Reliability Cost and Revenue Adjustment
The recently approved Reliability Cost and Revenue Adjustment (RCRA) took effect Nov. 30, 2023. As a result, a residential customer using 1,000 kWh will see an increase of approximately $16.55 on their monthly bill. As we transition our electric generation portfolio, additional capacity is required to meet our customers' reliability needs. It's essential we're able to continue to provide consistent and reliable power delivery.
Updated annually, the RCRA reconciles reliability costs and revenues with those costs and revenues already included in base rates. As the company continues its long-term electric generation transition and remains in compliance, CenterPoint Energy was required by EPA regulations to shut down the A.B. Brown coal-fired generation units this past October. As construction continues on our approved renewable projects and natural gas combustion turbines, CenterPoint Energy is required by the Midcontinent Independent System Operator (MISO) to secure the necessary electric generating capability (capacity) to serve our 150,000 customers. The additional purchased capacity has been secured in a prudent manner, shielding customers from the potential for further impacts that could result from market volatility. The need for additional purchased capacity will decrease, but remain an essential need, as renewable projects are built and brought online over the next several years. CenterPoint Energy is committed to maintaining reliability for its southwestern Indiana electric customers.
