NiSource is the main energy source for resourceful Americans living in the Midwest, the South, and New England. The company's utility subsidiaries distribute natural gas to about 3.5 million customers in seven states. NiSource also generates, transmits, and distributes power to some 500,000 customers in 20 counties in its home state through its largest subsidiary, Northern Indiana Public Service Company (NIPSCO). NiSource owned one of the largest natural gas transmission and underground storage systems in the US, including a more than 15,000-mile interstate pipeline system. However, to become a pure play utility group, it spun off this business in 2015.
Through subsidiary Columbia Energy, NiSource owns and operates six distribution subsidiaries that provide natural gas to 2.2 million residential, commercial, and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. NiSource also distributes natural gas in Indiana through NIPSCO. Columbia Gas of Massachusetts distributes natural gas to end users in Massachusetts.
The energy holding company operates in two major business areas: gas distribution and electric generation, transmission, and distribution. The company's gas distribution operations segment owns and operates 59,000 miles of pipelines and related facilities.
The Gas Distribution Operations segment, the largest, provides natural gas service and transportation for residential, commercial and industrial customers in Indiana, Kentucky, Maryland, Massachusetts, Ohio, Pennsylvania, and Virginia. It accounted for 61% of NiSource's total revenue in 2015.
The Electric Operations segment (31%) provides electric service in 20 counties in the northern part of Indiana.
Corporate and Other accounted for 8%.
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The company's utility subsidiaries distribute natural gas to about 3.8 million customers in seven states within a corridor that runs from the US Gulf Coast through the Midwest to New England.
The company distribute natural gas to approximately 812,000 customers in northern Indiana through NIPSCO.
NiSource generates, transmits and distributes electricity through its NIPSCO to 463,000 customers in 20 counties in the northern part of Indiana and engages in wholesale and transmission transactions.
In 2015 NiSource's net revenues decreased by 28% due the discontinued operation of its Columbia Pipeline Group Operations segment.
Net income declined due to the increase in operation and maintenance costs, and higher depreciation and amortization expenses.
NiSource's cash from operating activities increased by 10% due to the changes in inventories and accounts receivable.
NiSource believes that its long-term success lies in developing a portfolio that balances creating more efficiencies in its regulated utility operations while expanding its higher-growth gas transmission and storage businesses.
In 2015 NiSource spun off its pipelines into a separately traded public company. The new company, Columbia Pipeline Group, included 15,000 miles of natural gas pipeline and 300 billion cu. ft. of storage, plus other midstream assets in the Marcellus and Utica shales.
The company’s Columbia Transmission’s operations were located in Delaware, Kentucky, Maryland, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Virginia, and West Virginia, and Columbia Gulf’s operations are located in Kentucky, Louisiana, Mississippi, Tennessee, Texas, and Wyoming.
NiSource will focus its business strategy on its core, rate-regulated asset-based businesses with most of its operating income generated from the rate-regulated businesses. NiSource’s utilities continue to move forward on core infrastructure and environmental investment programs supported by regulatory and customer initiatives across all seven states in which it operates.
Progress also continued on two major electric transmission projects designed to enhance region-wide system flexibility and reliability. Right-of-way acquisition, permitting and substation construction are under way for both projects. Line and tower construction is expected to begin in 2016. These projects involve an investment of $450 million for NIPSCO and are anticipated to be in service by the end of 2018