CenterPoint Energy (CNP) said Thursday it has entered into a settlement agreement that will reduce electricity costs for its customers in Houston.

The agreement with parties to its 2024 Houston rate case is anticipated to reduce annual revenue by about $50 million for the company's CenterPoint Energy Houston Electric unit through 2029, it said.

Under the agreement, monthly bills will be reduced by about $1 for most of the company's customers in Houston, or roughly 2% of the monthly payment of residential customers using 1,000 kWh per month, it said.

Rate cases, formal processes in which utility companies seek approval from a regulatory body to amend their rates, for Houston Electric typically occur every four years and involve PUCT review and approval of electricity rates, the company added.

Shares of the company were up nearly 2% in recent trading.

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