EVANSVILLE, Ind., June 17, 2021 /PRNewswire/ -- CenterPoint
Energy (NYSE: CNP) today announced the filing of an application
with the Indiana Utility Regulatory Commission (IURC) requesting
approval to construct two natural gas combustion turbines to
replace portions of its existing coal-fired generation fleet. The
filing comes as the next component in CenterPoint Energy's
long-term generation transition plan, which seeks to significantly
change the way the company generates power and deliver on its
commitment to provide a cost-effective, well-balanced energy mix
for its 145,000 customers in southwest Indiana.
The estimated $323 million turbine
facility would be constructed at the current site of A.B.
Brown power plant in Posey County, Ind. and will provide a combined
output of 460 megawatts (MW), sized appropriately to support the
anticipated electric generation needed upon the proposed retirement
of A.B. Brown units 1 and 2 in
late 2023. Construction of the turbines will begin following
receipt of approval by the IURC, anticipated in the second half of
2022. The turbines are targeted to be operational in 2024.
In June 2020, CenterPoint Energy
presented the results from its most recent Integrated Resource Plan
(IRP) which illustrated a preferred portfolio including nearly
two-thirds of energy generated from renewable resources that is
expected to lower carbon emissions by nearly 75% from 2005 levels.
The preferred portfolio seeks to maintain continued reliability,
while saving electric customers an estimated $320 million over the 20-year planning
period.
"The construction of the natural gas generation turbines is the
next step in CenterPoint Energy's long-term plan to deliver on the
commitment to introduce significant renewables and natural gas into
our portfolio as outlined in our 2020 Integrated Resource Plan,"
said Steve Greenley, Senior Vice
President of Generation Development. "The retirement of our
smaller, inefficient coal units and adding the natural gas
combustion turbines will continue to reduce our emissions and
maintain our focus on the environment while providing our customers
a cost-effective option for delivering safe and reliable
energy."
As part of its generation transition plan, CenterPoint Energy
added 50 MW of universal solar in Troy,
Ind., which is now in service and joins its two 2-MW solar
projects in Vanderburgh County. In
February, CenterPoint Energy filed a request to enter into
agreements on the acquisition of a 300 MW solar array and a power
purchase agreement (PPA) for an additional 100 MWs of solar
energy.
Today's filing will have no immediate impacts on residential
electric bills. Following approval by the IURC, cost recovery of
the proposed natural gas generation turbines will be requested
through an electric rate review process expected in 2023.
Greenley added, "CenterPoint Energy's long-term generation
portfolio transition will meet growing demand to provide cleaner
energy for our region while maintaining the reliability our
customers deserve and have come to expect."
CenterPoint Energy delivers electricity to approximately 145,000
customers in southwest Indiana in
all or portions of Gibson,
Dubois, Pike, Posey,
Spencer, Vanderburgh and Warrick counties. Programs and services are
operated under the brand CenterPoint Energy by Southern Indiana Gas
and Electric Company d/b/a CenterPoint Energy Indiana South.
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 "continue," "could," "estimate," "expect,"
"intend," "may," "plan," "potential," "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 plans to increase renewable and natural
gas generation resources, including the proposed construction of
two natural gas combustion turbines, while retiring certain coal
units and timing thereof, the IURC's approval process, including
the proposed approval of the turbines and timing thereof, the
estimated output and cost of the turbines, anticipated cost savings
and other benefits to customers, carbon emissions reductions,
additional regulatory requests in connection with CenterPoint
Energy's generation transition plan and timing thereof, 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 COVID-19;
(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; and (8) other factors, risks and
uncertainties discussed in CenterPoint Energy's Annual Report on
Form 10-K for the fiscal year ended December
31, 2020, CenterPoint Energy's Quarterly Report on Form 10-Q
for the quarter ended March 31, 2021
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 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
Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of March 31,
2021, the company owned approximately $36 billion in assets and also owned 53.7 percent
of the common units representing limited partner interests in
Enable Midstream Partners, LP, a publicly traded master limited
partnership that owns, operates and develops strategically located
natural gas and crude oil infrastructure assets. With approximately
9,500 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.