NiSource Inc (NYSE:NI) applauded the new federal tax reform bill approved by Congress on December 20, 2017. Joe Hamrock, the CEO and President, expressed that the company has closely tracked the tax reform legislative procedure, and they are delighted that Congress formulated a bill that comprises priorities vital to regulated utilities and the clients they serve. Lower tax rates indicate lower costs for their clients while encouraging investments in major energy infrastructure that is advantageous to the communities’ company serve.
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NiSource invests a considerable amount of capital to offer reliable and safe natural gas and electric service for millions of clients, and retaining the provision to deduct the interest on debt utilized to support these investments helps keep low costs for their clients. As a key tax payer in the areas company serves, retaining federal income tax deduction for local and state taxes lowers the taxes impact on client bills.
NiSource raises a considerable amount of funds via equity markets, and maintaining dividend rates low as well as on par with capital gains assists the firm retain a low cost of capital for its clients. Depending on the clarity offered and anticipated regulatory implementation of these points under the latest tax reform bill, the company reaffirmed its guidance of 2017 net operating earnings (non-GAAP) projection of $1.17 per share to $1.20 per share and 2018 net operating earnings (non-GAAP) projection of $1.26 to $1.32 per share.
NiSource continues to expect to increase its non-GAAP net operating earnings a share and dividend at 5% to 7% annually through 2020. The firm anticipates to invest $1.6 billion to $1.8 billion in its utility infrastructure plans through 2020, and continues to be dedicated to keeping investment grade credit ratings. NiSource comes in the list of the leading fully-regulated utility firms in the United States.
