Item 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Statements of Consolidated Equity (unaudited)

(in millions)			Common Stock						Preferred Stock						Treasury Stock						Additional Paid-In Capital						Retained Deficit						Accumulated Other Comprehensive Loss						Noncontrolling Interest in Consolidated Subsidiaries						Total
Balance as of January 1, 2025			$	4.7					$	—					$	(99.9)					$	9,521.5					$	(711.7)					$	(30.4)					$	1,984.1					$	10,668.3
Comprehensive Income:
Net income			—						—						—						—						474.8						—						51.9						526.7
Other comprehensive gain, net of tax			—						—						—						—						—						1.2						—						1.2
Dividends:
Common stock ($0.56 per share)			—						—						—						—						(264.5)						—						—						(264.5)
Noncontrolling Interests:
Contributions from noncontrolling interests			—						—						—						—						—						—						34.8						34.8
Distributions to noncontrolling interests			—						—						—						—						—						—						(21.6)						(21.6)
Stock issuances (redemptions):
Employee stock purchase plan			—						—						—						1.7						—						—						—						1.7
Long-term incentive plan			—						—						—						(3.3)						—						—						—						(3.3)
401(k) and profit sharing			—						—						—						2.7						—						—						—						2.7
Balance as of March 31, 2025			$	4.7					$	—					$	(99.9)					$	9,522.6					$	(501.4)					$	(29.2)					$	2,049.2					$	10,946.0
(in millions)			Common Stock						Preferred Stock						Treasury Stock						Additional Paid-In Capital						Retained Deficit						Accumulated Other Comprehensive Loss						Noncontrolling Interest in Consolidated Subsidiaries						Total
Balance as of January 1, 2024			$	4.5					$	486.1					$	(99.9)					$	8,879.5					$	(967.0)					$	(33.6)					$	1,866.7					$	10,136.3
Comprehensive Income:
Net income			—						—						—						—						365.0						—						35.3						400.3
Other comprehensive loss, net of tax			—						—						—						—						—						(0.2)						—						(0.2)
Dividends:
Common stock ($0.53 per share)			—						—						—						—						(237.6)						—						—						(237.6)
Preferred stock (See Note 6)			—						—						—						—						(8.1)						—						—						(8.1)
Noncontrolling Interests:
Distributions to noncontrolling interests			—						—						—						—						—						—						(3.0)						(3.0)
Stock issuances (redemptions):
Series B and B-1 Preferred stock redemption			—						(486.1)						—						—						—						—						—						(486.1)
Series B and B-1 Preferred stock redemption premium			—						—						—						—						(14.0)						—						—						(14.0)
Employee stock purchase plan			—						—						—						1.4						—						—						—						1.4
Long-term incentive plan			—						—						—						3.3						—						—						—						3.3
401(k) and profit sharing			—						—						—						2.6						—						—						—						2.6
Balance as of March 31, 2024			$	4.5					$	—					$	(99.9)					$	8,886.8					$	(861.7)					$	(33.8)					$	1,899.0					$	9,794.9

Table of Contents

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Condensed Statements of Consolidated Equity (unaudited) (continued)

			Preferred						Common
Shares (in thousands)			Shares						Shares						Treasury						Outstanding
Balance as of January 1, 2025			—						473,785						(3,963)						469,822
Issued:
Employee stock purchase plan			—						46						—						46
Long-term incentive plan			—						682						—						682
401(k) and profit sharing			—						68						—						68
Balance as of March 31, 2025			—						474,581						(3,963)						470,618
			Preferred						Common
Shares (in thousands)			Shares						Shares						Treasury						Outstanding
Balance as of January 1, 2024			40						451,345						(3,963)						447,382
Issued:
Employee stock purchase plan			—						53						—						53
Long-term incentive plan			—						663						—						663
401(k) and profit sharing			—						100						—						100
Redeemed:
Series B and B-1 Preferred Stock			(40)						—						—						—
Balance as of March 31, 2024			—						452,161						(3,963)						448,198

The accompanying Notes to Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

1. Basis of Accounting Presentation

Our accompanying Condensed Consolidated Financial Statements (unaudited) reflect all normal recurring adjustments that are necessary, in the opinion of management, to present fairly the results of operations in accordance with GAAP in the United States of America. The accompanying financial statements include the accounts of us, our majority-owned subsidiaries, and VIEs of which we are the primary beneficiary after the elimination of all intercompany accounts and transactions.

The accompanying financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Income for interim periods may not be indicative of results for the calendar year due to weather variations and other factors.

The Condensed Consolidated Financial Statements (unaudited) have been prepared pursuant to the rules and regulations of the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made in this Quarterly Report on Form 10-Q are adequate to make the information herein not misleading.

2. Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). This pronouncement requires disaggregated disclosure of income statement expenses for public business entities. The ASU requires disclosure in tabular format of disaggregation of relevant expense captions presented on the income statement by certain natural expense categories with certain related qualitative disclosures within the notes to the financial statements. The ASU does not change the expense captions an entity presents on the income statement. The ASU is effective for fiscal years beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027, as defined in ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). We are currently evaluating the impacts this amendment will have on our required disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This pronouncement enhances required income tax disclosures. The pronouncement will require disclosure of specific categories and reconciling items included in the rate reconciliation, disaggregation between federal, state and local income taxes paid, and disclosure of income taxes paid by jurisdictions over a certain threshold. Additionally, the pronouncement eliminates certain required disclosures related to unrecognized tax benefits. This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted, and is to be applied on a prospective basis with retrospective application permitted. We will implement and provide the required disclosures in our Annual Report on Form 10-K for the year ended December 31, 2025.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This pronouncement enhances annual and interim disclosure requirements over reportable segments, primarily through enhanced disclosures about significant segment expenses. Specifically, the pronouncement requires disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM") and included within each reported measure of segment profit or loss, disclosure of an amount for other segment items representing the difference between segment revenue and segment expenses already disclosed, disclosure of all required annual disclosures for interim periods and disclosure of title and position of the CODM and how the CODM uses reported measures. The pronouncement also allows for more than one measure of segment profit if the CODM uses more than one measure in assessing segment performance. This pronouncement is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this pronouncement as of December 31, 2024 with retrospective application and updated its disclosures to include significant expenses regularly provided to the CODM, the CODM's title and how the CODM utilizes reported measures. See Note 16, "Business Segment Information," for further discussion.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

3. Revenue Recognition

Revenue Disaggregation and Reconciliation. We disaggregate revenue from contracts with customers based upon reportable segment, as well as by customer class. The Columbia Operations segment provides regulated natural gas service and transportation for residential, commercial and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. The NIPSCO Operations segment provides regulated gas and electric service in the northern part of Indiana.

The tables below reconcile revenue disaggregation by customer class to segment revenue, as well as to revenues reflected on the Condensed Statements of Consolidated Income (unaudited):

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

Three months ended March 31, 2025 (in millions)			Columbia Operations						NIPSCO Operations						Corporate and Other						Total
Gas Distribution
Residential			$	851.2					$	291.4					$	—					$	1,142.6
Commercial			306.5						103.1						—						409.6
Industrial			47.9						31.4						—						79.3
Off-system			22.3						—						—						22.3
Wholesale			1.1						—						—						1.1
Miscellaneous(1)			10.9						4.7						—						15.6
Subtotal			$	1,239.9					$	430.6					$	—					$	1,670.5
Electric Generation and Power Delivery
Residential			$	—					$	167.9					$	—					$	167.9
Commercial			—						160.1						—						160.1
Industrial			—						142.6						—						142.6
Wholesale			—						7.6						—						7.6
Public Authority			—						2.2						—						2.2
Miscellaneous(1)			—						(1.4)						—						(1.4)
Subtotal			$	—					$	479.0					$	—					$	479.0
Total Customer Revenues**(2)**			1,239.9						909.6						—						2,149.5
Other Revenues**(3)**			0.7						31.8						1.2						33.7
Total Operating Revenues			$	1,240.6					$	941.4					$	1.2					$	2,183.2
(1)Amounts included in Columbia Operations primarily relate to earnings share mechanisms and late fees. Amounts included in NIPSCO Operations primarily relate to late fees and property rentals. (2)Customer revenue amounts exclude intersegment revenues. See Note 16, "Business Segment Information," for discussion of intersegment revenues. (3)Amounts included in Columbia Operations primarily relate to alternative revenue programs including weather normalization adjustment mechanisms. Amounts included in NIPSCO Operations primarily relate to alternative revenue programs including weather normalization adjustment mechanisms, MISO multi-value projects and revenue from non-jurisdictional transmission assets. Amounts included in Corporate and Other primarily relate to products and services revenue.
Three months ended March 31, 2024 (in millions)			Columbia Operations						NIPSCO Operations						Corporate and Other						Total
Gas Distribution
Residential			$	628.0					$	212.1					$	—					$	840.1
Commercial			220.4						74.7						—						295.1
Industrial			40.1						23.8						—						63.9
Off-system			12.8						—						—						12.8
Wholesale			0.8						—						—						0.8
Miscellaneous(1)			8.2						7.9						—						16.1
Subtotal			$	910.3					$	318.5					$	—					$	1,228.8
Electric Generation and Power Delivery
Residential			$	—					$	143.8					$	—					$	143.8
Commercial			—						142.9						—						142.9
Industrial			—						115.9						—						115.9
Wholesale			—						6.3						—						6.3
Public Authority			—						2.1						—						2.1
Miscellaneous(1)			—						3.2						—						3.2
Subtotal			$	—					$	414.2					$	—					$	414.2
Total Customer Revenues**(2)**			910.3						732.7						—						1,643.0
Other Revenues**(3)**			43.4						19.7						0.2						63.3
Total Operating Revenues			$	953.7					$	752.4					$	0.2					$	1,706.3
(1)Amounts included in Columbia Operations primarily relate to earnings share mechanisms and late fees. Amounts included in NIPSCO Operations, primarily relate to revenue refunds, public repairs and property rentals. (2)Customer revenue amounts exclude intersegment revenues. See Note 16, "Business Segment Information," for discussion of intersegment revenues. (3)Amounts included in Columbia Operations primarily relate to alternative revenue programs including weather normalization adjustment mechanisms. Amounts included in NIPSCO Operations primarily relate to alternative revenue programs including weather normalization adjustment mechanisms, MISO multi-value projects and revenue from non-jurisdictional transmission assets.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

Customer Accounts Receivable. Accounts receivable on our Condensed Consolidated Balance Sheets (unaudited) includes both billed and unbilled amounts, as well as certain amounts that are not related to customer revenues. Unbilled amounts of accounts receivable relate to a portion of a customer’s consumption of gas or electricity from the date of the last cycle billing through the last day of the month (balance sheet date). Factors taken into consideration when estimating unbilled revenue include historical usage, customer rates, and weather. A significant portion of our operations are subject to seasonal fluctuations in sales. During the heating season, primarily from November through March, revenues and receivables from gas sales are more significant than in other months. The opening and closing balances of customer receivables for the three months ended March 31, 2025 are presented in the table below. We had no significant contract assets or liabilities during the period. Additionally, we have not incurred any significant costs to obtain or fulfill contracts.

(in millions)			Customer Accounts Receivable, Billed (less reserve)						Customer Accounts Receivable, Unbilled (less reserve)
Balance as of December 31, 2024			$	525.1					$	408.1
Balance as of March 31, 2025			777.4						299.5

Utility revenues are billed to customers monthly on a cycle basis. We expect that substantially all customer accounts receivable will be collected following customer billing, as this revenue consists primarily of periodic, tariff-based billings for service and usage. We maintain common utility credit risk mitigation practices, including requiring deposits and actively pursuing collection of past due amounts. Our regulated operations also utilize certain regulatory mechanisms that facilitate recovery of bad debt costs within tariff-based rates, which provides further evidence of collectibility. It is probable that substantially all of the consideration to which we are entitled from customers will be collected upon satisfaction of performance obligations.

Allowance for Credit Losses. To evaluate for expected credit losses, customer account receivables are pooled based on similar risk characteristics, such as customer type, geography, payment terms, and related macro-economic risks. Expected credit losses are established using a model that considers historical collections experience, current information, and reasonable and supportable forecasts. Internal and external inputs are used in our credit model including, but not limited to, energy consumption trends, revenue projections, actual charge-offs data, recoveries data, shut-offs, customer delinquencies, final bill data, and inflation. We continuously evaluate available information relevant to assessing collectability of current and future receivables. We evaluate creditworthiness of specific customers periodically or following changes in facts and circumstances. When we become aware of a specific commercial or industrial customer's inability to pay, an allowance for expected credit losses is recorded for the relevant amount. We also monitor other circumstances that could affect our overall expected credit losses including, but not limited to, creditworthiness of overall population in service territories, adverse conditions impacting an industry sector, and current economic conditions.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

At each reporting period, we record expected credit losses to an allowance for credit losses account. When deemed to be uncollectible, customer accounts are written-off. A rollforward of our allowance for credit losses as of March 31, 2025 and December 31, 2024 are presented in the table below:

(in millions)			Columbia Operations						NIPSCO Operations												Corporate and Other						Total
Balance as of January 1, 2025			$	9.8					$	13.9											$	—					$	23.7
Current period provisions			9.1						4.1												—						13.2
Write-offs charged against allowance			(7.8)						(2.6)												—						(10.4)
Recoveries of amounts previously written off			2.9						0.2												—						3.1
Balance as of March 31, 2025			$	14.0					$	15.6											$	—					$	29.6

(in millions)			Columbia Operations						NIPSCO Operations												Corporate and Other						Total
Balance as of January 1, 2024			$	10.2					$	11.9											$	0.8					$	22.9
Current period provisions			26.7						12.1												—						38.8
Write-offs charged against allowance			(43.9)						(11.0)												(0.8)						(55.7)
Recoveries of amounts previously written off			16.8						0.9												—						17.7
Balance as of December 31, 2024			$	9.8					$	13.9											$	—					$	23.7

4. Noncontrolling Interests

Variable Interest Entities. A VIE is an entity in which the controlling interest is determined through means other than a majority voting interest. NIPSCO is the managing member and operator of two wind JVs, Rosewater and Indiana Crossroads Wind, which have 102 MW and 302 MW of nameplate capacity, respectively. NIPSCO is also the managing member and operator of two solar JVs, Indiana Crossroads Solar and Dunns Bridge I, which have a nameplate capacity of 200 MW and 265 MW, respectively. We have determined that these JVs are VIEs. NIPSCO controls decisions that are significant to these entities' ongoing operations and economic results. Therefore, we have concluded that NIPSCO is the primary beneficiary and have consolidated all four entities.

Members of each respective JV include NIPSCO (who is the managing member) and a tax equity partner. Earnings, tax attributes and cash flows are allocated to both NIPSCO and the tax equity partner in varying percentages by category and over the life of the partnership. NIPSCO and each tax equity partner contributed cash to the respective JV. Once the tax equity partner has earned their negotiated rate of return and have reached a stated contractual date, NIPSCO has the option to purchase the remaining interest in the respective JV, at fair market value, from the tax equity partner. NIPSCO has an obligation to purchase 100% of the electricity generated by each commercially operational JV.

We did not provide any financial or other support during the quarter that was not contractually required.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

Our Condensed Consolidated Balance Sheets (unaudited) included the following assets and liabilities associated with VIEs.

(in millions)			March 31, 2025						December 31, 2024
Net property, plant and equipment			$	1,307.1					$	1,323.8
Current assets			62.0						65.0
Total assets(1)			1,369.1						1,388.8
Current liabilities			51.5						53.7
Asset retirement obligations			53.8						58.3
Finance lease obligations			40.3						40.4
Total liabilities(1)(2)			$	145.6					$	152.4

(1)The assets of each consolidated VIE can only be used to settle obligations of the respective consolidated VIE. The creditors of the liabilities of the VIEs do not have recourse to the general credit of the primary beneficiary. (2)In addition to the amounts disclosed above there is a de minimis amount of other noncurrent assets and liabilities at Rosewater as of March 31, 2025.

Voting Interest Entities. We retain a controlling financial interest in NIPSCO Holdings II and its subsidiaries and consolidate their financial results. During the first quarter of 2025, we received $34.8 million of contributions and we made $17.5 million of distributions to our NIPSCO minority interest holders based on their relative ownership percentages. There were no contributions or distributions made during the first quarter of 2024.

5. Earnings Per Share

The calculations of basic and diluted EPS are based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Diluted EPS includes the incremental effects of the various long-term incentive compensation plans and ATM forward sale agreements under the treasury stock method when the impact would be dilutive (See Note 6, "Equity,").

We use the two-class method of computing earnings per share because we have participating securities in the form of non-vested restricted stock units with a non-forfeitable right to dividend equivalents, for which vesting is predicated solely on the passage of time. The calculation of earnings per share using the two-class method excludes income attributable to these participating securities from the numerator and excludes the dilutive impact of those shares from the denominator.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

The following table presents the calculation of our basic and diluted EPS:

			Three Months Ended March 31,
(in millions, except per share amounts)			2025						2024
Numerator:
Net Income Available to Common Shareholders			$	474.8					$	344.3
Less: Income allocated to participating securities			0.8						0.3
Net Income Available to Common Shareholders - Basic			474.0						344.0
Net Income Available to Common Shareholders - Diluted			$	474.0					$	344.0
Denominator:
Average common shares outstanding - Basic			470.4						447.9
Dilutive potential common shares:
Shares contingently issuable under employee stock plans			1.4						0.9
Shares restricted under employee stock plans			0.7						0.4
ATM forward sale agreements			—						0.2
Average Common Shares - Diluted			472.5						449.4
Earnings per common share:
Basic			$	1.01					$	0.77
Diluted			$	1.00					$	0.77

6. Equity

ATM Program. In February 2024, we entered into eight separate equity distribution agreements pursuant to which we are able to sell up to an aggregate of $900.0 million of our common stock.

In February 2025, we executed a forward sale agreement, which allows us to issue a fixed number of shares at a price to be settled in the future. The forward purchaser under our forward sale agreement borrowed 2,000,000 shares from third parties, which the forward purchaser sold, through its affiliated agent, at a weighted average price of $40.10 per share. We may settle the forward sale agreement in shares, cash or net shares by December 31, 2025. Had we settled all the shares under the forward sale agreement at March 31, 2025, we would have received approximately $79.8 million, based on a net price of $39.92 per share.

In March 2025, we executed a forward sale agreement, which allows us to issue a fixed number of shares at a price to be settled in the future. The forward purchaser under our forward sale agreement borrowed 1,707,320 shares from third parties, which the forward purchaser sold, through its affiliated agent, at a weighted average price of $41.00 per share. We may settle the forward sale agreement in shares, cash or net shares by December 31, 2025. Had we settled all the shares under the forward sale agreement at March 31, 2025, we would have received approximately $69.7 million, based on a net price of $40.80 per share.

As of March 31, 2025, the ATM program (inclusive of the forward sale agreements) had approximately $147.5 million of equity available for issuance. The program expires on December 31, 2025.

Series B and B-1 Preferred Stock. Dividends declared per share for the Series B Preferred Stock were zero and $406.25 during the three months ended March 31, 2025 and 2024, respectively.

On March 15, 2024, we redeemed all 20,000 outstanding shares of Series B Preferred Stock for a redemption price of $25,000 per share and all 20,000 outstanding shares of Series B-1 Preferred Stock for a redemption price of $0.01 per share or $500.0 million in total.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

7. Short-Term Borrowings

We generate short-term borrowings from our revolving credit facility, commercial paper program, and accounts receivable transfer programs. Each of these borrowing sources is described further below.

Revolving Credit Facility. We maintain a revolving credit facility to fund ongoing working capital requirements, including the provision of liquidity support for our commercial paper program, provide for issuance of letters of credit and also for general corporate purposes. Our revolving credit facility has a program limit of $1.85 billion and is comprised of a syndicate of banks. We had no outstanding borrowings under this facility as of March 31, 2025 and December 31, 2024.

Commercial Paper Program. Our commercial paper program has a program limit of $1.85 billion. We had $521.0 million and $604.6 million of commercial paper outstanding with weighted-average interest rates of 4.75% and 4.73% as of March 31, 2025 and December 31, 2024, respectively.

Accounts Receivable Transfer Programs. Columbia of Ohio, NIPSCO, and Columbia of Pennsylvania each maintain a receivables agreement whereby they transfer their customer accounts receivables to third-party financial institutions through consolidated special purpose entities. The three agreements expire between August 2025 and May 2026 and may be further extended if mutually agreed to by the parties thereto.

All receivables transferred to third parties are valued at face value, which approximates fair value due to their short-term nature. The amount of the undivided percentage ownership interest in the accounts receivables transferred is determined in part by required loss reserves under the agreements.

Transfers of accounts receivable are accounted for as secured borrowings resulting in the recognition of short-term borrowings on the Condensed Consolidated Balance Sheets (unaudited). As of March 31, 2025, the maximum amount of debt that could be borrowed related to our accounts receivable programs was $375.0 million.

We had $250.0 million and zero of short-term borrowings related to the securitization transactions as of March 31, 2025 and December 31, 2024, respectively.

For the three months ended March 31, 2025, $250.0 million was recorded as cash flows from financing activities related to the change in short-term borrowings due to securitization transactions. For the three months ended March 31, 2024, $337.6 million was recorded as cash flows used for financing activities related to the change in short-term borrowings due to securitization transactions. Columbia of Ohio, NIPSCO and Columbia of Pennsylvania remain responsible for collecting on the receivables securitized, and the receivables cannot be transferred to another party.

Items listed above, are presented net in the Condensed Statements of Consolidated Cash Flows (unaudited) as their maturities are less than 90 days.

8. Long-Term Debt

On March 27, 2025, we completed the issuance and sale of $750.0 million of 5.850% senior unsecured notes maturing in 2055, which resulted in approximately $739.6 million of net proceeds after discount and debt issuance costs.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

9. Regulatory Matters

Regulatory Assets and Liabilities. We follow the accounting and reporting requirements of ASC Topic 980, which provides that regulated entities account for and report assets and liabilities consistent with the economic effect of regulatory rate-making procedures when the rates established are designed to recover the costs of providing the regulated service and it is probable that such rates will be charged and collected from customers. Certain expenses and credits subject to utility regulation or rate determination normally reflected in income or expense are deferred on the balance sheet and are recognized in the income statement as the related amounts are included in customer rates and recovered from or refunded to customers. We assess the probability of collection for all of our regulatory assets each period. The offset to the regulatory liability associated with our renewable investments included in regulated rates is recorded in "Depreciation and amortization" on the Condensed Statements of Consolidated Income (unaudited).

Renewable generation filings**.** In February 2025, NIPSCO filed a petition with the IURC to, after notice and hearing, issue an order modifying its February 13, 2023 order that approved a power purchase agreement related to the Templeton project and allow for NIPSCO to fully own the Templeton project. A final order expected in October 2025.

NIPSCO Generation filing. In January 2025, NIPSCO Generation, a subsidiary of NIPSCO Holdings II, filed a declination of jurisdiction petition with the IURC related to the ownership, development, financing, construction and operation of generation facilities. This is an administrative filing and is a step in NIPSCO’s effort to set up a framework to accommodate megaload customers, including data centers. An order is expected in the third quarter of 2025.

NIPSCO Electric rate case filing. On February 7, 2025, NIPSCO and certain intervening parties filed a Joint Stipulation and Settlement Agreement with the IURC. Under the Settlement Agreement, new rates are implemented in 2 steps, with implementation of Step 1 rates effective no later than September 2025 and Step 2 rates to be effective no later than March 2026.

10. Risk Management Activities

We are exposed to certain risks relating to our ongoing business operations; namely commodity price risk and interest rate risk. We recognize that the prudent and selective use of derivatives may help to limit volatility in the price of natural gas and manage interest rate exposure.

Risk management assets and liabilities on our derivatives are presented on the Condensed Consolidated Balance Sheets (unaudited) as shown below:

			March 31, 2025												December 31, 2024
(in millions)			Assets						Liabilities						Assets						Liabilities
Current(1)
Derivatives not designated as hedging instruments			$	31.5					$	2.2					$	9.1					$	2.3
Total			$	31.5					$	2.2					$	9.1					$	2.3
Noncurrent(2)
Derivatives not designated as hedging instruments			$	20.2					$	1.4					$	17.9					$	1.2
Total			$	20.2					$	1.4					$	17.9					$	1.2

(1)Current assets and liabilities are presented in "Other current assets" and "Other accruals", respectively, on the Condensed Consolidated Balance Sheets (unaudited).

(2)Noncurrent assets and liabilities are presented in "Deferred charges and other" and "Other noncurrent liabilities and deferred credits", respectively, on the Condensed Consolidated Balance Sheets (unaudited).

Our derivative instruments are subject to enforceable master netting arrangements or similar agreements. No collateral was either received or posted related to our outstanding derivative positions at March 31, 2025. If the above gross asset and liability positions were presented net of amounts owed or receivable from counterparties, we would report a net asset position of $48.1 million and $23.5 million at March 31, 2025 and December 31, 2024, respectively.

Derivatives Not Designated as Hedging Instruments

Commodity price risk management. We, along with our utility customers, are exposed to variability in cash flows associated with natural gas purchases and volatility in natural gas prices. We purchase natural gas for sale and delivery to our retail, commercial and industrial customers, and for most customers the variability in the market price of gas is passed through in their

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

rates. Some of our utility subsidiaries offer programs whereby variability in the market price of gas is assumed by the respective utility. The objective of our commodity price risk programs is to mitigate the gas cost variability on behalf of our customers, associated with natural gas purchases or sales by economically hedging the various gas cost components using a combination of futures, options, forwards or other derivative contracts. At March 31, 2025 and December 31, 2024, we had 73.3 MMDth and 77.8 MMDth, respectively, of net energy derivative volumes outstanding related to our natural gas hedges.

NIPSCO has received IURC approval to lock in a fixed price for its natural gas customers using long-term forward purchase instruments and is limited to 20% of NIPSCO's average annual GCA purchase volume. As of March 31, 2025, the remaining terms of these instruments range from one to two years. Likewise, Columbia of Pennsylvania has received approval for a 24-month rolling hedge program. The hedging program was executed in December 2023, with an effective date of April 1, 2024 and will continue in perpetuity. The program is designed to financially hedge approximately 20% of the customers' annual demand. All gains and losses on these derivative contracts are deferred as regulatory liabilities or assets and are remitted to or collected from customers through the relevant cost recovery mechanism.

The following table summarizes the gains and losses associated with the commodity price risk programs deferred as regulatory assets and liabilities:

(in millions)			March 31, 2025						December 31, 2024
Regulatory Assets
Losses on commodity price risk programs			$	3.7					$	6.5
Regulatory Liabilities
Gains on commodity price risk programs			59.7						28.7

Our derivative instruments measured at fair value as of March 31, 2025 and December 31, 2024 do not contain any credit-risk-related contingent features.

Derivatives Designated as Hedging Instruments

Interest rate risk management. As of March 31, 2025 and December 31, 2024 we had no active interest rate swap positions. The overall net loss related to our multiple settled interest rate swaps is recorded in AOCI. We amortize the net loss over the life of the debt associated with these swaps as we recognize interest expense. These amounts are immaterial for the three months ended March 31, 2025 and 2024 and are recorded in "Interest expense, net" on the Condensed Statements of Consolidated Income (unaudited). Amounts expected to be reclassified to earnings during the next twelve months are immaterial. See Note 15, "Accumulated Other Comprehensive Loss," for additional information.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

11. Fair Value

A. Fair Value Measurements

Recurring Fair Value Measurements

The following tables present financial assets and liabilities measured and recorded at fair value on our Condensed Consolidated Balance Sheets (unaudited) on a recurring basis and their level within the fair value hierarchy as of March 31, 2025 and December 31, 2024:

Recurring Fair Value Measurements March 31, 2025 (in millions)			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Balance as of March 31, 2025
Assets
U.S. Treasury debt securities(1)			$	41.5					$	—					$	—					$	41.5
Risk management assets			—						51.7						—						51.7
Available-for-sale debt securities			—						81.2						—						81.2
Total			$	41.5					$	132.9					$	—					$	174.4
Liabilities
Risk management liabilities			$	—					$	3.6					$	—					$	3.6
Total			$	—					$	3.6					$	—					$	3.6

(1) Treasury bills are presented in "Cash and cash equivalents" and "Restricted cash" on the Consolidated Balance Sheets.

Recurring Fair Value Measurements December 31, 2024 (in millions)			Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Balance as of December 31, 2024
Assets
U.S. Treasury debt securities(1)			$	80.1					$	—					$	—					$	80.1
Risk management assets			—						27.0						—						27.0
Available-for-sale debt securities			—						86.7						—						86.7
Total			$	80.1					$	113.7					$	—					$	193.8
Liabilities
Risk management liabilities			$	—					$	3.5					$	—					$	3.5
Total			$	—					$	3.5					$	—					$	3.5

(1) Treasury bills are presented in "Cash and cash equivalents" and "Restricted cash" on the Consolidated Balance Sheets.

Risk Management Assets and Liabilities. Risk management assets and liabilities include exchange-traded NYMEX futures and NYMEX options and non-exchange-based forward purchase contracts.

Level 1- When utilized, exchange-traded derivative contracts are based on unadjusted quoted prices in active markets and are classified within Level 1. These financial assets and liabilities are secured with cash on deposit with the exchange; therefore, nonperformance risk has not been incorporated into these valuations. These financial assets and liabilities are deemed to be cleared and settled daily by NYMEX as the related cash collateral is posted with the exchange. As a result of this exchange rule, NYMEX derivatives are considered to have no fair value at the balance sheet date for financial reporting purposes, and are presented in Level 1 net of posted cash; however, the derivatives remain outstanding and are subject to future commodity price fluctuations until they are settled in accordance with their contractual terms.

Level 2- Certain non-exchange-traded derivatives are valued using broker or over-the-counter, on-line exchanges. In such cases, these non-exchange-traded derivatives are classified within Level 2. Non-exchange-based derivative instruments include swaps, forwards, and options. In certain instances, these instruments may utilize models to measure fair value. We use a similar model

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

to value similar instruments. Valuation models utilize various inputs that include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, other observable inputs for the asset or liability and market-corroborated inputs, (i.e., inputs derived principally from or corroborated by observable market data by correlation or other means). Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized within Level 2.

Level 3- Certain derivatives trade in less active markets with a lower availability of pricing information and models may be utilized in the valuation. When such inputs have a significant impact on the measurement of fair value, the instrument is categorized within Level 3.

Credit risk is considered in the fair value calculation of derivative instruments that are not exchange-traded. Credit exposures are adjusted to reflect collateral agreements that reduce exposures. As of March 31, 2025 and December 31, 2024, there were no material transfers between fair value hierarchies. Additionally, there were no changes in the method or significant assumptions used to estimate the fair value of our financial instruments.

NIPSCO and Columbia of Pennsylvania have entered into long-term forward natural gas purchase instruments to lock in a fixed price for natural gas customers. We value these contracts using a pricing model that incorporates market-based information when available, as these instruments trade less frequently and are classified within Level 2 of the fair value hierarchy. For additional information, see Note 10, "Risk Management Activities."

Available-for-Sale Debt Securities. Available-for-sale debt securities are investments pledged as collateral for trust accounts related to our wholly owned insurance company. We value U.S. Treasury, corporate debt and mortgage-backed securities using a matrix pricing model that incorporates market-based information. These securities trade less frequently and are classified within Level 2.

Our available-for-sale debt securities impairments are recognized periodically using an allowance approach. At each reporting date, we utilize a quantitative and qualitative review process to assess the impairment of available-for-sale debt securities at the individual security level. For securities in a loss position, we evaluate our intent to sell or whether it is more-likely-than-not that we will be required to sell the security prior to the recovery of its amortized cost. If either criteria is met, the loss is recognized in earnings immediately, with the offsetting entry to the carrying value of the security. If both criteria are not met, we perform an analysis to determine whether the unrealized loss is related to credit factors. The analysis focuses on a variety of factors that include, but are not limited to, downgrade on ratings of the security, defaults in the current reporting period or projected defaults in the future, the security's yield spread over treasuries, and other relevant market data. If the unrealized loss is not related to credit factors, it is included in other comprehensive income. If the unrealized loss is related to credit factors, the loss is recognized as credit loss expense in earnings during the period, with an offsetting entry to the allowance for credit losses. The amount of the credit loss recorded to the allowance account is limited by the amount at which the security's fair value is less than its amortized cost basis. If certain amounts recorded in the allowance for credit losses are deemed uncollectible, the allowance on the uncollectible portion will be charged off, with an offsetting entry to the carrying value of the security. Subsequent improvements to the estimated credit losses of available-for-sale debt securities will be recognized immediately in earnings. Continuous credit monitoring and portfolio credit balancing mitigates our risk of credit losses on our available-for-sale debt securities.

The amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value of available-for-sale securities at March 31, 2025 and December 31, 2024 were:

March 31, 2025 (in millions)			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses**(1)**						Allowance for Credit Losses						Fair Value
Available-for-sale debt securities
Corporate/Other debt securities			$	85.5					$	0.6					$	(4.7)					$	(0.2)					$	81.2
Total			$	85.5					$	0.6					$	(4.7)					$	(0.2)					$	81.2
December 31, 2024 (in millions)			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses**(2)**						Allowance for Credit Losses						Fair Value
Available-for-sale debt securities
Corporate/Other debt securities			$	91.9					$	0.5					$	(5.6)					$	(0.1)					$	86.7
Total			$	91.9					$	0.5					$	(5.6)					$	(0.1)					$	86.7

(1)Fair value of Corporate/Other debt securities in an unrealized loss position without an allowance for credit losses is $63.7 million at March 31, 2025.

(2)Fair value of Corporate/Other debt securities in an unrealized loss position without an allowance for credit losses is $70.1 million at December 31, 2024.

The cost of maturities sold is based upon specific identification. Net realized gains and losses on available-for-sale securities were $0.0 million and $0.4 million for the three months ended March 31, 2025 and 2024, respectively.

Non-recurring Fair Value Measurements

We measure the fair value of certain assets, primarily goodwill, on a non-recurring basis, typically when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

B. Other Fair Value Disclosures for Financial Instruments. The carrying amount of cash and cash equivalents, restricted cash, notes receivable, customer deposits and short-term borrowings is a reasonable estimate of fair value due to their liquid or short-term nature. Our long-term borrowings are recorded at historical amounts.

The following method and assumptions were used to estimate the fair value of each class of financial instruments.

Long-term Debt. The fair value of outstanding long-term debt is estimated based on the quoted market prices for the same or similar securities. Certain premium costs associated with the early settlement of long-term debt are not taken into consideration in determining fair value. These fair value measurements are classified within Level 2 of the fair value hierarchy. As of March 31, 2025, there was no change in the method or significant assumptions used to estimate the fair value of long-term debt.

The carrying amount and estimated fair values of these financial instruments were as follows:

(in millions)			Carrying Amount as of March 31, 2025						Estimated Fair Value as of March 31, 2025						Carrying Amount as of Dec. 31, 2024						Estimated Fair Value as of Dec. 31, 2024
Long-term debt (including current portion)			$	14,114.1					$	13,292.4					$	13,355.7					$	12,505.2

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

12. Income Taxes

Our interim effective tax rates reflect the estimated annual effective tax rates for 2025 and 2024 applied to year-to-date pretax income, adjusted for tax expense associated with certain discrete items. The effective tax rates for the three months ended March 31, 2025 and 2024 were 16.7% and 16.0%, respectively. These effective tax rates differ from the federal statutory tax rate of 21% primarily due to net income attributable to noncontrolling interest, amortization of excess deferred income taxes, federal tax credits net of deferred regulatory liabilities, state income taxes, and other permanent book-to-tax differences.

The increase in the three month effective tax rate of 0.7% in 2025 compared to 2024 is primarily driven by higher state income taxes and an increase to pretax income, which reduced the relative impact of permanent differences.

As of March 31, 2025, there have been no material changes to our unrecognized tax benefits or possible changes that could reasonably be expected to occur during the next twelve months. See Note 15 to the Company’s Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2024, for a discussion of these unrecognized tax benefits.

13. Pension and Other Postemployment Benefits

We provide defined contribution plans and noncontributory defined benefit retirement plans that cover certain of our employees. Benefits under the defined benefit retirement plans reflect the employees' compensation, years of service and age at retirement. Additionally, we provide health care and life insurance benefits for certain retired employees. The majority of employees may become eligible for these benefits if they reach retirement age while working for us. The expected cost of such benefits is accrued during the employees' years of service. We determined that, for certain rate-regulated subsidiaries, the future recovery of postretirement benefit costs is probable, and we record regulatory assets and liabilities for amounts that would otherwise have been recorded to expense or accumulated other comprehensive loss. Current rates of rate-regulated companies include postretirement benefit costs, including amortization of the regulatory assets and liabilities that arose prior to inclusion of these costs in rates. For most plans, cash contributions are remitted to grantor trusts.

For the three months ended March 31, 2025 and 2024, we contributed $0.5 million and $0.7 million, respectively to our pension plans and $4.9 million and $5.4 million, respectively to our OPEB plans.

The following table provides the components of the plans' actuarially determined net periodic benefit cost for the three months ended March 31, 2025 and 2024:

			Pension Benefits												OPEB
Three Months Ended March 31, (in millions)			2025						2024						2025						2024
Components of Net Periodic Benefit Cost**(1)**
Service cost			$	4.9					$	5.4					$	1.0					$	1.3
Interest cost			16.0						16.3						5.6						5.4
Expected return on assets			(23.1)						(23.8)						(4.2)						(4.0)
Amortization of prior service credit			—						—						(0.4)						(0.4)
Recognized actuarial loss			6.4						7.2						0.4						0.8
Total Net Periodic Benefit Cost			$	4.2					$	5.1					$	2.4					$	3.1
(1)The service cost component and all non-service cost components of net periodic benefit (income) cost are presented in "Operation and maintenance" and "Other, net," respectively, on the Condensed Statements of Consolidated Income (unaudited).

14. Other Commitments and Contingencies

A. Guarantees and Indemnities. We and certain of our subsidiaries enter into various agreements providing financial or performance assurance to third parties on behalf of certain subsidiaries as a part of normal business. Such agreements include guarantees and stand-by letters of credit. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiaries' intended commercial purposes. As of March 31, 2025 and December 31, 2024, we had issued stand-by letters of credit of $9.4 million for the benefit of third parties.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

We provide guarantees related to our future performance under BTAs for our renewable generation projects. At March 31, 2025 and December 31, 2024, our guarantees for multiple BTAs totaled $465.4 million and $1,127.5 million, respectively. The amount of each guaranty will decrease upon the substantial completion of the construction of the facilities. See ''- D. Other Matters - Generation Transition,'' below for more information.

We provide guarantees related to some of our rail and pipeline service agreements. As of March 31, 2025 and December 31, 2024, if we do not meet our contractual obligations under the terms of these agreements we would be required to pay up to a maximum of $61.7 million.

B. Legal Proceedings. From time to time, various legal and regulatory claims and proceedings are pending or threatened against the Company and its subsidiaries. While the amounts claimed may be substantial, the Company is unable to predict with certainty the ultimate outcome of such claims and proceedings. The Company establishes reserves whenever it believes it to be appropriate for pending litigation matters. However, the actual results of resolving the pending litigation matters may be substantially higher than the amounts reserved. If one or more matters were decided against us, the effects could be material to our results of operations in the period in which we would be required to record or adjust the related liability and could also be material to our cash flows in the periods that we would be required to pay such liability. Due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim, proceeding or investigation would not have a material adverse effect on our results of operations, financial position or liquidity.

Other Claims and Proceedings. We are also party to other claims, regulatory and legal proceedings arising in the ordinary course of business in each state in which we have operations, and based upon an investigation of these matters and discussion with legal counsel, we believe the ultimate outcome of such other legal proceedings to be individually, or in aggregate, not material at this time.

C. Environmental Matters. Our operations are subject to environmental statutes and regulations related to air quality, water quality, hazardous waste and solid waste. We believe that we are in substantial compliance with the environmental regulations currently applicable to our operations.

It is management's continued intent to address environmental issues in cooperation with regulatory authorities in such a manner as to achieve mutually acceptable compliance plans. However, there can be no assurance that fines and penalties will not be incurred. Management expects a majority of environmental assessment and remediation costs and asset retirement costs, further described below, to be recoverable through rates.

As of March 31, 2025 and December 31, 2024, we had recorded a liability of $90.4 million and $91.8 million, respectively, to cover environmental remediation at various sites. This liability is included in "Other accruals" and "Other noncurrent liabilities and deferred credits" in the Condensed Consolidated Balance Sheets (unaudited). We recognize costs associated with environmental remediation obligations when the incurrence of such costs is probable and the amounts can be reasonably estimated. The original estimates for remediation activities may differ materially from the amount ultimately expended. The actual future expenditures depend on many factors, including laws and regulations, the nature and extent of impact and the method of remediation. These expenditures are not currently estimable at some sites. We periodically adjust our liability as information is collected and estimates become more refined.

CERCLA. Our subsidiaries are potentially responsible parties at waste disposal sites under CERCLA and similar state laws. Under CERCLA, each potentially responsible party can be held jointly, severally and strictly liable for the remediation costs as the EPA, or state, can allow the parties to pay for remedial action or perform remedial action themselves and request reimbursement from the potentially responsible parties. Our affiliates have retained CERCLA environmental liabilities, including remediation liabilities, associated with certain current and former operations. At this time, we cannot estimate the full cost of remediating properties that have not yet been investigated, but it is possible that the future costs could be material to the Condensed Consolidated Financial Statements (unaudited).

MGP. We maintain a program to identify and investigate former MGP sites where our subsidiaries or predecessors may have liability. The program has identified 51 such sites where liability is probable. Remedial actions at many of these sites are being overseen by state or federal environmental agencies through consent agreements or voluntary remediation agreements.

We utilize a probabilistic model to estimate our future remediation costs related to MGP sites. The model was prepared with the assistance of a third party and incorporates our experience and general industry experience with remediating MGP sites. We complete an annual refresh of the model in the second quarter of each fiscal year. Our total estimated liability related to the facilities subject to remediation was $83.8 million and $86.4 million at March 31, 2025 and December 31, 2024, respectively.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

The liability represents our best estimate of the probable cost to remediate the MGP sites. Our model indicates that it is reasonably possible that remediation costs could vary by as much as $16.3 million in addition to the costs noted above. Remediation costs are estimated based on the best available information, applicable remediation standards at the balance sheet date and experience with similar facilities.

CCRs. NIPSCO continues to meet the compliance requirements established by the EPA for the regulation of CCRs. The CCR rule requirements currently in effect required revisions to previously recorded legal obligations associated with the retirement of certain NIPSCO facilities. The actual asset retirement costs related to the CCR rule may vary substantially from the estimates used to record the increased asset retirement obligation due to the uncertainty about the requirements that will be established by environmental authorities, compliance strategies that will be used and the preliminary nature of available data used to estimate costs. As allowed by the rule, NIPSCO will continue to collect data over time to determine the specific compliance solutions and associated costs and, as a result, the actual costs may vary.

On May 8, 2024, the EPA finalized changes to the current CCR regulations ("Legacy CCR Rule") which address inactive surface impoundments at inactive facilities, referred to as legacy impoundments, and CCR management units ("CCRMUs") at inactive and active facilities. The rule largely requires these newly regulated units to conform to existing requirements, such as groundwater monitoring, closure requirements, and post-closure care. Facility evaluations for CCRMUs are required by February 2026 and 2027. NIPSCO continues to assess whether existing legal obligations associated with the retirement of certain facilities must be revised and to estimate probable additional required asset retirement costs. NIPSCO expects to receive recovery of any such costs through existing and future depreciation rates.

D. Other Matters.

Generation Transition. NIPSCO has executed several BTAs with developers to construct renewable generation facilities. In October 2024, NIPSCO contracted with a developer to convert the previously approved Templeton PPA to a BTA and in February 2025, has filed a CPCN with the IURC, seeking approval of the full ownership BTA structure. Other than Templeton BTA, NIPSCO has received IURC approval for all of its BTAs. In addition to IURC approval, NIPSCO's purchase obligation under certain BTAs is dependent on timely completion of construction. Certain agreements require NIPSCO to make partial payments upon the developer's completion of significant construction milestones. With respect to BTAs for which tax equity partnerships are utilized, once the tax equity partner has earned its negotiated rate of return and we have reached the agreed upon contractual date, NIPSCO has the option to purchase at fair market value the remaining interest in the JV from the tax equity partner.

In January 2025, Fairbanks achieved mechanical completion, resulting in NIPSCO making a $336.6 million payment to the developer. The company recorded a liability totaling $144.1 million on the Condensed Consolidated Balance Sheets (unaudited) as other accruals, which will be paid to the developer upon substantial completion. In January 2025, Dunns Bridge II achieved substantial completion, resulting in NIPSCO making a $217.6 million payment to the developer in February 2025.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

15. Accumulated Other Comprehensive Loss

The following tables display the components of Accumulated Other Comprehensive Loss, net of tax:

(in millions)			Gains and Losses on Securities**(1)**						Gains and Losses on Cash Flow Hedges**(1)**						Pension and OPEB Items**(1)**						Accumulated Other Comprehensive Loss**(1)**
Balance as of January 1, 2025			$	(4.0)					$	(13.2)					$	(13.2)					$	(30.4)
Other comprehensive income before reclassifications			0.8						—						0.3						1.1
Amounts reclassified from accumulated other comprehensive loss			—						(0.1)						0.2						0.1
Net current-period other comprehensive income (loss)			0.8						(0.1)						0.5						1.2
Balance as of March 31, 2025			$	(3.2)					$	(13.3)					$	(12.7)					$	(29.2)

(1)All amounts are net of tax. Amounts in parentheses indicate debits.

(in millions)			Gains and Losses on Securities**(1)**						Gains and Losses on Cash Flow Hedges**(1)**						Pension and OPEB Items**(1)**						Accumulated Other Comprehensive Loss**(1)**
Balance as of January 1, 2024			$	(7.3)					$	(12.8)					$	(13.5)					$	(33.6)
Other comprehensive loss before reclassifications			(0.6)						(0.2)						(0.1)						(0.9)
Amounts reclassified from accumulated other comprehensive loss			0.3						0.1						0.3						0.7
Net current-period other comprehensive income (loss)			(0.3)						(0.1)						0.2						(0.2)
Balance as of March 31, 2024			$	(7.6)					$	(12.9)					$	(13.3)					$	(33.8)

(1)All amounts are net of tax. Amounts in parentheses indicate debits.

16. Business Segment Information

Our reportable segments reflect the manner in which our business is managed and our resources are allocated. Our operations are divided into two primary reportable segments, the Columbia Operations and the NIPSCO Operations segments. Columbia Operations aggregates the results of the fully regulated and wholly owned subsidiaries of NiSource Gas Distribution Group, Inc. (a holding company that owns Columbia of Kentucky, Columbia of Maryland, Columbia of Ohio, Columbia of Pennsylvania, and Columbia of Virginia). Each Columbia distribution company is an operating segment which we aggregate to form the Columbia Operations reportable segment. NIPSCO Operations includes the results of NIPSCO Holdings I and its majority-owned subsidiaries, including NIPSCO, which has fully regulated gas and electric operations in northern Indiana.

The remainder of our operations, which are not significant enough on a stand-alone basis to warrant treatment as a reportable segment, are presented as "Corporate and Other" and primarily are comprised of interest expense on holding company debt, and unallocated corporate costs and activities. Refer to Note 3, "Revenue Recognition," for additional information on our segments and their sources of revenues. The following table provides information about our reportable segments. We use operating income as the primary measurement of performance for each of the reportable segments and make decisions on financing, dividends and taxes at the corporate level on a consolidated basis. We provide this measure to our Chief Operating Decision Maker, the CEO, who utilizes it to assess performance and allocation resources at the operating segment level based on budget-to-actual and actual-to-actual variances. Segment revenues include intersegment sales to affiliated subsidiaries, which are eliminated in consolidation. Affiliated sales are recognized on the basis of prevailing market, regulated prices or at levels provided for under contractual agreements. Operating income is derived from revenues and expenses directly associated with each segment.

Table of Contents****`

ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

Three Months Ended March 31, 2025
(in millions)			Columbia Operations						NIPSCO Operations						Total of Reportable Segments
Operating Revenues
External Revenue			$	1,240.6					$	941.4					$	2,182.0
Intersegment Revenue			3.2						0.3						3.5
Total Operating Revenue			$	1,243.8					$	941.7					$	2,185.5
Cost of energy			379.8						267.7						647.5
O&M			243.0						202.0						445.0
Depreciation			108.2						141.3						249.5
Total other taxes			67.0						18.5						85.5
Other segment items(1)			—						0.3						0.3
Operating Income			$	445.8					$	311.9					$	757.7

(1)Other segment items consists of Loss on Sale or Impairment of Assets and other segment income or expenses deemed insignificant which are used to reach our measurement of segment profit or loss, Operating Income.

Three Months Ended March 31, 2024
(in millions)			Columbia Operations						NIPSCO Operations						Total of Reportable Segments
Operating Revenues
External Revenue			$	953.7					$	752.4					$	1,706.1
Intersegment Revenue			3.2						0.3						3.5
Total Operating Revenue			956.9						752.7						1,709.6
Cost of energy			228.8						196.2						425.0
O&M			210.7						191.3						402.0
Depreciation			98.2						132.7						230.9
Total other taxes			57.2						16.1						73.3
Operating Income			$	362.0					$	216.4					$	578.4

The following table provides information about the assets of our reportable segments included in the Condensed Consolidated Balance Sheet (unaudited):

(in millions)			March 31, 2025						December 31, 2024
Assets
Columbia Operations			$	14,962.2					$	14,769.5
NIPSCO Operations			16,807.4						15,823.5
Corporate and Other			1,335.5						1,195.1
Consolidated Assets			$	33,105.1					$	31,788.1

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ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

To reconcile the segment tables above to consolidated NiSource:

Three Months Ended March 31, 2025
(in millions)			Total Reportable Segments						Corporate and Other						Eliminations						Consolidated NiSource
Total Operating Revenue			$	2,185.5					$	145.4					$	(147.7)					$	2,183.2
Operating Income			757.7						1.7						—						759.4

Three Months Ended March 31, 2024
(in millions)			Total Reportable Segments						Corporate and Other						Eliminations						Consolidated NiSource
Total Operating Revenue			$	1,709.6					$	140.1					$	(143.4)					$	1,706.3
Operating Income			578.4						5.0						—						583.4

17. Other, Net

The following table displays the components of Other, Net included on the Condensed Statements of Consolidated Income (unaudited):

			Three Months Ended March 31,
(in millions)			2025						2024
Interest income			$	2.0					$	2.5
AFUDC equity			9.2						11.3
Pension and other postretirement non-service cost			(3.8)						(2.2)
Miscellaneous			(1.6)						(2.4)
Total Other, net			$	5.8					$	9.2

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ITEM 1. FINANCIAL STATEMENTS (continued)

NiSource Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) (continued)

18. Supplemental Disclosures of Cash Flow Information

The following table displays the components of Working Capital on the Statements of Consolidated Cash flows (unaudited):

			Three Months Ended March 31,
(in millions)			2025						2024
Accounts receivable			$	(141.5)					$	16.4
Inventories			127.7						173.8
Accounts payable			(59.3)						(90.6)
Customer deposits and credits			(125.6)						(104.9)
Taxes accrued			34.2						7.5
Interest accrued			(14.8)						12.4
Exchange gas receivable/payable			40.9						(114.0)
Other accruals			28.6						(7.4)
Prepayments and other current assets			(20.0)						(67.7)
Accrued compensation and employee benefits			(75.5)						(60.7)
Total change in working capital			$	(205.3)					$	(235.2)

Three Months Ended March 31, (in millions)			2025						2024
Non-cash transactions:
Capital expenditures included in current liabilities			$	394.2					$	239.7
Dividends declared but not paid			134.4						119.0

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NiSource Inc.

Index			Page
Executive Summary			36
Summary of Consolidated Financial Results			38
Results and Discussion of Segment Operations			39
Columbia Operations			40
NIPSCO Operations			43
Liquidity and Capital Resources			48
Regulatory, Environmental and Safety Matters			52
Market Risk Disclosures			55
Other Information			56

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

NiSource Inc.

EXECUTIVE SUMMARY

This Management's Discussion and Analysis of Financial Condition and Results of Operations ("Management’s Discussion") includes management’s analysis of past financial results and certain potential factors that may affect future results, potential future risks and approaches that may be used to manage those risks. See "Note regarding forward-looking statements" at the beginning of this report for a list of factors that may cause results to differ materially.

Management's Discussion is designed to provide an understanding of our operations and financial performance and should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

We are an energy holding company under the Public Utility Holding Company Act of 2005 whose utility subsidiaries are fully regulated natural gas and electric utility companies serving customers in six states. We generate substantially all of our operating income through these rate-regulated businesses, which are summarized for financial reporting purposes into two primary reportable segments: Columbia Operations and NIPSCO Operations. Refer to ''Note 16, "Business Segment Information," for further discussion of our business segments.

Our vision is to be a premier, innovative and trusted energy partner. We exist to deliver safe, reliable energy that drives value to our customers. In order to achieve this goal, we seek to develop strategies that benefit all stakeholders as we (i) support long-term infrastructure investment and safety programs to better serve our customers, (ii) align our tariff structures with our cost structure, and (iii) drive value and enable growth in an evolving energy ecosystem. These strategies focus on improving safety and reliability, enhancing customer experience, pursuing regulatory and legislative initiatives to increase accessibility for customers currently not on our gas and electric service, ensuring customer affordability and reducing emissions while generating sustainable returns. The safety of our customers, communities and employees remains our focus. Serving as a guiding practice for our SMS, NiSource is certified in conformance to the American Petroleum Institute Recommended Practice 1173, which is the foundation to our journey towards operational excellence.

Energy Transition: We continue to advance our energy transition strategy, primarily through the continuation and enhancement of existing programs, such as retiring and replacing remaining coal-fired electric generation by 2028 with a balanced mix of low- or zero-emission electric generation, ongoing pipe replacement and modernization programs, and deployment of advanced leak detection and repair. Our electric generation transition, initiated through our 2018 Integrated Resource Plan ("2018 Plan") is well underway, and we are continually adjusting to the dynamic energy landscape. As of March 31, 2025, we have placed in service owned renewable and storage projects, developed under BTAs, with combined nameplate capacities of 1,500 MW and 101 MW respectively. Renewable PPA projects with a combined nameplate capacity of 600 MW have also been placed in service. In addition, renewable BTA projects with combined nameplate capacities of 650 MW, and renewable PPA projects with a combined nameplate capacity of 600 MW were under development as of March 31, 2025, all of which have received IURC approval, with the exception of the Templeton project, which is currently pending approval. The capacity figure for BTA projects in development includes the Templeton project. In October 2024, NIPSCO contracted with a developer to convert the previously approved Templeton PPA to a BTA and in February 2025 filed a CPCN with the IURC. In 2024, the IURC approved full ownership of the Cavalry, Dunns Bridge II, Fairbanks and Gibson and the cost of the Fairbanks project as contemplated in contractual actions. Full ownership of these projects allows NIPSCO to leverage provisions of the IRA, monetize renewable tax credits more effectively, and provide enhanced benefits to customers as compared to the previous tax equity partnership structure approved by the IURC. We remain on track to retire R.M Schahfer's remaining two coal units by the end of 2025. For additional information, see "Results and Discussion of Operations - NIPSCO Operations," in this Management's Discussion, and see item 1A. Risk Factors in this Quarterly Report on Form 10-Q.

NIPSCO's 2021 Integrated Resource Plan ("2021 Plan") lays out a timeline to retire the Michigan City Generating Station by the end of 2028. The 2021 Plan calls for the replacement of the retiring units with a diverse portfolio of resources including demand side management resources, incremental solar, stand-alone energy storage and upgrades to existing facilities at the Sugar Creek Generating Station, among other steps. In 2024, Sugar Creek completed an Advanced Gas Path Tech upgrade that enhanced its overall production capabilities. Additionally, the 2021 Plan calls for a new natural gas peaking facility to replace existing vintage gas peaking facilities at the R.M. Schahfer Generating Station to support system reliability and resiliency, and upgrades to the electric transmission system. In October 2024, we received approval for the issuance of a CPCN for an approximately 400 MW natural gas peaking generation facility from the IURC to replace R.M. Schahfer's existing peaking facilities. The planned retirement of the two vintage gas peaking facilities at the R.M. Schahfer Generating Station is also expected to occur by the end of 2028. Final retirement dates for these units, as well as Michigan City, will be subject to MISO approval.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

NiSource Inc.

NIPSCO's 2024 Integrated Resource Plan ("2024 Plan") was submitted to the IURC on December 9, 2024. The 2024 Plan maintains the retirement decisions and capacity additions identified in the 2018 and 2021 Integrated Resource Plans and calls for additional generation resources through 2029 to support capacity requirements. The 2024 Plan informs future generation investments required to ensure reliability for NIPSCO’s customers and incorporates factors such as anticipated load growth from data centers and other economic development opportunities, new EPA emissions rules, and evolving MISO resource accreditation rules. Customer interest related to data center development in our northern Indiana service territory has accelerated. We believe data center development can enhance our local tax base, diversify the employment base across the state of Indiana, and provide greater value to existing customers and shareholders. We are evaluating the potential for data center development in our service territory, including ways to effectively manage the potential power demand, generation sources, and transmission capabilities to meet potential load growth from any data center customer, while at the same time focusing on our environmental goals. We expect the management of large load growth would require new generation resources. We plan to move as efficiently as possible while maintaining the integrity of our commercial, planning, regulatory, procurement and operational execution processes.

We continue to enhance safety and reduce methane emissions on our gas systems through modernization programs and utilization of advanced leak detection and repair. In addition, we plan to advance other low- or zero-emission energy resources and technologies, such as hydrogen and renewable natural gas.

Transformation: Our enterprise-wide transformation roadmap focuses on operational excellence, safety, operation and maintenance management, and unlocking efficiencies. We are committed to identifying and implementing initiatives that will enable us to streamline work and improve logistics company-wide. These efforts include investments in proven technologies backed with standardized processes that will change the way we plan, schedule, and execute work in the field and how we engage and provide service to our customers. Taken together, all of our optimization initiatives will prioritize safety and continue to optimize our long-term growth profile. We are making progress towards our transformation goals with a successful completion of the first phase of our WAM program, an enterprise resource planning system that will optimize the scheduling, dispatch, and execution of our field operations. This phase of the program implemented the solution within our electric distribution and transmission operations, while remaining phases for gas distribution operations and generation operations are anticipated to be completed by the end of 2025. In addition to transforming technology to enhance our employee and customer experiences, these programs will also ensure we remain on modern systems that help reduce enterprise risk related to end-of-life systems.

Economic Environment: We continue to monitor risks related to order and delivery lead times for construction and other materials, potential unavailability of materials due to global shortages in raw materials, and decreased construction labor productivity in the event of disruptions in the availability of materials. We continue to see increasing prices associated with certain materials and supplies and are tracking the potential impact of new and proposed tariffs. To the extent that work plan delays occur or our costs increase, our business operations, results of operations, cash flows, and financial condition could be materially adversely affected.

We are faced with increased competition for employee and contractor talent in the current labor market which has resulted in increased costs to attract and retain talent. We are ensuring that we use all internal human capital programs (development, leadership enablement programs, succession, performance management) to promote retention of our current employees along with having a competitive and attractive appeal for potential recruits. Our flexible work arrangements, where possible, support a broader talent footprint for sourcing talent needed and for remaining competitive.

We continue to evaluate our financing plan to manage interest expense and exposure to rates. For more information on interest rate risk, see "Market Risk Disclosures".

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

NiSource Inc.

Summary of Consolidated Financial Results

A summary of our consolidated financial results for the three months ended March 31, 2025 and 2024 are presented below:

			Three Months Ended March 31,
(in millions, except per share amounts)			2025						2024						Favorable (Unfavorable)
Operating Revenues			$	2,183.2					$	1,706.3					$	476.9
Operating Expenses
Cost of energy			647.5						425.0						(222.5)
Other Operating Expenses			776.3						697.9						(78.4)
Total Operating Expenses			1,423.8						1,122.9						(300.9)
Operating Income			759.4						583.4						176.0
Total Other Deductions, Net			(127.0)						(107.1)						(19.9)
Income Taxes			105.7						76.0						(29.7)
Net Income			526.7						400.3						126.4
Net income attributable to noncontrolling interest			51.9						35.3						(16.6)
Net Income Attributable to NiSource			474.8						365.0						109.8
Preferred dividends and redemption premium			—						(20.7)						20.7
Net Income Available to Common Shareholders			474.8						344.3						130.5
Earnings Per Share
Basic Earnings Per Share			$	1.01					$	0.77					$	0.24
Diluted Earnings Per Share			$	1.00					$	0.77					$	0.23

The majority of the costs of energy in both segments are tracked costs that are passed through directly to the customer, resulting in an equal and offsetting amount reflected in operating revenues.

The increase in net income available to common shareholders for the three months ended March 31, 2025 was primarily due to higher revenues driven by our capital investments, partially offset by higher operating expenses, including increased depreciation expense attributed to our net plant balances and higher interest expense. See Note 6, "Equity," in the Notes to the Condensed Consolidated Financial Statements (unaudited) for additional information.

For additional information on operating income variance drivers see "Results and Discussion of Segment Operations" for Columbia Operations and NIPSCO Operations in this Management's Discussion.

Income Taxes

Refer to Note 12, "Income Taxes," in the Notes to the Condensed Consolidated Financial Statements (unaudited) for information on income taxes and the change in the effective tax rates for the periods presented.

We continue to monitor and evaluate the impacts of final or proposed income tax regulations issued on provisions of the IRA including but not limited to renewable energy tax credits.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

NiSource Inc.

RESULTS AND DISCUSSION OF SEGMENT OPERATIONS

Presentation of Segment Information

Columbia Operations aggregates the results of the fully regulated and wholly owned subsidiaries of NiSource Gas Distribution Group, Inc. Each Columbia distribution company is an operating segment which we aggregate to form the Columbia Operations reportable segment. NIPSCO Operations aggregates the results of NIPSCO Holdings I, and its majority-owned subsidiaries, including NIPSCO, which has both fully regulated gas and electric operations in northern Indiana. The remainder of our operations, which are not significant enough on a stand-alone basis to warrant treatment as a reportable segment, are presented as "Corporate and Other" within the Notes to the Condensed Consolidated Financial Statements (unaudited) and primarily are comprised of interest expense on holding company debt, and unallocated corporate costs and activities.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

NiSource Inc.

Columbia Operations

Financial and operational data for the Columbia Operations segment for the three months ended March 31, 2025 and 2024 are presented below.

			Three Months Ended March 31,
(in millions)			2025						2024						Favorable (Unfavorable)
Operating Revenues			$	1,243.8					$	956.9					$	286.9
Operating Expenses
Cost of energy			379.8						228.8						(151.0)
Operation and maintenance			243.0						210.7						(32.3)
Depreciation and amortization			108.2						98.2						(10.0)
Other taxes			67.0						57.2						(9.8)
Total Operating Expenses			798.0						594.9						(203.1)
Operating Income			$	445.8					$	362.0					$	83.8
Revenues
Residential			$	858.0					$	665.8					$	192.2
Commercial			308.1						225.3						82.8
Industrial			48.2						40.4						7.8
Off-System			22.3						12.7						9.6
Other			7.2						12.7						(5.5)
Total			$	1,243.8					$	956.9					$	286.9
Sales and Transportation (MMDth)
Residential			90.8						77.0						13.8
Commercial			61.9						54.3						7.6
Industrial			72.1						68.5						3.6
Off-System			5.9						7.3						(1.4)
Other			0.2						0.2						—
Total			230.9						207.3						23.6
Heating Degree Days**(1)**			2,670						2,284						386
Normal Heating Degree Days**(1)**			2,666						2,739						(73)
% Warmer than Normal			—		%				(17)		%
% Colder than prior year			17		%
Columbia Operations Customers
Residential			2,233,968						2,222,345						11,623
Commercial			189,918						189,394						524
Industrial			1,988						1,980						8
Other			5						5						—
Total			2,425,879						2,413,724

(1) Heating degree figures represent averages of the five jurisdictions served by Columbia Operations.

Comparability of operation and maintenance expenses, depreciation and amortization, and other taxes may be impacted by regulatory, depreciation, and tax trackers that allow for the recovery in rates of certain costs.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

NiSource Inc.

Columbia Operations

The underlying reasons for changes in our operating revenues for the three months ended March 31, 2025 compared to the same period in 2024 are presented below.

			Favorable (Unfavorable)
Changes in Operating Revenues (in millions)			Three Months Ended March 31, 2025 vs 2024
New rates from base rate proceedings and regulatory capital programs			$	73.2
The effects of weather in 2025 compared to 2024			27.2
The effects of customer growth			1.6
The effects of customer usage			(6.3)
Other			(0.2)
Change in operating revenues (before cost of energy and other tracked items)			$	95.5
Operating revenues offset in operating expense
Higher cost of energy billed to customers			151.0
Higher tracker deferrals within operation and maintenance, depreciation, and tax			40.4
Total change in operating revenues			$	286.9

Weather

In general, we calculate the weather-related revenue variance based on changing customer demand driven by weather variance from normal heating degree days, net of weather normalization mechanisms. Our composite heating degree days reported do not directly correlate to the weather-related dollar impact on the results of Columbia Operations. Heating degree days experienced during different times of the year or in different operating locations may have more or less impact on volume and dollars depending on when and where they occur. When the detailed results are combined for reporting, there may be weather-related dollar impacts on operations when there is not an apparent or significant change in our aggregated composite heating degree day comparison.

Sales

The increase in total volumes for the three months ended March 31, 2025, compared to the same period in 2024, is primarily attributable to an increase for residential and commercial customers due to colder weather.

Commodity Price Impact

Cost of energy for the Columbia Operations segment is principally comprised of the cost of natural gas procured on behalf of and sold to customers while providing transportation services. All of our Columbia Operations companies have state-approved recovery mechanisms that provide a means for full recovery of prudently incurred gas costs. These are tracked costs that are passed through directly to the customer, and the gas costs included in revenues are matched with the gas cost expense recorded in the period. Any difference in actual costs incurred and amounts billed to customers is recorded on the Condensed Consolidated Balance Sheets (unaudited) as under-recovered or over-recovered gas cost to be included in future customer billings. Therefore, increases in these tracked operating expenses are offset by increases in operating revenues and have essentially no impact on net income. Certain Columbia Operations companies continue to offer choice opportunities, where customers can choose to purchase gas from a third-party supplier, through regulatory initiatives in their respective jurisdictions.

The underlying reasons for changes in our operating expenses for the three months ended March 31, 2025 compared to the same period in 2024 are presented below.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

NiSource Inc.

Columbia Operations

			Favorable (Unfavorable)
Changes in Operating Expenses (in millions)			Three Months Ended March 31, 2025 vs 2024
Higher depreciation and amortization expense			$	(10.0)
Higher employee and administrative related expenses			(6.0)
Higher property tax			(3.0)
Other			7.3
Change in operating expenses (before cost of energy and other tracked items)			$	(11.7)
Operating expenses offset in operating revenue
Higher cost of energy billed to customers			(151.0)
Higher tracker deferrals within operation and maintenance, depreciation, and tax			(40.4)
Total change in operating expense			$	(203.1)

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