The U.S. Department of Energy has selected CenterPoint Energy for a $50 million grant to upgrade substation technology on the electric grid serving Greater Houston, the DOE and the utility announced Sept. 24, 2026. The award still depends on finalizing negotiations between CenterPoint and the DOE.
A first-of-its-kind substation upgrade
With the funding, CenterPoint will become one of the first utilities in the country to install grid-stabilizing technology from Siemens Energy. The technology can respond quickly to shifts in electricity demand and is meant to help keep service reliable for customers, according to the DOE and CenterPoint. The companies said the project is expected to strengthen reliability during periods of high demand and add capacity for current and future demand and economic growth. It is also expected to create more than 500 local jobs in construction and installation.
CenterPoint Executive Vice President Jason Ryan said the utility's mission is to build "the most resilient coastal grid in the nation" for its 2.9 million customers in the Greater Houston area, and called the DOE funding "historic for our region."
Funded through DOE's SPARK program
The grant was selected through the DOE's Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades program, known as SPARK. The program funds projects that modernize existing electrical infrastructure, part of federal energy policy aimed at helping utilities meet rising demand while lowering electricity costs for about 100 million Americans nationwide, according to the DOE.
DOE Assistant Secretary for the Office of Electricity Katie Jereza said the funding will help "power growth and dependable energy for the Houston area." Texas Public Utility Commissioner Kathleen Jackson said the investment will make "the entire grid stronger for Texans."
Company snapshot
CenterPoint Energy (NYSE: CNP) is the only investor-owned electric and gas utility based in Texas, serving more than 7 million metered customers across Indiana, Minnesota and Texas. As of June 30, 2026, the company owned about $48.3 billion in assets and employed roughly 8,800 people. CenterPoint and its predecessor companies have operated for more than 150 years.
