9236f134be07dfbd60c6efae0ab91e89e1c83ad834f8db64d45b0aed935f896e

| Metric                                   | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Throughput - Total (Bcf)**             | **191**  **[0001130310-23-000014_exhibit992earningspresen.htm:7]**  | **229**  **[0001130310-23-000062_exhibit992earningspresen.htm:7]**  | **119**  **[0001130310-23-000111_exhibit992q22023earnings.htm:9]**  | **98**  **[0001130310-23-000148_exhibit993-q32023earning.htm:8]**  | **171**  **[0001130310-24-000011_exhibit992earningsdeck.htm:7]**  | **175**  **[0001130310-24-000067_exhibit992earningsdeck.htm:8]**  | **90**  **[0001130310-24-000094_q2earningspresentationvf.htm:10]**  | **107**  **[0001130310-24-000115_cnp-20240930.htm:82]**  |
| **Throughput - Total (GWh)**             | **22,529**  **[0001130310-23-000014_exhibit992earningspresen.htm:7]**  | **21,756**  **[0001130310-23-000062_exhibit992earningspresen.htm:7]**  | **28,009**  **[0001130310-23-000111_exhibit992q22023earnings.htm:9]**  | **35,029**  **[0001130310-23-000148_exhibit993-q32023earning.htm:8]**  | **19,068**  **[0001130310-24-000011_exhibit992earningsdeck.htm:7]**  | **23,063**  **[0001130310-24-000067_exhibit992earningsdeck.htm:8]**  | **29,034**  **[0001130310-24-000094_q2earningspresentationvf.htm:10]**  | **32,633**  **[0001130310-24-000115_cnp-20240930.htm:79]**  |
| **Metered Customers - Electric**         | **2,858,203**  **[0001130310-23-000014_exhibit992earningspresen.htm:7]**  | **2,871,667**  **[0001130310-23-000062_exhibit992earningspresen.htm:7]**  | **2,887,492**  **[0001130310-23-000111_exhibit992q22023earnings.htm:9]**  | **2,906,307**  **[0001130310-23-000148_exhibit993-q32023earning.htm:8]**  | **2,916,028**  **[0001130310-24-000011_exhibit992earningsdeck.htm:7]**  | **2,932,702**  **[0001130310-24-000067_exhibit992earningsdeck.htm:8]**  | **2,950,593**  **[0001130310-24-000094_q2earningspresentationvf.htm:10]**  | **2,959,281**  **[0001130310-24-000117_supplementalmaterialsreg.htm:8]**  |
| **Metered Customers - Natural Gas**      | **4,266,055**  **[0001130310-23-000014_exhibit992earningspresen.htm:7]**  | **4,276,088**  **[0001130310-23-000062_exhibit992earningspresen.htm:7]**  | **4,264,331**  **[0001130310-23-000111_exhibit992q22023earnings.htm:9]**  | **4,266,995**  **[0001130310-23-000148_exhibit993-q32023earning.htm:8]**  | **4,313,954**  **[0001130310-24-000011_exhibit992earningsdeck.htm:7]**  | **4,329,047**  **[0001130310-24-000067_exhibit992earningsdeck.htm:8]**  | **4,323,753**  **[0001130310-24-000094_q2earningspresentationvf.htm:10]**  | **4,332,007**  **[0001130310-24-000117_supplementalmaterialsreg.htm:8]**  |

1ae395abca2c9b1ba6ac84cab750bebb0a6004283c371e7ac912f31dad941ae2

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

7aae95674403836136d298efd3b1469673a68098c1016c9129729695dcc236eb

CenterPoint Energy, Inc. is an energy delivery company that operates in electric transmission and distribution, power generation, and natural gas distribution, serving over 7 million metered customers across Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas **[0001104659-24-035036_tm2324842d3_def14a.htm:4]**. The company's business activities are divided into two main segments: Natural Gas and Electric **[0001130310-24-000047_a2023sigreportingpackage.htm:48]**. CenterPoint Energy provides electric generation, transmission, and distribution services, as well as natural gas distribution and transportation services **[0001130310-24-000047_a2023sigreportingpackage.htm:48]**. 

1. **Electric Segment** - Provides electric generation, transmission, and distribution services, primarily in southwestern Indiana, and includes power generating and wholesale power operations **[0001130310-24-000047_a2023sigreportingpackage.htm:48]**.
2. **Natural Gas Segment** - Offers natural gas distribution and transportation services, primarily in southwestern Indiana **[0001130310-24-000047_a2023sigreportingpackage.htm:48]**.

b78a011565d69cbcf5be15a3e96e7d63739eb5b827d1a2c6b9adbee995ea9434

f62803a876881e34c68462ff6abfbfa553603be436c8540f961a909b48c4256c

1. Regarding the GHRI, you are planning to invest an additional **$2.5 billion**, increasing resiliency investments to approximately **$5 billion from 2026 through 2028**. How do you plan to achieve these significant investments while keeping Houston Electric's customer delivery charge increases roughly in line with the long-term rate of inflation over the next 10 years?

2. You mentioned that your data center interconnection queue now exceeds **8 gigawatts**, but you acknowledge that not all of this will be developed. Given that, how are you factoring this speculative load into your capital expenditure plans, and what risks do you foresee if this expected growth does not materialize as anticipated?

3. You plan to raise an incremental **$1.25 billion of equity** in addition to the **$1.25 billion** previously guided, totaling approximately **$2.5 billion** through the remainder of the decade. How will these significant equity issuances impact your balance sheet and earnings per share growth targets, and what strategies do you have in place to mitigate potential dilution for shareholders?

4. With the withdrawal of your Houston Electric rate case filing due to focus on plan execution and resiliency development, and given the regulatory lag resulting in a **150 basis point** lower earned ROE than allowed, how do you plan to address this regulatory lag before refiling in 2025, and what are your expectations for the new rate case?

5. Concerning the temporary generation units, you proposed to forgo approximately **$110 million of profit** to address stakeholder concerns. Can you elaborate on how this proposal satisfies stakeholders, and what impact it might have on your financial performance and obligations to customers during load shed events?

f8f553af2eec1a89e48d2c518fbb0bc2c8e4e0445f659482a265259b78fb3f16

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  1. **Non-GAAP EPS Guidance for 2024**: $1.61 to $1.63 per share, representing 8% growth at the midpoint from 2023 results  **[CNP_3404197_1]** **[CNP_3404197_6]** .
  2. **Non-GAAP EPS Guidance for 2025**: $1.74 to $1.76 per share, with an 8% growth from the midpoint of 2024 guidance  **[CNP_3404197_5]** **[CNP_3404197_7]** .
  3. **Long-term EPS Growth**: Mid- to high end of 6% to 8% range annually through 2030  **[CNP_3404197_5]** .
  4. **Dividend Growth**: In line with EPS growth through 2030  **[CNP_3404197_5]** .
  5. **Capital Investment Plan**: $4.9 billion for 2025, with a total of $47 billion through 2030  **[CNP_3404197_7]** .
  6. **System Resiliency Investments**: Approximately $5 billion from 2026 through 2028  **[CNP_3404197_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Non-GAAP EPS Guidance for 2024**: $1.61 to $1.63, representing 8% growth at the midpoint from 2023 results  **[CNP_3394995_5]** .
  2. **Long-term Non-GAAP EPS Growth**: Mid- to high end of 6% to 8% range annually through 2030  **[CNP_3394995_5]** .
  3. **Dividend Per Share Growth**: In line with EPS growth  **[CNP_3394995_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Non-GAAP EPS Guidance**: $1.61 to $1.63, 8% growth at the midpoint from 2023 results  **[CNP_3381508_1]** .
  2. **Long-term EPS Growth**: Mid- to high end of 6% to 8% range annually through 2030  **[CNP_3381508_1]** .
  3. **Dividend Growth**: In line with EPS growth  **[CNP_3381508_1]** .
  4. **Capital Expenditure**: $3.7 billion for 2024  **[CNP_3381508_5]** .
  5. **Capital Investment Plan**: $44.5 billion through 2030  **[CNP_3381508_5]** .
  6. **Rate Base Growth**: Nearly 10% CAGR through 2030  **[CNP_3381508_5]** .
  7. **O&M Reduction**: 1% to 2% per year on average through 2030  **[CNP_3381508_5]** .
  8. **FFO to Debt**: 100 to 150 basis points cushion  **[CNP_3381508_6]** .
  9. **Resiliency Investment**: $2.2 billion to $2.7 billion from 2025 to 2027  **[CNP_3381508_2]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Non-GAAP EPS Guidance for 2024**: $1.61 to $1.63, 8% growth at the midpoint from 2023  **[CNP_3374025_2]** .
  2. **Long-term Non-GAAP EPS Growth**: Mid- to high end of 6% to 8% range annually through 2030  **[CNP_3374025_2]** .
  3. **Dividend Growth**: In line with EPS growth  **[CNP_3374025_2]** .
  4. **Capital Investment Plan**: $44.5 billion through 2030  **[CNP_3374025_1]** **[CNP_3374025_3]** .
  5. **Equity or Equity-like Funding**: $250 million annually  **[CNP_3374025_3]** .
  6. **FFO to Debt Target**: 100 to 150 basis points cushion to 13% downgrade threshold  **[CNP_3374025_9]** .

8651810b84672ec6b61a47008739951bfc7facbac96eafb99b021bef5b01456f

43ea18cefb40b679a8c3af5eb28ce527009c209e33fe5cb3ef33e5555621dda5

**Metered Customers - Electric**

**Metered Customers - Natural Gas**

27ec3df732bf0ac9857ddaec22bdcb8bfdc41b6d802fd5faaf16b5655b56d0ba

- **Large energy companies**: Competitors in Enable's areas of operation with greater financial resources and access to supplies of natural gas, NGLs, and crude oil  **[0001130310-18-000003_cnp_10kx12312017.htm:46]** .
- **Producers of natural gas or crude oil**: Enable's customers who may develop their own gathering, processing, transportation, and storage systems  **[0001130310-18-000003_cnp_10kx12312017.htm:46]** .

0555d98948cbb95e174c172e97dad0cc6419ec4711517fc8eaa0d1ccd814cf80

| Name                  | Position                                              | Start Date         | Short Bio                                                                                                                                                                                                 |
|-----------------------|-------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Jason P. Wells        | President and Chief Executive Officer                 | January 5, 2024    | Jason P. Wells is the President and CEO of CenterPoint Energy, effective January 5, 2024. He previously served as President and COO from 2023 to 2024, and EVP and CFO from 2020 to 2022  **[0001104659-24-035036_tm2324842d3_def14a.htm:20]** **[0001104659-24-035036_tm2324842d3_def14a.htm:4]** **[0001104659-24-035036_tm2324842d3_def14a.htm:47]** .      |
| Christopher A. Foster | Executive Vice President and Chief Financial Officer  | May 5, 2023        | Christopher A. Foster was appointed as EVP and CFO of CenterPoint Energy, effective May 5, 2023. He received a buy-out equity award from CenterPoint Energy valued at $3.9 million  **[0001104659-24-035036_tm2324842d3_def14a.htm:47]** .                  |
| Monica Karuturi       | Executive Vice President and General Counsel          | N/A                | Monica Karuturi serves as EVP and General Counsel at CenterPoint Energy. She is a key legal advisor and was listed as a named executive officer in the company's 2023 executive compensation program  **[0001193125-24-248084_d879591dex11.htm:13]** **[0001104659-24-035036_tm2324842d3_def14a.htm:44]** . |
| Lynne Harkel-Rumford  | Executive Vice President and Chief Human Resources Officer | N/A                | Lynne Harkel-Rumford serves as EVP and Chief Human Resources Officer at CenterPoint Energy. Specific details about her start date are not provided.                                                      |
| Jason M. Ryan         | Executive Vice President, Regulatory Services & Government Affairs | N/A                | Jason M. Ryan serves as EVP, Regulatory Services & Government Affairs at CenterPoint Energy. His base salary for 2023 was $510,000  **[0001104659-24-035036_tm2324842d3_def14a.htm:52]** .                                                                  |
| David J. Lesar        | Chief Executive Officer (retiring January 5, 2024)    | July 2020          | David J. Lesar served as CEO of CenterPoint Energy from July 2020 until his retirement on January 5, 2024. He was previously Chairman and CEO at Halliburton Company  **[0001104659-24-035036_tm2324842d3_def14a.htm:0]** **[0001193125-23-067654_d461167ddef14a.htm:13]** .                             |
| Lynnae K. Wilson      | Senior Vice President of the Electric Business        | N/A                | Lynnae K. Wilson is an officer at CenterPoint Energy, serving as SVP of the Electric Business. She owns 24,766 shares of common stock directly as of January 5, 2024  **[0001130310-24-000005_xslF345X02/wk-form3_1705014464.xml:0]** .                                |
| Scott E. Doyle        | Executive Vice President, Utility Operations          | N/A                | Scott E. Doyle served as EVP, Utility Operations at CenterPoint Energy. He was separated from the company on January 3, 2023, due to the elimination of his position  **[0001193125-23-067654_d461167ddef14a.htm:46]** .                                 |

dc323d39a3417e782e46654e4934dc099ec850371cd83e4381e3bd9f958aef4a

1. **Asset Sale and Use of Proceeds**  
   **Q:** What's the timing of reinvestments and use of sale proceeds?  
   **A:** Jason Wells explained they anticipate closing the sale of their Louisiana and Mississippi gas LDCs in early **2025**  **[CNP_3374025_15]**  and have pre-funded the **$800 million** rate base loss by increasing their **2023** capital expenditure plan by **$700 million**.  **[CNP_3374025_15]** **[CNP_3374025_18]**  This allows them to put investments into rates simultaneously with the sale, effectively offsetting the impact.

2. **Cash Taxes and Corporate AMT Impact**  
   **Q:** How will the corporate AMT affect your cash taxes?  
   **A:** Christopher Foster stated they expect to pay roughly **$150 million** per year in cash taxes from **2024** through **2030** due to the corporate alternative minimum tax.  **[CNP_3374025_12]**  This represents an incremental **$115 million** compared to their previous plan.  **[CNP_3374025_19]**  They are planning conservatively to manage this impact while keeping their earnings guidance unchanged.  **[CNP_3374025_12]** **[CNP_3374025_19]** 

3. **Equity Needs and Capital Raises**  
   **Q:** What are your thoughts on future capital raises?  
   **A:** Christopher Foster mentioned they plan to fund incremental growth CapEx opportunities consistent with their regulated capital structure, roughly **50-50** debt-to-equity.  **[CNP_3374025_18]**  They anticipate **$250 million per year** from equity issuance, totaling **$1.5 billion** through **2030**, and will utilize ATM issuance or equity-like proceeds.  **[CNP_3374025_12]** **[CNP_3374025_18]** 

4. **Resiliency Filing and CapEx Plans**  
   **Q:** Any impact from the new resiliency filing in Texas?  
   **A:** Jason Wells indicated that the resiliency filing won't change recovery mechanisms but will help minimize regulatory lag on system investments.  **[CNP_3374025_20]**  For every **$300 million** of eligible distribution capital, they can save about **$0.01** per share by deferring post in-service carrying costs until capital is put into rates.  **[CNP_3374025_20]** 

5. **Capital Plan Increase**  
   **Q:** Is the $4 billion CapEx increase spread evenly?  
   **A:** Christopher Foster noted that the incremental **$4 billion** capital plan increase is fairly ratable over the plan period.  **[CNP_3374025_21]**  Some exceptions include larger generation projects in Indiana, but overall, the increase is straightforward base utility CapEx.  **[CNP_3374025_21]** 

6. **Rate Cases and Settlement Prospects**  
   **Q:** Any lessons from active cases and settlement prospects?  
   **A:** Jason Wells highlighted that the upcoming Houston Electric rate case will request the smallest revenue requirement increase since **1975**.  **[CNP_3374025_17]**  They aim to file a compelling case and work constructively with parties, with potential settlement mid-summer.  **[CNP_3374025_17]** 

7. **Future Updates and Investor Day**  
   **Q:** What's the cadence of future updates?  
   **A:** Jason Wells stated they plan to provide consistent updates throughout the year and may host another Investor Day after rate cases in **2025**, reflecting long-term growth.  **[CNP_3374025_16]** 

8. **Thoughts on New Texas PUC Chair**  
   **Q:** Views on the new Texas PUC Chair?  
   **A:** Jason Wells expressed a positive relationship with the new Chair, having worked together on key issues like cost of capital and cap structure.  **[CNP_3374025_14]**  He sees opportunities to continue leveraging this relationship.  **[CNP_3374025_14]** 

9. **Incremental Equity from Resiliency Filing**  
   **Q:** Will the resiliency filing require incremental equity?  
   **A:** Jason Wells stated they wouldn't necessarily look at this as incremental equity coming out of the resiliency filing.  **[CNP_3374025_22]**  They plan to redeploy about **$1 billion** previously allocated to Louisiana and Mississippi back into Houston Electric for resiliency programs, enhancing long-term EPS growth.  **[CNP_3374025_22]** 

10. **Cash Tax Incremental Amount**  
    **Q:** Is the $115 million cash tax incremental?  
    **A:** Christopher Foster confirmed the **$115 million** per year is incremental cash taxes due to the corporate AMT.  **[CNP_3374025_19]**  Jason Wells added that as they worked down their federal cash tax position, the AMT becomes applicable.  **[CNP_3374025_19]** 

c693ccead4efae6d6cef90a9f53d7835234903dac57f6b15acdab919d113490f

Adjustments for Non-Cash Items (USD, Millions)

Stock-Based Compensation (USD, Millions)

Changes in Working Capital (USD, Millions)

Capital Expenditures (USD, Millions)

Proceeds from Debt (USD, Millions)

Repayments of Debt (USD, Millions)

Share Repurchases (USD, Millions)

Dividend Payments (USD, Millions)

Net Change in Cash (USD, Millions)

9a481647017d0a024e6288e190e7583378295bfd72290708acdb759a35be78d1

**Annual guidance for FY 2024:**
- **Non-GAAP EPS**: $1.61 to $1.63  **[CNP_3404197_1]** **[CNP_3404197_6]**  (no change from $1.61 to $1.63  **[CNP_3394995_5]** )  
- **Long-term EPS Growth**: Mid- to high end of 6% to 8% range  **[CNP_3404197_5]**  (no change from mid- to high end of 6% to 8% range  **[CNP_3394995_5]** )  
- **Dividend Growth**: In line with EPS growth through 2030  **[CNP_3404197_5]**  (no change from in line with EPS growth  **[CNP_3394995_5]** )  

**Annual guidance for FY 2025:**
- **Non-GAAP EPS**: $1.74 to $1.76  **[CNP_3404197_5]** **[CNP_3404197_7]**  (no prior guidance)  
- **Capital Investment Plan**: $4.9 billion  **[CNP_3404197_7]**  (no prior guidance)  

**Annual guidance for 2026-2028:**
- **System Resiliency Investments**: Approximately $5 billion  **[CNP_3404197_3]**  (no prior guidance)  

4aaf79896805dd6fb08e536aaf6486cb416e61903b17ceab8d12deee60f70abf

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1932  **[0001130310-24-000010_cnp-20231231.htm:163]**    | Present  | Current auditor   |

e86eb1c009fcb881f8c24fb5b1d3574891dfedb13a19aaa7f7017c211d727ab9

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,856 million (-0.2% YoY)  **[0001130310-23-000146_cnp-20230930.htm:10]** **[0001130310-24-000115_cnp-20240930.htm:11]**   
- SG&A: $775 million (**+20% YoY**)  **[0001130310-23-000146_cnp-20230930.htm:10]** **[0001130310-24-000115_cnp-20240930.htm:11]**   
- D&A: $334 million (-11% YoY)  **[0001130310-23-000146_cnp-20230930.htm:10]** **[0001130310-24-000115_cnp-20240930.htm:11]**   
- Operating Income (EBIT): $424 million (**-18% YoY**)  **[0001130310-23-000146_cnp-20230930.htm:10]** **[0001130310-24-000115_cnp-20240930.htm:11]**   
- Net Income: $193 million (**-32% YoY**)  **[0001130310-23-000146_cnp-20230930.htm:10]** **[0001130310-24-000115_cnp-20240930.htm:11]**   
- EPS (Diluted): $0.29 (-29% YoY)  **[0001130310-23-000146_cnp-20230930.htm:10]** **[0001130310-24-000115_cnp-20240930.htm:11]**   

08dd2b6292a087b04f4fe708e8bc6a8bd71b20df04b0c12e565092b90511a093

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6bc51cde474725cfed331026da7743693eadd1e5dd9c03e5a90728c4b17e8d91

1. **System Resiliency Filing and CapEx Plans**  
   **Q:** How will lower approval of resiliency plan affect investments?  
   **A:** Management is confident that even if the PUCT approves spending at the low end or below the **$2.2 to $2.7 billion** range for the system resiliency plan, they have abundant investment opportunities elsewhere. These include incremental CapEx on the gas side, accelerating next-generation smart meter deployment, and capitalizing on exponential load growth from industrial electrification and commercial fleets. Financing for these investments would remain aligned with the existing capital structure.  **[CNP_3381508_11]** **[CNP_3381508_8]** 

2. **Financing and Credit Metrics**  
   **Q:** What are your refinancing plans and options?  
   **A:** Management is pleased with current credit metrics, reporting **14.6% FFO to debt** based on Moody's calculation. They are pursuing efficient financing options, including DOE loan programs totaling over **$2 billion** already filed, evaluating hybrid securities, and hedging a portion of upcoming maturities. The aim is to fund incremental CapEx in line with the enterprise capital structure while optimizing financing costs.  **[CNP_3381508_9]** **[CNP_3381508_8]** 

3. **S&P Negative Outlook and Uri Impact**  
   **Q:** Will metrics improve as Uri impact fades?  
   **A:** Yes, management expects credit metrics to improve as the **Winter Storm Uri** impact rolls off. They believe the S&P negative outlook is based on past events and are comfortable with the financial plan. The Uri impact is transitory, and they foresee growing cushions in their credit metrics with both Moody's and S&P going forward. The effect is due to S&P's methodology excluding securitization proceeds but including associated cash outflows, leading to a temporary impact.  **[CNP_3381508_13]** 

4. **Indiana Rate Case Settlement Delay**  
   **Q:** Update on Indiana settlement delay and agreement likelihood?  
   **A:** The hearing start was delayed by a day to explore potential settlement. Management is working constructively with stakeholders and is cautiously optimistic. Much of the CapEx in the Indiana electric filing has been previously presented to the IURC and stakeholders, including costs of coal transition and T&D investments for reliability and resiliency. More updates will be provided as available.  **[CNP_3381508_12]** 

5. **Demand Growth and Cost Allocation**  
   **Q:** Any cost allocation issues due to load growth?  
   **A:** Management sees less of an issue in their service territories. The growth in Texas and Indiana is driven by industrial load that creates significant jobs, unlike data centers or AI growth that can strain cost allocation. CenterPoint's diverse load growth from residential and industrial sectors keeps cost allocation impacts minimal compared to peers heavily driven by data centers.  **[CNP_3381508_10]** 

6. **Growth Opportunities in Texas**  
   **Q:** Can you elaborate on growth opportunities in Texas?  
   **A:** CenterPoint highlights that Texas offers unmatched dynamic growth, particularly in electric sales. Adjusted for weather, sales were up **8%** over the prior year's first quarter, driven by strong residential, commercial, and large industrial growth. Opportunities include electrification at major ports, growth in the petrochemical complex, life sciences, and collective growth across various sectors, including data centers. They expect this growth to continue through the decade and beyond.  **[CNP_3381508_14]** 

7. **Impact of State/Federal Incentives on EPS**  
   **Q:** How will state/federal incentives affect EPS?  
   **A:** Management states the impact on EPS from pursuing state and federal incentives, such as grants and DOE loans, is very small. These financing options aim to provide better outcomes for customers by reducing costs. They plan to update their long-term EPS guidance after rate cases next year but note that tailwinds, including reduced regulatory lag, increased CapEx by over **10%**, and the sale and reinvestment of assets, outweigh headwinds like higher interest rates and a modest equity program.  **[CNP_3381508_15]** 

8. **Impact of Higher Interest Rates**  
   **Q:** How do higher interest rates affect your plan?  
   **A:** Management acknowledges the higher-for-longer interest rate environment and notes they have planned conservatively for 2024 and beyond. They consistently incorporate conservatism across their plans to avoid surprises and ensure they can execute, finance, and recover their capital programs effectively, even if higher rates persist.  **[CNP_3381508_16]** 

9. **Wildfire Mitigation and SRP Investment**  
   **Q:** What is the outlook for SRP investment and wildfire mitigation?  
   **A:** Wildfire mitigation comprises **$140 million**, a small portion of the overall **$2.2 to $2.7 billion** System Resiliency Plan. With **60%** of their system already underground and high relative humidity reducing wildfire risk, they believe current measures are sufficient under present conditions. Future opportunities lie in strengthening the distribution side to create a more resilient and reliable overhead electric system for customers, indicating potential for continued CapEx growth in subsequent filings.  **[CNP_3381508_17]** 

10. **Resiliency Plan Approval Timeline and ROE**  
    **Q:** What is the timeline for resiliency plan approval and current ROEs?  
    **A:** The resiliency plan approval is expected within about **six months**, potentially by the end of the calendar year, though as first-of-its-kind legislation, timing may vary. Historically, they have seen about **150 basis points** of regulatory lag in Texas, which they have meaningfully reduced. Current earned ROEs are impacted by ongoing rate cases; thus, a normalized view will be clearer post-rate case when they regain access to the full complement of capital recovery mechanisms.  **[CNP_3381508_18]** 

25880dc4bd8dd1b6acc2e47765a0047233cfb9e09418a755a00aa6c5d0b7e2c0

- **CenterPoint Energy's** FFO-to-debt ratio is only **13.8%**, barely above Moody's **13%** downgrade threshold, raising concerns about potential credit rating downgrade and limited financial flexibility.  **[CNP_3404197_5]**
- The company acknowledges the need to "**continue to re-earn trust**" with stakeholders, indicating ongoing reputational challenges that could impact operations and regulatory relations.  **[CNP_3404197_15]**
- **Reliance on securitization proceeds** and asset sales (Louisiana and Mississippi Gas LDCs) to meet financial targets introduces uncertainty, as rating agencies are watching these transactions closely.  **[CNP_3404197_5]**

0a7c9085a30ca779110625887d80e1c562baa6f62ff17739dbb189ff2405c609

- **Strong Growth in Houston Area:** CenterPoint is experiencing growth across residential and industrial sectors in Houston, with housing starts increasing year-over-year. The DOE's designation of Houston as a hydrogen hub is expected to create over **30,000 to 35,000** permanent jobs, presenting substantial opportunities for economic and load growth.  **[CNP_3374025_18]**
- **Increased Capital Expenditure for Future Strength:** The company increased its 2023 CapEx by about **$700 million** for critical investments, effectively prefunding the loss of rate base from the sale of its Louisiana and Mississippi gas LDCs. This positions CenterPoint for continued strength moving forward.  **[CNP_3374025_15]**
- **Long-Term Confidence in Sustained Growth:** CenterPoint plans to present a new 10-year plan into the mid-2030s after the rate cases in 2025, reflecting long-term confidence in their growth prospects and commitment to enhancing shareholder value. They will continue providing periodic updates, demonstrating a track record of consistent enhancements.  **[CNP_3374025_16]**

3387f6ae213bfebb86d8145f971bb2877de0b748632a3eb6b13e40a916088340

- **CenterPoint Energy reported an 8% increase in sales in Q1 2024 compared to the same quarter last year**, adjusted for weather, driven by strong residential, commercial, and large industrial growth in the Greater Houston area. This reflects dynamic economic growth and increasing electrification across multiple sectors.  **[CNP_3381508_14]**
- The company has a **solid base plan with 10% rate base growth through the end of the decade** and has increased its CapEx plans by over 10% since the 2021 Analyst Day, largely due to increased resiliency efforts. Significant opportunities ahead include industrial electrification, such as **approximately 10 GW of hydrogen production in development to come online before 2030**, requiring significant increases in electric transmission capacity and creating jobs that will drive further load growth.  **[CNP_3381508_8]**
- CenterPoint Energy anticipates **more tailwinds than headwinds**, including legislative successes reducing regulatory lag, increased CapEx, and recycling capital into higher-return jurisdictions through asset sales. Despite higher interest rates and a modest equity program, these factors support their continued confidence in long-term growth and earnings guidance of **8% growth in 2024 and mid- to high end of the 6% to 8% range through 2030**.  **[CNP_3381508_15]**

86b8c967b2cd327c19e5ece760460c9b72bcf092fc43b12a8fc24832fcfc9619

- **Strong 2025 Earnings Guidance**: CenterPoint Energy has initiated its 2025 non-GAAP earnings guidance range of **$1.74 to $1.76 per share**, representing **8% growth** from the midpoint of its 2024 guidance. This confidence is based on significant investments leading to a **rate base CAGR of about 11%** over the last two years, new base rates in three jurisdictions, and access to capital recovery mechanisms.  **[CNP_3404197_9]**
- **Robust Load Growth in Texas**: The company expects load growth in its Texas service territory to be at least **30% through 2030**, with potential for even higher growth due to additional speculative load activity. This strong growth outlook provides confidence in their long-term performance.  **[CNP_3404197_11]**
- **Strong Financial Position and Regulatory Support**: CenterPoint Energy maintains strong credit metrics, with an adjusted metric of **13.8%**, and expects further improvements from asset sale proceeds and securitization. Rating agencies are watching closely but are confident due to the supportive Texas regulatory construct and the company's effective navigation of regulatory processes.  **[CNP_3404197_12]**

4508f3e3ae58fdf10abb07869e1b304a31ae9b72caf2438a09cf722acda12088

1. **Equity Content Financing**  
   **Q:** What type of equity content financing are you planning?  
   **A:** We are exploring different versions of hybrids to increase equity content in our plan. We're pulling forward **$250 million** into 2024, which doesn't change the overall guide of **$1.75 billion** total from 2024 to 2030; it's just a pull forward. This positions our balance sheet until we get the anticipated securitization proceeds, expected by end of next year.  **[CNP_3394995_10]** 

2. **Credit Ratings Impact**  
   **Q:** How are rating agencies reacting to the storm costs and your updated plan?  
   **A:** We're in ongoing conversations about our aggressive 2024 plan and revised resiliency filing. Texas has a consistent construct for utilities to securitize costs above **$100 million**, and we're sharing that history with the agencies. There's fluid dialogue given how quickly we're moving on several fronts.  **[CNP_3394995_11]** 

3. **Storm Costs and Securitization**  
   **Q:** What's your confidence in the $1.6 to $1.8 billion storm cost estimate and its impact on customers?  
   **A:** We have a good understanding of costs from both the derecho and Hurricane Beryl, primarily driven by asset-based costs and labor for nearly **15,000** workers. This informs our high-end estimate of **$1.8 billion**. The impact on customer bills would be around **2% over 15 years**, aligning with Texas's statutory requirements.  **[CNP_3394995_16]** **[CNP_3394995_17]** 

4. **O&M Reduction Goal**  
   **Q:** Can you achieve your 1–2% O&M reduction despite increased vegetation management spending?  
   **A:** We continue to find efficiencies to support the **1–2%** O&M reduction. We increased vegetation management spending by over **30%** in 2023 and still achieved this reduction. We'll always invest to improve service but believe we have opportunities across our operations to meet the consolidated reduction goal.  **[CNP_3394995_15]** 

5. **Vegetation Management Challenges**  
   **Q:** How can you address outages caused by trees outside your right of way?  
   **A:** **60%** of trees impacting our lines were outside our right of way, and we currently lack authority to trim them without homeowner permission. We're working with property owners and considering legislative solutions to address hazardous trees that threaten our system.  **[CNP_3394995_13]** 

6. **Legislative Outlook**  
   **Q:** Are there legislative initiatives to improve resiliency?  
   **A:** Possible areas include gaining authority for vegetation management outside our right of way and obtaining customer contact information to improve communications. Discussions are ongoing, and we expect these topics to come into focus approaching the next legislative session.  **[CNP_3394995_18]** 

7. **Mobile Generation Program**  
   **Q:** How are you adapting your mobile generation program in light of recent events?  
   **A:** We maintain a diversified mobile generation portfolio to manage risks like load shed events and storm response. If policy objectives change, we'll adjust accordingly, but currently, we believe our program meets the state's expectations.  **[CNP_3394995_21]** 

8. **System Resiliency Plan Scope**  
   **Q:** Can the accelerated resiliency efforts be accomplished within your $2.7 billion plan?  
   **A:** Yes, the aggressive acceleration in 2024 fits within the high end of our **$2.7 billion** system resiliency plan, as we aim to do more work on the system.  **[CNP_3394995_22]** 

9. **Return to Target Credit Metrics**  
   **Q:** When do you expect FFO to debt ratios to return to target levels?  
   **A:** We anticipate adjustments upward from S&P upon securitization proceeds' receipt, expected around **Q4 next year**, which would improve FFO to debt metrics back into target ranges.  **[CNP_3394995_19]** 

10. **Undergrounding Distribution Lines**  
    **Q:** Does undergrounding become more of a solution after the recent outages?  
    **A:** Undergrounding will likely play a more prominent role in our resiliency efforts. While about **60%** of our customers already receive service through underground lines, focusing on overhead feeder lines that are points of failure is crucial. We'll balance undergrounding where it makes sense with hardening overhead lines.  **[CNP_3394995_23]** 

3db57801e45ab26482033d9acb29f08c9d89d4890b5e534f054a113d364c8d6f

- **Regulatory Uncertainty in Rate Cases:** CenterPoint Energy is experiencing regulatory uncertainties, particularly with its Indiana electric rate case, where hearings have been delayed to explore potential settlements, making it difficult to predict outcomes.  **[CNP_3381508_12]**
- **Higher Interest Rates Impacting Financing Costs:** The company acknowledges a **"higher for longer" interest rate environment**, which could **increase financing costs** and pressure earnings, necessitating a conservative approach to their capital programs.  **[CNP_3381508_16]**
- **Dependence on External Funding for Capital Expenditures:** CenterPoint's incremental capital investment opportunities, including the **$500 million resiliency plan**, depend on securing federal and state funding. There is uncertainty about successfully obtaining these funds, and failure may require funding projects through their capital structure, potentially impacting their financial position.  **[CNP_3381508_8]** **[CNP_3381508_9]** **[CNP_3381508_15]**

b0525ab161ae34f7720b5c5ad9e95d4ee4a77fe6ac8342a0fd2a10c9d46525b0

- CNP is facing an incremental increase of approximately **$115 million per year in cash taxes** due to the new Alternative Minimum Tax, which could negatively impact cash flow and earnings.  **[CNP_3374025_19]**
- The sale of the Louisiana and Mississippi gas LDCs may not fully offset the loss of approximately **$800 million in rate base**, and the increased **$700 million in capital expenditures** to pre-fund the loss could strain the company's balance sheet.  **[CNP_3374025_15]** ,  **[CNP_3374025_17]**
- Despite significant capital investments, CNP is planning a **relatively flat revenue requirement increase** in the upcoming Houston Electric rate case, which may limit the company's ability to recover costs and could pressure future earnings.  **[CNP_3374025_14]** ,  **[CNP_3374025_17]**

795fbfba9ce0a76b9baf572dcc65bf1539778553c994a889cad423b15d2e3bdf

1. **Confidence in 2025 Earnings Guidance**  
   **Q:** What's your confidence level in hitting 2025 earnings guidance?  
   **A:** We have a **high degree of confidence** in our 2025 earnings guidance due to several factors. First, we've invested significantly over the last two years, achieving a **rate base CAGR of about 11%**, providing a solid foundation for our **8% earnings growth** target **[CNP_3404197_9]**. Second, we'll have new base rates in **three jurisdictions in 2025**—Texas Gas, Indiana Electric, and Minnesota Gas—which will smooth earnings and rate increases for customers **[CNP_3404197_9]**. Lastly, we have access to all recovery mechanisms for our capital spend except in Ohio **[CNP_3404197_9]**.

2. **Equity Raise Plans**  
   **Q:** Can you address the increased equity needs and potential prefunding?  
   **A:** We've increased our equity needs by **$1.25 billion to $2.5 billion through 2030** and plan to efficiently fund this without necessarily prefunding **[CNP_3404197_10]**. We have a strong track record of raising equity and will consider optimal financing methods **[CNP_3404197_10]**. With **$3 billion of cash inflows** expected over the next 12 to 18 months, we have significant flexibility **[CNP_3404197_10]**.

3. **Credit Metrics and Securitization Timing**  
   **Q:** How will securitization proceeds affect credit metrics in 2024 and 2025?  
   **A:** We expect securitization proceeds to bolster our credit metrics by **Q1 2026** **[CNP_3404197_13]**. We'll file two securitization requests: the first for May storm costs, with proceeds expected in **Q3 2025**, and the second for Hurricane Beryl costs, expected in **late Q4 2025 or early Q1 2026** **[CNP_3404197_13]**. We're focused on maintaining a cushion of **100 to 150 basis points** above downgrade thresholds **[CNP_3404197_14]**.

4. **Texas Load Growth and Transmission Opportunities**  
   **Q:** What's the outlook for Texas load growth and transmission investments?  
   **A:** We're witnessing significant potential in Texas, with peak load growth expected to be at least **30% through 2030** **[CNP_3404197_11]**. This figure may increase as speculative loads, like hydrogen projects, materialize **[CNP_3404197_11]**. The recent surge in data center activity has increased our queue from **1 GW to over 8 GW** **[CNP_3404197_20]**. We're poised to invest in transmission, including potential **765 kV projects**, which could add substantial upside to our **$47 billion CapEx plan** **[CNP_3404197_18]**.

5. **Rating Agencies Update**  
   **Q:** What are rating agencies focusing on, and how are metrics trending?  
   **A:** Rating agencies are monitoring both our financial metrics and regulatory developments **[CNP_3404197_12]**. We're measuring against Moody's **13%** downgrade threshold and reported an adjusted metric of **13.8%** **[CNP_3404197_12]**. Expected cash inflows from asset sales and securitizations will enhance our metrics **[CNP_3404197_12]**.

6. **Mobile Generation—Possible Divestment**  
   **Q:** Are there strategic options for your mobile generation assets?  
   **A:** Given the state's need for dispatchable generation, we're exploring solutions that could involve subleasing our equipment so it remains in Texas **[CNP_3404197_19]**. We aim to find a cost-effective approach that ensures reliability during load shed events **[CNP_3404197_19]**.

7. **Temporary Generation Proposal**  
   **Q:** What's the status of your temporary generation recovery proposal?  
   **A:** We've proposed to forgo approximately **$110 million** in profit from our large temporary generation units **[CNP_3404197_17]**. Stakeholders view this positively, but discussions continue regarding the use of these units **[CNP_3404197_17]**. We're working with the state to find a mutually beneficial resolution **[CNP_3404197_17]**.

8. **2024 Guidance and Q4 Offsets**  
   **Q:** How are you offsetting the $0.11 O&M drag to maintain 2024 guidance?  
   **A:** Offsets include consistent benefits from our trackers, contributing **$0.09 to $0.10** quarter-over-quarter **[CNP_3404197_16]**. We've accelerated some work from Q4 into Q3, resulting in a **$0.01** benefit to Q4 **[CNP_3404197_16]**. Pulling forward work from 2024 to 2023 last year adds another **$0.03** benefit **[CNP_3404197_16]**. Overall, we're confident in meeting our 2024 guidance **[CNP_3404197_16]**.

9. **Stakeholder Conversations Post-Storm in Texas**  
   **Q:** How are stakeholder relations in Texas after recent storms?  
   **A:** Relations are improving as we've engaged extensively with stakeholders **[CNP_3404197_15]**. There's a collective desire for a more resilient system and better communications **[CNP_3404197_15]**. Our Phase 2 GHRI plan focuses on **segmentation and automation**, aiming to save customers about **125 million outage minutes annually** **[CNP_3404197_15]**. We're committed to rebuilding trust and meeting stakeholders' expectations **[CNP_3404197_15]**.

ff9210d6c7e87d78a4c2c83d4127ef0493d61e7394bc481189c0f5ab78031749

- **Significant Storm-Related Costs Could Pressure Financials**: CenterPoint Energy estimates storm restoration costs from the May derecho and Hurricane Beryl to be approximately $1.6 to $1.8 billion, which they plan to securitize.  **[CNP_3394995_16]**  These substantial costs may impact the company's balance sheet and could lead to increased rates for customers, potentially affecting demand and regulatory relations.  **[CNP_3394995_6]**
- **Equity Issuance and Financing Concerns**: The company plans to pull forward $250 million of equity issuance from 2025 into 2024 and incorporate higher equity content into upcoming debt issuances to maintain credit metrics amidst the storm impacts.  **[CNP_3394995_5]**  This acceleration of equity could dilute existing shareholders and indicates potential financing challenges.  **[CNP_3394995_10]**
- **Regulatory and Customer Relations Risks**: CenterPoint Energy is facing scrutiny from customers and regulators due to widespread power outages and communication issues during recent storms.  **[CNP_3394995_7]**  Ongoing settlement discussions in their Houston Electric rate case and the need to revise their system resiliency plan may introduce regulatory uncertainties.  **[CNP_3394995_6]**

bece049668cf93563a2a8b7edf07d9261bdacc9a4b54c4077ee966bb2c2f97d4

- **CenterPoint Energy is accelerating its system resiliency investments, including greater adoption of undergrounding and grid hardening, to improve reliability and meet increasing demand. This aggressive acceleration is occurring within its planned capital expenditure range of $2.2 billion to $2.7 billion.**  **[CNP_3394995_23]** **[CNP_3394995_22]**
- **The company remains confident in achieving its base capital expenditure plan and has reaffirmed its full-year 2024 non-GAAP EPS guidance range, despite recent storms and associated costs, indicating strong financial management and resilience.**  **[CNP_3394995_20]**
- **CenterPoint Energy benefits from a constructive regulatory environment in Texas, allowing it to securitize storm-related costs over 15 years, limiting the impact on customer bills to approximately 2%, which supports financial stability and enables continued investment.**  **[CNP_3394995_17]** **[CNP_3394995_16]**

ed2a8c7f161b785c471677ff332364620d84349bf140ca52b5cbfdb7dba42ea0

CenterPoint Energy Inc (CNP)

Financials