| Market Capitalization (Millions $) |
26,112 |
| Shares
Outstanding (Millions) |
659 |
| Employees |
8,794 |
| Revenues (TTM) (Millions $) |
9,412 |
| Net Income (TTM) (Millions $) |
1,071 |
| Cash Flow (TTM) (Millions $) |
-603 |
| Capital Exp. (TTM) (Millions $) |
5,030 |
Business Description
CenterPoint Energy Inc. Overview
Business Structure
CenterPoint Energy Inc. is a public utility holding company based in the United States. The company primarily operates through a range of subsidiaries responsible for the transmission and distribution of electricity and natural gas. CenterPoint’s major operating subsidiaries include:
1. CenterPoint Energy Houston Electric, LLC (CenterPoint Houston): This subsidiary is involved in the electric transmission and distribution business across a 5,000-square mile area on the Texas Gulf Coast, including the city of Houston. It handles planning, construction, operation, and maintenance of the electric transmission and distribution systems.
2. CenterPoint Energy Resources Corp. (CERC Corp.): This entity manages natural gas distribution systems across six states in the U.S. CERC Corp. and its subsidiaries also offer variable and fixed-price physical natural gas supplies primarily to industrial and commercial customers, as well as utility companies. CERC Corp. has a significant interest (approximately 58.3%) in Enable Midstream Partners, LP (Enable), a joint partnership with OGE Energy Corp. that focuses on the infrastructure of natural gas and crude oil.
Business Segments
CenterPoint Energy operates through five primary reportable business segments:
- Electric Transmission & Distribution: Involves the operation and maintenance of electric transmission facilities.
- Natural Gas Distribution: Covers the distribution of natural gas across various states.
- Energy Services: Offers services that support the operation of electric and gas utilities.
- Midstream Investments: Related to investments in energy-related infrastructure and services, including the partnership with Enable.
- Other Operations: Encompasses various support and ancillary services.
Regulatory Environment
The company operates primarily within the Electric Reliability Council of Texas (ERCOT). The ERCOT market is unique in that it is not a centrally dispatchable power pool, meaning electricity generation is contracted and managed bilaterally among market participants. The ERCOT Independent System Operator (ERCOT ISO) oversees the regional power supplys reliability and operational integrity, ensuring effective electricity delivery without directly procuring energy.
Customer Base
CenterPoint Houston services various customers, including municipalities, electric cooperatives, and approximately 43 retail electric providers, primarily within the Houston-Galveston metropolitan area. These retail electric providers are regulated and licensed by the Texas Utility Commission, ensuring they meet creditworthiness and operational standards.
Competitive Landscape
In Houston, CenterPoint Houston is the sole provider of electric transmission and distribution services; other companies would need to secure a certificate of convenience and necessity from the Texas Utility Commission to enter this market. CenterPoint faces competition in its natural gas distribution segment from alternative energy sources and other gas distributors. The capacity for intrastate pipelines and marketers to bypass CenterPoints facilities presents a competitive challenge in terms of market access.
In addition, the natural gas transportation and gathering business competes with other interstate and intrastate pipeline companies through pricing, terms of service, and reliability. The competition extends to alternative energy sources such as electricity and other fossil fuels.
Conclusion
CenterPoint Energy Inc. plays a crucial role in energy distribution in Texas, focusing on reliability and customer service in both the electric and natural gas markets. Through its various subsidiaries, the company is positioned to navigate the competitive and regulatory landscape while serving a diverse customer base across several states.
Company Address: 1111 Louisiana Houston 77002 TX
Company Phone Number: 207-1111 Stock Exchange / Ticker: NYSE CNP
|
0.49% 
-0.07 %