Q4 2021 CenterPoint Energy Inc Earnings Call

Some of the key challenges in bringing renewables into year load centers.

Some some sort of.

Absolutely absolutely.

Texas on the recovery of the mobile generation I believe you said through the DC RF you get recovering you start earning on it in September was that in 2023.

That's right.

<unk>.

<unk> will be September 2023 will make each of our filing that.

I will make here. Shortly we will include the first $200 million. So some of that will fold into.

Right and will begin, earning an equity return on it in September 2022, we will make a filing for the balance of the $500 million for.

For the <unk> filing next year and so think about this is the full earnings power.

Really coming into.

Into rates and therefore into earnings as in September 2023 and beyond.

Got it so think of it more of a two step process. Some of it comes in 'twenty, two and the filing in September 'twenty two other the remaining in 2003, that's right yes.

Great and just a last question and I know, it's not a part of the core business just.

On the one of the earlier slide you talked about excluding I guess does ends from the ongoing number any thought to or is there an ability ability to monetize.

Your ownership in that or is that in your 10 year plan do you still see the company having these dense throughout the forecast.

Yes, it's a great question around <unk> and this was originally a tax deferral strategy from the delay.

19 nineties and.

The securities that we own.

For on a mark to market basis until what we exclude is essentially the mark to market volatility since it's not reflective of the ongoing earnings power of the company. However, those securities basically offset that we also have on our books.

The deferred tax bill will be due in 2029, and we are looking at ways to monetize the underlying investment defease that at an address that deferred tax liability so that it's not something that.

Sits out there until until the end of 2029.

Great. That's all I have thanks for taking my questions.

Our final question comes from the line of MCU, Kim with Goldman Sachs.

Thank you just a couple of cleanup questions. If I may one on that 2022 guidance range I know its still excluding.

Midstream, but how should we think about any of the drivers that go into the consolidated non-GAAP versus kind of how you are thinking about it before is it that really no change or is there something in there that's actually making you incrementally more positive from a from making this change.

Thanks for the question I mean, this is really about trying to simplify the story we had.

As part of sort of what I would consider to be a transition year in 2021 really focused on utility EPS is sort of the ongoing earnings power of the company now that we're out of 70% of the <unk> segment, we can focus on a consolidated basis, we're still reaffirming that 8%.

Growth of the utility segment I think that when you look at what we're excluding from earnings related to energy transfer it will actually be a net positive, but we want to make sure that the market continues to focus on the underlying earnings power of our utility businesses as we fully exited our position this year.

Okay, Yeah that makes sense and then secondly, just.

I think we had talked in the past or try to figure out the difference between your rate base CAGR over the five or 10 year period, and then the 8% EPS growth.

For our modeling purposes, how should we think about the earned ROE trajectory versus allowed.

And this five year period are we assuming kind of stable.

Earned ROE is in 'twenty, two through 'twenty, five or just to continue.

Increasing.

I guess earned ROE, so closing that gap versus a lot.

Yes, I think we have the opportunity to continue to close the gap on an earned ROE is.

It depends on the jurisdiction, but generally speaking and some of the larger jurisdictions where earnings slightly less.

Our allowed return on a pure sort of I'll call. It rate base math basis, we make up that small amount of under earning with.

I'll call it below the line activity, whether its AFDC earnings or <unk>.

Incentive revenues that.

That are more that are below the line costs.

So as we continue to focus on driving to earning our allowed return on each of our jurisdictions continue to minimize corporate and pair overhead I do think we have the opportunity to.

Continue to improve on that earnings growth profile.

Over the course of the next five years.

Got it thank you and congratulations.

Thank you.

Yes. Thank you operator, if you would I think that's going to be all NICU for now if you don't mind to go ahead and give the replay detail.

Sure.

Operator.

Today's call will be available for replay running through midnight Eastern time on March. The second this does conclude today's call you may now disconnect.