Proposal would send all 15 large emergency
generation units to the San
Antonio region for two years starting in Spring 2025
Company would make no revenue or profit off
the proposal to help ERCOT and the State; Greater Houston Area customer
bills would be reduced starting in Spring 2025
HOUSTON, Dec. 19,
2024 /PRNewswire/ -- Today, CenterPoint Energy
(CNP) proposed a solution to help the Electric Reliability Council
of Texas (ERCOT) and the
State of Texas to help offset the
projected electricity supply shortfall starting in summer 2025
around the greater San Antonio
region. CenterPoint has put forward a proposal to support ERCOT's
and State's energy replacement needs while reducing Greater Houston Area customer bills beginning
in Spring 2025.
Over the last several months, the company has worked with a
variety of stakeholders, regulators, and industry peers to address
the specific energy shortfall and potential for load shed risk that
could materialize beginning in summer 2025. Earlier this year,
ERCOT issued a request for proposal to replace three gas-fired
units – Braunig 1, 2 and 3. The retirement of these three gas-fired
power plants is expected to create an approximately 800-megawatt
shortfall in the ERCOT footprint beginning in the summer 2025.
CenterPoint's 15 large emergency generation units (ranging from
27mW to 32mW) could provide up 450mW of power to be dispatched by
ERCOT to serve customers.
"As part of our commitment to better serve our customers, listen
to feedback, and help address the State's growing energy needs,
we've been working diligently to determine the future role of these
15 large-scale emergency generation units that were originally
acquired to help protect customers against extreme weather events
like Winter Storm Uri. Our top
priority has remained finding a positive, Texas-driven solution for these units that
helps address the energy needs of Texans while helping reduce our
customers' bills," said Jason Wells,
President & Chief Executive Officer of CenterPoint Energy.
"We are optimistic that as we continue to work closely with our
elected leaders, regulators, peer utilities and other stakeholders,
we will finalize a solution that best serves the needs of the
State of Texas, ERCOT and our
Houston-area customers."
As part of this proposal to help the State and ERCOT,
CenterPoint would intend to do the following:
- Send all 15 large (27mW -32mW) units, each which could
potentially power up to roughly 30,000 homes, to the Greater San Antonio area prior to summer
2025.
- Until then, these 15 large units would remain in place in the
Greater Houston region over the
winter to protect against an extreme cold weather event risk during
December, January, February, and March. It is expected these units
would be transported to the San
Antonio region in first half of 2025.
- By the summer of 2025, these 15 units would be physically
located at substations around San
Antonio to serve ERCOT for what is likely to be roughly two
years, or a shorter period of time if certain transmission projects
are completed ahead of schedule.
- CenterPoint would receive no revenue or profit from ERCOT for
the time period when the units are in San
Antonio being dispatched by ERCOT.
- CenterPoint would also not charge Houston-area customers for costs associated
with these units incurred during the time period when they are in
San Antonio being dispatched by
ERCOT.
- Assuming all necessary transaction approvals are received, this
proposal would result in an expected reduction to customer bills
for Houston Electric customers that the company would propose to
the Public Utility Commission of Texas in the Spring 2025.
- After the units complete their roughly two-year service period
in San Antonio, CenterPoint would
continue to not charge customers for these units relating to any
future periods, as the company plans to market the units for other
purposes.
- Currently, there is significant market demand for these types
of emergency generation units due to growing energy consumption
from the increase of AI use and data centers as well as the
development of numerous energy projects across the state.
CenterPoint's role in the Texas electricity market
CenterPoint is
an electric transmission and distribution company in the
Texas market. The Company does
not own any power plants in the state; does not
generate any electricity in the state; and does not purchase
electricity on behalf of customers in Texas. It also does not have any electric
customers in Texas outside the
12-county Greater Houston
area.
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," "would" or other similar
words are intended to identify forward-looking statements. These
forward-looking statements, which include statements regarding a
potential transaction with ERCOT, future bill impacts, and future
potential transactions regarding the large emergency generation
units, including effectiveness, timing and related matters, 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
