CenterPoint Energy and HomeServe USA partner to provide home protection services to customers
Home repair plans will be available to CenterPoint Energy natural gas customers in Texas
2018-06-13T10:45:00Z

Houston – June 13, 2018 – CenterPoint Energy (NYSE: CNP) and HomeServe USA Corp. (HomeServe), a provider of emergency home repair programs to homeowners nationwide, today announced a new partnership through which CenterPoint Energy's natural gas customers in Texas will be able to purchase service plans for several household systems.

CenterPoint Energy and HomeServe's new program will offer a suite of service plans covering repairs to several energy-consuming and other home systems, including customer-owned natural gas lines, heating and cooling systems, interior electric wiring, water heaters, and exterior water and sewer lines. The service plans are designed to protect homeowners from the inconvenience and unexpected expenses associated with repairs to these critical household systems. The initial rollout will include protection for customer-owned natural gas lines and cooling systems, and will be available later this summer.

"CenterPoint Energy prides itself on being a trusted energy advisor, so we are pleased to work with HomeServe to provide our customers access to these new valuable services," said Gregg Knight, senior vice president and Chief Customer Officer of CenterPoint Energy. "CenterPoint Energy provides high-quality, highly rated energy delivery to our customers. These new service plans are a natural extension and will provide homeowners with a low-cost, peace-of mind option for unexpected repairs to covered systems."

The Gas Line service plan, for example, will offer homeowners protection against the expense and inconvenience of repairs to the customer-owned natural gas line from the CenterPoint Energy meter up to and including the connectors to each natural gas appliance inside the home. The plan would also cover repairs to the piping leading to connectors to natural gas appliances outside around the property, such as a natural gas grill or natural gas pool heater. Future offerings will include service plans to help repair or maintain energy-consuming appliances, which will help them use energy more efficiently. 

"HomeServe shares the same level of commitment to quality customer service as CenterPoint Energy," said John Kitzie, CEO of HomeServe. "Our cost-effective service plans provide a better way for customers to secure and pay for repairs through our reliable network of qualified local contractors."  

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events, such as future offerings under CenterPoint's new program, and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release.  Factors that could affect actual results include (1) factors related to our business and the economy, including commodity prices, (2) the performance of the companies, (3) competitive conditions in the industry, (4) state and federal legislative and regulatory actions or developments affecting various aspects of the businesses and (5) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as well as in CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2018, and other reports on Form 8-K CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

About CenterPoint Energy:

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and energy services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. The company also owns 54.0 percent of the common units representing limited partner interests in Enable Midstream Partners, a publicly traded master limited partnership it jointly controls with OGE Energy Corp. Enable Midstream Partners owns, operates and develops natural gas and crude oil infrastructure assets. With nearly 8,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, please visit www.CenterPointEnergy.com

About HomeServe USA Corp.:

HomeServe USA Corp. (HomeServe) is a leading provider of home repair solutions serving 3.6 million customers across the US and Canada under the HomeServe, Home Emergency Insurance Solutions, Service Line Warranties of America (SLWA) and Service Line Warranties of Canada (SLWC) names. Since 2003, HomeServe has been protecting homeowners against the expense and inconvenience of water, sewer, electrical, HVAC and other home repair emergencies by providing affordable repair coverage, installations and quality local service. As an A+ rated Better Business Bureau Accredited Business, HomeServe is dedicated to being a customer-focused company supplying best-in-class repair plans and other services to consumers directly and through over 550 leading municipal, utility and association partners. For more information about HomeServe, a 2017 Connecticut Top Workplace winner and recipient of eighteen 2018 Stevie Awards for Sales & Customer Service, or to learn more about HomeServe's affordable repair plans, please go to www.homeserveusa.com. To connect with HomeServe on Facebook and Twitter, please visit www.facebook.com/homeserveusa and www.twitter.com/homeserveusa.

 

For more information:

 

CenterPoint Energy

Media:  Leticia Lowe   

Phone: 713-207-7702

Investors:  David Mordy

Phone: 713-207-6500

 

HomeServe USA

Myles Meehan                                                

Phone: 203-356-4259                                       

             

Hill+Knowlton Strategies for HomeServe USA

Merrie Leininger

Phone: 775-846-0664

###

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 Recent News

 

 

CenterPoint Energy’s 345-kilovolt electric transmission line CenterPoint Energy’s 345-kilovolt electric transmission line route approved by the Public Utility Commission of Texas
  • New line will support electric reliability and future growth in the Freeport area
  • Selected route reflects input from public, other key stakeholders
  • Construction of the Bailey-Jones Creek Project planned to begin January 2021, with completion expected by April 2022

Houston – Nov. 21, 2019 – The Public Utility Commission of Texas (PUCT) today issued a final order approving CenterPoint Energy Houston Electric, LLC's Bailey-Jones Creek Project, a 345-kilovolt (kV) electric transmission line connecting the company's Bailey Substation in Wharton County to its Jones Creek Substation in Brazoria County.

An analysis by the Electric Reliability Council of Texas (ERCOT) showed that transmission improvements were needed to support reliability in the Freeport area. "The Bailey-Jones Creek Project will maintain transmission grid reliability, provide for future load growth, and support operational flexibility to perform routine maintenance in the Freeport area," said Tracy Bridge, executive vice president and Electric Division president for CenterPoint Energy.

The PUCT considers many factors when deciding whether to approve a proposed transmission line as prescribed by state law and PUCT rules, including community values, recreational and park areas, historic and aesthetic values, and environmental integrity. The PUCT also considers specific routing criteria for new lines, including whether the route utilizes or parallels compatible rights-of-way such as following existing transmission lines, roads, property lines, natural features, and cultural features.

Last year, CenterPoint Energy provided information about these factors for each of the proposed alternative routes in its Certificate of Convenience and Necessity (CCN) application. The company also worked with a routing consultant to perform an environmental assessment and routing analysis for the proposed line. Additionally, public input was gathered at open houses and through the Bailey-Jones Creek Project website.

The approved route of the Bailey-Jones Creek Project transmission line will be 55.5 miles within Brazoria, Matagorda and Wharton counties. The estimated total project capital cost of the project is $483 million.

"After receiving route approval, CenterPoint Energy is ready to start Bailey-Jones Creek Project construction and anticipates the project will be completed by April 2022," added Bridge.

CenterPoint Energy's CCN was filed with the PUCT last year under PUCT Docket No. 48629.

CenterPoint Energy reports third quarter 2019 earnings of $0.47 per diluted share; $0.53 earnings per diluted share on a guidance basis, excluding certain impacts associated with the Vectren merger

Houston - November 7, 2019 - CenterPoint Energy, Inc. (NYSE: CNP) today reported income available to common shareholders of $241 million, or $0.47 per diluted share, for the third quarter of 2019, compared with $153 million, or $0.35 per diluted share for the third quarter of 2018. On a guidance basis, third quarter 2019 earnings were $0.53 per diluted share, excluding certain impacts associated with the Vectren merger (the merger). Third quarter 2018 earnings, on a guidance basis and excluding certain impacts associated with the merger, were $0.39 per diluted share.

"Our utilities delivered another strong performance this quarter, driven by solid customer growth, disciplined cost management and favorable weather," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "This strong performance is expected to drive our anticipated 2019 full year results towards the upper end of our guidance range."

Business Segments

Houston Electric - Transmission & Distribution

The Houston electric - transmission & distribution segment reported operating income of $269 million for the third quarter of 2019, consisting of $261 million from the regulated electric transmission and distribution utility operations (TDU) and $8 million related to securitization bonds. Operating income for the third quarter of 2018 was $227 million, consisting of $214 million from the TDU and $13 million related to securitization bonds. Operating income for the TDU benefited primarily from lower operation and maintenance expenses, higher usage primarily due to warmer than normal weather, customer growth and rate relief. These benefits were partially offset by increased depreciation and amortization expense, lower equity return, primarily related to the annual true-up of transition charges, and lower revenues related to the Tax Cuts and Jobs Act (TCJA).

Indiana Electric – Integrated

The Indiana electric – integrated segment reported operating income of $48 million for the third quarter of 2019. These results are not comparable to the third quarter of 2018 as this segment was acquired in the merger in February 2019.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $27 million for the third quarter of 2019, compared with $3 million for the third quarter of 2018. Operating income increased $7 million due to the gas utilities acquired in the merger in February 2019. The remaining increase is primarily due to lower operation and maintenance expenses, rate relief and customer growth. These increases were partially offset by the timing of a decoupling mechanism in Minnesota and lower revenues related to the TCJA.

Energy Services

The energy services segment reported operating income of $2 million for the third quarter of 2019, which included a mark-to-market loss of $2 million, compared with an operating loss of $9 million for the third quarter of 2018, which included a mark-to-market gain of $1 million. Excluding mark-to-market adjustments, operating income was $4 million for the third quarter of 2019 compared with an operating loss of $10 million for the third quarter of 2018. Operating income, excluding mark-to-market adjustments, increased primarily as a result of an increase in margin due to fewer opportunities to optimize natural gas supply costs in the third quarter of 2018 and decreased operation and maintenance expenses.

Infrastructure Services

The infrastructure services segment reported operating income of $42 million for the third quarter of 2019. Operating income includes $6 million of merger-related expenses. These results are not comparable to the third quarter of 2018 as this segment was acquired in the merger in February 2019.

Midstream Investments

The midstream investments segment reported $77 million of equity income for the third quarter of 2019, compared with $81 million in the third quarter of 2018. For further detail, please refer to Enable's investor materials provided during its 3rd quarter earnings call on November 6, 2019.

Corporate and Other

The corporate and other segment reported operating income of $4 million for the third quarter of 2019, compared with $5 million for the third quarter of 2018. Operating income for the third quarter of 2019 included $19 million of merger-related expenses. Operating income for the third quarter of 2018 included $5 million of merger-related expenses.

Earnings Outlook

  •  Anticipate delivering full year 2019 guidance basis EPS near the upper end of our guidance range of $1.60 - $1.70. This guidance excludes:
    • Certain impacts associated with the merger:
      • Integration and transaction-related fees and expenses, including severance and other costs to achieve the anticipated cost savings as a result of the merger
      • Merger financing impacts in January, prior to the completion of the merger, due to the issuance of debt and equity securities to fund the merger that resulted in higher net interest expense, preferred stock dividend requirements and higher common stock share count
    • Potential impacts of the pending Houston Electric rate case
  • 2020 guidance range and EPS growth target to be provided on fourth quarter 2019 earnings call following normal annual financial planning process


The 2019 guidance range considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, commodity prices, recovery of capital invested through rate cases and other rate filings (excluding potential impacts of the pending Houston Electric rate case), effective tax rates, financing activities and related interest rates, and regulatory and judicial proceedings as well as the volume of work contracted in our infrastructure services business.  The range also considers anticipated cost savings as a result of the merger.  The range assumes the lower end of Enable Midstream Partners, LP's (Enable) 2019 guidance range for net income attributable to common units, provided on Enable's 3rd quarter earnings call on November 6, 2019.

In providing this guidance, CenterPoint Energy uses a non-GAAP measure of adjusted diluted earnings per share that does not consider other potential impacts, such as changes in accounting standards or unusual items, including those from Enable, earnings or losses from the change in the value of ZENS and related securities, or the timing effects of mark-to-market accounting in the company's Energy Services business, which, along with the certain excluded impacts associated with the merger and potential impacts of the pending Houston Electric rate case, could have a material impact on GAAP reported results for the applicable guidance period.  CenterPoint Energy is unable to present a quantitative reconciliation of forward looking adjusted diluted earnings per share because changes in the value of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business are not estimable as they are highly variable and difficult to predict due to various factors outside of management's control.

 


  Quarter Ended ​ ​ ​ ​
  September 30, 2019September 30, 2018
  Dollars
in millions
Diluted EPS(1) Dollars
in millions
Diluted EPS(1)
Consolidated income available to common shareholders and diluted EPS$241$0.47$153$0.35
Timing effects impacting CES (2):    
Mark-to-market (gains) losses (net of taxes of $1 and $0) (3)1(1)
ZENS-related mark-to-market (gains) losses:    
Marketable securities (net of taxes of $12 and $9) (3)(4)(47)(0.09)(34)(0.08)
Indexed debt securities (net of taxes of $12 and $10) (3)500.10340.08
Consolidated on a guidance basis$245$0.48$152$0.35
Impacts associated with the Vectren merger:    
Impacts associated with the Vectren merger (net of taxes of $5 and $2) (3)200.05180.04
Consolidated on a guidance basis, excluding impacts associated with the Vectren merger$265`$0.53$170$0.39

 

(1) Quarterly diluted EPS on both a GAAP and guidance basis are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted EPS

(2) Energy Services segment

(3) Taxes are computed based on the impact removing such item would have on tax expense

(4) Comprised of common stock of AT&T Inc. and Charter Communications, Inc

Filing of Form 10-Q for CenterPoint Energy, Inc.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the quarter ended September 30, 2019. A copy of that report is available on the company's website, under the Investors section. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations page of our website.  In the future, we will continue to use these channels to distribute material information about the company and to communicate important information about the company, key personnel, corporate initiatives, regulatory updates and other matters.  Information that we post on our website could be deemed material; therefore we encourage investors, the media, our customers, business partners and others interested in our company to review the information we post on our website.

Webcast of Earnings Conference Call

CenterPoint Energy's management will host an earnings conference call on Thursday, November 7, 2019, at 9:00 a.m. Central time/10:00 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call on the company's website under the Investors section. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the website for at least one year.

Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy's competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and approximately $35 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future earnings, and future financial performance and results of operations, including, but not limited to earnings guidance, targeted dividend growth rate and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release.

Risks Related to CenterPoint Energy

Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the performance of Enable Midstream Partners, LP (Enable), the amount of cash distributions CenterPoint Energy receives from Enable, Enable's ability to redeem the Enable Series A Preferred Units in certain circumstances and the value of CenterPoint Energy's interest in Enable, and factors that may have a material impact on such performance, cash distributions and value, including factors such as: (A) competitive conditions in the midstream industry, and actions taken by Enable's customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable; (B) the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly prices of natural gas and natural gas liquids (NGLs), the competitive effects of the available pipeline capacity in the regions served by Enable, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable's interstate pipelines; (C) the demand for crude oil, natural gas, NGLs and transportation and storage services; (D) environmental and other governmental regulations, including the availability of drilling permits and the regulation of hydraulic fracturing; (E) recording of goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; (F) the timing of payments from Enable's customers in existing contracts, including minimum volume commitment payments; (G) changes in tax status; and (H) access to debt and equity capital; (2) CenterPoint Energy's expected benefits of the merger with Vectren Corporation (Vectren) and integration, including the outcome of shareholder litigation filed against Vectren that could reduce anticipated benefits of the merger, as well as the ability to successfully integrate the Vectren businesses and to realize anticipated benefits and commercial opportunities; (3) industrial, commercial and residential growth in CenterPoint Energy's service territories and changes in market demand, including the demand for CenterPoint Energy's non-utility products and services and effects of energy efficiency measures and demographic patterns; (4) the outcome of the pending Houston Electric rate case; (5) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; (6) future economic conditions in regional and national markets and their effect on sales, prices and costs; (7) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; (8) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy's and Enable's businesses, including, among others, energy deregulation or re-regulation, pipeline integrity and safety and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by our regulated businesses; (9) tax legislation, including the effects of the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act (which includes any potential changes to interest deductibility) and uncertainties involving state commissions' and local municipalities' regulatory requirements and determinations regarding the treatment of excess deferred income taxes and CenterPoint Energy's rates; (10) CenterPoint Energy's ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (11) the timing and extent of changes in commodity prices, particularly natural gas and coal, and the effects of geographic and seasonal commodity price differentials; (12) the ability of CenterPoint Energy's and CERC's non-utility business operating in the Energy Services reportable segment to effectively optimize opportunities related to natural gas price volatility and storage activities, including weather-related impacts; (13) actions by credit rating agencies, including any potential downgrades to credit ratings; (14) changes in interest rates and their impact on CenterPoint Energy's costs of borrowing and the valuation of its pension benefit obligation; (15) problems with regulatory approval, legislative actions, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; (16) the availability and prices of raw materials and services and changes in labor for current and future construction projects; (17) local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change, air emissions, carbon, waste water discharges and the handling and disposal of coal combustion residuals (CCR) that could impact the continued operation, and/or cost recovery of generation plant costs and related assets; (18) the impact of unplanned facility outages or other closures; (19) any direct or indirect effects on CenterPoint Energy's or Enable's facilities, operations and financial condition resulting from terrorism, cyber-attacks, data security breaches or other attempts to disrupt CenterPoint Energy's businesses or the businesses of third parties, or other catastrophic events such as fires, ice, earthquakes, explosions, leaks, floods, droughts, hurricanes, tornadoes, pandemic health events or other occurrences; (20) CenterPoint Energy's ability to invest planned capital and the timely recovery of CenterPoint Energy's investments, including those related to the generation transition plan; (21) CenterPoint Energy's ability to successfully construct and operate electric generating facilities, including complying with applicable environmental standards and the implementation of a well-balanced energy and resource mix, as appropriate; (22) CenterPoint Energy's ability to control operation and maintenance costs; (23) the sufficiency of CenterPoint Energy's insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (24) the investment performance of CenterPoint Energy's pension and postretirement benefit plans; (25) commercial bank and financial market conditions, CenterPoint Energy's access to capital, the cost of such capital, and the results of CenterPoint Energy's financing and refinancing efforts, including availability of funds in the debt capital markets; (26) changes in rates of inflation; (27) inability of various counterparties to meet their obligations to CenterPoint Energy; (28) non-payment for CenterPoint Energy's services due to financial distress of its customers; (29) the extent and effectiveness of CenterPoint Energy's and Enable's risk management and hedging activities, including but not limited to, financial and weather hedges and commodity risk management activities; (30) timely and appropriate regulatory actions, which include actions allowing securitization, for any future hurricanes or natural disasters or other recovery of costs, including costs associated with Hurricane Harvey; (31) CenterPoint Energy's or Enable's potential business strategies and strategic initiatives, including restructurings, joint ventures and acquisitions or dispositions of assets or businesses, which CenterPoint Energy and Enable cannot assure will be completed or will have the anticipated benefits to CenterPoint Energy or Enable; (32) the performance of projects undertaken by CenterPoint Energy's non-utility businesses and the success of efforts to realize value from, invest in and develop new opportunities and other factors affecting those non-utility businesses, including, but not limited to, the level of success in bidding contracts, fluctuations in volume and mix of contracted work, mix of projects received under blanket contracts, failure to properly estimate cost to construct projects or unanticipated cost increases in completion of the contracted work, changes in energy prices that affect demand for construction services and projects and cancellation and/or reductions in the scope of projects by customers and obligations related to warranties and guarantees; (33) acquisition and merger activities involving CenterPoint Energy or its competitors, including the ability to successfully complete merger, acquisition and divestiture plans; (34) CenterPoint Energy's or Enable's ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (35) the outcome of litigation; (36) the ability of retail electric providers (REPs), including REP affiliates of NRG Energy, Inc. and Vistra Energy Corp., formerly known as TCEH Corp., to satisfy their obligations to CenterPoint Energy and its subsidiaries; (37) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (38) the impact of alternate energy sources on the demand for natural gas; (39) the timing and outcome of any audits, disputes and other proceedings related to taxes; (40) the effective tax rates; (41) the transition to a replacement for the LIBOR benchmark interest rate; (42) the effect of changes in and application of accounting standards and pronouncements; and (43) other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2018, CenterPoint Energy's Quarterly Report on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019 and September 30, 2019 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures by CenterPoint Energy in Providing Guidance

In addition to presenting its financial results in accordance with generally accepted accounting principles (GAAP), including presentation of income available to common shareholders and diluted earnings per share, CenterPoint Energy also provides guidance based on adjusted income and adjusted diluted earnings per share, which are non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. CenterPoint Energy's adjusted income and adjusted diluted earnings per share calculation excludes from income available to common shareholders and diluted earnings per share, respectively, the impact of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business. CenterPoint Energy's guidance for 2019 also does not reflect (a) certain impacts associated with the Vectren merger, which are integration and transaction-related fees and expenses, including severance and other costs to achieve anticipated cost savings as a result of the merger and merger financing impacts in January, prior to the completion of the merger due to the issuance of debt and equity securities to fund the merger that resulted in higher net interest expense, preferred stock dividend requirements and higher common stock share count and (b) potential impacts of the pending Houston Electric rate case. CenterPoint Energy is unable to present a quantitative reconciliation of forward-looking adjusted income and adjusted diluted earnings per share because changes in the value of ZENS and related securities and mark-to-market gains or losses resulting from the company's Energy Services business are not estimable as they are highly variable and difficult to predict due to various factors outside of management's control. These excluded items, along with the excluded impacts associated with the merger and potential impacts of the pending Houston Electric rate case, could have a material impact on GAAP reported results for the applicable guidance period.

Management evaluates the company's financial performance in part based on adjusted income and adjusted diluted earnings per share. Management believes that presenting these non-GAAP financial measures enhances an investor's understanding of CenterPoint Energy's overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods. The adjustments made in these non-GAAP financial measures exclude items that Management believes does not most accurately reflect the company's fundamental business performance. These excluded items are reflected in the reconciliation tables of this news release, where applicable. CenterPoint Energy's adjusted income and adjusted diluted earnings per share non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, income available to common shareholders and diluted earnings per share, which respectively are the most directly comparable GAAP financial measures. These non-GAAP financial measures also may be different than non-GAAP financial measures used by other companies.


  Quarter Ended September 30, Nine Months Ended September 30,
  2019 2018 2019 2018
Revenues:        
Utility revenues$1,539$1,299$5,255$4,534
Non-utility revenues1,2039133,8163,019
Total2,7422,2129,0717,553
Expenses:        

Utility natural gas, fuel and purchased power

 

1791341,178959

Non-utility cost of revenues, including natural gas

 

8528643,0132,927
Operation and maintenance8715672,6161,714
Depreciation and amortization334326987982
Taxes other than income taxes11495353307
Total2,3501,9868,1476,889
Operating Income392226924664
Other Income (Expense):        
Gain on marketable securities594320666
Loss on indexed debt securities(62)(44)(216)(316)
Interest and other finance charges(134)(90)(389)(259)
Interest on Securitization Bonds(9)(16)(31)(46)
Equity in earnings of unconsolidated affiliates, net7781213208
Other income, net994016
Total(60)(17)(177)(331)
Income Before Income Taxes332209747333
Income tax expense625111385
Net Income270158634248
Preferred stock dividend requirement295885
Income Available to Common Shareholders$241$153$546$243

 


  Quarter Ended September 30, Nine Months Ended September 30,
  2019 2018 2019 2018
Basic Earnings Per Common Share$48$0.35$1.09$0.56
Diluted Earnings Per Common Share$0.47$0.35$1.08$0.56
Dividends Declared per Common Share$0.2875$0.2775$0.5750$0.5550
Dividends Paid per Common Share$0.2875$0.2775$0.8625$0.8325
Weighted Average Common Shares Outstanding (000):    
- Basic502,228431,554501,986431,437
- Diluted505,080434,891504,838434,774
Operating Income (Loss) by Reportable Segment        
Houston Electric T&D:    
TDU$261$214$495$480
Bond Companies8132743
Total Houston Electric T&D269227522523
Indiana Electric Integrated4864
Natural Gas Distribution273241166
Energy Services2(9)64(20)
Infrastructure Services4250
Corporate and Other45(17)(5)
Total$392$226$924$664

 

  Houston Electric T&D ​ ​ ​ ​ ​
  Quarter Ended September 30, % Diff Nine Months Ended September 30, % Diff
  2019 2018 Fav/Unfav 2019 2018 Fav/Unfav
Revenues:            
TDU$776$7356%$2,043$2,0092%
Bond Companies83162(49)%270493(45)%
Total859897(4)%2,3132,502(8)%
Expenses:            
Operation and maintenance, excluding Bond Companies3573673%1,0801,056(2)%
Depreciation and amortization, excluding Bond Companies95952822934%
Taxes other than income taxes6359(7)186180(3)%
Bond Companies7514950%24345046%
Total expenses59067012%1,7911,9799%
Operating Income$269$22719%$522$523
Operating Income:            
TDU$261$21422%$495$4803%
Bond Companies813(38)%2743(37)%
Total Segment Operating Income$269$22719%$522$523
Actual MWH Delivered            
Residential11,224,25610,554,6566%24,392,14124,486,317
Total28,379,26227,014,9255%71,416,61270,346,6012%
Weather (percentage of 10-year average for service area):           
Cooling degree days110%101%9%106%104%2%
Heating degree days93%95%(2)%
Number of metered customers - end of period:            
Residential2,232,7402,188,2112%2,232,7402,188,2112%
Total2,523,4502,475,0182%2,523,4502,475,0182%

 

  Indiana Electric Integrated (1)
  Quarter Ended
 September 30, 2019
Nine Months Ended
September 30, 2019 (1)
Revenues$165$388
Utility natural gas, fuel and purchased power46112
Revenues less Utility natural gas, fuel and purchased power119276
Expenses:    
Operation and maintenance42136
Depreciation and amortization2566
Taxes other than income taxes410
Total expenses71212
Operating Income$48$64
Actual MWH Delivered    
Retail1,4163,277
Wholesale139291
Total1,5553,568
Number of metered customers - end of period:    
Residential128,381128,381
Total147,337147,337
(1) Represents February 1, 2019 through September 30, 2019 results only due to the Merger.    

 

Natural Gas Distribution (1) ​ ​ ​ ​ ​
  Quarter Ended September 30, % Diff Nine Months Ended September 30, % Diff
  2019 2018 Fav/Unfav 2019 (1) 2018 Fav/Unfav
Revenues$524$41028%$2,583$2,05826%
Utility natural gas, fuel and purchased power125120(4)%1,118972(15)%
Revenues less Utility natural gas, fuel and purchased power39929038%1,4651,08635%
Expenses:            
Operation and maintenance221183(21)%767592(30)%
Depreciation and amortization10873(48)%308210(47)%
Taxes other than income taxes4331(39)%149118(26)%
Total expenses372287(30)%1,224920(33)%
Operating Income$27$3800%$241$16645%
Throughput data in BCF            
Residential161323%16012330%
Commercial and Industrial885366%32620857%
Total Throughput1046658%48633147%
Weather (average for service area)            
Percentage of 10-year average:            
Heating degree days18%119%(101)%100%103%(3)%
Number of customers - end of period:            
Residential4,194,2323,205,91631%4,194,2323,205,91631%
Commercial and Industrial344,858255,24435%344,858255,24435%
Total4,539,0903,461,16031%4,539,0903,461,16031%
(1) Includes acquired natural gas operations February 1, 2019 through September 30, 2019 results only due to the Merger. ​ ​ ​ ​ ​ ​
  Energy Services ​ ​ ​ ​ ​
  Quarter Ended September 30, % Diff Nine Months Ended September 30, % Diff
  2019 2018 Fav/Unfav 2019 2018 Fav/Unfav
Revenues$745$920(19)%$2,846$3,065(7)%
Non-utility cost of revenues, including natural gas71689720%2,6962,99810%
Revenues less Non-utility cost of revenues, including  natural gas292326%15067124%
Expenses:            
Operation and maintenance232818%73741%
Depreciation and amortization441212
Taxes other than income taxes11
Total expenses273216%86871%
Operating Income (Loss)$2$(9)122%$64$(20)420%
Timing impacts of mark-to-market gain (loss)$(2)$1(300)%$47$(71)166%
Throughput data in BCF283307(8)%960993(3)%
Number of customers - end of period31,00030,0003%31,00030,0003%

 

  Infrastructure Services (1)
  Quarter Ended
 September 30, 2019
Nine Months Ended
September 30, 2019 (1)
Revenues$377$849
Non-utility cost of revenues, including natural gas96228
Revenues less Non-utility cost of revenues, including  natural gas281621
Expenses:    
Operation and maintenance223530
Depreciation and amortization1539
Taxes other than income taxes12
Total expenses239571
Operating Income$42$50
Backlog at period end:    
Blanket contracts$637$637
Bid contracts301301
Total$938$938
(1) Represents February 1, 2019 through September 30, 2019 results only due to the Merger. ​ ​

 

  Corporate and Other ​ ​ ​ ​ ​
  Quarter Ended September 30, % Diff Nine Months Ended September 30, % Diff
  2019 2018 Fav/Unfav 2019 (1) 2018 Fav/Unfav
Revenues$93$33,000%$215$111,855%
Non-utility cost of revenues, including natural gas68158
Revenues less Non-utility cost of revenues, including  natural gas253733%5711418%
Expenses:            
Operation and maintenance2(13)(115)%25(14)(279)%
Depreciation and amortization169(78)%4424(83)%
Taxes other than income taxes32(50)%5617%
Total expenses21(2)(1,150)%7416(363)%
Operating Income (Loss)$4$5(20)%$(17)$(5)(240)%
(1) Includes acquired corporate and other operations February 1, 2019 through September 30, 2019 results only due to the Merger. ​ ​ ​ ​ ​  

 

  Capital Expenditures by Segment ​ ​ ​
  Quarter Ended September 30, Nine Months Ended September 30,
 20192018 2019 (1) 2018
Houston Electric T & D$239$252$722$669
Indiana Electric Integrated46135
Natural Gas Distribution324170773409
Energy Services5913
Infrastructure Services1452
Corporate and Other43713735
Total$666$434$1,828$1,126
(1) Includes capital expenditures of acquired businesses from February 1, 2019 through September 30, 2019 only due to the Merger. ​ ​ ​ ​
  Interest Expense Detail ​ ​ ​
  Quarter Ended September 30, Nine Months Ended September 30,
 20192018 2019 2018
Amortization of Deferred Financing Cost$8$16$22$34
Capitalization of Interest Cost(10)(2)(29)(6)
Securitization Bonds Interest Expense9163146
Other Interest Expense13676396231
Total Interest Expense$143$106$420$305

 

  September 30,
 2019
December 31,
 2018
ASSETS ​ ​
Current Assets:    
Cash and cash equivalents$259$4,231
Other current assets3,1572,794
Total current assets3,4167,025
Property, Plant and Equipment, net20,32814,044
Other Assets:  
Goodwill5,179867
Regulatory assets2,1941,967
Investment in unconsolidated affiliates2,4692,482
Preferred units – unconsolidated affiliate363363
Other non-current assets693261
Total other assets10,8985,940
Total Assets$34,642$27,009
LIABILITIES AND SHAREHOLDERS' EQUITY ​ ​
Current Liabilities:    
Current portion of securitization bonds long-term debt229458
Indexed debt2124
Current portion of other long-term debt618
Other current liabilities2,5662,820
Total current liabilities3,4343,302
Other Liabilities:    
Accumulated deferred income taxes, net3,8513,239
Regulatory liabilities3,4812,525
Other non-current liabilities1,5161,203
Total other liabilities8,8486,967
Long-term Debt:    
Securitization bonds817977
Other13,1977,705
Total long-term debt14,0148,682
Shareholders' Equity8,3468,058
Total Liabilities and Shareholders' Equity$34,642$27,009

 

  Nine Months Ended September 30,
  2019 2018
Net income$634$248
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization1,0281,016
Deferred income taxes833
Write-down of natural gas inventory52
Equity in earnings of unconsolidated affiliates, net of distributions13(15)
Changes in net regulatory assets and liabilities(101)44
Changes in other assets and liabilities(511)341
Other, net1010
Net cash provided by operating activities1,0861,679
Net cash used in investing activities(7,775)(674)
Net cash provided by (used in) financing activities2,708(970)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash(3,981)35
Cash, Cash Equivalents and Restricted Cash at Beginning of Period4,278296
Cash, Cash Equivalents and Restricted Cash at End of Period$297$331

 

CenterPoint Energy files request to adjust natural gas distribution rates for Minnesota customers

MINNEAPOLIS, Oct. 28, 2019 - CenterPoint Energy (NYSE: CNP) today filed an application with the Minnesota Public Utilities Commission (MPUC) requesting an adjustment to distribution charges for the company's natural gas business in Minnesota.

CenterPoint Energy logo. (PRNewsFoto)

The proposed rate adjustment would support major investments in the continued safety and reliability of the approximately 14,000-mile pipeline system that serves more than 860,000 CenterPoint Energy customers in Minnesota.

Specifically, if the rate adjustment is approved, it would help cover the rising costs of infrastructure projects to replace or upgrade pipelines to prevent leaks and comply with more stringent federal pipeline regulations. It would also help cover costs related to a growing number of local road construction and other public works projects that require CenterPoint Energy to relocate pipelines and equipment. Current rates do not provide adequate revenue to cover these increased costs.

"Our customers and communities benefit from the essential investments we make to ensure the safety and reliability of our natural gas distribution system," said Brad Tutunjian, vice president of the Minnesota region for CenterPoint Energy. "For example, we are modernizing our infrastructure and replacing many existing pipelines with even more resilient materials that will maximize safety."

Tutunjian added: "About 80 percent of the homes in our Minnesota service area depend on natural gas for heat. As another winter heating season arrives, CenterPoint Energy is committed to delivering reliable, affordable clean energy that is available around the clock, even on the coldest days, to keep Minnesotans safe and warm."

With the proposed adjustment, the average residential customer bill would increase by about $4.80 per month. Currently, the average residential customer pays about $55 per month for natural gas service, with most of these costs incurred during the winter heating season.

Even with the proposed adjustment, monthly bills for the average CenterPoint Energy residential customer in Minnesota would still be nearly 35 percent lower than a decade ago, due to a decline in natural gas prices partially offset by increases in delivery rates.

Since 2013, CenterPoint Energy has invested more than $1 billion in its network of natural gas pipelines and equipment serving Minnesota customers. The company expects to invest an additional $1 billion over the next five years. These increased investments reflect an industry-wide trend, partly in response to federal pipeline regulations. If approved, the proposed new rates would result in a revenue increase of about $62 million annually, or 6.8 percent.

Major CenterPoint Energy projects in Minnesota include:

  • Inspecting, upgrading and replacing transmission and distribution pipelines as part of a comprehensive integrity program to address pipes at risk of corrosion or leaks;
  • Replacing all 43 miles of cast iron pipelines in CenterPoint Energy's Minnesota system, a project that was completed in 2017, eliminating a pipe material that contributed to methane emissions;
  • Replacing or upgrading 479 miles of unprotected or bare steel distribution pipelines;
  • Replacing 61 miles of a high-pressure, large-diameter transmission pipeline (known as the Metro Belt Line Project), originally installed in the 1940s and 1950s;
  • Replacing nearly 15,000 copper service lines;
  • Replacing and moving outside more than 89,000 indoor residential meters, with new service lines, as a safety measure to provide direct access to shut-off valves; and
  • Deploying state-of-the-art technology to quickly and efficiently detect even the smallest leaks, which supports both safety and methane reduction.

In addition to improved safety and reliability, these investments help protect the environment and prevent greenhouse gas emissions. For example, permanent replacement of all cast iron and many bare steel pipelines and the use of advanced leak detection technology have already resulted in an 18 percent reduction in methane emissions from the company's Minnesota operations since 2013.

CenterPoint Energy's request seeks approval to change the basic and delivery charges on a customer's bill, which together make up about half of the total bill and cover the costs of distributing natural gas, including operations, maintenance, taxes and other expenses. The proposed changes would affect individual monthly bills differently, depending on natural gas use and customer type.

The request does not apply to the cost of natural gas, which makes up the other half of a typical customer bill. The wholesale price of natural gas changes monthly depending on market prices. This price is passed on directly to customers with no mark-up, and CenterPoint Energy does not profit from the sale of the natural gas.

The Public Utilities Commission will likely decide on the requested rate adjustment in late 2020 or early 2021. In the meantime, the Commission will set temporary rates on an interim basis, which would take effect on Jan. 1, 2020, and remain in place until a final decision is made. The requested interim rate increase is about 5.8 percent more than the current rate.

If the final approved rates are lower than the interim rates, CenterPoint Energy would refund customers the difference, including interest. If the final approved rates are higher than the interim rates, customers would not be charged the difference. 

Public hearings will be held early next year to provide customers and other interested parties the opportunity to comment on the rate request, followed by formal hearings at the Public Utilities Commission.

Customers with questions about the proposed change to natural gas distribution rates can call CenterPoint Energy at 612-372-4727 or toll-free 800-245-2377, or visit the company's website at CenterPointEnergy.com/RateCase.

About CenterPoint Energy
Headquartered in Houston, Texas, CenterPoint Energy, Inc. is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy's competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 53.8 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $34 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words "would," "estimate," "expect," "may," "will" or other similar words are intended to identify forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events, such as future legislative and regulatory filings, actions and decisions, including the timing and impact of such actions and decisions, the amount and timing of, and expected benefits derived from, proposed investments, the impact of the proposed rate adjustments on costs of various projects, the expected impact of the proposed rate adjustments on customer bills, the performance and expected benefits of various projects, including relating to emissions reductions, expected actions in response to temporary and final approved rate changes, the projected impact to customers and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release. Factors that could affect actual results include timing and impact of future regulatory and legislative decisions, general economic conditions, effects of competition, weather variations, changes in business plans, financial market conditions and other factors discussed in CenterPoint Energy's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission.

For more information, contact
Communications
Ross Corson: 612.321.4879
Media.Relations@CenterPointEnergy.com 

SOURCE CenterPoint Energy, Inc.

CenterPoint Energy linemen head north to help Oncor restore power following tornadoes

Houston – Oct. 22, 2019 – This morning, more than 70 CenterPoint Energy linemen and support personnel departed for the Dallas area to assist Oncor with power restoration following tornadoes that struck the area Sunday night.  

Crews are expected to arrive in Dallas this afternoon, and once their working location is determined, they will work 16-hour days restoring power.

CenterPoint Energy is part of electric utility mutual assistance programs which provide access to thousands of linemen and tree trimmers from around the country to lend a hand during widespread power outage emergencies. CenterPoint Energy has been the beneficiary of this assistance several times. After Hurricane Harvey, the company received the assistance of thousands of workers from 20 states, who helped the company's crews restore power to customers within 10 days.

Over the years, CenterPoint Energy crews have restored power to hundreds of thousands of customers throughout the country who were left in the dark following hurricanes, ice storms, tornadoes and severe thunderstorms.

For updates, follow CenterPoint Energy on Facebook and Twitter.

 

CenterPoint Energy declares regular common stock dividend of $0.2875 and Series B Preferred Stock dividend of $17.5000

HOUSTON, Oct. 17, 2019 - CenterPoint Energy, Inc.'s (NYSE: CNP) board of directors today declared dividends on shares of its common stock and Series B Mandatory Convertible Preferred Stock.

CenterPoint Energy logo. (PRNewsFoto)

Common Stock Dividend

The company's board of directors declared a regular quarterly cash dividend of $0.2875 per share of common stock payable on Dec. 12, 2019 to shareholders of record as of the close of business on Nov. 21, 2019.

Series B Preferred Stock Dividend

The company's board of directors declared a regular quarterly cash dividend of $17.5000 per share on its 7.00% Series B Mandatory Convertible Preferred Stock payable on Dec. 2, 2019 to shareholders of record as of the close of business on Nov. 15, 2019. This equates to $0.8750 per depositary share (NYSE: CNPPRB), each of which represents a 1/20th interest in a share of the Series B Mandatory Convertible Preferred Stock.

Headquartered in Houston, Texas, CenterPoint Energy, Inc. (NYSE: CNP) is an energy delivery company with regulated utility businesses in eight states and a competitive energy businesses footprint in nearly 40 states. Through its electric transmission & distribution, power generation and natural gas distribution businesses, the company serves more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. CenterPoint Energy's competitive energy businesses include natural gas marketing and energy-related services; energy efficiency, sustainability and infrastructure modernization solutions; and construction and repair services for pipeline systems, primarily natural gas. The company also owns 53.8 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 14,000 employees and nearly $34 billion in assets, CenterPoint Energy and its predecessor companies have been in business for more than 150 years. For more information, visit CenterPointEnergy.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual events and results may differ materially from those expressed or implied by these forward-looking statements. Any statements in this news release regarding future events and any other statements that are not historical facts are forward-looking statements. Each forward-looking statement contained in this news release speaks only as of the date of this release.

For more information contact
Media:
Alicia Dixon
Phone 713.207.5885
Investors:
Dave Mordy
Phone 713.207.6500

 

SOURCE CenterPoint Energy, Inc.