CenterPoint Energy, Inc., Q4 2008 Earnings Call Transcript

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2009-02-25 10:03:17.0

Tags: Throughput, Call Transcript, Earnings, Pension, CenterPoint Energy Inc., Benefits, Payroll Solutions, Personal Finance, Human Resources, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Your first question comes from the line of Carl Kirst of BMO Capital.

Carl Kirst - BMO Capital Markets

Hey good morning everybody. Gary, can I just focus on the pension expense for a second is it possible to break that up as far as what you think would fall under possible regulatory allowances versus something that might be associated with say for instance the field services or something where it would just be up to the parent company, unfortunately we have to swallow?

Gary Whitlock

Okay, Karl, this is Gary. About 87% of that increase in the expense will go to gas and electric. So certainly during that, going forward certainly as we see great relief that, that will be considered in those filings.

Carl Kirst - BMO Capital Markets

Okay, and if you just hit sort of on the second question is this, with respect to looking at CenterPoint Electric, if I recollect correctly the next time you file use a 2009 test year does that the higher pension expense certainly just what we are generally seeing with the economy usage is that, I guess make for more accelerated filing in early 2010, can you help us out with what your thoughts are at this point?

Gary Whitlock

Karl, you know I think it we can file on a accelerated basis but I think it probably makes more certain that we would file. There is a provision that we would not have to go in and file that but if we see these kind of cost increases and we are not, and if we are not earning our return, we clearly will file as soon as we can in 2010.

Carl Kirst - BMO Capital Markets

Okay, and then just the second to kind of follow-up second question on the mid stream, I guess I just want to get a little bit more clarity to the extent that you can give it. What you are assuming your guidance with respect to volumes I guess I am trying to make sure I understand what your expectations are in organic basis versus what looks to be a fairly robust spend in 2009 relative to prior years?

David McClanahan

You are talking about throughput primarily --

Carl Kirst - BMO Capital Markets

Yes.

David McClanahan

Throughput we expect higher throughput and in '09 and we did in '08. What we are seeing now in the more traditional basin is a reduction in drilling. But we are seeing a very robust drilling in the shale areas which is going to more than offset kind of some of the declines we will see in more traditional basin. So we are assuming a higher throughput in '09 than we saw in '08.

 

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