CenterPoint Energy, Inc. (NYSE:CNP) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 10:00 am ET

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CenterPoint Energy, Inc. (NYSE:CNP) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

At this time we will begin taking questions. [Operator Instructions] Our first question is from Ali Agha and SunTrust.

Analyst
Ali Agha

Thank you, good morning .

Executive
David Mordy

Good morning Ali.

Analyst
Ali Agha

Good morning. Scott. i believe it was as recent as the last earnings call, at which you had reiterated a consolidated long-term growth rate of 5% to 7% for CenterPoint off the 18 actual base. Is that no longer operative now?

Executive
David Mordy

Ali we have postponed, talking about the growth rate until we get clarity on the earnings or on the C-HE rate case. And i think Shaw Also indicated that going forward, we intend to talk about growth excluding Enable. So, those are the two pieces that have entered into the equation now, but of those two the biggest is really getting clarity on the Houston Electric rate proceeding.

Analyst
Ali Agha

Okay. And on the rate proceeding, can you at least give us, i know you laid out some markers in the slide deck. But, to put it in some context, can you give us some sense of if this proposed decision does become final relative to expectations. How big of a negative it should be?

Executive
David Mordy

Yeah. It's clearly the PFD is not a good outcome. We've tried to communicate that. Maybe one way to think about it is relative to current rates, we've assumed that we would at least be recovering the additional investments, the $1 billion plus of investment that we have already put in service, that is not yet in rates. If we just recovered that piece. So, that would be a increase, if you will, in rates from were we were, whereas the PFD has suggested a decrease. So, that is a sizable or a notable difference. Additionally, the reductions in FFO were not anticipated as well.

We we'll be in a better position to describe the actual impacts of that as we get clarity and i just want to reiterate, while the PFD is challenging, the commission has yet to weigh in on this and we remain confident in the process and hopeful that the Commission will reach a more balanced decision as they look at the facts.

Analyst
Ali Agha

Right. And just one quick follow-up, are you still committed to all the non-utility businesses. Are they still considered core? As far as you're concerned?

Executive
David Mordy

The non-utility businesses are source of cash generation for us for our utilities. That's how we look at them. We mentioned on the last call and i'll just reiterate that our regular cadence of activity is to continually evaluate each of our businesses to figure out if they are providing the maximum value possible to shareholders and we continue to do that, on an ongoing basis.

Analyst
Ali Agha

Thank you.

Executive
David Mordy

Thank you, Ali.

Operator
Operator

Our next question is from Michael Weinstein and Credit Suisse.

Analyst
Michael Weinstein

Hi, good morning.

Executive
David Mordy

Good morning.

Analyst
Michael Weinstein

Could you a comment a little bit about your strategic plans for the non-regulated businesses, particularly the infrastructure services business. Going forward, are you, do you intend to hold on to them