EXHIBIT 99.1
FOR IMMEDIATE RELEASE
June 2, 2008
June 2, 2008
| FOR ADDITIONAL INFORMATION | ||
| Media | Investors | |
Tom Cuddy
|
Randy Hulen | |
Director, Communications
|
Director, Investor Relations | |
(219) 647-5581
|
(219) 647-5688 | |
tcuddy@nisource.com
|
rghulen@nisource.com |
NiSource Unit Announces Purchase of Sugar Creek Generating Facility
MERRILLVILLE, Ind. – NiSource Inc. (NYSE: NI) today announced that, on Friday May 30, 2008, its
Northern Indiana Public Service Company (NIPSCO) subsidiary completed the purchase of the
535-megawatt Sugar Creek combined cycle gas turbine (CCGT) electric generating plant from Broadway
Gen Funding LLC. The purchase price for the facility, which is located in West Terre Haute, Ind.,
was approximately $330 million.
The Indiana Utility Regulatory Commission (IURC) issued an order on May 28, 2008 granting NIPSCO a
Certificate of Public Convenience and Necessity to acquire the Sugar Creek facility. NiSource
President and Chief Executive Officer Robert C. Skaggs, Jr. said NiSource is pleased the IURC acted
in a timely manner to authorize NIPSCO’s acquisition of the Sugar Creek facility. “The addition of
this plant to NIPSCO’s generating portfolio represents a significant step forward in positioning
the company to meet the increasing electricity demands of its customers in a safe, reliable and
cost-effective manner for years to come,” Skaggs said.
The IURC’s May 28 order also addressed NIPSCO’s requests to defer certain costs associated with the
purchase of the Sugar Creek facility and to implement a rate adjustment mechanism for purchased
power costs. Although the order denied those requests, the Commission stated that the proposed rate
treatment could be pursued within the context of an alternative regulatory plan (ARP), provided
NIPSCO indicates its intent to do so within 10 days of the date of the IURC’s order.
“While clearly we would have preferred that the IURC had approved the rate treatment proposed by
NIPSCO, we are encouraged by the Commission’s reference to the ARP process, and fully intend to
avail ourselves of that opportunity,” Skaggs said.
Skaggs noted that the May 28 order’s ruling on the rate treatment proposed by the company will
place near-term pressure on NIPSCO’s earnings and its ability to fully recover its purchased
power costs under the so-called benchmark test established by a 2007 regulatory settlement. “In
addition to pursuing the ARP regulatory process in a timely and responsible manner, our team will
continue to proactively manage our Indiana operations so as to serve the interests of customers and
shareholders alike. We expect to be successful in these efforts, and those underway all across
NiSource, as we continue to execute on our Path Forward strategy,” Skaggs said.
Skaggs added that NiSource is maintaining its net operating earnings (non-GAAP) outlook of $1.25 to
$1.35 per share for the 2008-2010 period. On a GAAP basis, for 2008, the lower end of the range
for basic earnings from continuing operations is $1.23 per share due to transition costs associated
with the amended IBM agreement. NiSource will provide a full business update when it reports
second quarter results in early August of this year.
-more-