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CenterPoint Energy's Commitment to Natural Gas Safety and Reliability

CenterPoint Energy, a major player in energy delivery, has recently taken significant steps to enhance the natural gas distribution system in Minnesota. On November 25, 2024, the company submitted a settlement agreement to the Minnesota Public Utilities Commission (PUC) as part of its ongoing efforts to ensure the safety and reliability of its services. This agreement stems from the 2023 rate case, aiming to adjust natural gas distribution fees for 2024 and 2025.

The settlement marks a collaborative achievement between CenterPoint Energy and numerous key stakeholders, including governmental bodies and utility advocacy groups, such as the Minnesota Department of Commerce and the Citizens Utility Board of Minnesota. The focus of this collaboration has been to develop a framework that prioritizes the needs of over 920,000 customers across more than 260 Minnesota communities.

Key Objectives of the Settlement

If approved, the proposed rate adjustments will pave the way for several crucial initiatives:

1. Enhancing System Safety: The agreement aims to facilitate ongoing maintenance and resilience upgrades to the gas distribution system, ensuring that customers receive reliable service, particularly during harsh winter months.
2. Promoting Low-Carbon Technologies: CenterPoint Energy emphasizes its commitment to sustainability by supporting the advancement of low- and zero-carbon technologies within its operational framework.
3. Infrastructure Investments: The proposed plan includes significant investments in infrastructure improvements, such as pipeline replacements and upgrades, ensuring compliance with federal regulations and improving service safety.
4. Addressing Growth: As natural gas demand grows, the adjustment allows the company to manage increased operational costs effectively and maintain high service standards.

A Focus on Customer Safety and Reliability

Brad Steber, Vice President of Minnesota Gas at CenterPoint, highlighted the company's dedication to a collaborative approach that optimally balances the interests of all parties involved. According to Steber, this agreement is pivotal in planning for both current and future energy requirements, ensuring that Minnesota residents have access to safe, sufficient energy resources, particularly during extreme weather conditions.

Meaningful Investments Planned

In light of the settlement, CenterPoint Energy has laid out a comprehensive investment strategy aimed at reinforcing the security and integrity of its natural gas system. Planned initiatives include:

• - Modern Tech Deployment: Upgrading gas lines with innovative construction methods and materials to enhance durability and safety.
• - Improved Access: Relocating natural gas meters to ensure better access during emergencies and increasing safety measures for residences.
• - Smart Meter Implementation: The introduction of smart meters that offer advanced safety features and improve communication in case of system issues.
• - Leak Detection Enhancements: Employing high-tech methane detection vehicles to monitor emissions and expedite leak repairs, optimizing environmental safety.
• - Innovative Repair Techniques: Utilizing cross-compression technology during repairs to minimize natural gas emissions into the atmosphere.

Impacts of Rate Adjustments

The proposed rate adjustments, detailed in the settlement, suggest a 4.7% increase, translating to approximately $60.8 million for 2024, followed by a 3.1% increase of about $42.7 million for 2025. For an average residential customer, this means a projected monthly bill increase of $2.70 in 2024 and an additional $1.27 in 2025.

While the PUC reviews the settlement, interim rates have already taken effect, adding roughly $4 to residential bills starting January 2024. Adjustments will be recalibrated according to the final decisions, and any excess interim payments will be refunded accordingly. CenterPoint Energy remains committed to providing various assistance programs for customers facing financial difficulties, ensuring support is available to those who need it.

Conclusion

CenterPoint Energy's ongoing investment and innovation initiatives reflect its dedication to enhancing natural gas distribution across Minnesota, focusing on safety, reliability, and sustainability. With the proposed agreements and infrastructure improvements, the company aims to meet current and future energy demands while ensuring that safety remains a top priority for all customers.

For additional information regarding the rate case, stakeholders can visit CenterPointEnergy.com/RateCase, which outlines further details on the settlement, interim rates, and customer support programs.