Little Rock, AR – April 6, 2020 – CenterPoint Energy is proposing a 5% rate decrease, totaling approximately $8.1 million, for its Arkansas natural gas customers, starting with bills that will be calculated on Oct. 1, 2020. In addition, customers' monthly bills will soon see the impact of lower natural gas prices, reflected in the utility's semiannual adjustment to its Gas Supply Rate, which took effect April 1.
CenterPoint Energy provides natural gas service to about 400,000 residential and business customers in Arkansas.
"We have succeeded in reducing our operational expenses and, as a result of current commodity pricing, customers will also benefit from the lower price we pay for the natural gas we deliver to our customers," said Cindy Westcott, vice president, Arkansas and Oklahoma Region, CenterPoint Energy. "We are committed to passing these savings along to our customers, which is all the more critical at this time when so many families and businesses are experiencing financial challenges due to the coronavirus emergency."
CenterPoint Energy proposed the 5% rate reduction in its annual Formula Rate Plan (FRP) filed on April 6, 2020, with the Arkansas Public Service Commission. The proposal is subject to commission review and approval.
Under the proposal, a CenterPoint Energy residential customer with average gas usage would see the FRP portion of their monthly bill decrease by approximately $1.30, or about 2.6% of their total natural gas bill.
The proposed FRP decrease is largely a result of CenterPoint Energy's successful efforts to limit its operations and maintenance expenses. Under the FRP, customers pay the utility's actual cost-of-service, while also benefiting from cost savings.
As of April 1, CenterPoint Energy customers in Arkansas also began to benefit from lower natural gas prices, which will show up in the Gas Supply Rate (GSR) portion of their monthly natural gas bills. The new GSR declined by 16.7%, mainly driven by lower market prices for natural gas. The impact on a customer's total bill will depend on actual gas usage each month.
Through the GSR, which is adjusted every six months, CenterPoint Energy passes on to customers the actual prices it pays for natural gas with no markup. The utility works with a variety of natural gas suppliers to buy natural gas throughout the year on a competitive basis to ensure reliable supplies at reasonable prices.
During the current coronavirus emergency, CenterPoint Energy is also working with customers who may need payment assistance, arrangements or extensions. In addition, the company has temporarily suspended natural gas disconnections for nonpayment. Customers can discuss payment options by calling 1-800-992-7552.
About CenterPoint Energy, Inc.
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 53.7 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 $35 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.
