EVANSVILLE –Indiana electric customers of CenterPoint Energy, Inc. (NYSE: CNP) will see a decrease in their electric bills beginning next month as a result of the company’s securitization pilot, which allows for the removal of the remaining value of its A.B. Brown coal plant assets from customer rates.

In January 2023, the Indiana Utility Regulatory Commission (IURC) approved a financing order for the coal retirement securitization bonds, which is expected to result in a total decrease to customers’ electric bills by an estimated $53 million when compared to traditional financing alternatives.

All Indiana electric customer classes – residential, small commercial, industrial – will realize savings. Residential customers using approximately 900 kWh per month are expected to see a nearly $5 bill credit per month on their bills. The credits from the securitization of A.B. Brown assets will more than offset the new securitization charge added to customers’ bills to pay for the securitization bonds.

In 2021, legislation was passed in Indiana allowing for a securitization pilot program to benefit CenterPoint Energy’s Indiana electric customers. The company advocated for the opportunity to demonstrate how this tool could save customers money over traditional utility financing.

“As we continue to execute our long-term electric generation transition plan, we are excited to implement this cost-effective strategy – a first-of-its-kind in the state of Indiana – to help reduce customers’ bills,” said Richard Leger, Senior Vice President, Indiana Electric. “Securitization financing assists us in our continued efforts to deliver safe and reliable service, while keeping customer savings a top priority.”

CenterPoint Energy plans to retire the A.B. Brown coal units 1 and 2 in October 2023 as part of its long-term electric generation transition plan. The remaining value of the coal plants and other qualified costs are financed through the issuance of these securitization bonds at a lower long-term interest rate.

While CenterPoint Energy is the first utility to use securitization financing in Indiana, this is an established practice that has saved utility customers millions of dollars in nearly 30 states. CenterPoint Energy will reinvest proceeds from the securitization bonds into its generation transition plan, including renewable resources such as wind- and solar-powered generation, both of which will be backed up by natural gas generation resources to maintain reliability.

For more information on CenterPoint Energy’s long-term electric generation transition plan, visit Centerpointenergy.com/smartenergyfuture.

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