Key step in CenterPoint Energy’s long-term electric generation transition plan receives approval
Natural gas combustion turbines to provide reliable generation to complement transition to majority renewables portfolio, while reducing carbon emissions
2022-06-28T05:00:00Z

Evansville, Ind.June 28, 2022– CenterPoint Energy, Inc. (NYSE: CNP) today announced its Indiana-based electric utility business, CenterPoint Energy Indiana South, received approval for the construction of natural gas generation from the Indiana Utility Regulatory Commission (IURC), a key step in the company's long-term electric generation transition plan. CenterPoint Energy intends to construct two natural gas combustion turbines (CTs) to replace portions of its existing coal-fired generation fleet. The company's generation transition plan will significantly evolve the way the company generates power for its 150,000 customers across southwestern Indiana by combining a cleaner portfolio of renewables and complementary natural gas.

The estimated $334 million natural gas facility will provide an output of 460 megawatts (MW), sized appropriately to reliably support the anticipated electric generation needed upon the retirement of A.B. Brown units 1 and 2 in late 2023. The CTs will be constructed at the current site of the power plant in Posey County, Ind., and will assist CenterPoint Energy in delivering on its commitment to provide a cost-effective, well-balanced energy mix.

The company's 2020 Integrated Resource Plan (IRP) illustrated a preferred portfolio including nearly two-thirds of energy generated from renewable resources as well as natural gas generation, which is projected to ultimately save electric customers an estimated $320 million over the 20-year planning period. Through the IRP process, CenterPoint Energy performed significant analysis and considered public input to arrive at the most reliable and cost-effective solution for customers.

"Although the majority of the proposed generation outlined in our plan comes from renewable resources, there remains a need for reliable, resilient and fast-ramping generation to operate around-the-clock when the sun and wind are insufficient to power the renewable resources," said Steve Greenley, Senior Vice President, Generation Development. "While the combustion turbines may not run constantly, it is very likely they will operate several hours each day in order to supplement our renewable generation with a lower carbon solution, when renewable facilities are not at peak generating levels."

In addition, the company recently filed for securitization of its A.B. Brown assets, which was contingent on the IURC approval of the natural gas CTs and may result in up to $60 million in additional savings to customers over the same time period.

"Today's approval will have no immediate impact on customer electric bills," added Greenley. "The recovery of the investments associated with the CTs will be requested through a future electric rate case. When combining the savings to be realized through securitization and other bill reductions associated with the added renewable investments, the average residential customer is estimated to see a bill impact of less than $10 per month for the total generation transition."

The replacement of most of the company's coal-fired generation will help mitigate costs associated with compliance of ever-evolving environmental regulations and the higher operating costs of continuing to run the aging units. By replacing much of the coal-fired generation with significantly more efficient technologies like renewables, including a large percentage of universal solar, the replacement will move CenterPoint Energy significantly forward on achieving its goal of net zero on direct carbon emissions by 2035.

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, including anticipated timing, savings and impact to customer bills as a result of the generation transition plan, including the CT facilities, the timing of CenterPoint Energy's generation transition plan, including the anticipated retirement of the A.B. Brown facility and the construction and completion of the CT facilities and the anticipated capacity of such facilities, and the mix of renewable resources and expected financial benefits of such generation transition to customers, 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.

Net Zero Disclaimer: While CenterPoint Energy believes that it has a clear path towards achieving its net zero emissions (Scope 1 and Scope 2) by 2035 goals, its analysis and path forward required it to make a number of assumptions. These goals and underlying assumptions involve risks and uncertainties and are not guarantees. Should one or more of CenterPoint Energy's underlying assumptions prove incorrect, its actual results and ability to achieve net zero emissions by 2035 could differ materially from its expectations. Certain of the assumptions that could impact its ability to meet its net zero emissions goals include, but are not limited to: emission levels, service territory size and capacity needs remaining in line with company expectations (inclusive of changes related to the sale of CenterPoint Energy's Natural Gas businesses in Arkansas and Oklahoma); regulatory approval of Indiana Electric's generation transition plan; impacts of future environmental regulations or legislation; impacts of future carbon pricing regulation or legislation, including a future carbon tax; price, availability and regulation of carbon offsets; price of fuel, such as natural gas; cost of energy generation technologies, such as wind and solar, natural gas and storage solutions; adoption of alternative energy by the public, including adoption of electric vehicles; rate of technology innovation with regards to alternative energy resources; CenterPoint Energy's ability to implement its modernization plans for its pipelines and facilities; the ability to complete and implement generation alternatives to Indiana Electric's coal generation and retirement dates of Indiana Electric's coal facilities by 2035; the ability to construct and/or permit new natural gas pipelines; the ability to procure resources needed to build at a reasonable cost, the lack of or scarcity of resources and labor, the lack of any project cancellations, construction delays or overruns and the ability to appropriately estimate costs of new generation; impact of any supply chain disruptions; changes in applicable standards or methodologies; and enhancement of energy efficiencies. In addition, because Texas is in an unregulated market, CenterPoint Energy's Scope 2 estimates do not take into account Texas electric transmission and distribution assets in the line loss calculation and exclude emissions related to purchased power between 2024E-2026E. CenterPoint Energy's Scope 3 estimates are based on the total natural gas supply delivered to residential and commercial customers as reported in the U.S. Energy Information Administration (EIA) Form EIA-176 reports and do not take into account the emissions of transport customers and emissions related to upstream extraction. Please also review 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.

 

 Recent News

 

 

CenterPoint Energy has restored power to more than 98% of impacted customers, converges on localized outages in hardest-hit areas

Houston — July 17, 2024 – CenterPoint Energy today announced the crews have restored power to more than 98% of impacted customers, ahead of prior expectations. The company remains on track to restore electricity to all customers who can receive power by Friday, July 19.

“We want to thank first responders and local law enforcement for all of their support and partnership as our crews work around-the-clock to restore power for every last customer in the wake of Hurricane Beryl. More than 98% of impacted customers are now restored and we are directing our crews to get remaining customers who are without power back online as safely and quickly as possible," said Lynnae Wilson, Senior Vice President, Electric Business.

Wilson continued, “We are deeply grateful for the tireless efforts of our mutual assistance crews who dropped everything to help our communities when we needed them most. As we shift our focus from restoration to prevention, we will be calling on these additional vegetation management resources to execute accelerated plans to prune and remove trees and other vegetation to prepare for the rest of hurricane season."

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Supporting our communities

CenterPoint has continued to support the communities it serves throughout this challenging time and beyond. Since Hurricane Beryl made landfall, the CenterPoint Energy Foundation has contributed nearly $1.7 million to disaster relief organizations, including: United Way Relief Fund, Salvation Army, Houston Food Bank, Red Cross Coastal Bend, Red Cross Coastal Plains, and many others. Among other organizations, the CenterPoint Energy Foundation's contributions will support the Greater Houston Disaster Alliance, a joint effort of Greater Houston Community Foundation and United Way of Greater Houston, to help ensure that families with the most urgent need have support as they begin to work toward long-term recovery from Hurricane Beryl.

CenterPoint's electric customers are encouraged to enroll in Power Alert Service® to receive outage details and community-specific restoration updates as they become available. For information and updates, visit CenterPointEnergy.com/StormCenter and follow @CenterPoint for updates during inclement weather events.​​

CenterPoint Energy issues statement and provides restoration update

​​Houston — July 16, 2024 – CenterPoint Energy today announced that its crews have restored power to nearly 96% of impacted customers. The company remains on track to restore electricity to approximately 98% of impacted customers by the end of the day on Wednesday, July 17, and to all customers who can receive power by Friday, July 19. 

In addition, the company issued the following statement in response to Governor Abbott's letter:

We have work underway to address the Governor's requests and are committed to collaborating with the State, local government, regulators, and community leaders to increase the resiliency of the electric grid. This work is integral to ensuring that we are creating and sustaining an environment in Texas where people want to live and build their businesses.

How customers can support their restoration​

As CenterPoint moves into the later stages of the restoration process, customers without power should check their weatherhead, the point where power enters the home through an electric service drop, which is often a pipe located on the side of the residence or building. If the weatherhead is damaged, crews cannot safely restore service to the home until a licensed electrician has made the necessary repairs. Customers who are served by an underground service will not have a weatherhead, but there may still be damage to their equipment that could require servicing.

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Important safety reminders

  • Stay alert – ask to see a company identification badge before allowing a utility worker in your home.
  • Always stay at least 35 feet away from downed power lines and damaged electric utility equipment.
  • Treat all down and damaged equipment as energized and report it to the company at 713-207-2222 or 800-332-7143.
  • CenterPoint is currently experiencing longer than usual hold times across its region. The Customer Service team is only accepting calls for electric and natural gas emergencies at this time.
  • If using a portable generator, place in a well-ventilated area and never run it inside to avoid a dangerous build-up of carbon monoxide.
  • Crews are working to safely restore electric service for you and your family; please be cautious around restoration crews and give them plenty of room to safely assess damage and make repairs.

 
CenterPoint's electric customers are encouraged to enroll in Power Alert Service® to receive outage details and community-specific restoration updates as they become available. For information and updates, visit CenterPointEnergy.com/StormCenter and follow @CenterPoint for updates during inclement weather events.


CenterPoint Energy has now restored over 2 million impacted customers, expects to reach approximately 98% restoration by the end of day Wednesday, July 17

Houston — July 15, 2024 – CenterPoint Energy today announced that it has now restored power to over 2 million customers and expects to reach approximately 98% restoration by the end of the day on Wednesday, July 17.

The company is repositioning crews and equipment to address localized outages and areas with significant structural damage to restore electricity to those customers who still remain without power. The company is providing restoration dates to impacted customers and is working to restore customers sooner than expected.

“We are grateful to our customers for their patience as our crews have worked around-the-clock and in difficult conditions to get the lights and air conditioning back on for over 2 million impacted customers as safely and quickly as possible," said Lynnae Wilson, Senior Vice President, Electric Business. “We know the remaining customers are counting on us and are committed to restoring power to all remaining customers able to receive it. As we close in on the remaining outages, customers should ensure that there isn't damage to their weatherheads and are able to receive power."

In addition to damaging CenterPoint's electric infrastructure, severe weather may have caused damage to customer-owned equipment. Specifically, customers should check their weatherhead, the point where power enters the home through an electric service drop, which is often a pipe located on the side of the residence or building. If the weatherhead is damaged, crews cannot safely restore service to the home until a licensed electrician has made the necessary repairs. Customers who are served by an underground service will not have a weatherhead, but there may still be damage to their equipment that could require servicing.

Important safety reminders

  • Stay alert – ask to see a company identification badge before allowing a utility worker in your home.
  • You can always call CenterPoint and ask if an employee was authorized to visit your home.
  • Always stay at least 35 feet away from downed power lines and damaged electric utility equipment.
  • Treat all down and damaged equipment as energized and report it to the company at 713-207-2222 or 800-332-7143.
  • CenterPoint is currently experiencing longer than usual hold times across its region. The Customer Service team is only accepting calls for electric and natural gas emergencies at this time.
  • If using a portable generator, place in a well-ventilated area and never run it inside to avoid a dangerous build-up of carbon monoxide.
  • Crews are working to safely restore electric service for you and your family; please be cautious around restoration crews and give them plenty of room to safely assess damage and make repairs.

CenterPoint's electric customers are encouraged to enroll in Power Alert Service® to receive outage details and community-specific restoration updates as they become available. For information and updates, visit CenterPointEnergy.com/StormCenter and follow @CenterPoint for updates during inclement weather events.

CenterPoint Energy has restored power to 92% of impacted customers

​Houston — July 15, 2024 – CenterPoint Energy has now restored power to 92% of impacted customers and remains on track to restore electricity to approximately 98% of impacted customers by the end of day on Wednesday, July 17. The company now expects to restore power to all customers who can receive power by Friday, July 19.

“We are grateful to our crews who have restored power to our customers at a stronger pace than we have been able to in any hurricane in our history, despite the difficult conditions," Lynnae Wilson, Senior Vice President, Electric Business. “We continue to work around-the-clock to get our remaining customers back online."

In addition to damaging CenterPoint's electric infrastructure, Hurricane Beryl may have caused damage to customer-owned equipment. Specifically, customers should check their weatherhead, the point where power enters the home through an electric service drop, which is often a pipe located on the side of the residence or building. If the weatherhead is damaged, crews cannot safely restore service to the home until a licensed electrician has made the necessary repairs. Customers who are served by an underground service will not have a weatherhead, but there may still be damage to their equipment that could require servicing.

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Supporting Our Communities

CenterPoint has continued to support the communities it serves throughout this challenging time and beyond. Since Hurricane Beryl made landfall, the CenterPoint Energy Foundation has contributed nearly $1.7 million to disaster relief organizations, including: United Way Relief Fund, Salvation Army, Houston Food Bank, Red Cross Coastal Bend, Red Cross Coastal Plains, and many others. Through the contribution to Salvation Army, specifically, CenterPoint is enabling them to serve 83,000 meals to people in need. The company has also provided more than 90,000 bottles of water to cooling centers and other distribution centers throughout the greater Houston area and is continuing to deliver supplies to meet other immediate needs. CenterPoint has also continued to work hand-in-hand with community partners to position mobile generation at water treatment plants, medical facilities, water facilities, warming and cooling centers and senior living facilities throughout the Greater Houston area.

CenterPoint's electric customers are encouraged to enroll in Power Alert Service® to receive outage details and community-specific restoration updates as they become available. For information and updates, visit CenterPointEnergy.com/StormCenter and follow @CenterPoint for updates during inclement weather events.


CenterPoint Energy now expects to restore 90% of impacted customers by the end of the day Monday

​​​Houston — July 14, 2024 – CenterPoint Energy has now restored electricity to more than 1.8 million customers impacted by Hurricane Beryl. The company is tracking ahead of prior expectations to restore 85% by the end of the weekend and now expects to restore power to 90% of impacted customers by the end of day Monday.

Dedicated restoration crews have continued working night and day through the weekend, resulting in the fastest restoration in the company's history.  CenterPoint crews are converging on areas with significant structural damage as well as localized outages, deploying crews, equipment and mobile generation solutions to restore customers as safely and quickly as possible. At this time, the company has provided restoration dates to substantially all customers and is working to restore customers sooner than expected, wherever possible.

“Our crews are doing extraordinary work in neighborhoods across Greater Houston and have continued to accelerate restoration despite challenging conditions as thunderstorms rolled through Houston late yesterday," said Lynnae Wilson, Senior Vice President, Electric Business. “Looking ahead, we know those customers who are not yet restored are counting on us, and we are committed to working until we get their lights back on."

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Important safety reminders

  • Stay alert – ask to see a company identification badge before allowing a utility worker in your home.
  • Always stay at least 35 feet away from downed power lines and damaged electric utility equipment.
  • Treat all down and damaged equipment as energized and report it to the company at 713-207-2222 or 800-332-7143.
  • CenterPoint is currently experiencing longer than usual hold times across its region. The Customer Service team is only accepting calls for electric and natural gas emergencies at this time.
  • If using a portable generator, place in a well-ventilated area and never run it inside to avoid a dangerous build-up of carbon monoxide.
  • Crews are working to safely restore electric service for you and your family; please be cautious around restoration crews and give them plenty of room to safely assess damage and make repairs.

 
CenterPoint's electric customers are encouraged to enroll in Power Alert Service® to receive outage details and community-specific restoration updates as they become available. For information and updates, visit CenterPointEnergy.com/StormCenter and follow @CenterPoint for updates during inclement weather events.​