CENTERPOINT ENERGY, INC. (NYSE:CNP) Files An 8-K Other EventsItem 8.01.Other Events.
On April 4, 2018, CenterPoint Energy Houston Electric, LLC (“Houston Electric”) filed an application to amend its Distribution Cost Recovery Factor (“DCRF”) with the Public Utility Commission of Texas (“PUCT”) and the municipalities in its service area. DCRF is an interim rate adjustment that, if approved, permits an electric utility to implement new rates to account for changes in distribution-invested capital since its last rate case. In 2017, the PUCT approved a DCRF revenue requirement starting September 1, 2017 of approximately $90 million, offset by approximately $29 million to refund revenue collected in excess of expenses associated with Houston Electric’s advanced metering system, and other offsets of about $3 million, resulting in a revenue requirement charged to customers of about $58 million. Under the PUCT’s 2017 order, that DCRF revenue requirement would adjust, unless changed by a subsequent DCRF application, to approximately $90 million starting September 1, 2018. In the current DCRF application, Houston Electric proposes an approximately $83 million revenue requirement starting September 1, 2018 to begin recovering approximately $503.6 million in eligible distribution capital invested in 2017, which is about $7 million less than the DCRF revenue requirement that would otherwise go into effect under the 2017 order, but about $25 million more than the $58 million in DCRF charges currently in effect. The proposed $83 million revenue requirement includes an approximately $39 million reduction to reflect the benefit of the recent change in the corporate tax rate from 35% to 21%. The DCRF application is subject to final approval by the PUCT.
About CENTERPOINT ENERGY, INC. (NYSE:CNP)
CenterPoint Energy, Inc. is a public utility holding company. The Company’s segments include Electric Transmission & Distribution, Natural Gas Distribution, Energy Services, Midstream Investments and Other Operations. Its Electric Transmission & Distribution segment provides electric transmission and distribution services to retail electric providers. Its Natural Gas Distribution segment offers intrastate natural gas sales to and natural gas transportation and distribution for residential, commercial and industrial customers. Its Energy Services segment includes non-rate regulated gas sales to, and transportation and storage services for, commercial and industrial customers. Its Midstream Investments segment includes equity investment in Enable Midstream Partners, LP (Enable) that owns, operates and develops natural gas and crude oil assets. Its Other Operations segment includes office buildings and other real estate used in its business operations and other corporate operations.
