CenterPoint Energy proposes ending Indiana coal use by 2027, pivoting more to natural gas/renewables combo

Under its newest Integrated Resource Plan (IRP), released this week, CenterPoint Energy of Indiana pledged to end coal use by 2027 and instead invest further into renewable energy sources backed by natural gas-fired generation.

“Our recommended mix of renewable and natural gas resources is expected to maintain the ability to turn on generating resources during times of greatest demand supporting reliability and continuing our strategy of providing cleaner electricity that meets customers’ future energy needs,” Richard Leger, senior vice president of CenterPoint’s Indiana Electric, said.

IRPs like this are submitted every three years to the Indiana Utility Regulatory Commission (IURC), drawing from analyses of energy needs, public stakeholder input, and other factors to provide forecasts 20 years out. In this case, CenterPoint noted the changes will be positive for its 150,000 customers of southwestern Indiana, saving them nearly $80 million in the aggregate while also bringing the company into compliance with the more stringent, recently enacted capacity requirements laid out by the Midcontinent Independent System Operator (MISO).

As a result of proposed updates, by ending coal usage as of 2027, CenterPoint could reduce carbon emissions from its electric generation fleet by more than 95 percent over the next two decades. This is because coal-based electricity currently makes up 85 percent of CenterPoint’s generation. By 2030, though, it expects to be able to generate more than 80 percent of its electricity from solar and wind sources and use natural gas to provide the remainder.

“We are confident the proposed portfolio will meet the expectations of our customers and deliver on our goal to provide a cost-effective, well-balanced energy mix,” Leger said. “These continued investments in our generation transition plan will allow customers to benefit in the near term and leaves room for flexibility as the future of electric generation continues to evolve.”

Plans currently call for the addition of 200 MW of wind and 200 MW of solar by 2030, with another 400 MW of wind resources possible by 2032. The last remaining coal unit operated by CenterPoint Energy, the F.B. Culley 3, will be converted to natural gas by 2027, so its 270 MW capacity will not be sacrificed. Further, the IURC previously granted approval for two new natural gas combustion turbines to be built for the company, upping its capacity another 460 MW.