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Houston Electric – Centerpoint Energy, Inc.

Centerpoint Energy, Inc. · Jun 27, 2014 · 21 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Houston Electric – Centerpoint Energy, Inc. – slide 1
    Houston Electric Tracy Bridge, EVP & President Electric Operations
  2. Houston Electric – Centerpoint Energy, Inc. – slide 2
    Review Objectives Electric Operations Discuss why Houston Electric is a growth oriented, low risk utility Explain how technology investments create stakeholder value Discuss how rate base growth in Houston Electric translates…
  3. Houston Electric – Centerpoint Energy, Inc. – slide 3
    Houston Electric: Background , Millions TDU Operating Income1,2 600 14.5% 12.7% 11.2% ROE ROE ROE 500 400 300 496 492 474 200 5,000 sq. 100 miles 2011 2012 2013 Consistently earns at or above the authorized ROE 3% of land…
  4. Houston Electric – Centerpoint Energy, Inc. – slide 4
    Houston Economy: Diverse and Growing Service Territory is One of the Best in the Nation 2nd highest concentration of Fortune 500 company headquarters in US (25) Diversified Economy Oil/Gas, Petrochemical Health Care Aerospace…
  5. Houston Electric – Centerpoint Energy, Inc. – slide 5
    Houston Economy: Outpacing the Nation Economy Drives Continued 2% Customer Growth 2014 Economic Forecasts1 8.0% 6.0% 4.0% 6.5% 5.5% 5.3% 2.0% 2.2% 0.0% GDP % Change Unemployment Rate (%) Houston Metro. Statistical Area US…
  6. Houston Electric – Centerpoint Energy, Inc. – slide 6
    Low Business Risk Regulated Entity within the Deregulated Texas Electric Market Poles and wires assets No generation assets which reduces business, environmental, and regulatory risks Direct customers are 70 Retail Electric…
  7. Houston Electric – Centerpoint Energy, Inc. – slide 7
    Supportive Cost Recovery and Regulatory Environment Capital Recovery Mechanisms in Place 95% of capital plan eligible for recovery through mechanisms Reduces recovery lag and frequency of general rate cases No rate case planned…
  8. Houston Electric – Centerpoint Energy, Inc. – slide 8
    Constructive Relationship with Largest Municipality City of Houston Agreements The City of Houston represents 40% of our customer base Recent Significant Agreements Rate case moratorium o In effect through 2016 o Neither party…
  9. Houston Electric – Centerpoint Energy, Inc. – slide 9
    Capital Investment Continues to Grow Houston Electric , Millions 3.7 Billion 2014-2018 Capital Estimate 1,000 750-800 Capital Upside 759 800 599 600 538 481 463 389 401 428 400 781 833 718 655 666 200 0 2006 2007 2008…
  10. Houston Electric – Centerpoint Energy, Inc. – slide 10
    Benefits of Smart Grid Technology Industry Leader One of the first and largest smart meter deployments in the US 2.3 MM smart meter deployment complete One of 6 utilities to receive the maximum smart grid grant from DOE (200 MM)…
  11. Houston Electric – Centerpoint Energy, Inc. – slide 11
    Focused on Enabling Technology Improves Efficiency LED street lights o 140 MM capital potential Source: Philips, Roadstar GPLS o 60% more efficient vs traditional Improves Resiliency Back-up Control Center o 265 MM in total…
  12. Houston Electric – Centerpoint Energy, Inc. – slide 12
    5.6 Billion Projected 2018 Rate Base Houston Electric , Millions Projected Average Rate Base 6,000 5,608 5,387 5,088 5,000 4,627 4,172 4,000 3,886 3,000 2013A 2014F 2015F 2016F 2017F 2018F Estimated average annual rate…
  13. Houston Electric – Centerpoint Energy, Inc. – slide 13
    Normalized Operating Income Growth1 Projecting Strong Growth at the TDU Estimated normalized Op. Income growth: 5-6% CAGR, 2013- 2018 Upside normalized Op. Income growth: 6-7% CAGR, 2013- 2018 Short-term (1-2 yrs.): Slower…
  14. Houston Electric – Centerpoint Energy, Inc. – slide 14
    Houston Electrics Value Proposition Continued strong customer Increased capital investment growth One of the fastest growing service territories in the nation Higher rate base growth rate 5-Year CAGR: 7-10% Industry leading…
  15. Houston Electric – Centerpoint Energy, Inc. – slide 15
    Summary Houston Electric Houston Electric is a low risk, growth oriented utility: Strength of the Houston economy and customer growth Operating model Industry leading technology Increasing capital requirements Comprehensive…
  16. Houston Electric – Centerpoint Energy, Inc. – slide 16
    Leadership Panel Moderated by Tracy Bridge, EVP & President Kenny Mercado SVP, Electric Operations Scott Doyle SVP, Regulatory and Government Affairs Gregg Knight VP, Customer Service T. Bridge K. Mercado S. Doyle G. Knight…
  17. Houston Electric – Centerpoint Energy, Inc. – slide 17
    Appendix
  18. Houston Electric – Centerpoint Energy, Inc. – slide 18
    Houston Import Project Growth on Top of Growth Double-circuit 345 kV 130 mile line 590 MM transmission project In service date: Summer 2018 In rates: Fall 2018 Capital not in current estimate PUCT Docket 42476 04/08/2014:…
  19. Houston Electric – Centerpoint Energy, Inc. – slide 19
    Recovery Mechanisms Reduce Lag and Mitigate Need for Rate Cases Mechanism Recovers Filing Timeline Requirements/Expectations/Lag Overall earned ROE must be < authorized ROE Annually in April Filing for increases in net distribution…
  20. Houston Electric – Centerpoint Energy, Inc. – slide 20
    Continued 2% Customer Growth 2% CAGR since inception vs. 0.84% nationally1 25-30 million of additional revenue each year due to customer growth Metered Customer Growth 2,500,000 2,400,000 2,300,000 2,200,000 2,100,000…
  21. Houston Electric – Centerpoint Energy, Inc. – slide 21
    Houston Electric Capital Plan Investment Categories (, millions) 900 759 781 833 800 718 655 666 700 600 500 400 300 200 100 0 2013A 2014F 2015F 2016F 2017F 2018F Public & System Improvements Load Growth Interconnections…

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