Rising demand
Electricity demand is rapidly rising in CenterPoint Energy’s Texas territory, setting the stage for a decade of investment that company officials expect to fuel earnings growth.
Utility officials told analysts Thursday that CenterPoint has connected more than 500 MW of data centers so far this year, and has also seen strong demand from the energy refining sector and the Port of Houston, which saw an 18% quarter-over-quarter increase in exports.
“Our capital investment plan of at least $65 billion is supported by some of the fastest growing demand for energy anywhere in the country,” Wells told analysts. “Importantly, we also have visibility into at least $10 billion of incremental capital investment opportunities over the course of the plan, particularly in Texas, given the dramatic growth the communities we serve continue to experience.”
CenterPoint serves electricity and gas to more than 7 million customers in Indiana, Minnesota, Ohio and Texas, with almost 3 million of those in the Houston area.
“Specifically in our Houston electric service territory, we forecast peak load demand to increase by 10 GW in 2031,” Wells said. “This forecast growth would represent a nearly 50% increase in peak demand over the next six years.”
“This level of demand will continue to support a strong investment profile,” Wells said.
“The greater Houston area is thriving, powered by what we believe is the most diverse set of growth drivers in the sector,” he added. “It is not relying on any single industry, and the results speak for themselves. This growth isn't aspirational. It's already here.”
Overall Houston throughput is up 9% year to date, Wells said. Industrial throughput is up 17% quarter over quarter and 11% year to date.
“This incredible growth provides a solid foundation for our earnings guidance,” Wells said. The utility has “strong conviction” in its ability to achieve non-GAAP earnings per share at the mid-to -high end of its 7%- to 9% annual growth guidance from 2026 through 2028.
