MERRILLVILLE | Sweeping changes expected in top leadership roles at NiSource Inc. were announced Wednesday as the company prepares to spin off its burgeoning pipeline business sometime next year.
Under the plan, NiSource Inc. CEO Robert Skaggs Jr. will become CEO of Columbia Pipeline Group (CPG), the natural gas pipeline company that will be formed under a master limited partnership in 2015.
Skaggs has been NiSource CEO since 2005 and came to the company when it acquired Columbia Energy Group in 2000. He has guided NiSource through a period of robust increase in its stock price and rapid growth in its pipeline business.
Joseph Hamrock, who is executive vice president and group CEO of NiSource's gas distribution division, will succeed Skaggs as CEO of NiSource. All of the appointments will be effective following the split.
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"With proven, experienced leaders in place at both companies, NiSource and CPG will be well positioned to thrive and grow as independent entities," said Richard L. Thompson, NiSource board of directors chairman.
The company affirmed Wednesday that NiSource corporate headquarters will remain in Merrillville while Columbia Pipeline Group will remain headquartered in Houston, Texas.
The management changes are the most sweeping since NiSource aquired Columbia Energy Group in 2000. Although all the management changes announced Wednesday involve executives already with the company, future ones such as NiSource chief financial officer may involve outside hires, the company announced.
The split will also result in significant management changes at NiSource subsidiary NIPSCO, which supplies 459,000 electric customers and 800,000 natural gas customers in northern Indiana.
Jim Stanley, executive vice president and group CEO for NIPSCO is expected to serve in the new role of chief operating officer for NiSource.
Violet G. Sistovaris, currently NiSource senior vice president and chief information officer, is expected to become executive vice president for NIPSCO, with responsibility for electric operations and other functions. Among those reporting to Sistovaris will be NIPSCO President Kathleen O'Leary.
NiSource announced in September it planned to separate its natural gas pipeline and related businesses into a stand-alone publicly traded company called Columbia Pipeline Group.
Columbia Pipeline Group will control the business of transporting and storing natural gas. NiSource will continue to provide natural gas to more than 2.6 million customers in six states under the Columbia Gas brand. NiSource will also continue to serve its Indiana gas and electric customers through NIPSCO.
The separation of the energy companies is planned for mid-2015. Under the plan, NiSource stockholders will maintain their shares in the company and receive new shares issued for the new publicly traded Columbia Pipeline Group.
Under the plan announced Wednesday, Skaggs is expected to serve as chairman of the board at Columbia Pipeline Group, while Hamrock is expected to be named to NiSource's board once he takes over the CEO post. Richard Thompson is expected to remain as NiSource chairman.
NiSource Executive Vice President and Chief Financial Officer Stephen Smith would take on the same roles at Columbia Pipeline. Glen Kettering, who is currently executive vice president and group CEO for Columbia Pipeline, is anticipated to take on the newly created position of president of Columbia Pipeline.
The Associated Press contributed to this story.