CenterPoint proposal to remove emergency temporary generation costs would lower monthly bills immediately and by as much as $2 per month by 2027
15 generation units would be sent to San Antonio area by Summer 2025 to help meet Texas' current and future energy needs
HOUSTON, April 3, 2025 /PRNewswire/ -- Today, as part of its continuing commitment to better serve customers across the Greater Houston area, CenterPoint testified before the Texas Senate Committee on Business and Commerce on its proposal to remove the cost of large emergency generation units from electric customers' monthly bills and save average residential customers as much as $2 per month by 2027. CenterPoint's proposal would reduce customer bills by sending 15 large emergency generation units to the San Antonio area for up to two years to immediately support the State of Texas' energy needs for generation. Overall, CenterPoint's proposal is part of a broader plan to make its electric customers whole for the portion of the units customers have paid through their monthly electric bills.
"In Texas, we're at our best when we're working together to solve complex challenges. I think everyone can be proud of this proposal that provides a Texas-driven solution to address the state's power generation shortfall, while also taking steps to reduce the impact on our customers. This plan would not only lower monthly bills immediately, and by as much as $2 by 2027, but it would address the costs paid to date related to large generation units. We look forward to working with elected leaders, regulators and industry partners to move these units to San Antonio and fulfill our commitment to lowering costs for our customers, while helping do our part to improve reliability for our great State of Texas," said Jason Wells, President and Chief Executive Officer of CenterPoint Energy.
CenterPoint's Texas solution for emergency generation units
Last month, the Electric Reliability Council of Texas (ERCOT) Board of Directors unanimously approved moving forward with a plan, which is the basis for today's testimony, that includes the following key components:
- Lowering bills for CenterPoint Houston Electric customers: Costs associated with the large leased emergency generation units will start to come out of rates for Houston Electric customers in the coming months. By 2027, bills will be reduced by an estimated $2 per month for the average customer who uses 1,000 kWh/month.
- Meeting Texas' current and future energy needs: Subject to finalization of mutually agreed upon documentation among the relevant parties, including ERCOT and the service provider/operator of the emergency generation units, CenterPoint stands ready to send the 15 large units (ranging from 27MW-32MW) to the Greater San Antonio area in the coming months, providing critical generation capacity to help avoid the risk of shortfalls. The units can each provide enough power for approximately 30,000 homes and were originally acquired following the devastation of Winter Storm Uri in 2021.
- Forgoing revenue and profit for 15 units: CenterPoint will receive no revenue or profit from the 15 large units for an up to two-year period based on the proposal with ERCOT.
CenterPoint's role in the Texas electricity market
CenterPoint is an electric transmission and distribution company in the Texas market. The company does not own any power plants in Texas; other than the leased temporary generation units, CenterPoint does not generate any electricity in the state; and it does not purchase electricity on behalf of customers in Texas. It also does not have any electric customers in Texas outside the 12-county Greater Houston area.
The proposed Texas generation solution and cost reduction reflect CenterPoint's commitment to better serving its customers in the Greater Houston area and communities across Texas. As part of this overall commitment, the company is working every day to strengthen the grid and prepare for the 2025 hurricane season, which begins June 1. More information about the Greater Houston Resiliency Initiative is available at CenterPointEnergy.com/TakingAction.
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 approximately 7 million metered customers in Indiana, Minnesota, Ohio, and Texas. As of December 31, 2024, the company owned approximately $44 billion in assets. With approximately 8,500 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," "would" or other similar words are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding a potential transaction with ERCOT, future bill impacts, and future potential transactions regarding the large emergency generation units, including effectiveness, timing and related matters, 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, 2024 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission. Investors and others should note that we may announce material information using SEC filings and the Investor Relations page of our website, including press releases, public conference calls, webcasts. In the future, we will continue to use these channels to distribute material information about the company and to communicate important information about the company, key personnel, corporate initiatives, regulatory updates, and other matters. Information that we post on our website could be deemed material; therefore, we encourage investors to review the information we post on the Investor Relations page of our website.
For more information, contact:
Communications
Media.Relations@CenterPointEnergy.com
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