CenterPoint Energy Reports Fourth Quarter and Full Year 2007 Earnings


HOUSTON, Feb. 28, 2008 (PRIME NEWSWIRE) -- CenterPoint Energy, Inc. (NYSE:CNP) today reported net income of $108 million, or $0.32 per diluted share, for the fourth quarter of 2007 compared to $67 million, or $0.20 per diluted share, for the same period of 2006. Results for the fourth quarter of 2006 were reduced by $12 million, or $0.04 per diluted share, related to the resolution of the company's Zero Premium Exchangeable Subordinated Notes (ZENS) tax issue. Excluding this item, net income for the fourth quarter of 2006 would have been $79 million, or $0.24 per diluted share, compared to $108 million, or $0.32 per diluted share, for the fourth quarter of 2007.

Net income for the year 2007 was $399 million, or $1.17 per diluted share, compared to $432 million, or $1.33 per diluted share, for 2006. Results for the year 2006 were favorably impacted by $92 million, or $0.28 per diluted share, due to the resolution of the ZENS tax issue but were negatively impacted by $21 million, or $0.06 per diluted share, from a settlement related to the company's 2001 unbundled cost of service order (UCOS) issued by the Texas Public Utility Commission. Excluding the net effect of these items, net income for the year 2006 would have been $361 million, or $1.11 per diluted share, compared to $399 million, or $1.17 per diluted share, for the year 2007.

"I am very pleased with the overall financial results that we are reporting today," said David M. McClanahan, president and chief executive officer of CenterPoint Energy. "Our natural gas utilities showed significant improvement reflecting actions we have taken to enhance the operational and financial performance of this business. Our interstate pipelines and field services businesses turned in strong performances and our electric utility and competitive natural gas marketing businesses had a very solid year. Our company is well positioned to continue to take advantage of opportunities in each of our businesses."

OPERATING INCOME BY SEGMENT

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $104 million in the fourth quarter of 2007, consisting of $65 million from the regulated electric transmission & distribution utility operations (TDU), $10 million from the competition transition charge (CTC), and $29 million related to transition bonds. Operating income for the fourth quarter of 2006 was $96 million, consisting of $55 million from the TDU, $11 million from the CTC, and $30 million related to transition bonds. Operating income for the TDU for the fourth quarter of 2007 was positively impacted by customer growth of over 53,000 metered customers since December 2006, increased usage primarily due to favorable weather and higher revenues from ancillary services, partially offset by increased operating expenses.

Operating income for the year 2007 was $561 million, consisting of $400 million from the TDU, $42 million from the CTC, and $119 million related to transition bonds. Operating income for 2006 was $576 million, consisting of $395 million from the TDU, $55 million from the CTC, and $126 million related to transition bonds. In addition to the factors noted above, operating income for the TDU for 2007 was impacted by a full year of reduced base rates and increased spending on low income assistance and energy efficiency programs resulting from a rate settlement implemented in October 2006. In addition, operating income for 2007 included a $17 million favorable settlement related to the final fuel reconciliation of the formerly integrated electric utility. Operating income for 2006 included a $32 million charge related to the UCOS settlement and proceeds from land sales.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $89 million for the fourth quarter of 2007 compared to $34 million for the same period of 2006. The increase in operating income for the fourth quarter of 2007 resulted from the addition of over 38,000 customers since December 2006, increased customer usage, the benefit of rate increases and reduced operating expenses, partially offset by higher bad debt expense. Operating income for the fourth quarter of 2006 included a $21 million write-off for purchased natural gas costs for periods prior to July 2004, which were denied recovery by the Minnesota Public Utilities Commission.

Operating income for the year 2007 was $218 million compared to $124 million for 2006. In addition to the factors noted, operating income for 2007 benefited from a return to more normal weather.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $19 million for the fourth quarter of 2007 compared to $33 million for the same period of 2006. The decrease in operating income was due to a reduction in locational and seasonal natural gas price differentials. In addition, the fourth quarter of 2007 included a $2 million gain resulting from mark-to-market accounting compared to a $3 million gain for the same period of 2006. The fourth quarter of 2006 also included a $10 million inventory write-down of natural gas inventory to the lower of average cost or market.

Operating income for the year 2007 was $75 million compared to $77 million for 2006. For the year 2007, an increase in sales to commercial and industrial customers was more than offset by reduced opportunities for optimization of the company's pipeline and storage assets resulting from lower locational and seasonal natural gas price differentials. In addition, the year 2007 included a $10 million charge resulting from mark-to-market accounting and an $11 million inventory write-down, compared to a $37 million gain resulting from mark-to-market accounting and a $66 million inventory write-down for 2006.

Interstate Pipelines

The interstate pipelines segment reported operating income of $71 million for the fourth quarter of 2007 compared to $44 million for the same period of 2006. The increase in operating income was driven primarily by the new Carthage to Perryville pipeline, which went into commercial service in May 2007 and favorable settlements of certain state tax issues, partially offset by higher operating expenses and a write-off of project development costs. The fourth quarter of 2006 included a gain from the sale of excess gas no longer required following improvements to a storage facility and a write-off of expenses associated with a discontinued pipeline project.

Operating income for the year 2007 was $237 million compared to $181 million for 2006. In addition to the factors noted above, operating income for 2007 benefited from increased ancillary services.

Field Services

The field services segment reported operating income of $24 million for the fourth quarter of 2007 compared to $23 million for the same period of 2006. In addition to operating income, this business had equity income of $3 million in the fourth quarter of 2007 compared to a loss of $1 million in the fourth quarter of 2006 from its 50 percent interest in a jointly-owned gas processing plant. These amounts are included in Other - net under the Other Income (Expense) caption.

Operating income for the year 2007 was $99 million compared to $89 million for 2006. Operating income increased due to higher throughput and increased ancillary services, partially offset by higher operating expenses and lower commodity prices. In addition, equity income from the jointly-owned gas processing plant was $10 million for the year 2007 compared to $6 million for the year 2006. The increase was primarily due to a plant expansion.

DIVIDEND DECLARATION

On January 24, 2008, CenterPoint Energy's board of directors declared a regular quarterly cash dividend of $0.1825 per share of common stock payable on March 10, 2008, to shareholders of record as of the close of business on February 15, 2008.

OUTLOOK FOR 2008

CenterPoint Energy expects diluted earnings per share for 2008 to be in the range of $1.15 to $1.25. This guidance takes into consideration various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding the impact to earnings of various regulatory proceedings but cannot predict the ultimate outcome of any of those proceedings. In providing this guidance, the company has not projected the impact of any changes in accounting standards, any impact from acquisitions or divestitures, or the outcome of the TDU's true-up appeal.

FILING OF FORM 10-K FOR CENTERPOINT ENERGY, INC.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the fiscal year ended December 31, 2007. A copy of that report is available on the company's web site, www.CenterPointEnergy.com, under the "Investors" section. Other filings the company makes at the SEC and other documents relating to its corporate governance can also be found on that site.

WEBCAST OF EARNINGS CONFERENCE CALL

CenterPoint Energy's management will host an earnings conference call on Thursday, February 28, 2008, at 10:30 a.m. Central time or 11:30 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call at www.CenterPointEnergy.com/investors/events. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the Web site for at least one year.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $17 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.CenterPointEnergy.com.

The CenterPoint Energy logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3588

This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and outcome of appeals from the true-up proceedings, the timing and impact of future regulatory, legislative and IRS decisions, effects of competition, weather variations, changes in CenterPoint Energy's or its subsidiaries' business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned facility outages, and other factors discussed in CenterPoint Energy's Form 10-K for the period ended December 31, 2007, and other filings with the Securities and Exchange Commission.


                    CenterPoint Energy, Inc. and Subsidiaries
                        Statements of Consolidated Income
                              (Millions of Dollars)
                                   (Unaudited)

                               Quarter Ended      Twelve Months Ended
                                December 31,          December 31,
                             ------------------   ------------------
                              2006       2007      2006       2007
                             -------    -------   -------    -------

 Revenues:
  Electric Transmission &
   Distribution              $   407    $   438   $ 1,781    $ 1,837
  Natural Gas Distribution     1,079      1,158     3,593      3,759
  Competitive Natural Gas
   Sales and Services            908        864     3,651      3,579
  Interstate Pipelines            89        152       388        500
  Field Services                  36         50       150        175
  Other Operations                 3          2        15         10
  Eliminations                   (58)       (62)     (259)      (237)
                             -------    -------   -------    -------
   Total                       2,464      2,602     9,319      9,623
                             -------    -------   -------    -------
 Expenses:
  Natural gas                  1,623      1,646     5,909      5,995
  Operation and maintenance      381        409     1,399      1,440
  Depreciation and
   amortization                  147        156       599        631
  Taxes other than income
   taxes                          78         88       367        372
                             -------    -------   -------    -------
   Total                       2,229      2,299     8,274      8,438
                             -------    -------   -------    -------
 Operating Income                235        303     1,045      1,185
                             -------    -------   -------    -------
 Other Income (Expense) :
  Gain (Loss) on Time Warner
   investment                     77        (40)       94       (114)
  Gain (Loss) on indexed
   debt securities               (67)        41       (80)       111
  Interest and other finance
   charges                      (117)      (135)     (470)      (503)
  Interest on transition
   bonds                         (32)       (30)     (130)      (123)
  Distribution from AOL Time
   Warner litigation
   settlement                     --         --        --         32
  Additional distribution
   to ZENS holders                --         --        --        (27)
  Other - net                      8         10        35         33
                             -------    -------   -------    -------

   Total                        (131)      (154)     (551)      (591)
                             -------    -------   -------    -------

 Income Before Income Taxes      104        149       494        594

 Income Tax Expense              (37)       (41)      (62)      (195)
                             -------    -------   -------    -------

 Net Income                  $    67    $   108   $   432    $   399
                             =======    =======   =======    =======

 Reference is made to the Notes to the Consolidated Financial
 Statements contained in the Annual Report on Form 10-K of
 CenterPoint Energy, Inc.

                    CenterPoint Energy, Inc. and Subsidiaries
              Selected Data From Statements of Consolidated Income
            (Millions of Dollars, Except Share and Per Share Amounts)
                                   (Unaudited)

                                  Quarter Ended    Twelve Months Ended
                                   December 31,        December 31,
                               ------------------- -------------------
                                  2006      2007      2006      2007
                               --------- --------- --------- ---------


 Basic Earnings Per Common
  Share:
  Net Income                   $    0.21 $    0.34 $    1.39 $    1.25
                               ========= ========= ========= =========
 Diluted Earnings Per Common
  Share:
  Net Income                   $    0.20 $    0.32 $    1.33 $    1.17
                               ========= ========= ========= =========


 Dividends Declared per Common
  Share                        $    0.15 $    0.17 $    0.60 $    0.68

  Weighted Average Common
   Shares Outstanding (000):
  - Basic                        313,048   321,695   311,826   320,480
  - Diluted                      334,618   342,841   324,778   342,507


 Operating Income (Loss) by
  Segment
 --------------------------
  Electric Transmission &
   Distribution:
   Electric Transmission and
    Distribution Operations    $      55 $      65 $     395 $     400
   Competition Transition
    Charge                            11        10        55        42
                               --------- --------- --------- ---------
    Total Electric Transmission
     and Distribution Utility         66        75       450       442
   Transition Bond Companies          30        29       126       119
                               --------- --------- --------- ---------
    Total Electric Transmission
     & Distribution                   96       104       576       561
  Natural Gas Distribution            34        89       124       218
  Competitive Natural Gas Sales
   and Services                       33        19        77        75
  Interstate Pipelines                44        71       181       237
  Field Services                      23        24        89        99
  Other Operations                     5        (4)       (2)       (5)
                               --------- --------- --------- ---------

  Total                        $     235 $     303 $   1,045 $   1,185
                               ========= ========= ========= =========

 Reference is made to the Notes to the Consolidated Financial
 Statements contained in the Annual Report on Form 10-K of
 CenterPoint Energy, Inc.

                   CenterPoint Energy, Inc. and Subsidiaries
                       Results of Operations by Segment
                              (Millions of Dollars)
                                  (Unaudited)

                       Electric Transmission & Distribution
            ---------------------------------------------------------
                  Quarter Ended      %      Twelve Months Ended   %
                   December 31,     Diff         December 31,    Diff
            ----------------------- Fav/  ---------------------- Fav/
                2006        2007  (Unfav)     2006       2007  (Unfav)
            ----------- ----------- ----  ----------- ---------- ----
 Results of
  Operations:
 Revenues:
  Electric
   transmission
   and
   distribution
   utility  $       346 $       373   8% $     1,516 $     1,560   3%
  Transition
   bond
   companies         61          65   7%         265         277   5%
            ----------- -----------      ----------- -----------
   Total            407         438   8%       1,781       1,837   3%
            ----------- -----------      ----------- -----------
 Expenses:
  Operation and
   maintenance      175         185  (6%)        611         652  (7%)
  Depreciation
   and
   amortization      61          61  --          243         243  --
  Taxes other
   than income
   taxes             44          52 (18%)        212         223  (5%)
  Transition
   bond
   companies         31          36 (16%)        139         158 (14%)
            ----------- -----------      ----------- -----------
   Total            311         334  (7%)      1,205       1,276  (6%)
            ----------- -----------      ----------- -----------
 Operating
  Income    $        96 $       104   8% $       576 $       561  (3%)
            =========== ===========      =========== ===========
 Operating
  Income:
  Electric
   transmission
   and
   distribution
   opera-
   tions    $        55 $        65  18% $       395 $       400   1%
  Competition
   transition
   charge            11          10  (9%)         55          42 (24%)
  Transition
   bond
   companies         30          29  (3%)        126         119  (6%)
            ----------- -----------      ----------- -----------
   Total
    Segment
    Operating
    Income  $        96 $       104   8% $       576 $       561  (3%)
            =========== ===========      =========== ===========


 Electric
  Transmission
  & Distribution
 Operating Data:
 Actual MWH
  Delivered
  Residential 4,637,585   4,939,054   7%  23,954,745  23,999,085  --
  Total      16,638,022  17,729,923   7%  75,876,929  76,290,615   1%

 Weather
  (average for
  service area):
 Percentage of
  10-year
  average:
  Cooling degree
   days             111%        140% 29%         102%        104%  2%
  Heating degree
   days              85%         76% (9%)         76%         98% 22%


 Average number
  of metered
  customers:
  Residential 1,742,580   1,790,977   3%   1,732,656   1,773,319   2%
  Total       1,979,890   2,031,504   3%   1,968,114   2,012,636   2%

                            Natural Gas Distribution
            ---------------------------------------------------------
                  Quarter Ended      %      Twelve Months Ended   %
                   December 31,     Diff         December 31,    Diff
            ----------------------- Fav/  ---------------------- Fav/
                2006        2007  (Unfav)     2006       2007  (Unfav)
            ----------- ----------- ---- ----------- ----------- ----


 Results of
  Operations:
 Revenues   $     1,079 $     1,158   7% $     3,593 $     3,759   5%
            ----------- -----------      ----------- -----------
 Expenses:
  Natural gas       811         838  (3%)      2,598       2,683  (3%)
  Operation
   and
   maintenance      165         158   4%         594         579   3%
  Depreciation
   and
   amortization      39          41  (5%)        152         155  (2%)
  Taxes other
   than income
   taxes             30          32  (7%)        125         124   1%
            ----------- -----------      ----------- -----------
    Total         1,045       1,069  (2%)      3,469       3,541  (2%)
            ----------- -----------      ----------- -----------
 Operating
  Income    $        34 $       89 (162%)$       124 $       218  76%
            =========== ===========      =========== ===========
 Natural Gas
  Distribution
  Operating
  Data:
 Throughput 
  data in BCF
  Residential        54          53   (2%)       152         172  13%
  Commercial
   and
   Industrial        64          65    2%        224         232   4%
            ----------- -----------      ----------- -----------
    Total
     Throughput     118         118   --         376         404   7%
            =========== ===========      =========== ===========
 Weather
  (average for
  service area)
 Percentage
  of 10-year
  average:
  Heating
   degree
   days              95%         93%  (2%)        88%         96%  8%

 Average
  number of
  customers:
  Residential 2,909,673   2,944,729    1%  2,883,927   2,931,523   2%
  Commercial
   and
   Industrial   244,030     248,824    2%    243,265     246,993   2%
            ----------- -----------      ----------- -----------
    Total     3,153,703   3,193,553    1%  3,127,192   3,178,516   2%
            =========== ===========      =========== ===========

 Reference is made to the Notes to the Consolidated Financial
 Statements contained in the Annual Report on Form 10-K of
 CenterPoint Energy, Inc.

                   CenterPoint Energy, Inc. and Subsidiaries
                       Results of Operations by Segment
                             (Millions of Dollars)
                                  (Unaudited)

                   Competitive Natural Gas Sales and Services
              --------------------------------------------------------
                                               Twelve
               Quarter Ended                Months Ended
                December 31,                 December 31,
              ---------------    % Diff    ---------------    % Diff
               2006     2007   Fav/(Unfav)  2006     2007   Fav/(Unfav)
              ------   ------  ----------  ------   ------  ----------
 Results of
  Operations:
 Revenues     $  908   $  864       (5%)   $3,651   $3,579       (2%)
              ------   ------              ------   ------
 Expenses:
  Natural gas    867      836        4%     3,540    3,467        2%
  Operation
   and
   maintenance     7        8      (14%)       30       31       (3%)
  Depreciation
   and
   amortization   --        1       --          1        5     (400%)
  Taxes other
   than income
   taxes           1       --      100%         3        1       67%
              ------   ------              ------   ------
   Total         875      845        3%     3,574    3,504        2%
              ------   ------              ------   ------
 Operating
  Income      $   33   $   19      (42%)   $   77   $   75       (3%)
              ======   ======              ======   ======

 Competitive
  Natural Gas
  Sales and
  Services
  Operating
  Data:
 Throughput
  data in BCF
  Wholesale -
   third
   parties        84       73      (13%)      335      314       (6%)
  Wholesale -
   affiliates      9        2      (78%)       36        9      (75%)
  Retail &
   Pipeline       46       55       20%       184      199        8%
              ------   ------              ------   ------
   Total
    Throughput   139      130       (6%)      555      522       (6%)
              ======   ======              ======   ======

 Average
  number of
  customers:
  Wholesale      140      237       69%       140      235       68%
  Retail &
   Pipeline    6,697    6,870        3%     6,590    6,801        3%
              ------   ------              ------   ------
   Total       6,837    7,107        4%     6,730    7,036        5%
              ======   ======              ======   ======

                               Interstate Pipelines
              --------------------------------------------------------
                                               Twelve
               Quarter Ended                Months Ended
                December 31,                 December 31,
              ---------------    % Diff    ---------------    % Diff
               2006     2007   Fav/(Unfav)  2006     2007   Fav/(Unfav)
              ------   ------  ----------  ------   ------  ----------
 Results of
  Operations:
 Revenues     $   89   $  152       71%    $  388   $  500       29%
              ------   ------              ------   ------
 Expenses:
  Natural gas      8       28     (250%)       31       83     (168%)
  Operation
   and
   maintenance    23       40      (74%)      120      125       (4%)
  Depreciation
   and
   amortization    9       12      (33%)       37       44      (19%)
  Taxes other
   than income
   taxes           5        1       80%        19       11       42%
              ------   ------              ------   ------
   Total          45       81      (80%)      207      263      (27%)
              ------   ------              ------   ------
 Operating
  Income      $   44   $   71       61%    $  181   $  237       31%
              ======   ======              ======   ======

 Pipelines
  Operating
  Data:
 Throughput
  data in BCF
  Transporta-
  tion           221      336       52%       939    1,216       29%
              ======   ======              ======   ======

 Reference is made to the Notes to the Consolidated Financial
 Statements contained in the Annual Report on Form 10-K of
 CenterPoint Energy, Inc.

                        CenterPoint Energy, Inc. and Subsidiaries
                           Results of Operations by Segment
                                (Millions of Dollars)
                                    (Unaudited)

                                  Field Services
                -----------------------------------------------------
                                              Twelve Months
                  Quarter Ended                   Ended
                   December 31,    % Diff      December 31,    % Diff
                -----------------   Fav/    -----------------   Fav/
                  2006      2007  (Unfav)     2006      2007  (Unfav)
                -------   ------- -------   -------   ------- -------
 Results of
  Operations:
 Revenues       $    36   $    50     39%   $   150   $   175     17%
                -------   -------           -------   -------
 Expenses:
  Natural gas        (6)        5   (183%)      (10)       (4)   (60%)
  Operation and
   maintenance       17        17     --         59        66    (12%)
  Depreciation
   and
   amortization       2         3    (50%)       10        11    (10%)
  Taxes other
   than income
   taxes             --         1     --          2         3    (50%)
                -------   -------           -------   -------
   Total             13        26   (100%)       61        76    (25%)
                -------   -------           -------   -------
 Operating
  Income        $    23   $    24      4%   $    89   $    99     11%
                =======   =======           =======   =======
 Field Services
  Operating
  Data:
 Throughput
  data in BCF
   Gathering         96       102      6%       375       398      6%
                =======   =======           =======   =======

                                 Other Operations
                 -----------------------------------------------------
                                              Twelve Months
                  Quarter Ended                   Ended
                   December 31,    % Diff      December 31,    % Diff
                -----------------   Fav/    -----------------   Fav/
                  2006      2007  (Unfav)     2006      2007  (Unfav)
                -------   ------- -------   -------   ------- -------
 Results of
  Operations:
 Revenues       $     3   $     2    (33%)  $    15   $    10    (33%)
 Expenses            (2)        6   (400%)       17        15     12%
                -------   -------           -------   -------
 Operating
  Income (Loss) $     5   $    (4)  (180%)  $    (2)  $    (5)  (150%)
                =======   =======           =======   =======

                         Capital Expenditures by Segment
                              (Millions of Dollars)
                                  (Unaudited)
                ---------------------------------------------
                                              Twelve Months
                  Quarter Ended                   Ended
                   December 31,                December 31,
                -----------------           -----------------
                  2006      2007              2006      2007
                -------   -------           -------   -------
 Capital
  Expenditures
  by Segment
  Electric
   Transmission
   & Distribu-
   tion         $   111   $    97           $   389   $   401
  Natural Gas
   Distribution      54        56               187       191

  Competitive
   Natural Gas
   Sales and
   Services           4         2                18         7
  Interstate
   Pipelines        259        55               437       308
  Field
   Services          24        19                65        74

  Other
   Operations         7         8                25        30
                -------   -------           -------   -------
   Total        $   459   $   237           $ 1,121   $ 1,011
                =======   =======           =======   =======

                             Interest Expense Detail
                              (Millions of Dollars)
                                  (Unaudited)
                ---------------------------------------------
                                              Twelve Months
                  Quarter Ended                   Ended
                   December 31,                December 31,
                -----------------           -----------------
                  2006      2007              2006      2007
                -------   -------           -------   -------
 Interest
  Expense Detail

  Amortization
   of Deferred
   Financing
   Cost         $    13   $    20           $    53   $    62
 Capitalization
  of Interest
  Cost               (4)       (3)              (10)      (21)
 Transition Bond
  Interest
  Expense            32        30               130       123
 Other Interest
  Expense           108       118               427       462
                -------   -------           -------   -------
  Total Interest
   Expense      $   149   $   165           $   600   $   626
                =======   =======           =======   =======

 Reference is made to the Notes to the Consolidated Financial
 Statements contained in the Annual Report on Form 10-K of
 CenterPoint Energy, Inc.

                     CenterPoint Energy, Inc. and Subsidiaries
                      Condensed Consolidated Balance Sheets
                               (Millions of Dollars)
                                    (Unaudited)


                                           December 31, December 31,
                                              2006         2007
                                            ---------    ---------
                ASSETS

 Current Assets:
  Cash and cash equivalents                 $     127    $     129
  Other current assets                          2,868        2,659
                                            ---------    ---------
   Total current assets                         2,995        2,788
                                            ---------    ---------

 Property, Plant and Equipment, net             9,204        9,740
                                            ---------    ---------
 Other Assets:
   Goodwill                                     1,705        1,696
   Regulatory assets                            3,290        2,993
   Other non-current assets                       439          655
                                            ---------    ---------
   Total other assets                           5,434        5,344
                                            ---------    ---------
    Total Assets                            $  17,633    $  17,872
                                            =========    =========

    LIABILITIES AND SHAREHOLDERS' EQUITY

 Current Liabilities:
  Short-term borrowings                     $     187    $     232
  Current portion of transition bond
   long-term debt                                 147          159
  Current portion of other long-term debt       1,051        1,156
  Other current liabilities                     2,836        2,244
                                            ---------    ---------

   Total current liabilities                    4,221        3,791
                                            ---------    ---------

 Other Liabilities:
  Accumulated deferred income taxes, net
   and investment tax credit                    2,362        2,266
  Regulatory liabilities                          792          828
  Other non-current liabilities                   900          813
                                            ---------    ---------

   Total other liabilities                      4,054        3,907
                                            ---------    ---------
 Long-term Debt:
  Transition bond                               2,260        2,101
  Other                                         5,542        6,263
                                            ---------    ---------
   Total long-term debt                         7,802        8,364
                                            ---------    ---------


 Shareholders' Equity                           1,556        1,810
                                            ---------    ---------
   Total Liabilities and Shareholders'
    Equity                                  $  17,633    $  17,872
                                            =========    =========


 Reference is made to the Notes to the Consolidated Financial
 Statements contained in the Annual Report on Form 10-K of
 CenterPoint Energy, Inc.

                   CenterPoint Energy, Inc. and Subsidiaries
               Condensed Statements of Consolidated Cash Flows
                            (Millions of Dollars)
                                (Unaudited)

                                                  Twelve Months Ended
                                                      December 31,
                                                   -----------------
                                                     2006      2007
                                                   -------   -------
 Cash Flows from Operating Activities:
  Net income                                       $   432   $   399
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation and amortization                       655       696
   Deferred income taxes and investment tax
    credit                                            (241)       --
   Tax and interest reserves reductions
    related to ZENS and ACES                          (107)       --
   Write-down of natural gas inventory                  66        11
   Changes in net regulatory assets                     79        81
   Changes in other assets and liabilities             108      (425)
   Other, net                                           (1)       12
                                                   -------   -------
 Net Cash Provided by Operating Activities             991       774

 Net Cash Used in Investing Activities              (1,056)   (1,300)

 Net Cash Provided by Financing Activities             118       528
                                                   -------   -------

 Net Increase in Cash and Cash Equivalents              53         2

 Cash and Cash Equivalents at Beginning of Period       74       127

                                                   -------   -------
 Cash and Cash Equivalents at End of Period        $   127   $   129
                                                   =======   =======

 Reference is made to the Notes to the Consolidated Financial
 Statements contained in the Annual Report on Form 10-K of CenterPoint
 Energy, Inc.


            

Coordonnées