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ERCOT Board approves moving ahead to finalize CenterPoint Energy's emergency generation proposal; Company's actions will lower bills for Houston-area customers and help avoid regional energy shortfall
CNPCenterPoint Energy(CNP) Prnewswire·2025-02-26 01:37

Core Viewpoint - CenterPoint Energy is taking significant steps to address Texas's energy needs by deploying 15 large emergency generation units to the San Antonio region, which will help mitigate projected energy shortfalls for up to two years starting in Summer 2025, while also providing bill relief to Greater Houston-area customers by approximately 2permonthby2027[1][2][8].Group1:ProposalDetails−CenterPointwillutilize15largeemergencygenerationunits,eachwithacapacityrangingfrom27MWto32MW,capableofpoweringapproximately30,000homes[5][8].−TheunitswillbedispatchedbyERCOTtoservetheSanAntonioarea,addressingthestate′sgenerationshortfallconcerns[2][9].−CenterPointwillnotgenerateanyrevenueorprofitfromtheseunitsduringtheproposedtwo−yearserviceperiod[1][13].Group2:CustomerImpact−TheaverageHoustonElectriccustomer,usingapproximately1,000kWhpermonth,willseeareductionintheirbillsofanestimated2 per month by 2027 [1][2][8]. Group 1: Proposal Details - CenterPoint will utilize 15 large emergency generation units, each with a capacity ranging from 27MW to 32MW, capable of powering approximately 30,000 homes [5][8]. - The units will be dispatched by ERCOT to serve the San Antonio area, addressing the state's generation shortfall concerns [2][9]. - CenterPoint will not generate any revenue or profit from these units during the proposed two-year service period [1][13]. Group 2: Customer Impact - The average Houston Electric customer, using approximately 1,000 kWh per month, will see a reduction in their bills of an estimated 2 per month related to this transaction by 2027 [4][8]. - Costs associated with the emergency generation units will be removed from CenterPoint's Houston Electric rates once they leave the service area [4][8]. Group 3: Regulatory and Operational Context - The proposal is subject to final approvals and must be agreed upon by the Public Utility Commission of Texas in Spring 2025 [8]. - CenterPoint has engaged in discussions with ERCOT staff and local leaders over the past six months to finalize this unique proposal [7][8]. Group 4: Future Considerations - After the two-year service period, CenterPoint plans to seek future market opportunities, including potentially sub-leasing the emergency generation units to third parties [13].