CenterPoint Energy 2014 Annual Report Download - page 68

of $2.8 million, which included an adjustment to amortize over three years $0.5 million of expense incurred with the 2013 test year. New rates
went into effect in September 2014.
Louisiana Rate Stabilization Plan (RSP).
NGD made its 2014 Louisiana RSP filings with the Louisiana Public Service Commission on
October 1, 2014. The North Louisiana Rider RSP filing shows a revenue deficiency of $4.0 million, compared to the authorized ROE of
10.25%. The South Louisiana Rider RSP filing shows a revenue deficiency of $2.3 million, compared to the authorized ROE of 10.5%. NGD
began billing the revised rates in December 2014 subject to refund. On November 19, 2014, NGD sought permission to amend the prior year’
s
South Louisiana RSP filing to use a more representative capital structure and to adjust the filing’
s equity banding mechanism. On December 2,
2014, NGD sought permission for similar amendments to the prior year’
s North Louisiana RSP filings. The Louisiana Public Service
Commission has yet to take action on either request.
Minneapolis Franchise.
In 2014, NGD provided natural gas distribution services to approximately 124,000 customers in Minneapolis,
Minnesota under a franchise that was due to expire at the end of the year. In October 2014, the Minneapolis City Council unanimously approved
a ten-year franchise agreement with NGD, effective January 1, 2015. The agreement is renewable for two additional five-
year terms upon mutual
consent of the parties. Also in October 2014, the Minneapolis City Council unanimously approved a newly formed Clean Energy Partnership
(CEP) between the city, NGD and Xcel Energy. The CEP board includes the mayor, two council members, the city’
s coordinator and two
senior officials from each of the utilities. The board’
s work plan will include new ideas to support developing renewable energy, increasing
residential and business use of energy-efficiency programs and reducing the city’
s energy use. The new franchise agreement with NGD can be
terminated by the city after five years if the city finds, through a city council vote, that NGD is not acting in good faith to support the city’
s clean
energy goals.
Other Matters
Credit Facilities
As of February 17, 2015 , we had the following facilities (in millions):
___________________
Our $1.2 billion revolving credit facility can be drawn at the London Interbank Offered Rate (LIBOR) plus 1.25% based on our current
credit ratings. The revolving credit facility contains a financial covenant which limits our consolidated debt (excluding transition and system
restoration bonds) to an amount not to exceed 65% of our consolidated capitalization. The financial covenant limit will temporarily increase
from 65% to 70% if CenterPoint Houston experiences damage from a natural disaster in its service territory and we certify 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 we deliver our certification until the earliest to occur of (i) the completion of the
securitization financing, (ii) the first anniversary of our certification or (iii) the revocation of such certification.
CenterPoint Houston’s $300 million revolving credit facility 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
61
Execution Date Company
Size of
Facility
Amount
Utilized at
February 17, 2015 (1) Termination Date
September 9, 2011 CenterPoint Energy
$
1,200
$
170
(2)
September 9, 2019
September 9, 2011
CenterPoint Houston
300
4
(3)
September 9, 2019
September 9, 2011 CERC Corp.
600
248
(4)
September 9, 2019
(1)
Based on the consolidated debt to capitalization covenant in our revolving credit facility and the revolving credit facility of each of
CenterPoint Houston and CERC Corp., we would have been permitted to utilize the full capacity of such revolving credit facilities,
which aggregated $2.1 billion at December 31, 2014 .
(2)
Represents outstanding letters of credit of $6 million and outstanding commercial paper of $164 million.
(3)
Represents outstanding letters of credit.
(4)
Represents outstanding commercial paper.