
David J. Lesar
Chief Executive Officer

Jason P. Wells
President & Chief Operating Officer
Leadership Message
Dear Stakeholders,
At CenterPoint Energy, our efforts to providing cleaner, safer and more reliable energy to the communities we serve are foundational to our premium value proposition. Two of the three pillars of our value proposition directly underpin these efforts, providing sustainable, resilient and affordable customer service and supporting a sustainable positive impact on our environment and communities, and directly contribute to our third pillar – sustainable growth for shareholders.
We believe that our sustainability alignment flows through our organization, including our financing efforts:
- In early 2023, we published our first sustainable financing framework, which sets the foundation for CenterPoint Energy to access financing to invest in cleaner and socially focused initiatives of the company.
- We issued our first debt offering under our sustainability framework by issuing a series of green bonds for our Houston Electric business in early 2023. The proceeds are used to finance our investments in renewable interconnects and other green initiatives over the next two years.
- Separately, we issued a first-of-its-kind securitization debt offering in Indiana to support the closure of the A.B. Brown 1 and 2 coal facilities in 2023. Based on an average residential customer usage of 899 kWh, residential customers will receive a bill credit of nearly $5 a month. This securitization aligns with our efforts to transition to a cleaner generation profile for our customers and supports our Net Zero goals.
Carbon Reduction and Energy Transition Efforts
Our carbon strategy is integral to our efforts to create long-term, sustainable positive environmental impact for our customers, communities and shareholders.
In 2021, we announced our ambitious company-wide Net Zero goals for our Scope 1 (direct) and Scope 2 (indirect) greenhouse gas (GHG) emissions by 2035. We also announced a Scope 3 goal to help our residential and commercial customers reduce GHG emissions attributable to their end use of natural gas by 20-30% by 2035 from a 2021 baseline. We continue to believe that we can achieve these goals through the meaningful actions we are taking, including a number of actions discussed below.
In April 2023, we announced our Integrated Resource Plan preferred portfolio, which includes further investment in renewable generation and a complete exit of operating coal generation by the end of 2027. The proposed plan is expected to save customers nearly $80 million in the aggregate and reduce carbon emissions from our electric generation fleet by more than 95% over next 20 years while maintaining reliable service.
And we took another significant step toward our carbon emissions reduction goals this year with the submission of an innovative five-year plan under Minnesota’s Natural Gas Innovation Act. CenterPoint Energy’s innovation plan is expected to deliver significant benefits to Minnesota over the lifetime of the projects, including reducing an estimated 1.2 million tons of carbon emissions, creating an estimated 3,000 full-time equivalent jobs, and leveraging $17 million or more in federal clean energy incentives and support for the state.
Also in Minnesota, we completed a groundbreaking installation of a carbon-capture technology unit, CarbinX™, developed by CleanO2, at the Radisson Blu Mall of America in April 2023. We are pleased to offer our business customers the opportunity to deploy this innovative technology that can help decrease their carbon footprint while reducing their energy usage and heating bills.
Succession Planning
Driving a robust succession planning and executive development process has been a key focus area for our company and Board of Directors. We were pleased to announce Jason P. Wells’ promotion to the role of President and Chief Operating Officer, which was effective January 1, 2023, as well as the appointment of Christopher Foster as Executive Vice President and Chief Financial Officer in early 2023. With a proven track record in finance and operations and deep industry experience, Chris is an exceptional addition to our leadership team.
Community Engagement
Our company maintains a strong focus on the communities we serve. In 2022, the CenterPoint Energy Foundation contributed $14.8 million to support nonprofit organizations and charitable causes that advance our giving pillars of community vitality and education. Our employee volunteers also donated 86,000 hours to nonprofit organizations during this timeframe. Also in 2022, our total diverse supplier spend increased to $620 million as we continue to develop strong working relationships with diverse suppliers and improve business opportunities.
Voluntary Reporting
In 2022, we published our first Task Force on Climate-related Financial Disclosures Report to enhance the disclosures around the progress of our energy transition. Please explore our 2023 Sustainability Report and ESG Data Center to discover how we’re managing our ESG priorities.
We are very proud of our accomplishments this year in advancing our energy transition investments and strengthening the communities we serve.
Thank you for your ongoing support and interest in our company.

David J. Lesar
Chief Executive Officer

Jason P. Wells
President & Chief Operating Officer
September 14, 2023