Julien Dumoulin-Smith: Hi, excellent. So I just wanted to close this out, if you don’t mind, on the next quarter here as we think about the multiyear resiliency filing that, you’re going to be coming forward with, I just want to clarify this. We’ve talked a lot about the ATM, the $250 million here. We’ve talked about the asset sales. How do you think about – especially the asset sales side that, is effectively prefunding any portion of that resiliency plan, to come here in the next quarter? Just want to really clarify how much incremental equity could be coming as part of a yet higher CapEx number associated with a fully dispositive resiliency filing?
Jason Wells: Yes, Julien, thanks for the question. I mean I think what we’re trying to do, is lay out kind of the pieces here. We’ve been investing, as you know, it improved resiliency for the community here in Houston, over the last couple of years, starting kind of with resiliency now. And part of the $700 million that we increased our CapEx plan last year in 2023, by or investments directly attributable, to improving system resiliency. And then as well, when you think about this transaction, there’s the approximate $1 billion in after-tax proceeds, which really helps fund that pre-investment that I’ve been speaking about. But the other opportunity that I want to stress, is in our previous 10-year capital plan ending 2030.
We had about $1 billion of incremental investment earmarked for Louisiana, Mississippi. Upon closure of those, we’ll obviously continue to invest through the close of the sale. But after that sale closes, we’ll be able to take that $1 billion that we had allocated to Louisiana, Mississippi and redeploy it back here, largely into Houston Electric for resiliency programs. So there’s an opportunity there to get the improved recovery that, I just mentioned in my answer to Sophie. I think there’s also the opportunity – we were under earning Louisiana, Mississippi, so by redeploying that capital back in Houston Electric, redeploying it in a jurisdiction, we have a higher earned return. So there’s that kind of enhancement. So I wouldn’t necessarily look at this as incremental equity coming out of this resiliency filing.
This is again, ways to support the prefunding, the increases that we’ve seen as well as reallocating capital, to support those programs, and enhancing our long-term EPS growth plan.
Julien Dumoulin-Smith: Got it. Excellent. I know you commented on the Houston Electric ability to settle here, but the gas side of it assume the same, in terms of broad sentiments. Maybe you can speak to that a little bit more, on timing, too?
Jason Wells: Yes. No, thank you for that question. We’ve got our third settlement conference in the Texas gas rate case here, at the end of the month in February. That was what we believe is a relatively modest rate increase. And as we’ve talked about in the past, a number of customer classes, are experiencing a significant rate decrease. And so, we’re optimistic that given the constructive nature, of the request that we can kind of find a settlement. To the extent that we can’t, we would anticipate a decision in that case probably mid-summer this year. So, we’ll continue working the settlement front according to that settlement schedule. And then as I said, we have the opportunity with the Houston Electric rate case sometime mid-summer, to potentially settle that as well.
Julien Dumoulin-Smith: All right. Excellent. All right. Best of luck, guys. We’ll speak next quarter. Cheers.
Jason Wells: Thanks, Julien.
Julien Dumoulin-Smith: Thank you.
Jackie Richert: Great. Operator, with that, that will conclude our Q&A for today’s call.
Operator: This concludes CenterPoint’s Energy fourth quarter and full year earnings conference call. Thank you for your participation. You may now disconnect.
Jackie Richert: Take care, and have a nice day.
