable to NiSource
$929.5M
$760.4M
$714.3M
Preferred dividends
$0
-$6.7M
-$42.8M
Preferred redemption premium
$0
$14.0M
$9.8M
Net Income Available to Common Shareholders
$929.5M
$739.7M
$661.7M
Basic Earnings Per Share
$1.96
$1.63
$1.59
Diluted Earnings Per Share
$1.95
$1.62
$1.48
Average common shares outstanding - Basic
472.9M shares
454.2M shares
416.1M shares
Diluted Average Common Shares
474.5M shares
456.0M shares
447.9M shares
No quarter-by-quarter statement was filed.
Total assets101112139$35.9B in 2025+58% since 2019Shareholders’ equity17101112139$9.5B in 2025+58% since 2019Cash101112139$110.1M in 2025−21% since 2019
Total assets1516$37.5B in Q2 FY2026+5% since Q1 FY2025Shareholders’ equity1516$9.6B in Q2 FY2026+1% since Q1 FY2025Cash1516$70.0M in Q2 FY2026−36% since Q1 FY2025
Every line of the balance sheet as filed: the last 5 fiscal years (annual) or 5 quarters (quarterly), latest first.9
Period ending
2025-12-31
2024-12-31
2023-12-31
2023-11-30
2022-12-31
Plant
$38.1B
$34.2B
Accumulated depreciation and amortization
-$9.4B
-$8.7B
Net Property, Plant and Equipment
$28.7B
$25.5B
Unconsolidated affiliates
$8.1M
$6.5M
Available-for-sale debt securities (amortized cost of $145.8 and $91.9, allowance for credit losses of $0.0 and $0.1, respectively)
$146.1M
$86.7M
Other investments
$118.6M
$85.5M
Total Investments and Other Assets
$272.8M
$178.7M
Cash and cash equivalents
$110.1M
$156.6M
$2.2B
Restricted cash
$25.6M
$42.0M
$35.7M
Accounts receivable
$1.2B
$987.9M
Allowance for credit losses
-$40.6M
-$23.7M
Accounts receivable, net
$1.2B
$964.2M
Gas inventory
$252.0M
$179.6M
Materials and supplies, at average cost
$189.0M
$173.3M
Electric production fuel, at average cost
$8.5M
$36.2M
Exchange gas receivable
$66.0M
$45.7M
Regulatory assets
$274.2M
$319.9M
Other Assets
$149.3M
$138.5M
Prepayments and other
$105.0M
$24.2M
Total Current Assets
$2.4B
$2.1B
Regulatory assets
$2.2B
$2.2B
Goodwill
$1.5B
$1.5B
Deferred charges and other
$809.4M
$432.0M
Total Other Assets
$4.5B
$4.1B
Total Assets
$35.9B
$31.8B
$31.1B
Common stock - $0.01 par value, 750,000,000 shares authorized; 478,432,058 and 469,822,472 shares outstanding, respectively
$4.8M
$4.7M
Treasury stock
-$99.9M
-$99.9M
Additional paid-in capital
$9.9B
$9.5B
Retained deficit
-$315.2M
-$711.7M
Accumulated other comprehensive loss
-$6.2M
-$30.4M
Total NiSource Stockholders' Equity
$9.5B
$8.7B
Noncontrolling interest in consolidated subsidiaries
$2.2B
$2.0B
Total Stockholders Equity
$11.7B
$10.7B
$10.1B
$7.9B
Long-term debt, excluding amounts due within one year
$15.5B
$12.1B
Total Capitalization
$27.1B
$22.7B
Current portion of long-term debt
$19.7M
$1.3B
Short-term borrowings
$736.0M
$604.6M
Accounts payable
$1.1B
$863.1M
Customer deposits and credits
$283.4M
$268.8M
Taxes accrued
$228.8M
$173.4M
Interest accrued
$206.2M
$157.0M
Asset retirement obligations
$55.0M
$84.6M
Exchange gas payable
$125.4M
$91.8M
Regulatory liabilities
$260.1M
$150.5M
Accrued compensation and employee benefits
$246.8M
$268.2M
Other accruals
$171.5M
$170.2M
Total Current Liabilities
$3.5B
$4.1B
Deferred income taxes
$2.5B
$2.3B
Accrued liability for postretirement and postemployment benefits
$153.1M
$207.5M
Regulatory liabilities
$1.5B
$1.4B
Asset retirement obligations
$781.9M
$698.6M
Other noncurrent liabilities
$335.2M
$313.0M
Total Other Liabilities(1)
$5.3B
$4.9B
Total Capitalization and Liabilities
$35.9B
$31.8B
Amortized Cost
$145.8M
$91.9M
Allowance for Credit Loss
$0
-$100.0K
Common stock, par value
$0.01
$0.01
Common stock, shares authorized
750.0M shares
750.0M shares
Common stock, shares outstanding
478.4M shares
469.8M shares
Preferred Stock, Par or Stated Value Per Share
$0.01
$0.01
Finance Lease, Liability, Payment, Due
$497.9M
Period ending
2025-12-31
2024-12-31
2023-12-31
2023-11-30
2022-12-31
Plant
$38.1B
$34.2B
Accumulated depreciation and amortization
-$9.4B
-$8.7B
Net Property, Plant and Equipment
$28.7B
$25.5B
Unconsolidated affiliates
$8.1M
$6.5M
Available-for-sale debt securities (amortized cost of $145.8 and $91.9, allowance for credit losses of $0.0 and $0.1, respectively)
$146.1M
$86.7M
Other investments
$118.6M
$85.5M
Total Investments and Other Assets
$272.8M
$178.7M
Cash and cash equivalents
$110.1M
$156.6M
$2.2B
Restricted cash
$25.6M
$42.0M
$35.7M
Accounts receivable
$1.2B
$987.9M
Allowance for credit losses
-$40.6M
-$23.7M
Accounts receivable, net
$1.2B
$964.2M
Gas inventory
$252.0M
$179.6M
Materials and supplies, at average cost
$189.0M
$173.3M
Electric production fuel, at average cost
$8.5M
$36.2M
Exchange gas receivable
$66.0M
$45.7M
Regulatory assets
$274.2M
$319.9M
Other Assets
$149.3M
$138.5M
Prepayments and other
$105.0M
$24.2M
Total Current Assets
$2.4B
$2.1B
Regulatory assets
$2.2B
$2.2B
Goodwill
$1.5B
$1.5B
Deferred charges and other
$809.4M
$432.0M
Total Other Assets
$4.5B
$4.1B
Total Assets
$35.9B
$31.8B
$31.1B
Common stock - $0.01 par value, 750,000,000 shares authorized; 478,432,058 and 469,822,472 shares outstanding, respectively
$4.8M
$4.7M
Treasury stock
-$99.9M
-$99.9M
Additional paid-in capital
$9.9B
$9.5B
Retained deficit
-$315.2M
-$711.7M
Accumulated other comprehensive loss
-$6.2M
-$30.4M
Total NiSource Stockholders' Equity
$9.5B
$8.7B
Noncontrolling interest in consolidated subsidiaries
$2.2B
$2.0B
Total Stockholders Equity
$11.7B
$10.7B
$10.1B
$7.9B
Long-term debt, excluding amounts due within one year
$15.5B
$12.1B
Total Capitalization
$27.1B
$22.7B
Current portion of long-term debt
$19.7M
$1.3B
Short-term borrowings
$736.0M
$604.6M
Accounts payable
$1.1B
$863.1M
Customer deposits and credits
$283.4M
$268.8M
Taxes accrued
$228.8M
$173.4M
Interest accrued
$206.2M
$157.0M
Asset retirement obligations
$55.0M
$84.6M
Exchange gas payable
$125.4M
$91.8M
Regulatory liabilities
$260.1M
$150.5M
Accrued compensation and employee benefits
$246.8M
$268.2M
Other accruals
$171.5M
$170.2M
Total Current Liabilities
$3.5B
$4.1B
Deferred income taxes
$2.5B
$2.3B
Accrued liability for postretirement and postemployment benefits
$153.1M
$207.5M
Regulatory liabilities
$1.5B
$1.4B
Asset retirement obligations
$781.9M
$698.6M
Other noncurrent liabilities
$335.2M
$313.0M
Total Other Liabilities(1)
$5.3B
$4.9B
Total Capitalization and Liabilities
$35.9B
$31.8B
Amortized Cost
$145.8M
$91.9M
Allowance for Credit Loss
$0
-$100.0K
Common stock, par value
$0.01
$0.01
Common stock, shares authorized
750.0M shares
750.0M shares
Common stock, shares outstanding
478.4M shares
469.8M shares
Preferred Stock, Par or Stated Value Per Share
$0.01
$0.01
Finance Lease, Liability, Payment, Due
$497.9M
Cash from operations101112139$2.4B in 2025+49% since 2019Capital spending101112139$2.8B in 2025+54% since 2019Free cash flow101112139-$420.0M in 2025+92% since 2019Dividends paid101112139$530.4M in 2025+78% since 2019Share buybacks17$0 in 2020
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 3 fiscal years, latest first.9
Period ending
2025-12-31
2024-12-31
2023-12-31
Net Income
$1.0B
$844.7M
$674.4M
Depreciation and amortization
$1.2B
$1.0B
$908.2M
Deferred income taxes and investment tax credits
$235.8M
$168.0M
$134.1M
Stock compensation expense and 401(k) profit sharing contribution
$50.9M
$43.6M
$33.5M
Payments for asset retirement obligations
-$73.0M
-$72.5M
-$41.6M
Other adjustments
$24.8M
-$49.9M
-$15.0M
Accounts receivable
-$273.4M
-$101.5M
$184.1M
Gas storage and other inventories
-$60.3M
$102.0M
$233.9M
Accounts payable
$131.8M
$71.5M
-$171.8M
Exchange gas receivable/payable
$135.8M
-$133.5M
$126.5M
Other accruals
$67.9M
$9.5M
-$102.9M
Prepayments and other current assets
-$37.3M
-$75.9M
$36.7M
Regulatory assets/liabilities
$55.7M
-$8.7M
-$26.2M
Postretirement and postemployment benefits
-$46.1M
-$64.3M
-$22.0M
Deferred charges and other noncurrent assets
-$33.5M
-$20.8M
-$10.1M
Other noncurrent liabilities and deferred credits
$3.0M
$26.1M
-$6.7M
Net Cash Flows from Operating Activities
$2.4B
$1.8B
$1.9B
Capital expenditures
-$2.8B
-$2.6B
-$2.6B
Cost of removal
-$188.3M
-$166.8M
-$160.8M
Purchases of available-for-sale securities
-$93.9M
-$17.8M
-$42.8M
Sales of available-for-sale securities
$39.3M
$93.2M
$39.9M
Milestone and final payments to renewable generation asset developers
-$1.1B
-$482.0M
-$761.4M
Advanced deposits for project costs
-$373.8M
-$29.0M
$0
Other investing activities
-$26.4M
$3.4M
-$700.0K
Net Cash Flows used for Investing Activities
-$4.5B
-$3.2B
-$3.6B
Proceeds from issuance of long-term debt
$3.4B
$2.2B
$1.5B
Repayments of finance lease obligations
-$22.0M
-$25.6M
-$33.1M
Repayments of Long-Term Debt
-$1.3B
$0
$0
Repayment of short term credit agreements
$0
-$1.6B
$0
Issuance of short term credit agreements
$0
$0
$650.0M
Net change in commercial paper and other short-term borrowings
$131.4M
-$794.0M
$636.4M
Issuance of common stock, net of issuance costs
$312.1M
$612.6M
$12.9M
Redemption of preferred stock
$0
-$486.1M
-$393.9M
Preferred stock redemption premium
$0
-$14.0M
-$6.2M
Payment of obligation to renewable generation asset developer
$0
$0
-$347.2M
Equity costs, premiums and other debt related costs
-$26.8M
-$67.3M
-$30.2M
Contributions from NIPSCO and GenCo minority interest holders
-$231.4M
-$99.5M
-$2.2B
Distributions to NIPSCO minority interest holders
-$74.6M
-$50.3M
$0
Contributions from tax equity partners
$0
$0
$240.9M
Distributions to tax equity partners
-$14.2M
-$16.1M
-$14.1M
Dividends paid - common stock
-$530.4M
-$481.0M
-$413.5M
Dividends paid - preferred stock
$0
-$8.2M
-$43.8M
Contract liability payment
$0
$0
-$66.6M
Net Cash Flows (used for) from Financing Activities
$2.1B
-$651.0M
$3.8B
Change in cash, cash equivalents and restricted cash
NiSource sits at the top of its group. 40 entities, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.
BAY STATE GAS COMPANY Subsidiary · Merrillville, Indiana, United States
COLUMBIA GAS OF KENTUCKY, INC. Subsidiary · Lexington, Kentucky, United States
COLUMBIA GAS OF MARYLAND, INC. Subsidiary · Merrillville, Indiana, United States
Columbia Gas of Ohio Receivables Corporation Subsidiary · Delaware, United States
COLUMBIA GAS OF OHIO, INC. Subsidiary · Merrillville, Indiana, United States
Columbia Gas of Pennsylvania Receivables Corporation Subsidiary · Delaware, United States
COLUMBIA GAS OF PENNSYLVANIA, INC. Subsidiary · Canonsburg, Pennsylvania, United States
COLUMBIA GAS OF VIRGINIA, INC. Subsidiary · Chester, Virginia, United States
Dunns Bridge Solar Center, LLC Subsidiary · Delaware, United States
Dunn’s Bridge I Solar Generation LLC Subsidiary · Delaware, United States
Fairbanks Solar Energy Center LLC Subsidiary · Delaware, United States
Generation Holdings I LLC Subsidiary · Indiana, United States
Generation Holdings II LLC Subsidiary · Delaware, United States
Gibson Solar, LLC Subsidiary · Delaware, United States
Indiana Crossroads Solar Generation LLC Subsidiary · Delaware, United States
Indiana Crossroads Wind Farm LLC Subsidiary · Delaware, United States
Indiana Crossroads Wind Generation LLC Subsidiary · Delaware, United States
Lake Erie Land Company Subsidiary · Indiana, United States
Meadow Lake Solar Park LLC Subsidiary · Delaware, United States
NIPSCO Accounts Receivable Corporation Subsidiary · Indiana, United States
NIPSCO Generation LLC Subsidiary · Indiana, United States
NIPSCO Holdings I LLC Subsidiary · Indiana, United States
NIPSCO Holdings II LLC Subsidiary · Delaware, United States
NiSource Corporate Group, LLC Subsidiary · Delaware, United States
NISOURCE CORPORATE SERVICES COMPANY Subsidiary · Merrillville, Indiana, United States
and 8 more
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What NiSource reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
Discussed below are the principal properties held by us and our subsidiaries as of December 31, 2025.
Refer to Item 1, "Business - Columbia Operations," of this report for further information on Columbia Operations properties.
The rest of Item 2
Refer to Item 1, "Business - NIPSCO Operations," of this report for further information on NIPSCO Operations properties.
Corporate and Other Operations
We own the Southlake Complex, our 325,000 square foot headquarters building located in Merrillville, Indiana.
Character of Ownership
Our principal properties and our subsidiaries' principal properties are free from encumbrances, subject to minor exceptions, none of which are of such a nature as to impair substantially the usefulness of such properties. Many of our subsidiary offices in the various communities we serve are occupied under leases. All properties are subject to routine liens for taxes, assessments and undetermined charges (if any) incidental to construction. It is our practice to regularly pay such amounts, as and when due, unless contested in good faith. In general, the electric lines, gas pipelines and related facilities are located on land not owned by us or our subsidiaries, but are covered by necessary consents of various governmental authorities or by appropriate rights obtained from owners of private property. We do not, however, generally have specific easements from the owners of the property adjacent to public highways over, upon or under which our electric lines and gas distribution pipelines are located. At the time each of the principal properties was purchased, a title search was made. In general, no examination of titles as to rights-of-way for electric lines, gas pipelines or related facilities was made, other than examination, in certain cases, to verify the grantors’ ownership and the lien status thereof.
NiSource was founded in 1912 as the Northern Indiana Public Service Company, which merged with several other companies to become the Columbia Gas and Electric Corporation. Under the Public Utility Holding Company Act of 1935, Columbia was forced to reorganize its subsidiaries and eventually spun off its electric utilities, becoming the Columbia Gas System. In 2000, NiSource merged with Columbia Energy Group, but in 2015, NiSource was spun off from Columbia Pipeline Group. The next year, Columbia Pipeline Group was acquired by TransCanada Corporation, while the Columbia Gas distribution companies remained with NiSource.
NiSource's natural gas utilities provide domestically produced supplies of natural gas to residential, commercial and industrial customers via nearly 60,000 miles of pipeline and related facilities in six states: Indiana, Kentucky, Maryland, Ohio, Pennsylvania and Virginia.
NiSource provides electric energy to nearly 500,000 customers, all located in northern Indiana. NiSource's electric operations include power generation, transmission and local distribution, as well as wholesale and electric transmission transactions. NiSource uses both traditional and renewable generation sources, including natural gas, hydroelectric, wind, and coal generated supplies, providing a total system operating net capability of more than 3,000 megawatts.
NiSource has had a climate change policy in place since 2009.
In 2015, NiSource was named to the Dow Jones Sustainability—North America Index for the second year in a row and for the ninth time since 1999.
Read the full text
Internal organization
NiSource operates six local utilities in its service region:
In December 2011, the progressive activist group Public Campaign criticized NiSource for spending $1.83 million on lobbying and not paying any taxes during 2008–2010, instead getting $227 million in tax rebates, despite making a profit of $1.4 billion across those three years. Public Campaign's data is aggregated for all years and does not show annual data. Public Campaign further lambasted NiSource for increasing executive pay by 33% to $11.2 million in 2010 for its top five executives. One rule NiSource, among other companies, benefited from was a bonus depreciation rule that lowered the federal tax expense.
NiSource responded by stating: "This law, enacted by Congress, encouraged companies like NiSource to accelerate capital investments to spur economic recovery by permitting portions of these investments to be deducted at an accelerated rate. Only the timing of the deductions was changed, and not the amount that could be deducted. This means our income tax expense will likely be higher in the future."
2026 Northwest Indiana power outage
In August 2026, over 360,000 customers of NiSource's subsidiary NIPSCO lost power following a deadly derecho storm, tornadoes, and historic levels of flooding. Nearly two weeks after the outage began, about 20,000 customers remained without power, largely in Gary, Indiana. NIPSCO's perceived slow response time drew criticism from Gary's mayor, and from Indiana's governor, who called for an investigation into NIPSCO's response.
A class action lawsuit was filed against NiSource in August 2026 claiming that NIPSCO failed to maintain trees in power line rights of way after it took more than 11 days to restore power to communities near Gary, Indiana after strong thunderstorms and flooding hit the area, although NIPSCO stated they had more than doubled spend on vegetation management in the last decade. Other customers reported inadequate communication from NIPSCO on power restoration timelines after the storms, particularly in lower-income areas.
Feb 11, 2026Reported quarterly or annual results96
Oct 29, 2025Reported quarterly or annual results100
Aug 6, 2025Reported quarterly or annual results102
May 7, 2025Reported quarterly or annual results104
Feb 12, 2025Reported quarterly or annual results105
Oct 30, 2024Reported quarterly or annual results106
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
424 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 80 major events, 195 insider forms, 24 large holders, 105 other. The latest 20:
29 open-market trades by officers, directors and large owners since October 2021: 1 buys and 28 sales. Grants, option exercises and gifts are left out.
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
From the cover page of the 10-K filed Feb 11, 2026 (Section 12(b) of the Exchange Act).18
Risk factors and legal proceedings
The risks NiSource names in Item 1A of its 10-K filed Feb 11, 2026: 41 risks under these headings, as written.18
OPERATIONAL RISKS
FINANCIAL, ECONOMIC AND MARKET RISKS
LITIGATION, REGULATORY AND LEGISLATIVE RISKS
DATA CENTER OPERATIONS AND STRATEGY RISKS
We may not be able to execute our business plan or growth strategy, including utility infrastructure investments, or business opportunities.
Our distribution, transmission and generation activities involve a variety of inherent hazards and operating risks, including potential public safety risks.
We currently conduct and may conduct in the future certain operations through a JV arrangement involving third- party investors that may result in operational impasses or litigation, including business delays as a result of such arrangements.
Failure to adapt to advances in technology, including alternative energy sources, and changes in laws or regulations to support such advances in technology or alternative energy sources, and our inability to manage such related costs could make us less competitive.
Increased dependency on technology may hinder our business operations and adversely affect our financial condition and results of operation if such technology fails.
Aging infrastructure may lead to disruptions in operations and increased capital expenditures and maintenance costs.
We may be unable to obtain insurance on acceptable terms or at all, and the insurance coverage we do obtain may not provide protection against all significant losses.
Aspects of the implementation of our electric generation strategy, including the timing of the retirement of our coal generation units or the addition of new generation resources, may be delayed and may not achieve intended results.
The other 33 risks
Our capital projects and programs subject us to construction and supply risks, and are subject to regulatory oversight, including requirements for permits, approvals and certificates from various governmental agencies.
A significant portion of the gas and electricity we sell is used by residential and commercial customers for heating and air conditioning. Accordingly, fluctuations in weather, gas and electricity commodity costs, and economic conditions impact customer demand.
Fluctuations in the price of energy commodities or their related transportation costs, or an inability to obtain an adequate, reliable and cost- effective fuel supply may impact our ability to meet customer demand.
Failure to attract, retain or re-skill an appropriately qualified workforce, and maintain good labor relations, could adversely impact safety, service reliability, and customer satisfaction.
If we cannot effectively manage new initiatives and organizational changes, we will be unable to address the opportunities and challenges presented by our strategy and the business and regulatory environment.
Actions of activist stockholders could negatively affect our business and stock price and cause us to incur significant expenses.
We outsource certain business functions to third-party suppliers and service providers, and may be impacted by substandard performance or quality by third parties.
A cyber-attack or security breach on any of our or certain third-party technology systems, including but not limited to information systems, infrastructure, software and hardware, upon which we rely may adversely affect our ability to operate, could lead to a loss or misuse of confidential and proprietary information, or potential liability.
Compliance with and changes in cybersecurity requirements have a cost and operational impact on our business, and failure to comply with such laws and regulations could adversely impact our reputation, results of operations, financial condition and/or cash flows.
The impacts of natural disasters, acts of terrorism, acts of war, civil unrest, accidents, public health emergencies or other catastrophic events may disrupt operations and reduce the ability to service customers.
We are exposed to significant reputational risks, which make us vulnerable to a loss of cost recovery, increased litigation and negative public perception.
The physical impacts of climate change and the transition to a lower carbon future are impacting our business and could materially adversely affect our results of operations.
We are subject to operational and financial risks and liabilities associated with the implementation and efforts to achieve our carbon emission reduction goal.
We have substantial indebtedness which could adversely affect our financial condition.
A drop in our credit ratings could adversely impact our cash flows, results of operation, financial condition and liquidity.
Adverse economic and market conditions, including increases in inflation or interest rates, recession or changes in investor sentiment could materially and adversely affect our business, results of operations, cash flows, financial condition and liquidity.
Most of our revenues are subject to regulation and are exposed to the impact of regulatory rate reviews and proceedings.
The actions of regulators and legislators could result in outcomes that may adversely affect our earnings and liquidity.
Our business operations are subject to economic conditions in certain industries.
We are exposed to risk that customers will not remit payment for delivered energy or services, and that suppliers or counterparties will not perform under various financial or operating agreements.
We are a holding company and are dependent on cash generated by our subsidiaries to meet our debt obligations and pay dividends on our stock.
Capital market performance and other factors may decrease the value of benefit plan assets, which then could require significant additional funding and impact earnings.
We have significant goodwill. Any future impairments of goodwill could result in a significant charge to earnings in a future period and negatively impact our compliance with certain covenants under financing agreements.
The outcome of legal and regulatory proceedings, investigations, inquiries, claims and litigation related to our business operations may have a material adverse effect on our results of operations, financial position or liquidity.
Our businesses are subject to various federal, state and local laws, regulations, tariffs and policies and a failure to comply with changes in, or new or different interpretations of, such laws, regulations, tariffs and policies could have an adverse impact on our business.
Our businesses are regulated under numerous environmental laws and regulations. The cost of compliance with these laws and regulations, and changes to or additions to, or reinterpretations of the laws and regulations, could be significant, and the cost of compliance may not be recoverable. Liability from the failure to comply with existing or changed laws and regulations could have a material adverse effect on our business, results of operations, cash flows and financial condition.
Changes in tax laws or the interpretation thereof and challenges to tax positions could adversely affect our financial results.
Data center growth in our service territories, including a focus on northern Indiana, while providing growth opportunities that enhance our business strategy, provide significant financial, operational, and regulatory risks that must be effectively managed.
Our construction of the Contract Assets and any generation or transmission assets we develop to support future data center contracts involves significant risks. Construction delays, cost overruns or performance issues with the Contract Assets could reduce our returns under the ADS Contract or other future data center contracts and could require us to obtain additional financing.
We will be required to obtain significant additional financing in order to construct the Contract Assets and any generation or transmission assets we develop to support future data center contracts. Such financing may not be available on favorable terms, if at all.
Pursuit of our partnership with ADS creates significant opportunity costs and reduces our strategic and financial flexibility in the near term.
The return structure and risk profile of ADS Contract and any future data center contract will differ from those of NIPSCO’s traditionally regulated utility operations.
Our partnership with ADS exposes us to significant customer concentration risk.
Legal proceedings
For a description of our legal proceedings, see Note 19, "Other Commitments and Contingencies - C. Legal Proceedings," in the Notes to Consolidated Financial Statements.
