The newly added $4.5 billion in planned spending is outside of the $10 billion of possible investments CenterPoint executives have identified for the next eight years.
CenterPoint’s five-year capex plan now totals $38.7 billion and its 10-year plan calls for investing $70.7 billion in various growth projects. Of that latter figure, $51.5 billion is dedicated to electric operations. The roughly $19 billion allotted to CenterPoint’s gas utilities, however, could come down as Wells and his lieutenants, who just wrapped up the $2.6 billion sale of an Ohio gas utility to National Fuel, look to further streamline their portfolio.
“We’re going to continue to evaluate those opportunities,” Wells said when asked if other divestitures could help fund the projected capex. “They’re highly efficient for our customers and stakeholders as we’ve executed those in the past. We continue to be supportive of running excellent businesses but you saw recently the benefits from the Ohio close as well.”
Wells said his team is clear about its top priority of meeting Houston’s boom with electricity. The company’s customer count grow by 2% year over year to 3.06 million as of Sept. 30 and forecasts have 3 gigawatts being energized next year to be followed by about 5 gigawatts in 2028.
“Our focus is on enabling the incredible and explosive growth that we’re experiencing and doing so efficiently for our shareholders,” Wells said.
Shares of CenterPoint (Ticker: CNP) rose nearly 2% to $41.97 after executives’ earnings report and climbed another 1.5% on Oct. 29, closing at $42.21. They are essentially flat over the past six months, which leaves the company’s market capitalization at roughly $28 billion.