CenterPoint Energy on Monday issued an all-source request for proposals for new generation, demand-side resources “and other innovative solutions” to supply 150,000 customers in southwestern Indiana.
The RFP includes minimum capacity requirements for wind, solar and batteries of 50 MW, 50 MW and 25 MW, respectively. The utility will consider coal, natural gas, hydrogen or nuclear resources as well, but it did not publish a minimum capacity for those.
"This RFP allows us to explore a wide range of technologies that can contribute to our long-term generation strategy,” Shane Bradford, CenterPoint's vice president, Indiana Electric, said in a statement. “We are also building on the insights gained from previous RFPs to better meet the needs of our customers and adapt to ever-evolving market conditions.”
CenterPoint is seeking resources capable of providing fully accredited capacity no later than March 1, 2028. A notice of intent to respond to the RFP is due Aug. 28, and proposals are due Oct. 8. The utility will consider meeting some or all of its resource requirements through short, medium and/or long-term power purchase agreements, but it “will only consider PPAs that have a term of five years or greater.”
The RFP supports CenterPoint’s current integrated resource plan, though the utility said it will submit an updated IRP to the Indiana Utility Regulatory Commission by Nov. 1, 2025.
CenterPoint owns and operates the 90-MW coal-fired F.B. Culley 2 generating unit, and its 2022/2023 IRP calls for retiring the resource in 2025. The utility said that it will consider generator replacement bids that can reuse the F.B. Culley 2 interconnection agreement with the Midcontinent Independent System Operator for up to 90 MW.
“All technology types are welcome for the generator replacement bids,” according to the RFP.
CenterPoint said it prefers bids for the F.B. Culley 2 site to be purchase and sale agreements, with asset purchases specifically preferred. Power purchase agreements “will be considered but not preferred,” the utility said. “CenterPoint desires to be the owner of the new generating facility and retain the ability to direct the performance of the asset.”
The MISO territory faces a host of challenges, including less predictable weather, less predictable resource outages and increasing electric load, according to CenterPoint’s IRP.
“To maintain reliability with a changing resource portfolio and the risks MISO faces there is an increased importance of ensuring there are adequate attributes available from the fleet such as ramp capability, long duration energy at high output, and fuel assurance,” the utility said in its long-term plan.
"As we continue to transition our electric generation resources, we are focused on diversifying our energy portfolio to help us to continue delivering safe, reliable and cost-effective service to our customers," Bradford said.
