Who is involved in the regulatory process?

CenterPoint Energy's utilities are regulated by state agencies. The commission agencies in both states are the governing bodies over utility services that approve all rates and tariffs. CenterPoint Energy cannot adjust its rates without approval from these agencies. These agencies work to maximize efficiency for the benefit of all parties. CenterPoint Energy in Indiana is regulated by the Indiana Utility Regulatory Commission (IURC) while CenterPoint Energy in Ohio is regulated by the Public Utilities Commission of Ohio (PUCO).

Both states also have a consumer advocate agency that acts to protect consumer rights. In Indiana this agency is the Indiana Office of the Utility Consumers' Counsel (OUCC) and in Ohio it is the State of Ohio Office of Consumers' Counselor.

Federal Regulatory Agencies include the Federal Energy Regulatory Commission (FERC) and the Department of Transportation (DOT). FERC regulates interstate natural gas pipelines and electric transmission lines. The DOT is the regulator for the Federal Pipeline Safety Act that establishes safe operating practices for pipelines.

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Reliability Cost and Revenue Adjustment

The recently approved Reliability Cost and Revenue Adjustment (RCRA) took effect Nov. 30, 2023. As a result, a residential customer using 1,000 kWh will see an increase of approximately $16.55 on their monthly bill. As we transition our electric generation portfolio, additional capacity is required to meet our customers' reliability needs. It's essential we're able to continue to provide consistent and reliable power delivery.

Updated annually, the RCRA reconciles reliability costs and revenues with those costs and revenues already included in base rates. As the company continues its long-term electric generation transition and remains in compliance, CenterPoint Energy was required by EPA regulations to shut down the A.B. Brown coal-fired generation units this past October. As construction continues on our approved renewable projects and natural gas combustion turbines, CenterPoint Energy is required by the Midcontinent Independent System Operator (MISO) to secure the necessary electric generating capability (capacity) to serve our 150,000 customers. The additional purchased capacity has been secured in a prudent manner, shielding customers from the potential for further impacts that could result from market volatility. The need for additional purchased capacity will decrease, but remain an essential need, as renewable projects are built and brought online over the next several years. CenterPoint Energy is committed to maintaining reliability for its southwestern Indiana electric customers.