NiSource Inc. has secured a 19.9% equity interest in its NIPSCO subsidiary from Blackstone Infrastructure Partners, marking a significant investment aimed at supporting NIPSCO's transition to renewable energy and enhancing service reliability in Indiana.

Target Information

NiSource Inc. (NYSE: NI), a major utility provider in the United States, has announced the successful issuance of a 19.9% indirect equity interest in its Northern Indiana Public Service Company LLC (NIPSCO) subsidiary to an affiliate of Blackstone Infrastructure Partners. This strategic transaction allows Blackstone Infrastructure to secure a non-controlling equity interest in NIPSCO Holdings II LLC, which holds all the equity interests of NIPSCO, with NiSource retaining an 80.1% share.

Industry Overview in Indiana

NIPSCO operates within one of the most favorable utility jurisdictions in the U.S. Indiana is experiencing a significant energy transition, supported by local regulations promoting utility-owned renewable generation. As the state shifts from traditional fossil fuels to more sustainable energy sources, it provides various economic benefits including job creation and investment opportunities in the renewable sector.

Recent trends in the energy market indicate a growing commitment among utilities in Indiana to reduce their carbon footprints, with NIPSCO leading the charge. The company aims to completely eliminate coal-fired generation by 2028,