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NiSource's (NI) NIPSCO Advances in Electricity Generation

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NiSource Inc.’s (NI - Free Report) unit Northern Indiana Public Service Company LLC (“NIPSCO”), as a next step of its electricity generation transition, announced its first two Indiana-based solar projects – Indiana Crossroads and Dunns Bridge I Solar – are now online. These projects will produce clean and cost-effective energy for homes and businesses across Indiana.

Focus on Renewables

NiSource projects an investment of approximately $15 billion during the 2023-2027 period, including capital investments to support the generation transition strategy.

NIPSCO plans to retire all coal-fired generation units by 2028. Currently, 100% of the excess power sales and Renewable Energy Credits from the renewable projects are returned to customers, amounting to around $60 million since 2021.

NIPSCO’s many renewable projects are presently in the process of development, which will boost the company's clean energy generation capacity. Some of the projects under construction In Indiana are Indiana Crossroads II Wind (204 megawatts (MW) wind), Dunns Bridge Solar II (435 MW solar, 75 MW of battery storage), Cavalry Solar (200 MW solar, 60 MW of battery storage) and Fairbanks Solar (250 MW solar).

Price Performance

Over the past month, shares of NI have gained 1.9% against the industry’s decline of 1.1%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank

NiSource currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Utilities’ Focus on Clean Energy

Utilities such as Duke Energy Corp. (DUK - Free Report) , Alliant Energy Corp. (LNT - Free Report) and Entergy Corp. (ETR - Free Report) have also shifted their focus to clean energy.

Duke Energy’s plan includes investments worth $40 billion for zero-carbon generation, such as solar, wind and battery storage resources, and extending the life of its nuclear fleet over the next decade. Recently, it unveiled Kentucky's largest rooftop solar facility with a generation capacity of up to 2 MW.

DUK’s long-term (three- to five-year) earnings growth rate is pegged at 6.1%. The Zacks Consensus Estimate for its 2023 sales indicates an increase of 0.9% over 2022’s reported figure.

Alliant Energy is also focused on reducing emissions from its generation portfolio. In March 2023, LNT entered into a partnership with Marshalltown YMCA-YWCA to break ground on a 500-kilowatt solar project to be built on donated land in Marshalltown.

LNT’s long-term earnings growth rate is 6.5%. The Zacks Consensus Estimate for its 2023 sales indicates an increase of 8% over 2022’s reported figure.

Entergy’s three-year capital plan includes $6 billion in generation investments during the 2023-2025 period. Recently, it partnered with ENGIE North America to develop a 350 MW industrial-scale green hydrogen plant in Entergy Texas’ service area.

ETR’s long-term earnings growth rate is 5.7%. The Zacks Consensus Estimate for its 2023 earnings per share indicates an increase of 3.9% over 2022’s reported figure.

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