CenterPoint Energy makes preparations for first major cold snap of 2025

Rhea-AI Summary

CenterPoint Energy is actively preparing for severe cold weather expected to impact its service territories in Texas, Louisiana, Mississippi, Indiana, and Ohio. The company has implemented comprehensive winter readiness measures across its electric and natural gas infrastructure, including:

- Inspection of 270 substations and critical equipment
- Installation of heaters and ice prevention devices
- Maintenance of freeze protection equipment
- Emergency training for operational personnel
- Positioning of Compressed Natural Gas trucks for system support

In Indiana, forecasts predict significant ice accumulation that could affect power lines. The company has submitted winter readiness declarations to ERCOT and the Railroad Commission of Texas, demonstrating compliance with regulatory requirements adopted in 2021. CenterPoint has also launched a Winter Energy Guide online resource hub and encourages electric customers to enroll in Power Alert Service® for outage updates.

Positive

• Comprehensive winter infrastructure preparation completed across five states
• Compliance with regulatory winter readiness requirements in Texas
• Implementation of smart meter technology and distribution automation for faster outage restoration
• Proactive system upgrades including pipeline replacements and modernization

Negative

• Potential service disruptions due to forecasted severe weather
• Risk of power line damage from ice accumulation in Indiana

Insights

Utility Operations Expert

This winter preparedness announcement reveals comprehensive infrastructure hardening across CenterPoint Energy's multi-state operations. The critical measures include inspecting 270 substations, deploying CNG trucks for system reinforcement and implementing cold-weather protection mechanisms. The timing is particularly relevant given the imminent severe weather forecasts.

The most significant operational aspects include the dual compliance with ERCOT and Railroad Commission requirements - a direct response to the 2021 regulatory changes following Winter Storm Uri. The deployment of distribution automation devices in Southwest Indiana represents a notable technological advancement in outage management. The combination of smart meter integration with automated restoration capabilities positions the utility to maintain more reliable service during extreme conditions.

The infrastructure upgrades, particularly the replacement of bare steel and cast-iron pipes with modern materials, indicate a substantial capital investment in system resilience. This proactive approach to winter preparedness suggests strong operational risk management, though the true test will come during actual severe weather events.

Risk Management Analyst

From a risk perspective, CenterPoint's preparedness strategy demonstrates robust contingency planning across their five-state service territory. The company has implemented a multi-layered approach to mitigate weather-related risks, particularly noteworthy given the forecasted ice storms in Indiana that could impact power lines.

The strategic positioning of resources and implementation of the Power Alert Service® shows sophisticated risk communication and customer engagement. However, investors should note that despite these preparations, severe weather events can still impact quarterly earnings through increased operational costs and potential emergency responses.

The comprehensive winter readiness declarations to regulatory bodies provide a layer of liability protection, but also signal increased regulatory compliance costs. While these preparations are necessary, they represent ongoing capital expenditures that will need to be balanced against rate case outcomes and allowed returns.

Texas, Louisiana and Mississippi teams prepare for potential storms and severe weather this weekend and major cold snap next week

Indiana and Ohio teams prepare for ice and snowstorms expected next week

HOUSTON, Jan. 3, 2025 /PRNewswire/ -- CenterPoint Energy continues to actively monitor potentially severe cold weather projected to impact parts of the company's service territories in Texas, Louisiana, Mississippi, Indiana and Ohio over the coming days. CenterPoint has taken a series of proactive pre-winter preparedness actions to strengthen and winterize its electric and natural gas infrastructure across its multiple states, as well as inspect and test cold-weather critical equipment ahead of potential severe cold weather. The company has a cold weather action plan in place, based on forecasts that are continually changing, and is proactively leaning in to be prepared to respond to potential service issues as safely and as quickly as possible, with crews stationed across the communities it serves.

"We're continuing to monitor the severe cold weather expected across several of the communities we serve in Texas, Louisiana, Mississippi, Indiana and Ohio. We're keeping a particularly close watch on the potential for a major winter storm that could impact Indiana and Ohio over the weekend and into next week as well as potential for severe weather in the Greater Houston area starting Sunday and into next week. We will continue to actively monitor the models for any severe weather and urge our customers to stay alert in anticipation of quickly changing weather conditions," said Matt Lanza, CenterPoint's Meteorology Manager and member of CenterPoint's Emergency Preparedness and Response team.

The current weather forecast for Indiana predicts the chance for significant ice accumulation, which could impact power lines. Ice accumulation of one-fourth of an inch or more can cause power lines to bow and potentially break. The company reminds customers and community members to always assume downed lines or wires are energized and potentially dangerous if contacted. Stay at least 35 feet away from downed power lines or fallen wires and keep your distance from objects touching downed lines (tree limbs, vehicles, fences, etc.). Immediately report downed power lines to CenterPoint.

Critical winter electric and gas readiness actions taken in the Greater Houston area
CenterPoint Texas has submitted its annual declarations of winter readiness to both the Electric Reliability Council of Texas (ERCOT) and the Railroad Commission of Texas. These declarations demonstrate that CenterPoint has completed the regulatory requirements that were adopted in 2021 to prepare electric and natural gas infrastructure for winter storms and extreme cold weather.

The pre-winter safety and readiness actions taken by CenterPoint include:

• Inspecting and testing critical equipment, including all 270 substations, to prepare for high demand and cold temperatures;
• Hardening electric and natural gas infrastructure across the Greater Houston area, including installing heaters and devices to prevent ice damage or buildup;
• Maintaining freeze protection equipment and enclosures for cold-weather critical components;
• Repairing damaged or degraded thermal insulation and water-proofing materials; and
• Conducting emergency training for hundreds of operational personnel and contractors to prepare for, mitigate and respond to the impacts of severe winter weather.

Natural gas system preparedness in Texas, Louisiana and Mississippi

CenterPoint strives to provide natural gas service safely and reliably to its customers and initiates winter preparedness strategies to help protect its natural gas system. These include:

• Positioning Compressed Natural Gas (CNG) trucks to be deployed to supplement the natural gas system, if needed.
• Reinforcing reliability by validating that all station set points are aligned with their cold weather settings and have technicians on standby coordinating closely with engineering and natural gas control.
• Coordinating and communicating with the Railroad Commission of Texas to identify and ensure operations of critical gas infrastructure for natural gas reliability.

Winter electric and gas preparedness actions in Indiana and Ohio

CenterPoint regularly invests in the safety, reliability and resiliency of its electric and natural gas systems in Indiana and Ohio to continue serving customers year-round and prepare for times of peak demand, including winter. Efforts include:

• In Southwest Indiana, we have invested in the resiliency of its electric power system by upgrading power poles and power lines for safe, reliable service to customers;
• Reducing customer electric outage duration through smart meter technology and distribution automation devices which work together to detect and restore customer outages automatically in Southwest Indiana;
• Replacing pipelines such as bare steel and cast-iron pipes to modern materials and installing new lines with modern construction methods across our service territory; and

"We know how important it is for homes and businesses to have the electric and natural gas service they expect and deserve. That is why we are preparing now to respond to any potential impacts to our system from the forecasted colder temperatures, so we can safely and quickly restore service to any impacted customers. Our teams remain alert and will continue monitoring the potential severe weather approaching several of the regions we serve. Even as we continue to coordinate with our emergency partners and take steps to prepare, we strongly urge our customers to remain weather aware and have an emergency plan in place," said Richard Leger, CenterPoint's Senior Vice President of Gas Operations.

2025 Winter Energy Guide
CenterPoint recently launched its Winter Energy Guide, a comprehensive online resource hub that helps customers throughout the winter heating season. The guide features practical and important safety, energy savings and bill management tips to help customers stay safe and warm throughout the winter season. CenterPoint has a cold weather plan in place to respond quickly to potential impacts this winter, and the company encourages customers to use this helpful resource to create their own cold weather plans so that they're prepared for the colder weather ahead. To learn more about the Winter Energy Guide and to receive more important tips, visit CenterPointEnergy.com/ReadyforWinter.

Electric customers encouraged to enroll in Power Alert Service®
CenterPoint electric customers are encouraged to enroll in the company's Power Alert Service® to receive winter storm outage details, estimated restoration times and customer-specific restoration updates by phone call, text or email.

About CenterPoint Energy, Inc.
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 Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. 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. 

For more information, contact
Communications
Media.Relations@CenterPointEnergy.com 

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SOURCE CenterPoint Energy

FAQ

What winter preparedness measures has CenterPoint Energy (CNP) implemented for 2025?

CenterPoint Energy has inspected 270 substations, installed heaters and ice prevention devices, maintained freeze protection equipment, conducted emergency training, and positioned CNG trucks for system support. They've also submitted winter readiness declarations to ERCOT and the Railroad Commission of Texas.

How is CenterPoint Energy (CNP) preparing for the 2025 winter storm in Indiana?

CenterPoint Energy is preparing for significant ice accumulation in Indiana by upgrading power poles and lines, implementing smart meter technology, and using distribution automation devices for faster outage restoration.

What services does CenterPoint Energy's (CNP) 2025 Winter Energy Guide provide?

The Winter Energy Guide is an online resource hub providing safety information, energy savings tips, and bill management guidance to help customers stay safe and warm throughout the winter season.

How can CenterPoint Energy (CNP) customers receive winter storm outage updates in 2025?

Customers can enroll in CenterPoint Energy's Power Alert Service® to receive winter storm outage details, estimated restoration times, and customer-specific restoration updates via phone call, text, or email.