Learn About CenterPoint Energy and How It Works

What CenterPoint Energy Is and How It Operates

CenterPoint Energy is one of the largest energy companies in the United States, serving millions of customers across multiple states. The company operates as an investor-owned utility, meaning it is publicly traded and regulated by state utility commissions rather than run by the government. CenterPoint Energy provides two main services: electricity distribution and natural gas distribution. As of 2024, the company serves approximately 7 million customers in Texas, Louisiana, Mississippi, Arkansas, Oklahoma, and Indiana. Understanding what CenterPoint Energy does and how it functions can help you better comprehend your energy bills and service options.

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The company's primary role is to deliver energy to homes and businesses through an extensive network of poles, wires, pipes, and equipment. CenterPoint Energy does not typically generate the electricity or produce the natural gas itself in most markets—instead, it purchases energy from producers and manages the infrastructure that transports it to your home. This distinction is important because in some areas, customers can choose their energy supplier while still receiving delivery services from CenterPoint Energy. The company maintains approximately 150,000 miles of distribution lines across its service territories, making it responsible for keeping power flowing and gas flowing through neighborhoods and communities.

CenterPoint Energy operates under the oversight of the Public Utility Commission in each state where it conducts business. These regulatory agencies review the company's rates, service quality standards, and operational practices to protect consumers. The company must file rate cases with regulators when it seeks to increase rates, and regulators examine whether the increases are justified based on costs and investments. This regulatory framework means that CenterPoint Energy cannot simply raise rates whenever it chooses—changes must be reviewed and approved by state authorities.

Practical takeaway: CenterPoint Energy is a utility company responsible for delivering electricity and natural gas to your location, not generating the energy itself. Its rates and practices are regulated by state utility commissions, so consumers have a formal process through which they can address concerns or seek information about rate changes.

Understanding Your Electricity Service Through CenterPoint Energy

In areas where CenterPoint Energy provides electricity, the company manages the distribution network that brings power from generating stations to homes and businesses. Electricity generated at power plants travels through high-voltage transmission lines to substations, where the voltage is reduced for local distribution. CenterPoint Energy's crews maintain the poles, transformers, wiring, and equipment in your neighborhood that carries electricity the final distance to your home. If you experience an outage, CenterPoint Energy's dispatch center monitors the situation and dispatches repair crews to restore service. In 2023, CenterPoint Energy restored power to an average of 99.91% of customers within 24 hours of outages in its service areas.

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Your electricity bill from CenterPoint Energy typically includes several components. The main charge is for the actual electricity you consumed, measured in kilowatt-hours (kWh). One kWh equals the energy used by a 1,000-watt device running for one hour. In addition to consumption charges, your bill includes delivery and infrastructure charges—fees for maintaining the poles, wires, transformers, and equipment that deliver power to your home. You may also see taxes, surcharges for specific programs, and miscellaneous fees. In some CenterPoint Energy service areas, customers also pay separate charges to the electric generation company that supplies the actual electricity.

CenterPoint Energy offers various rate schedules depending on whether you are a residential customer, small business, or large industrial customer. Residential customers typically have simple rate structures with one or two price tiers per kWh. Some residential customers may have the option to choose time-of-use rates, where electricity costs more during peak demand hours (usually afternoons and early evenings) and less during off-peak hours. This pricing structure encourages customers to shift energy use to cheaper times if their schedules allow. Large commercial and industrial customers have more complex rates designed to reflect their unique usage patterns.

Practical takeaway: Your CenterPoint Energy electricity bill includes charges for the power you consumed, the infrastructure maintaining the distribution network, taxes, and possibly surcharges. Understanding these components helps you interpret your bill and identify opportunities to manage your electricity use during peak pricing periods if such options exist in your area.

How Natural Gas Service Works Under CenterPoint Energy

Natural gas delivered by CenterPoint Energy comes from producing wells, often in states like Texas, Louisiana, and Oklahoma. The gas moves through large transmission pipelines operated by companies like Enbridge and Panhandle Eastern before reaching CenterPoint Energy's service territory. From major pipeline hubs, CenterPoint Energy's smaller distribution lines carry gas through neighborhoods and into homes and businesses where it is burned for heating, cooking, water heating, and appliance operation. The company maintains approximately 66,000 miles of natural gas distribution lines across its service areas. CenterPoint Energy's role is to own and maintain this delivery infrastructure and ensure safe, reliable gas service to customers.

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Natural gas bills work differently than electricity bills in important ways. Gas consumption is typically measured in therms rather than kilowatt-hours. One therm equals approximately 100,000 BTUs (British Thermal Units) of energy. Your usage varies seasonally because most natural gas use occurs during winter months when heating is needed. A typical household in a moderate climate might use 30 to 100 therms per month in winter and 5 to 15 therms per month in summer, primarily for water heating and cooking. CenterPoint Energy reads meters monthly or allows customers to submit self-readings through online portals. Some areas now have smart meters that report usage automatically to the utility.

CenterPoint Energy's natural gas bills include charges for the actual gas consumed, delivery fees for infrastructure maintenance and operation, and various surcharges. One notable component is the purchased gas adjustment (PGA), which allows the utility's rates to reflect fluctuations in the wholesale price of natural gas. When natural gas prices rise or fall on the open market, the PGA allows CenterPoint Energy to pass most of these changes directly to customers. This is different from electricity, where generation costs are often managed separately. Gas service has also become subject to increasing numbers of surcharges for pipeline safety improvements, system modernization, and regulatory compliance. Many CenterPoint Energy customers in Texas and Louisiana benefit from competitive natural gas supply markets, where they can choose which company supplies their gas while CenterPoint Energy continues to deliver it.

Practical takeaway: Natural gas bills include charges for consumption measured in therms, delivery infrastructure fees, and fluctuating wholesale gas costs passed through the PGA. Unlike electricity, you may have the option to choose your gas supplier while CenterPoint Energy handles delivery. Understanding seasonal variations in your usage helps you anticipate higher bills during winter months.

Managing Your CenterPoint Energy Account and Bill Payment Options

CenterPoint Energy provides multiple ways to manage your account, review your bill, and pay what you owe. The company's online customer portal allows you to view your current and historical bills, report outages, request service changes, and set up payment arrangements. To access the portal, you create an account at CenterPoint Energy's website using your account number and other identifying information. Through the online system, you can also enroll in automated payment options, which charge your bank account or credit card on a schedule you set. This eliminates the need to remember payment due dates and reduces the risk of late payments that incur additional fees.

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Payment options for your CenterPoint Energy bill include mail-in checks, online bill pay through your bank, automatic bank account withdrawal, credit or debit card payments (online or by phone), and in-person payments at authorized payment centers. Each payment method has different timing considerations. Mail-in payments should be sent at least a week before the due date to arrive on time. Online payments through CenterPoint Energy's website typically post within one business day. Automatic bank withdrawal usually occurs three to five days before the due date. When you make a payment, CenterPoint Energy applies it first to any past-due balance, then to current charges. If you overpay, the excess becomes a credit on your account that reduces future bills.

CenterPoint Energy also offers budget billing for customers who want predictable monthly payments. Under this program, the company calculates your average monthly bill based on the previous 12 months of usage, and you pay this fixed amount each month. After 12 months, the company reconciles your actual usage with what you paid. If you used more energy than anticipated, you owe the difference in a lump sum. If you used less, CenterPoint Energy credits the difference to your account. Budget billing works well for customers with stable income and usage patterns but may result in unexpected bills if your energy consumption changes significantly. The online portal also shows your current balance, usage