NiSource Inc. is reporting a net income in the second quarter of 2010 of $28.1 million or 10 cents basic earnings per share, compared to a net loss in the year-ago period of $4.8 million or 1 cent basic earnings per share.

“We’re encouraged by our performance in the first half of the year and our team remains sharply focused on delivering on our commitments to all of our stakeholders over the balance of 2010,” NiSource President and CEO Robert Skaggs Jr. said in a statement released on Tuesday.

“NiSource’s second quarter results benefited from solid performance across all of its business units,” the company stated. “In particular, increased electric industrial margins at Northern Indiana Public Service Company, as well as revenue gains from infrastructure and regulatory programs at the company’s natural gas utilities, contributed to the improved results compared to last year.”

•Gas distribution: $35.9 million ($7.5 million in the year-ago period). The company attributed the improvement to off-system sales and regulatory and service programs, the latter including especially Columbia Gas of Ohio’s change from a volumetric to straight fixed-variable rate design. Operating expenses were $6.5 million higher than in the year-ago period, mostly due to higher taxes and employee and administrative expenses, partially offset by lower charges due to uncollectible accounts.

•Gas transmission and storage: $74.9 million ($80.9 million in the year-ago period). Net revenues were higher, driven by increased demand margin revenues from projects placed into service in 2009, an increase in revenue from mineral rights, and fees received from a contract buyout, partially offset by decreases in revenues from shorter-term transportation and storage services.

•Electric: $48.3 million ($31.1 million in the year-ago period). The company attributed the improvement to increased industrial and residential margins, offset by higher operating expenses of $10.1 million due to higher taxes and storm damage costs.

•Corporate and other: an operating loss of $5.1 million (an operating loss of $2.1 million in the year-ago period).

•Total operating income: $154.0 million ($117.4 million in the year-ago period).

Meanwhile, two of NIPSCO’s rate cases—one an electric case, the other a natural gas case—are still pending before the Indiana Utility Regulatory Commission, while NIPSCO is preparing to file a second electric rate case later this year:

•In the first electric case, filed in 2008, NIPSCO is seeking a hike of 15.6 percent which would increase the average residential household’s average monthly bill by $12.76, from $81.68 to $94.44.

•In the natural gas case, filed in May, NIPSCO is seeking to adjust the rate structure for the first time in more than 20 years. Although the case is designed to be revenue-neutral, as proposed by the company it would still increase the average household’s monthly gas bill by 2.65 percent or $1.67.

•In the second electric case, still unfiled, NIPSCO is seeking “to reflect current operating conditions as well as modernize rates to meet its customers’ ongoing needs,” the company said.

Posted 8/4/2010