NiSource Business Model Canvas

Equipment and technology vendors for AMI, SCADA, GIS and cybersecurity underpin NiSource’s grid modernization, supplying smart meters, sensors and analytics that increase operational visibility across its ~3.9 million customer connections. Vendor partnerships accelerate deployment and lifecycle management, aligning with NiSource’s multi-year capital plan of roughly $2.0 billion annually (2024). Standardization across vendors reduces maintenance costs and improves system reliability.

Partnerships with regulators, pipelines, vendors, EPCs and first responders secure approvals, supply, tech and execution for NiSource’s ~4.1M customers and ~34,000 miles of gas mains, supporting the ~$2.7B 2024 capital program. Long-term contracts, vendor standardization and performance KPIs reduce volatility, lower O&M and speed modernization while joint emergency coordination improves safety.

Prepare filings, rate cases and compliance reports to recover prudent costs for NiSource, which serves about 3.6 million utility customers across seven states; engage stakeholders and manage hearings and audits to support approved outcomes; implement riders and trackers aligned with policy objectives to enable cost recovery; maintain transparent reporting and cost allocation to regulators and investors.

Operate and monitor gas and electric distribution for ~3.7M customers across 7 states, using SCADA and field crews for real-time control and outage minimization. Execute preventative maintenance and $2.6B 2024 capital plan targeting leak-prone pipe and grid upgrades. Manage billing, rate cases and emergency response to support ~$6.0B 2024 revenue and resilience.

Service territories, licenses and rights-of-way give NiSource exclusive distribution across seven states, serving ~3.6 million gas and ~0.5 million electric customers and roughly 30,000 miles of pipeline. Approved tariffs and riders underpin cost recovery, supporting 2024 regulated revenue of about $7.5 billion and an authorized ROE near 9.8%. Environmental and safety permits enable ongoing operations, while alignment with federal/state policy protects long-term viability.

NiSource's core resources are extensive regulated gas and electric distribution assets (~30,000 miles pipeline, 3.6M gas customers, 0.5M electric customers) and an experienced 7,300-strong workforce driving safe operations and modernization. Investment-grade financing (S&P BBB/Stable) and 2024 capex of ~$2.9B fund upgrades and safety programs. Advanced OT/IT (AMI, SCADA, GIS, analytics) and $1.5B liquidity facility support reliability and resilience.

NiSource provides 24/7 monitoring and rapid field response to accelerate restoration for approximately 3.9 million customers in 2024, shortening outage duration through faster crew dispatch. Proactive alerts via SMS, email and app keep customers informed throughout events. Close coordination with authorities enhances public safety and traffic control. Structured post-event reviews feed continuous improvement in response protocols.

NiSource serves about 4,000,000 customers (2024) and prioritizes highest-risk asset replacement under a multi-year reliability program to reduce incidents.

Regulated cost recovery and 2024 rate cases plus $2.6B capital deployment stabilize pricing and fund system hardening.

24/7 monitoring and rapid field response shorten outages; demand-side programs and income-qualified assistance lower bills and peak load.

Grid/pipeline upgrades, leak reduction and RNG/electrification pilots cut emissions intensity and support policy alignment.

NiSource’s self-service portals and apps let roughly 3.9 million customers (2024) make payments, view usage, and start/stop service online, reducing contact-center demand; personalized alerts improve bill management and enrollment in paperless billing; digital outage reporting speeds restoration by enabling faster crew dispatch; overall digital convenience lowers friction and supports higher customer satisfaction and operational efficiency.

NiSource serves ~3.6M customers (2024) across 7 states via 24/7 call centers, digital portals (~3.9M users) and real-time outage communications; rapid dispatch prioritizes safety. Energy-efficiency programs ($85M 2024 budget) delivered ~45,000 rebates (2023) with typical project savings of 10–20%. Local offices, nonprofit partnerships and surveys sustain engagement and loyalty.

On-site meter work, inspections, and restoration visits deliver hands-on diagnostics and repairs for NiSource’s ~3.6 million customers (2024), ensuring accurate billing and system integrity.

Field crews provide safety guidance and service verification at the point of contact, reducing downstream call volume and liability during maintenance.

Direct contact resolves complex issues faster than remote support, and visible crew presence reassures communities during outages and incidents.

Website and app centralize account management for ~3.6M customers (2024), outage maps and payments; call centers (24/7) handle emergencies and billing; field crews perform meters, inspections and restorations; SMS/email and social channels drive alerts and community outreach (SMS open ~98%, email open ~21% in 2024).

Large industrial and commercial customers—among NiSource’s roughly 4 million customers—require high reliability and tight power quality and often account for a disproportionate share of peak load and revenue. Dedicated account management teams support operations and outage coordination, including firm service agreements. Customized tariff options and riders, such as demand charges and economic development rates, address complex usage and cost recovery.

NiSource serves roughly 3.6M natural gas and 471K electric customers (2024) across seven states, with residential needs focused on affordability, safety and winter reliability. Small businesses and large C&I demand high continuity, tailored tariffs and account management. Municipal, institutional and income‑qualified customers require near‑100% uptime, emergency coordination and targeted assistance.

NiSource procures natural gas and electric supply to serve roughly 4 million customers in 2024, buying commodity and capacity to meet delivery obligations. Hedging programs and long‑term contracts are used to manage price volatility and credit exposure. Many fuel and purchased power costs are recovered as pass‑through under state tariffs, reducing earnings risk. Reliability needs peak capacity arrangements (capacity purchases/ROFRs) to meet winter/summer peaks.

NiSource's 2024 cost structure is driven by O&M for ~4.1M customers and ~7,700 employees, workforce-related costs (IBEW contracts, benefits, storm overtime) and commodity procurement largely passed through tariffs. Capital spend of ~$3.6B targets pipeline replacement, grid modernization and AMI, while regulatory, legal and insurance expenses add recurring overhead.

Customer connection and service fees in 2024 cover new service hookups, meter work, and reinstatement fees, with field services billed per approved tariffs; charges are designed on a cost-recovery basis to support ongoing operations. Approved, transparent fee schedules published by NiSource guide customers on timing and pricing, ensuring predictable cash flow and regulatory compliance. Operational cost-based charges help maintain infrastructure and service reliability.

Regulated distribution tariffs provide NiSource’s core cash flow, serving ~4.0 million utility customers in 2024 and yielding predictable, rate-case-driven revenues. State riders/trackers accelerate recovery of multi‑billion dollars in infrastructure spending and fund EE programs with performance incentives where authorized. Other operating income was ~$235M in 2024 (~3% of consolidated operating revenues), modestly diversifying receipts.