CenterPoint has reported the conclusion of five rate cases over the last two years. The outcomes of those cases affects 85 percent of its rate base across the company’s multi-state service territories.
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CenterPoint Energy, the Houston-based gas and electric utility company, has reported both quarterly and annual revenue increases, as well as additional capital expenditures.
In documents released to investment analysts on Feb. 19 the company reported net income of $264 million for the quarter ending Dec. 31, 2025. That represents an approximately 6.5 percent increase from the $248 million the company reported for the same quarter in 2024.
For the 2025 calendar year, CenterPoint reported $1.052 billion in net income, as compared to $1.019 billion during in 2024. That’s a 3.2 percent rise.
In addition, CenterPoint reported a $500 million increase in its 10-year capital spending plans and now plans to spend $65.5 billion from 2026 through 2035. The additional expenditure will finance the construction of an additional 765 KV transmission line to serve the Houston area.
The company also has identified more than $10 billion in additional spending “opportunities” that may materialize through 2035.
Driving much of these new expenditures is the need to keep up with an 11 percent increase in rate base through 2030, according to the company. However, the growing rate base also will help keep overall rates relatively flat in the comping years because of economies of scale, according to CenterPoint.
“Previously, we shared a projected 50 percent growth of peak electric load in Greater Houston by 2031 — today, we’re updating our projections that we will deliver 10 gigawatts of new load by the end of 2029 — two full years ahead of our previous forecasts, said CenterPoint CEO Jason Wells.
Rate Outcomes
CenterPoint has reported the conclusion of five rate cases over the last two years. The outcomes of those cases will affect 85 percent of its rate base across the company’s multi-state service territories. The company also reported that revenue from interim rate proceedings (with relatively less regulatory oversight) funds 85 percent of its systemwide capital investments. In Texas, the company expects to make interim rate filings in the coming months under the state’s Transmission Cost of Service and Distribution Cost of Service programs. More details of CenterPoint rate outcomes include:
- A final order in a Houston Electric rate case (Docket No. 56211) resulted in a $47 million revenue cut for CenterPoint.
- A final order for CenterPoint’s Texas gas holdings resulted in a $5 million increase.
- A $150 million tax liability appears to have been slashed to zero because a change in federal tax guidance. Officials said this reduction should flow through to customers and affect monthly rates.
Capital Spending
For the entirety of 2025, CenterPoint spent $5.4 billion on capital projects, including $3.7 billion for its electric holdings and $1.7 billion on its gas holdings. In 2026, CenterPoint expects to increase its annual capital spending to $6.8 billion, and for the years 2026 through 2030, its projected capital spending will total $33.1 billion. More details of CenterPoint’s capital spending include:
- The company plans on spending $1.6 billion on electric transmission in 2026, $1.7 billion in 2027, and a combined total of $18.8 billion from 2026 to 2035.
- The company plans on spending $2.5 billion on electric distribution in 2026, $2.7 billion in 2027, and a combined total of $22.6 billion from 2026 to 2035.
- The company plans on spending $2.3 billion on gas utility holdings in 2026, $2.2 billion in 2027, and a combined total of $19.2 billion from 2026 to 2035.
- For CenterPoint Houston Electric, the company will spend a projected $4 billion on capital projects in 2026, $4.4 billion in 2027 and a projected $41.9 billion from 2026 through 2035.
- For Texas Gas, the company will spend $800 million on capital projects in 2026 and 2027 and a projected $7.6 billion from 2026 through 2035.
Demand Increases
Increases in the interconnection queues for large electricity users such as data centers continue to increase at unparalleled pace, according to the company. Load demand will more than double over the next decade. More details of CenterPoint’s expected demand increases include:
- Large loads served by CenterPoint historically have been near the Ship Channel area; however, the company now sees many of the large new load data center projects entering service in different areas of its Houston Electric service territory.
- The company reports 2.5 gigawatts of projects in construction phase, and 5 GW of firmly committed projects that will be energized by 2028.
Greater Houston Resiliency Initiative
The company said system improvements made through its Greater Houston Resiliency Initiative have resulted in a reduction outage minutes of 100 million outage minutes in 2025, as compared to 2024. The company also reported a 50 percent reduction in vegetation related outages, as compared to 2024.