CenterPoint Energy 2013 Annual Report Download - page 12

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ON POINT CenterPoint Energy  Annual Report
 was a solid year for our electric transmission and distribution
business. Steady growth in our service territory continued, with the
addition of more than , metered customers. Operating
income was  million, consisting of  million from the
electric utility and  million related to transition and system
restoration bonds. This compares with operating income of
million in , with  million coming from the electric
utility and  million from transition and system restoration bonds.
Last year, we completed installation of intelligent grid infrastructure that serves
approximately , of our . million customers. The intelligent grid is a collection
of sensors and switches installed on power lines, controlled by computers that
automatically monitor and manage the flow of electricity on a distribution network.
Inareas where the new infrastructure is in place, we have reduced overall customer
outage minutes by  percent. We plan to deploy this technology throughout our
system, and we estimate completion within the next  years.
We’re continuing to make substantial investments in response to robust economic
growth in the Houston area. We began construction of several new substations, most
notably, one near the Houston Ship Channel that will support significant industrial load
growth. We anticipate completion by mid-. In , we expect to place in service
amajor transmission system upgrade in the Freeport, Texas, area. It will enhance
reliability and provide storm-hardening benefits, which are important given Freeport’s
close proximity to the Gulf of Mexico.
We currently have nine high-voltage transmission lines importing electricity to the
region, and last year we submitted a proposal to the Electric Reliability Council of Texas
to increase our import capacity to meet growing demand. Based on our load forecast,
this additional capacity will be needed no later than the summer of .
The company is also preparing for changes in the workforce, investing in hiring and
employee development. National labor forecasts suggest that – percent of the
utility workforce will be eligible for retirement within the next two to five years. In ,
we increased hiring by more than  percent in many critical job areas, and we are
creating new training programs to develop and enhance employee skillsets and foster
knowledge transfer.
ELECTRIC TRANSMISSION
& DISTRIBUTION
Industry Leadership
We won industry excellence awards from
theSoutheastern Electric Exchange and the
Electric Power Research Institute for our
industry-leading role in a prototype extra-
high voltage transformer installation drill.
Atypical substation transformer of this
typetakes - months to replace, but the
prototype was transported and operational
in only five days. Functioning for over a year,
the prototype demonstrates the potential
forrapid recovery from large-scale outages.
Electric Infrastructure Investment
To meet growing electric demand, we
continue to make substantial investments in
electric infrastructure including high-voltage
transmission power lines and substations.
A new substation near the Houston Ship
Channel will support significant industrial
load growth, and new equipment in north
Houston will serve the planned Exxon Mobil
campus and surrounding development.
Emergency Preparedness
The annual Hurricane Workshop, presented
in partnership with Harris County and the
city of Houston, prepares residents for
hurricane season through presentations,
interactive exhibits, hurricane forecasting
and more. The free workshop is the largest
ofits kind in the nation with more than
,attendees each year.
Energy Insight Center
At our Energy Insight Center, we
demonstrate intelligent grid technology
andthe future of electricity. We’ve hosted
elected ocials, regulators and other utility
companies from every continent except
Antarctica. Visitors see demonstrations of
the intelligent grid rerouting power during
anoutage, our Power Alert Service, smart
appliances and more.
Intelligent Grid
In conjunction with smart meters, the
intelligent grid more accurately identifies
outage locations and improves service
restoration. In areas where grid automation
is in place, we have seen a  percent
decrease in customer outage minutes.
Smart Meters
Smart meters have enabled us to complete
nearly  million service orders electronically,
saving , gallons of fuel, avoiding
, metric tons of CO emissions and
saving customers more than  million in
fees formerly associated with manually
carrying out those orders.
POINT OF SERVICE
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