As part of its continuing commitment to better serve customers across the Greater Houston area, CenterPoint testified before the Texas Senate Committee on Business and Commerce on its proposal to remove the cost of large emergency generation units from electric customers' monthly bills and save average residential customers as much as $2 per month by 2027.
CenterPoint's proposal would reduce customer bills by sending 15 large emergency generation units to the San Antonio area for up to two years to immediately support the State of Texas' energy needs for generation. Overall, CenterPoint's proposal is part of a broader plan to make its electric customers whole for the portion of the units customers have paid through their monthly electric bills.
"In Texas, we're at our best when we're working together to solve complex challenges. I think everyone can be proud of this proposal that provides a Texas-driven solution to address the state's power generation shortfall, while also taking steps to reduce the impact on our customers. This plan would not only lower monthly bills immediately, and by as much as $2 by 2027, but it would address the costs paid to date related to large generation units. We look forward to working with elected leaders, regulators and industry partners to move these units to San Antonio and fulfill our commitment to lowering costs for our customers, while helping do our part to improve reliability for our great State of Texas," said Jason Wells, President and Chief Executive Officer of CenterPoint Energy.
CenterPoint's Texas solution for emergency generation units
Last month, the Electric Reliability Council of Texas (ERCOT) Board of Directors unanimously approved moving forward with a plan, which is the basis for today's testimony, that includes the following key components:
- Lowering bills for CenterPoint Houston electric customers: Costs associated with the large leased emergency generation units will start to come out of rates for Houston Electric customers in the coming months. By 2027, bills will be reduced by an estimated $2 per month for the average customer who uses 1,000 kWh/month.
- Meeting Texas' current and future energy needs: Subject to finalization of mutually agreed upon documentation among the relevant parties, including ERCOT and the service provider/operator of the emergency generation units, CenterPoint stands ready to send the 15 large units (ranging from 27MW-32MW) to the Greater San Antonio area in the coming months, providing critical generation capacity to help avoid the risk of shortfalls. The units can each provide enough power for approximately 30,000 homes and were originally acquired following the devastation of Winter Storm Uri in 2021.
- Forgoing revenue and profit for 15 units: CenterPoint will receive no revenue or profit from the 15 large units for an up to two-year period based on the proposal with ERCOT.
CenterPoint is an electric transmission and distribution company in the Texas market. The company does not own any power plants in Texas; other than the leased temporary generation units, CenterPoint does not generate any electricity in the state; and it 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.
The proposed Texas generation solution and cost reduction reflect CenterPoint's commitment to better serving its customers in the Greater Houston area and communities across Texas. As part of this overall commitment, the company is working every day to strengthen the grid and prepare for the 2025 hurricane season, which begins June 1.
