* In September 2025, NiSource Inc. received approval from the Indiana Utility Regulatory Commission for NIPSCO Generation LLC (GenCo) to own, build, and manage generation assets to meet surging data center demand in Northern Indiana.
* This approval separates the costs of serving new data centers from existing NIPSCO retail customers, streamlining the company's ability to adapt to changing energy market needs while protecting broader customer interests.
* We'll explore how GenCo's regulatory approval strengthens NiSource's flexibility in serving large-scale energy users and impacts the company's investment outlook.
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NiSource Investment Narrative Recap
For anyone considering NiSource, the big picture hinges on whether accelerated demand from data centers and urban growth can offset the risks tied to heavy gas infrastructure investment. The recent approval by the Indiana Utility Regulatory Commission for GenCo offers NiSource enhanced flexibility to serve large-scale users, though the near-term impact on the key catalyst, securing timely regulatory support for capital deployment, appears incremental, while the principal risk of capital expenditure pressures remains unchanged.
Of the recent corporate actions, the August 2025 quarterly earnings report stands out, highlighting rising revenues and net income. This is relevant as it underscores NiSource's ability to capitalize on new load growth, which is now further supported by GenCo's approval, aligning well with the company's core catalyst of monetizing rate base expansion.
However, it's important to note that while GenCo addresses some regulatory hurdles, higher spending could still ...
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NiSource's outlook anticipates $6.8 billion in revenue and $1.1 billion in earnings by 2028. This relies on a 3.5% annual revenue growth rate and a $215 million increase in earnings from the current level of $884.6 million.
Uncover how NiSource's forecasts yield a $43.91 fair value, in line with its current price.
Exploring Other Perspectives
Simply Wall St Community members' fair value estimates for NiSource range from US$33.80 to US$43.91, across three individual perspectives. These valuations reflect wide differences in how market participants weigh future growth against elevated capital spending risks; you can explore more investor viewpoints here.
Explore 3 other fair value estimates on NiSource - why the stock might be worth 22% less than the current price!