CenterPoint, NVIDIA and Palantir have formed Chain Reaction. Photo via Getty Images

Houston-based utility company CenterPoint Energy is one of the founding partners of a new AI infrastructure initiative called Chain Reaction.

Software companies NVIDIA and Palantir have joined CenterPoint in forming Chain Reaction, which is aimed at speeding up AI buildouts for energy producers and distributors, data centers and infrastructure builders. Among the initiative’s goals are to stabilize and expand the power grid to meet growing demand from data centers, and to design and develop large data centers that can support AI activity.

“The energy infrastructure buildout is the industrial challenge of our generation,” Tristan Gruska, Palantir’s head of energy and infrastructure, says in a news release. “But the software that the sector relies on was not built for this moment. We have spent years quietly deploying systems that keep power plants running and grids reliable. Chain Reaction is the result of building from the ground up for the demands of AI.”

CenterPoint serves about 7 million customers in Texas, Indiana, Minnesota and Ohio. After Hurricane Beryl struck Houston in July 2024, CenterPoint committed to building a resilient power grid for the region and chose Palantir as its “software backbone.”

“Never before have technology and energy been so intertwined in determining the future course of American innovation, commercial growth, and economic security,” Jason Wells, chairman, president and CEO of CenterPoint, added in the release.

In November, the utility company got the go-ahead from the Public Utility Commission of Texas for a $2.9 billion upgrade of its Houston-area power grid. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

A month earlier, CenterPoint launched a $65 billion, 10-year capital improvement plan to support rising demand for power across all of its service territories.
CenterPoint customers in the Houston area will pay an extra $1 a month to cover costs of the recently approved $2.9 billion resiliency plan starting next year. Photo via centerpointenergy.com

CenterPoint gets go-ahead for $2.9B upgrade of Houston grid

grid resiliency

Texas utility regulators have given the green light for Houston-based CenterPoint Energy to spend $2.9 billion on strengthening its Houston-area electric grid to better withstand extreme weather.

The cost of the plan is nearly $3 billion below what CenterPoint initially proposed to the Public Utility Commission of Texas.

In early 2025, CenterPoint unveiled a $5.75 billion plan to upgrade its Houston-area power system from 2026 through 2028. But the price tag dropped to $2.9 billion as part of a legal settlement between CenterPoint and cities in the utility’s service area.

Sometime after the first quarter of next year, CenterPoint customers in the Houston area will pay an extra $1 a month for the next three years to cover costs of the resiliency plan. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

CenterPoint says the plan is part of its “commitment to building the most resilient coastal grid in the country.”

A key to improving CenterPoint’s local grid will be stepping up management of high-risk vegetation (namely trees), which ranks as the leading cause of power outages in the Houston area. CenterPoint says it will “go above and beyond standard vegetation management by implementing an industry-leading three-year trim cycle,” clearing vegetation from thousands of miles of power lines.

The utility company says its plan aims to prevent Houston-area power outages in case of hurricanes, floods, extreme temperatures, tornadoes, wildfires, winter storms, and other extreme weather events.

CenterPoint says the plan will:

  • Improve systemwide resilience by 30 percent
  • Expand the grid’s power-generating capacity. The company expects power demand in the Houston area to grow 2 percent per year for the foreseeable future.
  • Save about $50 million per year on storm cleanup costs
  • Avoid outages for more than 500,000 customers in the event of a disaster like last year’s Hurricane Beryl
  • Provide 130,000 stronger, more storm-resilient utility poles
  • Put more than 50 percent of the power system underground
  • Rebuild or upgrade more than 2,200 transmission towers
  • Modernize 34,500 spans of underground cables

In the Energy Capital of the World, residents “expect and deserve an electric system that is safe, reliable, cost-effective, and resilient when they need it most. We’re determined to deliver just that,” Jason Wells, president and CEO of CenterPoint, said in January.

CenterPoint Energy has launched a $65 million capital improvement plan that will focus on building and maintaining a “resilient” electric grid. Photo via centerpointenergy.com

CenterPoint launches $65B capital improvement plan

grid growth

To support rising demand for power, Houston-based utility company CenterPoint Energy has launched a $65 billion, 10-year capital improvement plan.

CenterPoint said that in its four-state service territory — Texas, Indiana, Minnesota and Ohio — the money will go toward building and maintaining a “resilient” electric grid and a safe natural gas system.

In the Houston area, CenterPoint forecasts peak demand for electricity will increase nearly 50 percent, to almost 31 gigawatts, by 2031 and peak demand will climb to almost 42 gigawatts by the middle of the next decade. CenterPoint provides energy to nearly 2.8 million customers in the Houston area.

In addition to the $65 billion capital improvement budget, which is almost 40 percent higher than the 2021 budget, CenterPoint has identified more than $10 billion in investment opportunities that could further improve electric and natural gas service.

“Every investment we make at CenterPoint is in service of our approximately seven million metered customers we have the privilege to serve,” CenterPoint president and CEO Jason Wells said in a news release.

“With our customer-driven yet conservative approach to growth, we continue to see significant potential for even more investment for the benefit of our customers that is not yet reflected in our new plan,” he added.

A new UH survey shows Harris County residents fear power outages more than flooding or wind when severe weather hits. Photo via Getty Images.

Summer outages remain major concern despite CenterPoint upgrades, report shows

power report

A new survey from the University of Houston Hobby School of Public Affairs showed that nearly 70 percent of 2,300 Harris County registered voters polled were very worried or moderately worried about losing power this summer.

The survey asked residents questions about the potential impact of severe summer weather and to evaluate CenterPoint’s efforts to improve the electrical grid over the past year. It was conducted between July 9-18.

Among the three severe weather threats studied—being without power, high winds and flooding—loss of power was the primary concern among respondents. When asked to what extent residents were worried about being without power:

  • 42 percent were very worried
  • 27 percent were moderately worried
  • 19 percent were a little worried
  • 12 percent were not worried at all

Only 25 percent of respondents reported they were very worried about wind damage, and 20 percent were very worried about flooding.

The report also found that 63 percent of respondents held an unfavorable opinion of CenterPoint Energy.

And despite CenterPoint’s $3.2 billion Systemwide Resiliency Plan (SRP), partnerships with AI companies, and its ongoing Greater Houston Resiliency Initiative (GHRI), 44 percent of respondents said they believe CenterPoint has made only "a little bit" progress on improving the grid's overall reliability.

CenterPoint maintains that the SRP is expected to reduce storm-related outages by 1 billion minutes for its 2.8 million customers by 2029. The company also recently reported a 45 percent reduction in the duration of outages for individual customers from January to June of this year.

“We believe that these resiliency actions will help create a future with fewer outages that impact smaller clusters of customers, coupled with faster restoration times for our Greater Houston communities,” Jason Wells, president and CEO of CenterPoint, previously said in a news release.

Read the full report that includes demographic explanations here.
Jesus Soto Jr., an energy executive with deep Houston ties, will join CenterPoint Energy as COO and executive vice president on Aug. 11. Photo courtesy CenterPoint Energy.

CenterPoint Energy names new COO as resiliency initiatives continue

new hire

CenterPoint Energy has named Jesus Soto Jr. as its new executive vice president and chief operating officer.

An energy industry veteran with deep ties to Texas, Soto will oversee the company's electric operations, gas operations, safety, supply chain, and customer care functions. The company says Soto will also focus on improving reliability and meeting the increased energy needs in the states CenterPoint serves.

"We are pleased to be able to welcome a leader of Jesus Soto's caliber to CenterPoint's executive team,” Jason Wells, CEO and president of CenterPoint, said in a news release. “We have one of the most dynamic growth stories in the industry, and over the next five years we will deliver over $31 billion of investments across our footprint as part of our capital plan. Jesus's deep understanding and background are the perfect match to help us deliver this incredible scope of work at-pace that will foster the economic development and growth demands in our key markets. He will also be instrumental in helping us continue to focus on improving safety and delivering better reliability for all the communities we are fortunate to serve.”

Soto comes to CenterPoint with over 30 years of experience in leading large teams and executing large scale capital projects. As a longtime Houstonian, he served in roles as executive vice president of Quanta Services and COO for Mears Group Inc. He also served in senior leadership roles at other utility and energy companies, including PG&E Corporation in Northern California and El Paso Corp. in Houston.

Soto has a bachelor's degree in civil engineering from the University of Texas at El Paso, and a master's degree in civil engineering from Texas A&M University. He has a second master's degree in business administration from the University of Phoenix.

“I'm excited to join CenterPoint's high-performing team,” Soto said in the news release. “It's a true privilege to be able to serve our 7 million customers in Texas, Indiana, Ohio and Minnesota. We have an incredible amount of capital work ahead of us to help meet the growing energy needs of our customers and communities, especially across Texas.”

Soto will join the company on Aug. 11 and report to Wells as CenterPoint continues on its Greater Houston Resiliency Initiative and Systemwide Resiliency Plan.

“To help realize our resiliency and growth goals, I look forward to helping our teams deliver this work safely while helping our customers experience better outcomes,” Soto added in the news release. “They expect, and deserve, no less.”

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Tesla's EV Robotaxis officially launch in Texas' largest metros

On The Road

Tesla’s Robotaxi service has taken to the streets of Houston. In a brief statement Saturday, April 18 on its X social media account, Tesla Robotaxi says the autonomous rideshare service just launched in Texas’ two biggest metro areas — Houston and Dallas.

“Try Tesla Robotaxi in Dallas & Houston!” Tesla CEO Elon Musk says in a reposting on X of the Robotaxi announcement.

One of Robotaxi’s competitors, Alphabet-owned Waymo, beat the Tesla service to the Dallas, Houston, and Austin markets. Another competitor, Amazon-owned Zoox, has Dallas flagged for its autonomous rideshare service.

Robotaxi previously kicked off in Austin, where Tesla is based and manufactures electric vehicles, and the San Francisco Bay Area. Nearly 50 Robotaxis operate in Austin, where the service’s inaugural rides happened last year, and more than 500 in the San Francisco area.

Of the three rides logged in a 31-square-mile area in Dallas as of Monday morning, the average fare was $7.96 and the average trip was 3.5 miles, according to an online tracker of autonomous rideshare services. The tracker showed only one Robotaxi was on the roads in Dallas.

As of Monday morning, a 25-square-mile area in Houston had two Robotaxis on the road, according to the online tracker. The average fare for five recorded rides was $11.34 and the average trip was six miles.

“We want Robotaxi pricing to be simple and easy for you to understand,” according to the Robotaxi website. “Initially, as part of our introductory program, we will charge a simple, affordable rate plus applicable taxes and fees for all rides within the available service area.”

The tracker shows the Robotaxi in Dallas did not have a human aboard to monitor each trip, and only one of Houston’s two Robotaxis did not have a human monitor in the driver’s seat.

For now, all passengers ride in Tesla Model Y cars. Robotaxi operates from 6 am-2 am daily.

To use the service, you first must download the Robotaxi app, which works only on iPhones.

Robotaxi lets you stream music and adjust climate settings and seat positioning from the Robotaxi app or the vehicle’s touchscreen. Climate and media settings are stored in your Robotaxi profile and automatically transfer from one vehicle to another. If you own a Tesla, certain profile settings and media preferences are available in your own car as well as in a Robotaxi.

In January at the World Economic Forum in Davos, Switzerland, Musk said a “widespread” network of driverless rideshare vehicles would be operating in the U.S. by the end of this year, CNBC reported.

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This article originally appeared on CultureMap.com.

Major Texas energy port wrestles with water crisis due to years of drought

Resource Report

In parched southern Texas, a yearslong drought has depleted Corpus Christi's water reserves so gravely that the city is scrambling to prevent a shortage that could force painful cutbacks for residents and hobble the refineries and petrochemical plants in a major energy port.

Experts said the city didn't expect such a bad drought, and new sources of reliable water didn't arrive as expected. Those problems arose as the city increased its water sales to big industrial customers.

“We just have not kept up with water supply and water infrastructure like we should have. And it's decades in the making,” said Peter Zanoni, the city manager since 2019.

Corpus Christi, a city of about 317,000 people that also supplies water to nearby counties, is closely tied to its oil and gas industry. The region makes everyday essentials like fuel and steel and ships them to the world.

Zanoni said it is highly unlikely the city will run out of water, but without significant rainfall or new sources, residents may face forced cutbacks and industry may have to do with less. At a time when the Iran war is already raising gas prices, the shortage is hitting an area that produces 5% of the U.S. gasoline supply.

Droughts are common, but this one has dragged on for most of the past seven years. Key reservoirs are at their lowest point ever. The quickest fix is different weather.

“We are actively praying for a hurricane,” former city council member David Loeb said, half in jest. Loeb doesn't want anyone injured, but after wrestling with previous droughts in his time on the council, he feels the lack of rain acutely.

The drought isn't expected to lift by summer, leaving officials scrambling to tap more groundwater to avoid an emergency.

Lessons from last time

After the last drought in the early 2010s, the city approved a pipeline extension to bring in more water from the Colorado River and promoted conservation. In the years that followed, water use actually fell. The city, seeing opportunity, added a petrochemical plant and steel mill to its long list of industrial customers.

City officials had allowed for drought in their calculations — just not this kind of drought, Zanoni said. It has hit especially hard because reservoirs never fully recharged after the last one.

And it's come at a bad time.

After many years, the pipeline extension finally delivered its full capacity only last year. Meanwhile, discussion of building a desalination plant that would remove salt from seawater — a potentially drought-proof solution recommended in 2016 — bogged down over concerns about costs as high as $1.3 billion and environmental impact.

“If the then-city council had followed through on that, we would have had that plant up and running by now,” Zanoni said.

It's an industry town

Corpus Christi has followed its long-established plan for reducing water use. Stage 1 seeks voluntary actions from citizens like taking shorter showers and limiting how often they can water. Currently, the city is in Stage 3, which means pauses on many outdoor water uses.

Many residents are angry that they can’t water their lawns, that their bills are set to rise sharply and that they may face fines, said Isabel Araiza, co-founder of a grassroots group active on water issues. Some don’t feel industry will be asked to share in the pain, she said.

The city's drought plan allows for charging residents and businesses extra if they use lots of water. But big industry, which Zanoni says consumes as much as 60% of the city's water, can opt to pay a permanent surcharge to avoid the possibility of having a much larger fee added in times of drought.

Araiza calls it a bad system. Once industry pays the surcharge, she said, they have no incentive to conserve water.

The city has defended the system, saying in a statement that industry does not “get a pass on water conservation” or forced curtailment. The statement said the business surcharges have raised $6 million a year.

It is wrong to suggest industry isn’t helping, said Bob Paulison, executive director of the Coastal Bend Industry Association. Companies have stopped landscaping, they recycle water for essential cooling needs and they are looking for alternative water sources, he said.

The city hasn't imposed extra costs on anyone yet.

But Zanoni said water rates may eventually double as the city invests roughly $1 billion on infrastructure — costs that some argue will disproportionately benefit industry and make life for residents more expensive.

What's the way out?

The city is in a water emergency when it has 180 days before water supply can't keep up with demand. Officials have run through different scenarios for getting new water and the drought easing, and have said an emergency could come as early as May, as late as October, or not at all.

The city has tapped into millions of gallons of new groundwater, and it hopes to get even more.

The biggest unknown is the Evangeline Groundwater Project, which involves a pipeline and about two dozen wells that could add enough water to head off an emergency. It still needs state approval but the city hopes water could be flowing as soon as November. New sources come with drawbacks – some have raised water quality concerns, and there are worries too much pumping could deplete groundwater.

If the city has to declare a water emergency, it would be able to more aggressively curtail water use – mandatory reductions that would apply evenly to all industry and residents. That is a sensitive decision and is likely to be a “knock-down drag-out bloodbath,” Loeb said.

Because residents on average have already reduced their water use, future mandatory cuts are likely to fall heavier on industry.

“It’ll be an unbelievable disaster,” said Don Roach, former assistant general manager of the San Patricio Municipal Water District that has lots of industrial customers in the area. “When you cut the cooling water off to most of these industries, they just have to shut down. There’s no other way around it.”

Paulison said companies that produce fuel, polymers, iron and steel “have the least amount of flexibility in just cutting water usage.” He added, however, that companies remain optimistic they can reduce usage, adapt and continue operations.

Zanoni said the city's plans should buy time to avert the worst.

“We are hoping we don’t get there, but we don’t work on hope,” he said.

Fervo Energy officially files for initial public offering

going public

Fervo Energy has officially filed for IPO.

The Houston-based geothermal unicorn filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission on April 17 to list its Class A common stock on the Nasdaq exchange. Fervo intends to be listed under the ticker symbol "FRVO."

The number and price of the shares have not yet been determined, according to a news release from Fervo. J.P. Morgan, BofA Securities, RBC Capital Markets and Barclays are leading the offering.

The highly anticipated filing comes as Fervo readies its flagship Cape Station geothermal project to deliver its first power later this year

"Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities demand clean, firm electricity to stabilize the grid," Fervo CEO Tim Latimer shared in the filing. "Fervo is prepared to serve all of these customers. Not with complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock, carbon-free power using proven oil and gas technology."

Fervo has been preparing to file for IPO for months. Axios Pro first reported that the company "quietly" filed for an IPO in January and estimated it would be valued between $2 billion and $3 billion.

Fervo also closed $421 million in non-recourse debt financing for the first phase of Cape Station last month and raised a $462 million Series E in December. The company also announced the addition of four heavyweights to its board of directors last week, including Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE.

Fervo reported a net loss of $70.5 million for the 2025 fiscal year in the S-1 filing and a loss of $41.1 million in 2024.

Tracxn.com estimates that Fervo has raised $1.12 billion over 12 funding rounds. The company was founded in 2017 by Latimer and CTO Jack Norbeck.