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# NiSource's Guarantees Hit $272.6 Million, Up From $27.2 Million At Year-End, As Microsoft And Battery Deals Land
- URL: https://www.bullished.co/nisources-guarantees-hit-272-6-million-up-from-27-2-million-at-year-end-as-microsoft-and-d208ea16/
- Published: 2026-10-28T11:41:17.000Z
- Updated: 2026-10-28T11:41:17.000Z
- Description: The utility's guarantees for renewable-project and supply agreements grew sharply in the third quarter, alongside a $2.2 billion battery contract.
- Author: Matteo Parrino
- Tags: Earnings, NI, Industry: Utilities

[NiSource](https://www.bullished.co/tag/ni/)'s guarantees backing renewable-project and supply agreements totaled [$272.6 million](https://www.sec.gov/Archives/edgar/data/0001111711/000111171126000100/nix-20260930.htm?ref=bullished.co) at September 30, against $27.2 million at December 31, 2025, according to its 10-Q filed Wednesday. The jump arrived as the utility signed a Microsoft data center contract and a roughly $2.2 billion battery agreement in October.

## Guarantees within one quarter

The guarantees cover the company's future performance under build-transfer agreements for renewable generation projects, plus certain supply agreements. The [prior quarter's 10-Q](https://www.sec.gov/Archives/edgar/data/0001111711/000111171126000088/nix-20260630.htm?ref=bullished.co) put guarantees for multiple build-transfer agreements at $27.2 million at June 30, so the increase came in the third quarter.

NiSource, an energy holding company whose regulated gas and electric utilities serve about 3.8 million customers in six states, reported third-quarter net income available to common shareholders of [$129.5 million](https://markets.ft.com/data/announce/detail?dockey=600-202610280630BIZWIRE%5FUSPRX%5F%5F%5F%5F20261028%5FBW283681-1&ref=bullished.co), or $0.27 per diluted share, up from $94.7 million, or $0.20, a year earlier.

## The Microsoft contract

NIPSCO, the company's northern Indiana utility, struck a deal in October to supply a Microsoft data center with capacity and power. Service starts in 2028 and climbs to 788 MW from 2031, pending regulatory sign-off from Indiana's utility regulator.

The initial term runs 20 years after the data center is first energized. NiSource expects returns above its current electric operations.

NiSource also raised its capital plan to about [$40.0 billion](https://markets.ft.com/data/announce/detail?dockey=600-202610280630BIZWIRE%5FUSPRX%5F%5F%5F%5F20261028%5FBW283681-1&ref=bullished.co) for 2027-2033, including $8.0 billion for its GenCo data center unit, and said planned spending for existing data center customers is estimated at $14.0 billion to $14.5 billion. It says serving them requires significant new financing.

## A $2.2 billion battery tolling deal

In October, GenCo signed a tolling agreement with AGP covering a 600 MWAC / 2,400 MWh battery storage system, worth about $2.2 billion across roughly twenty and a half years. The company expects to account for it as a finance lease, and first-phase commercial operation is expected by December 1, 2027.

The agreement takes effect only if AGP signs an engineering-and-construction contract and an interconnection agreement by January 31, 2027\. GenCo also holds an option to buy the project. Separately, GenCo's roughly $1.1 billion capacity agreement for 2028 through 2040 remains subject to regulatory approval.

The next dated test is January 31, 2027, when AGP must have its construction and interconnection contracts signed for the battery deal to take effect.

### Sources

- [10-Q Filing — NiSource Inc. (NI)](https://www.sec.gov/Archives/edgar/data/0001111711/000111171126000100/nix-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — NiSource Inc. (NI), Q2 FY2026 filed 2026-08-05 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001111711/000111171126000088/nix-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, ni-ex991\_20260930.htm) — NiSource Inc., filed 2026-10-28](https://www.sec.gov/Archives/edgar/data/0001111711/000111171126000099/ni-ex991%5F20260930.htm?ref=bullished.co) — SEC EDGAR
- [NiSource Gears Up to Report Q3 Earnings: What's in the Cards?](https://finance.yahoo.com/markets/stocks/articles/nisource-gears-report-q3-earnings-122600717.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [NiSource Announces Third Quarter Results – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610280630BIZWIRE%5FUSPRX%5F%5F%5F%5F20261028%5FBW283681-1&ref=bullished.co) — Financial Times
- [NiSource Inc. (NYSE:NI) : Articles :: Law360](https://www.law360.com/companies/nisource-inc?article%5Frelated%5Fcontent=1&ref=bullished.co) — law360.com
- [NiSource Inc. (NYSE:NI) : Ttab Cases :: Law360](https://www.law360.com/companies/nisource-inc/ttab%5Fcases?ref=bullished.co) — law360.com

### More on NiSource

- [NiSource Guides 2027 Earnings To $2.22-$2.30 A Share And Stretches Its Capital Plan To $40 Billion](https://www.bullished.co/nisource-guides-2027-earnings-to-2-22-2-30-a-share-and-stretches-its-capital-plan-to-40-b54c5588/)
- [NiSource Unit Agrees To Pay About $2.2 Billion For A 2,400 MWh Battery AGP Group Will Build](https://www.bullished.co/nisource-unit-agrees-to-pay-about-2-2-billion-for-a-2-400-mwh-battery-agp-group-will-build-c0473f21/)

[All NiSource (NI) coverage →](https://www.bullished.co/tag/ni/)