NiSource announced an agreement to sell a 19.9% equity interest in Northern Indiana Public Service Company (NIPSCO) to an affiliate of Blackstone Infrastructure Partners for less than $2.2 billion.

The transaction implies an equity value of $10.8 billion and enterprise value of $14.3 billion for 100% of NIPSCO. Blackstone Infrastructure will also invest $250 million to fund ongoing capital requirements.

NiSource said it intends to use the infusion to support NIPSCO, its fastest growing utility.

The transaction is expected to close by the end of 2023. NiSource will retain an 80.1% stake in NIPSCO and continue to operate it.

Since 2018, NIPSCO has been working to transition from coal. NIPSCO is targeting a 0% coal-fired generation mix by 2028, from a 75% coal generation mix in 2018. Through 2030, NIPSCO expects to spend approximately $3.5 billion in electric generation transition investments, with a primary focus on installing new renewable generation capacity to replace coal retirements.

Mike Hooper, President and Chief Operating Officer of NIPSCO said the transaction will “strengthen our ability to invest in major renewable generation projects and make capital enhancements to existing electric and gas infrastructure to add resiliency to our system.”

NIPSCO is Indiana’s largest vertically integrated electric and gas distribution company, providing utility service to almost 1.3 million customers.

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