NiSource raises 2025 earnings forecast on higher power demand

Adds quote from conference call and segment details in paragraphs 3 and 7 respectively

By Pooja Menon

Feb 12 (Reuters) - U.S. electric and gas utility company NiSource NI.N on Wednesday raised its adjusted earnings forecast for 2025 and beat fourth-quarter profit estimates, benefiting from higher industrial electricity demand.

Power companies are set to benefit from rising electricity usage — expected to reach record highs in 2025, according to the U.S. Energy Information Administration — mainly from energy-guzzling data centers needing to scale Big Tech's artificial intelligence ambitions.

"A mix of incremental generation resources of approximately 900 megawatts of capacity is likely required by 2028 to meet energy and capacity needs in all scenarios, before considering potential data center growth," the company said in a conference call.

NiSource said its capital expenditure plan has increased to $19.4 billion, compared with $19.3 billion previously, which is expected to result in an 8% to 10% rate base growth for the 2025 to 2029 period.

U.S. electric utilities have been pushing to hike customer electricity bills, as the grid faces extreme weather besides the rising demand.

Across six states, the utility company serves natural gas to around 3.3 million customers through its Columbia Gas unit and electricity to 500,000 customers through its NIPSCO unit.

Adjusted operating profit from its NIPSCO operations segment rose 44% to $193 million in the fourth quarter compared to a year earlier.

Merrillville, Indiana-based NiSource raised its 2025 adjusted profit forecast to between $1.85 per share and $1.89 per share, from its prior expectation of $1.84 to $1.88 each.

On an adjusted basis, NiSource reported a quarterly profit of 49 cents per share, just above the analysts' average estimate of 48 cents per share, according to data compiled by LSEG.