Annual mechanism helps support infrastructure investment for safety, reliability
HOUSTON – April 5, 2017 - CenterPoint Energy announced today that its natural gas distribution utility filed an application with the Arkansas Public Service Commission (APSC) for a $9.1 million Formula Rate Plan (FRP) adjustment. The FRP, a formula rate review mechanism authorized by Act 725 of 2015, is an annual streamlined review of a public utility’s rates to determine if adjustments are needed to recover costs related to additional invested capital and expenses without filing a full rate case.
“We continue to make significant investments to help ensure we have a modernized, technologically advanced natural gas system that will continue to meet the needs of our customers now and in the future,” said Walter Bryant, vice president of Gas Operations in Arkansas. “The FRP helps support these investments for system safety and reliability by reducing lag in a utility’s recovery of necessary investments and expenses. It also smooths out rate adjustments for customers by having smaller adjustments over time versus large adjustments from time to time.”
If approved, the net impact of the new rates will increase a residential customer’s bill that was $100.00 to $102.48.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. The company also owns a 54.1 percent limited partner interest in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp., which owns, operates and develops natural gas and crude oil infrastructure assets. With more than 7,700 employees, CenterPoint Energy and its predecessor companies have been in business for more than 140 years. For more information, visit the website at www.CenterPointEnergy.com.
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 future regulatory actions on the FRP adjustment application, and any other statements that are not historical facts are forward-looking statements. Each forwardlooking statement contained in this news release speaks only as of the date of this release.
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