CenterPoint Energy proposes next step in Smart Energy Future Plan

Rhea-AI Summary

CenterPoint Energy (NYSE: CNP) filed an application with the Indiana Utility Regulatory Commission to construct two natural gas combustion turbines for $323 million, replacing coal-fired units. This initiative supports their long-term generation transition plan for cleaner energy. The turbines, with a total output of 460 MW, aim to lower carbon emissions by 75% while saving customers an estimated $320 million over 20 years. Construction is set for late 2022 with operations beginning in 2024, having no immediate impact on residential electric bills.

Positive

• Proposed turbines will reduce emissions and align with long-term sustainability goals.
• Investment of $323 million expected to save customers $320 million over 20 years.
• Transition plan includes significant renewable resources, lowering carbon emissions by 75%.

Negative

• None.

EVANSVILLE, Ind., June 17, 2021 /PRNewswire/ -- CenterPoint Energy (NYSE: CNP) today announced the filing of an application with the Indiana Utility Regulatory Commission (IURC) requesting approval to construct two natural gas combustion turbines to replace portions of its existing coal-fired generation fleet. The filing comes as the next component in CenterPoint Energy's long-term generation transition plan, which seeks to significantly change the way the company generates power and deliver on its commitment to provide a cost-effective, well-balanced energy mix for its 145,000 customers in southwest Indiana.

The estimated $323 million turbine facility would be constructed at the current site of A.B. Brown power plant in Posey County, Ind. and will provide a combined output of 460 megawatts (MW), sized appropriately to support the anticipated electric generation needed upon the proposed retirement of A.B. Brown units 1 and 2 in late 2023. Construction of the turbines will begin following receipt of approval by the IURC, anticipated in the second half of 2022. The turbines are targeted to be operational in 2024.  

In June 2020, CenterPoint Energy presented the results from its most recent Integrated Resource Plan (IRP) which illustrated a preferred portfolio including nearly two-thirds of energy generated from renewable resources that is expected to lower carbon emissions by nearly 75% from 2005 levels. The preferred portfolio seeks to maintain continued reliability, while saving electric customers an estimated $320 million over the 20-year planning period.

"The construction of the natural gas generation turbines is the next step in CenterPoint Energy's long-term plan to deliver on the commitment to introduce significant renewables and natural gas into our portfolio as outlined in our 2020 Integrated Resource Plan," said Steve Greenley, Senior Vice President of Generation Development. "The retirement of our smaller, inefficient coal units and adding the natural gas combustion turbines will continue to reduce our emissions and maintain our focus on the environment while providing our customers a cost-effective option for delivering safe and reliable energy."

As part of its generation transition plan, CenterPoint Energy added 50 MW of universal solar in Troy, Ind., which is now in service and joins its two 2-MW solar projects in Vanderburgh County. In February, CenterPoint Energy filed a request to enter into agreements on the acquisition of a 300 MW solar array and a power purchase agreement (PPA) for an additional 100 MWs of solar energy.

Today's filing will have no immediate impacts on residential electric bills. Following approval by the IURC, cost recovery of the proposed natural gas generation turbines will be requested through an electric rate review process expected in 2023.

Greenley added, "CenterPoint Energy's long-term generation portfolio transition will meet growing demand to provide cleaner energy for our region while maintaining the reliability our customers deserve and have come to expect."

CenterPoint Energy delivers electricity to approximately 145,000 customers in southwest Indiana in all or portions of Gibson, Dubois, Pike, Posey, Spencer, Vanderburgh and Warrick counties. Programs and services are operated under the brand CenterPoint Energy by Southern Indiana Gas and Electric Company d/b/a CenterPoint Energy Indiana South.

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 "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "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 plans to increase renewable and natural gas generation resources, including the proposed construction of two natural gas combustion turbines, while retiring certain coal units and timing thereof, the IURC's approval process, including the proposed approval of the turbines and timing thereof, the estimated output and cost of the turbines, anticipated cost savings and other benefits to customers, carbon emissions reductions, additional regulatory requests in connection with CenterPoint Energy's generation transition plan and timing thereof, 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, 2020, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 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 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 Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of March 31, 2021, the company owned approximately $36 billion in assets and also owned 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 9,500 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 recent application regarding natural gas turbines?

CenterPoint Energy applied to construct two natural gas combustion turbines, part of a $323 million investment to replace coal units.

How will the new turbines affect CenterPoint Energy's customers?

The turbines aim to lower carbon emissions and save customers an estimated $320 million over 20 years, with no immediate impact on electric bills.

What is the expected timeline for the construction of the turbines?

Construction is expected to start in late 2022, with the turbines operational by 2024.

How much power will the new turbines generate?

The two turbines will provide a combined output of 460 megawatts.