CenterPoint Energy 2010 Annual Report Download - page 8

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We received one of only six maximum
grants for $200 million awarded by the
U.S. Department of Energy for smart
meter and intelligent grid initiatives.
Giving Our Customers the Intelligence
to Make Informed Decisions
Our electric transmission and distribution
business had a strong year, marked by
growth of nearly 28,000 customers and
increased usage partly due to favorable
weather. Operating income for 2010 was
$567 million, consisting of $427 million
from the electric utility and $140 million
related to transition and system restoration
bonds. This compares to $545 million
of operating income in 2009, including
$414 million from the electric utility and
$131 million related to transition and
system restoration bonds.
We also made major strides in our
long-term plan to implement smart
meters and intelligent grid technologies,
both of which are partially funded by
grants from the U.S. Department of
Energy. The company has now installed
more than 1 million smart meters and
associated communications infrastructure
and met all Texas retail market
requirements. By automating routine
transactions, these new meters eliminated
more than 600,000 service visits since
2009. This advanced system will promote
greater energy conservation and enable
Houston-area electric consumers the
ability to better monitor and manage
their electric use. We are on schedule
to complete the installation of smart
meters system-wide in mid-2012.
We began our intelligent grid initiative
in central Houston in 2010, and this
$115 million project is scheduled to
be completed in 2013. The new system
features power line and substation
automation and sensor technologies
that combine with smart meters to
remotely detect and identify power outage
types and locations. The new intelligent
grid will be able to self-heal by rerouting
power around problems to minimize
service disruptions. This will result in
fewer and shorter outages, while improving
customer service and allowing us to use
our workforce more effectively.
In 2010, the Electric Reliability Council
of Texas, the state grid operator, endorsed
a $200 million transmission project to
improve power flow in the state. We
expect to present the project to the
Public Utility Commission of Texas in
the summer of 2011 and, if approved,
begin construction in early 2013.
Continuing our support of energy
efficiency, we are working with Ford and
GM to promote increased use of electric
vehicles. We also had our Low Income
Home Energy Assistance Program funding
increased by 12 percent and received the
U.S. Environmental Protection Agency’s
ENERGY STAR Sustained Excellence
Award for our new home construction
program for the ninth consecutive year.
ELEC TRIC TRANSMISSION & DISTRIBUTION
$200 MILLION
6