CenterPoint Energy (CNP) 17 Feb 232022 Q4 Earnings call transcript

Good morning, and welcome to CenterPoint Energy's Fourth Quarter 2022 Earnings Conference Call with senior management. [Operator Instructions] I will now turn the call over to Jackie Richert, Vice President of Investor Relations and Treasurer. Ms. Richert?

Good morning, everyone. Conference Earnings CenterPoint's to Call. Welcome CEO; Dave will results. Wells, COO, Jason the Lesar, company's XXXX our discuss year fourth our full and quarter and

will statements beliefs, assumptions and information contain currently statements that management. certain to and are forward-looking These risks to forward-looking that management's information and subject Management projections on based available discuss are topics other will undertake Form our results various or any factors in We our upon earnings revise differ and as filings based XX-K, obligation materially could SEC update uncertainties. forward-looking Actual other to statements. no materials. noted publicly and

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

and release and under both be our our guidance, the on information of Investors providing in can website. guidance non-GAAP presentation, news refer used For to earnings section found please methodology affiliation of which our measures on our

to This the website. use to can on we found reminder, Information being be access the material how call announce our a on recorded. is replay As website information.

Now discussion Dave. over I'd to like turn the to

this management to X.X that XXXX this and challenge. there company Thank call. weather, leading the been many joining got us amount progress employees. been I of through Since eventful, quarter Good pleased through the the really on to X mistake, love It's inflation am U.S. a you overcome global dull with to everyone has but highest team managing here believe in extreme I I now made moment, you, last make our a that its rate take a and was significant any here, historically great no seen decades. hasn't can fourth the navigating of been is They morning, Jackie. for appointed I have certainly and thank years pandemic, we nearly to CEO CenterPoint. since earnings at and operating have I

and make as and to creating we changes Through execute these Jason for up X, and COO plan a of are grow on And investors. succession sure continuing our you benefit the stepped to be that execute a unprecedented CNP's to over strategy. company took customers, have deeper in bench and when of President deliver and opportunity times, continued made careers most to we CenterPoint challenged, employees our a winning our management their January on more employees have few results help us communities as to the where our create seen,

leadership we And course, continue that our we diverse first consecutive team the firmly become the growth when than and execute most believe regarded that to execute in believe to quarter I'm quarter plans long-term more a one industry. or we is on the of what happy meeting of to started earnings team XXXX guidance share is have the one XXth exceeding I well expectations. I of fourth well. the have We in tangible, that right has industry. certainly of

our also EPS we don't the XXXX. keep CenterPoint, CAGRs and $X.XX At plan will full non-GAAP of X% growth. balance Also our in over This a grow EPS X% base rate Today, we for annual earnings year growth higher our by quarter annual of we XXXX. establishes which fourth of announced new through EPS mind, from EPS non-GAAP we non-GAAP $X.XX. in use grew XXXX for

on growing each are every We and results delivered focused our off year.

believe rate $X.XX. Jason guidance and $X.XX EPS base reaffirming targets our one XXXX present having operations, also the in of rate tightest higher the $X.XX, of new X% are by performance range duration an in industry. our to the the one having business our midpoint transparency we with guidance growth in we I at growth non-GAAP investors into ranges Today, from of our can of so the visibility longest

last in a accomplished want March we what Transfer year. We else of of became our investment Energy I pure-play highlight the in regulated to XXXX. also just complete utility divestiture with

of back into proceeds stakeholders, benefit our regulated recycle we those the For sales businesses. our

of result now a this well over As our divestiture, regulated our of utility XX% from come operations. earnings

benefit the our our invest to on landmark and closed use again, We to investors. customers further sale for for Arkansas sale and and were in received LDCs regulated Oklahoma businesses we able the once valuation proceeds a of of the both which our we

and structure of completed final integration, going Vectren We a operational benefit forward. which customers investors the steps in to financing our few aligned and resulted better

on Additionally, including the great the A.B. projects, Brown our for XXX-megawatt and this this project; the Plan gas year; wind first regulatory will earlier of year. for plant of Integrated kind with the filings Resource Indiana several early Jason renewable first facility our progress approval January of made we've in as its the Indiana discuss, securitization approval of the coal

continue to billion, it goals. achieving billion towards our with XXXX a third reliability emission $X.X $XX our we additional net finally, taking the IRP, carbon zero our we in of quarter in $XX through through grid modernization. billion XXXX, plus capital now And on to progress by plan and advance focus we from increased on investments As XX-year XXXX

to to benefits should allow the more longer alike. over to additional but customers, us us and investors in which energy customers planned continue only both This our O&M safer reduce reliable $X.X and capital provide not for term, also should billion allow additionally

the equity still in external stated be capital with current executed the have plan no past, can issuance. we As

billion potential the formally added billion additional opportunities. other On we top of capital also we've our to capital plan, $X an $X.X identified of

can said, and in it, an billion and regulatory the this when strong confident we capital will this we've minimize that we of $X operationally continue recovering into we lag the at new efficiently believe momentum CenterPoint, are we execute As was XXXX here associated it productive additional truly fund year and fold it. year. in will exciting

our turning to earnings Now guidance.

$X.XX we remarks, fourth of for a X% earned full my represents non-GAAP to the EPS rate growth a XXXX our $X.XX This As year XXXX. and top of of I for when utility compared the XXXX non-GAAP stated at EPS. quarter

and in high to our provide EPS end industry-leading is thereafter XXXX additional details expect This in an will X% results regarding later. to growth X% X% XXXX to XXXX. and continue to both Jason rate. annually the of financial through mid- non-GAAP grow the We

to above we Now capital capital let's $X.X move total to on previously quarter call. a fourth billion. of investments. billion for capital of record deployed In our bringing of the indicated various billion we fourth jurisdictions, across XXXX, what was $XXX million quarter The $X.X the our our CenterPoint third approximately year quarter $X.X invested capital

to size an already was increase expansion so. to Texas or TMC, of the facility, X years Medical expansion the begins investments or made facilitate Some it the to initial due next its over as this double its world-class of Center,

large Over will those community. a X consist also surrounding area. and of resiliency and several projects, These the years, transmission substation include next equipment. strengthening the system are substation the in reinforcing and distribution in anticipating we investments strengthening will impacting hardening This TMC and over investing $XXX new TMC current million and lines

exemplifies an as to expansion and the the which growth city remains attractive the in continued The live in Houston it work. area of TMC

worried COVID, happened. has that that it those organic not slow our just for of So growth you would post

a the jobs, of underlying a the recession, as fundamental Since Texas testament the million at Let's strength look X.X COVID of to economy Texas whole. has the nearly the state numbers. added

locally. year. adding things past We like people continuing city growth our is Amazingly, jobs XXX,XXX at now Houston with It a miracle its Looking almost Irvine, humming This nearly the year, the saw an along. this X see area by XXX,XXX million. trend to California more size just also of to in record as X Texas the Greater keeps footprint over increase saw the estimated employment added. population

entire for the and saw Dallas which nearly period, state XXXX, more XXX,XXX last the units million Housing XX,XXX people. housing combined than the permits Houston of starts during California more has over nearly area same combined XX in a year the

upside the the a existing for we that potential capital are beyond flexibility upside company. we as to see our Therefore, opportunities capital This growth support business growth plans. the billion as organic This and additional earlier. our through for XXXX growth reasons customers' own uniquely plan drive positioned is $XX believe continues of and one spend additional and residential our allows XX-year we also potential discussed I plan to just to

our in Despite among potential estimating to to the in business. many issues this rates, offset other confident growth our industry-leading always to tailwinds that which continued see approach unknown arise moving trends, as We've plan. and potential we we plan, interest ability remain of higher the and parts inflation impacting weather other assumptions, conservative execute a organic taken headwinds growth

we and today. with Additionally, various have are our our our jurisdictions of manage approved by to what are regulatory consistent return currently our regulators, across assumptions generally using we business all

bills, affordability is of of capital being With but always a potential during standpoint, impact service our to as limit from on interest priorities our plan all one the that rising perspective reliability believe customers customer these recession. high only of especially not a rates inflation, from and said, benefits We times key our investments well. also an

below or year, XXXX, Houston in that in in area, concentration spend charges of average off, and current goals, example, we result For an of combination rates. less our has inflation investments, bill the these anticipate customer securitization X% with which reduction the O&M rolling increase planned capital only our per well through should highest

decline recent natural gas pressure the which We on are encouraged prices, create downward in bills. some also by should utility

will growing for residential of our average region here system help reduce customers. in X% area the to O&M new outages perfect our Houston It industrial in for immense over the widespread should in to both investments will plan. is and more our also experiencing. a reduce Fewer and believe growth XX the These calls. base enhance around path years us organic service We and, plan a accommodate the also of turn, X% customer now the help the combination our Houston and calls, strong capital of experience is grid Houston stay the reliable modernization reductions on existing annual customer service

briefly want I also we CFO in our where Next, to discuss are search.

and been both the number the have applicants position. CFO I and Jason First, the with for of quality thrilled

So This has far, a really is the knew: great at we company. process already what job confirmed a really attractive

of a evaluating who have complementary our we rest someone in sure provide the skill fit in make are we great with to already find of candidates place. will team be process We the set and good a

a And to and shareholders year celebrate. lot so to close, have here customers, employees our was all and CenterPoint, at great a XXXX of

on execution building remain focused we and our investors maintaining for track customers. much record of But a very long-term our affordability for

continue with base. customer growing great tangible growth industry as have one we uniquely the believe are serve opportunities to we the our in better plans We of positioned most to

our execute plan. Houston customer O&M reduce organic in area give growth, to especially us opportunities can Continued our that confidence the and we

speak I all I CenterPoint. upon that forward to strong are utility premium we I us at and think say looking already for XXXX investment of building When an thesis.

past in service team surrounding the last thank Park and weather to in our This to across employees at and in the all hit CenterPoint the Finally, stayed job record X our our I area. management customers. here done employees the our unique opportunity devastated year-end recent responsibility metered want approximately the the lights the miles Pasadena cold a the stayed for for ground U.S. of the tornado well and during appreciate all especially those the and and million tornado that year, understand all on damage for that XX serve than communities and the more holidays also any work cities caused acknowledge through Houston on Deer to customers of tornado of territories in millions and CenterPoint ensure that the XX This Texas of years.

I'm going turn to With call to that, the Jason. over

inclement extreme $X.XX could throughout gratitude and theirs for helped territories quarter, in customers have periods enjoy recently January. the these weather. basis, helped with Slide us And the our start for activity talented after the Texas. ice you their parts of customers fourth for delivering to and have you, tornado crews the our GAAP shareholders. I'll and great our storms in now of by reported the to committed recently, to service of It that and employees at holidays restoration those during sincere thanks that teams those resource late shows want dedicated to for work Dave, efforts joining From call. financial the after for other who X. for I echo sacrificed our covering recent of recent a we of Thank service CenterPoint fourth so workforce a here quarter results shown XXXX. to of On EPS on quarter our the this we express our you the my Dave's morning thank all all who

the our to the we and GAAP previous full under tax sale are over in gas of the gain recognize Oklahoma a include the required of portion course quarters, of which on Arkansas on results our EPS LDCs, As GAAP year.

also also results a a include to partnership of reported gains long-term the units year. share, we the onetime more which gas Transfer the included net On discuss noncash which of a LDCs to full exposure, of related pension I'll quarterly the in tax, $X.XX per derisking charge year common The minutes. in the basis, sale previously the of addition from of $X.XX, this in few earlier our preferred and mentioned sales detail Energy

year XXXX, quarter reported XXXX we the full full $X.XX $X.XX the On compared quarter compared year for the as for of $X.XX to of non-GAAP fourth $X.XX a of of for XXXX to the in and XXXX. basis,

X% top our recovery Growth in continued grew This is the by industry-leading largely which TCOS Electric growth X%. transmission and $X.XX, through capital in Houston electric rate growth XXXX, tracker, and territory. is our of DCRF, also on electric tracker, driven an our we rate contributed This distribution recovery rate.

we residential the in strong Houston area nearly another X% over year. with continue growth last organic to increase in In addition, see growth

by offset usage a by same to quarter expense compared in as also seasonally $X.XX, quarter XXXX. interest mild of favorable in interest to XXXX. the and allocated by absorbing weather compared favorable fourth rates of to These partially related when quarter of segment more for quarter were $X.XX the primarily and XXXX driven $X.XX the of was costs driven a higher normal a extremely XXXX, midstream of to combination weather Weather higher previously drivers fourth the our in fourth

briefly O&M I a to for on moment. want touch

reduction X% the to target our to over our year X% on plan course to per We find of through XXXX. continue XX-year achieve savings opportunities average of

as to year. last the compared For year, we $X.XX were unfavorable

benefit due to during last as so hot benefits from XXXX, in summer's the forward will However, our weather This should have pull months, customers. we with of able approach used will in O&M doing remember, you were we again. favorable and consistent the for certainly weather we XXXX, to is we XXXX contemplate

continue delivering business on average. reducing pleased I can X% Overall, on our to our ability goal of remain our to drive X% efficiencies we O&M remain continue and with annually to in confident

year of the non-GAAP $X.XX XXXX EPS, As Dave mentioned, of $X.XX when using X% growth XXXX reflects increased to range we over are of midpoint $X.XX reaffirming full the which guidance guidance range. full the year previously of non-GAAP the EPS

to XXXX Beyond XXXX X% expect $X.XX, end to XXXX, X% to the thereafter the to mid- XXXX. and to from we continue $X.XX X% non-GAAP in annually grow reaffirmed high through at of EPS guidance of

on and delivering growth each Our focus continues be strong to every industry-leading year.

investments Turning capital X. to on Slide

$X the at in is increase due investments emergency from was Day. fourth or units the a to billion $X quarter mobile call. outlined year's benefit to of target investment full provided we in This our $XXX Dave of accelerated pulled our billion part in the third on last $X.X plan XX% earnings forward and generation billion over temporary we we increase billion capital our nearly as this the million of resiliency-related Analyst increase As year the the mentioned, for Much nearly $X.X quarter our XXXX. invested customers, and a our

in fourth expanding that forward was capital the capital Medical pulled Center. support to the included XXXX deployed to Texas rapidly The quarter

these energy our and by safety, continued clean focus reliability, enablement of driven investments All service. of resiliency, on our are growth

filing tracks solar developer megawatts for various accommodate projects, service, to current online approximately investments. come increases. and megawatts the Turning that the to refiled the wind. IRP plan, already solar progress made or owned of sometime facilities IURC's XXXX generation, in of and of PPAs solar ones last approximately called wind and approval contracted and in XXX approximately resource addition XXX-megawatt solar to We've expected which and early X our of goals XXXX, expect integrated project megawatts price XXX for with total generation we that These our generation-related including we in against owned good our XXX X,XXX to our on project, owned associated well to

approximately the the recent As this year. Inflation middle which Reduction Act, remaining we contract our and in the file for to proportion own expect and it namely law, our in to XX%. stands renewables said, renewable for projects, projects roughly XX% of changes and With that current additional contracted the for the included different generation of owned plan in may IRP, be we of next with

assets. provide coal-fired This guidance remaining our should upcoming IRP on

an a foundation where will this that proposals proposal the allows As look bill we've storage process conducted earlier our nearly significant coal renewable battery savings stakeholders we through forward with We generation, request this our customers dozen expense. inform year, solar to generation constructive as participants, to O&M achieve ongoing for from XXX that IRP, process. which wind, working requires mentioned than IRP IRP several before, including all-source for rather received outcome develop and a customers through efficient we help for to

Moving on update Slide regulatory broader X. to a

proceeds efforts natural securitize billion delayed. couple Texas anticipate coming approximately to in will to securitization in costs before which but of Winter Storm anticipated it in a costs. $X.X been of the related We continuing Uri, securitization jurisdictions. months have had We We year-end these proceeds incremental gas the related XXXX, receiving receiving these has

various exploring the or stakeholders to delay been our Texas pay alternatives, by for off customers. part This funds in this appropriating in surplus potentially whole including has in driven state of benefit

soon. customer-focused of supportive are and anticipate process resolution this We

Southern the Commission facilities. the to addition including cleaner stakeholders, received for this want to residents In our a to million Utility for first-of-its-kind process We outcome Indiana all allowing unique generation thank for transition filing Indiana approval securitization through achieve coal we recently of Texas is a of Indiana retirement $XXX the the customers. sources more of constructive for in working affordable related Indiana. securitization, for This in to our X costs Regulatory to approximately

Beyond related our We of of a the DCRF, the administrative continue the judges Hearings, separate traditional this temporary of to million securitizations, that of recommending which as this disappointed for law for a State don't the into portion and $XX in Texas case of received reading PUC, final the from decision, proposed the correct case. is Administrative that in recover the decision proposal constructive PUC is rates of resolution we a recovery the in distribution believe the capital at We're a units. law, PUC to the emergency recently Office the the generation in agency to we in back disallowance is September. an forward went the will from this in to look now we front

of emergency law perhaps temporary of during companies T&D reminder, were event most periods The acted and quickly these mitigate mobile half significant invested generation, we Uri, outages events measure impacts more a Texas the of would power units following significant time. customers Uri. shed our for without the the after to lawmakers Houston Texans. decisively use to of that Storm to number As measures aid weather Winter the Texas allow certain reducing in was mitigation Storm enact duration bill Winter area will into passing than severe which following where passed in extended and/or load of that can

into as to in as after our to storms. the be units recently assist these previously Metro we ice to last discussed weeks units cost fact, In area. set the the ready Austin back few recovery from just tornadoes week, get outages to children classroom throughout recent a deployed of Houston some And were efforts ago

continue to is and We for law. vigorously critical advocate have the this tool the our that manner of use and will in consistent with benefit for a of the customers we

We the expect a by end ruling on filing the quarter. final of our first XXXX

Lastly, to cover some credit-related topics.

Moody's As for Winter Storm approximately $X.X slightly to of XX% to and gas debt adjusted costs. aligning billion of as methodology, related XX% the reported Uri the outstanding with debt when FFO quarter, below fourth extraordinary was our

balance debt reminder, is a As associated the the this interest expense statewide deferring with until securitization we are issued.

commercial anticipated before the in Texas the levels start XXXX, securitization rate higher-than-expected had receiving of reason bond debt the I and As mentioned, at carrying proceeds associated floating year-end. of we with the paper why part, is which, we're

proceeds, mix those high coupon receive we pay we and a of debt. to down debt floating plan When rate

and collect over we In elevated balance of during to usage addition, also transient higher majority believe coming nature to led debt the this the which we months. of also cold, that December variable saw we as gas rate levels the in will prices be expect

few insurance to businesses, out, pension of the whereby for To item lift obligations regulatory annuity us into ago, future an obligations were previously don't entered a receive revisit derisk our roughly This related we plan pension plan to transaction discussed minutes I and divested transferred $XXX corresponding which an we assets deferral. million allowed to company.

As we on mentioned, approximately deferral of we get pension expense. X/X our previously

out, the a noncash As a result rules. under unrecognized recognized settlement lift of of which represented we losses deferred this million, charge acceleration pension the $XX of smoothing

including Through was combination by sum lump settlements, annuity in $XXX out, total X/X XXXX our rates the increase liability and pension or in an of reduced discount million. lift approximately a

fund strong cash offer a plan external in of require flow our to position to from capital, through Our XXXX. growth puts our capital being with efficient able still current us doesn't coupled that XX-year equity of industry-leading recycling operations,

Those are quarter. for my updates the

to to optimize your our stewards obligation we investment very realize continue take good to value. we express, stakeholder be of seriously and our As commitment

Now with that, I'll turn the Dave. over call to back

you, Thank Jason.

XX heard from of quarters straight expectations. meeting exceeding us you've have we or today, As

We plan are of our premium customers. continuous growth with on execution regulated, pure-play, our incremental to a opportunities a and course utility of support

you thank for of for and We'll you call over Dave, joining. turn Instructions] now Operator? all Q&A. you, the to [Operator Thank

with Shahriar from is Guggenheim [Operator Pourreza Instructions] Our Partners. first question

off debt have elevated, this metrics capital fuel. about a the of costs how on question I Deferred markets point. been start and environment obviously sort to including at you're wanted Jason, with thinking

in delay You securitization a had 'XX.

think pressures the experience parent carried and You've in of how about seen the managing the rate costs around drag resolving and $X.XX interest I these a near cost of in guess utilities term? we some XQ. should incremental across interest

Jason for and put one. ask -- me me minute yes, Let let that hat a CFO back a answer to on

that question. continue the interest to to have we challenge this everybody appreciate but can manage we the tailwinds overall. facing than days, headwinds more is these I Obviously, as rate we're we we're confident do immune headwinds not through

of of a As expense, points. let couple interest make me kind it relates to

saw First guidance quarter interest We last around is the on third rates rising initiated we conservative costs year. embedded assumptions rate 'XX that call. we in interest the

So confident of we I feel can -- that can accommodate some variability recently we've that the I haven't seen.

The second fourth thing, to on in higher quarter, and early prepared gas the we slightly with late quarter. working as balances purchasing touched costs I kind my year elevated in of capital ended higher third we it remarks, due were that

we As bit little prices come down a to off. quickly. turn balances of capital those That pressure now, should gas have pretty expect working take

as and the we in coming while interest securitization anticipate costs billion here still from then rate mentioned, will on to in the proceeds the And in reduce you Winter the $X.X defer extraordinary help overall future, expense get that receiving we Texas, variable Uri really Storm exposure.

So we that through again, feel headwinds. rate can manage any we interest confident

me, maybe rate the obviously focus there which really was be settlement the in and seem customers eventually peers points finding we've and from for base some of rate encore And had case. upcoming sort then on lastly for touching just I know the Perfect. on process the other the Texas despite data discussions. expectations confusion for PFD, just a with to relief rectified,

filing? reduction levers anticipate that a to you costs? primary you anticipate categories show it a it rate do Just you increase high from ask? the potential relief in rate Or of despite plan are even level, true-ups? do O&M what Is And seeking? Dave, of the have a you maybe deferred think revenue major 'XX enough it rate noticeable the guys base? from Is sort Is

a Well, that's handful question. of a

with We're Let run me Jason, in. it what answer try make are don't us like specific Austin and looking on might bills talk to it I that might front under to what behooves to to we to in primarily at engaged efforts in early to focused bills are or opportunities keep going Ryan it session. just get team point think put heavily happen, sure by I would any at his customer the think respect be saying, see we about this control. making would sense don't But that forward. bills put

think you and more would I just I of just be on we'll session time. we when call, a will what and And I come into watch the with us have way quarter in spring, at And this more likely anything think that any say where be that which be I first this point But all space. are our will idea don't passed. upside saying bills now, headed get see better to for might it. later

may early as Obviously, Dave I If the add. session. legislative to, we're alluded in

I don't for much at look we the us at On all requirement customer here anticipate, though, as the mind of for regulatory way a increase. point, this rate CenterPoint. front, upcoming at case of Houston in obviously, revenue Electric, top the of rates are

fairly for where O&M of of set to work you I'm look rate a done proud year case more that respect the the the equitable the have are teams O&M. we trying things offer can kind any currently case of is And in upcoming the with offset rate as that reduction would and pursue, we at where XXXX to significant that the equity we think test I trending, revenue like layer. a other

the maybe relatively way, costs regulatory little, fortunate we I addition, of in we're as very a in unlike -- deferred think assets. pretty that speaking, in fact have Encore, And

the more relative time, of keep have again, requirement of modest. the T&D company to the sort can, equitable think But I the so, revenue we layer equity And to very non-ERCOT at same companies some position a here Texas. in

prepare we fortunate a So fairly I filing. place as we're in, think, for that

did exactly Terrific. Appreciate was what That ask. it. actually trying to I

question next Credit Suisse. Nick Campanella from Our with comes

I I name. cut there, but heard think out I my

search. just something call? everyone your When off. it CFO hope I is taking Or you by to have I wanted I are time? well. the just So announced next to your intention that Is quarter tie is on the doing formally guess more here?

No.

We're board. should to quarter and I of down think handful we call, next finalist, by have candidates. the on someone announced a

it them complementary not an they in, here. As individual importantly, part interviewed skill to the making individuals for or have a I of Jason, just set have said, we getting of and get that sure more only process committee executive is broader the me, but

in we've really is candidates But the me. we call, said I think quality that with believe This been of really great we've a talked as to. pleased job, the

I would it. attest going CFO job, get and think of great a This to that. great a to is Jason out we're

comments action X were just I thought interesting. you headwind. guess, that I us then And a you Presumably, through all? be affect quantify X? to strategic you annuity bit to at could that lift-out how would it that would a more? if were I the guess, Great. that, your pursue walk maybe And Can And just

Yes.

me CFO ask on to a that. hat Jason answer back Let and put

a decision would exposure I to was annuity disposed of the derisk say that businesses What lift we've of. overall, kind out strategic to our

about think and focus handful as a of the businesses I active this CenterPoint Oklahoma. utilities to on set operating exiting Arkansas a of We've continued gas a effort and very couple of of been part in companies. strong in regulated unregulated

employees pension of And derisk are that to from is that receiving currently this annuity so, step really any tail those benefits. just a exposure

assets. pensioners. a There's for noncash. was It it this. our no the the obligation. They said, liquid market of companies really impact Insurance I As took took has on kind

rates, But cetera. to in have volatility P&L interest with exposure to changes et your don't returns, any point, we asset associated now

proud It's of here great focusing a continue that way So execute way assets to high-quality future work done on of to quarter. set a we this get it's on the derisk and really in utility strategy to our a earnings. fourth great

with next Wolfe question Fleishman Steve Our Research. comes from

proven and maybe generation Texas, this have short on it, political pretty regulatory. bit just had in level, kind be the backup So to valuable we has little of Obviously, still the recovery. time a you've high on disagreement

rate and So that just legislature, recognizing you between decision, of how kind next you're case, what about of leadership of importance commission and the the feeling political of doing? both value so are certainty

Yes.

but legislation you closely, ask and Jason follow the put little then start, for -- color topics: But at the Texas, legislature, that there main session, economic think a Grid to about you the I'll Governor stays Grid. on the with sure the I came hat of the is is Texas talk happening if and me won't in commentary. up Let state. of that big all Lieutenant development and that sort focus this Governor, provide into bit I Gambling in -- two making those of a as Grid the there's operations Gambling, his

rally So that I everyone aspect. to see of around think sort you're going

Now different It T&D in generators, another. one want obviously, The people, what The companies for legislature, another. different does thing. state. the it things mean? The means

mantra main go I laser continue on sort affordability. back think area: this I to of focused our We're customer in to

customer that deployment, everything topics. of be we O&M do those around in set that push and and in to capital So things pivoted are and focused Austin affordability reductions, going to around going -- that we're for --

it see turn I'll to that, Jason if over with maybe So to else. to say anything he wants

comments Thanks, how is Yes. Dave. Texas I Dave's Overall, echo would raised. to the that to Dave continue constructive on beyond points

more area, here, annual And to we corporate to relocations We continue state. continue see see significant XX-year of the Houston of the a specifically, Greater track growth. customer average in X% record now to amount

to constructive. it overall, So I continues very be think

operational the on front, specifically, just maybe a brief comments. More of couple

power customers a to to us in requires there's continue Texas that place We shed to of here a hours event. load -- within provide XX lot in

to continue under We standard. operate that

exceed the Winter we load system way shed Storm design. As saw the with Uri, events can

mobile to and our critical And quality are so, units generation law. reliability meeting these Texas under requirements power

I think legislators that. understand

more that. as weather, of have extreme appreciation to to I I importantly, think And a ice starting are think as hurricanes, communities of storms, we better the see the elected potential officials impact tornadoes, understand continue strategically more the back back power for our reconnect like assets can the certain hospitals, we restoration before efforts, we kids deploy tornadoes customers recent we how can bring as after that to to to did grid. school these the

And during our weather. so, of energized keep inclement help I these think powerful really periods tools to are communities

passed understood. going under here And So defend that was Texas. prepared we took that, I we're actions think we as in that's our said in the to well remarks, law the

next from comes Jeremy question Our with Tonet JPMorgan.

CenterPoint data asset to regards sale And mixed also part space, guess, witnessed sales. but points years. has appears of to bit, story LDC touch in some ever I wanted kind than asset recent across we've with portfolio Just a been of attention higher a rotation the now

what need you guys And the so, thinking ago? terms in optionality, future? has don't evolved in interest are seeing now, but And to all area? that just Granted a to your guess, sell year right you of this at in anything relative I

Okay.

Jason to me ask and answer that Let on put his hat CFO back one.

LDCs sized Thanks, any sell point that say being we to $XX interest to any Dave, did just continue have think, need we have would like significant amount to the plan to in, -- our gas want outreach. and obviously, I with, fund of this LDCs. billion efforts remains investment right moderately space, reemphasize That that don't given I I announced. the appreciate in utility systems, now, gas you the a receive equity previous I question, capital the we said, Jeremy. there tremendous

gas. We the states, incredibly operate states winter cold places are in very of constructive it either in or of that set during a natural where gets supportive

remains strong for So our particular. I interest think the assets in

sort maybe think referenced things. a as transactions, reflect few also of some of I the you

be a there the from First, sort get to the of of size buyers. needs asset largest interest possible strongest to at to sales least the moderate place

of I recently amount attracting of are LDCs The of been size have we transacted for attention. a sales think, end. on the that the gas the significant sort most smaller have, sweet have of Some the spot

pursue a talked And often premium outright. There's of is then lost interest about terms as that of we well sales. peer some utilities benefit as think gets as minority our control selling the we've past, there that maybe assets in in

assets and the we of so, to the market strong don't as deep own. it, high given the continue we And quality need do we but see to

touched And And Got together. bit That's of maybe all helpful. of bringing of gears you kind it. a here. on just shifting number times, a it this very kind but then

If you gas natural could the kind prices. of quantify see in the based on bill expect relief you decline to

about -- could how over quickly back wondering guess, you materialize flows how I your jurisdictions rate that that time? relief that and think across Just

to should our of see impact I Yes. mean really think start the customers I that February. in about

obviously periods the February. in But adjustment time purchased in, states. they gas largely, each our different in We to have of start kick clauses for different

bit Some, March. in a little

should April. the system I think feel really our in start across customers benefit on of to system-wide, average, kind of that

gas into buying kind than less half of of prices at. seeing what were we're season And the we winter

be pretty we customers should our summer about relief holds as head We're bill it into happy that, significant the months. for So and it up. hope

for we think one more time I question. have Operator,

question with last Durgesh Our Evercore Chopra from ISI. is

you section, All Slide in my X. Indiana been the IRP that just project one, questions Maybe wind the update have answered. mentioned

us Just on can project? with any you color that share

the appreciate other I Durgesh. question. Thanks,

it's days application think there. in I early the

of well approved So we anticipate But brief. in being just comments I'd stage the finalizing that project agreement, transfer the where as end given of of the probably rather towards are bill the kind filing as kind of XXXX. keep we

filed, that XX%. as of way I renewables now what an this solar highlight for this to projects for project it's the is when overall, in we of that with wind XX% roughly think and contract I phase first renewables ultimately track the resource the plan, had of previously and integrated balance. will we out well think we of to XX% about own we remarks XX% on out proposing owning that prepared this of we're we the The we're as tried own working the set objective that contracting on

objectives Plan. this round improvement first of are versus Integrated Resource the our original slight a on So as executing we

Appreciate today. the wearing all Understood. you hats

And to this hope and weekend. our Take a joining All has last everyone operator. right, That's quarter. I for thank the going want great care. for long Q&A to a everyone I call be afternoon today.

concludes Thank for This call. your earnings quarter participation. Energy's fourth you conference CenterPoint