BY KEITH BENMAN
kbenman@nwitimes.com
219.933.3326 | Wednesday, May 14, 2008 |
No comments posted.
FORT WAYNE || NiSource Inc. CEO Robert
Skaggs staked a bold claim to change at the company's annual meeting
on Tuesday, something he will be challenged to deliver on in a
pivotal year for the energy company.
"Across the entire company, 2007 was marked by extraordinary
progress in fixing, building and repositioning NiSource," Skaggs
told about 150 shareholders at the Grand Wayne Convention Center.
He pointed to the fact the company met its operating revenues goal
for the first time in many years in 2007 as evidence it is on the
right track. He also said progress was made on several long-term
growth initiatives such as its Appalachian storage and transmission
facilities.
Operating earnings for 2007 were $375.8 million, or $1.37 per share.
The company is forecasting operating revenues of between $1.25 per
share and $1.35 per share annually through 2010.
But its stock price sagged in 2007, ending the year at $18.89 per
share after beginning the year at $24.27. A big initiative to sell
off NIPSCO's electric business fell through just after last year's
annual meeting.
This year will see the company in the midst of three major rate
cases, two at its natural gas businesses in Pennsylvania and Ohio,
and one at its NIPSCO electric business.
It was NiSource's first annual meeting in Indiana, since 1999, when
it was held in South Bend. That was also the year its name changed
to NiSource from NIPSCO Industries.
Skaggs told investors the rate case at its NIPSCO subsidiary will be
the first in 20 years. He said the goal now for NIPSCO and all
subsidiaries is sustainable growth.
"It's a brick by brick effort ... it's the work that's needed to
build a solid foundation for long-term growth," the CEO said.
NiSource is the parent company of NIPSCO, Indiana's largest utility.
NiSource has subsidiaries in nine states, serving more than 3.8
million customers.
Skaggs has held the job of CEO at NIPSCO since 2005. But it was only
last year that long-time CEO Gary Neale relinquished his last role
with the company, stepping down as board chairman after the annual
meeting.
Current board chairman Ian Rolland, a prominent Fort Wayne-area
banker, gave the new Skaggs his vote of confidence at the meeting.
"I've been on this board a long time," Rolland told shareholders.
"I've never seen this kind of relationship between the board and
management -- the kind of communication and openness -- that is
taking place within this company."
Rolland is the board's longest-serving member, having served on the
board of NiSource and its predecessor company, NIPSCO Industries,
since 1978.
NiSource also announced Tuesday that company Chief Financial Officer
Michael O'Donnell will step down from that post prior to year's end.
He started his career in 1971 with Columbia Gas System. That company
merged with NiSource in 2000.
Shareholders at Tuesday's meeting elected two new members to the
board of directors.
Richard Abdoo, 64, a former CEO of Wisconsin Energy Corp., was
elected along with Michael Jesanis, 51, a former CEO at National
Grid USA.
Nine other incumbent board members were also elected. All ran
unopposed.
Shareholders also approved a board-sponsored measure to rescind
supermajority voting requirements. That is a move often advocated by
shareholder advocates, who say a simple majority vote on all matters
makes for better corporate governance.
Shareholders also approved the reappointment of Deloitte & Touche
LLP as the company's independent auditors.