Lloyd Yates, president and chief executive officer of NiSource, is confident about the utility's future.
The parent company of NIPSCO announced in its third quarter earnings report that it is extending its capital growth plan through 2033.
The company plans to spend $40 billion on capital expenditures over seven years, including $8 billion that will go toward data center investments between 2027 and 2033. The other $32 billion mostly will support infrastructure improvements.
“The extension of our long-term plan reflects the significant opportunities ahead for NiSource and our confidence in our ability to deliver,” Yates said. “Our seven-year capital plan supports critical infrastructure investments to enhance the safety, reliability and resiliency of our systems while enabling significant economic development across our footprint.”
He also acknowledged that the investments will help mitigate damage from future natural disasters, along with customer savings related to data centers.
“This year's extreme weather events have reinforced the importance of those investments, while opportunities such as Microsoft and our GenCo pipeline further strengthen the outlook,” he said. “Our signed GenCo agreements are expected to deliver approximately $1.75 billion in customer savings, positioning us to deliver industry-leading growth and long-term value for customers, communities and shareholders.”
NiSource announced a long-term energy agreement with Microsoft on Oct. 16 that will increase expected current customer savings to $1.75 billion, including savings from Amazon and Alphabet projects.
“When our Region grows, our customers share in the benefits,” said Vince Parisi, NIPSCO president and chief operating officer, in a press release. “Putting the value from data center development directly back on customers’ bills is one more way we’re turning growth into real savings for families across northern Indiana.”
Microsoft is building a new $1 billion data center complex in La Porte. Microsoft expects the first and second buildings to be complete by spring 2029, and the third by winter 2029.
The NiSource Generation Co. was created to mitigate the financial risks for customers when companies require large amounts of energy. Microsoft will fund the generation, transmission and infrastructure of the energy it needs for the data center. The agreement is expected to generate about 1,100 megawatts of added power to the grid, starting in 2028.
Data center development also is expected to save NIPSCO electric customers another $57.5 million, pending regulatory approval. Customers should receive $5 off their bills for 18 months if the plan is approved, according to a press release. The rate reduction would start 30 days after approval, and is expected to start early next year.
