Merrillville-based NiSource has received Indiana Utility Regulatory Commission approval for its NIPSCO Generation declination petition.

NIPSCO Generation (GenCo) is designed to own, build and manage generation assets to serve the growing data center industry in Northern Indiana. The approval unlocks GenCo’s ability to protect existing NIPSCO retail customers and best serve data center and other large load customers.

GenCo was created to shield NIPSCO’s existing retail customers from costs associated with serving new data center customers. By operating as a separate entity, GenCo is positioned to meet the demands of new data center customers quickly and flexibly. GenCo allows for quick adaptability as energy markets evolve.

“This is an important step forward to position Northern Indiana at the center of a fast-growing, economically essential industry,” said Lloyd Yates, NiSource president and CEO, in a press release. “The order reflects confidence in our ability to deliver safe, reliable and affordable energy solutions for our communities. It gives us the tools we need to grow responsibly while ensuring that every decision we make keeps customers front and center.”