United States

CenterPoint Energy (NYSE:CNP) faces $1.3B in restoration costs after Hurricane Beryl

Article Image

CenterPoint Energy (NYSE:CNP), a major electric and gas utility provider, announced on Tuesday that it anticipates restoration costs between $1.2 billion and $1.3 billion due to the damages inflicted by Hurricane Beryl.

The hurricane, which struck near Matagorda, Texas, earlier this month, severely impacted the company's electric delivery systems, leading to power outages for nearly 2.3 million customers.

Hurricane Beryl, characterized by winds reaching 80 mph, caused extensive damage by toppling trees and disrupting electricity infrastructure.

This event marks one of the most significant impacts on the company, which serves approximately 2.9 million electric customers across the greater Houston area and southwestern Indiana.

In addition to the current recovery efforts, CenterPoint Energy also reported expected charges of $425 million to $475 million for storm-related events that occurred in May, affecting around 922,000 customers.

Amidst recovery and restoration challenges, CenterPoint Energy is also facing legal actions.

Restaurants in the Houston area have initiated a lawsuit seeking over $100 million, accusing the company of incompetence and negligence in their power restoration processes post-Hurricane Beryl.

Despite these adversities, CenterPoint Energy reported a substantial increase in net income for the second quarter.

The company's net income available to common shareholders rose to $228 million, or 36 cents per share, up from $106 million, or 17 cents per share, in the same quarter last year.

This financial boost was aided by heightened electricity demand during the summer peak season.

Disclaimer
Grafa is not a financial advisor. You should seek independent, legal, financial, taxation or other advice that relates to your unique circumstances. Grafa is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on the information provided directly or indirectly by use of this platform.
Publisher
Grafa