Oct 28, 2026 earnings call — Microsoft Genco agreement and extended capital plan
Signed Microsoft Genco deal raises expected savings to existing NIPSCO electric customers to $1.75 billion.
Revenue $1.3B (est $1.3B) · EPS $0.27 (est $0.23)
Key quotes
"With our recently announced Microsoft agreement, Genco now serves 3 of the largest technology companies in the world, and brings our signed agreements to an expected $1.75 billion in savings to existing NIPSCO electric customers."
"Our new 7-year plan totals $40 billion, including $32 billion of base plan investments and approximately $8 billion of Genco investments, to support data center customers."
"Within 24 hours, more than 1.7 thousand external personnel had joined the internal teams including Columbia Gas employees, contractor partners, and mutual assistance crews from across the region."
Analyst Q&A 11
Microsoft deal scope and Indiana risk
Q (Shahriar Pourreza · Wells Fargo): They asked how big the Microsoft site is and whether the announced agreement is the full opportunity or just a first phase. They also asked if anything changed in the regulatory risk for the Genco in Indiana.
A: Management said they cannot comment on customer site size but are actively engaged with the three major customers and those in the queue. They said they have strong demand in the queue and are confident in their ability to execute. They remain optimistic and confident about Indiana and are actively engaged with stakeholders on the Genco.
"I mean, what I will say to you, Shar, is that we cannot, you know, comment on any of our customer sites." — Michael Luhrs
Planning to serve more load and batteries
Q (Julien Dumoulin-Smith · Jefferies): They asked whether current infrastructure plans can serve more Microsoft load and what generation or transmission upsizing is needed. They also asked about battery tolling versus ownership and the funding impact of incremental payments on cash flow.
A: Management said they plan assets to be able to serve the totality of customers from a pool portfolio and do not overbuild, while planning for potential needs and risks. On batteries they use a mix: some they own, some they toll, and they will balance ownership and tolling as they grow. Finance comment: customer ramps strengthen cash from operations, customers fully ramp in 2031 and 2032, and the base business started with strong cash flow at 16.1 on an FFO to debt basis.
"When we plan our assets, we plan our assets for the ability to from that pool portfolio, serve the totality of our customers within it." — Michael Luhrs
Genco review timing and storm hardening
Q (Nicholas Campanella · Barclays): He asked if the strategic review of the Genco must finish before executing the remaining 4 gigawatts and for an update on timing. He also asked how recent storm hearings inform capital plans for resiliency.
A: Management said the review does not need to happen before executing the next 4 gigawatts and that 2 gigawatts are in strategic negotiations with 2 more behind them. They are studying upsizing the Genco and expect to roll out results in 2027. On storms they will participate in IURC hearings, are studying investments to harden the system, and will present necessary investments to regulators and legislators.
"That review does not need to happen before we execute on the next 4 gigawatts." — Lloyd Yates (CEO)
Serving Amazon after CCGT timing change
Q (BofA): He asked how they will serve Amazon if one CCGT shifts to 2030 and who bears any incremental cost. He also asked about funding and whether capital or financing needs changed.
A: Management said they use a pool portfolio, including batteries and incremental agreements, to optimize assets and serve customers while de-risking construction; some assets were accelerated and others optimized. They said disclosed capital requirements did not change and pricing signals remain tied to customer ramp rates. The strong base business cash flow and Genco rate structure give flexibility to shape cash flow and balance financing needs.
"we have a pool portfolio. So this fits into the whole capability of really making sure that we are optimizing the assets to be able to serve the customers in the most beneficial and cost accretive way quite frankly, derisking the construction." — Michael Luhrs
Customer bill savings and Indiana strategy
Q (Elias Jossen · JPMorgan): He asked how to think about the regulatory playbook in Indiana and the strategy for returning customer savings, especially after the election.
A: Management said one of Genco's largest benefits is addressing affordability and that, with the Microsoft signing, they will start to roll back $1.7 billion to customers and that amount will grow as Genco grows. They said the customer credit should appear on bills as a 'my data center credit' pending IURC approval at the end of this quarter or early next year. Management also noted Genco is isolated from the rate base so the utility customers do not bear the risk of the assets.
"You know, with this last signing of Microsoft, you know, we start to roll back $1.7 billion to our customers." — Lloyd Yates (CEO)
Turbine cost details and base capex plans
Q (Wolfe): He asked whether the $2.3 billion for the two combustion turbines includes more than generation and whether a generation-only number exists. He also asked if Genco capex is front-loaded and where base business capex will be spent.
A: Management said the $2.3 billion includes transmission and infrastructure and not just the two F-frame CTs, and they have not disclosed a generation-only number. They said the Genco capex profile has no material change from the previous plan, and the base business has long-dated capital needs including pipeline modernization with about 60 thousand miles of pipeline and a replacement rate of about 400 miles annually, plus PHMSA compliance work and possible storm hardening on the electric side.
"All the transmission and infrastructure is also included, Steven." — Shawn Anderson (CFO)
Genco EPS drivers and financing outlook
Q (Mizuho): He asked what drives the Genco EPS range (previously $0.40–$0.60) and whether that range will persist. He also asked if assumptions for rates or O&M changed given interest rate moves.
A: Management said the range moved to $0.52 to $0.68 for 2033, which indicates the full ramp rate for all Genco customers and is predominantly driven by capacity fees. They said financing costs and customer ramp timing affect near-term EPS, and they expect earnings efficiency to improve as borrowing is paid down; they did not model material rate cuts and the plan did not need to change because of recent market moves, and they will be opportunistic across the curve for debt and equity.
"that is indicative of the full ramp rate for all customers." — Shawn Anderson (CFO)
Capex timing and capacity accreditation
Q (Nicholas Amicucci · Evercore): He asked why $9.9 billion versus $8 billion appear in different slides and whether the 3.9 GW of signed demand versus 4.9 GW of supply reflects battery accreditation.
A: Management said the difference in the dollar totals is purely the time horizon: the $10 billion includes preexisting 2025 and 2026 investments while the $8 billion references 2027 through 2033. They also said the gap between generation capacity and load accounts for accreditation factors, different generation types, loss of load, and other factors used in their planning.
"Preexisting 2025 and 2026 investment would be included in the $10 billion The $8 billion really referencing the 2027 through 2033 period." — Shawn Anderson (CFO)
Why pipeline stays 9 GW and storm study goals
Q (KeyBanc): She asked why the pipeline remained at 9 gigawatts after the recent deal — was it backfilled — and what the self-initiated storm response study will learn and how it will interact with the commission investigation.
A: Management said the 9 gigawatts now consist of 5 gigawatts of assigned capacity, 2 gigawatts in strategic negotiations, and 2 gigawatts in developing opportunities, and they continue to assess additional expansions to bring back in 2027. On the storm study they will submit it to the commission and expect to learn how to improve operations, what investments are prudent to harden the system, and how to improve customer communication during storms.
"When you look at the 9 gigawatts right now, you know, the 5 gigawatts is assigned capacity." — Michael Luhrs
Blackstone stake and gas affordability engagement
Q (Travis Miller · Morningstar): He asked if Blackstone will contribute pro rata to the financing plan and whether they are comfortable adding capital as data centers come. He also asked what the gas business's stance is on affordability politics and regulation.
A: Management confirmed Blackstone will maintain a 19.9% share of investments across the NNIPSCO and Genco capital plans. On gas affordability, they said they are not on the sidelines: they are actively engaged in discussions about customer affordability, managing bill impacts, timing capital deployment, and working with external stakeholders to explain and quantify the investments needed.
"We are actively engaged in the discussion around customer affordability and the impact we have on the customer's wallet." — Melody Birmingham (PRESIDENT)
Why Genco EPS steps up and financing
Q (RBC): He asked why Genco adjusted EPS seems to step up notably from 2032 to 2033 and whether that is due to financing or customer ramps.
A: Management cautioned against reading the chart too precisely but said the main drivers are financing cost and customer ramp rate, with customers fully ramping in 2030, 2031, and 2032 strengthening capacity revenue. They said financing began in 2025 and 2026 at the enterprise level using investment grade bonds and equity, there is no amortizing debt, and the need for new debt is declining as cash becomes more optimized.
"the combination of those 3 customer ramp rates at those points in time are gonna strengthen the capacity revenue that we are collecting from Genco." — Shawn Anderson (CFO)