CenterPoint Energy sends large temporary emergency generation units to San Antonio to support state's energy needs and lower costs for Houston customers

Rhea-AI Summary

CenterPoint Energy has initiated the deployment of 15 large temporary emergency generation units to San Antonio to address regional power generation shortfalls in Texas. The first five units have begun their journey from Houston, with complete deployment scheduled over two months. This initiative, valued at approximately $200 million, represents a collaborative solution with ERCOT and other partners. Each unit can power about 30,000 homes, and CenterPoint will provide these units for up to two years without receiving revenue or profit. The arrangement will benefit Houston-area customers through reduced monthly bills, with average savings of $2 per month by 2027. The units were originally acquired following Winter Storm Uri in 2021. CenterPoint Energy, operating as an electric transmission and distribution company in Texas, serves only the Greater Houston area and does not own power plants or generate electricity in the state beyond these temporary units.

Positive

• Contribution of approximately $200 million in value to Texas' energy infrastructure
• Will help reduce power generation shortfall risks in San Antonio region
• Houston-area customers will save approximately $2 per month by 2027
• Each unit provides enough power for approximately 30,000 homes
• Company is forgoing revenue and profit from the 15 units

Negative

• Temporary solution lasting only up to two years
• Limited to San Antonio region, not addressing statewide energy needs comprehensively

Insights

Utility Industry Expert

CenterPoint's deployment of emergency generators to San Antonio delivers dual benefits: addressing Texas power shortfalls while reducing Houston customer bills.

CenterPoint Energy is implementing a strategic infrastructure redeployment that creates a rare win-win situation for Texas energy consumers. The company is moving 15 large temporary emergency generation units from Houston to San Antonio in three waves over the next two months. This initiative represents an estimated $200 million contribution of value to the state's energy infrastructure.

What makes this arrangement particularly significant is its dual benefit structure:

• For San Antonio: The units will provide 27-32MW each (enough to power approximately 30,000 homes per unit) to address critical generation capacity shortfalls in the region.
• For Houston customers: The cost removal from Houston-area bills will result in approximately $2 per month savings for average customers by 2027.

The timing is noteworthy, as these units were originally acquired following Winter Storm Uri in 2021, when Texas experienced devastating power failures. This deployment represents a proactive approach to potential summer peak demand challenges in the San Antonio region.

Perhaps most unusual for utility operations is CenterPoint's agreement to forgo all revenue and profit from these 15 large units under its arrangement with ERCOT. This reflects the complex regulatory environment in Texas's deregulated energy market, where CenterPoint functions purely as a transmission and distribution company without power generation assets (outside these leased temporary units) or retail customers beyond its 12-county Greater Houston service area.

This collaborative solution between ERCOT, regulators, elected officials, and industry partners demonstrates an innovative approach to regional grid reliability challenges without constructing permanent generation facilities, while simultaneously providing rate relief to Houston consumers.

• Company delivers on unprecedented contribution of approximately $200 million of value to the State of Texas
• First five of the 15 large temporary emergency generation units deployed to San Antonio area to help address regional power generation shortfall
• Historic agreement with state and industry partners will help address Texas' power generation needs and lower bills for Houston-area customers by approximately $2 per month by 2027

HOUSTON, June 16, 2025 /PRNewswire/ -- This weekend, as part of an effort to help the State of Texas meet its current and future energy needs, CenterPoint Energy announced that the first five of 15 large temporary emergency generation units began leaving the Greater Houston area to be deployed to the San Antonio region. To help with staging and installation in San Antonio, the units are departing Greater Houston in a series of three waves over the next two months.

In total, CenterPoint will be providing 15 large temporary emergency generation units for up to two years as part of an unprecedented, Texas-driven solution reached in close collaboration over the last six months with the Electric Reliability Council of Texas (ERCOT), elected leaders, regulators and industry partners. In addition to helping reduce the risk of power generation shortfalls in San Antonio this summer and next, the cost of the deployed units will be removed from Houston-area customers' monthly bills, saving average CenterPoint customers approximately $2 per month by 2027.

"All Texans can be proud that this creative, collaborative solution is moving forward to help meet our great state's significant energy needs and improve reliability across Texas. This unprecedented contribution of value from CenterPoint to the state will help reduce the risk of energy shortfalls in San Antonio and will immediately lower monthly bills for our Houston-area customers. We look forward to successfully delivering the first five units and additional deliveries planned in the weeks ahead," said Jason Ryan, Executive Vice President of Regulatory Services and Government Affairs.

Key Facts: Delivering CenterPoint's Texas-Driven Generation Solution
In early June, ERCOT, CenterPoint and industry partners signed final agreements to begin delivery of the 15 large temporary emergency generation units for up to a two-year service period in San Antonio starting this summer. The plan includes the following components:

• Lowering bills for Greater Houston-area customers: Costs associated with the large leased temporary emergency generation units will start coming 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: The 15 large units (27MW-32MW) will provide critical generation capacity in the Greater San Antonio area to help avoid the risk of shortfalls. The units each provide enough power for approximately 30,000 homes and were acquired following the devastation of Winter Storm Uri across Texas in 2021.
• Forgoing revenue and profit for 15 units: CenterPoint will receive no revenue or profit from the 15 large units based on the agreement with ERCOT.

A video summary of the large temporary emergency generation units leaving the Greater Houston area and b-roll footage of one of the units sent to San Antonio this weekend can be found here: CNP Digital Asset Mgmt 

CenterPoint's role in the Texas electricity market
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 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.

About CenterPoint Energy, Inc.
CenterPoint Energy, Inc. (NYSE: CNP) is a multi-state electric and natural gas delivery company serving approximately 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. The company is headquartered in Houston and is the only Texas-domiciled investor-owned utility. As of March 31, 2025, the company had approximately $44 billion in assets. With approximately 8,300 employees, CenterPoint Energy and its predecessor companies have been serving customers for more than 150 years. For more information, visit CenterPointEnergy.com.

Forward-looking Statements
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 "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will," "would" or other similar words are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding effectiveness, timing and related matters to the movement of the large temporary emergency generation units, 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 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) business strategies and strategic initiatives, restructurings, joint ventures, acquisitions or dispositions of assets or businesses involving CenterPoint Energy or its industry; (2) CenterPoint Energy's ability to fund and invest planned capital, and the timely recovery of its investments; (3) financial market and general economic conditions; (4) the timing and impact of future regulatory, legislative and political actions or developments; and (5) other factors, risks and uncertainties discussed in CenterPoint's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and CenterPoint's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and other reports CenterPoint or its subsidiaries may file from time to time with the Securities and Exchange Commission. Investors and others should note that we may announce material information using SEC filings and the Investor Relations page of our website, including press releases, public conference calls, webcasts. In the future, we will continue to use these channels to distribute material information about the company and to communicate important information about the company, key personnel, corporate initiatives, regulatory updates, and other matters. Information that we post on our website could be deemed material; therefore, we encourage investors to review the information we post on the Investor Relations page of our website.

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

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SOURCE CenterPoint Energy

FAQ

What is CenterPoint Energy's (CNP) plan for emergency power generation in Texas?

CenterPoint Energy is deploying 15 large temporary emergency generation units to San Antonio over two months, providing them for up to two years to help address regional power generation shortfalls.

How much will CNP customers save from the emergency generation unit deployment?

Houston-area CenterPoint Energy customers will save approximately $2 per month by 2027 as costs associated with the units are removed from their bills.

How many homes can each CenterPoint Energy emergency generation unit power?

Each emergency generation unit can provide enough power for approximately 30,000 homes.

What is the total value of CenterPoint Energy's emergency generation contribution to Texas?

CenterPoint Energy's emergency generation contribution represents approximately $200 million in value to the State of Texas.

Will CenterPoint Energy profit from the emergency generation units in San Antonio?

No, CenterPoint Energy will receive no revenue or profit from the 15 large emergency generation units based on the agreement with ERCOT.