NiSource (NI) risk factors: FY2025 10-K

1. A cyber-attack or security breach on any of our or certain third-party technology systems, including but not limited to information systems, infrastructure, software and hardware, upon which we rely may adversely affect our ability to operate, could lead to a loss or misuse of confidential and proprietary information, or potential liability.newCybersecurity
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3. Compliance with and changes in cybersecurity requirements have a cost and operational impact on our business, and failure to comply with such laws and regulations could adversely impact our reputation, results of operations, financial condition and/or cash flows.newCybersecurity
4. The impacts of natural disasters, acts of terrorism, acts of war, civil unrest, accidents, public health emergencies or other catastrophic events may disrupt operations and reduce the ability to service customers.new
5. We are exposed to significant reputational risks, which make us vulnerable to a loss of cost recovery, increased litigation and negative public perception.
6. The physical impacts of climate change and the transition to a lower carbon future are impacting our business and could materially adversely affect our results of operations.
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8. We are subject to operational and financial risks and liabilities associated with the implementation and efforts to achieve our carbon emission reduction goal.reworded
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1. We have substantial indebtedness which could adversely affect our financial condition.
2. A drop in our credit ratings could adversely impact our cash flows, results of operation, financial condition and liquidity.
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4. Adverse economic and market conditions, including increases in inflation or interest rates, recession or changes in investor sentiment could materially and adversely affect our business, results of operations, cash flows, financial condition and liquidity.Interest rates
5. Most of our revenues are subject to regulation and are exposed to the impact of regulatory rate reviews and proceedings.reworded
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7. The actions of regulators and legislators could result in outcomes that may adversely affect our earnings and liquidity.
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9. Our business operations are subject to economic conditions in certain industries.
10. We are exposed to risk that customers will not remit payment for delivered energy or services, and that suppliers or counterparties will not perform under various financial or operating agreements.
11. We are a holding company and are dependent on cash generated by our subsidiaries to meet our debt obligations and pay dividends on our stock.
12. Capital market performance and other factors may decrease the value of benefit plan assets, which then could require significant additional funding and impact earnings.
13. We have significant goodwill. Any future impairments of goodwill could result in a significant charge to earnings in a future period and negatively impact our compliance with certain covenants under financing agreements.
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1. The outcome of legal and regulatory proceedings, investigations, inquiries, claims and litigation related to our business operations may have a material adverse effect on our results of operations, financial position or liquidity.
2. Our businesses are subject to various federal, state and local laws, regulations, tariffs and policies and a failure to comply with changes in, or new or different interpretations of, such laws, regulations, tariffs and policies could have an adverse impact on our business.Tariffs
3. Our businesses are regulated under numerous environmental laws and regulations. The cost of compliance with these laws and regulations, and changes to or additions to, or reinterpretations of the laws and regulations, could be significant, and the cost of compliance may not be recoverable. Liability from the failure to comply with existing or changed laws and regulations could have a material adverse effect on our business, results of operations, cash flows and financial condition.
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5. Changes in tax laws or the interpretation thereof and challenges to tax positions could adversely affect our financial results.

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1. Data center growth in our service territories, including a focus on northern Indiana, while providing growth opportunities that enhance our business strategy, provide significant financial, operational, and regulatory risks that must be effectively managed.new
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3. Our construction of the Contract Assets and any generation or transmission assets we develop to support future data center contracts involves significant risks. Construction delays, cost overruns or performance issues with the Contract Assets could reduce our returns under the ADS Contract or other future data center contracts and could require us to obtain additional financing.new
4. We will be required to obtain significant additional financing in order to construct the Contract Assets and any generation or transmission assets we develop to support future data center contracts. Such financing may not be available on favorable terms, if at all.new
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6. Pursuit of our partnership with ADS creates significant opportunity costs and reduces our strategic and financial flexibility in the near term.new
7. The return structure and risk profile of ADS Contract and any future data center contract will differ from those of NIPSCO’s traditionally regulated utility operations.new
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9. Our partnership with ADS exposes us to significant customer concentration risk.new
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