CenterPoint Energy Subsidiary Closes on Low-Cost Securitization Bonds to Recover Hurricane Ike Restoration Costs
25 Novembre 2009 - 10:30PM
PR Newswire (US)
Securitization significantly lowers costs to consumers HOUSTON,
Nov. 25 /PRNewswire-FirstCall/ -- CenterPoint Energy, Inc. (NYSE:
CNP) announced today that CenterPoint Energy Restoration Bond
Company, LLC closed on the sale of $664.8 million in storm recovery
bonds, also known as securitization bonds, to recover costs
CenterPoint Energy Houston Electric, LLC (CenterPoint Energy
Houston Electric) incurred in 2008 to restore service following
Hurricane Ike. The bond offering recovers $643 million in
distribution restoration costs approved by the Texas Public Utility
Commission (PUC), plus carrying charges since September 1, 2009,
and certain bond issuance costs. (Logo:
http://www.newscom.com/cgi-bin/prnh/20020930/CNPLOGO) "Issued at
very favorable interest rates averaging 3.72 percent (on a time
weighted basis), these low-cost storm recovery bonds are expected
to save consumers approximately $417 million over the next 13 years
compared to traditional ratemaking carrying costs of 11.075
percent," said Marc Kilbride, vice president and treasurer for
CenterPoint Energy. "We appreciate the leadership and support of
Governor Perry and members of the Texas Legislature for enacting
this new legislation that enabled us to issue these bonds as well
as the hard work of Chairman Smitherman, PUC members and staff for
getting these bonds to market quickly on such favorable terms." The
principal and interest on the bonds will be recovered through a
surcharge added to the electric delivery rate paid by retail
electric providers (REPs) to CenterPoint Energy Houston Electric
for power delivered to Houston-area customers. The monthly
surcharge for a residential consumer using 1,000 kwh will be $1.76
and will be assessed to REPs for 13 years beginning today. The
surcharge is reduced by a credit of $0.71 related to deferred taxes
associated with storm restoration costs. The effect of these two
items will result in a net cost of $1.05 for residential service.
Issuance of these bonds was made possible by Texas legislation
enacted in April 2009 that permits use of securitization financing
to recover costs following hurricanes and other natural disasters
in an effort to lower costs to consumers. The legislation
authorizes the PUC to determine the recoverable costs related to
service restoration and to issue a financing order authorizing the
issuance of the bonds. This news release does not constitute an
offer to sell, or the solicitation of an offer to buy, any security
and shall not constitute an offer, solicitation or sale in any
jurisdiction in which such offering would be unlawful. 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 135 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' Forms 10-K for the
fiscal year ended December 31, 2008, CenterPoint Energy's and its
subsidiaries' Forms 10-Q for the periods ended March 31, June 30,
and September 30, 2009, and other filings with the SEC. 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, Investors, Marianne
Paulsen, +1-713-207-6500, both of CenterPoint Energy, Inc. Web
Site: http://www.centerpointenergy.com/
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