CenterPoint Energy customers to receive savings from first-of-its-kind financing in Indiana
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.
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SOURCE CenterPoint Energy, Inc.
