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Regulatory Matters | 12 Months Ended
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Dec. 31, 2024
Regulatory Assets and Liabilities Disclosure [Abstract] |
Regulatory Matters | Regulatory Assets and Liabilities We follow the accounting and reporting requirements of ASC Topic 980, which provides that regulated entities account for and report assets and liabilities consistent with the economic effect of regulatory rate-making procedures when the rates established are designed to recover the costs of providing the regulated service and it is probable that such rates will be charged and collected from customers. Certain expenses and credits subject to utility regulation or rate determination normally reflected in income or expense are deferred on the balance sheet and are recognized in the income statement as the related amounts are included in customer rates and recovered from or refunded to customers. We assess the probability of collection for all of our regulatory assets each period. Regulatory assets were comprised of the following items:
At December 31, (in millions) | 2024 |  | 2023
Regulatory Assets |  |  |
Unrecognized pension and other postretirement benefit costs (see Note 16) | $ | 485.3 |  |  | $ | 561.6 |
Deferred pension and other postretirement benefit costs (see Note 16) | 45.3 |  |  | 59.7 |
Environmental costs (see Note 19-D.) | 42.8 |  |  | 40.6 |
Regulatory effects of accounting for income taxes (see Note 1-N. and Note 15) | 172.0 |  |  | 163.5 |
Under-recovered gas and fuel costs (see Note 1-J.) | 82.3 |  |  | 12.7 |
Depreciation | 214.9 |  |  | 201.9 |
Post-in-service carrying charges | 280.8 |  |  | 269.9 |
Safety activity costs | 203.7 |  |  | 206.6 |
DSM programs | 17.8 |  |  | 25.0 |
Retired coal generating stations | 617.0 |  |  | 682.0 |
Losses on commodity price risk programs (See Note 13) | 6.5 |  |  | 24.4 |
Deferred property taxes | 75.9 |  |  | 72.3 |
Renewable energy investments | 81.3 |  |  | 60.8 |
WAM system filing | 21.5 |  |  | — |
Customer assistance programs | 24.4 |  |  | — |
Other | 105.8 |  |  | 79.2 |
Total Regulatory Assets | $ | 2,477.3 |  |  | $ | 2,460.2 |
Less: Current Portion | 319.9 |  |  | 214.3 |
Total Noncurrent Regulatory Assets | $ | 2,157.4 |  |  | $ | 2,245.9 |
Regulatory liabilities were comprised of the following items:
At December 31, (in millions) | 2024 |  | 2023
Regulatory Liabilities |  |  |
Over-recovered gas and fuel costs (see Note 1-J.) | $ | 21.4 |  |  | $ | 144.5 |
Cost of removal (see Note 11) | 482.8 |  |  | 597.2 |
Regulatory effects of accounting for income taxes (see Note 1-N. and Note 15) | 827.0 |  |  | 849.9 |
Deferred pension and other postretirement benefit costs (see Note 16) | 40.4 |  |  | 54.0 |
Gains on commodity price risk programs (See Note 13) | 28.7 |  |  | 23.3 |
Customer assistance programs | 9.4 |  |  | 19.8 |
Off-system sales sharing | 21.4 |  |  | 19.0 |
Renewable energy investments (See Note 1-S. and Note 4) | 77.0 |  |  | 18.1 |
Rate refunds | 16.6 |  |  | 16.1 |
Other | 57.0 |  |  | 47.4 |
Total Regulatory Liabilities | $ | 1,581.7 |  |  | $ | 1,789.3 |
Less: Current Portion | 150.5 |  |  | 278.6 |
Total Noncurrent Regulatory Liabilities | $ | 1,431.2 |  |  | $ | 1,510.7 |
Regulatory assets, including under-recovered gas and fuel costs and depreciation, of approximately $671.3 million and $716.4 million as of December 31, 2024 and 2023, respectively, are not earning a return on investment. These costs are recovered over a remaining life of between 15 and 75 years. Assets: Unrecognized pension and other postretirement benefit costs. Represents the deferred other comprehensive income or loss of the actuarial gains or losses and the prior service costs or credits that arise during the period but that are not immediately recognized as components of net periodic benefit costs by certain subsidiaries that will ultimately be recovered through base rates. Deferred pension and other postretirement benefit costs. Primarily relates to the difference between defined benefit plan expense recorded by certain subsidiaries due to regulatory orders and the corresponding expense that would otherwise be recorded in accordance with GAAP. This balance is driven by Columbia of Ohio deferrals. Environmental costs. Includes certain recoverable costs related to gas plant sites, disposal sites or other sites onto which material may have migrated, the recovery of which is to be addressed in future base rates, billing riders or tracking mechanisms of certain of our subsidiaries. Regulatory effects of accounting for income taxes. Represents the deferral and under collection of deferred taxes in the rate making process. Under-recovered gas and fuel costs. Represents the difference between the costs of gas and fuel, as well as energy acquired through power purchase agreements, including NIPSCO's own renewable projects, and the recovery of such costs in revenue and is used to adjust future billings for such deferrals on a basis consistent with applicable state-approved tariff provisions. Recovery of these costs is achieved through tracking mechanisms. Depreciation. Represents differences between depreciation expense incurred on a GAAP basis and that prescribed through regulatory order. The majority of this balance is driven by Columbia of Ohio's IRP and CEP deferrals. Post-in-service carrying charges. Represents deferred debt-based carrying charges incurred on certain assets placed into service but not yet included in customer rates. The majority of this balance is driven by Columbia of Ohio's IRP and CEP deferrals. Safety activity costs. Represents the difference between costs incurred by certain of our subsidiaries in eligible safety programs in compliance with PHMSA regulations in excess of those being recovered in rates. The majority of this balance is driven by Columbia of Ohio, which began recovery in March 2023 through base rates. DSM programs. Represents costs associated with Columbia Operations and NIPSCO Operations energy efficiency and conservation programs. Costs are recovered through tracking mechanisms. Retired coal generating stations. Represents the net book value of Units 7 and 8 of Bailly Generating Station that was retired during 2018 and the net book value of Units 14 and 15 of R.M. Schahfer Generating Station retired in 2021. These amounts are currently being amortized at a rate consistent with their inclusion in customer rates. The August 2023 NIPSCO electric rate case order extends the recovery of, and on, the net book value of the stations by the end of 2034 and implements a revenue credit for the retired units. The credit is based on the difference between the year-end value of Units 14 and 15 and the most recent value established in the last base rate case proceeding or credit compliance filing. Losses on commodity price risk programs. Represents the unrealized losses related to certain of our subsidiary's commodity price risk programs. These programs help to protect against the volatility of commodity prices and these amounts are collected from customers through their inclusion in customer rates. Deferred property taxes. Represents the deferral and under collection of property taxes in the rate making process for Columbia of Ohio and is driven by the IRP and CEP deferrals. Renewable energy investments. Represents the regulatory deferral of renewable energy formation and developer costs. WAM system filing. Represents the deferral of certain costs, including depreciation and amortization incurred in connection with improvements to its information technology systems through the design, development, and implementation of a new WAM program for the scheduling, dispatch, and execution of work and the management of underlying assets. Customer Assistance Programs. Represents the difference between the eligible customer assistance program costs and collections, which will be collected from customers. Liabilities: Over-recovered gas and fuel costs. Represents the difference between the cost of gas and fuel, as well as energy acquired through power purchase agreements, including NIPSCO's own renewable projects and, the recovery of such costs in revenues and is the basis to adjust future billings for such refunds on a basis consistent with applicable state-approved tariff provisions. Refunding of these revenues is achieved through tracking mechanisms. Cost of removal. Represents anticipated costs of removal for utility assets that have been collected through depreciation rates for future costs to be incurred. Regulatory effects of accounting for income taxes. Represents amounts owed to customers for deferred taxes collected at a higher rate than the current statutory rates and liabilities associated with accelerated tax deductions owed to customers. Balance includes excess deferred taxes recorded upon implementation of the TCJA in December 2017, net of amounts amortized through 2024 and federal tax credits generated by Cavalry solar facility that are passed back to customers. For discussion of the regulatory impact of the NIPSCO Minority Interest Transaction on deferred taxes, see Note 15, "Income Taxes," for additional details. Deferred pension and other postretirement benefit costs. Primarily represents cash contributions in excess of postretirement benefit expense that is deferred by certain subsidiaries. Gains on commodity price risk programs. Represents the unrealized gains related to certain of our subsidiary's commodity price risk programs. These programs help to protect against the volatility of commodity prices, and these amounts are passed back to customers through their inclusion in customer rates. Customer Assistance Programs. Represents the difference between the eligible customer assistance program costs and collections, which will be refunded to customers. Renewable energy investments. Represents the regulatory deferral of certain amounts representing the timing difference between the profit earned from the JVs and the amount included in regulated rates to recover our approved investments in consolidated JVs. The offset to the regulatory liability associated with our renewable investments is recorded in "Depreciation expense" on the Statements of Consolidated Comprehensive Income. Refer to Note 1, "Nature of Operations and Summary of Significant Accounting Policies - S. Noncontrolling Interest," Note 4, "Noncontrolling Interests," and Note 9, "Property, Plant and Equipment," for additional information. Rate Refunds. Represents supplier refunds received by the company that are owed to customers and will be remitted and amounts that are being collected in rates subject to refund. Off System Sales Sharing. Represents amounts to be passed back to the customers as a result of Off System sales that is shared between the company and the customer. Regulatory Filings Renewable generation filings In March 2024, NIPSCO filed a petition with the IURC to issue an order modifying its November 22, 2023 order to approve direct ownership of the Gibson project. Also, in March 2024, NIPSCO filed a petition with the IURC to issue an order modifying its June 29, 2021 order to approve direct ownership of the Fairbanks project. Hearings for both the Gibson project and Fairbanks project were held in June 2024 and July 2024, respectively, with orders approving direct ownership of both projects received in August 2024. NIPSCO Gas peaker filing In September 2023, NIPSCO filed a request for issuance of a CPCN for an approximately 400 MW natural gas peaking generation facility with the IURC, which was supplemented in January 2024 based on updates on availability of certain key equipment. A final order was received in October 2024 approving the request. NIPSCO Electric rate case filing On February 7, 2025, NIPSCO and certain intervening parties filed a Joint Stipulation and Settlement Agreement with the IURC. New rates proposed to be implemented in 2 steps, with implementation of Step 1 rates effective no later than September 2025 and Step 2 rates to be effective no later than March 2026. Columbia of Virginia rate case filing Columbia of Virginia and the intervening parties, with the exception of the Office of the Attorney General, filed a Joint Stipulation and Proposed Recommendation for settlement on December 5, 2024 for an annual revenue increase of $28.2 million, net of SAVE. Rates became effective on an as filed basis in October 2024 and we have recorded a regulatory liability to reflect the pending settlement.

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