CNP - Earnings call transcript Q2 2024 | CenterPoint Energy, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to CenterPoint Energy Second Quarter 2024 Earnings Conference Call with senior management. [Operator Instructions] I will now turn the call over to Jackie Richert, Senior Vice President of Corporate Planning, Investor Relations and Treasurer. Ms. Richert.

Jackie Richert

Good morning, and welcome to CenterPoint Energy's Second Quarter 2024 Earnings Conference Call. and quarter our results. CEO; the will our second company's Wells, Chris CFO, Foster, discuss Jason are beliefs, Management contain to forward-looking that projections discuss management. and on will certain other information topics and currently and information assumptions that will based available management's statements These subject are statements risks and forward-looking uncertainties. to

statements. upon publicly differ obligation earnings noted materials. undertake factors no in any filings our Actual results various SEC our could Form revise and update or to forward-looking materially based as XX-Q, other We

be non-GAAP the when EPS earnings certain will non-GAAP providing guidance. consolidated measure adjusted EPS. call We on today's as a discussing measures diluted referred on We non-GAAP per to basis use share of

to website. information. This reconciliation website found the methodology on on our For information material discussed guidance We to on access and announce being is be non-GAAP of how our replay presentation on news to use today's the release please our our on Information recorded. and refer call measures this website. call, can

Now I'd over to to call Jason. turn like the

Jason Wells

Jackie, Thank morning, everyone. good and you,

to I'll regulatory of our turn spending detailed financial results impact response our for and on I discussing second of briefly Hurricane time update Beryl, the and quarter. Before a of to will over our a the it very my Chris recap most for touch then more results.

share. For the second EPS per quarter, and $X.XX GAAP we reported of non-GAAP

$X.XX to reaffirming we are our full range year $X.XX. addition, of EPS In non-GAAP XXXX guidance

to are annually EPS high at XXXX. we to X% also long-term the where non-GAAP growth X% and of through XXXX, Beyond share grow our range our end expect per guidance we reaffirming dividend to mid-

our the impacted a Hurricane power We service square the mile Houston base. for our territory entire nearly of of Now preparing customers causing focus. to the area Initial mutual remain X,XXX landfall. or and store. members Houston our made approximately from Nonetheless, crew the turn Beryl of before safely of Earlier possible of worst a area days forecast and of our impact by X,XXX customer Houston X for service planned XX% million initially in Greater the spared tracking area path Electric we showed this began hurricane. Greater projected outside secured X.X in Hurricane assistance be impact would our month, Beryl outages impact. We to Beryl primary that for locations vigilant direct

across with ensure also We Texas resource the utilities to coordinated availability. region and

activating a Monday, As XX,XXX the ultimately members. we quickly on and assistance Houston Hurricane with forecast CenterPoint category assistance as powerful in called hour Early trajectory than rains, any July inland experienced since hurricane and landfall one X, heavy additional XX-mile over on morning changed, storm the mutual mutual crew flooding winds XXXX. made reached deploying Beryl up resources, in that to further

removed winter high the as been have by approximately Houston related from due customer over to facilities. very primary recent hours restoration vegetation, facilities power during as and over a winds deployed miles X,XXX lines X we weakened Houston well and Impacts such Greater sites to of over area generators In trees the We our uprooted distribution distribution our and at As on to high of freezes. poles the restored area trimmed replaced trees circuit customers conditions trees mobile our to XX,XXX were XX combination outages. process. in damage across response, XX the prior various within part years, debris X,XXX our million carried of drought as cause to rainfall, system, critical walked repair or

trees rights from Through it of discussion outside that fallen our one vegetation with our XX% of for largest vegetation the way. of management of companies, removed had

increased vegetation last challenges conditions distribution these XX the present system we to address our to the months, through Over worked proactively management.

its increased vegetation fact, the In business in year. by management Houston over XX% prior from spend our XXXX, Electric

We of years and of last seasons continue the have on challenging vegetation level infrastructure. our as management threat resulting experienced at growing lines we similar and impacts the could recognize execute the to area the X over and they a in higher invest the Houston

in In already with not addition, Hurricane weakened we management Beryl's urgency to destructive combination on highlighted which also the the our scope. vegetation winds only with trees need but execute plan,

resources doubled our miles result, trees a As nearby. with the are aggressively we riskier have and vegetation line management tackling

of trim related increase of XXXX. our XX% or a for incremental year. this This planned XX will system We December trees an to work by nearly compared miles remove X,XXX represents our to

help will hurricanes. storms will also pillars to comprehensive plan areas better our future prepare only directly address is with This have comprehensive and customer action of vegetation customer key to I frustrations concerns more response plan customers' a begun concerns. aspects respect us to the in The critical improve we response. to the a part our of our and our plan work through of walk emergency outcomes or voiced address X

withstand Our investments new and existing first help to we relates harden This accelerating wind improve basis, retrofitting as constructing using distribution system our modeling for technologies, X on accelerated to ago advanced loading. predictive national ice moved standards nearly AI the the extreme and when as of will standard more we pillar well construction at high of weather is steps to addition speed resiliency took in the to we and advanced extreme and by restoration. years adoption an our assets other proactive

previously The one ratio build will able our the hosted insufficient. available but tracker was To this informed, provided daily Second, at was customer demand of tracker been we that Since users accommodate outage Houston best-in-class communications the physical impacted we restoration server keep we a our not has time. not for May, of that and program. updates, communities many, our used a we on millions to for understand that was customers.

later of customer are launching action week. our outage more a this component one customer-oriented As communication we plan, new tracker

us It comparable to peer also provide customers cloud-based, our Texas to need a our help more levels allow will will of timely they be tracker scale information utility new customers outage new to is tracker demand. high also the which of what experience. The Our fashion. will in

strengthen our partnerships leaders. government with preparedness will coordination Effective response emergency community officials. close requires we with and government Third, and

will rapidly hire the capabilities storm of emergency vulnerable accelerate its seasoned We to close the burden ease leader help on to planning more partnerships our a help company develop and communities. response community to events

grid is are out X laid economies The of specific of in support the initial believe X. most the work build Houston. in efforts underlying States demands our Slide will We a one meets here operate of these dynamic on set and the United to that the taking actions we pillars

emergency additional reviews be experts, elected continue will and taking we independent well through from community also review learn We as and officials to stakeholders. engagement customers, actions with our as external our response internal as

Our and singular preparedness and response. goal our overarching emergency improve is to every area in of

storm, these is any after will times prepared future support, during of before, emergency. better Whether or to and it customers with we communicate be our in serve

with also delivering resilient begin initial updates consistently energy CenterPoint day focus plan, men customers to we execute while every striving on at safe, to to work our we this provide will go experience. reliable As unrelenting work to The and improve on and their an our to progress. women

nearly gas customers better footprint. to capital customer-focused X electric make our investments the to continue across X-state will for outcomes million achieve million X customers We over and

to over it turn I'll that, Chris. with And

Christopher Foster

Thanks, Jason.

updates, to communities. Jason's and customers to I Before into echo want get gratitude my our I our

to team like resilience in response speak cover today. and will I'd our emergency remarks Today, X to improving support capabilities focused efforts on of Our financial is our my I areas focus. and plan to those

First, the second our results and of details quarter guidance. financial

of brief on we're a provide Second, calendar. the making our regulatory I'll update progress

represents touch as forecasted on reaffirming Jason an costs. status our noted, midpoint Third, from our financing plans. Again, year non-GAAP growth X% of the $X.XX at $X.XX, on to guidance quarter And this actual our I'll range today, storm we $X.XX. finally, I'll provide full our XXXX capital of XXXX results deployment EPS update and are which

targeting Beyond share EPS X% high XXXX, line the per X% growth. to we per mid- of earnings in also as at well as guidance expect through end dividend where are to annually non-GAAP our growth grow range share the XXXX to reaffirming with we

shown which drivers rates on in the interim the X. recovery for also Let's as quarter driven now our earnings rate this we contributed non-GAAP into second were reported $X.XX as of from of XXXX. mechanisms the rates of detail went XXXX into that quarter, updated various Minnesota customer in $X.XX, for last January year. primarily gas growth interim second a of for ongoing XXXX. On business on effect the we the Diving X is in GAAP basis, basis, well reported which recovery results by to year of for EPS the move quarter quarter $X.XX the compared financial more $X.XX a second Slide On to the

offsetting annual organic area growth continues In extending the investors was growth. trend by X% driven growth, the X% for $X.XX strong the long-term addition, This average beneficial primarily favorable fact weather expenses May to storm. first had that to recovery we incurred attend expense. O&M items quarter increased of diverted scheduled were the the related in Partially our efforts the unfavorable was This of alike. has for customer and and more been restoration our customers Houston our derecho of in some rate quarter. the O&M interest favorable from and sustained variance favorable see to activities to to

by compared since to a quarter primarily and debt of spring the by quarter a in gas gas were territory. new of our the driven relative usage customer-driven when fund to our Weather driven service milder was last the work debt. and first Interest electric territories of XXXX, higher at primarily cost year across $X.XX Minnesota comparable $X.XX unfavorable expense unfavorable issuances

to the and on turn Gas, Railroad I'll approval of progress, where update month, we these received broader our cover and our sequentially Starting settlement. now filed. final last regulatory want now from I an Commission Texas calendar dates with to

many investments from reduced will Ford consolidated impact jurisdictions basis our Texas reminder, rate This customers a gas and ongoing a stakeholders. adjustments. on consolidation also new for benefit burden bills administrative go-forward a lower As a on our be certain for should their through now other

a filed case. case as And Moving our November on Minnesota next to of the filed X rate rate year. we reminder, last gas

occur our the hearings, on on to discussed how The of discussions case. settlement our approved And scheduled engage year, end X this we Commission in went into will previous interim depending last rate recall, year. have the middle for involved rates we the in the to parties we settled call, jurisdiction. in with XXXX may in intend were interim of on in gas are Minnesota this of Minnesota Ahead cases the As January Hearings of the those for case. you December along are mid-December far as in effect X. XXXX rates toward consider and

pending stakeholders settlement to September nonunanimous to Indiana settlement to new Hearings X. We the first approval. case. We of turning currently a statutory week be Now final rate order a to parties. continuing with the work a forward for for with look of begin what on Electric believe achieve we to outcome all the this have February will reasonable deadline

largest Electric. Houston I'll our now jurisdiction, touch on

we the regular in updates settlement in with have the to many ongoing, ALJ Over case. discussions as Those pending continue case. are last month, been our of the provide stakeholders and discussions we rate part engaged to

plan, resiliency In addition, intend at filing which the the amend following stage, stakeholders plan on after-action the potential coming review The plan input later this system to PUCT. all fluid, is of we a system resiliency with us and have emerged laid to XXXX. we concepts resiliency on Hurricane the months QX actions have This additional and execute schedule as that the anticipate to with agreed out our underlying abated reflect the but our parties on to we review system process the revised stakeholder We currently to. Beryl, PUCT. how we've allows from in work take

that next of which file Lastly, our our month, Ohio is notice a for approximately for case gas mention will billion in I rate upcoming want base. we to intent business, briefly rate $X.X

less work of plan our of their of XXXX, invested our little reflection the experienced associated of to base be recovery. meet to of the target is capital we a Slide and We investment from a remainder each billion the for XX% the as million target of shown restoration. of XXXX over normal excludes second than including In track thus target which now remain costs. $X.X the impact revised spending capital the year. related expenditure in storm the the as consider costs we've this touch excluding capital deployment conservatism of with of $XXX to Maintaining XXXX, original capital we a we version storms on and anticipated customers quarter interruptions the and communities. benefit on storm year, investments X on invested our our far storm I'll This every resiliency our Next, work of We despite have year.

total invoicing the to that impact to increase $X.X to events of an we the TCOS $X.X not million cost to investments capital distribution $XXX costs their on estimated current on little the will approximately a will result May of estimate limit that transmission the recovery the currently currently electric storm approximately Based spending is bill, customers and Although associated more filing. X%. bills average the billion our and in next are total be within could final, and residential of $X.X both the We Beryl these than include costs billion billion. with portion securitize anticipate billion to $X.X noncapital Hurricane we

As the is to of state existing TDUs authority. approximately constructive Texas effective securitize costs very recover Texas non-TCOS in a of reminder, costs and the for in million statutory are under storm excess cost mechanism of $XXX customers. storm-related to able

year towards the fourth a securitization quarter bond of this of next to As received in anticipate we proceeds with end filing expected year. result, be securitization for the

touch on want I the storm discussed. costs to just how Finally, thinking we're funding and balance our I sheet about

of our second Slide our calculation based to as on As the debt methodology shown with on Moody's of was X. end calculated aligning the FFO quarter, XX.X%

to mechanisms. our incremental relative lightest quarter due the second financing recovery tends The to interim of to timing be quarter

temporary had quarter item a cash This the that to through next normalize flow we quarter. expect also

approach, as respect the sheet. have to back, remain continue balance through of growth we step we financing fund a see need the to And impacts. year, storm we our Taking are our the in experiencing on to the end Texas, plans evolved we the with recognizing focused

planned metrics current this we long-term light should date. to guidance, into is as of remain in As $XXX which year, considered the credit incremental these maintaining not for costs, an does forward our acceleration. $XXX million in issued equity our intend be equity This pull only committed we to of change to to rather addition XXXX million

long-term quarterly calls. into in confident until been long-term upcoming instruments this as debt We mentioned also metrics equity considering in to will execution. incorporate are our higher securitization the We also anticipated content as see our would continuation received. we've issuances the enhance in proceeds credit forward our remain plans of pulling recent We

LDCs. first to thing sale sale the the proceeds good to XXXX facilitate and last filings are the with $X and we tax Commission, cash anticipate with including commissions is forward regulatory billion. late in approval constructively look We of in made to proceedings. to after mention working the I The required Louisiana filings, want Service closing the the we quarter approximately still now is anticipated of Mississippi and buyer, our of making progress along with related Mississippi Gas Louisiana Public the have and We, all to result

our to customers. a of investments the a majority of these used be Electric at reminder, capital benefit for fund Houston will proceeds As

And turn now back over with I'll to Jason. the call that,

Jason Wells

management Thank for face, our stakeholders, our challenges you, Chris. customers, our the committed we our to team remains all of delivering Regardless and of our communities, firmly investors. our legislators regulators, this

Jackie Richert

for Thank operator, you, we're Q&A. now With ready that, Jason.

Operator

from Instructions] come Partners. Guggenheim Shar first with will [Operator The Pourreza question

Shahriar Pourreza

of the rate see I answer. and tough to negotiations all the a settlement of case? bit But little a listening legislators maybe we've how current from stakeholders been do Houston guess, customers, the you Jason, Electric impacting question that in kind to commentary

Christopher Foster

And investment forums, for of or that from Greater These the answer will are we as Texas. I've the better for to Houston in be the and negotiations Ultimately, and reflected though, continued will can resiliency that of in issues be Clearly, a our for Thanks getting for is system. think important number are region continued settlement standpoint. a different better. said I question, Shar. needs occurring the

part putting to that in discussions clear again, able need these the be moving to mitigate -- continue there's forward. make need I company so that to all that And progress. the settlement communicate outages think just position to of to And of a we are risk demand ongoing we better,

Shahriar Pourreza

highlighted to Got that's a obviously, and increased needs as $XX.X you I certainly Hurricane impact it. CapEx billion Beryl of guess there? Okay. how bucketed So construct to And lastly, the level urgency more current do regulatory events the done, resiliency recent spending just even had how ramp you that then of light directionally? the be work fast upside the do bucket to in up out plan. plan with

Christopher Foster

resiliency We definitely prior focus. resiliency to Yes, were in legislation. of I think investing it's area an that

I clear week We've continue last meeting PUCT the to we think need at made to we that commitments move to heard forward. loud and forward. move

are And so with We pulled parties it. obviously system rapidly ultimately, the outside experts, and plan to while we taking case. with We'll down resiliency plan we've feedback. working refile the work in

And the for of I important about filing, which sectionalization probably investments. of years an a isolating system, support continued that example. helping In the you incremental one program. I'll pace short means proposed overall XX We more resiliency number. there's part our it the outages we proposed give of is in of minimize think

us, towards delaying a the bias think the don't it. right? to that so to XX-year that as longer we pace anything, is investment And of I I incremental resiliency kind no if need folks will revisit. a I think accelerating that's pace expect program be of think opposed

Operator

Wolfe question Research. The Fleishman with comes next from Steve

Steven Fleishman

be financing more likely there? that a the on on or we the type equity more question subordinated Should the like Any of a that's like in The content a the, plan. on on upcoming I color comment assume refinancing. first just junior could guess, convertible? So financing the

Christopher Foster

And $X.XX that of thinking versions the more of that the doesn't there that to be securitization the fair clear, plan. we a morning, pull to are end we're point guide It to pull that just billion is year. position change the piece. different And proceeds. get $XXX forward content just just into pull able next million. place as can sheet to those equity until balance comfortably be is to this from other at you XXXX hybrids in imagine, have overall total. XXXX in to It's Currently is I mentioned certainly of the say to going piece year as the looking Again, forward anticipated be probably to of the to

Steven Fleishman

then And just give how little are Okay. and in updated plan going some reacting while you kind -- could rating it's agencies spend know maybe and us event the of on color to to a the your before we see this be and securitization.

kind willingness patient. be thoughts just their to So on of

Christopher Foster

Sure thing.

here I think the Steve, we're going thinking system about aggressively to critical talking move about say do on it's Longer-term, in plan forward some fair we're plan referenced resiliency in about thinking some conversations, revised immediate moving has with work filing. obviously, in where initial XXXX a both how having QX ideally we're that subsequent also sense. forward we're the to Jason to

I the costs it this above in here. consistent securitize point. that's million $XXX think in of the had case utilities case, construct to Texas Certainly, has for state the a

in of of that its the consistent certainly overall sharing history we're so history And terms as construct. state and well

fronts, of So different a sharing conversations our we're but just moving can certainly fairly you few all how imagine, on fluid quickly activities. given

Operator

Jeremy from JPMorgan comes Securities. with Tonet question next Our

Jeremy Tonet

I wanted the on up storm to commentary. pick

response dorm in now action about, the post you items your Do at pieces looking together, the see not Electric think how feel plan to if is all respond do have can place place you a altogether. you to you everything it guess, Houston next even in how there? in out out the pulling here, I laid hurricane better Just

you you Just stand now. guys wondering how think

Jason Wells

question. Yes. for feel I do No, confident. the thanks

in customers that urgency offer consistent senate move the As threatens work the tracker Texas that region, I estimated I communicate before, the begun offers after to mentioned would why in derecho Gulf much outage have better platform of the restoration to times Coast and name storm hearing, fully no scalable to impacted That's to our Beryl. a were feel a the yesterday and by it and We practices overhaul relief with position industry-leading during if communications. that to with be we'll storm. a pace confident moving after

but that customers Hurricane relief the pain then our that we've on in front. a and giving I been that think vegetation investments lot that no that as we on why equally, confident unfortunately to it innovative experienced we working communication to offers that's the have made others And helps work during and think work, Beryl commitments resiliency the been impact they enhanced bringing the this lacked that communities. I'm target, incremental execute to for will Governor but for the information on predictive management had I Beryl, it's modeling customers it doing advance in and a of Abbott resiliency our we've meaningful

so forward. the last And but play, looking I month the of on we why Houston, city also have we confidence has that's role tough been understand the

Jeremy Tonet

Got it. And a then just here. follow-up

right of XX% mentioned Just You think prior of guess, going from I of overall, came the kind value did the can delivered has here? the during you do of you how about see hurricane? the with And that assets just what want your been also, What perform assets hardening harden to that outside ways. forward? downfall

Jason Wells

the circuits We've and we resiliency in the of hardening a over communities relief saw minimal investments. seeing damage and structural value And a again, the on transmission no We to makes to put offers deployed sectionalization that from Yes. the system system saved work we It's investments of that backbone work first customers, are outages in it the that. some our strategically, but substations. in the begun distribution sense very incremental XXX,XXX standpoint. resiliency of

moving that to the going And on acceleration grid of work the impact it's resiliency a meaningful have kind outages most the distribution from minimizing so standpoint, forward. of we'll I forward think that

our damage the our caused on really less X.X% little at you to of of The the the the poles authority though, impacting day and less outside failed. trim our out, than -- right any we issue, candidly, of outages don't XX% What of well was trees were today trees. system. And was key those as of lines structural even end the there have way. It was, were, pointed manage

We create that work trees to those the doing identify are hazards. the

trying safety for property into which are owners trees, proactively into the obviously, example, a home, as homeowner are that easily, and power issue, We easily residential as with to is line. property the those good their to access work tree could just fall address it an

But unless we granted the by homeowner. have today don't authority

And that to our work officials to so to going looking pace to at this sure that with forward. community leaders, our work address regulators make vegetation continue system can elected we threatens

Operator

And our next Campanella Barclays. question comes Nicholas with from

Nicholas Campanella

current 'XX Just as content about in on the 'XX just as debt. some the financing wanted you the at contemplate I of you Where based talked we about also to this pulling year well. this issues XX-month you end into today? follow kind of FFO some do equity forward trailing kind talked then to kind plan onetime base equity know of doing and think up into of you

Christopher Foster

Sure.

the us I think securitization But so us us do slightly up methodologies. where this if moves right, the XX.X%. which that treated differently, roughly XX.X% up this from XX% right, just to to the morning. proceeds are methodology, we to downgrade can this At above standpoint it takes of well through, Moody's, there's threshold S&P some report they you assumption morning, those in from the that you the as come imagine, differing saw

be debt. to the able period are come specific this though, the that Nick, here in about a believe up, same year, you'll through now QX but to point situation. I This last got bit proceeds. that pick of can to will in a we've really a is is you just pass that QX mind impact improving to item that the keep be where and onetime trough it's that between we have securitization time back this we see do occurs transitory imagine we me and you in a before year-end, emphasize of for FFO further Hard at is

Nicholas Campanella

Okay. I labor doubling some just And of about of spoke trimming. then the you guess efforts kind tree around the

you can Just X% you do because us this X%. remind to have

reduction recessed? deferred? And long-term how veg Does management that? about need Can do of I Does you kind an plan. I'll of that stuff O&M that just think kind be even these net leave in it's we the execute it that get kind increases? on forecast of of there. think to

Christopher Foster

Nick. question, for Thanks the

we think in overall to X% continue to in to O&M to our support practices see X% help opportunity efficiency drive reduction I O&M. that

continue have We to in highlight, we past. as the

classic a benefit of the is deploying side. example smarter of gas of generation the that -- next So on meters the smart

obviously to I So customers' in plenty see of be up to free continue efficient, opportunity but opportunity is, to we which some our accelerate think, in areas. interest, helps also other

in last And increased in 'XX. over XX% proactively as management year-over-year reduction our we XXXX that I highlighted, we vegetation year and still achieve X% X% to

in improvement to number operations I the basis, the X% We got opportunities feel needed consolidated full of scope service, but X% to reduction. a like that's achieve still that an we've to will on of investment a always company's drive across O&M make the

Operator

next question our with And Chopra Evercore. from comes Durgesh

Durgesh Chopra

of Just distribution related X the increase securitization I had questions the mentioned spending. I Chris, you think, X% that. to from will --

be level getting $X.X at are I'm still one. I that confidence to costs with First, could you and dive at billion significantly guess costs? number the billion. what in basically Or That's is, you the your higher. $X.X deep incurring taken have a

elaborate that, just over, -- -- assuming, could over if multiple what years. timeframe you're May that you over is on second, guess, I please. a X% just recovery cost And

Christopher Foster

Happy to. thing. Sure

pieces I really there's X think there.

I'll state the that one is securitization. first construct over entity the the multiple to compiling The we the mind combine would calendar into I think is, the including for stage, allow existing costs. thing first be does this occur, that in to one second keep hit terms year At of events events timeframe. in a in the

assume would that we this timeframe seek again, of at and So to this situation case ultimately end in XXXX -- there. recoveries file year for

asset-based to costs it we is here the in Beryl. already to thing mind have the Hurricane a do of kind associated of derecho relates As profile overall the that good itself, the keep both and with feel

right, most associated The primary individuals cost is commonly work doing that cost, beyond our nearly driver with the labor XX,XXX system. that on the we're

those And pretty good a morning high so billion. feel this at this we have $X.X at are the how of which forecasted informs end of do the stage, disclosure

again, to similar somewhat crews over and very saw the profile already similar derecho, as the costs going given situation and we a So with are to the XX% the in. just contracts of it's associated we're in what well those be

inform to the So it confidence gives us that today. profile you see

Durgesh Chopra

Excellent.

mentioned X%, X% guess you I many assumes clarification, bills. is I was the Just on think $X.X The going where one impact how billion collected is customer the that timeframe years? quick over Chris. that with I

Christopher Foster

Traditionally, in Texas, in statutory the requirement Sure. XX years. it's

Operator

comes with question next Stanley. Arcaro Morgan Our David from

David Arcaro

might are if resiliency. If you to able comment to comment you the outlook state to be support being -- able if from ideas I'm might pursue maybe on by that legislative here. or help might legislative there Curious -- be you in that wondering the improve just any are initiatives explored lawmakers

Jason Wells

a able do to are with in do State topics of property there up Yes. something think be vegetation outside is -- ways and previous I or a sort we of hazard is that around discussion of I on early trees different right attack that so constructive come that consistent need have of my to do couple the to question the owners. Texas, with Is of mean management. these manner obviously

look. place I think to that's obviously a

up Texas. market of sort come of is the The other unique the in here that's thing aspect

customer it's Clearly, we that each but with fact relationship. have commercial at address day, that contact we at that policy a don't yesterday, customers, on a be the not Right service we responsibility. as we there have around be that relationship want of the to constructive something with inexcusable may end of well. the state. There since lot now, was there -- information of And feedback mobile a generation. service-related have The objectives the

we than to comply in As that more the to hearing, assets by hours that a an will to to Senate Those work power I are the customer allow have that obviously, but we mentioned order, cannot XX the policymakers necessary the a load change of support with in PUCT if state. event. order want direction go we shed direction, policy without

now, a we the lot will of of different year. the think and discussed next into greater session the year obviously, I and start they end things as the focus of come legislative being there's So that approach

David Arcaro

able to just you is get Moody's. to expect Chris, for a target above the example, FFO maybe for XX%, you to back would there might wondering And when helpful. would get expect the be level range if you debt That's at target and clarify, into to back Okay. get

Christopher Foster

Sure thing.

think -- I David. sure,

that is And place. will see so what adjustment receipt think naturally S&P that I have then there the upon take proceeds from upward of again. does you'll Moody's you'll

at looking this roughly be of you'd QX So next in timeframe. year

Operator

the And Smith Julien next comes Dumoulin with question Jefferies. from

Julien Dumoulin Smith

you interest the think talk realized any we sales. the good equity about and bit to the can extent on you to some bad extent maintain to on lost storms, that whether in talked and offsets realized Just the OpEx of little a it's there's maybe to very about here takes. your Obviously, which points, thoughts there offset accelerated these in to the outlook which on near-term? positive puts the additional here guys the ultimately form guys expense and just or just 'XX, here about the the do How the of pressure the

Christopher Foster

there associated in with imagine, as a Sure storm itself. very the the thing, you near-term, usage Julien, can right, was impact

But both we had we year, as the through as work to situation related gives having where were also looking got storm of you the a saw, confidence temporarily going as adjust us X We literal reaffirm ultimately, the we've on. things response and morning, to we're it remainder that restoration.

and for in colleagues also, mentioned, been retain aid ability work able as the we as I have other our the restore to to quickly. One, well. But joined customers effectively confidence achieving who CapEx to crews base really mutual the plan

So labor that net this still morning. different interest including we're of confident reaffirmed expense, the factors, we're

Julien Dumoulin Smith

contemplated back Fair target getting for refined And enough. here certain How they mean you were different slightly then about here. And gen. mobile to of program right. All attention circumstance. more a obviously, coming the do developing I a to think with that's the a perhaps been which localized into permutations outages just various revised management otherwise there on more resiliency evaluate that ultimately, this know here? timeline here? a you there's issues because of this vegetation in these that does work And well. or distribution-related as encountered filing the how I you've amount of

Jason Wells

we units The be what on substations I pushback, I instances us comprehensive by conditions XXX to the tied focus tight systems are units its policy have larger clarify legislature shed Those that and the where were since there mentioned XXXX. strongly significant legislation of that state most passed program be amount units and for got started as load I ERCOT mobile one to I and events. gen asked and also in had [ on those objectives. restoration ] with XXXX, believe and has think We the of may was Yes. XXXX, mean in been consistent in yesterday, a utilized. been system of the legislation a was discussed, sort medium-sized storm utilized there's of there

that And the units. fall number of as soon got in increased as clarification we of the we XXXX, small

able XX I'm units to total are XX. proud that so scale of a we And to out of small

from The part storm response. we to borrowed of other utility be peers XX, the our

portfolio And so of risks, as or whether We've number I are response. meet storm yesterday, we assets different got load events a of manage shed those those kind a of needs. said

portfolio I set the them. a we policy -- risks were state of diversified maintaining change the said, we change, a for will Now obviously, as think that that we I of manage. today, if are diversified with objectives But

Jackie Richert

have to going one we're think time for I question. Operator, more

Operator

question Anthony last come Crowdell Mizuho. will our from And with Okay.

Anthony Crowdell

X what's everything I plan $X.X case, was X that as billion. Just $X.X answered. Or billion remember billion and resiliency Slide and and the look a billion number? correctly, number? else. quick be plan billion can If on above Slide on base I'm $X.X if was accomplished not $X.X $X.X X ones. I -- your would was between system the the be one If sure

Christopher Foster

we to pretty $X.X an a mind higher about sure in is of the articulation end system. the as more acceleration on thinking seeing it aggressive what ability the that's that really that in provide was to I Anthony, billion. work within we're XXXX you're Keep make accelerate doing here some here and work,

Anthony Crowdell

the earlier didn't lot due Great. service territory follow-up a on to of you are more really have in become an undergrounding than property, outages over guys to responsibility that occurred it. question, I think a of does And identified guys past? you mean maybe I any trees then your customers' years a solution

Jason Wells

an prominent to of our Yes. where It's through will more our as of efforts and today think XX% of the in But undergrounding point undergrounding think play going forward. a resiliency as damage. system. that's pretty already a what underground role But Thanks, And balance important in It's of certainly about even I question. for the it service greater often a kind Anthony. with there's is one fed are I where at push those well communities penetration kind tree it be received probably going is great significant the of the saw lines. level, customers overhead feeder and we to weakness lines

the hardened not and from where making resilient between failure, to find And sense sure point of a it so we single have balance where more have they undergrounding they're overhead to and standpoint. outage so an that are so lines, see makes I think that we

of above, prominence a an takes that greater it's but even the I all forward. bit So undergrounding of little moving would imagine

Jackie Richert

that, appreciate in. Great. dialing conclude will our that Q&A for Operator, now everyone with I the day.

the call. that, we'll with think conclude I

Operator

for XXXX CenterPoint Earnings participation, a concludes and day. good This your Conference have Quarter Second Thank Energy's Call. you

CenterPoint Energy (CNP) 30 Jul 242024 Q2 Earnings call transcript