CenterPoint Energy has reached a settlement agreement on its 2026 to 2028 Systemwide Resiliency Plan (SRP) to bolster Houston’s electric system against extreme weather threats and future hazards.
Pending review and approval by the Public Utility Commission of Texas (PUCT), the SRP marks “largest single grid resiliency investment” in the company’s history.
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It aims to decrease storm-related outage impacts by 1 billion minutes for its 2.8 million customers by 2029.
CenterPoint’s SRP for 2026 to 2028 aims to build upon the successes of the initial phases of the Greater Houston Resiliency Initiative (GHRI).
The plan enhances the company’s ability to manage the effects of extreme weather conditions.
This settlement agreement is the result of negotiations with intervening parties after CenterPoint submitted its enhanced System Resilience Plan (SRP) to the Public Utility Commission of Texas (PUCT) in January 2025.
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By GlobalDataThe agreement outlines a revised investment of more than $3bn into CenterPoint’s electric distribution infrastructure.
It includes the postponement of more than $240m in SRP costs until the latter half of 2029, mitigating the financial impact on customers by distributing the costs over four years instead of three.
Once approved, the SRP work will be completed within the 2026 to 2028 timeframe, even though some cost recovery will be delayed until 2029.
CenterPoint is also planning to invest almost $2bn in its electric transmission system.
This investment involves rebuilding or upgrading more than 2,200 structures to enhance their resilience against extreme weather conditions.
Subject to approval from the PUCT, CenterPoint’s investment in the electric distribution system is projected to add $1.40 per month to the average residential customer’s bill each year from 2026 to 2028. A final $0.60 per month will be added by 2030 to mitigate the impact on bills in the preceding years.
CenterPoint’s SRP outlines investments to benefit customers across its 12-county service area, with a particular focus on those in higher-risk regions.
Every line serving the largest number of customers will be equipped with automation devices capable of self-healing, minimising the impact of outages.
130,000 distribution poles will be either newly installed, replaced or reinforced to be more storm-resistant, with ratings of 110mph and 132mph.
CenterPoint will also implement a three-year cycle for vegetation management across transmission and distribution lines, ensuring that all power lines are cleared of hazardous vegetation every three years.
More than 50% of CenterPoint’s system will be transitioned underground to enhance resiliency, and 20,150 spans of underground cables will be upgraded to decrease the frequency and impact of outages.
These efforts collectively aim to bolster the reliability and resilience of the power supply for all customers.
CenterPoint Energy CEO and president Jason Wells stated: “Following constructive discussions with the commission and intervening parties, this plan represents a landmark investment and suite of resiliency actions that will provide customers with clear benefits now and in the future.”
