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 3.8 million customers in seven states. NiSource also generates, transmits, and distributes power to some 460,000 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 five 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 58,414 miles of pipelines and related facilities.
Sales and Marketing
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.
In 2014 the company’s net revenue increased by 14% due to higher gas distribution sales as the result of an increase of $93.4 million for regulatory and service programs; an increase in large customer revenues of $6.5 million; higher revenues of $5.9 million due to customer growth and an increase in off-system sales of $5.6 million. In addition NiSource reported higher revenues from the recovery of storage inventory costs of $3.8 million and a settlement of $3.2 million at Columbia of Massachusetts.
In 2014 NiSource's net income decreased by 0.4% due to an increase in operation and maintenance costs and depreciation and amortization.
The company’s cash inflow decreased by 8% due lower net income and changes in working capital as a result of changes in inventories and exchange gas receivable/payable.
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, includes 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.
In recent years NiSource has also sold other non-core businesses. In 2013 Lake Erie Land, a wholly-owned subsidiary of NiSource, was pursuing the sale of the real estate assets it owns. NDC Douglas Properties, a subsidiary of NiSource Development Company, was in the process of exiting its low income housing investments. In addition, to raise cash, the company sold certain retail services business assets (warranty protection solutions and energy efficiency leasing solutions for residential and small business utility customers) to AGL Resources in 2013. The deal includes 500,000 existing customer plans in Indiana, Massachusetts, Ohio, Pennsylvania, and Kentucky. The company exited these business lines in 2013. It also sold the commercial and industrial natural gas portfolio of its unregulated natural gas marketing business that year.