Evansville, In /PRNewswire/ - CenterPoint Energy, Inc. (NYSE: CNP) today announced its Indiana-based electric utility business, CenterPoint Energy Indiana South, received 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 PPAs consist of 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. The 335 MWs from both developments are expected to supply enough power to meet the needs of more than 70,000 homes or 12,000 commercial customers each year.
"The additional energy obtained through these PPAs will further CenterPoint Energy's Smart Energy Future strategy and continue our efforts to bring clean energy to the communities we serve," said Steve Greenley, Senior Vice President, Generation Development for CenterPoint Energy. "We appreciate the continued efforts of Oriden and Origis Energy as they bring these projects to fruition and thank their leadership teams as well as the community partners in Vermillion and Knox Counties."
The PPAs represent the next component of the company's Smart Energy Future Plan to support stakeholder sustainability goals and implement a cost-effective, well-balanced energy mix for its 150,000 customers in southwest Indiana as outlined in its Integrated Resource Plan (IRP). CenterPoint Energy is focused on achieving its net-zero goals for its Scope 1 greenhouse gas emissions by 2035 by building out its renewable resources.
CenterPoint Energy's IRP includes a plan for a portfolio with 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. In addition to the PPAs, the company previously received approval to acquire a solar array in Posey County and an additional PPA in Warrick County. CenterPoint Energy is awaiting an order on the application requesting approval to construct two natural gas combustion turbines to replace portions of its existing coal-fired generation fleet.
CenterPoint Energy delivers electricity to approximately 150,000 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, including number of customers served, 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; (8) the Company's ability to fund and invest planned capital, and timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment, including those related to Indiana Electric's generation transition plan as part of its more recent IRP; (9) continued disruptions to the global supply chain and increases in commodity prices; (9) legislative decisions, including tax and developments related to the environment such as global climate change, air emissions, carbon, waste water discharges and the handling of coal combustion residuals, among others, and CenterPoint Energy's Net Zero and carbon emissions reduction goals; (10) the Company's ability to execute on its initiatives, targets and goals, including its Net Zero and carbon emissions reduction goals and operations and maintenance goals and (11) other factors, risks and uncertainties discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 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 Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. As of March 31, 2022, the company owned approximately $35 billion in assets. With approximately 9,400 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 a full-service renewable energy developer funded by Mitsubishi Power Americas, Inc., an industry leader in power generation, renewables and energy storage solutions. For more information, please visit www.oridenpower.com.
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 US. Visit us at: www.OrigisEnergy.com.