CenterPoint Energy 2014 Annual Report Download - page 119

its service territory and CenterPoint Energy certifies to the administrative agent that CenterPoint Houston has incurred system restoration costs
reasonably likely to exceed $100 million in a consecutive twelve -
month period, all or part of which CenterPoint Houston intends to seek to
recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy
delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint
Energy’s certification or (iii) the revocation of such certification.
CenterPoint Houston’s $300 million
revolving credit facility, which is scheduled to terminate on September 9, 2019, can be drawn at
LIBOR plus 1.125% based on CenterPoint Houston’
s current credit ratings. The revolving credit facility contains a financial covenant which
limits CenterPoint Houston’s consolidated debt (excluding transition and system restoration bonds) to an amount not to exceed 65%
of
CenterPoint Houston’s consolidated capitalization.
CERC Corp.’s $600 million revolving credit facility, which is scheduled to terminate on September 9, 2019, can be drawn at LIBOR
plus
1.50% based on CERC Corp.’s current credit ratings. The revolving credit facility contains a financial covenant which limits CERC’
s
consolidated debt to an amount not to exceed 65% of CERC’s consolidated capitalization.
CenterPoint Energy, CenterPoint Houston and CERC Corp. were in compliance with all financial debt covenants as of December 31, 2014 .
Maturities. CenterPoint Energy’s maturities of long-
term debt, capital leases and sinking fund requirements, excluding the ZENS
obligation, are $641 million in 2015 , $716 million in 2016 , $911 million in 2017 , $1.1 billion in 2018 and $1.0 billion in 2019
. These
maturities include transition and system restoration bond principal repayments on scheduled payment dates aggregating $372 million in 2015
,
$391 million in 2016 , $411 million in 2017 , $434 million in 2018 and $458 million in 2019 .
Liens. As of December 31, 2014 , CenterPoint Houston’s assets were subject to liens securing approximately $102 million
of first
mortgage bonds. Sinking or improvement fund and replacement fund requirements on the first mortgage bonds may be satisfied by certification
of property additions. Sinking fund and replacement fund requirements for 2014 , 2013 and 2012
have been satisfied by certification of property
additions. The replacement fund requirement to be satisfied in 2015 is approximately $209 million
, and the sinking fund requirement to be
satisfied in 2015 is approximately $1.6 million . CenterPoint Energy expects CenterPoint Houston to meet these 2015
obligations by certification
of property additions. As of December 31, 2014 , CenterPoint Houston’s assets were also subject to liens securing approximately $2.4 billion
of
general mortgage bonds which are junior to the liens of the first mortgage bonds.
The components of CenterPoint Energy’s income tax expense were as follows:
109
(13)
Income Taxes
Year Ended December 31,
2014
2013 2012
(in millions)
Current income tax expense (benefit):
Federal
$
(20
)
$
91
$
—
State
14
23
12
Total current expense (benefit)
(6
)
114
12
Deferred income tax expense (benefit):
Federal
273
370
280
State
7
(14
)
48
Total deferred expense
280
356
328
Total income tax expense
$
274
$
470
$
340