Understanding further impacts of the plan to your bill
Reliability Cost and Revenue Adjustment
The recently approved Reliability Cost and Revenue Adjustment (RCRA) took effect Nov. 30, 2023. As a result, a residential customer using 1,000 kWh will see an increase of approximately $16.55 on their monthly bill. As we transition our electric generation portfolio, additional capacity is required to meet our customers’ reliability needs. It’s essential we’re able to continue to provide consistent and reliable power delivery.
Updated annually, the RCRA reconciles reliability costs and revenues with those costs and revenues already included in base rates. As the company continues its long-term electric generation transition and remains in compliance, CenterPoint Energy was required by EPA regulations to shut down the A.B. Brown coal-fired generation units this past October. As construction continues on our approved renewable projects and natural gas combustion turbines, CenterPoint Energy is required by the Midcontinent Independent System Operator (MISO) to secure the necessary electric generating capability (capacity) to serve our 150,000 customers. The additional purchased capacity has been secured in a prudent manner, shielding customers from the potential for further impacts that could result from market volatility. The need for additional purchased capacity will decrease, but remain an essential need, as renewable projects are built and brought online over the next several years. CenterPoint Energy is committed to maintaining reliability for its southwestern Indiana electric customers.
- We have listened to our customers/stakeholders and are working on cost-effective strategies to help keep customer bills as low as possible.
- The generation transition from coal to more renewable energy, backed up by traditional dispatchable resources, is expected to save customers in the long run over the continued use of coal plants. In fact, the next step in our generation transition plan to add more sustainable, renewable energy and convert the last remaining coal plant that we operate to natural gas is expected to save customers nearly $80 million dollars over the next 20 years.
- The securitization pilot, which was approved by the Indiana Utility Regulatory Commission in January 2023, is expected to drive nearly $53 million in additional customer savings in the long run versus traditional ratemaking for existing coal units.
- After June 29, 2023, when securitization bonds were issues, customers started realizing securitization credits on their bills.