CenterPoint Energy Announces a Comprehensive Suite of New Actions as Part of Second Phase of Greater Houston Resiliency Initiative to Strengthen the Electric Grid Across the Region

Rhea-AI Summary

CenterPoint Energy has announced a comprehensive suite of new actions as part of the second phase of its Greater Houston Resiliency Initiative (GHRI) to strengthen the electric grid across the region. The near-term actions, to be completed before the 2025 hurricane season, include:

• Installing 25,000 new, stronger poles
• Removing or trimming 4,000 miles of higher-risk vegetation
• Installing 4,500 automated reliability devices
• Undergrounding more than 400 miles of power lines

These actions aim to enable a self-healing grid, reduce outages, and lead to more than 125 million fewer outage minutes annually for customers in the Greater Houston area. CenterPoint Energy also plans to refile its long-term resiliency plan with the PUCT by January 31, 2025, proposing to invest at least $5 billion from 2026 to 2028 as part of a larger $21 billion capital investment plan for its Texas electric and gas systems from 2025 through 2030.

Positive

• Installation of 25,000 new, stronger poles to improve grid resilience
• Trimming or removing higher-risk vegetation across 4,000 miles of power lines
• Installation of 4,500 automation devices to build a self-healing grid
• Planned investment of at least $5 billion from 2026 to 2028 for infrastructure improvements
• Total capital investment plan of more than $21 billion for Texas electric and gas systems from 2025 through 2030

Negative

• None.

Insights

Financial Analyst

CenterPoint Energy's announcement of its Greater Houston Resiliency Initiative (GHRI) Phase Two is a significant development with potential long-term implications for the company's financial performance and risk profile. The comprehensive suite of actions, including installing 25,000 new poles, trimming 4,000 miles of vegetation and installing 4,500 automated devices, represents a substantial investment in grid resilience.

The company's commitment to invest at least $5 billion from 2026 to 2028, part of a larger $21 billion capital investment plan through 2030, is particularly noteworthy. This level of investment could potentially impact the company's financial metrics, including debt levels and cash flow. However, it may also lead to improved reliability, reduced maintenance costs and potentially higher allowed returns from regulators.

Investors should monitor how these investments translate into operational improvements and financial performance, particularly in terms of reduced outage minutes and potential regulatory outcomes. The initiative's success could strengthen CenterPoint's competitive position and long-term value proposition in the utility sector.

Utility Infrastructure Expert

CenterPoint Energy's GHRI Phase Two represents a significant advancement in grid modernization and resilience. The focus on a "self-healing grid" through the installation of 4,500 trip savers and 350 Intelligent Grid Switching Devices is particularly innovative. These technologies can dramatically reduce outage duration and frequency, potentially leading to over 125 million fewer outage minutes annually.

The commitment to underground 400 miles of power lines is also noteworthy, as this can significantly reduce weather-related outages. However, undergrounding is expensive and can complicate maintenance, so the cost-benefit ratio will be important to monitor.

The emphasis on vegetation management (4,000 miles) and stronger poles (25,000) addresses key vulnerabilities in overhead systems. These measures, combined with the automation technologies, create a multi-layered approach to grid resilience that aligns with best practices in the industry.

Overall, this initiative positions CenterPoint as a leader in coastal grid resilience, which could serve as a model for other utilities facing similar climate-related challenges.

Near-term actions will include:

• Installing 25,000 new, stronger poles
• Removing or trimming 4,000 miles of higher-risk vegetation
• Installing 4,500 automated reliability devices

Actions will be completed ahead of the 2025 hurricane season.

HOUSTON, Sept. 30, 2024 /PRNewswire/ -- Today, CenterPoint Energy announced a comprehensive suite of new actions as part of the next phase of its Greater Houston Resiliency Initiative (GHRI), including strengthening the energy system and operations over the next eight months and before the start of the 2025 hurricane season. These extensive near-term actions will: build on the work CenterPoint completed in the first phase of the GHRI, continue to strengthen resiliency, improve its communications and develop stronger partnerships, and help reinforce its electric system as it prepares for both the upcoming winter season and the 2025 hurricane season.

The actions in GHRI Phase Two will help enable a self-healing grid, reduce the length and frequency of outages and lead to more than 125 million fewer outage minutes annually for customers in the Greater Houston area. Work will be completed ahead of the 2025 hurricane season, or June 1, 2025, and will include:

• Installing new or replacing 25,000 poles that meet extreme wind standards
• Trimming or removing higher-risk vegetation across 4,000 miles of power lines
• Installing 4,500 automation devices, known as trip savers, and 350 Intelligent Grid Switching Devices as part of our effort to build a self-healing grid that utilizes automation to respond to outages faster
• Undergrounding more than 400 miles of power lines
• Launching a year-round public emergency preparedness and safety communications campaign
• Strengthening our local partnerships with agencies and partners critical to our emergency response efforts

"We know how important reliable and resilient energy is to our 2.8 million customers and that the Greater Houston region is the economic engine for the State of Texas and the energy capital of the world. That is why we are so focused on modernizing our infrastructure as we work toward our goal of building the most resilient coastal grid in the country that will serve the energy needs of Houstonians for years to come," said Jason Wells, President and CEO of CenterPoint.

"We are proud of the immediate resiliency improvements we delivered during Phase One of the Greater Houston Resiliency Initiative and these actions were only the beginning. We have set ambitious goals to achieve even further enhancements to our resiliency before the 2025 hurricane season. We are committed to developing the self-healing grid of the future that our customers expect and deserve," said Wells.

The actions CenterPoint has taken, and will continue to take, are designed to address its customers' major concerns following Hurricane Beryl by lessening the impact and duration of storm-related outages, improving its restoration efforts and communications, while also advancing the day-to-day reliability of its grid. Since August 17, CenterPoint has held 19 community open houses for its customers and community advocates, as well as numerous listening sessions with local officials and community leaders to help ensure the Phase Two actions address stakeholder concerns.

CenterPoint will track its progress towards completing all of its GHRI commitments at www.CenterPointEnergy.com/TakingAction.

Continuing the Momentum of GHRI Phase One
On August 28, CenterPoint announced that it had completed, ahead of schedule, a series of core resiliency actions as part of the first phase of its GHRI. During this initial phase, more than 2,500 employees and contractors trimmed or removed higher-risk vegetation from more than 2,000 power line miles, installed more than 1,100 stronger, more storm-resilient poles and installed more than 300 automated devices known as trip savers. In addition to the launch of its new outage tracker and the completion of 40 of its original 42 commitments, including all of those with a deadline on or before September 30, these actions represent meaningful, real-world resiliency improvements for its customers this hurricane season.

Longer-Term Commitment to Resiliency and Investment
Beyond the near-term actions of GHRI Phase Two, CenterPoint will refile its long-term resiliency plan with the PUCT on or before January 31, 2025. The goal of the long-term resiliency plan is to mitigate a broad spectrum of risks that threaten its system by hardening key aspects of the infrastructure, enhancing the security of the grid and building a smarter grid that can combat extreme weather, major storms and hurricanes to reduce the impact of outages experienced by its customers and mitigate wildfire risk.

As part of the long-term plan, CenterPoint will also propose investing at least $5 billion from 2026 to 2028 – the largest investment in Greater Houston infrastructure in the company's nearly 160-year history. The at least $5 billion is part of CenterPoint's new capital investment plan that includes more than $21 billion in total capital investment in its Texas electric and gas systems from 2025 through 2030, exceeding its current plan.

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. 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, as well as the website pages related to the GHRI, includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release or the website pages related to the GHRI, 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, which include statements regarding our resiliency investments, and the GHRI, 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 or the website pages related to the GHRI regarding future events that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release or the website pages related to the GHRI 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 and June 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

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SOURCE CenterPoint Energy

FAQ

What are the main actions in CenterPoint Energy's (CNP) Greater Houston Resiliency Initiative Phase Two?

CenterPoint Energy's (CNP) Greater Houston Resiliency Initiative Phase Two includes installing 25,000 new, stronger poles, removing or trimming 4,000 miles of higher-risk vegetation, installing 4,500 automated reliability devices, and undergrounding more than 400 miles of power lines. These actions will be completed before the 2025 hurricane season.

How much does CenterPoint Energy (CNP) plan to invest in infrastructure improvements from 2026 to 2028?

CenterPoint Energy (CNP) plans to invest at least $5 billion from 2026 to 2028 as part of its long-term resiliency plan, which will be the largest investment in Greater Houston infrastructure in the company's nearly 160-year history.

What is the total capital investment plan for CenterPoint Energy's (CNP) Texas electric and gas systems from 2025 through 2030?

CenterPoint Energy (CNP) has announced a total capital investment plan of more than $21 billion for its Texas electric and gas systems from 2025 through 2030, which exceeds its current plan.

When will CenterPoint Energy (CNP) refile its long-term resiliency plan with the PUCT?

CenterPoint Energy (CNP) will refile its long-term resiliency plan with the PUCT on or before January 31, 2025.