By Amanda Durish Cook

NiSource lost $52.4 million during the fourth quarter due to one-time charges related to the federal tax cuts passed late last year, the company said Tuesday.

But during a Feb. 20 earnings call, CEO Joe Hamrock focused on adjusted earnings, noting the company would have made $110.3 million ($0.33/share) in the fourth quarter absent the charges — beating analyst estimates by a penny. The Merrillville, Ind.-based company earned $88.8 million ($0.28/share) during the fourth quarter of 2016.

Hamrock said that “2017 was a year of solid execution,” aided by record utility infrastructure and a growing customer base helped by an upswing in the housing market. NiSource added 28,000 new customers in 2017.

“We’re well positioned for continued growth,” Hamrock told investors.

NiSource earned $128.6 million ($0.39/share) for the year, compared with $328.1 million ($1.02/share) in 2016. Still, the company’s 5% increase in operating income to $901.6 million was accompanied by a 72% jump in income taxes — to $314.5 million — based on “certain balance sheet adjustments and other items as a result of federal tax reform legislation,” the company said.

Chief Financial Officer Donald Brown said NiSource’s continuing commitment to utility investment will be boosted by last year’s federal tax law change despite the non-recurring write-down. Hamrock said the company continues to work with stakeholders and regulators in the seven states it serves on how to best pass the benefits of tax reform on to customers.

“This effort should play out over the next six months or so,” Hamrock said.

During 2017, the company refinanced almost $1 billion of its long-term debts at more favorable rates, which is expected to result in “significant interest savings and positively impact its earnings,” according to the company.

NiSource also invested $1.7 billion in infrastructure last year, the company’s largest-ever single-year investment, Hamrock said. The investment involved replacing 377 miles of gas pipeline, replacing 1,300 electric poles, and placing 68 miles of underground electric cable.

The company’s future financials will be helped further by a recent settlement over the cleanup of several coal ash ponds at two of its Northern Indiana Public Service Co. coal plants. The Indiana Utility Regulatory Commission in December approved a settlement allowing the utility to recover 80% of federally mandated costs to clean up the ponds through surcharges in customer bills (44872). The $193 million bundle of projects ― at Michigan City Unit 12 in Michigan City, Ind., and at R.M. Schahfer Units 14 and 15 in Wheatfield, Ind. — is expected to bring NIPSCO in compliance with EPA’s Coal Combustion Residuals rule. The other 20% of project cost recovery will be deferred until NIPSCO’s next rate case before the IURC.

Hamrock said NiSource expects to complete the environmental mitigation project by the end of this year.

He also said the company is still on track to reduce its greenhouse gas emissions 50% from 2005 levels by 2025. NiSource last year announced plans to retire half its coal generation by 2023, shuttering more than 1.2 GW in coal between its Bailly and Schahfer plants. (See Big Spending, Shrinking Coal Fleet in NiSource’s Future.) NIPSCO officials have said new EPA rules on coal ash contributed to the company’s decision to partially close Schahfer.