CenterPoint Energy Reaches Settlement Agreement With Parties on Recovery of Costs Associated With Hurricane Ike
31 Juillet 2009 - 11:03PM
PR Newswire (US)
Recovery of $663 million subject to PUC approval HOUSTON, July 31
/PRNewswire-FirstCall/ -- CenterPoint Energy, Inc.'s (NYSE:CNP)
electric transmission and distribution subsidiary, CenterPoint
Energy Houston Electric, LLC (CenterPoint Energy Houston Electric),
announced that it has reached a settlement agreement with the
Public Utility Commission of Texas (PUC) staff and the City of
Houston in its proceeding before the PUC to recover the costs the
company incurred to restore service following Hurricane Ike, which
struck the Houston area in 2008. All other parties to the
proceeding have indicated that they will not oppose the settlement.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020930/CNPLOGO) Under
the settlement agreement, which is subject to approval by the PUC,
CenterPoint Energy Houston Electric would recover approximately
$663 million in storm recovery costs. In April, the company had
filed an application pursuant to legislation adopted in Texas in
2009 in which CenterPoint Energy Houston Electric sought to recover
approximately $678 million of such costs. The PUC is expected to
consider the settlement agreement in August. In July, CenterPoint
Energy Houston Electric filed an application with the PUC for a
financing order that would permit the company to issue low-cost
securitization bonds to recover the distribution-related portion of
the restoration costs. Of the $663 million agreed to in the
settlement agreement, approximately $643 million is related to
distribution. The exact size of the storm cost recovery bond
offering will be determined by the PUC in a proceeding currently
scheduled for hearing in September 2009. CenterPoint Energy Houston
Electric hopes to complete the regulatory process and issue those
bonds this fall. CenterPoint Energy Houston Electric plans to seek
recovery of the approximately $20 million of the storm restoration
costs that are related to transmission service through the
transmission cost of service process. CenterPoint Energy, Inc.,
headquartered in Houston, Texas, is a domestic energy delivery
company that includes electric transmission & distribution,
natural gas distribution, competitive natural gas sales and
services, interstate pipelines, and field services operations. The
company serves more than five million metered customers primarily
in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and
Texas. Assets total nearly $19 billion. With about 8,800 employees,
CenterPoint Energy and its predecessor companies have been in
business for more than 130 years. For more information, visit the
Web site at http://www.centerpointenergy.com/. This news release
includes forward-looking statements. Actual events and results may
differ materially from those projected. The statements in this news
release regarding future financial performance and results of
operations and other statements that are not historical facts are
forward-looking statements. Factors that could affect actual
results include the timing and outcome of appeals from the true-up
proceedings, the timing and impact of future regulatory,
legislative and IRS decisions, effects of competition, weather
variations, changes in CenterPoint Energy's or its subsidiaries'
business plans, financial market conditions, the timing and extent
of changes in commodity prices, particularly natural gas, the
impact of unplanned facility outages, and other factors discussed
in CenterPoint Energy's and its subsidiaries' Form 10-Ks for the
period ended December 31, 2008 and in their Form 10-Qs for the
period ended March 31, 2009 and in other filings with the
Securities and Exchange Commission. For more information contact:
Media: Leticia Lowe Phone 713.207.7702 Investors: Marianne Paulsen
Phone 713.207.6500
http://www.newscom.com/cgi-bin/prnh/20020930/CNPLOGO
http://photoarchive.ap.org/ DATASOURCE: CenterPoint Energy, Inc.
CONTACT: Media, Leticia Lowe, +1-713-207-7702, or Investors,
Marianne Paulsen, +1-713-207-6500, both of CenterPoint Energy, Inc.
Web Site: http://www.centerpointenergy.com/
Copyright