NiSource Inc. (NI): Marketing Mix Analysis [Dec-2025 Updated]

You're looking for the real story behind NiSource Inc.'s market strategy as we head into late 2025, and honestly, the four P's for this utility giant boil down to managing massive infrastructure spend while navigating the clean energy shift. We see a Product portfolio serving 3.3 million gas customers across six states-from Columbia Gas to NIPSCO-all underpinned by the $19.4 billion capital plan they're promoting heavily to investors. The Place is fixed by those state lines, but the Price is where the rubber meets the road: while they target 8%-10% annual rate base growth, you need to watch the customer impact, like the NIPSCO residential electric rate jumping about 22% phased in starting late this year. Let's break down exactly how NiSource Inc. is positioning its regulated assets for the next decade, so you can see the near-term risk versus the long-term stability.

NiSource Inc. (NI) - Marketing Mix: Product

You're looking at the core offering of NiSource Inc. (NI), which is fundamentally about delivering essential, regulated energy services across its footprint. The product isn't a physical good you pick off a shelf; it's reliable access to natural gas and electricity, backed by massive, long-lived infrastructure.

The scale of the gas distribution business is substantial. NiSource Inc. provides regulated natural gas distribution to approximately 3.3 million customers across its service territories in six states, utilizing about 55,000 miles of distribution main pipeline. For the electric side, the product is electric generation, transmission, and distribution, serving about 500,000 customers, primarily through its Northern Indiana Public Service Company LLC (NIPSCO) subsidiary.

The product portfolio is actively being reshaped by the clean energy transition. NiSource Inc. is committed to retiring 100% of its coal-fired electric generation assets by 2028. This transition is supported by significant capital deployment. The company committed approximately $4 billion in cumulative generation transition investments through 2028, replacing coal primarily with renewables. Furthermore, the overall planned investment between 2024 and 2028 is approximately $16 billion, which includes $2.5 billion dedicated to this energy generation transition and $8.5 billion to modernize the distribution pipeline infrastructure.

Here's a quick look at the environmental product goals tied to this transition:

• Target for 90% reduction in Scope 1 GHG emissions by 2030 (from 2005 levels).
• Target for 50% reduction in methane emissions from gas mains and service lines by 2025.
• Scope 1 GHG emissions were reduced by approximately 72% as of the end of 2023 (from 2005 levels).

A major development in the electric product offering is securing capacity for massive new industrial load, specifically data centers. NiSource Inc.'s NIPSCO subsidiary entered a contract to provide electric service to a large investment-grade company's data centers, which will require significant new generation capacity. This is a concrete example of evolving the product mix to meet digital demand.

The specifics of this large-load infrastructure deal are quite detailed, involving substantial capital commitment:

This deal includes a mechanism to flow savings back to existing retail customers, potentially resulting in roughly $7 in monthly savings for residential customers starting in 2027. It's a complex product structure designed to isolate the cost of new, large-load infrastructure.

Beyond the core energy delivery, NiSource Inc. enhances its product value through customer support and efficiency offerings. These programs are designed to ensure service accessibility and value, which is critical for a regulated utility. For instance, the company's operating companies, including NIPSCO, scored highly in a 2025 study for being easy to do business with, with NIPSCO achieving a 770 Customer Effort Score. These customer-facing services are part of the overall product experience.

• NIPSCO Customer Effort Score (2025 study): 770.
• Columbia Gas of Virginia Customer Effort Score (2025 study): 780.
• The company supports community value through its foundation, which distributed over $7.6 million to more than 700 non-profit organizations in 2023.

The product is reliability, decarbonization, and customer support, all wrapped in a regulated rate structure. Finance: draft 13-week cash view by Friday.

NiSource Inc. (NI) - Marketing Mix: Place

The Place strategy for NiSource Inc. centers on the physical delivery of regulated energy services across a defined, multi-state footprint, relying on an extensive, owned infrastructure network.

NiSource Inc. operates its utility services across six states: Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. This geographic distribution is managed through its primary local utility brands, ensuring localized service delivery and regulatory compliance within each jurisdiction.

The core delivery mechanism is through its local utility brands, specifically Columbia Gas and NIPSCO. As of late 2025 reporting, NiSource Inc. serves approximately 3.3 million natural gas customers and 500,000 electric customers across this territory. The electric service component is concentrated entirely within northern Indiana under the NIPSCO brand. The Columbia Gas subsidiaries serve the remaining gas customers across the other five states and parts of Indiana.

The physical distribution relies on an extensive infrastructure network. The company manages approximately 55,000 miles of distribution main pipeline, which includes the associated individual customer service lines. Furthermore, NiSource Inc. maintains about 1,000 miles of transmission main pipeline across its service areas. This infrastructure is the physical manifestation of its 'Place' commitment.

Strategic focus areas dictate where capital investment for 'Place' modernization is directed. For instance, the Indiana electric utility, NIPSCO, has a strategic focus on renewable energy development. Over the 2020-2025 period, NIPSCO officials planned to invest between $2 billion and $2.2 billion on eight 'BTA' (build-transfer agreement) renewable energy projects. More recently, the consolidated capital expenditure plan announced for the five years leading up to 2030 totals $28.0 billion, which includes approximately $7.0 billion allocated for strategic data center investments, particularly in Indiana, Ohio, and Virginia.

You can see the breakdown of the customer base served by the primary distribution brands:

• Total Natural Gas Customers Served: Approximately 3.3 million.
• Total Electric Customers Served: Approximately 500,000.
• NIPSCO Natural Gas Customers: Approximately 1.4 million (as of 2024 data).
• NIPSCO Electric Customers: Approximately 483,000 (as of 2024 data).

The scale of the infrastructure investment directly supports the 'Place' strategy of modernization and reliability. Here's a look at the planned capital deployment supporting the physical network:

The physical network is continuously being upgraded to meet regulatory and customer demands. For example, infrastructure replacement programs are ongoing. Columbia Gas of Ohio had an Infrastructure Replacement Program (IRP) filing for Fiscal Year 2024 seeking recovery for $225 million in FY 2024, plus an additional $64 million related to PHMSA (Pipeline and Hazardous Materials Safety Administration) IRP requirements. This work directly impacts the accessibility and safety of the 55,000 miles of distribution main pipeline.

NiSource Inc. (NI) - Marketing Mix: Promotion

Promotion for NiSource Inc. centers on regulated communication tailored to distinct stakeholder groups: investors, regulators, the public, and customers. The messaging is highly structured, focusing on capital deployment, operational integrity, and community support.

Investor relations strategy focused on communicating the $19.4 billion capital plan.

The primary promotional message to the investment community revolves around the planned capital deployment, which is designed to secure future earnings growth. NiSource communicated a base capital expenditure plan of $19.4 billion for the 2025-2029 period, which is intended to drive 8%-10% annual rate base growth. This investment thesis is directly linked to the projected 6%-8% annual adjusted Earnings Per Share (EPS) growth through 2029. For 2025, the company raised its adjusted EPS guidance to the range of $1.85 to $1.89 per share. Furthermore, a later update extended the base plan to 2030, with a consolidated capital expenditure plan reaching $28.0 billion, including nearly $7.0 billion for strategic data center investments, supporting a new 2026-2033 consolidated adjusted EPS compound annual growth rate target of 8%-9%.

Regulatory messaging emphasizing safety, reliability, and infrastructure modernization.

Communication with regulatory bodies, such as the Indiana Utility Regulatory Commission (IURC), heavily features the necessity of capital investment to maintain and enhance system integrity. For instance, a NIPSCO rate request in late 2024 explicitly sought to support infrastructure upgrades for enhanced safety and reliability, with bill changes phased in starting late 2025 into 2026. The modernization narrative covers both gas and electric systems, utilizing risk models to prioritize replacements. Gas infrastructure modernization focuses on replacing segments with high-risk characteristics like bare steel and cast iron. Electric system modernization includes transformer and breaker replacements, and circuit rebuilds. The IURC approval for the NIPSCO Generation LLC (GenCo) structure also reinforced the message of delivering safe, reliable and affordable energy solutions, specifically to shield existing retail customers from new data center load costs.

Public commitment to a Net Zero greenhouse gas emissions goal by 2040.

NiSource actively promotes its environmental stewardship, framing it as integral to its overall strategy. The public commitment is to achieve net zero Scope 1 and Scope 2 greenhouse gas (GHG) emissions from operations by 2040. As of the end of 2024, the company reported a reduction of these GHG emissions by approximately 72% from 2005 levels. The path to this goal includes retiring remaining coal-fired electric generation assets between 2026 and 2028, transitioning to a mix of low- or zero-emission generation. Further evidence of this commitment includes initiatives like implementing an agrivoltaics land management strategy, where sheep grazed 100 acres of vegetation on solar sites, successfully combining energy production with sustainable agriculture.

Corporate communication via website and social media channels for financial and operational updates.

NiSource utilizes its corporate website and social media channels for timely dissemination of operational and financial news. The company serves approximately 3.3 million natural gas customers and 500,000 electric customers across its six-state footprint. Corporate communication schedules are precise, with announcements for quarterly results and capital program updates, such as the October 2025 announcement of a $1.5 billion at-the-market (ATM) equity issuance program through 2028, published directly on its investor relations portal. The general social media environment in 2025 sees global ad spend projected to surpass $276.72 billion, underscoring the need for NiSource to maintain an active, informative presence to reach its broad stakeholder base.

Key communication channels and updates include:

• Website and mobile apps for customer service and program access.
• Live or automated chat for immediate customer care agent connection.
• Regular press releases on financial performance and regulatory milestones.
• Social media updates on community engagement and operational highlights.

Customer outreach promoting energy assistance and energy efficiency programs.

Customer outreach is channeled through the 'Connecting You + Energy' initiative, focusing on making energy accessible and helping manage usage. This involves promoting bill support and conservation measures. While the most recent specific participation data found is from 2019, it illustrates the scale of these promotional efforts:

• In the 2019 program year, NiSource customers received over $47.6 million in Low Income Home Energy Assistance Program (LIHEAP) assistance.
• In 2019, over 1 million customers participated in energy efficiency programs, saving more than $18 million on their energy bills.

The promotion emphasizes partnership with local agencies for hardship funds and flexible payment plans. For example, NIPSCO proposed a new bill payment assistance program for income-qualified customers as part of its late 2024 rate case, with implementation beginning in late 2025. The company actively promotes rebates and incentives for energy-efficiency upgrades, home check-ups, and weatherization services to help customers lower their utility bills.

NiSource Inc. (NI) - Marketing Mix: Price

You're looking at how NiSource Inc. (NI) prices its regulated energy services. For a utility like NiSource, price isn't just about setting a number; it's about navigating the regulatory landscape to recover costs and earn an approved return on investment. That's the core of it.

The entire pricing structure is fundamentally regulated. Rates are not set unilaterally; they must be set and approved by state utility commissions, like the Indiana Utility Regulatory Commission (IURC) for NIPSCO's operations. This process directly ties pricing to capital expenditure recovery and approved return levels, which is why you see growth targets tied to rate base expansion.

Here's a look at the financial targets that frame the pricing strategy for 2025 and beyond:

• NiSource Inc. (NI) narrowed its 2025 non-GAAP adjusted EPS guidance to the upper half of the range: $1.85-$1.89.
• The company projects annual rate base growth of 8%-10% for the 2025-2029 period, which underpins future rate case filings for capital recovery.

When we look specifically at customer-facing rate changes, particularly for NIPSCO, you see the direct impact of these regulatory filings. The strategy involves phasing in significant investments over time to manage the shock to the customer's monthly bill. For example, the proposed electric rate adjustment was substantial:

The NIPSCO residential electric rate increase, based on the initial proposal filed, was set to be approximately $32 per month, representing about a 22% increase above projected bills at the time of implementation, phased in starting late 2025.

On the gas side, a separate rate adjustment was phased in by the first quarter of 2025. This gas rate increase averaged about $5 per month, or roughly a 7.1% increase, for residential customers, reflecting the costs associated with federal pipeline safety requirements and system modernization.

To put these key pricing and performance indicators side-by-side, consider this summary:

These figures show you the direct link between the capital plan recovery mechanism and the final price you see on the bill, all contingent on IURC approval. Finance: draft 13-week cash view by Friday.