CenterPoint Energy 2012 Annual Report Download - page 12

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Electric Transmission
& Distribution
A slight decrease in operating income was
driven by a return to more normal weather
following record heat and rate case results the
previous year. Operating income for our electric
transmission and distribution business was
$639 million, consisting of $492 million from
the electric utility and $147 million related to
transition and system restoration bonds. In 2011,
operating income for the electric utility was
$623 million, consisting of $496 million from
the electric utility and $127 million related
to transition and system restoration bonds.
The steady growth pattern continued with the
addition of more than 44,000 customers.
Value from Technology
Last summer, we completed the deployment
of more than 2 million smart meters through-
out our Houston-area service territory,
making CenterPoint Energy one of the first
large American utilities to complete its
advanced metering system. Smart meters
have allowed us to automate millions of
service orders and monthly meter readings,
vastly reducing field visits and the related
vehicle carbon emissions.
Smart meters also enabled us to enhance
customer service by oering same-day
service for move-ins and move-outs, as well
as one-hour reconnection service, 24 hours
a day. The system allows retail electric
providers to oer new products and services
in the Texas competitive retail market, such
as prepaid electric service and time-of-use
rates. In 2013, we will give customers the
option to receive an email, text message or
phone call when power is out in their area
and once it has been restored.
We continued to modernize our electric
infrastructure and expect to deploy
intelligent grid technology to 12 percent of
our service territory in 2014. In conjunction
with smart meters, the intelligent grid will
more accurately identify outage locations
and improve service restoration. In areas
where automation is in place, we have seen
asignificant decrease in overall outage
duration. We are installing these devices
innew construction and plan to complete
the entire service territory over the
nextdecade.
Industry-leading Vision
We took an industry leadership role by
participating with the Department of
Homeland Security and the Electric Power
Research Institute to install a prototype
extra-high voltage transformer. A typical
substation transformer of this type takes
12–24 months to replace, but the prototype
was transported and operational in only
fivedays. We also received the Edison
Electric Institute’s 2012 Emergency
Assistance Awardfor helping fellow
utilities restore power following major
storms, including Hurricane Sandy.
10
Q&A
Tracy Bridge, Senior Vice President and
Division President, Electric Operations
Q What is the vision for the intelligent grid, and
how will it improve service reliability?
A When fully deployed, the intelligent grid
willhelp us better manage our electric
infrastructure and improve reliability. In the
event of a power outage, our state-of-the-
art distribution management system will be
capable of automatically rerouting power
sothat the least number of customers are
impacted. The grid’s ability to better pinpoint
trouble will also allow our field crews to
proceed directly to the aected area without
the need to search for the trouble spot.
Q How do customers benefit from
smarttechnologies?
A With the deployment of smart meters
completed in 2012, customers can better
monitor and manage electric use. Because
we can now complete routine service orders
remotely, consumers can relocate or switch
retail electric providers more quickly. Since
mid-2009, more than 5 million service orders
have been automated, and today a typical
order is completed in less than 30 minutes.
And retail electric providers can oer new
products such as pre-paid service, time-of-
use rates or energy analysis tools.
Q Are any new capital projects planned to
address future growth?
A In 2012, we invested $599 million in capital
projects, and we plan to invest $720 million
in 2013. We are forecasting an increase in
capital projects for distribution, substation
and transmission upgrades. The greater
Houston area continues to be a thriving
economic center with customer growth
projected at nearly 2percent per year.
VALUE from VISION // CENTERPOINT ENERGY 2012 ANNUAL REPORT