Minneapolis – Nov. 1, 2023 – CenterPoint Energy filed an application with the Minnesota Public Utilities Commission (the “Commission") today requesting an adjustment to delivery charges in 2024 and 2025 for the company's natural gas business in Minnesota.
Known as a rate case, the proposed adjustment would help the utility not only comply with required federal regulations but also make meaningful investments to decarbonize and continue the safe and reliable operation of its 14,000-mile pipeline system. As the largest natural gas utility in Minnesota, CenterPoint Energy delivers energy to more than 910,000 residential and business customers in Minnesota.
“Our customers and communities benefit from the meaningful investments we make into our natural gas distribution system," said Christe Singleton, CenterPoint Energy's Vice President, Minnesota Gas. “The rate case is based on the need to maintain a safe, reliable system that delivers the essential and increasingly clean energy our customers count on each day, especially the coldest days."
Singleton added, “We're excited about the Natural Gas Innovation Act plan that we filed with the Commission this past June as part of our commitment to evaluating innovative solutions that help reduce emissions to support a cleaner energy future. Our innovation plan will increase access to renewable energy resources and innovative technologies such as the CarbinX technology that helps our customers reduce their onsite emissions. This rate case filing proposes to recover certain costs associated with the plan."
CenterPoint is committed to innovative, comprehensive solutions that reduce greenhouse gas emissions and advance Minnesota's cleaner energy future. In 2022, CenterPoint began producing green hydrogen, which is hydrogen made with renewable electricity, to blend it into natural gas at low levels of concentration for delivery to customers in Minneapolis. An additional project, proposed within its innovation plan, would produce renewable electricity on site for hydrogen production.
The requested increase is approximately 6.5% or $84.6 million for 2024 and an additional approximately 3.7% or $51.8 million for 2025. If approved, the requested increase would add $5.91 to a typical
residential customer's monthly delivery charge in 2024 and an additional $2.58 to a typical residential customer's monthly delivery charge in 2025. The delivery charge accounts for roughly 40-50% of a typical residential customer's monthly bill.
The rest of a customer's bill is the cost of natural gas which is passed through at cost. CenterPoint Energy does not mark up or profit from the purchase or sale of natural gas. For the 2023-2024 winter season, natural gas costs are estimated to be lower than the 2022-2023 winter season, assuming normal winter weather, that would flow through to mitigate customer bills.
CenterPoint Energy is asking the Commission to review and approve the proposed new rates, which are likely to occur in early 2025. A proposed interim rate increase of approximately 5.3% would take effect on Jan. 1, 2024, while the rate case is pending. Additionally, an interim rate would apply starting on Jan. 1, 2025, for an additional 2.4% increase.
More details about the rate case can be found at CenterPointEnergy.com/RateCase.
About CenterPoint Energy
As the only investor-owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. As of September 30, 2023, the company owned approximately
$39 billion in assets. With approximately 9,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.
Forward Looking Statement
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward- looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events, such as the expected prices of natural gas and the subsequent impact on customer bills, assumptions regarding winter weather, the timing of and proposed rates to be approved by the Commission, the approval of the Natural Gas Innovation plan, the related renewable projects, and the anticipated benefits, including reductions in greenhouse gas emissions, and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the impact of pandemics, including the COVID-19 pandemic; (2) financial market conditions; (3) general economic conditions; (4) the timing and impact of future regulatory and legislative decisions; (5) effects of competition; (6) weather variations; (7) changes in business plans; (8) continued disruptions to the global supply chain and increases in commodity prices; (9) legislative decisions, including tax and developments related to the environment such as global climate change, air emissions, carbon and waste water discharges; (10) CenterPoint Energy's ability to execute on its initiatives, targets and goals and operations and maintenance goals and (11) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and CenterPoint's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.