NiSource Enters 20-Year PPA With Microsoft For Its Northwest Indiana Campus; Total Savings For Existing Customers Expands To ~$1.75B

The agreement is expected to expand customer savings while supporting economic growth across the region, reflecting NiSource’s continued focus on aligning economic development with customer affordability.Through NiSource Generation Company LLC (GenCo), the company is serving new large-load customers under a structure designed to protect existing Northern Indiana Public Service Company LLC (NIPSCO) electric customers from incremental costs and return value from large-load customers’ use of the existing electric system. Large-load customers fully fund the generation and infrastructure required to serve their needs.The agreement builds on the previously disclosed $1.4 billion expected customer savings over the life of data center customer contracts, increasing total expected NIPSCO electric customer savings to approximately $1.75 billion, equating to as much as $140 per customer annually."Affordability is not separate from economic development; it is a key pillar of our GenCo model," said NiSource President and CEO Lloyd Yates. "This agreement reflects the balanced approach we believe is needed for Indiana to attract significant investment and create long-term jobs," Yates continued. "Our priority remains clear: protect existing customers, support safe and reliable service, and ensure that new growth contributes tangible benefits to the communities we serve. When structured correctly, economic development can be part of the affordability solution.""Microsoft has always been committed to paying our own way and identifying long-term solutions like this one to ensure that our data centers don't increase electricity prices for other ratepayers," said Jeff Riles, Senior Director of Energy Markets, Microsoft. "Our partnership with NIPSCO will not only support continued growth and protect ratepayers but also help to support a reliable grid for years to come that the communities of Northern Indiana rely on." Riles continued.Under the agreement, Microsoft is expected to begin taking electric service under a 20-year term starting in 2028. The GenCo-owned pool portfolio will be increased by approximately 1,100 MW with NIPSCO and GenCo to provide transmission and generation infrastructure to ensure adequate assets to serve Microsoft’s data center and NIPSCO’s customers while providing a safe, reliable, and coordinated power supply. Microsoft fully funds all generation and transmission required to serve its load. These assets will upgrade NIPSCO’s electric transmission system, improving grid reliability and resilience for customers in the state of Indiana, while ensuring current residential and business customers are protected from the costs of serving the data center.In connection with the Microsoft agreement, GenCo has contracted 600 MW of battery storage, under a long-term tolling agreement. The facility will be developed and constructed by an affiliate of AGP Group. This resource will be added to GenCo’s pool resource assets designed to serve multiple large-load customers.