CenterPoint Energy seeks recovery following completion of 7-year natural gas pipeline modernization plan
Utility files first base rate review in 14 years; Current natural gas commodity prices forecasted to remain stable; Significant methane emission reductions from Energy Efficiency savings and pipeline replacement
2020-10-30T05:00:00Z

​Evansville, Ind. – Oct. 30, 2020 – CenterPoint Energy's Indiana-based electric and gas utility, Southern Indiana Gas and Electric Co. (SIGECO), has filed a request with the Indiana Utility Regulatory Commission (IURC) for recovery of investments made within its southwestern Indiana natural gas service territory.

The filing comes at the completion of the company's 7-year, $240 million gas modernization plan, which was filed in 2013 to comply with federal pipeline safety rules and ensures the continued safe, reliable delivery of natural gas service to its more than 113,000 southwestern Indiana customers. The gas system improvements resulted in upgrades to portions of CenterPoint Energy's 3,200-mile network of distribution mains and transmission pipelines which serve nine counties in southwestern Indiana. The work primarily consisted of replacing bare steel and cast-iron distribution mains with new industry-grade plastic mains, as well as inspecting and upgrading natural gas transmission pipelines. This pipeline work has led to a 36% reduction in methane emissions since 2013. Since 2008, more than 300 miles of gas mains have been replaced in the company's southwestern Indiana territory.

Using 2013 state laws focused on federal mandates and natural gas infrastructure needs, Indiana utilities submit forward-looking capital investment plans to the IURC for review and cost recovery. The statutes provide utilities the ability for gradual investment recovery as modernization progress is made; otherwise defined as 80% of total capital expenditures and lessening the effect of a larger rate increase through traditional rate recovery. The balance of recovery must be sought through a traditional rate request at the end of the 7-year plan and is a requirement of the law. With the 2013 filing and the IURC's approval and regular review of that plan, the company is now seeking recovery of the remaining 20% of those investments.

"These infrastructure investments are vital to meeting federal mandates and ensuring the safe and reliable delivery of natural gas to our customers," said Richard Leger, Vice President of Natural Gas Distribution, Indiana and Ohio. "While our natural gas customers will experience a base rate increase to their bills, it will be the first time in nearly 14 years we have pursued such recovery. We remain focused on maintaining affordability for our customers, as demonstrated by our commitment to expense management and continuing to offer natural gas as a cost-effective, reliable energy option due to low, stable natural gas commodity prices."

If the IURC approves the request, the average residential southwestern Indiana gas customer could see an approximate increase of about $15 per month. This represents the balance of costs not already recovered through the duration of the previous seven years and recovery of additional investments before and outside of the company's modernization plan related to public and system improvements required since 2006.      

Also requested within this filing is the continuation of natural gas energy efficiency programs through 2025 and the income-eligible universal service program, which provides additional gas bill reductions during the months of December through May for eligible Indiana South customers.

"Since inception of the programs, Indiana South customers have saved approximately 37 million therms of natural gas, or enough energy to heat 46,000 homes for a year, which also contributed to more than 195,000 metric tons of CO2e emissions saved," continued Leger. "Energy efficiency programs are another way we strive to give customers the opportunity to reduce their energy usage and therefore lower their bill, while also lowering emissions."

While taking into consideration the expected bill impact for these gas infrastructure investments, bills should remain substantially lower than they were subsequent to the company's last rate case filing due to considerably lower natural gas commodity costs. Should the current recovery request be approved, total annual bills will be about $100 lower than they were in 2007-2008 when current rates were approved. As is the case with other gas utilities, Indiana South does not profit from the cost of natural gas. The utility's portfolio approach to gas purchases on behalf of customers is simply passed through dollar for dollar.

The filing now begins a comprehensive review by the IURC which will take several months to complete and will include a public hearing as part of the regulatory process. Should the plan be approved, new rates would go into effect during the third quarter of 2021. This filing has no impact on electric rates.

CenterPoint Energy's Indiana South gas territory delivers natural gas to more than 113,000 customers in Daviess, Gibson, Knox, Martin, Pike, Posey, Spencer, Vanderburgh and Warrick counties.

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 future regulatory filings, actions and decisions, including the timing and impact of such actions and decisions, the expected impact of the proposed rate adjustments on customer bills, forecasted natural gas commodity prices and any associated fluctuations, emissions reductions 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 COVID-19; (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; and (8) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, CenterPoint Energy's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

 

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 Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of June 30, 2020, the company owned approximately $32 billion in assets and also owned 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 9,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

 

 Recent News

 

 
CenterPoint Energy encourages safety awareness and education during National Safe Digging Month

Evansville, Ind. – April 11, 2024 – CenterPoint Energy is collaborating with the Common Ground Alliance to observe April as National Safe Digging Month and encourage customers to follow safe digging practices.

Anyone planning a project that requires digging should contact 811 at least two days prior to their work starting to have underground utilities located for free. CenterPoint Energy reminds customers this includes projects done by themselves or their contractors, including building a fence, planting trees, installing a deck, placing a mailbox or laying a patio.

“By taking the time to call 811 prior to starting their digging project, our customers and communities are taking a critical first step in helping keep everyone safe," said Chasta Martin, Vice President, Field Services at CenterPoint Energy. “No matter how shallow the digging project, everyone can help prevent safety incidents and potential loss of service for their fellow community members by having underground utility lines located."

According to a recent national survey*, approximately 51% of U.S. homeowners plan to dig on their properties this year. Of those surveyed, 56% are planning to dig without contacting 811 first. CenterPoint Energy and the Common Ground Alliance also encourage homeowners to verify that their contractors contact 811 prior to performing work.

Safe digging practices are required by state law and help prevent damaging underground natural gas, electric, communications, water and sewer lines. Digging without knowing the approximate location of underground utilities can result in serious injury, service disruptions, fines and costly repairs.

If a natural gas line is struck or ruptured outside of a home or business, customers are reminded to do the following:

  • Leave the area immediately on foot. Do not attempt to restart or move powered equipment or use your mobile device or any other item that could cause a spark.
  • Go directly to a safe location. Once a safe distance, call 911 and CenterPoint Energy.
  • Remain in a safe area until emergency personnel direct them to do otherwise.
  • Don't try to repair a natural gas leak. Leave all repairs to a trained technician.

 
Visit 811BeforeYouDig.com for more information about 811 and the process to have underground utility lines marked. For more information about natural gas safety, visit CenterPointEnergy.com/Safety.  

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 December 31, 2023, the company owned approximately $40 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.
 
*About the study
Online survey among 1,000 US Homeowners, aged 21+ fielded between March 5-7, 2024. The survey was conducted by Censuswide, a global insight-driven research center on behalf of the Common Ground Alliance. The margin of error based on a 95% confidence level is +/- 3%.


CenterPoint Energy encourages safety awareness and education during National Safe Digging Month

​​

Dayton, Ohio – April 11, 2024 – CenterPoint Energy is collaborating with the Common Ground Alliance to observe April as National Safe Digging Month and encourage customers to follow safe digging practices.

Anyone planning a project that requires digging should contact 811 at least two days prior to their work starting to have underground utilities located for free. CenterPoint Energy reminds customers this includes projects done by themselves or their contractors, including building a fence, planting trees, installing a deck, placing a mailbox or laying a patio.

“By taking the time to call 811 prior to starting their digging project, our customers and communities are taking a critical first step in helping keep everyone safe," said Chasta Martin, Vice President, Field Services at CenterPoint Energy. “No matter how shallow the digging project, everyone can help prevent safety incidents and potential loss of service for their fellow community members by having underground utility lines located."

According to a recent national survey*, approximately 51% of U.S. homeowners plan to dig on their properties this year. Of those surveyed, 56% are planning to dig without contacting 811 first. CenterPoint Energy and the Common Ground Alliance also encourage homeowners to verify that their contractors contact 811 prior to performing work.

Safe digging practices are required by state law and help prevent damaging underground natural gas, electric, communications, water and sewer lines. Digging without knowing the approximate location of underground utilities can result in serious injury, service disruptions, fines and costly repairs.

If a natural gas line is struck or ruptured outside of a home or business, customers are reminded to do the following:

  • Leave the area immediately on foot. Do not attempt to restart or move powered equipment or use your mobile device or any other item that could cause a spark.
  • Go directly to a safe location. Once a safe distance, call 911 and CenterPoint Energy.
  • Remain in a safe area until emergency personnel direct them to do otherwise.
  • Don't try to repair a natural gas leak. Leave all repairs to a trained technician.

 
Visit 811BeforeYouDig.com for more information about 811 and the process to have underground utility lines marked. For more information about natural gas safety, visit CenterPointEnergy.com/Safety.  

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 December 31, 2023, the company owned approximately $40 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.
 
*About the study

Online survey among 1,000 US Homeowners, aged 21+ fielded between March 5-7, 2024. The survey was conducted by Censuswide, a global insight-driven research center on behalf of the Common Ground Alliance. The margin of error based on a 95% confidence level is +/- 3%.​

​

CenterPoint Energy provides final restoration update following Tuesday’s record-breaking weather event

Evansville, Ind. – April 5, 2024 – In the aftermath of at least four tornadoes, confirmed by the National Weather Service in Paducah, Ky., that struck CenterPoint Energy's Indiana Electric service territory, crews are in the final stages of efforts to restore power to the remaining impacted customers.

Damage from severe weather resulted in electric service interruptions peaking at nearly 24,000 CenterPoint Energy customers. At this time, 99% of customers in the region have power and crews have been able to safely restore power to nearly all impacted customers, with fewer than 300 customers without power as of 5 p.m. CT.
 
All remaining restorations for customers who are able to receive service are expected to be completed by tomorrow morning.
 

“We appreciate our customers' patience and understanding as this has been a difficult week for many," said Richard Leger, Senior Vice President, Indiana Electric at CenterPoint Energy. “These storms caused significant damage throughout our region and provided challenges for our crews throughout the restoration process. I want to extend a special thank you to these crews and contractors. Their expertise and dedication under challenging conditions have been instrumental to our efforts in restoring power. I am equally grateful for our restoration support teams, who have played an essential role in making sure our crews were taken care of, as well as executing other essential functions of our operations."​​​​

Leger added, “I also want to recognize the many emergency responders, elected officials, community members and volunteers who helped those in need after the devasting storms. When Mother Nature hits us with her worst, our communities always come together to show our very best."​

Over the course of the company's response, CenterPoint Energy replaced approximately 200 poles, approximately 100 transformers, patrolled miles of lines, replaced and strung hundreds of spans of wire, and removed and trimmed vegetation.

Following the severe weather, CenterPoint Energy initiated an immediate and comprehensive response to assess and repair the widespread damage to its electric system. The damage from the severe weather events was significant, with severe vegetation damage, extensive debris, downed poles and lines. Restoration efforts throughout the week were further complicated by periodic high wind gusts that resulted in additional damage. Despite these challenges, crews worked tirelessly to make necessary repairs and restore power.

According to the National Weather Service (NWS) in Paducah, KY, storms on April 2 produced peak winds of 115 miles an hour. Normally, the NWS can complete damage surveys in a single day. However, surveyors encountered so much widespread damage that it is taking longer than normal to complete the necessary surveying to determine the cause of the damage. NWS surveyors continued their assessment of southwestern Indiana Friday.​

Some customers may still experience delays in power restoration, particularly if there has been damage to the weatherhead – the point of entry from the service drop to the home. If damaged, the customer will need to have a licensed electrician make necessary repairs before power can be restored. After repairs are completed, customers can call 800-227-1376 to request reconnection of service.

​

CenterPoint Energy provides storm restoration update

Evansville, Ind. – April 4, 2024 – CenterPoint Energy has issued the following update including information provided with permission from the National Weather Service in Paducah, KY as electric restoration efforts continue in southwestern Indiana:

As of 3:30 p.m., there are approximately 2,300 electric customers without power. Additionally, CenterPoint Energy has been in direct communication with the National Weather Service (NWS) in Paducah, Ky., as it continues its investigation into the damages from Tuesday's storms.

Normally, the NWS can complete damage surveys in a single day. However, surveyors are encountering so much widespread damage that it will take much longer than normal to complete the necessary surveying to determine the cause of the damage.

According to the NWS, the storms on April 2 produced widespread strong and damaging winds along with multiple tornadoes. The storms covered a large part of southwest Indiana and impacted a significant amount of infrastructure.

The NWS indicated that much of the damage it encountered was debris which included trees or tree branches that have fallen on power lines and snapped a significant number of power poles.

The NWS also noted that the amount and scope of the damage it has encountered is among the worst it has seen in years across southwest Indiana. 

As CenterPoint Energy crews continue to uncover damage and encounter new challenges while making repairs, restoration may continue to take more time than customers typically experience following a routine storm event.  We appreciate our customer's patience and are committed to working around the clock until our last customer is restored. ​

​

CenterPoint Energy encourages safety awareness and education during National Safe Digging Month

Minneapolis – April 3, 2024 – CenterPoint Energy is collaborating with the Common Ground Alliance to observe April as National Safe Digging Month and encourage customers to follow safe digging practices.  

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. CenterPoint Energy reminds customers this includes projects done by themselves or their contractors, including building a fence, planting trees, installing a deck, placing a mailbox or laying a patio.  

“By taking the time to call 811 prior to starting their digging project, our customers and communities are taking a critical first step in helping keep everyone safe," said Chasta Martin, Vice President, Field Services at CenterPoint Energy. “No matter how shallow the digging project, everyone can help prevent safety incidents and potential loss of service for their fellow community members by having underground utility lines located." 

According to a recent national survey*, approximately 51% of U.S. homeowners plan to dig on their properties this year. Of those surveyed, 56% are planning to dig without contacting 811 first. CenterPoint Energy and the Common Ground Alliance encourage homeowners to contact 811 prior to performing work and also encourage homeowners to verify that their contractors contact 811 prior to performing work.  

Safe digging practices are required by state law and help prevent damage to underground natural gas, electric, communications, water and sewer lines. Digging without knowing the approximate location of underground utilities can result in serious injury, service disruptions, fines and costly repairs.  

If a natural gas line is struck or ruptured outside of a home or business, customers are reminded to do the following:  

  • Leave the area immediately on foot. Do not attempt to restart or move powered equipment or use your mobile device or any other item that could cause a spark. 
  • Go directly to a safe location, where you cannot smell gas, and continue to maintain a safe distance. Once at a safe distance, call 911 and CenterPoint Energy. 
  • Remain in a safe area until directed by emergency personnel to do otherwise. 
  • Don't try to repair a natural gas leak. Leave all repairs to a trained technician.  

Visit 811BeforeYouDig.com for more information about 811 and the process to have underground utility lines marked. For more information about natural gas safety, visit CenterPointEnergy.com/Safety.   

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 December 31, 2023, the company owned approximately $40 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. 

*About the study 

Online survey among 1,000 US Homeowners, aged 21+ fielded between March 5-7, 2024. The survey was conducted by Censuswide, a global insight-driven research center on behalf of the Common Ground Alliance. The margin of error based on a 95% confidence level is +/- 3%.