CenterPoint Energy and Vectren complete merger
Combined company well positioned to advance its vision to lead the nation in delivering energy, service and value
2019-02-01T06:00:00Z

Houston and Evansville, Ind. – Feb. 1, 2019 – CenterPoint Energy, Inc. (NYSE: CNP) and Vectren Corporation (NYSE: VVC) today announced the successful completion of their merger. The combined company, which is named CenterPoint Energy and headquartered in Houston, has regulated electric and natural gas utility businesses in eight states that serve more than 7 million metered customers and a competitive energy businesses' footprint in nearly 40 states.

"Today, we come together as one company. With a greater level of business operations, resources and capabilities, we plan to execute a unified business strategy focused on the safe and reliable delivery of electricity, natural gas and energy-related services," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "It is a time of transformation for our industry, and I believe CenterPoint Energy will be well positioned to deliver traditional energy services with innovative solutions that meet customers' evolving needs and expectations."

With the merger, CenterPoint Energy has assets totaling approximately $29 billion, an enterprise value of $27 billion and approximately 14,000 employees. CenterPoint Energy's businesses include:

  • Electric utility business CenterPoint Energy maintains the wires, poles and electric infrastructure serving 2.4 million metered customers in the greater Houston area and 145,000 customers in Indiana. The company also owns and operates nearly 1,300 megawatts of power generation capacity in Indiana. CenterPoint Energy's Texas electric utility business is headquartered in Houston and its Indiana electric utility business is headquartered in Evansville, Ind.
  • Natural gas utility business – CenterPoint Energy sells and delivers natural gas to 4.5 million homes and businesses in eight states: Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas, including the high-growth areas of Houston and Minneapolis. The company's natural gas utility business is headquartered in Evansville.
  • Competitive energy businesses – CenterPoint Energy's competitive energy businesses include: natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company's competitive energy businesses are led from Houston.

CenterPoint Energy will continue to trade under the ticker symbol "CNP" on the New York Stock Exchange (NYSE) and the Chicago Stock Exchange.

Under the terms of the merger agreement, which was announced on April 23, 2018, Vectren shareholders will receive $72.00, along with a prorated dividend of $0.41145, in cash for each share of Vectren common stock owned as of the close of business on Feb. 1, 2019. Additionally, Vectren common stock, which previously traded under the ticker symbol "VVC," has ceased trading on and was delisted from the NYSE effective today.

"I look forward to watching the newly combined company thrive in this evolving industry," said Carl Chapman, outgoing Vectren chairman, president and chief executive officer. "CenterPoint Energy was the right partner for Vectren and I am confident this merger will have a positive impact on all stakeholders. I sincerely thank the employees and shareholders who have been part of the Vectren journey."

A CenterPoint Energy fact sheet can be found here.

 

CenterPoint Energy

Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers primarily in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy's competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $29 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

Forward-Looking Statement

The statements in this press release contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this press release are forward-looking statements made in good faith by us and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995.  When used in this press 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. Forward-looking statements include, but are not limited to, statements relating to benefits of the merger, integration plans and expected synergies and anticipated future financial measures and operating performance and results, including estimates for growth and other matters affecting future operations. Each forward-looking statement contained in this press 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) difficulties that may arise in successfully integrating the businesses of CenterPoint Energy and Vectren, which may result in the combined company not operating as efficiently and effectively as anticipated; (2) the ability of the combined company to achieve expected cost savings and synergies or it taking longer than expected for those savings and synergies to materialize; (3) potential unexpected costs or unexpected liabilities associated with the merger; (4) potential differences in the actual credit ratings of CenterPoint Energy, Vectren or their subsidiaries from the companies' anticipated ratings; (5) future regulatory or legislative actions that could adversely affect the combined company; (6) other economic, business or competitive factors that could adversely affect the combined company and (7) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2018, June 30, 2018 and September 30, 2018 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

 

 

some_text CenterPoint Energy

View More Tweets ›

 Recent News

 

 

Built to a higher standard: Thousands of energy-efficient new homes being constructed in Minnesota

Minneapolis April 22, 2019 – CenterPoint Energy and Xcel Energy recently recognized 14 Minnesota companies with new home construction energy efficiency standards awards after successfully concluding the 2018 program year of the High Efficiency New Homes Program. The program's goal is to increase access to energy-efficient homes in Minnesota and is a joint offering to utility service area builders, successfully supporting the construction of more 5,000 energy efficient new homes in 2018. 

High Efficiency New Homes are built to a higher energy standard than code requires and create a lifetime of benefits to homeowners, including increased comfort, lower energy bills, healthier indoor spaces, and retained value.  Each participating home is inspected and tested by a third-party professional trained in advanced building science using the Home Energy Rating System (HERS). The HERS Index is the industry standard by which a home's energy efficiency is measured. It is also the nationally recognized system for inspecting and calculating a new home's energy performance by a HERS rater.

"The High Efficiency New Homes Program continues to be well-received by our customers," said Ryan Setterholm, senior administrator of Efficiency Programs for CenterPoint Energy. "Each year, we build upon our previous successes and are committed to helping our customers find ways to save energy and money."

In 2018, the program collectively saved more than 2.9 million kilowatt hours and 129,400 dekatherms, which is the equivalent of powering 1,899 passenger cars for an entire year according to the EPA greenhouse gas equivalencies calculator. CenterPoint Energy and Xcel Energy partner with ICF to deliver the program. ICF, a global consulting services company, has delivered more than 200,000 energy-efficient new homes for utility programs across the nation.

The utilities honored the following 14 top-performing program participants in 2018 at an event in early April:

  • Amaris Homes, LLC
  • Daytons Bluff, NHS
  • Derrick Custom Homes
  • Gorham Custom Homes, LLC
  • Hedberg Homes
  • Hendel Homes
  • Lennar
  • NIH Homes
  • R Henry Construction
  • RJ Stegora Inc
  • Sustainable 9 Design + Build
  • Center for Energy and Environment (HERS Rater)
  • St. Croix Energy Solutions Inc (HERS Rater)
  • XRG Concepts, LLC (HERS Rater)

"We are always working with our customers – large and small – to help them find ways to become more energy efficient," said Rob Buchanan, Xcel Energy portfolio product manager. "We're proud to work with home builders throughout Minnesota to help them bring healthy, comfortable and efficient new homes to future homeowners."

The 2019 program goal is to complete more than 3,500 high efficiency new homes. Participating new homes must complete a home energy rating performed by a certified home energy rater in good standing.

For more information about the program, including a list of all participating builders, contact Hannah Jansen at 1-612-253-9982 or email at Hannah.Jansen@icf.com.
 
About CenterPoint Energy
Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with   regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers primarily in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy's competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $29 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.
 
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow on Twitter and Facebook.

CenterPoint Energy appoints Xia Liu executive vice president and chief financial officer

Xia LiuHouston – April 18, 2019 – CenterPoint Energy, Inc. (NYSE: CNP) today announced the appointment of Xia Liu as executive vice president and chief financial officer, effective April 22. Liu will report to CenterPoint Energy president and chief executive officer Scott M. Prochazka and oversee the company’s finance organization, including accounting, corporate strategy, financial planning, commercial risk, investor relations, treasury, tax and enterprise performance measurement. She will serve as a member of CenterPoint Energy’s senior leadership team.

“With a proven track record of more than 20 years of finance and regulatory experience and a deep knowledge of the energy delivery business, I am confident that Xia will contribute immediately to advancing our vision to lead the nation in delivering energy, service and value,” said Prochazka. “Given her background and accomplishments, Xia will be instrumental in providing financial and strategic leadership to help drive CenterPoint Energy’s performance following our recent merger with Vectren.”

Liu joins CenterPoint Energy from The Southern Company and its subsidiary companies where she held roles of increasing responsibility over the past 20 years. Most recently, Liu served as executive vice president, chief financial officer and treasurer of Georgia Power Company in Atlanta. In this capacity, she oversaw accounting, financial planning and analysis, budgeting, treasury and internal controls. Prior to this role, Liu was vice president, chief financial officer and treasurer for Gulf Power Company in Pensacola, Fla., where she was responsible for accounting, financial planning and analysis, budgeting, treasury, internal controls, regulatory, rates and pricing, and forecasting functions. She also served as senior vice president of finance and treasurer for Southern Company.   

“CenterPoint Energy is a strong, diversified company with a commitment to safely meet the needs of a growing customer base and realize financial growth,” said Liu. “I look forward to collaborating with the leadership team to drive value for our shareholders, customers and communities, while enhancing growth opportunities for our businesses.”

Liu earned a bachelor's degree and master's degree in finance from Renmin University of China and a master's degree in business administration from Emory University. She also completed two years of study in the Ph.D. in Economics program at Emory University. 

Liu is a chartered financial analyst (CFA), an International Woman's Forum Leadership Foundation fellow, and has attended executive programs at Harvard University and INSEAD School of France.

Active in her community, Liu has served on numerous boards of directors, including the Atlanta Symphony Orchestra, the Pensacola Symphony Orchestra, Florida TaxWatch and Gulf Coast Health Systems. Liu currently serves on the board of Public Broadcasting of Atlanta, Georgia Council on Economic Education and the PACT World Organization, a non-profit international development organization that works to improve the lives of those challenged by poverty. She is also a graduate of Leadership Atlanta.  

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 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. Factors that could affect actual results include timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in business plans, financial market conditions and other factors discussed in CenterPoint Energy’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy’s competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $29 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.



CenterPoint Energy scores highest on residential customer satisfaction in the energy utilities sector

Houston – April 17, 2019 – CenterPoint Energy achieved residential customer satisfaction highest ranking among energy utilities, according to the American Customer Satisfaction Index (ACSI) Energy Utilities Report 2018-2019. 

ACSI asked customers to evaluate their recent experiences with the largest energy utilities. This year, nearly every investor-owned utility company experienced a year-over-year drop in customer satisfaction, but CenterPoint Energy remained at the top of the category. The energy delivery company added 77,000 new natural gas and electric utility customers in 2018 and finished with an ACSI score of 80, compared to the investor-owned utilities and municipal utilities category averages of 73.

"Our goal is to provide our customers with an exceptional experience by investing in technologies that give them useful information and provide them with services that are valuable to them," said Gregg Knight, senior vice president and chief customer officer for CenterPoint Energy. "We are also working to expand services that our customers have indicated they would like us to provide.

"It's especially rewarding that our company and employees are being recognized nationally for our commitment to delivering value and great service to our customers," Knight added.

The ACSI Energy Utilities Report 2018-2019 covers three categories of energy utilities (investor-owned, municipal, and cooperative). Results are based on interviews with 21,646 residential customers, chosen at random and contacted via email between Jan. 16 and Dec. 25, 2018. Customers are asked to evaluate their recent experiences with the largest energy utilities in terms of market share, plus an aggregate category consisting of "all other"—and thus smaller—companies.

Click here to view the ACSI Energy Utilities Report 2018-2019.
 

Minnesota Cold Weather Rule ends soon

Minneapolis – April 10, 2019 – Customers with Cold Weather Rule (CWR) payment plans should take steps to avoid having large unpaid balances become due or their natural gas service disconnected once the CWR ends April 15. The Minnesota CWR protects residential customers who are experiencing difficulties with paying their natural gas bills from having their service disconnected Oct. 15 through April 15. All customers with CWR payment plans should contact CenterPoint Energy prior to April 15 and set up a new payment plan to ensure continuation of service.

"We encourage our customers having difficulty paying their natural gas bills or those who are at risk of having their service disconnected to contact us as soon as possible," said Brad Tutunjian, vice president of Gas Operations for CenterPoint Energy. "For those who are income-eligible, we will connect them with financial resources that can help pay down natural gas bills. We can also enroll our customers in our various bill payment programs."

What does CenterPoint Energy offer qualified customers?

 
Additionally, customers can use CenterPoint Energy's online options to make a one-time payment, set up a payment arrangement, report a payment made at an authorized bill payment center, and have service reconnected at CenterPointEnergy.com/SelfService.

To make a payment by phone and avoid service disruption, to use the company's automated telephone options or to learn more about energy assistance, please call 1-612-372-4680 or 1-800-729-6164.

 


CenterPoint Energy electric unit files to change electric delivery base rates for Houston-area customers
  • Filing seeks recovery of continued system-wide investments in the safety, reliability and resiliency of the electric grid for all customers;
  •  Continued growth in Houston area has resulted in the addition of nearly 400,000 customers since last change to base rates;
  •  Investments also include innovative technology to enhance customer support and service;
  •  Proposed change in base rates includes costs for restoration efforts related to Hurricane Harvey not yet recovered

Houston – April 5, 2019 – CenterPoint Energy’s electric transmission and distribution business, CenterPoint Energy Houston Electric (CEHE), today announced that it has filed a request with the Public Utility Commission of Texas (PUCT) and the cities in its service area to increase the base rate for delivery charges effective at the conclusion of the review by the PUCT. CEHE last filed for a base rate increase on June 30, 2010.

If approved in full by the PUCT, the proposed base rate increase would total approximately $161 million in adjusted current annual revenues. State law provides the PUCT with 185 days to review and decide on the filing.

“Our proposed change to the base rate portion of the customer’s bill is primarily driven by necessary capital investments to support electric delivery system safety, reliability, resiliency and service for the 2.4 million metered customers across our 5,000-square-mile service territory,” said Tracy Bridge, executive vice president and president of CenterPoint Energy’s Electric Division. “At the same time, we have also made investments to support the continued growth across our area that has resulted in the addition of nearly 400,000 customers since our last base rate increase. Finally, the change to the base rate also includes the recovery of approximately $64 million in costs related to Hurricane Harvey that have not yet been reflected in current rates.

“We strive to keep base rate changes as low as possible and minimize the impact on customers. As part of the filing, we are requesting to continue returning the benefits of the Tax Cuts and Jobs Act of 2017 through a separate rider that will provide approximately $97 million to customers over the next three years.”

CEHE’s transmission and distribution charges in this case currently represent approximately 37 percent of the monthly bill that residential customers using 1,000 kilowatt hours (kWh) per month pay to their Retail Electric Provider (REP), which is the company that sends customers their electric bills. Any changes to CEHE’s delivery rate would be included in the billing to the REP. The REP would then determine whether those changes would be passed on to their end-use customers. 

If the increase supported by CEHE’s filing is approved in full and passed through to the consumer by their REP, the impact to a residential customer using 1,000 kWh per month would be $2.38 per month.

The filing is also requesting permission to install voltage regulation battery technology, when necessary and cost effective, to reliably connect planned renewable energy generation projects in its service territory. In addition, CEHE is requesting an amendment to its Facilities Extension Policy to facilitate the development of public electric vehicle (EV) charging stations by reducing the financial contribution required to extend electric service to the charging stations. 
Finally, CEHE is requesting a Return on Equity of 10.4 percent and to put in place a capital structure of 50 percent equity and 50 percent long-term debt in response to its increased capital investment and the continued impact of the Tax Cuts and Jobs Act of 2017. 

“We believe that a fiscally healthy utility is good for customers, shareholders and the state of Texas,” added Bridge. “A competitive authorized return and more appropriate capital structure will continue to allow the company to attract low cost debt capital.”  

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 future regulatory decisions and actions on the filing and the impact of such actions, the proposed rate increases and anticipated impact to customers, the expected capital structure and benefits derived therefrom 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.  Factors that could affect actual results include timing and impact of future regulatory and legislative decisions, weather variations, changes in business plans and other factors discussed in CenterPoint Energy’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy’s competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $29 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.