The company filed a settlement agreement with
the Minnesota Public Utilities Commission reached with intervenors
on its 2023 rate case
MINNEAPOLIS, Nov. 25,
2024 /PRNewswire/ -- Today, CenterPoint Energy
filed a settlement agreement with the Minnesota Public Utilities
Commission (Commission) for its rate case submitted in November 2023, to adjust natural gas distribution
service rates in 2024 and 2025. The company reached a settlement
agreement with all intervening parties including: Minnesota
Department of Commerce, Minnesota Office of Attorney General –
Residential Utilities Division, Citizens Utility Board of
Minnesota, International Union of
Operating Engineers Local 49, LIUNA of Minnesota and North
Dakota, and Suburban Rate Authority.
If approved by the Commission, CenterPoint's rate adjustment
will enable the company to:
- Continue to maintain the safety, resiliency and integrity of
its natural gas distribution system to benefit the company's more
than 920,000 customers in over 260 local Minnesota communities.
- Continue to support the advancement of low- and zero-carbon
technologies, including recovering certain costs for the company's
innovation plan approved in July 2024
by the Commission under Minnesota's Natural Gas Innovation Act for
investments in innovative technologies and low- and zero-carbon
energy resources.
- Conduct infrastructure projects to replace or upgrade existing
pipelines, provide safe and reliable service, comply with federal
pipeline regulations and relocate facilities to enable projects by
government agencies such as roads, bridges, drainage and other
infrastructure.
- Accommodate the increased investments to operate, maintain and
deliver natural gas through the company's distribution system.
"From the outset, we were determined to use a collaborative
approach with state agencies and all intervenors to reach a
settlement agreement that worked for all parties. This agreement
prioritizes the safety, reliability and resiliency of the energy
system for the benefit of our customers and communities throughout
Minnesota," said Brad Steber, CenterPoint's Vice President of
Minnesota Gas. "The agreement meaningfully plans for current and
anticipated near-term future investments to continue to serve our
customers' needs for readily available energy resources. These
proposed investments will enhance our ability to deliver energy
when customers need it most to help them withstand the coldest days
of winter and to keep them safe and warm."
The Commission will review and decide upon the filed settlement
agreement. A decision is expected in 2025.
Meaningful investments in the company's natural gas
system
A rate case is a forward-looking proposal to plan for
the continued needs of customers for energy service. CenterPoint
plans to continue to make investments in the safety and resiliency
of the company's natural gas distribution system to benefit its
customers including:
- Replacing natural gas lines using modern construction methods
and materials.
- Relocating natural gas meters inside residential customer's
homes to outside for improved access in case of an emergency and
for enhanced customer safety.
- Deploying smart natural gas meters for residential customers,
which have enhanced safety and communications features.
- Using methane detection vehicles that have a higher level of
detection capability to monitor methane emissions and more
efficiently conduct leak detection operations, allowing for faster
mitigation and repair of natural gas leaks.
- Leveraging vacuum-like technology, also known as
cross-compression, during repair, replacement and inspection of a
natural gas line to help prevent natural gas from going into the
air. Instead, the natural gas is temporarily stored or placed in
another segment of natural gas line.
Rate adjustment proposal
As identified in the
proposed settlement agreement, CenterPoint is requesting
adjustments to the delivery charge, or the cost to deliver natural
gas. The delivery charge accounts for approximately 50% of a
typical residential customer's monthly bill. The remaining
approximately 50% of a customer's bill is the cost of natural gas
which is passed through at cost. CenterPoint does not profit from
the overall cost of natural gas.
The requested increase is approximately 4.7% or $60.8 million for 2024 and approximately 3.1% or
$42.7 million for 2025. The requested
increase will add $2.70 to the
average residential customer's monthly bill in 2024 and an
additional $1.27 to an average
residential customer's monthly bill in 2025.
While the rate case is under consideration, interim rates are in
effect. Interim rates started with the January 2024 billing cycle and added
approximately $4 per month to the
average residential bill. It is anticipated that interim rates for
2025 would begin with the January
2025 billing cycle and be approximately $2 more per month for an average residential
customer's bill as the Commission reviews the settlement
agreement.
Interim rates are applied as an equal percentage across all
customer types. After final rates have been approved by the
Commission, and if interim rates are set higher than final approved
rates, CenterPoint will calculate a refund to customers for the
difference in interim rates and final rates. The refund will be
based on actual customer usage while interim rates were in effect,
including interest, and will be issued as a credit on a monthly
bill.
CenterPoint offers various programs, tools and tips to help
customers manage their bills and save energy. The company
encourages those facing hardship to call CenterPoint to find out
about payment arrangements and be referred to resources that may be
available. To learn more, call 800-245-2377 between 7 a.m. and 7 p.m., Monday-Friday or visit
CenterPointEnergy.com/PaymentAssistance.
More details about the rate case can be found
at CenterPointEnergy.com/RateCase.
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 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 approval by the Commission of the
settlement agreement and timing thereof, the anticipated benefits
of the rate adjustment, investments in the company's natural gas
system and the anticipated benefits thereof, the amount and
expected impact to customer's bills, 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) CenterPoint Energy's business
strategies and strategic initiatives; (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 Report 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
View original content to download
multimedia:https://www.prnewswire.com/news-releases/centerpoint-energy-continues-to-invest-in-the-safety-reliability-and-resiliency-of-its-natural-gas-system-to-benefit-customers-302315893.html
SOURCE CenterPoint Energy, Inc
