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CenterPoint Energy Outlines Plan to Minimize May 2024 Derecho Storm Bill Impact for Electric Customers

2024-11-08T06:00:00Z

Company plans to spread emergency Derecho response costs of approximately $450 million across 15 years; Customer bill impact expected to be about $1 per month
Financial method expected to save customers more than $50 million in interest charges
Derecho storm caused more than an estimated $5 billion in damages across the Greater Houston area unrelated to CenterPoint infrastructure

HOUSTON, Nov. 8, 2024 - As part of its commitment to keeping customer bills more affordable, CenterPoint Energy today filed the first phase of a securitization plan (a lower cost way of financing recovery costs over a longer time period time) with the Public Utility Commission of Texas (PUCT) that would minimize the customer impact of the major May 2024 Derecho and late May storms, that resulted in approximately $450 million in repair, equipment and emergency response costs outside of CenterPoint's normal annual rates as set by the PUCT. Using this method of financing is expected to save customers more than $50 million in interest charges over the 15-year period.

The May 16^th Derecho caused more than an estimated $5 billion in damages across the Greater Houston area not related to CenterPoint's infrastructure. As reported by numerous media outlets, the Derecho was a "once-in-a-generation wind event" and included wind gusts over 100 miles per hour and multiple tornadoes across the region, shattering thousands of downtown office windows, destroying homes and businesses, knocking down thousands of power poles, and impacting hundreds of miles of power lines and other critical electric equipment across the Greater Houston area.

The fast-moving storm required CenterPoint to activate its emergency operation plan and mobilize over 7,700 employees, contractors, and mutual aid partners to assess damage, repair downed equipment, and restore power.

"The Derecho that struck the Houston region in the spring was an unprecedented and extreme weather event that caused billions in damage to our communities and a significant portion of our electrical infrastructure. This proposed cost recovery plan reflects our commitment to minimize the impact on our customers' electric bills while addressing the significant costs related to mobilizing thousands of frontline workers to repair and rebuild the damaged portions of the energy system and restore power for our customers as safely and as quickly as possible," said Jason Ryan, CenterPoint Energy's Executive Vice President, Regulatory Services and Government Affairs.

Scope of CenterPoint Emergency Response
In response to the Derecho, CenterPoint mobilized thousands of frontline crews and critical resources and coordinated with government, community and utility partners to address the significant damage to the electrical system. As a result, CenterPoint restored power to more than 80 percent of impacted customers within 72 hours. The scope of the company's emergency response included:

Mobilizing over 7,700 frontline electrical workers, contractors and mutual aid resources from eight states to assess system damage and repair equipment;
Replacing more than 400 miles of primary electrical wires, more than1,600 transformers, and approximately 1,600 power poles on its distribution system;
Deploying 13 emergency generation units to provide temporary power to critical facilities including hospitals, cooling centers, first responder sites, schools and senior centers;
Establishing nine multi-city staging sites to efficiently deploy crews and equipment for customer restoration efforts to impacted areas of Greater Houston;
Restoring power to approximately 340,000 impacted customers within the first 24 hours; 550,000 within 48 hours; and 750,000 within 72 hours; and
Restoring 98 percent of all CenterPoint customers within five days of the Derecho.

CenterPoint Commitment to Customer Affordability: Securitizing for Lower Cost Impact
CenterPoint's plan follows the standard electric sector industry practice used in Texas and across all Gulf Coast states for financing and recovering costs after extreme weather and other one-time events. The company plans to spread the costs over a period of up to 15 years to help minimize the impact on customers using securitization, which is a less expensive method to finance those costs. Securitization has been used 10 times for large named storm-related events in the previous 25 years in Texas. It was also used by CenterPoint for the benefit of customers following Hurricane Ike in 2008.

By securitizing the cost recovery following major storms, hurricanes or other one-time events, CenterPoint is able spread cost impacts over several years and at a lower cost when compared to traditional financing, which results in a significantly lower monthly impact to customers. CenterPoint's filing will include costs associated with its emergency response for the May storm events, which includes the mobilization of frontline workers, repair and replacement of critical equipment, crew supplies, fuel and other materials.

Today's filing does not include any costs associated with CenterPoint's 2024 Hurricane Beryl response.

Estimated Monthly Customer Bill Impact
CenterPoint's filing seeks stakeholder and PUCT review of approximately $450 million of storm and emergency response-related costs. The next phase of the recovery plan will propose to collect those costs over up to 15 years to minimize the impact on customers and is expected to initially result in an average residential customer surcharge of just over $1 per month starting in the second half of 2025, and then dropping below a $1 per month in the second half of 2026. Both today's filing and the next phase will undergo a thorough, open and transparent review process at the PUCT with a final decision expected in 2025.

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. 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 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 including statements regarding securitization, customer bill impacts and timing of approvals, 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 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; and (5) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and CenterPoint's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

For more information, contact
Communications
Media.Relations@CenterPointEnergy.com

SOURCE CenterPoint Energy

Recent News

CenterPoint Energy launches “10 Days of Special Energy Savings” offers for Hoosiers

As part of a commitment its affordability, CenterPoint offering customers free to low-cost energy efficiency products through its Online Energy Efficiency Store

From July 1^st-10^th, customers will be able to save on a range of products

EVANSVILLE, Ind. – July 1, 2026 – As part of its commitment to affordability, CenterPoint Energy is helping Hoosier customers and families save energy and money with “10 Days of Special Energy Savings" on a range of energy efficiency products through its Online Energy Efficiency Store. The sale on energy savings products, which are for CenterPoint Energy customers only, will run July 1^st through July 10^th and will continue while supplies last. The range of energy savings products offered include smart thermostats, water-saving fixtures and weatherization items.

“We want to help our Hoosier families save energy and money. This sale makes it easier for our customers to find new ways to save with practical, energy-saving products for their homes, many at no cost, so they can lower their usage and take more control of their bills this summer and beyond," said Mike Roeder, President of CenterPoint Energy Indiana.

Helping Customers Save Energy and Money
During the 10 days of savings, and through the Online Energy Efficiency Store, eligible customers can order:

Air Purifiers: ENERGY STAR® certified air purifiers are more than 50% more energy-efficient than standard models while helping improve indoor air quality.
Smart Thermostats: ENERGY STAR® certified smart thermostats can save an average of 8% on heating and cooling costs each year. Eligible customers can order a no-cost smart thermostat, including select Google Nest and ecobee models, with rebates applied automatically at checkout;
Standby-Power Savers: Devices left in standby mode can account for 5% to 10% of a home's energy use and can cost the average U.S. household as much as $100 a year. Advanced power strips, smart sockets and outdoor smart plugs help cut that usage;
Water-Saving Fixtures: A WaterSense®-labeled low-flow showerhead can save the average family about 2,700 gallons of water and more than 330 kilowatt-hours of electricity each year. Qualifying showerheads, aerators and shower accessories are available, with several at no cost while supplies last;
Weatherization Essentials: Sealing air leaks and adding insulation can save up to 10% on annual energy bills. Pipe insulation, sealant and outlet gaskets help keep cooled air in and summer heat out.

CenterPoint Energy's Actions to Prioritize Affordability
The Online Energy Efficiency Store, launched in November 2024, is one of several ways CenterPoint is prioritizing affordability and energy savings for Indiana customers.

In October 2025, CenterPoint launched an initial series of Community Affordability Actions, including the CenterPoint Energy Foundation's $5 million Community Energy Improvement Fund. Since then, the company has introduced additional bill management tools and programs for southwestern Indiana customers and customer protections as part of the Indiana Electric rate case settlement, such as annual late fee waivers upon request, reduced reconnection fees and additional safeguards for medically vulnerable customers.

Customers can browse all available products year-round, and check eligibility, at CenterPointEnergy.com/Shop. Additional savings tips, tools and assistance resources are available through the Resource Hub at CenterPointEnergy.com/ResourceHub.

CenterPoint Energy Launches ‘Power Alert Service® Awareness Week’ to Encourage Customers to Sign Up for Free Emergency Communication Service

More than 2.4 million customers currently signed up to receive Power Alert Service notifications on extreme weather, outages and restoration efforts.

Multi-month public awareness campaign aimed at achieving 100% customer enrollment in free alert service that is especially critical during hurricane season.

HOUSTON – June 30, 2026 – As part of its commitment to provide vital communications for its customers during emergencies or storms, CenterPoint Energy today announced the launch of “Power Alert Service® (PAS) Awareness Week" to help achieve its goal of enrolling 100% of its customers in PAS. To date, CenterPoint has signed up more than 2.4 million customers for this critical, free tool that provides timely alerts on outages, restoration estimates and important updates. For PAS Awareness Week, CenterPoint is launching a multi-month social media and customer outreach campaign that will extend throughout hurricane season across Greater Houston to drive PAS enrollment and help customers stay informed and safe during storms, emergencies or periods of extreme weather.

“During hurricane season, we know how important it is to provide timely, accurate information to our CenterPoint customers and their loved ones. Power Alert Service® is one of the most valuable tools available to help every customer across Greater Houston get the updates they need, when they need them. We also encourage customers to add additional household members or loved ones to receive alerts, so everyone stays informed during severe weather. Our team is more determined than ever to raise awareness of this free service and help enroll every one of the customers we're privileged to serve," said Raja Subramanian, CenterPoint Energy Chief Customer Officer.

The Power of PAS: A Free Service, Keeping Customers & Loved Ones Informed
CenterPoint launched PAS, a free service to customers who sign up, in 2012, to provide customers with alerts by phone call, text or email about outages at their location, estimated restoration times, important updates on CenterPoint storm preparedness and response efforts, and much more. An invaluable benefit is that customers can also sign up to 15 family members and/or friends to receive alerts. In late May and early June alone, CenterPoint sent nearly 3.9 million PAS notifications to keep its customers informed before, during and after the storms.

As part of its outreach campaign, CenterPoint will be utilizing its social media tools and will also be encouraging customers to sign up for PAS at Community Connect events scheduled across Greater Houston. A full schedule of upcoming Community Connect events is available at CenterPointEnergy.com/HoustonCommunityConnects.

For more information, follow CenterPoint Energy on social media or visit CenterPointEnergy.com/ActionCenter.

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, Minnesota, Ohio and Texas. As of March 31, 2026, the company owned approximately $47.8 billion in assets. With approximately 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com

CenterPoint Energy taking action to prepare for possible thunderstorms impacting southwestern Indiana customers

Readiness actions include: preparing crews and equipment, 24/7 weather monitoring, coordinating with local government officials and keeping customers informed

Customers urged to sign up for Power Alert Service® to get latest updates about their service

EVANSVILLE, Ind. – June 26, 2026 – CenterPoint Energy continues to closely monitor National Weather Service (NWS) forecasts following several rounds of storms across southwestern Indiana this week. To support its customers, CenterPoint is taking a series of actions to prepare for potential hazardous weather, including possible thunderstorms, damaging wind gusts, heavy rain, flooding and isolated tornadoes, in southwestern Indiana this evening into tomorrow. Key actions include preparing crews and equipment, monitoring weather forecasts 24/7, coordinating with local officials and communicating critical safety and preparedness information to its southwestern Indiana customers including how to sign up for Power Alert Service® to get the latest updates about their service.

“Our CenterPoint team is taking action and is prepared to respond to potential impacts from this week's storms across southwestern Indiana. We are ready to respond and restore power safely and as quickly as possible for any customers who may experience outages. We will continue closely monitoring conditions and we urge all of our customers to stay alert and take steps now to prepare and stay safe throughout this period of heavy storms and high winds," said Mike Roeder, President of CenterPoint Energy Indiana.

Preparing for Hazardous Weather: Key Actions
The most recent National Weather Service forecast includes damaging winds, scattered thunderstorms and isolated tornadoes that may be strong enough to result in downed power lines and outages. A Flood Watch is in effect through Saturday morning. To prepare, CenterPoint is taking a series of safety and readiness actions, including:

Preparing Crews and Equipment: Preparing workers and equipment across southwestern Indiana to support restoration efforts for impacted customers.
24/7 Weather Monitoring: Closely monitoring weather forecasts and evolving weather conditions that could impact our customers.
Coordinating with Local Officials: Providing consistent updates on preparedness actions to federal, state, county and city officials.
Keeping Customers Informed: Providing updates directly to customers via email, phone, text or other channels to keep customers informed and prepared.
Promoting Power Alert Service®: CenterPoint is urging customers to sign up for Power Alert Service® to receive important updates about their gas and electric service via phone call, text or email, including outage details and estimated restoration times.

Emergency Communications: Sign Up for Power Alert Service®
To help prepare for the impact of hazardous weather, CenterPoint is encouraging its customers to enroll in Power Alert Service® to receive outage details, estimated restoration times and customer-specific restoration updates via phone call, text or email. As part of CenterPoint's overall emergency communications efforts, customers can stay up to date on local outages with CenterPoint's cloud-based Outage Tracker, available in English and Spanish, which allows customers to see outages and restoration times by county, city and zip code.

Emergency Preparations: What Customers Can Do to Stay Safe
As part of its preparedness efforts, CenterPoint will continue using its communications channels to share a series of critical safety reminders, including:

Stay at least 35 ft. away from any downed power lines and always assume they are still energized and dangerous.
Keep roads clear for emergency vehicles.
Do not touch anything in contact with a downed wire, such as fences, branches or standing water.
Before a flood: Natural gas should not be turned off at the meter. Keeping the meter on helps maintain proper pressure in gas piping and prevents water from entering the lines. If discontinuing service is necessary, gas should be turned off at each appliance.
After a flood:

If a natural gas meter was underwater, CenterPoint should be contacted to schedule an inspection. The meter may require replacement.
Flooded natural gas appliances—such as furnaces, gas grills and gaslights—should be inspected by a qualified technician before operation.

If the smell of natural gas (rotten egg odor) is present, leave the area immediately and call 911 and CenterPoint from a safe location.
Before digging or clearing debris, please call 811, the nationwide Call Before You Dig number, to locate underground natural gas lines and other underground utility lines.

For additional safety tips, customer resources and important updates, visit CenterPointEnergy.com/ActionCenter and follow CenterPoint on social media.

CenterPoint Energy Foundation awards grants to support veteran resilience in celebration of the United States of America’s 250th anniversary

Grants awarded to 17 Indiana and Ohio nonprofit organizations to connect veterans to programs for mental health, housing and everyday needs

CenterPoint employs more than 700 veterans across the company, who continue to serve communities by providing safe, reliable electric and natural gas service

EVANSVILLE, Ind. — JUNE 25, 2026 — In recognition of the upcoming 250th anniversary of the United States of America, the CenterPoint Energy Foundation has awarded $250,000 in grants for 17 veteran serving nonprofit organizations in Indiana and Ohio. Grants are funding programs and initiatives that connect veterans with mental health services, housing stability and everyday needs.

Through this special grant opportunity, the Foundation is providing grants ranging from $5,000 to $25,000 to strengthen programs and initiatives helping veterans and individuals connected to the military across the communities CenterPoint serves.

“As our nation approaches its 250th anniversary, this grant opportunity reflects our deep respect for the men and women who serve and have served, and our privilege to support them with mental health services, housing stability and everyday needs to help them thrive," said Jason Ryan, Executive Vice President, Regulatory Services and Government Affairs at CenterPoint and United States Navy veteran.
“Through the CenterPoint Energy Foundation, we are honored to contribute to enhancing veteran resilience and strengthening the communities we are privileged to serve."

The following Indiana and Ohio nonprofit organizations have been awarded grants from the Foundation:

Indiana

Anchor House
Family Service Association of Howard County, Inc.
Heading Home of South Central Indiana
Honor Flight of Greater Lafayette Indiana, Inc.
Honor Flight of Southern Indiana
HVAF of Indiana, Inc.

Niks Place for Vets, Inc.
Outreach Advocacy Center, Inc.
Reach Services, Inc.
Fort Wayne 22 (FW22)
Irreverent Warriors - Indiana Communities

Ohio

Blessings Fund
Community Garden and Hot Meals
PTSD Training for the Unseen Wounds of Service

Vets Moving Forward: Reintegration Support and Basic Needs Initiative
Veterans of Foreign Wars for Clinton County
Warriors in Step With Horses

Funded separately and financially independent from the utility, the CenterPoint Energy Foundation strives to be a catalyst for good by leveraging everyday opportunities and resources to strengthen communities. This grant opportunity for veteran-serving organizations expands on the Foundation's two main strategic giving areas of community vitality and education to help address critical challenges facing veterans and their families.

CenterPoint employs more than 700 veterans across its four-state service area, who continue their commitment to service by strengthening the communities where they live and work by helping provide vital electric and natural gas service.

To learn more about CenterPoint's commitment to the communities it serves, visit CenterPointEnergy.com/Community.

CenterPoint Energy Foundation awards grants to support veteran resilience in celebration of the United States of America’s 250th anniversary

Grants awarded to 17 Indiana and Ohio nonprofit organizations to connect veterans to programs for mental health, housing and everyday needs

CenterPoint employs more than 700 veterans across the company, who continue to serve communities by providing safe, reliable electric and natural gas service

DAYTON, Ohio — JUNE 25, 2026 — In recognition of the upcoming 250th anniversary of the United States of America, the CenterPoint Energy Foundation has awarded $250,000 in grants for 17 veteran serving nonprofit organizations in Indiana and Ohio. Grants are funding programs and initiatives that connect veterans with mental health services, housing stability and everyday needs.

The following Indiana and Ohio nonprofit organizations have been awarded grants from the Foundation:

Indiana

Anchor House
Family Service Association of Howard County, Inc.
Heading Home of South Central Indiana
Honor Flight of Greater Lafayette Indiana, Inc.
Honor Flight of Southern Indiana
HVAF of Indiana, Inc.

Niks Place for Vets, Inc.
Outreach Advocacy Center, Inc.
Reach Services, Inc.
Fort Wayne 22 (FW22)
Irreverent Warriors - Indiana Communities

Ohio

Blessings Fund
Community Garden and Hot Meals
PTSD Training for the Unseen Wounds of Service

Vets Moving Forward: Reintegration Support and Basic Needs Initiative
Veterans of Foreign Wars for Clinton County
Warriors in Step With Horses

To learn more about CenterPoint's commitment to the communities it serves, visit CenterPointEnergy.com/Community.

About the CenterPoint Energy Foundation
The CenterPoint Energy Foundation provides philanthropic support to meet the needs of communities where CenterPoint Energy customers live and work. The Foundation is funded by shareholders and has no impact on customer rates. More information about the Foundation can be found at CenterPointEnergy.com/Foundation.
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, Minnesota, Ohio and Texas. As of March 31, 2026, the company owned approximately $47.8 billion in assets. With approximately 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.