CenterPoint Energy continues shift from coal-fired generation; renewables complemented with natural gas-fired generation forge ahead as generation portfolio

Rhea-AI Summary

CenterPoint Energy (NYSE: CNP) announced its Integrated Resource Plan (IRP) aimed at transitioning to renewable energy by terminating its coal use by 2027. The plan anticipates customer savings of nearly $80 million compared to continued coal usage and aims to achieve over a 95% reduction in carbon emissions over the next two decades. By 2030, over 80% of electricity will come from wind and solar sources. The IRP involved extensive public input and is scheduled for submission to the Indiana Utility Regulatory Commission by June 1. CenterPoint Energy plans to convert its last coal unit to natural gas, add new renewable resources, and maintain reliable service amid fluctuating demand.

Positive

• Expected customer savings of $80 million compared to continued coal use.
• Commitment to reduce carbon emissions by over 95% over the next 20 years.
• Transitioning to over 80% renewable energy generation by 2030.

Negative

• None.

• Proposed plan is expected to save customers nearly $80 million in the aggregate
• Expected to reduce carbon emissions from its electric generation fleet by more than 95% over next 20 years while maintaining reliable service
• Year-long planning process included detailed analysis and extensive public input

EVANSVILLE, Ind., April 26, 2023 /PRNewswire/ -- CenterPoint Energy's (NYSE: CNP) Indiana-based electric business today announced its Integrated Resource Plan (IRP) preferred portfolio to further invest in renewable generation and end its use of Indiana coal by 2027.

The IRP preferred portfolio was shared at CenterPoint Energy's fourth and final public stakeholder meeting, conducted as part of a year-long planning process involving extensive analysis and public input. The proposed plan is expected to save customers nearly $80 million in the aggregate compared to the continued use of coal while reducing carbon emissions from its electric generation fleet by more than 95% over the next 20 years. Currently, 85% of electricity generated for southwest Indiana customers comes from coal. By 2030, it is expected that more than 80% of CenterPoint Energy's electricity will be generated by solar and wind, with the remainder provided by natural gas.

"Our recommended mix of renewable and natural gas resources is expected to maintain the ability to turn on generating resources during times of greatest demand supporting reliability and continuing our strategy of providing cleaner electricity that meets customers' future energy needs," said Richard Leger, Senior Vice President, Indiana Electric. 

CenterPoint Energy's IRP is conducted every three years and submitted to the Indiana Utility Regulatory Commission (IURC). Based on an in-depth analysis of energy needs, public stakeholder input and many other factors which are updated and forecasted across the next 20 years, the IRP identifies a balanced plan that seeks to supply reliable and reasonably priced electricity to the utility's 150,000 customers in southwestern Indiana. The plan also is designed to comply with the new, more stringent capacity requirements set by the Midcontinent Independent System Operator (MISO) to meet peak energy demand across all four seasons.

Modeling conducted within the IRP analysis points CenterPoint Energy toward the following goals:

• Converting F.B. Culley 3, the last coal unit operated by CenterPoint Energy, to natural gas by 2027, maintaining its 270 MW capacity
• Preserving the 270 MW of dispatchable generation is expected to maintain reliability during long duration summer and winter weather events
• Adding 200 MW of wind and 200 MW of solar by 2030, with the potential need for an additional 400 MW of wind resources by 2032

Leger said, "Customer and stakeholder engagement were heavily considered throughout this process. We appreciate the thoughtful insights which helped us arrive at our go-forward plan that will help meet the growing demands of our residential and business customers in the region and maintain our environmental responsibilities. We continue our goal to provide a responsible, resilient and reliable energy future, which requires fast-ramping resources like natural gas turbines to keep the power flowing when renewable generation is not sufficient."

The IURC previously granted approval for the construction of two natural gas combustion turbines, with capacity of 460 MW. CenterPoint Energy also has five previously announced solar projects in various stages of development. In addition, a wind generation project has been filed and is awaiting IURC approval. The completed IRP is expected to be submitted to the IURC by June 1. A director's report, detailing the IURC's comments, will likely be issued by the second quarter of 2024. For more information on CenterPoint Energy's preferred portfolio and the IRP process, visit CenterPointEnergy.com/IRP.

Leger added, "We are confident the proposed portfolio will meet the expectations of our customers and deliver on our goal to provide a cost-effective, well-balanced energy mix. These continued investments in our generation transition plan will allow customers to benefit in the near term and leaves room for flexibility as the future of electric generation continues to evolve." 

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 ability to execute on its generation transition plan and to implement cleaner energy, the ability of CenterPoint Energy to secure sufficient capacity, or that such capacity will be sufficient to meet future customer demand, the extent and amount of, if any, of anticipated bill, anticipated savings and energy reductions, the timing of CenterPoint Energy's IRP 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 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; (5) effects of competition; (6) weather variations; (7) changes in business plans; (8) continued disruptions to the global supply chain and increases in commodity prices; (9) legislative decisions, including tax and developments related to the environment such as global climate change, air emissions, carbon and waste water discharges; (10) CenterPoint Energy's ability to execute on its initiatives, targets and goals and operations and maintenance goals and (11) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 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 natural 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 December 31, 2022, the company owned approximately $38 billion in assets. 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.

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

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SOURCE CenterPoint Energy, Inc.

FAQ

What is CenterPoint Energy's (CNP) Integrated Resource Plan announcement about?

CenterPoint Energy's IRP focuses on transitioning to renewable energy by phasing out coal use by 2027, saving customers $80 million, and reducing carbon emissions significantly.

How much will customers save under CenterPoint Energy's new plan?

Customers are expected to save nearly $80 million compared to continued coal usage.

What percentage of energy will CenterPoint Energy produce from renewables by 2030?

CenterPoint Energy aims to produce over 80% of its electricity from renewable sources such as wind and solar by 2030.

When will CenterPoint Energy submit its Integrated Resource Plan?

The completed Integrated Resource Plan is scheduled for submission to the Indiana Utility Regulatory Commission by June 1.

What does CenterPoint Energy plan to do with its last coal unit?

CenterPoint Energy plans to convert its last coal unit to natural gas by 2027.