8-KRegulation FDOther EventsExhibits & Filings

CENTERPOINT ENERGY INC 8-K Report, Regulation FD Disclosure (Nov 12, 2024)

Filed November 12, 2024For Securities:CNP

Summary

CenterPoint Energy, Inc. (CNP) has disclosed through its subsidiary, Houston Electric, LLC, the withdrawal of its appeal concerning SOAH Order No. 14. This order had previously denied Houston Electric's request to withdraw its application for authority to change electric transmission and distribution rates. The company had filed this general rate case with the Public Utility Commission of Texas (PUCT) on March 6, 2024, and it was granted an abatement in July 2024. This strategic move indicates Houston Electric's intention to shift focus from litigation to constructive negotiations. The company plans to engage in settlement talks with intervenors involved in the general rate case. Importantly, CenterPoint Energy reaffirms its previously provided non-GAAP earnings guidance for 2024 and 2025, as well as its long-term earnings growth targets extending through 2030. This suggests that management remains confident in achieving its financial projections despite the ongoing rate case proceedings.

Key Highlights

  • 1Houston Electric withdraws appeal of SOAH Order No. 14, ceasing efforts to pull its rate case application.
  • 2The company will now pursue settlement discussions with intervenors in the ongoing general rate case (PUCT Docket No. 56211).
  • 3This decision marks a pivot from an appeals process to a negotiation-focused approach for the electric transmission and distribution rate adjustment.
  • 4CenterPoint Energy reaffirms its 2024 and 2025 non-GAAP earnings guidance.
  • 5Long-term earnings growth targets through 2030 are also reaffirmed by the company.
  • 6The general rate case application was originally filed on March 6, 2024, and granted abatement in July 2024.

Frequently Asked Questions

Withdrawing the appeal means Houston Electric will no longer contest the denial of its request to withdraw its rate case application. Instead, the company is choosing to focus on resolving the general rate case through settlement negotiations with parties involved in the proceeding.

Settlement talks aim to reach an agreement with intervenors on the proposed changes to electric transmission and distribution rates. A successful settlement could lead to a more predictable and potentially faster resolution of the rate case compared to protracted legal battles, possibly impacting the timing and magnitude of any approved rate changes.

CenterPoint Energy explicitly reaffirms its previously announced non-GAAP earnings guidance for 2024 and 2025, and its long-term earnings growth targets through 2030. This indicates that management does not expect this development to materially alter its financial outlook or its ability to meet previously stated targets.

The general rate case application was filed by Houston Electric on March 6, 2024. It was granted abatement in July 2024, and now, following the withdrawal of the appeal, Houston Electric plans to engage in settlement talks with intervenors.