HOUSTON, Feb. 28, 2019 - CenterPoint Energy, Inc. (NYSE: CNP) today reported full-year income available to common shareholders of $333 million, or $0.74 per diluted share, compared with $1,792 million, or $4.13 per diluted share in 2017.
On a guidance basis, full-year 2018 earnings were $1.60 per diluted share, excluding impacts associated with the Vectren merger (the merger). Full-year 2017 earnings, on a guidance basis, were $1.37 per diluted share, excluding a one-time tax benefit of $1,113 million related to the Tax Cuts and Jobs Act (TCJA) federal income tax rate reduction.
Fourth quarter 2018 earnings were $0.18 per diluted share, compared to $2.99 per diluted share for the fourth quarter of 2017. On a guidance basis, fourth quarter 2018 earnings were $0.36 per diluted share, excluding impacts associated with the merger. Excluding the TCJA tax benefit, on a guidance basis, fourth quarter 2017 earnings were $0.33 per diluted share.
"I am very pleased with our 2018 results as they represent another solid year of meeting the financial goals we set," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "Our recently completed merger expands our utility businesses to eight states, provides opportunities to leverage and expand our competitive energy businesses across a larger U.S. footprint, and gives us greater confidence in putting forward long-term financial targets."
Business Segments
Electric Transmission & Distribution
The electric transmission & distribution segment reported full-year 2018 operating income of $623 million, consisting of $568 million from the regulated electric transmission and distribution utility operations (TDU) and $55 million related to securitization bonds. Operating income for 2017 was $636 million, consisting of $561 million from the TDU and $75 million related to securitization bonds.
Operating income for the TDU benefited primarily from rate relief, customer growth and higher equity return related to the annual true-up of transition charges. These benefits were partially offset by higher operation and maintenance expenses, lower revenues reflecting the lower federal corporate income tax rate due to the TCJA, and higher depreciation and amortization expense.
The retrospective adoption of the accounting standard for compensation-retirement benefits (ASU 2017-07) resulted in an increase to TDU operating income and a corresponding decrease to other income of $26 million for 2017.
Natural Gas Distribution
The natural gas distribution segment reported full-year 2018 operating income of $266 million, compared with $348 million in 2017.
Full-year 2018 operating income for natural gas distribution improved primarily as a result of rate relief and customer growth. These increases were more than offset by lower revenues reflecting the lower federal corporate income tax rate due to the TCJA, higher operation and maintenance expenses and higher depreciation and amortization expense.
The retrospective adoption of ASU 2017-07 resulted in an increase to natural gas distribution operating income and a corresponding decrease to other income of $20 million for 2017.
Energy Services
The energy services segment reported a full-year operating loss of $47 million, which included a mark-to-market loss of $110 million, compared with operating income of $126 million for 2017, which included a mark-to-market gain of $79 million. Excluding mark-to-market adjustments, operating income was $63 million in 2018 compared to $47 million in 2017. Operating income increased primarily due to improved margin and volumes. This increase was partially offset by higher operation and maintenance expenses primarily associated with growth.
Midstream Investments
The midstream investments segment reported full-year 2018 equity income of $307 million, compared with $265 million in 2017.
Other Operations
The other operations segment reported an operating loss of $11 million for full-year 2018, compared with operating income of $26 million in 2017. This decrease is primarily due to merger-related costs.
Earnings Outlook
- 2018 - 2023 target of 5 - 7% compound annual guidance basis EPS growth, using $1.60 as the starting EPS
- 2019 guidance basis EPS range of $1.60 - $1.70, excluding certain impacts associated with the merger:
- Integration and transaction-related fees and expenses, including severance and other costs to achieve anticipated cost savings as a result of the merger
- Merger financing impacts in January, prior to the completion of the merger, due to the issuance of debt and equity securities to fund the merger that resulted in higher net interest expense and higher common stock share count
- 2020 guidance basis EPS range of $1.75 - $1.90
Both the 2019 and 2020 guidance ranges consider operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, commodity prices, recovery of capital invested through rate cases and other rate filings, effective tax rates, financing activities and related interest rates, and regulatory and judicial proceedings as well as the volume of work contracted in our infrastructure services business. The ranges also consider anticipated cost savings as a result of the merger and the estimated cost and timing of technology integration projects. The 2019 guidance range assumes Enable Midstream Partners, LP's (Enable) 2019 guidance range for net income attributable to common units of $435 - $505 million, provided on Enable's 4th quarter earnings call on February 19, 2019. The 2020 guidance range utilizes a range of CenterPoint Energy scenarios for Enable's 2020 net income attributable to common units.
In providing this guidance, CenterPoint Energy uses a non-GAAP measure of adjusted diluted earnings per share that does not consider other potential impacts, such as changes in accounting standards or unusual items, including those from Enable, earnings or losses from the change in the value of the ZENS securities and the related stocks, or the timing effects of mark-to-market accounting in the company's Energy Services business, which, along with the certain excluded impacts associated with the merger, could have a material impact on GAAP reported results for the applicable guidance period. CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted diluted earnings per share because changes in the value of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business are not estimable as they are highly variable and difficult to predict due to various factors outside of management's control.
| Quarter Ended
|
|
| December 31, 2018
|
| December 31, 2017
|
|
| Dollars
in millions
|
| Diluted EPS
|
| Dollars
in millions
|
| Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
Consolidated income available to common shareholders and diluted EPS
| $ 90
|
| $ 0.18
|
| $ 1,296
|
| $ 2.99
|
|
Midstream Investments
| (67)
|
| (0.13)
|
| (551)
|
| (1.27)
|
|
Utility Operations (1)
| 23
|
| 0.05
|
| 745
|
| 1.72
|
|
|
|
|
|
|
|
|
|
|
Timing effects impacting CES(2):
|
|
|
|
|
|
|
|
|
Mark-to-market (gains) losses (net of taxes of $9 and $20)(3)
| 30
|
| 0.06
|
| (36)
|
| (0.09)
|
|
|
|
|
|
|
|
|
|
|
ZENS-related mark-to-market (gains) losses:
|
|
|
|
|
|
|
|
|
Marketable securities (net of taxes of $19 and $33) (3)(4)
| 69
|
| 0.13
|
| 64
|
| 0.15
|
|
Indexed debt securities (net of taxes of $18 and $38) (3)
| (66)
|
| (0.13)
|
| (70)
|
| (0.16)
|
|
Utility operations earnings on an adjusted guidance basis
| $ 56
|
| $ 0.11
|
| $ 703
|
| $ 1.62
|
|
|
|
|
|
|
|
|
|
|
Adjusted income and adjusted diluted EPS used in providing earnings guidance:
|
|
|
|
|
|
|
|
|
Utility Operations on a guidance basis
| $ 56
|
| $ 0.11
|
| $ 703
|
| $ 1.62
|
|
Midstream Investments
| 67
|
| 0.13
|
| 551
|
| 1.27
|
|
Consolidated on a guidance basis
| $ 123
|
| $ 0.24
|
| $ 1,254
|
| $ 2.89
|
|
|
|
|
|
|
|
|
|
|
Impacts associated with the Vectren merger:
|
|
|
|
|
|
|
|
|
Merger impacts other than the increase in share count (net of taxes of $2) (3)
| 37
|
| 0.07
|
| -
|
| -
|
|
Impact of increased share count on Utility EPS
| -
|
| 0.03
|
| -
|
| -
|
|
Impact of increased share count on Midstream EPS
| -
|
| 0.02
|
| -
|
| -
|
|
Total merger impacts
| 37
|
| 0.12
|
| -
|
| -
|
|
|
|
|
|
|
|
|
|
|
Gain from tax reform(5)
|
|
|
|
|
|
|
|
|
Utility
| -
|
| -
|
| (599)
|
| (1.38)
|
|
Midstream
| -
|
| -
|
| (514)
|
| (1.18)
|
|
Total gain from tax reform
| -
|
| -
|
| (1,113)
|
| (2.56)
|
|
|
|
|
|
|
|
|
|
|
Utility Operations on a guidance basis, excluding impacts associated with the Vectren merger and gain from tax reform
| $ 93
|
| $ 0.21
|
| $ 104
|
| $ 0.24
|
|
Midstream Investments excluding impacts associated with the Vectren merger and gain from tax reform
| 67
|
| 0.15
|
| 37
|
| 0.09
|
|
Consolidated on a guidance basis, excluding impacts associated with the Vectren merger and gain from tax reform
| $ 160
|
| $ 0.36
|
| $ 141
|
| $ 0.33
|
|
|
|
|
|
|
|
|
|
|
(1) CenterPoint earnings excluding Midstream Investments
|
(2) Energy Services segment
|
(3) Taxes are computed based on the impact removing such item would have on tax expense
|
(4) As of June 14, 2018, comprised of AT&T Inc. and Charter Communications, Inc. Prior to June 14, 2018, comprised of Time Warner Inc. and Charter Communications, Inc.
|
Results prior to January 31, 2018 also included Time Inc.
|
(5) Tax reform legislation informally called the Tax Cuts and Jobs Act of 2017
|
|
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|
|
|
|
| Twelve Months Ended
|
| December 31, 2018
|
| December 31, 2017
|
| Dollars
in millions
|
| Diluted EPS
|
| Dollars
in millions
|
| Diluted EPS
|
|
|
|
|
|
|
|
|
Consolidated income available to common shareholders and diluted EPS
| $ 333
|
| $ 0.74
|
| $ 1,792
|
| $ 4.13
|
Midstream Investments
| (223)
|
| (0.49)
|
| (675)
|
| (1.56)
|
Utility Operations (1)
| 110
|
| 0.25
|
| 1,117
|
| 2.57
|
|
|
|
|
|
|
|
|
Timing effects impacting CES(2):
|
|
|
|
|
|
|
|
Mark-to-market (gains) losses (net of taxes of $26 and $29)(3)
| 84
|
| 0.18
|
| (50)
|
| (0.12)
|
|
|
|
|
|
|
|
|
ZENS-related mark-to-market (gains) losses:
|
|
|
|
|
|
|
|
Marketable securities (net of taxes of $5 and $3) (3)(4)
| 17
|
| 0.04
|
| (4)
|
| (0.01)
|
Indexed debt securities (net of taxes of $49 and $17) (3)(5)
| 183
|
| 0.40
|
| (32)
|
| (0.07)
|
Utility operations earnings on an adjusted guidance basis
| $ 394
|
| $ 0.87
|
| $ 1,031
|
| $ 2.37
|
|
|
|
|
|
|
|
|
Adjusted income and adjusted diluted EPS used in providing earnings guidance:
|
|
|
|
|
|
|
|
Utility Operations on a guidance basis
| $ 394
|
| $ 0.87
|
| $ 1,031
|
| $ 2.37
|
Midstream Investments
| 223
|
| 0.49
|
| 675
|
| 1.56
|
Consolidated on a guidance basis
| $ 617
|
| $ 1.36
|
| $ 1,706
|
| $ 3.93
|
|
|
|
|
|
|
|
|
Impacts associated with the Vectren merger:
|
|
|
|
|
|
|
|
Merger impacts other than the increase in share count (net of taxes of $12) (3)
| 81
|
| 0.18
|
| -
|
| -
|
Impact of increased share count on Utility EPS
| -
|
| 0.04
|
| -
|
| -
|
Impact of increased share count on Midstream EPS
| -
|
| 0.02
|
| -
|
| -
|
Total merger impacts
| 81
|
| 0.24
|
| -
|
| -
|
|
|
|
|
|
|
|
|
Gain from tax reform(6)
|
|
|
|
|
|
|
|
Utility
| -
|
| -
|
| (599)
|
| (1.38)
|
Midstream
| -
|
| -
|
| (514)
|
| (1.18)
|
Total gain from tax reform
| -
|
| -
|
| (1,113)
|
| (2.56)
|
|
|
|
|
|
|
|
|
Utility Operations on a guidance basis, excluding impacts associated with the Vectren merger and gain from tax reform
| $ 475
|
| $ 1.09
|
| $ 432
|
| $ 0.99
|
Midstream Investments excluding impacts associated with the Vectren merger and gain from tax reform
| 223
|
| 0.51
|
| 161
|
| 0.38
|
Consolidated on a guidance basis, excluding impacts associated with the Vectren merger and gain from tax reform
| $ 698
|
| $ 1.60
|
| $ 593
|
| $ 1.37
|
|
|
|
|
|
|
|
|
(1) CenterPoint earnings excluding Midstream Investments
|
(2) Energy Services segment
|
(3) Taxes are computed based on the impact removing such item would have on tax expense
|
(4) As of June 14, 2018, comprised of AT&T Inc. and Charter Communications, Inc. Prior to June 14, 2018, comprised of Time Warner Inc. and Charter Communications, Inc.
|
Results prior to January 31, 2018 also included Time Inc.
|
(5) 2018 includes amounts associated with the acquisition of Time Warner Inc. by AT&T Inc. as well as the Meredith tender offer for Time Inc. common stock
|
(6) Tax reform legislation informally called the Tax Cuts and Jobs Act of 2017
|
Filing of Form 10-K for CenterPoint Energy, Inc.
Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the fiscal year ended December 31, 2018. A copy of that report is available on the company's website, under the Investors section. Other filings the company makes with the SEC and certain documents relating to its corporate governance can also be found under the Investors section.
Webcast of Earnings Conference Call
CenterPoint Energy's management will host an earnings conference call on Thursday, February 28, 2019, at 9:00 a.m. Central time/10:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company's website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.
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 $30 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 earnings, and future financial performance and results of operations, including, but not limited to earnings guidance, targeted dividend growth rate 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.
Risks Related to CenterPoint Energy
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 performance of Enable Midstream Partners, LP (Enable), the amount of cash distributions CenterPoint Energy receives from Enable, Enable's ability to redeem the Enable Series A Preferred Units in certain circumstances and the value of CenterPoint Energy's interest in Enable, and factors that may have a material impact on such performance, cash distributions and value, including factors such as: (A) competitive conditions in the midstream industry, and actions taken by Enable's customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable; (B) the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly prices of natural gas and natural gas liquids (NGLs), the competitive effects of the available pipeline capacity in the regions served by Enable, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable's interstate pipelines; (C) the demand for crude oil, natural gas, NGLs and transportation and storage services; (D) environmental and other governmental regulations, including the availability of drilling permits and the regulation of hydraulic fracturing; (E) recording of goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (F) changes in tax status; and (G) access to debt and equity capital; (2) CenterPoint Energy's expected benefits of the merger with Vectren Corporation (Vectren) and integration, including the outcome of shareholder litigation filed against Vectren that could reduce anticipated benefits of the merger, as well as the ability to successfully integrate the Vectren businesses and realize anticipated benefits and the risk that the credit ratings of the combined company or its subsidiaries may be different from what CenterPoint Energy expects; (3) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the demand for CenterPoint Energy's non-utility products and services and effects of energy efficiency measures and demographic patterns; (4) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment, including Houston Electric's anticipated rate case in 2019, the outcome of which may not result in expected rates or recovery of costs; (5) future economic conditions in regional and national markets and their effect on sales, prices and costs; (6) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (7) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy's and Enable's businesses, including, among others, energy deregulation or re-regulation, pipeline integrity and safety and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by our regulated businesses; (8) tax legislation, including the effects of the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act (which includes any potential changes to interest deductibility) and uncertainties involving state commissions' and local municipalities' regulatory requirements and determinations regarding the treatment of excess deferred income taxes and CenterPoint Energy's rates; (9) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (10) the timing and extent of changes in commodity prices, particularly natural gas, and the effects of geographic and seasonal commodity price differentials; (11) actions by credit rating agencies, including any potential downgrades to credit ratings; (12) changes in interest rates and their impact on CenterPoint Energy's costs of borrowing and the valuation of its pension benefit obligation; (13) problems with regulatory approval, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; (14) the availability and prices of raw materials and services and changes in labor for current and future construction projects; (15) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; (16) the impact of unplanned facility outages; (17) any direct or indirect effects on CenterPoint Energy's or Enable's facilities, operations and financial condition resulting from terrorism, cyber-attacks, data security breaches or other attempts to disrupt CenterPoint Energy's businesses or the businesses of third parties, or other catastrophic events such as fires, earthquakes, explosions, leaks, floods, droughts, hurricanes, pandemic health events or other occurrences; (18) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's investments; (19) CenterPoint Energy's ability to control operation and maintenance costs; (20) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (21) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (22) commercial bank and financial market conditions, CenterPoint Energy's access to capital, the cost of such capital, and the results of CenterPoint Energy's financing and refinancing efforts, including availability of funds in the debt capital markets; (23) changes in rates of inflation; (24) inability of various counterparties to meet their obligations to CenterPoint Energy; (25) non-payment for CenterPoint Energy's services due to financial distress of its customers; (26) the extent and effectiveness of CenterPoint Energy's and Enable's risk management and hedging activities, including but not limited to, financial and weather hedges and commodity risk management activities; (27) timely and appropriate regulatory actions, which include actions allowing securitization, for any future hurricanes or natural disasters or other recovery of costs, including costs associated with Hurricane Harvey; (28) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, including restructurings, joint ventures and acquisitions or dispositions of assets or businesses (including a reduction of CenterPoint Energy's interests in Enable, if any, whether through CenterPoint Energy's decision to sell a portion of the Enable common units it owns in the public equity markets or otherwise, subject to certain limitations), which CenterPoint Energy and Enable cannot assure will be completed or will have the anticipated benefits to CenterPoint Energy or Enable; (29) acquisition and merger activities involving CenterPoint Energy or its competitors, including the ability to successfully complete merger, acquisition and divestiture plans; (30) CenterPoint Energy's or Enable's ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (31) the outcome of litigation; (32) the ability of retail electric providers (REPs), including REP affiliates of NRG Energy, Inc. and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (33) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (34) the timing and outcome of any audits, disputes and other proceedings related to taxes; (35) the effective tax rates; (36) the effect of changes in and application of accounting standards and pronouncements; and (37) 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.
Use of Non-GAAP Financial Measures by CenterPoint Energy in Providing Guidance
In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), including presentation of income available to common shareholders and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted income and adjusted diluted earnings per share, which are non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. CenterPoint Energy's adjusted income and adjusted diluted earnings per share calculation excludes from income available to common shareholders and diluted earnings per share, respectively, the impact of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business. CenterPoint Energy's guidance for 2019 also does not reflect certain impacts associated with the Vectren merger, which are integration and transaction-related fees and expenses, including severance and other costs to achieve anticipated cost savings as a result of the merger and merger financing impacts in January, prior to the completion of the merger due to the issuance of debt and equity securities to fund the merger that resulted in higher net interest expense and higher common stock share count. CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted net income and adjusted diluted earnings per share because changes in the value of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business are not estimable as they are highly variable and difficult to predict due to various factors outside of management's control. These excluded items, along with the excluded impacts associated with the merger, could have a material impact on GAAP reported results for the applicable guidance period.
Management evaluates the company's financial performance in part based on adjusted income and adjusted diluted earnings per share. Management believes that presenting these non-GAAP financial measures enhances an investor's understanding of CenterPoint Energy's overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods. The adjustments made in these non-GAAP financial measures exclude items that Management believes does not most accurately reflect the company's fundamental business performance. These excluded items are reflected in the reconciliation tables of this news release, where applicable. CenterPoint Energy's adjusted income and adjusted diluted earnings per share non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, income available to common shareholders and diluted earnings per share, which respectively are the most directly comparable GAAP financial measures. These non-GAAP financial measures also may be different than non-GAAP financial measures used by other companies.
CenterPoint Energy, Inc. and Subsidiaries
|
|
Statements of Consolidated Income
|
|
(Millions of Dollars)
|
|
(Unaudited)
|
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Recent News
In celebration of Natural Gas Utility Workers Day, CenterPoint Energy honors team members who work every day to serve customers and communities Houston – March 18, 2025 – Every year, March 18 is recognized as Natural Gas Utility Workers Day, which is a moment to pause and honor the important role natural gas utility workers play in serving as emergency responders and keeping natural gas safely flowing to the businesses and homes in the many communities CenterPoint Energy is privileged to serve. CenterPoint honors the company's employees and those who work throughout the natural gas industry for their tireless work in providing safe, reliable and resilient service to those who rely on natural gas. CenterPoint's approximately 3,500 natural gas utility workers play a critical role in installing and maintaining natural gas infrastructure such as pipelines and meters, supporting the delivery of energy service to customers, educating the public on natural gas safety and adhering to rigorous safety standards to protect their communities and the environment. “Our natural gas utility workforce keeps safety at the forefront of all they do. Whether installing natural gas service or responding to emergency calls from customers, our workers focus on delivering resilient, readily available energy solutions for customers. No matter the temperature outside nor the time of day, our natural gas workers are there to help meet the needs of our customers and communities to keep them safe, maintain warmth and enable possibilities to support business needs. We honor and celebrate natural gas utility workers, not just today, but for the work they do every day to help keep us all safe," said Richard Leger, CenterPoint's Senior Vice President, Gas Business. At CenterPoint, natural gas utility workers serve more than 4.3 million customers across six states, monitor and maintain more than 75,000 miles of distribution pipeline and deploy advanced leak detection technologies to monitor more than 80% of the company's natural gas assets. In 2024 alone, the company's natural gas utility workers helped: - Replace more than 470 miles of pipeline to help advance efforts to modernize the company's natural gas distribution systems using modern construction materials and installation methods, including efforts to replace cast iron infrastructure.
- Deploy more than 250,000 natural gas smart meters across the company's service area, which include enhanced safety and communications features.
- Complete more than 2.5 million locates of the company's natural gas facilities, which help customers and community members dig safely and mitigate potential service disruptions.
Tips for customers to stay safe Safety is CenterPoint's top priority. In addition to the company's employees' commitment to working safely, the company would like to remind customers to always keep natural gas safety top of mind by: -
Calling before your dig: Anyone planning a project that requires digging should contact 811 at least two days prior to their work starting to have underground utilities located at no cost.
-
Learning to recognize a natural gas leak by using one's eyes, ears and noses:
- Look for signs of a natural gas leak including persistent bubbling in standing water and discolored or dead vegetation around a pipeline.
- Listen for any unusual noises such as whistling, hissing or roaring sounds.
- Smell for the distinctive, strong odor, often compared to rotten eggs or sulfur from mercaptan which is added to natural gas for safety detection purposes.
-
Immediately reporting a suspected natural gas leak: If there's a “rotten egg" odor of natural gas present, immediately leave on foot, go to a safe location and call both 911 and CenterPoint Energy. Don't use electric switches and outlets, phones (including cell phones), drive or start a car or do anything that could cause a spark inside or close to the location.
To learn more about CenterPoint's commitment to natural gas safety, visit
CenterPointEnergy.com/Safety. Images associated with this release can be found at:
https://cnplibrary.canto.com/b/UJQKH. These photos are made available courtesy of CenterPoint Energy. CenterPoint Energy Taking Safety Actions to Address Increased Wildfire Risk in Parts of the Greater Houston Area
Red Flag Warning in effect for large portions of Texas and the Greater Houston area from noon to 9 p.m. on Saturday; high wind gusts, low humidity and fire risk anticipated
CenterPoint has taken a series of actions to prepare equipment and approximately 1,000 workers ready to respond today
Company continues to communicate with customers about the potential for temporary outages in some areas due to wildfire conditions
HOUSTON, March 15, 2025 - CenterPoint Energy is taking a series of precautionary actions to help protect customers and communities and address elevated wildfire risk in parts of the Greater Houston area, as the National Weather Service has issued a Red Flag Warning from noon until 9 p.m. today. CenterPoint has actively prepared for potentially dangerous weather conditions, including high wind gusts, dry fuels and low humidity, by conducting pre-inspections of electric and natural gas equipment, adjusting power line safety settings in higher-risk areas, communicating with customers and working closely with local emergency agencies. Today, CenterPoint has approximately 1,000 line and vegetation workers prepared to respond to the evolving weather conditions.
Over the last day, CenterPoint has notified customers in the Cypress, Fort Bend and Katy areas through the company's Power Alert Service about the possibility that extreme weather and wind conditions could result in some temporary safety outages this afternoon or tonight.
"While we have had some precipitation with the passing front this morning, we must remain vigilant. As fire weather conditions quickly evolved and escalated across the state, CenterPoint has been actively preparing for potential impacts to the system and is ready to respond to the heightened risk today. Over the last several days, our teams have completed a series of actions to help protect our customers and communities, including inspecting critical equipment, clearing hazardous vegetation near power lines, adjusting safety settings in higher-risk areas and pre-positioning crews to quickly restore power if temporary safety outages occur. We will continue to keep customers informed of our efforts and how they can stay prepared before and during extreme weather," said Don Daigler, Senior Vice President, Emergency Planning & Response.
Key Actions to Help Keep Customers Safe
CenterPoint's safety preparations over the last several days include the following key actions:
- Inspecting and Hardening Key Power Lines: Inspecting power lines in areas of heightened fire risk, clearing hazardous vegetation near power lines and conducting repairs where needed, ahead of potential extreme weather.
- Inspecting Natural Gas Facilities: Inspecting gas facilities in areas of heightened fire risk and clearing hazardous vegetation near facilities ahead of potential extreme weather.
- Adjusting Safety Settings: Adjusting the settings on some power lines for safety between noon and 9 p.m. today.
- Bringing on Additional Crews to Respond: Positioning CenterPoint crews and additional contractors to respond to any power outages or natural gas service interruptions that may occur. Additional resources will be utilized to safely restore service as quickly as possible when conditions allow.
- Coordinating with Local Emergency Partners: Proactively sharing information with state, county and local leaders.
- Communicating with Customers: Proactively communicating with approximately 330,000 customers in the Cypress, Fort Bend and Katy areas by phone, text or email about the potential for temporary safety outages due to high fire danger.
Important Safety Tips for Customers
CenterPoint encourages all customers to stay informed about weather conditions and make a plan to stay safe, including during a potential power outage. Customers can also get the latest information on CenterPoint's preparedness and response efforts and view important safety tips by visiting CenterPointEnergy.com/StormCenter. Additional preparation and safety tips are available at Ready.gov.
How to Stay Informed: Sign Up for PAS
CenterPoint electric customers are encouraged to enroll in the company's Power Alert Service® to receive outage details, estimated restoration times and customer-specific restoration updates by phone call, text or email. Customers can also stay up to date with CenterPoint's new and improved, cloud-based Outage Tracker, available in English and Spanish, which allows customers to see outages by county, city and zip code.
Customers can also follow @CenterPoint_TX to receive the most up-to-date information on the company's operations in the Greater Houston area and across Texas.
For the latest weather information for the Greater Houston area, view updates from the National Weather Service Forecast Office in Houston/Galveston at weather.gov/hgx.
For more information, contact:
Communications
Media.Relations@CenterPointEnergy.com
SOURCE CenterPoint Energy CenterPoint Energy assessing damage, restoring power following overnight storms in southwestern Indiana Evansville, Ind. – March 15, 2025 – CenterPoint Energy crews are actively assessing damage and making repairs to its electric system after severe storms moved through southwestern Indiana overnight. The company's natural gas system did not experience any major impacts. The storm system brought wind gusts up to 60 mph, with higher gusts reported in some areas, resulting in impacts across the company's electric system. As of 2:30 p.m., approximately 1,600 customers remain without power. CenterPoint's restoration efforts underway
Damage assessments remain ongoing, and crews are focused on downed power lines, damaged poles and other storm-related impacts to the company's electric system. According to the National Weather Service, more rain and scattered thunderstorms are expected Saturday. Due to these weather events, the outage count is likely to continue to change throughout the day. Additionally, outage numbers may shift as crews isolate sections of the system for repairs or identify new issues requiring additional work. “Crews are making steady progress, and we appreciate our customers' patience as we work through the remaining outages," said Shane Bradford, CenterPoint's Vice President, Indiana Electric. “As weather continues to move through the area, restoration may be delayed as crews pause until safe to continue working, however, we remain focused on safely restoring power to every impacted customer as quickly as possible." As restoration progresses and weather conditions improve, efforts will transition from large-scale outages affecting multiple customers to localized outages affecting smaller numbers of customers. Some of these repairs require extensive work, such as replacing broken poles or restoring service to individual customers who have damage to customer-owned electrical equipment. What customers need to know about power restoration and repairs
When restoring power after service interruptions, CenterPoint follows a prioritization process that begins with critical infrastructure, followed by repairs that restore service to the greatest number of customers before addressing individual outages. Additionally, some customers may experience delays if repairs are needed at their home or business. One common issue after storms is damage to a weatherhead—the point where power enters a home—which is customer-owned equipment. If a weatherhead is damaged, customers must have a licensed electrician make necessary repairs before CenterPoint can restore service. After repairs are completed, customers should call 800-227-1376 to request reconnection. Safety tips
CenterPoint encourages customers to take steps to prepare for severe weather: - Downed power line safety: Stay at least 35 feet away from downed power lines and report them by calling 800-227-1376.
- Work crew safety: Be cautious around work crews and give them plenty of room to safely assess damage and make repairs.
- Generator safety: Never connect a portable electric generator directly to a building's electrical system during a power outage; electricity could back-feed into the power lines, potentially endangering CenterPoint workers. Only use a portable generator in a well-ventilated area and never run it inside or in a garage to avoid carbon monoxide fumes, which can be deadly.
- Call before digging: Call 811 to locate utility lines prior to digging on a property.
Electric customers encouraged to enroll in Power Alert Service®
Customers are encouraged to enroll in Power Alert Service® to receive outage details, estimated restoration times, as available or determined, and customer-specific restoration updates in the event of severe weather. With the option to receive updates via phone call, text or email, Power Alert Service® helps keep customers informed of restoration progress during an outage event. Customers can get storm-related electric, natural gas and flooding safety tips at CenterPointEnergy.com/StormCenter.
CenterPoint Energy returns to normal operations as NWS Red Flag Warning expires, weather and wind threat ends for Greater Houston region Houston – March 15, 2025 – CenterPoint Energy is returning to normal operations as the National Weather Service's Red Flag Warning and risks of fire weather and strong wind end for the Greater Houston area. The company's system performed well, with less than one percent of customers experiencing an outage throughout today's high wind gusts. Over the last several days, CenterPoint actively prepared for potentially dangerous weather conditions by conducting pre-inspections of electric and natural gas equipment, adjusting power line safety settings in higher-risk areas, communicating with customers and working with local emergency agencies. Key Actions to Help Keep Customers Safe
Leading up to today's Red Flag Warning, CenterPoint's safety preparations included the following key actions: - Inspected and Hardened Key Power Lines: Inspected power lines in areas of heightened fire risk, cleared hazardous vegetation near power lines and conducted repairs where needed, ahead of potential extreme weather.
- Inspected Natural Gas Facilities: Inspected gas facilities in areas of heightened fire risk and cleared hazardous vegetation near facilities ahead of potential extreme weather.
- Adjusted Safety Settings: Adjusted the settings on some power lines for safety between noon and 9 p.m. today.
- Brought on Additional Crews to Respond: Positioned CenterPoint crews and additional contractors to respond to any power outages or natural gas service interruptions that may occur.
- Coordinated with Local Emergency Partners: Proactively shared information with state, county and local leaders.
- Communicated with Customers: Proactively communicated with approximately 330,000 customers in the Cypress, Fort Bend and Katy areas by phone, text or email about the potential for temporary safety outages due to high fire danger.
“We'd like to thank our customers for their patience as some might have experienced temporary outages today as we took the necessary precautions to protect the community and our electric system from the fire weather conditions," said Tony Gardner, Senior Vice President and Chief Customer Officer. “While today's weather risk has passed, we encourage customers to take this opportunity to enroll in the company's Power Alert Service® and verify contact information so that when the next weather event might impact Greater Houston area, CenterPoint can contact you with important information regarding your electric service." CenterPoint electric customers are encouraged to enroll in the company's Power Alert Service® to receive outage details, estimated restoration times and customer-specific restoration updates by phone call, text or email. Customers can also follow @CenterPoint_TX to receive the most up-to-date information on the company's operations in the Greater Houston area and across Texas.
CenterPoint Energy working to restore remaining customers out from overnight severe weather Evansville, Ind. – March 15, 2025 – CenterPoint Energy crews have completed significant repairs to its electric system after severe storms moved through southwestern Indiana Friday night into Saturday morning. As of 9:30 p.m., approximately 200 customers remain without power. With nearly all customers restored, the majority of those still out will remain without service overnight as crews continue addressing the final localized outages. “Crews have worked tirelessly throughout the day to restore power to the majority of customers impacted by this weekend's severe weather, and we appreciate their patience," said Shane Bradford, CenterPoint's Vice President, Indiana Electric. “As we continue the final phase of restoration, our teams will focus on the remaining smaller and individual outages and will continue working overnight and into Sunday until service is restored to all customers."
Working through intermittent rain, gusty winds and occasional lightning throughout the day, crews safely repaired extensive storm damage, including downed power lines, damaged poles and other storm-related impacts to the company's electric system. “Our internal and contracted crews faced challenging conditions today while keeping safety at the forefront. We appreciate their dedication as they worked to restore service to our customers," Bradford added. At this stage, most of the remaining outages are localized, affecting smaller numbers of customers. Some of these repairs require extensive work, such as replacing broken poles or restoring service to individual customers who have damage to customer-owned electrical equipment. Customers may experience delays if repairs are needed at their home or business. One common issue after storms is damage to a weatherhead—the point where power enters a home—which is customer-owned equipment. If a weatherhead is damaged, customers must have a licensed electrician make necessary repairs before CenterPoint can restore service. After repairs are completed, customers should call 800-227-1376 to request reconnection. Customers can stay informed on remaining updates by following CenterPoint on Facebook and X (formerly Twitter).
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