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NiSource faces weaker Q2 earnings but reaffirms 2026 outlook
Regulators approved NiSource’s Amazon and Alphabet data center power agreements, with projected bill reductions of about $1.4 billion over the contracts’ lives, including savings starting as early as Q4 2026.
NiSource Inc. reported a mixed second quarter, with adjusted EPS falling to $0.16 from $0.22 a year earlier, while management reaffirmed its long term targets. The company’s guidance continues to hinge on growth increasingly tied to data center load rather than traditional rate base additions, according to Yahoo Finance.
In June, the Indiana Utility Regulatory Commission approved the original Amazon special contract and a related power purchase agreement, and in July it approved an Alphabet partnership, with load expected to ramp toward full capacity by 2030. Those two agreements are projected to return about $1.4 billion in bill reductions to NIPSCO electric customers over the life of the contracts, translating to up to $124 a year for an average residential bill, with savings potentially starting as early as the fourth quarter of 2026, the outlet said.
NiSource also pointed to demand momentum, citing 3 gigawatts of large load customers in active negotiations, another 2 gigawatts with clear line of sight, and a broader 9 gigawatt pipeline. Despite the weaker quarter, the company reaffirmed 2026 adjusted EPS guidance of $2.02 to $2.07 and its long term growth rate of 6% to 8% through 2030, as well as more than $40 million in identified cost optimization work.
Management attributed the earnings decline to higher operations and maintenance spending linked to an unusually active storm season, calling 2026 a record year for tornadoes across its service territory, plus elevated costs to keep its workforce steady during ongoing union negotiations. The company also flagged regulatory risk, including a third federal order requiring it to keep running the Schahfer coal plant, with NiSource seeking recovery of compliance costs through a FERC filing with approval sought within 60 days, according to Yahoo Finance.