NiSource Inc. (NYSE:NI) Q3 2017 Earnings Conference Call - Final Transcript

Nov 01, 2017 • 09:00 am ET

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NiSource Inc. (NYSE:NI) Q3 2017 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

(Operator Instructions) Michael Weinstein, Credit Suisse.

Analyst
Michael Weinstein

First question is on the 5% to 7% growth rate going forward. Can you clarify that that's going to be based on the new 2018 guidance at this point?

Executive
Donald Brown

Yes, we continue reaffirming 5% to 7% year-on-year net operating earnings per share and dividend growth, and that's, as you know, driven by our steady execution of our investment plans, it's predominantly the infrastructure modernization plans, and so yes, the new 2018 guidance continues that theme.

Analyst
Michael Weinstein

Okay. And so 2019 would be based on the midpoint of 2018 theory?

Executive
Donald Brown

That's correct.

Analyst
Michael Weinstein

Okay. And I was wondering if you could just maybe talk a little bit about the integrated resource plan at this point for NIPSCO Electric, and what the timing of that is, and with the new filing that's going to come next year -- and when you think you might have to start planning and actually building or filing specific replacement plans.

Executive
Joseph Hamrock

Yes. So as you may know, we await the IURC's final disposition of the last IRP, and we look forward to engaging our stakeholders throughout the year ahead in a rigorous look at all of the replacement options for capacity in the future to replace the capacity we intend to retire. We have not yet determined an actual filing date for the next IRP. In all likelihood, it will be late next year, early 2019, but we continue to look at our options for how to step through those stakeholder engagement sessions.

Operator
Operator

Christopher Turnure, JPMorgan.

Analyst
Christopher Turnure

I wanted to ask about tax reform and specifically, the plan that we know of right now, as vague as it is, from the Republican Party back in September. Could you maybe just give us a little bit more detail or clarify any scenario analysis you've done around that; and follow-on to your comments from, I think, the fourth quarter call of this year?

Executive
Joseph Hamrock

Certainly, like everybody, we're staying very engaged in the tax reform process, ensuring that the interest of our customers and investors are balanced and that any unique implications for us are fully understood, particularly related to the inclusion of interest deductibility and expensing of CapEx and transition rules, all the issues we've talked about before.

As you well know, there's a lot of activity this week in Washington, we're watching that closely. Too early to know what details may be forthcoming. So I'm not going to speculate about the implications of the current process just other than to say, we'll stay engaged and keep stakeholders informed. I'll ask Donald to talk just a little bit about what we've already said in terms of the potential implications of the frameworks we've seen and then how we'll respond appropriately. Donald?

Executive
Donald Brown

Hi, Chris. Yes, as Joe said, we're paying attention, we're looking at what's going on and certainly engaging with legislators to promote our plan and our strategy and the impact that may have on our customers. As we look at the potential impacts from the loss