CenterPoint Energy's Emergency Generation Proposal: A Win-Win for Texas and Its Customers

The Electric Reliability Council of Texas (ERCOT) Board has approved CenterPoint Energy's proposal to utilize 15 large emergency generation units, a move that will not only help avoid regional energy shortfalls but also lower bills for Houston-area customers. This strategic decision, driven by CenterPoint's commitment to meeting the state's immediate energy needs, is set to bring significant benefits to both Texas and its residents.

CenterPoint Energy's proposal involves sending the 15 large emergency generation units, ranging from 27MW to 32MW each, to the San Antonio area by summer 2025. These units will be available to serve ERCOT for up to two years, helping to offset a projected energy shortfall. This Texas-driven solution will provide critical generation capacity for the San Antonio region, avoiding the risk of possible shortfalls and ensuring the reliability of the state's energy grid.

For CenterPoint's Greater Houston-area electric customers, the proposal brings welcome bill relief. The cost of these large temporary generation units will be removed from CenterPoint's Houston Electric rates once they leave the CenterPoint service area in the coming months. By 2027, the average Houston Electric customer (who uses 1,000 kWh/month) will see a reduction in bills of an estimated $2/month related to this transaction. This reduction will be achieved through a combination of rate reductions and foregoing other costs, making Houston Electric customers whole for the portion of the units that they have been billed for to date.

CenterPoint Energy's commitment to helping ERCOT and the State of Texas without making any revenue or profit from these 15 units demonstrates the company's dedication to its customers and the broader Texas community. By working together with ERCOT staff, elected leaders, and other parties, CenterPoint has found a commonsense, Texas-driven solution that reduces customers' electric bills while addressing the state's projected power needs for the next few years.

In conclusion, CenterPoint Energy's emergency generation proposal is a win-win for Texas and its customers. By investing in the state's energy infrastructure and ensuring the reliability of its power grid, CenterPoint is not only helping to meet the state's immediate energy needs but also providing long-term benefits to its customers through bill relief. As the Texas economy continues to grow, so too will its energy demands, and CenterPoint's proactive approach to addressing these needs will be crucial in maintaining the state's energy security and sustainability.