NiSource Inc.: enters battery storage tolling agreement for 600 MWAC

What happened
The filing reports that on Oct 15, 2026 NiSource Generation Company LLC (“GenCo”), a subsidiary of NiSource Inc., entered into a Battery Storage System Tolling Agreement (the “Tolling Agreement”) with Atlas Storage 1 LLC, an indirect subsidiary of AGP Capital Holdings Pte. Ltd. (“AGP Group”), under which AGP Group will develop, construct, own and operate a 600 MWAC / 2,400 MWh stand-alone battery energy storage system (the “Project”) interconnected to the Midcontinent Independent System Operator, Inc. (“MISO”) transmission system. The delivery term is expected to be approximately 20.5 years, commencing on the commercial operation date for the first phase of the Project, expected by Dec 1, 2027.

Key details

• GenCo will supply, at its expense, the electricity used to power the Project and will have the right to instruct dispatch and receive economic benefits of available capacity, discharged energy, energy storage services, ancillary services and, if applicable, environmental attributes and related market revenues.
• GenCo’s aggregate storage payments over the delivery term are expected to be approximately $2,200,000,000, with payments based on a fixed rate (subject to adjustments) and the Project’s actual power capacity.
• The Tolling Agreement is expected to be accounted for as a finance lease obligation under FASB ASC Topic 842.
• Effectiveness is conditioned on AGP Group executing an engineering, procurement and construction contract and an interconnection agreement reasonably satisfactory to AGP Group by Jan 31, 2027; the Tolling Agreement also gives GenCo an exclusive, irrevocable option to purchase the Project at specified intervals.

Why it may matter
The filing reports Item 2.03: creation of a direct financial obligation or an obligation under an off-balance sheet arrangement, and it describes the material terms, expected accounting treatment and conditions to effectiveness of the Tolling Agreement. This filing does not show why the insider traded or why the company acted.