EVANSVILLE, Ind., June 29,
2023 /PRNewswire/ -- Indiana electric customers of CenterPoint
Energy, Inc. (NYSE: CNP) will see a decrease in their electric
bills beginning next month as a result of the
company's securitization pilot, which allows for the removal
of the remaining value of its A.B. Brown coal plant assets from
customer rates.
In January 2023, the Indiana
Utility Regulatory Commission (IURC) approved a financing order for
the coal retirement securitization bonds, which is expected to
result in a total decrease to customers' electric bills by an
estimated $53 million when compared
to traditional financing alternatives.
All Indiana electric customer
classes – residential, small commercial, industrial – will realize
savings. Residential customers using approximately 900 kWh per
month are expected to see a nearly $5
bill credit per month on their bills. The credits from
the securitization of A.B. Brown assets will more than offset
the new securitization charge added to customers' bills to pay for
the securitization bonds.
In 2021, legislation was passed in Indiana allowing for a securitization
pilot program to benefit CenterPoint Energy's Indiana electric customers. The company
advocated for the opportunity to demonstrate how this tool could
save customers money over traditional utility financing.
"As we continue to execute our long-term electric generation
transition plan, we are excited to implement this cost-effective
strategy – a first-of-its-kind in the state of Indiana – to help reduce customers' bills,"
said Richard Leger, Senior Vice
President, Indiana Electric. "Securitization financing assists us
in our continued efforts to deliver safe and reliable service,
while keeping customer savings a top priority."
CenterPoint Energy plans to retire the A.B. Brown coal units 1
and 2 in October 2023 as part of its
long-term electric generation transition plan. The remaining value
of the coal plants and other qualified costs are financed through
the issuance of these securitization bonds at a lower long-term
interest rate.
While CenterPoint Energy is the first utility to use
securitization financing in Indiana, this is an established practice that
has saved utility customers millions of dollars in nearly 30
states. CenterPoint Energy will reinvest proceeds from the
securitization bonds into its generation transition plan, including
renewable resources such as wind- and solar-powered generation,
both of which will be backed up by natural gas generation resources
to maintain reliability.
For more information on CenterPoint Energy's long-term
electric generation transition plan,
visit Centerpointenergy.com/smartenergyfuture.
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 extent and amount of, if any,
of anticipated customer and interest rate savings 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, CenterPoint Energy's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 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 March 31,
2023, 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.