CenterPoint Receives Decision From ALJ

Citigroup has published a research report on CenterPoint Energy CNP after the company received a decision from the Administrative Law Judge (ALJ). In the report, Citigroup writes "Centerpoint received a decision from the ALJ for the Public Utility Commission of Texas (PUCT) on CNP Electric's (CEHE) rate case. As expected, the ALJ is proposing a smaller rate increase than what CNP had requested. As far as we can tell, the ALJ recommended an overall increase of $26 mm vs. CNP's $110 mm increase. All other parties proposed reductions to overall revenue requirement ranging from approximately $59 mm to $135 mm and reduction to CNP's cost allocation and rate design. A final decision by the Commission is expected within 1Q." Citigroup maintains its Buy rating and $16 price target. CenterPoint Energy closed Friday at $15.90.