NiSource locks in 600 MW battery tolling deal with AGP; ~$2.2 billion of storage payments over ~20 years

NiSource is tying up a large Midcontinent battery project under a long-term tolling contract that will show up as a finance-lease obligation on its books.

On Oct. 15, 2026, NiSource Generation Company LLC, a NiSource Inc. subsidiary, entered a Battery Storage System Tolling Agreement with Atlas Storage 1 LLC, an indirect subsidiary of AGP Capital Holdings Pte. Ltd., according to an 8-K filed Friday. AGP Group will develop, construct, own and operate a 600 MWAC / 2,400 MWh stand-alone battery energy storage system interconnected to the Midcontinent Independent System Operator transmission system.

Under the deal, GenCo will supply the electricity used to charge the project at its expense and will have the right to dispatch the facility and receive the economic benefits of its capacity, discharged energy, storage services, ancillary services and, if applicable, environmental attributes — including MISO market revenues. In return, GenCo will make regular storage payments based on a fixed rate (subject to adjustments) and the project’s actual power capacity. Aggregate storage payments over the delivery term are expected to be about $2.2 billion.

The delivery term is expected to run roughly twenty and a half years from commercial operation of the first phase, which is expected by Dec. 1, 2027. NiSource said the tolling agreement is expected to be accounted for as a finance lease under ASC 842. Effectiveness is conditioned on AGP Group executing an engineering, procurement and construction contract and a satisfactory interconnection agreement by Jan. 31, 2027. GenCo also receives an exclusive, irrevocable option to purchase the project at specified intervals during and at the end of the term.

By the numbers

• Project size: 600 MWAC / 2,400 MWh
• Expected aggregate storage payments: about $2.2 billion
• Delivery term: about 20.5 years from first-phase COD
• First-phase COD target: by Dec. 1, 2027
• Condition deadline: EPC and interconnection by Jan. 31, 2027
• Accounting: expected finance lease (ASC 842)

Sources

1. NiSource Inc., Form 8-K (Item 2.03), filed Oct. 16, 2026, accession 0001193125-26-423375

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