The company remains on track to make $43 billion in capital expenditures through 2030, and may add another $3 billion to its capital spending plans.
CenterPoint Energy increased its revenues and shareholder earnings during the first quarter of 2023, with much of the growth the result of interim rate increases in Texas, according to an April 27 company call with financial analysts.
CenterPoint officials also said the company remains on track to make $43 billion in capital expenditures through 2030, and may add another $3 billion to its capital spending plans depending on legislative outcomes and other factors.
During the call with financial analysts, CenterPoint Chief Executive Officer Dave Lesar said the company made more than $1 billion in capital expenditures during the first quarter of 2023 including $300 million for its electric utility systems, and $800 million for its natural gas utility systems. It plans to make $3.6 billion in capital expenditure in 2023 and has made more than $8 billion over the last two years.
Officials said approximately 80 percent of its capital expenditures can be recovered through interim rate adjustments, and completed within 12 months. For its electric business in Texas, those interim adjustments include the Distribution Cost Recovery Factor (“DCRF”), the Temporary Emergency Electric Energy Facilities (“TEEEF”) rider and the Transmission Cost of Service (“TCOS”) rider. For its gas business, the company obtains interim rate increases through the Gas Reliability Infrastructure Program (“GRIP”).
Details of recent interim rate filings include the following:
- The company filed a $60 million GRIP case in March, with new GRIP charges going into gas rates during the second quarter.
- The company filed a $40 million TCOS case in March 2023, with charges going into electric rates in May.
- The company filed a DCRF April for $162 million — an increase of over $85 million from last year. Recovery in electric rates is anticipated beginning in September 1.
- The PUC on April 5 approved a $200 million TEEEF filing, that included a $39 million revenue requirement.
- The company filed a second TEEEF in April, seeking recovery of additional $188 million revenue requirement — or an increase of $149 from its previous filing.
Company officials also said it received $1.1 billion in securitization proceeds in March relating to excess gas costs from Winter Storm Uri. The bonds were issued by the state of Texas, and are to be retired through ratepayer charges unless the Texas Legislature intervenes.
Separate securitization charges are expected to roll off electric bills in 2024. These charges account for approximately 5 percent of average residential customer bills, according to CenterPoint.
CenterPoint Energy is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas. As of December 31, 2022, the company owned approximately $38 billion in assets, and employed approximately 9,000 people.
More information about the company’s earnings call, including an associated presentation, can be found at https://investors.centerpointenergy.com/events.