- Company requests to purchase 335 megawatts (MW) in additional generating capacity from third-party solar projects in Indiana
- Proposed power purchase agreements represent the next component of company's Smart Energy Future Plan
Evansville, IN /PRNewswire/ - CenterPoint Energy (NYSE: CNP) today announced its Indiana-based electric and natural gas business, CenterPoint Energy Indiana South, has filed a request for approval from the Indiana Utility Regulatory Commission (IURC) to enter into two power purchase agreements (PPAs) for an additional 335 megawatts (MWs) of solar energy as part of the next component in the company's long-term electric generation transition plan.
The company is requesting approval to purchase 185 MWs of solar power, under a 15-year PPA, from Oriden, which is developing a solar project in Vermillion County, Ind., and 150 MWs of solar power, under a 20-year PPA, from Origis Energy, which is developing a solar project in Knox County, Ind. Subject to necessary approvals, both solar arrays are expected to be in service by 2023. The total 335 MWs from these developments is expected to supply enough power to meet the needs of more than 70,000 homes or 12,000 commercial customers per year.
"These additional renewable resources would serve our local electric customers, providing a cost-effective, stable energy option," said Steve Greenley, Senior Vice President, Indiana Electric Operations for CenterPoint Energy. "We look forward to partnering with Oriden and Origis Energy as they bring these projects to fruition."
In addition to the proposed PPAs, the company has filed and is awaiting an order on two other components of its electric generation transition plan. In February, the company filed a request with the IURC seeking approval to acquire a 300 MW solar array and an additional 100 MW PPA. In June, the company filed an application requesting approval to construct two natural gas combustion turbines to replace portions of its existing coal-fired generation fleet.
"Oriden is proud to support CenterPoint Energy's efforts to diversify their electric generation portfolio and contribute to the future of cleaner energy for its customers," said Masahiro Ogiso, President and CEO of Oriden. "It really takes a team effort with our stakeholders to develop a successful renewable energy project like this. We would like to thank the leadership team at the Vermillion Rise Mega Park and our partners in Vermillion County for supporting this important initiative."
The PPAs totaling 335 MWs represent the next component of the company's Smart Energy Future Plan to meet stakeholder sustainability goals and implement a cost-effective, well-balanced energy mix for its 145,000 customers in southwest Indiana as outlined in last summer's Integrated Resource Plan (IRP). In June 2020, CenterPoint Energy presented the IRP results, which illustrated a preferred portfolio including nearly two-thirds of energy generated from renewable resources and includes flexible generation to meet seasonal peak loads. The portfolio seeks to maintain continued reliability, while saving electric customers an estimated $320 million over the 20-year planning period.
Johan Vanhee, Chief Commercial and Procurement Officer with Origis Energy said, "We thank CenterPoint Energy for partnering with Origis Energy to acquire clean power from our solar project in Knox County. We look forward to the completion of the project to assist CenterPoint Energy in meeting the future energy needs of its southwestern Indiana electric customers."
Greenley added, "The additional energy obtained through the power purchase agreements will further CenterPoint Energy's Smart Energy Future strategy. We're pleased to be working with trusted developers in pursuit of continued renewable generation to support the communities we serve."
CenterPoint Energy delivers electricity to approximately 145,000 customers in southwest Indiana in all or portions of Gibson, Dubois, Pike, Posey, Spencer, Vanderburgh and Warrick counties. Programs and services are operated under the brand CenterPoint Energy by Southern Indiana Gas and Electric Company d/b/a CenterPoint Energy Indiana South.
Forward Looking Statement
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" or other similar words are intended to identify forward-looking statements. These forward-looking statements 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, such as the entry into and proposed regulatory approval of the two PPAs and timing thereof, the Company's long-term electric generation transition plan and expected timing, benefits and generation mix resulting therefrom, expected timing of completion and power to be generated from the solar projects related to the two PPAs, anticipated cost savings and other benefits to customers, and any other statements 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) the impact of COVID-19; (2) financial market conditions; (3) general economic conditions; (4) the timing and impact of future regulatory and legislative decisions; (5) effects of competition; (6) weather variations; (7) changes in business plans; and (8) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, CenterPoint Energy's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.
About CenterPoint Energy
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 Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of June 30, 2021, the company owned approximately $36 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,500 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.
Located in Pittsburgh, Oriden develops, constructs, finances, owns and operates renewable energy projects throughout the United States. As local governments, public institutions and corporations prioritize cleaner sources for their energy needs, they want a developer with the ingenuity, the agility and the speed of a start-up — a fearless pioneer. But they also want to mitigate risk with a proven veteran that has the financial strength and experience to develop, commercialize, operate and own a highly complex project. Oriden is an authorized provider of the power solutions brand of Mitsubishi Power Americas, Inc., which has more than a century of experience manufacturing, servicing and providing power and energy solutions globally. For more information, visit the Oriden website and the Mitsubishi Power Americas website.
About Origis Energy
Origis Energy is bringing clean and cost effective solar and energy storage solutions within reach for utility, commercial and industrial as well as public sector clients. The Origis team has worked to ensure the interests of all stakeholders are upheld in 170 projects worldwide totaling more than 4 GW to date of developed solar and energy storage capacity. Headquartered in Miami, FL, Origis Energy delivers excellence in solar and energy storage development, financing, engineering, procurement and construction (EPC) and operations, maintenance and asset management for investors and clean energy consumers in the U.S.