CenterPoint Energy reaches settlement agreement with parties to lower bills for customers in its 2024 Houston Electric Rate Case
CenterPoint Energy has reached a settlement agreement in its 2024 Houston Electric Rate Case that will result in approximately $50 million less annual revenue through roughly 2029. The settlement, pending PUCT approval, will reduce customer bills by about $1 monthly, representing a 2% decrease for residential customers using 1,000 kWh per month.
The company has invested $8 billion in grid improvements since 2019, including 2,200 miles of new distribution lines, 100+ miles of transmission lines, and eight new substations. The settlement includes CenterPoint's proposal to relocate 15 large emergency generation units to San Antonio for two years starting Spring 2025, helping address ERCOT's regional energy shortfall without generating profit for CenterPoint.
Notable achievements include installing 437 Intelligent Grid Switching Devices, resulting in over 80 million minutes of avoided customer outages in 2023. CenterPoint's rates have remained relatively flat over the last decade, staying below annual inflation of 2.8%, and were the lowest among Texas peer utilities in 2024.
CenterPoint Energy ha raggiunto un accordo di conciliazione nel suo caso riguardante le tariffe elettriche di Houston per il 2024, che porterà a circa 50 milioni di dollari in meno di entrate annuali fino a circa il 2029. L'accordo, in attesa di approvazione da parte del PUCT, ridurrà le bollette per i clienti di circa 1 dollaro al mese, rappresentando una diminuzione del 2% per i clienti residenziali che utilizzano 1.000 kWh al mese.
L'azienda ha investito 8 miliardi di dollari nel miglioramento della rete dal 2019, compresi 2.200 miglia di nuove linee di distribuzione, oltre 100 miglia di linee di trasmissione e otto nuove sottostazioni. L'accordo include la proposta di CenterPoint di trasferire 15 grandi unità di generazione di emergenza a San Antonio per due anni, a partire dalla primavera del 2025, contribuendo a far fronte alla carenza energetica regionale dell'ERCOT senza generare profitti per CenterPoint.
Tra i risultati notevoli c'è l'installazione di 437 Dispositivi di Commutazione della Rete Intelligente, che hanno portato a oltre 80 milioni di minuti di interruzioni evitate per i clienti nel 2023. Le tariffe di CenterPoint sono rimaste relativamente stabili nell'ultimo decennio, rimanendo al di sotto dell'inflazione annuale del 2,8% e sono state le più basse tra le utility concorrenti del Texas nel 2024.
CenterPoint Energy ha alcanzado un acuerdo de conciliación en su caso de tarifas eléctricas de Houston para 2024 que resultará en aproximadamente 50 millones de dólares menos en ingresos anuales hasta aproximadamente 2029. El acuerdo, pendiente de aprobación por parte del PUCT, reducirá las facturas de los clientes en aproximadamente 1 dólar al mes, representando una disminución del 2% para los clientes residenciales que utilizan 1,000 kWh por mes.
La empresa ha invertido 8 mil millones de dólares en mejoras de la red desde 2019, incluyendo 2,200 millas de nuevas líneas de distribución, más de 100 millas de líneas de transmisión, y ocho nuevas subestaciones. El acuerdo incluye la propuesta de CenterPoint de reubicar 15 grandes unidades de generación de emergencia a San Antonio durante dos años a partir de la primavera de 2025, ayudando a abordar la escasez energética regional de ERCOT sin generar ganancias para CenterPoint.
Los logros notables incluyen la instalación de 437 Dispositivos de Conmutación de Red Inteligente, lo que resultó en más de 80 millones de minutos de interrupciones evitadas para los clientes en 2023. Las tarifas de CenterPoint se han mantenido relativamente estables en la última década, permaneciendo por debajo de la inflación anual del 2.8%, y fueron las más bajas entre las utilidades concurrentes de Texas en 2024.
CenterPoint Energy는 2024년 휴스턴 전기 요금 사건에서 약 5천만 달러의 연간 수익 감소를 초래하는 합의에 도달했습니다. 이 합의는 PUCT 승인이 필요하며, 1,000 kWh를 월 기준으로 사용하는 주거 고객들에게 약 1달러의 청구서를 줄여주는 2% 감소를 나타냅니다.
회사는 2019년부터 80억 달러를 전력망 개선에 투자했으며, 이에는 2,200마일의 새로운 배전선, 100마일 이상의 송전선 및 8개의 새로운 변전소가 포함됩니다. 이번 합의는 CenterPoint가 2025년 봄부터 2년 동안 샌안토니오로 15개의 대형 비상 발전 유닛을 이전하겠다는 제안을 포함하고 있으며, 이는 CenterPoint의 이익 없이 ERCOT의 지역 에너지 부족 문제를 해결하는 데 도움을 줄 것입니다.
특히 2023년에는 437개의 지능형 그리드 스위칭 장치를 설치하여 고객의 정전 시간을 8천만 분 이상 줄였습니다. CenterPoint의 요금은 지난 10년 동안 상대적으로 안정적이었으며 연간 2.8%의 인플레이션 아래에 머물렀고, 2024년에는 텍사스의 동종 유틸리티 중 가장 낮은 요금을 기록했습니다.
CenterPoint Energy a atteint un accord de règlement dans son affaire tarifaire électrique de Houston pour 2024 qui se traduira par environ 50 millions de dollars de revenus annuels en moins jusqu'à environ 2029. L'accord, en attente d'approbation par le PUCT, réduira les factures des clients d'environ 1 dollar par mois, représentant une diminution de 2 % pour les clients résidentiels utilisant 1 000 kWh par mois.
L'entreprise a investi 8 milliards de dollars dans des améliorations du réseau depuis 2019, y compris 2 200 miles de nouvelles lignes de distribution, plus de 100 miles de lignes de transmission et huit nouvelles sous-stations. L'accord comprend la proposition de CenterPoint de déplacer 15 grandes unités de génération d'urgence à San Antonio pendant deux ans à partir du printemps 2025, aidant à résoudre le manque d'énergie régional d'ERCOT sans générer de profit pour CenterPoint.
Parmi les réalisations notables figure l'installation de 437 dispositifs de commutation de réseau intelligents, ce qui a permis d'éviter plus de 80 millions de minutes de pannes pour les clients en 2023. Les tarifs de CenterPoint sont restés relativement stables au cours de la dernière décennie, restant en dessous de l'inflation annuelle de 2,8 %, et étaient les plus bas parmi les entreprises de services publics concurrentes au Texas en 2024.
CenterPoint Energy hat eine Einigung in ihrem Elektropreismodell für Houston im Jahr 2024 erzielt, die zu etwa 50 Millionen Dollar weniger jährlichen Einnahmen bis ungefähr 2029 führen wird. Die Einigung, die auf die Genehmigung des PUCT wartet, wird die Rechnungen der Kunden um etwa 1 Dollar pro Monat senken, was für Haushaltskunden, die 1.000 kWh pro Monat nutzen, einem Rückgang von 2% entspricht.
Das Unternehmen hat seit 2019 8 Milliarden Dollar in die Verbesserung des Stromnetzes investiert, einschließlich 2.200 Meilen neuer Verteilungslinien, über 100 Meilen von Übertragungsleitungen sowie acht neuen Umspannwerken. Die Einigung beinhaltet CenterPoints Vorschlag, 15 große Notstromanlagen für zwei Jahre ab dem Frühjahr 2025 nach San Antonio zu verlegen, um der regionalen Energieknappheit der ERCOT zu begegnen, ohne Profit für CenterPoint zu generieren.
Bemerkenswerte Erfolge sind die Installation von 437 intelligenten Netzumschaltvorrichtungen, die im Jahr 2023 zu mehr als 80 Millionen Minuten vermiedenen Kundenunterbrechungen geführt haben. Die Tarife von CenterPoint sind im letzten Jahrzehnt relativ stabil geblieben, lagen unter der jährlichen Inflation von 2,8% und waren 2024 die niedrigsten unter den Wettbewerbsunternehmen in Texas.
- Settlement reduces annual revenue by $50 million, lowering customer bills by ~2%
- $8 billion investment in grid infrastructure since 2019
- Lowest utility rates among Texas peers in 2024
- 80 million minutes of customer outages avoided in 2023
- Revenue reduction of $50 million annually through 2029
Insights
The settlement agreement in CenterPoint Energy's 2024 Houston Electric Rate Case presents a carefully orchestrated balance between customer benefits and operational sustainability. The
Several key aspects warrant investor attention:
- Rate Structure Stability: The settlement maintains CenterPoint's position as the lowest-cost utility provider in Texas, with rates remaining relatively flat over the past decade despite
2.8% average annual inflation. This pricing advantage provides a competitive moat and regulatory goodwill. - Infrastructure Investment Returns: The settlement acknowledges substantial grid investments, including 2,200 miles of distribution lines and multiple substations, suggesting continued regulatory support for capital recovery.
- ERCOT Strategy: The proposal to relocate emergency generation units to San Antonio represents a shrewd regulatory strategy. While foregoing direct profits, this move builds political capital and potentially positions CenterPoint favorably for future regulatory proceedings.
- Financial Impact Management: The combination of rate case reductions and storm recovery cost arrangements effectively neutralizes the historical temporary generation costs, demonstrating sophisticated financial engineering that minimizes impact on long-term earnings.
The settlement's timing and structure indicate a proactive regulatory approach, potentially reducing regulatory risk and supporting stable returns through the next rate case cycle. The company's demonstrated ability to maintain service quality while managing costs efficiently suggests continued strength in its regulated utility operations.
Settlement expected to result in approximately
Combination of rate case revenue reduction and other financial commitments, including some 2024 foregone storm recovery costs, would roughly equal the same amount that has been billed to CenterPoint customers for the temporary generation costs since 2021
Company would make no revenue or profit off of the temporary emergency generator proposal to help ERCOT and
A rate case for Houston Electric occurs approximately once every four years and is part of an open and transparent regulatory process in which rates are set by the PUCT.
"All of us at CenterPoint are committed to continuing to work to meet the needs of our customers and providing the reliable, safe, and affordable service that they expect and deserve. Our settle agreement with these parties would reduce the amount of revenue that CenterPoint receives, and customer bills would decrease, while also addressing the significant investments we have made to strengthen our system for the benefit of our customers. Following customer feedback and constructive discussions with intervening parties over the last several months, this plan keeps our customers at the forefront and supports CenterPoint's ultimate goal of building the most resilient coastal grid in the country," said Jason Ryan, Executive Vice President of Regulatory Services and Government Affairs.
CenterPoint requested to temporarily withdraw its rate case in August to focus on the company's Greater Houston Resiliency Initiative in the aftermath of Hurricane Beryl. The company resumed talks in the fall and this settlement agreement reflects discussions with intervening parties. It also includes both an expected rate reduction for customers and a proposal for CenterPoint to reduce its overall revenue by approximately
Over the last decade, CenterPoint's rates have remained relatively flat on an average annual basis, well below annual inflation, which averaged around 2.8 percent during that timeframe. The portion of customers' electric bills that covers CenterPoint's system was just under
Investing in the
CenterPoint's 2024 rate case is intended to support the capital investments that the company has made to expand and improve the
- Installing nearly 2,200 miles of new distribution lines and more than 100 miles of new transmission lines to meet the needs of a strong economy;
- Constructing six new distribution substations and two new transmission substations to support regional growth and increased load needs;
- Interconnections for 25 new generation resources for the grid;
- Elevating 11 substations to aid in flood mitigation and improve the resiliency of CenterPoint Energy's system; and
- Installing 437 Intelligent Grid Switching Devices to help prevent and reduce sustained outages, resulting in more than 80 million minutes of customer outages avoided in 2023.
These investments preceded the actions that CenterPoint has taken to strengthen the grid, improve communications and expand local and emergency partnerships as part of the Greater Houston Resiliency Initiative launched in August 2024. For more information about CenterPoint Energy's electric rates and investments in the
CenterPoint's proposal to help ERCOT would also help reduce customer bills
In December 2024, CenterPoint Energy proposed a unique solution to help mitigate the Electric Reliability Council of
To be clear, CenterPoint would receive no revenue or profit from ERCOT for the time period after the units are in
The combination of rate case revenue reduction and other financial commitments, including some 2024 foregone storm recovery costs, would roughly equal the same amount that has been billed to CenterPoint customers for the temporary generation costs since 2021.
The company would make no revenue or profit off of the temporary emergency generator proposal to help ERCOT and
CenterPoint's Role in the Texas Electricity Market
CenterPoint is an electric transmission and distribution company in the
About CenterPoint Energy, Inc.
As the only investor-owned electric and gas utility based in
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 expected annual revenue decreases and future bill impacts, 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, 2023 and CenterPoint's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 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
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