CenterPoint Energy announces Indiana Electric and Houston Electric to combine into one Electric organization

Rhea-AI Summary

CenterPoint Energy is integrating its Indiana Electric and Houston Electric utilities into a single Electric organization to enhance operational efficiencies and share best practices. This strategic move aims to drive long-term benefits in service reliability and technology. The shift coincides with the implementation of the Integrated Resource Plan, which is projected to save customers approximately $320 million and reduce carbon emissions by 75% compared to 2005 levels. Additionally, the company will rebrand Vectren as CenterPoint Energy to unify its operations.

Positive

• Integration of Indiana Electric and Houston Electric expected to boost operational efficiencies and service reliability.
• Projected customer savings of $320 million and a 75% reduction in carbon emissions over 2005 levels from the Integrated Resource Plan.

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• None.

HOUSTON, Aug. 3, 2020 /PRNewswire/ -- Consistent with CenterPoint Energy's focus on unlocking the power and potential within its premium regulated utilities, the company is combining Indiana Electric and Houston Electric into one Electric organization, effective immediately. The alignment of CenterPoint Energy's generation, transmission, distribution and engineering areas into one organization will allow for greater ability to share best practices for service, reliability and technology across its footprint, as well as deliver on opportunities for long-term efficiencies in service to customers.

"Our Electric business is one of the cornerstones of CenterPoint Energy's new utility-focused strategy and supports our continued commitment to optimize and drive return on our regulated assets," said Dave Lesar, President and Chief Executive Officer of CenterPoint Energy. "Our new integration strategies underscore the importance of the Electric business to our broader CenterPoint Energy portfolio."

Lesar added, "By combining our two complementary electric utility businesses, we will achieve a major landmark for our electric companies. The decision to establish one Electric organization comes at a critical time, as we are preparing to implement our Integrated Resource Plan preferred portfolio for our future Indiana generation business. The plan outlines how we will generate electricity for our customers for the next 20 years and focuses on reliability and risk mitigation, while saving electric customers an estimated $320 million and lowering carbon emissions by 75% over 2005 levels."

In addition, in order to support the ongoing advancement of its corporate identity, value to customers, and clarity to shareholders, CenterPoint Energy will rebrand Vectren as CenterPoint Energy. The rebrand will include new signs and markings, but the same employees will be seen representing the organization, working in neighborhoods to restore and maintain service, and continuing to volunteer in the communities where they have for many years.

"Our one-brand approach is expected to drive long-term benefits with regards to our systems and customer-facing touch points," said Lesar. "It also shows our customers, communities, stakeholders, partners and suppliers that we are one company, united by our shared commitment to deliver energy to the millions we serve across our service territory."

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 & distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of March 31, 2020, the company owns approximately $33 billion in assets and also owns 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,600 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 CenterPoint Energy's strategic focus on its regulated utilities and the related optimization of its regulated assets, the combination of the Houston Electric and Indiana Electric businesses, including opportunities with respect to operational efficiencies, reliability, technology and service, the expected benefits derived from the preferred generation portfolio in the Integrated Resources Plan, including reliability and risk mitigation, estimated customer savings and carbon emission reduction targets, the anticipated benefits derived from the rebranding initiative, 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 COVID-19; (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, 2019, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

For more information contact
Natalie Hedde
Natalie.hedde@centerpointenergy.com  
812.491.5105

 

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SOURCE CenterPoint Energy, Inc.

FAQ

What is the purpose of CenterPoint Energy's integration of Indiana Electric and Houston Electric?

The integration aims to enhance operational efficiencies, share best practices, and improve service reliability across the company's electric utilities.

How much is CenterPoint Energy projected to save customers through the new Integrated Resource Plan?

CenterPoint Energy estimates that customers will save approximately $320 million through the Integrated Resource Plan.

What environmental benefits are associated with CenterPoint Energy's Integrated Resource Plan?

The plan aims to reduce carbon emissions by 75% compared to 2005 levels.

What change is CenterPoint Energy making regarding the Vectren brand?

CenterPoint Energy will rebrand Vectren as CenterPoint Energy to unify its operations under one brand.