NISOURCE INC.

2. Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2026, the FASB issued ASU 2026‑02, Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes comprehensive guidance for the recognition, measurement, presentation, and disclosure of environmental credits and environmental credit obligations. The ASU requires entities to recognize environmental credit assets when it is probable that the credits will be used, transferred, or otherwise realized and to recognize liabilities for environmental credit obligations when events occur on or before the reporting date which result in an environmental credit obligation. The ASU stipulates that measurement is based on either the cost of credits held or the fair value of credits needed to settle the obligation. The amendments are effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact this amendment will have on our consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. We are currently evaluating the impacts this amendment will have on our internal-use software capitalization policy. See Note 2 to the Company’s Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2025, for a discussion of the impact of this ASU.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). We are currently evaluating the impacts this amendment will have on our required disclosures. See Note 2 to the Company’s Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2025, for a discussion of the impact of this ASU.