NiSource Inc. is
reporting a net loss to common shareholders in the third quarter of $7.2
million or 2 cents, compared to a net loss to shareholders in the year-ago
period of $345.1 million or 95 cents.
results have positioned NiSource to deliver on its financial commitments for
2018,” NiSource President and CEO Joe Hamrock said in a statement released
today. “The NiSource teams continue their relentless focus on our core
commitments of safety and customer satisfaction, and our long-term
modernization programs that drive our financial results. We’ve also made
significant progress on our electric generation strategy in Indiana with the
approval of the Rosewater wind project and the filing of a second joint
venture wind project, Indiana Crossroads.”
released today a summary of costs or expenses associated with the disastrous
natural-gas explosion in September 2018 in Greater Lawrence, Mass., in a
system operated by NiSource subsidiary Columbia Gas:
--To date NiSource
has invested approximately $255-260 million for pipeline replacement. The
company maintains insurance for gas pipelines in the area of $300 million.
“The recovery of any capital investment not reimbursed through insurance
will be addressed in a future regulatory proceeding,” NiSource said. “The
outcome of such a proceeding is uncertain.”
insurance claims total $995 million to $1.02 billion But aggregate
third-party insurance coverage available for losses is only $800 million.
“Total expenses related to the incident have exceeded the total amount of
insurance coverage available under our policies,” NiSource said. The company
added, “We are not able to estimate the amount of expenses that will not be
covered by insurance, but these amounts are material to our financial
statements. Certain types of damages, expenses, or claimed costs, such as
fines or penalties, may be excluded under the policies.”
total $430-440 million. That amount “includes other incident related
expenses of approximately $388 million recorded since the Greater Lawrence
incident,” NiSource said. “Amount represents certain consulting costs,
vendor costs, claim center costs, labor, and related expenses incurred in
connection with the incident and insurance-related loss surcharges.”
--As of Sept. 30,
2019, NiSource has collected $670 million in insurance recoveries. The
company is unable to estimate either the amount or timing of additional
Income/Loss by Segment
operating loss of $48.6 million (net loss of $455.2 million in year-ago).
operating income of $140.7 million ($134.9 million in year-ago).
other: operating loss of $1.1 million (income of $4.4 million in year-ago).
income: $91 million (total operating loss of $315.9 million in year-ago).