CenterPoint Energy Plans $1.2B Infrastructure Improvements

CenterPoint Energy Plans $1.2B Infrastructure Improvements

CenterPoint Energy, Inc.’s (NYSE: CNP) Indiana-based natural gas business, CenterPoint Energy Indiana North, has filed a request with the Indiana Utility Regulatory Commission (IURC) to continue its natural gas infrastructure improvements during the next five years to comply with federal pipeline safety rules and to ensure the company’s 625,000 natural gas customers in north central, central and southeastern Indiana continue to receive safe, reliable gas service for decades to come.

Previous policy set by the Indiana Legislature allows utilities to recover federal-mandated costs as well as submit their forward-looking capital investment plans to the IURC for consideration. In 2013, the company filed an initial seven-year gas system modernization plan with the IURC to recover planned capital expenditures through 2020.

“We continue the investments in our natural gas infrastructure to ensure we maintain a safe, reliable system,” said Richard Leger, Vice President of Natural Gas Distribution, Indiana and Ohio. “CenterPoint Energy remains committed to a continued focus on meeting federal requirements and adhering to safety standards.”

The natural gas system improvements are a continuation of efforts over the last seven years to upgrade and maintain portions of CenterPoint Energy’s 13,000-mile network of distribution mains and transmission pipelines through its pipeline replacement and transmission line integrity management programs. The work will primarily consist of replacing 341 miles of bare steel and cast-iron distribution mains with new mains, most of which will be plastic, as well as inspecting and upgrading transmission pipelines. Together, these efforts will call for an estimated $1.2 billion in investments.

If the plan is approved as filed, customer bills will not reflect these investments until 2023. Additional improvements will adjust bills modestly in subsequent years as the infrastructure projects are completed.

“While these infrastructure enhancements are critical to ensuring adherence to federal requirements, affordability of our natural gas service remains top of mind,” added Leger. “As these improvements are completed, we’ll continue to operate a safe and reliable delivery system with minimal impact to customer bills.”

Over the last seven years, pipeline replacement work has been ongoing in more than 50 cities that have bare steel and cast-iron mains in the company’s north central, central and southeastern Indiana service territory. These include Albany, Alexandria, Anderson, Bedford, Bloomington, Brownsburg, Cambridge City, Chesterfield, Clarksville, Cloverdale, Columbus, Crawfordsville, Dana, Danville, Dublin, Eaton, Elwood, Fairmount, Fortville, Frankfort, Gas City, Gaston, Greencastle, Greenfield, Greensburg, Hagerstown, Harrodsburg, Hartford City, Huntington, Jeffersonville, Jonesboro, Knightstown, Lafayette, Lebanon, Madison, Marion, Martinsville, Milton, Mitchell, Muncie, New Albany, New Castle, Noblesville, Oolitic, Parker City, Pendleton, Richmond, Rockville, Rushville, Seymour, Shelbyville, Shideler, Terre Haute, Tipton, West Lafayette and Zionsville. Pipeline replacement in additional cities throughout the service territory is still to come in future years.

Since 2008, more than 700 miles of gas mains have been replaced, which has led to a reduction in leak calls and a reduction in natural gas emissions from CenterPoint Energy’s distribution system.

For an overview of CenterPoint Energy’s gas system modernization plan outlining the infrastructure upgrades, visit www.centerpointenergy.com/pipelinereplacement. Programs and services are operated under the brand CenterPoint Energy by Indiana Gas Company, Inc. d/b/a CenterPoint Energy Indiana North.

CenterPoint Energy’s gas territory covering north central, central and southeastern Indiana delivers natural gas to approximately 625,000 customers in portions of Adams, Allen, Bartholomew, Blackford, Boone, Brown, Clark, Clay, Clinton, Daviess, Decatur, Delaware, Fayette, Floyd, Fountain, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Howard, Huntington, Jackson, Jay, Jefferson, Johnson, Lawrence, Madison, Marion, Martin, Miami, Monroe, Montgomery, Morgan, Orange, Owen, Parke, Putnam, Randolph, Rush, Shelby, Switzerland, Tippecanoe, Tipton, Vermillion, Vigo, Wabash, Warren, Wayne, Wells and White counties. Programs and services are operated under the brand CenterPoint Energy by Indiana Gas Company, Inc. d/b/a CenterPoint Energy Indiana North.

Category Business Buzz