David J. Lesar
President and Chief Executive Officer at CenterPoint Energy
Thank you, Jackie. Good morning, and thank you to everyone joining us for our second quarter 2022 earnings call. It has now been a little over two years since I was appointed as the Chief Executive Officer of this great company and the exciting progress that CenterPoint continues with lots of opportunities still ahead of us. Now that we're a pure-play regulated utility, our quarterly updates will continue to be streamlined and focused on our regulated utility operations. In a minute, I'll run through our latest highlights and headlines as we continue to build on our consistent track record of earnings delivery. But first, a quick side note. As Texas has heated up this summer, we have gotten a number of questions from shareholders that indicate there may be a level of confusion to some shareholders about how we participate in the Texas electric market. I thought it might be helpful to remind everyone about our role.
As most of you know, the Texas ERCOT market is fully deregulated with respect to the generation and the retailing of electric power in Texas, and CenterPoint does not participate in either of the Texas generation or retail markets. The Texas ERCOT market is regulated for the transmission and distribution of power, which is the market that CenterPoint operates in. Therefore, CenterPoint only transmits power from third-party generators and delivers it to our territories' third-party retail energy providers. Because of this, we take no electric generation cost risk and no retail pricing risk in our business in Texas.
Think of as much as a regulated toll road that charges by the vehicle. As temperatures rise, we have more traffic in the form of electricity driving on our regulated toll road. In addition, our Houston area transmission and distribution system makes up only about 2.5% of the geographic footprint of Texas, but transmits and delivers about 25% of the total ERCOT summer peak electric load. So we have a very dense power grid in our territory. Because of that, CenterPoint imports up to 60% of its electric needs throughout our transmission lines, which connect to generation supply from locations elsewhere in the state. All of this is why investing in resiliency and reliability is so critical. I hope this helps those of you that are just becoming familiar with our story.
So now let's turn to our headlines. We have now delivered nine straight quarters of operational execution under this current management team. We are halfway through 2022 and have increased confidence around our business performance. That increased confidence, specifically around Houston Electric's performance, led us to raise our non-GAAP EPS guidance for the year to $1.37 to $1.39. This means that at the new midpoint, we now expect to grow our earnings 9% this year over the prior year. This is also our fifth earnings guidance increase under this new management team, which, at the same time, is laser-focused on taking the steps necessary to keep our bills affordable for customers.
This increase to our full year guidance will provide the new and higher starting point for our future earnings guidance growth. In other words, it is from this higher $1.37 to $1.39 base that we now intend to grow our non-GAAP EPS 8% annually for 2023 and 2024. And beyond that, we intend to grow at the mid- to high end of our 6% to 8% growth range through 2030. We believe that this will be an industry-leading growth rate, and Jason will get into more of these details shortly. Commensurate with our earnings guidance increase, we also announced a $0.01 increase to our second quarter dividend. This quarterly increase is consistent with our objective of growing dividends in line with earnings.
We are also on track to meet our current capital investment plan for the year, having invested over $2 billion in the first six months of 2022, which is nearly 50% of our 2022 investment plan. We are also tracking very well against our five-year and 10-year spending plans that support the safety, resiliency and growth across our system to benefit our customers. As mentioned in recent earnings calls, we are working to develop the details around incremental customer-driven capital opportunities to support a Houston area regional Master Energy Plan. This includes our Resilient Now initiative with the city of Houston. We plan to provide an update to our capital investment plan on the third quarter call. We also recently completed the final steps of our Vectren integration.
The integrated structure results in a more efficient debt structure, which will help us reach our goal of reducing parent-level debt to approximately 20%. So check another box on our strategic commitment to strengthen our balance sheet and credit metrics for the benefit of our customers and our shareholders. Jason will discuss it in more detail in his section. Our Indiana generation transition plan is also tracking on course, including the recent commission approval of the natural gas peaking facility. We have also filed for another tranche of solar generation, which Jason will discuss. As a reminder, our generation transition plan to cleaner fuels aligns with our peer-leading 2035 Scope one and two net zero emissions goals.
I'm also pleased to say today that despite the well-known challenges around solar power, our recently signed agreements will bring us to over 800 megawatts of owned or contracted solar. So those are our latest headlines. We strive to continue our track record that we've established over the past two plus years of executing on this world-class investment thesis. Turning now to our earnings guidance update. As stated, we raised our non-GAAP EPS guidance this morning to $1.37 to $1.39. This represents a 9% growth rate at the midpoint when compared to the 2021 non-GAAP Utility EPS of $1.27.
And despite the current inflationary environment, we are continuing to see favorable tailwinds, such as the combined 1% to 2% organic growth and warmer weather, which led us to raising our guidance this quarter. An example of the continued organic growth in the Houston area can be seen in its greater than 6% year-over-year jobs growth, which added over 191,000 new jobs in the last year alone. Even as the Houston area temperatures recently peaked at 105 degrees and continue to be persistently hot, our grid has held up well with limited disruptions for our customers.
These limited disruptions are largely related to the typical high-intensity afternoon rain and wind storms that are common in Houston during our summer heat waves. Related to these peak heating events, we have also seen a modest uptick this year in customer transformer-related outages that have occurred across the industry. However, our operations have responded well. We had virtually all of our customers restored in less than two hours, and we continue to expect to meet or exceed the reliability standards set by the Texas Public Utility Commission.
During these recent record weather events, we only utilized commercial load management one time. And while we didn't need mobile generation during this recent weather event, we have approximately 500 megawatts of capacity deployed across our system, and we'll be prepared to utilize it for the benefit of our customers should the conditions call for it. I am pleased with the performance of our system, but more importantly, with the performance of our employees who managed all of our grids for CenterPoint. Now of course, we still have several weeks of summer in front of us with more extreme temperatures forecasted, and we will remain vigilant. Now let's move to capital investments.
Our five year capital investment plan of $19.3 billion has been increased twice since our September 2021 Analyst Day. Our 10-year plan is still currently expected to be $40 billion plus in investments to support the safety, resiliency and growth across our system to benefit our customers. This leads to our industry-leading projected rate base growth of 9% CAGR over the 10-year plan. We are making good strides in our strategic conversations with our customers to explore their views for further grid and infrastructure hardening and modernization, residential weatherization and investments around renewable energy infrastructure. This has included workshops with industrial customers, the city of Houston and other surrounding cities. Now I don't want to front-run these conversations this quarter, but we should be in place to better describe the potential additional capital investments related to these customer-driven infrastructure discussions in our third quarter call.
We expect that this will include investment updates for the Greater Houston regional master energy plan, which includes the Resilient Now initiative jointly launched with the city of Houston earlier this year. As we invest to meet our customers' interest, we continue to remain focused on the affordability of our capital spend. We believe we have done a really good job in this area. For example, from 2013 through 2022, our average Houston Electric charge has only increased by an average of about 1% per year, focus on that fact for a second. That 1% translates to only a $5 increase in the average monthly charge over the last 10 years.
That's the beauty of having strong and continuous organic growth and charges rolling off the bill. The Houston area has averaged over 2% and annual customer growth for the last 30 years. To further benefit customer charges in 2024, our final Houston Electric securitization charge will roll off the customers' bill, which will provide an additional 5% reduction to the current average residential charge. This is on top of the 3% current average residential securitization charge that rolled off just this month. These changes, combined with an organically growing customer base, O&M discipline across our footprint, work to help to reduce the customer impact of the capital investment program across our system, and we will seek to keep executing on these kinds of opportunities to help keep bills affordable for our customers.
As I mentioned in the highlights, our Indiana coal generation transition plan is also tracking nicely against the filed IRP. And we have some potential bill mitigants, such as a recently filed securitization. Jason will cover regulatory items in more detail in just a few minutes. So in summary, before I turn the call over to Jason. With all of the recent strategic actions behind us, we are focused on our pure-play regulated utility footprint with a projected 2022 rate base that is approximately 62% electric, which is within the range, a sum of our premium utility peers.
We believe we are one of the most tangible growth stories in the industry. Our capital investments are not contingent on big bets, they are focused on meeting the needs of our customers across our system due to both organic growth and our continued investment in current system safety, reliability and resiliency needs. We expect that this will likely lead to incremental capital above our $40 billion plus included in our current 10-year plan. We anticipate to provide a more detailed update of this additional investment opportunity on our third quarter call.
We raised our 2022 non-GAAP EPS guidance to $1.37 to $1.39, a 9% growth over 2021. And from that increased number, project to grow at 8% annually in 2023 and 2024, and at the mid- to high end of 6% to 8% annually thereafter through 2030, an industry-leading growth rate. And we have peer-leading 2035 net zero goals on our Scope one and two emissions. And for those of you that continue to track it, we still expect to reduce O&M expenses by 1% to 2% per year, on average, over the 10-year plan, and we still have no plan to issue any equity to meet our current capital spending plans.
As I stated in my opening remarks, we are excited about the nine straight quarters of execution, and I want to thank all of the great employees here at CenterPoint that are delivering on those results to you each and every day. Lastly, we remain focused on achieving our value proposition, which is sustainable, resilient and affordable rates for our customers, sustainable earnings growth for our shareholders and a sustainable positive impact on the environment for our communities.
With that, let me turn the call over to Jason.
