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 via 58,000 miles of pipeline. NiSource also generates, transmits, and distributes power to some 458,000 customers in 20 counties in its home state through its largest subsidiary, Northern Indiana Public Service Company (NIPSCO). NiSource owns one of the largest natural gas transmission and underground storage systems in the US (capable of storing 639 billion cu. ft. of natural gas), including a 15,000-mile interstate pipeline system.
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 to 795,000 in Indiana. Columbia Gas of Massachusetts, distributes natural gas to 298,000 end users in Massachusetts. Several of NiSource's utilities participate in customer choice programs in states with deregulated energy markets. CNS Microwave operates 75 microwave towers in Kentucky, Louisiana, Maryland, Mississippi, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.
The energy holding company operates in three major business areas: gas distribution; gas transmission and storage; and electric generation, transmission, and distribution. It also provides retail services, as well as telecommunications infrastructure for wireless applications.
NiSource's gross revenues dropped by almost 4% in 2011, primarily due lower gas distribution sales which were dragged down by lower gas commodity prices. However, net income was up 6% thanks to lower depreciation and amortization costs and lower interest and other debt charges.
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.
To boost its gas transmission and storage assets and take advantage of the burgeoning shale gas market, in 2012 the company formed joint ventures with Hilcorp Energy to develop gas production and midstream infrastructure in the Utica shale in Northeastern Ohio and Western Pennsylvania. In 2010 the company initiated three separate projects (for a total of $80 million) in the Majorsville, Pennsylvania area to aggregate Marcellus Shale gas production for downstream transmission. – less