CENTERPOINT ENERGY INC Q3 FY2024 earnings call

• Acknowledged sympathy for communities impacted by hurricanes Helene and Milton, and highlighted utility community's mutual assistance in restoration efforts. CenterPoint sent personnel to assist with Hurricane Helene and Milton. - Provided update on Greater Houston Resiliency Initiative (GHRI), including removing 2,000 line miles of higher-risk vegetation, replacing over 1,100 poles, installing over 300 automated reliability devices, launching new outage tracker on August 1, and hiring senior emergency preparedness/response and communications leaders. - Discussed regulatory efforts: Houston Electric withdrew rate case filing, intends to file new rate case by June 30, 2025; Indiana Electric rate case pending final order by Feb 3, 2025; Minnesota Gas had settlement talks; Ohio Gas filed Notice of Intent for general rate case. - Highlighted organic growth in Texas, especially Greater Houston region, with potential peak load increase by 30% by 2030 driven by population growth, electrification, data centers, etc.

No detailed product segment financial performance with absolute terms and revenue contribution % provided in the transcript.

• Reaffirmed full-year 2024 non-GAAP EPS guidance range of $1.61 to $1.63 per share. - Initiated 2025 non-GAAP EPS guidance target range of $1.74 to $1.76 per share, midpoint of which is 8% growth from 2024 midpoint. - Reaffirmed longer-term guidance for non-GAAP EPS growth at mid- to high end of 6% to 8% annually through 2030, with dividend per share growth in line with earnings per share growth.

• Regulatory uncertainties related to rate cases in various jurisdictions. - Storm-related cost uncertainties and potential impact on customer bills. - Uncertainties in achieving expected resiliency and reliability improvements as planned.

Q: On 2025 guidance, confidence drivers and impact of Houston Electric rate case withdrawal.

A: Confidence driven by 11% rate base CAGR over last two years, new base rates in three jurisdictions in 2025, and access to recovery mechanisms except Ohio rate case. Houston Electric rate case withdrawal not a real driver for 2025 due to other factors.

Q: On equity and funding of incremental resiliency investments.

A: Expect to efficiently raise equity with past track record, $3 billion gross cash proceeds from asset sales and securitization issuances in next 12-18 months, and equity plan guidance of $2.5 billion through 2030 with back-end loading.

Q: On Texas load growth and ERCOT update.

A: Potential incremental load growth in ERCOT update, with high confidence in at least 30% peak load increase by 2030, including hydrogen and data center activity.

Q: On rating agencies and metrics.

A: Rating agencies watch securitization filings and regulatory construct, adjusted FFO to debt at 13.8%, expecting improvement with securitization proceeds and balance sheet focus.

Q: On stakeholder conversations in Texas post-GHRI Phase I.

A: Stakeholders want more resilient system, improved communications, and progress on segmentation and automation in GHRI Phase II, which will save 125 million outage minutes annually.

Q: On 2024 guide and offsets.

A: Confidence in maintaining 2024 guide due to trackers benefit, incremental work in Q3, and offsetting of O&M drag with other factors.

Q: On temporary generation portfolio and transmission outlook.

A: Focus on large units and load shed compliance, potential transmission upside with 765 kV projects and ERCOT's speculative load update.

Q: On mobile generation and legislative impact.

A: State's short dispatchable generation, working with stakeholders to find solution for load shed compliance, and data center growth impacting transmission planning.