CenterPoint Raises Earnings and Expands Capital Plan
CenterPoint increased its 10-year capital plan by $1.2 billion to $66.7 billion without raising its equity-financing guide.
CenterPoint Energy (CNP), the Houston-based electric and natural-gas utility, increased second-quarter non-GAAP earnings to $0.40 a share from $0.29 a year earlier, while GAAP earnings rose to $0.37 from $0.30.
The year-over-year gain extended CenterPoint's regulated-growth trajectory, though earnings moderated from the first quarter. GAAP earnings declined sequentially from $0.48 a share, non-GAAP earnings fell from $0.56, and net income decreased to $244 million from $316 million.
Growth and regulatory recovery contributed $0.10 a share of year-over-year favorability, easing from $0.11 in the first quarter and $0.12 in the fourth quarter of 2024. The drag from interest expense narrowed to $0.01 a share from $0.04 in the prior quarter, while weather and usage remained unfavorable by $0.01 a share.
Operating and maintenance costs provided a $0.02-a-share year-over-year benefit after weighing on results by the same amount in the fourth quarter. A Texas Energy Efficiency Expense Factor adjustment increased to $19 million, or $0.03 a share, from $12 million, or $0.02 a share, a year earlier.
CenterPoint also expanded its view of prospective Houston-area electricity demand. More than 17 gigawatts was submitted through ERCOT's Batch Zero process, and about 14 gigawatts is expected to qualify as base or studied load by 2031, equivalent to more than 65% of Houston Electric's current peak demand.
The updated disclosure followed CenterPoint's first-quarter estimate of 12.2 gigawatts of firmly committed industrial load and 8 gigawatts of data-center projects expected online by 2029. The company increased its projection for customer savings from Greater Houston load growth to at least $5 billion over the next decade from approximately $4 billion.
CenterPoint reiterated 2024 non-GAAP earnings guidance of at least the midpoint of $1.89 to $1.91 a share for a second consecutive quarter. That midpoint represents 8% growth from 2023.
The larger capital plan followed a $500 million increase announced with fourth-quarter results, taking planned investment from $65.5 billion to $66.7 billion. The latest expansion would not raise its equity-financing guide, leaving load growth to support a larger spending program without an accompanying increase in planned equity issuance.