CenterPoint Energy seeks to lower customers’ electric bills
Securitization of A.B. Brown assets allows for expected customer savings
2022-05-10T05:00:00Z

Evansville – May 10, 2022 - CenterPoint Energy, Inc.'s (NYSE: CNP) Indiana-based electric and natural gas business, Southern Indiana Gas and Electric Company (CenterPoint Energy Indiana South), has filed a request with the Indiana Utility Regulatory Commission (IURC) for securitization of assets of its A.B. Brown coal plant, which should result in a decrease to customers' electric bills by an estimated nearly $60 million versus traditional rate making.

Last year, legislation was passed in Indiana allowing for a securitization pilot to benefit CenterPoint Energy's customers. CenterPoint Energy advocated for the state law change to allow this pilot to demonstrate how the tool saves customers money over traditional rate making where costs typically are recovered at a much higher rate-of-return. As previously announced, CenterPoint Energy plans to retire the A.B. Brown coal plant in late 2023 as part of its long-term electric generation transition plan.

Securitization of these assets will allow for the removal of the remaining value of the coal plant from customer rates and effectively refinance them at a much lower interest rate. The remaining value will be financed, along with other qualified costs, through the issuance of low-cost bonds enabled by the legislation. If approved, customers should see a monthly bill reduction beginning in early 2023.  Future savings are expected, as deferred costs will be included within the securitization. Securitization is dependent on plans to retire the A.B. Brown plant.

"Keeping our customers' and other stakeholders' interests top-of-mind, we are deploying a cost-effective strategy to help reduce bill impacts as we continue on with our long-term electric generation transition plan," said Steve Greenley, Senior Vice President of Generation Development for CenterPoint Energy. "CenterPoint Energy's transition to a generation portfolio consisting of mostly renewable resources is expected to save customers an estimated $320 million over the next 20 years. If approved, the securitization of the A.B. Brown assets is expected to save nearly $60 million over the same general timeframe."

While CenterPoint Energy will be the first utility to utilize securitization in Indiana, this is an established practice that has saved utility customers millions of dollars in nearly 30 states. CenterPoint Energy plans to reinvest the proceeds from the securitization bonds into its generation transition plan and invest in renewable resources such as wind- and solar-powered generation and battery storage which will be backed up by planned natural gas generation resources to maintain reliability.

"Securitization allows us to reinvest in our state and provides a catalyst for the continued growth of renewable energy in Indiana," added Greenley. "The increasing use of renewable energy for CenterPoint Energy Indiana South's generation is also expected to attract new economic development in Indiana, especially from companies with environmental and sustainability goals."

For more information on CenterPoint Energy's long-term electric generation transition plan, visit www.centerpointenergy.com/smartenergyfuture.

CenterPoint Energy delivers electricity to approximately 150,000 customers in southwest Indiana in all or portions of Gibson, Dubois, Pike, Posey, Spencer, Vanderburgh and Warrick counties. Programs and services are operated under the brand CenterPoint Energy by Southern Indiana Gas and Electric Company d/b/a CenterPoint Energy Indiana South.

Forward Looking Statement:

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events, such as the timing and approval of the CenterPoint Energy's securitization request and the benefits therefrom, including anticipated reductions to customer bills and the success of securitization in Indiana, the timing of CenterPoint Energy's generation transition plan, including the anticipated retirement of the A.B. Brown facility, and the mix of renewable resources and expected financial benefits of such generation transition to customers, and the intended use of securitization proceeds, 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 disruption to the global supply chain; (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, 2021, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 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 Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. As of March 31, 2022, the company owned approximately $35 billion in assets. With approximately 8,900 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

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CenterPoint Energy reports natural gas outage for customers in Vinton, Louisiana
Vinton, La. — Dec. 1, 2023 — CenterPoint Energy is responding to a natural gas outage in Vinton, La., impacting more than 700 customers. The company is further investigating the cause of the outage.  
  
“Safety is our top core value, and we will keep it at the forefront as we work to restore natural gas service to impacted residential and business customers as safely and quickly as possible,” said Bo Murphy, Vice President, Louisiana and Mississippi Natural Gas. “We have safely started the process of turning off each customer’s natural gas meter. Additional crews from nearby areas will help expedite the restoration process." 
  
This evening, CenterPoint Energy technicians will begin visiting customers to restore service. Technicians will need access to enter customer homes and businesses to perform safety checks and re-establish service to the homes. If technicians visit a home and no one over the age of 18 is present, a door hanger with details on how to contact the company to schedule a relight will be left on the door. Our crews and contractors wear identification badges and will show them to you upon request.  
  
Safety tips for Vinton residents  
  • ​Be alert for natural gas leaks. If you smell natural gas – which has a distinctive, strong odor, often compared to rotten eggs or sulfur – leave the area immediately on foot and tell others to leave, too. Do not turn the lights on or off, smoke, strike a match, use a phone or operate anything that might cause a spark, including a flashlight or a generator. Once safely away from the area, call 911 and CenterPoint Energy, and the company will send a trained service technician immediately. 
  • Do not attempt to turn natural gas valves on or off. For your safety, do not turn any valves or tamper with the natural gas meter. If the smell of gas is present, leave the area immediately and tell others to leave, too. Call 911 then call CenterPoint Energy at 888-876-5786.  
  
We appreciate your patience as we work as safely and as quickly as possible to resume natural gas service to homes and businesses. 
  
For updates, follow @CNPAlerts on X/Twitter. ​​

CenterPoint Energy hosts grand opening of state-of-the-art training center in southwest Houston

Houston — Nov. 22, 2023 — On Nov. 16, CenterPoint Energy celebrated the grand opening of its new Hiram O. Clarke Training Center by welcoming members of the community to take a behind-the-scenes tour. 
 
This 150,000-square-foot training center employs more than 25 expert instructors who are currently leading approximately 400 electric apprentices and 320 natural gas new hires through CenterPoint Energy’s comprehensive training programs. It will also host tenured employees for continuing education and support the company’s partnerships with Career and Technical Education school programs. 
 
During the tour, visitors were able to experience the cutting-edge training offered by CenterPoint at this center. The group visited classrooms with equipment and tools and hands-on simulation areas with electric circuits and natural gas line connections, including wood utility poles to practice climbing and making repairs. The visitors were also able to see how the facility could be used for emergency operations during severe weather or natural disasters. 
 
“This new training facility is a testament to our dedication to safety, which extends to our customers and the communities we have the privilege to serve,” said Al Payton, Vice President of Safety and Technical Training at CenterPoint. “By providing our employees with the latest safety and technical training incorporating best practices, we will continue to strive to provide the safe, reliable electricity and natural gas that enable everyday life and the pursuit of possibilities for our millions of customers.”   
 
With safety as our top core value, the company is dedicated to sustaining a culture of excellence with industry-leading training and safety at the forefront. The opening of the facility is also part of the company’s ongoing efforts to nurture and develop local talent, supporting workforce development and career opportunities for the next generation. 
 
Payton said, “This facility really showcases CenterPoint Energy’s industry-leading practices and our commitment to the development of our workforce.”  
 
 







As temperatures drop, CenterPoint Energy offers tips to save energy and stay safe while keeping warm

Minneapolis – Nov. 16, 2023 – With the coldest days of winter ahead, CenterPoint Energy is reminding customers about simple energy-saving and safety steps to help lower heating bills, while continuing to stay safe and warm this winter.

Customers who believe they may have trouble paying their heating bills this winter should contact CenterPoint Energy to set up a payment arrangement. Customers can also find out if they are eligible for energy assistance programs to help pay their bills. To learn more, visit CenterPointEnergy.com/PaymentAssistance.

Energy-saving Tips

  • Make sure your heating system is operating safely and efficiently. An annual inspection and tune-up by a qualified technician are recommended.
  • Change or clean your furnace filter regularly. This helps maximize your furnace's efficiency and life.
  • Turn down your thermostat. By lowering your thermostat by 7-10 degrees at night or when you're away for at least eight hours, you can potentially save 10% on your heating costs. With a programmable thermostat, you can have your heating system work around your schedule.  
  • Keep warm air in and cold air out of your home. Use caulk or weather-stripping to seal leaks around doors, windows and other openings such as pipes or ducts. Close fireplace dampers when not in use, so you don't lose heat. Find out more about free and low-cost energy efficiency products offered to CenterPoint customers at CenterPointEnergy.com/DIYNow.
  • Open curtains and blinds during the day. This allows the sun to warm your house. Close curtains and blinds at night, so you don't lose heat when the sun sets.
  • Circulate warm air with your ceiling fans. Set your ceiling fans to turn clockwise slowly to move warm air from the ceiling to your living levels.

To learn more about energy-saving tips, visit CenterPointEnergy.com/EnergySavingTips.

Safety Tips

  • Use space heaters safely. Make sure your space heater has an automatic shut-off, and keep children, pets and all items at least three feet away from it. A space heater that uses natural gas, propane or wood should be vented to the outside. Stoves and ovens should never be used for space heating.
  • Test your carbon monoxide (CO) and smoke alarms to make sure they work properly. Change batteries regularly. Alarms don't last forever, so replace them according to the manufacturer's instructions. 
  • Know the signs of CO poisoning. Early symptoms such as headache and fatigue are similar to the flu, but without a fever. Continued CO exposure can lead to more severe headaches, dizziness, nausea, difficulty thinking clearly and fainting. If everyone in a household is experiencing these symptoms, it could be CO poisoning. If you suspect you could have CO poisoning, leave the area immediately, get fresh air and call 911.
  • Immediately report a suspected natural gas leak. If you smell the “rotten egg" odor of natural gas, immediately leave on foot, go to a safe location and call both 911 and CenterPoint Energy at 800-296-9815. Don't use electric switches and outlets, phones (including cell phones), drive or start a car inside or close to the location or do anything that could cause a spark.

To learn more about natural gas safety, visit CenterPointEnergy.com/Safety.

CenterPoint Energy is Minnesota's largest natural gas utility, serving the energy needs of more than 910,000 residential and business customers.

CenterPoint Energy files request to invest in safety, reliability and advancing decarbonization technologies for Minnesota's future

Minneapolis – Nov. 1, 2023 – CenterPoint Energy filed an application with the Minnesota Public Utilities Commission (the “Commission") today requesting an adjustment to delivery charges in 2024 and 2025 for the company's natural gas business in Minnesota.

Known as a rate case, the proposed adjustment would help the utility not only comply with required federal regulations but also make meaningful investments to decarbonize and continue the safe and reliable operation of its 14,000-mile pipeline system. As the largest natural gas utility in Minnesota, CenterPoint Energy delivers energy to more than 910,000 residential and business customers in Minnesota.

“Our customers and communities benefit from the meaningful investments we make into our natural gas distribution system," said Christe Singleton, CenterPoint Energy's Vice President, Minnesota Gas. “The rate case is based on the need to maintain a safe, reliable system that delivers the essential and increasingly clean energy our customers count on each day, especially the coldest days."

Singleton added, “We're excited about the Natural Gas Innovation Act plan that we filed with the Commission this past June as part of our commitment to evaluating innovative solutions that help reduce emissions to support a cleaner energy future. Our innovation plan will increase access to renewable energy resources and innovative technologies such as the CarbinX technology that helps our customers reduce their onsite emissions. This rate case filing proposes to recover certain costs associated with the plan."

CenterPoint is committed to innovative, comprehensive solutions that reduce greenhouse gas emissions and advance Minnesota's cleaner energy future. In 2022, CenterPoint began producing green hydrogen, which is hydrogen made with renewable electricity, to blend it into natural gas at low levels of concentration for delivery to customers in Minneapolis. An additional project, proposed within its innovation plan, would produce renewable electricity on site for hydrogen production.

The requested increase is approximately 6.5% or $84.6 million for 2024 and an additional approximately 3.7% or $51.8 million for 2025. If approved, the requested increase would add $5.91 to a typical

residential customer's monthly delivery charge in 2024 and an additional $2.58 to a typical residential customer's monthly delivery charge in 2025. The delivery charge accounts for roughly 40-50% of a typical residential customer's monthly bill.

The rest of a customer's bill is the cost of natural gas which is passed through at cost. CenterPoint Energy does not mark up or profit from the purchase or sale of natural gas. For the 2023-2024 winter season, natural gas costs are estimated to be lower than the 2022-2023 winter season, assuming normal winter weather, that would flow through to mitigate customer bills.

CenterPoint Energy is asking the Commission to review and approve the proposed new rates, which are likely to occur in early 2025. A proposed interim rate increase of approximately 5.3% would take effect on Jan. 1, 2024, while the rate case is pending. Additionally, an interim rate would apply starting on Jan. 1, 2025, for an additional 2.4% increase.

More details about the rate case can be found at CenterPointEnergy.com/RateCase.

About CenterPoint Energy

As the only investor-owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. As of September 30, 2023, the company owned approximately

$39 billion in assets. With approximately 9,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

Forward Looking Statement

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward- looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events, such as the expected prices of natural gas and the subsequent impact on customer bills, assumptions regarding winter weather, the timing of and proposed rates to be approved by the Commission, the approval of the Natural Gas Innovation plan, the related renewable projects, and the anticipated benefits, including reductions in greenhouse gas emissions, and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the impact of pandemics, including the COVID-19 pandemic; (2) financial market conditions; (3) general economic conditions; (4) the timing and impact of future regulatory and legislative decisions; (5) effects of competition; (6) weather variations; (7) changes in business plans; (8) continued disruptions to the global supply chain and increases in commodity prices; (9) legislative decisions, including tax and developments related to the environment such as global climate change, air emissions, carbon and waste water discharges; (10) CenterPoint Energy's ability to execute on its initiatives, targets and goals and operations and maintenance goals and (11) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and CenterPoint's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

 


CenterPoint Energy files to change natural gas rates for customers in Texas

Houston – Oct. 31, 2023 – CenterPoint Energy filed an application with the Railroad Commission of Texas and municipal regulatory authorities to set new natural gas base rates that would be applied consistently across the company's approximately 1.9 million Texas customers.

CenterPoint Energy remains dedicated to its capital investment strategy for safety, reliability and growth. The company's current ten-year natural gas capital investment plan of $16 billion is expected to largely support pipeline modernization, smart metering technology, growth and customer additions.

“For the benefit of our customers and to reduce administrative burden on all of our stakeholders, for the first time, we will be combining our four Texas natural gas jurisdictions into a single rate case filing," said Steve Bezecny, Vice President, Regulatory Services, Natural Gas for CenterPoint Energy. “Once new statewide rates are established in this proceeding, all future increases or decreases in costs will be applied consistently across the state, including our annual Gas Reliability Infrastructure Program (GRIP) filings."

The need for a rate change is primarily driven by CenterPoint Energy's continuing investment in the safety and reliability of its natural gas system, including new Intelis natural gas meters that feature an integrated safety shutoff valve, changes to depreciation rates that better reflect the actual life and salvage characteristics of the company's assets, and changes in other costs to serve its customers.

“We are continuing to upgrade pipelines across our service territory, further enhancing safety and reducing methane emissions," said Nathan Brownell, Vice President, Texas Gas for CenterPoint Energy. “CenterPoint Energy continues to use data-driven solutions in our work, and we operate one of the world's largest fleets of Picarro Surveyor advanced natural gas leak survey detection."

CenterPoint Energy expects that this combined filing will result in reduced monthly bills for certain customers, specifically to those outside of the Greater Houston area, as well as large commercial and industrial users. Those residential customers outside of that area may see a moderate overall monthly bill increase. The company anticipates the new rates being approved and implemented in the second quarter of 2024.

“As we head into the winter months, natural gas prices are lower for most of the areas we serve in the state compared to last year, which will continue to help alleviate the impact to customer bills. We expect most residential customers in Texas will see an average monthly bill this winter at least eight percent lower than last winter, but that will vary by division until statewide rates are adopted," added Bezecny.

CenterPoint Energy has programs to assist customers who experience financial hardship. If customers are or anticipate having trouble paying their natural gas bills, they should contact the company right away at 800-752-8036 or visit the company's website, www.CenterPointEnergy.com, and should not wait until they receive a disconnection/shut-off notice or natural gas service has been disconnected. 

 

Forward Looking Statements

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 such as the expected prices of natural gas and the subsequent impact on customer bills, assumptions regarding winter weather, the timing of and proposed rates to be approved by the Railroad Commission and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the impact of pandemics, including the COVID-19 pandemic; (2) financial market conditions; (3) general economic conditions; (4) the timing and impact of future regulatory and legislative decisions; (5) effects of competition; (6) weather variations; (7) changes in business plans; (8) continued disruptions to the global supply chain and increases in commodity prices; (9) legislative decisions, including tax and developments related to the environment such as global climate change, air emissions, carbon and waste water discharges; (10) CenterPoint Energy's ability to execute on its initiatives, targets and goals and operations and maintenance goals and (11) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and CenterPoint's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023, and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

 

About CenterPoint Energy, Inc.

As the only investor owned electric and gas utility based in Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. As of September 30, 2023, the company owned approximately $39 billion in assets. With approximately 9,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.