CenterPoint Energy
| Company type | Public |
|---|---|
| Industry | Electric power, Natural gas |
| Predecessor | Reliant Energy, NorAm Energy, Houston Industries, HL&P |
| Founded | 1882 |
| Headquarters | Houston, Texas , United States |
Area served | Indiana, Ohio, Louisiana, Minnesota, Mississippi, Texas, and other U.S. states |
| Products | Electric and natural gas services |
| Website | www |
CenterPoint Energy, Inc. is a utility corporation headquartered in Houston, Texas, delivering electric and natural gas services throughout multiple states in the U.S., including Indiana, Ohio, Louisiana, Minnesota, Mississippi, and Texas. Recognized as a Fortune 500 entity, the company has previously operated under names such as Reliant Energy, NorAm Energy, Houston Industries, and HL&P. Its main offices are situated in the CenterPoint Energy Tower located in Downtown Houston.
History
In 2003, following the deregulation of Texas's electricity market, the former Houston Lighting & Power (HL&P) was segmented into three separate entities: Reliant Energy, Texas Genco, and CenterPoint Energy. Before December 2004, CenterPoint and its antecedents functioned under various regional designations including Minnegasco (natural gas services in Minnesota), HL&P (electric services in Houston), Entex (natural gas services across Texas, Louisiana, Mississippi), and Arkla (natural gas services in Louisiana, Texas, Oklahoma, Arkansas).
Texas Genco was acquired from CenterPoint in 2004 by private equity firms Texas Pacific Group, Blackstone Group, Kohlberg Kravis Roberts, and Hellman & Friedman; it was subsequently sold to NRG Energy in 2006.
On April 23, 2018, CenterPoint announced a definitive agreement to merge with Vectren Corporation. This merger was completed on February 1, 2019, with CenterPoint as the surviving company and Vectren removed from the NYSE. The Vectren brand continued to be used within its service areas until May 3, 2021.
September 2008 power outage
Hurricane Ike severely disrupted service across Greater Houston by cutting power to approximately 2.1 million of CenterPoint's total 2.26 million customers.
- Smart meter pilot program
In March 2009, CenterPoint initiated a five-year deployment of smart meters aimed at improving capabilities for Retail Electric Providers (REPs). Collaborating with the United States Department of Energy, this Texas pilot involved 500 households in the Houston region and demonstrated that smart meters helped reduce residential energy consumption. The project received partial funding through $200 million allocated from the federal stimulus package.
Electric vehicles
In 2010, CenterPoint Energy formed a partnership with Ford Motor Company to encourage electric vehicle adoption via consumer education and outreach initiatives. This alliance concentrated on addressing charging infrastructure requirements and integrating renewable energy sources to reduce emissions and lessen impacts on distribution systems.
2021 Texas power outages
On February 15, 2021, during an extreme cold spell in Texas, the Electric Reliability Council of Texas (ERCOT) announced a statewide shortage in power generation capacity amounting to 34,000 MW, leading to extensive blackouts. CenterPoint Energy began implementing controlled rolling outages throughout Greater Houston. Initially forecasting outages lasting between 10 and 45 minutes, the company later advised customers to prepare for longer interruptions. Additionally, it encouraged customers across its eight-state service region to lower thermostat settings to conserve natural gas supplies.
The management of outages experienced delays due to ERCOT directives and generator malfunctions but resumed operations later that day. Throughout this period, CenterPoint consistently urged customers to reduce usage of both electricity and natural gas while working towards restoring power. By early Thursday morning, approximately 1.39 million customers had their service reinstated; ERCOT terminated emergency conditions on Friday as generation capacity stabilized.
2024 Texas Power Disruption
Early on July 8, 2024, Category 1 Hurricane Beryl struck Texas, resulting in the most extensive power outage ever recorded by CenterPoint Energy and within the state, impacting approximately 2.2 million customers.[1]
A graffiti mural displaying the phrase "CenterPointle$$" was painted on an underpass along I-10 West near Studewood Street on July 10, 2024, symbolizing widespread public dissatisfaction with the company's inadequate handling of storm recovery and communication efforts.[2] The Texas Department of Transportation (TxDOT) removed this mural on July 19.[3]
Criticism
On December 16, 2005, CenterPoint Energy revealed plans to restate its financial results for 2004 and the first three quarters of 2005 due to accounting mistakes that had inflated revenue and natural gas expense figures.[4]
In December 2011, the nonpartisan organization Public Campaign criticized CenterPoint Energy for allocating $2.65 million toward lobbying activities while reporting no federal income tax payments between 2008 and 2010. During this timeframe, the company posted $1.9 billion in profits and received $284 million in tax rebates, even though its five highest-paid executives each earned between $12 million and $13 million.[5]
See also
- Deregulation of the Texas electricity market
- Electric Reliability Council of Texas (ERCOT)
- Sheffield Nelson