CenterPoint Energy Reports Second Quarter 2008 Earnings


HOUSTON, Aug. 6, 2008 (PRIME NEWSWIRE) -- CenterPoint Energy, Inc. (NYSE:CNP) today reported net income of $101 million, or $0.30 per diluted share, for the second quarter of 2008 compared to $70 million, or $0.20 per diluted share, for the same period of 2007.

"I am pleased with the overall performance of our company during the second quarter, particularly in a period of high energy prices," said David M. McClanahan, president and chief executive officer of CenterPoint Energy. "We continue to see the benefit of our balanced electric and natural gas portfolio. Our utility operations turned in solid performances, and our pipelines and field services businesses continue to benefit from our previous investments and the continuing high levels of drilling activity in the mid-continent area driven by the strong demand for natural gas."

For the six months ended June 30, 2008, net income was $224 million, or $0.66 per diluted share, compared to $200 million, or $0.58 per diluted share, for the same period of 2007.

OPERATING INCOME BY SEGMENT

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $164 million in the second quarter of 2008, consisting of $129 million from the regulated electric transmission & distribution utility operations (TDU) and $35 million related to transition bonds. Operating income for the second quarter of 2007 was $157 million, consisting of $118 million from the TDU, $10 million from the competition transition charge (CTC), and $29 million related to transition bonds. In February 2008, the company monetized the remaining allowed true-up balance resulting in the discontinuance of the CTC.

Operating income for the TDU for the second quarter of 2008 increased due to warmer weather, continued strong customer growth of nearly 52,000 metered customers since June 2007, higher revenues from ancillary services and a $9 million gain from a land sale, partially offset by higher transmission costs and other operating expenses. Operating income for the second quarter of 2007 included a $17 million favorable settlement related to the final fuel reconciliation of the formerly integrated electric utility.

Operating income for the six months ended June 30, 2008, was $255 million, consisting of $183 million from the TDU, $5 million from the CTC and $67 million related to transition bonds. Operating income for the same period of 2007 was $261 million, consisting of $180 million from the TDU, $21 million from the CTC, and $60 million related to transition bonds.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $4 million for the second quarter of 2008 compared to $8 million for the same period of 2007. The decline was due to higher operating expenses primarily related to bad debts, customer-related costs and support services, partially offset by the benefit of new rates implemented in late 2007, lower employee-related costs and continued customer growth of nearly 34,000 metered customers since June 2007. Due to seasonal impacts, this segment typically reports minimal earnings in the second quarter.

Operating income for the six months ended June 30, 2008, was $125 million compared to $137 million for the same period of 2007.

Interstate Pipelines

The interstate pipelines segment reported operating income of $101 million for the second quarter of 2008 compared to $52 million for the same period of 2007. The increase was driven by increased ancillary services and the Carthage to Perryville pipeline, which went into commercial service in May 2007. In addition, operating income for the second quarter of 2008 included an $18 million gain from the sale of two storage development projects.

Operating income for the six months ended June 30, 2008, was $172 million compared to $96 million for the same period of 2007.

Field Services

The field services segment reported operating income of $32 million for the second quarter of 2008 compared to $27 million for the same period of 2007. Operating income increased from higher throughput, increased ancillary services and higher commodity prices.

In addition to operating income, this business had equity income of $4 million in the second quarter of 2008 compared to $2 million in the second quarter of 2007 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 six months ended June 30, 2008, was $77 million compared to $49 million for the same period of 2007. Equity income from the jointly-owned gas processing plant was $8 million for the six months ended June 30, 2008, compared to $4 million for the same period of 2007.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported an operating loss of $5 million for the second quarter of 2008 compared to a loss of $4 million for the same period of 2007. The second quarter of 2008 included charges of $10 million resulting from mark-to-market accounting for derivatives used to lock in economic margins of certain forward natural gas sales compared to mark-to-market charges of $6 million for the same period of 2007. The second quarter of 2007 also included a $5 million write-down of natural gas inventory to the lower of average cost or market.

Operating income for the six months ended June 30, 2008, was $1 million compared to $52 million for the same period of 2007. Approximately $13 million of the decline was due to reduced locational and seasonal price differentials. In addition, the six months ended June 30, 2008 included charges of $32 million resulting from mark-to-market accounting compared to charges of $14 million for the same period of 2007. The six months ended June 30, 2007 also included $6 million in inventory write-downs. Additionally, the six months ended June 30, 2008 included $6 million in gains on sales of gas from inventory compared to $30 million for the same period of 2007.

DIVIDEND DECLARATION

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

OUTLOOK FOR 2008

CenterPoint Energy expects diluted earnings per share for 2008 to be in the upper half of its guidance range of $1.15 to $1.25. This guidance takes into consideration performance to date as well as 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, the timing effects of mark-to-market or inventory accounting in our competitive natural gas sales and services business or the outcome of the TDU's true-up appeal.

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

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended June 30, 2008. 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 Wednesday, August 6, 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. 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 and its subsidiaries' Form 10-Ks for the period ended December 31, 2007, CenterPoint Energy's and its subsidiaries' Form 10-Qs for the period ended March 31, 2008, CenterPoint Energy's Form 10-Q for the period ended June 30, 2008, and other filings with the SEC.



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

                                         Quarter Ended    Six Months
                                           June 30,     Ended June 30,
                                        --------------  --------------
                                         2007    2008    2007    2008
                                        ------  ------  ------  ------

 Revenues:
  Electric Transmission & Distribution  $  465  $  510  $  871  $  919
  Natural Gas Distribution                 576     726   2,143   2,426
  Competitive Natural Gas Sales and
   Services                                881   1,243   1,945   2,363
  Interstate Pipelines                     121     192     211     325
  Field Services                            42      62      81     120
  Other Operations                           3       2       5       5
  Eliminations                             (55)    (65)   (117)   (125)
                                        ------  ------  ------  ------
   Total                                 2,033   2,670   5,139   6,033
                                        ------  ------  ------  ------

 Expenses:
  Natural gas                            1,208   1,750   3,358   4,143
  Operation and maintenance                330     342     682     707
  Depreciation and amortization            160     188     305     346
  Taxes other than income taxes             93      93     199     204
                                        ------  ------  ------  ------
   Total                                 1,791   2,373   4,544   5,400
                                        ------  ------  ------  ------
 Operating Income                          242     297     595     633
                                        ------  ------  ------  ------

 Other Income (Expense):
  Gain (loss) on Time Warner investment     28      17     (16)    (37)
  Gain (loss) on indexed debt securities   (27)    (17)     14      33
  Interest and other finance charges      (119)   (113)   (242)   (228)
  Interest on transition bonds             (32)    (35)    (63)    (68)
  Other - net                                6      14      12      27
                                        ------  ------  ------  ------
   Total                                  (144)   (134)   (295)   (273)
                                        ------  ------  ------  ------

 Income Before Income Taxes                 98     163     300     360

 Income Tax Expense                        (28)    (62)   (100)   (136)
                                        ------  ------  ------  ------

 Net Income                             $   70  $  101  $  200  $  224
                                        ======  ======  ======  ======

 Reference is made to the Notes to the Consolidated Financial
 Statements contained in the Quarterly Report on Form 10-Q 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    Six Months Ended
                                        June 30,          June 30,
                                    ----------------  ----------------
                                     2007      2008    2007      2008
                                    -------  -------  -------  -------

 Basic Earnings Per Common Share:
  Net Income                        $  0.22  $  0.30  $  0.62  $  0.68
                                    =======  =======  =======  =======

 Diluted Earnings Per Common Share:
  Net Income                        $  0.20  $  0.30  $  0.58  $  0.66
                                    =======  =======  =======  =======

 Dividends Declared per Common
  Share                             $  0.17  $0.1825  $  0.34  $ 0.365

 Weighted Average Common Shares
  Outstanding (000):
  - Basic                           320,927  331,354  319,501  329,316
  - Diluted                         343,770  342,027  342,024  340,873


 Operating Income (Loss) by Segment
 ----------------------------------

  Electric Transmission &
   Distribution:
   Electric Transmission and
    Distribution Operations         $   118  $   129  $   180  $   183
   Competition Transition Charge         10       --       21        5
                                    -------  -------  -------  -------
    Total Electric Transmission and
     Distribution Utility               128      129      201      188
   Transition Bond Companies             29       35       60       67
                                    -------  -------  -------  -------
    Total Electric Transmission &
     Distribution                       157      164      261      255
  Natural Gas Distribution                8        4      137      125
  Competitive Natural Gas Sales and
  Services                               (4)      (5)      52        1
 Interstate Pipelines                    52      101       96      172
 Field Services                          27       32       49       77
 Other Operations                         2        1       --        3
                                    -------  -------  -------  -------

 Total                              $   242  $   297  $   595  $   633
                                    =======  =======  =======  =======

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


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

                          Electric Transmission & Distribution
               --------------------------------------------------------
                  Quarter Ended       %       Six Months Ended    %
                     June 30,        Diff         June 30,       Diff
               --------------------  Fav/   -------------------- Fav/
                 2007        2008   (Unfav)   2007        2008  (Unfav)
               ---------  ---------  ------ ---------  --------- ------
 Results of
  Operations:
 Revenues:
  Electric
   transmission
   and
   distribution
   utility     $     395  $     419     6%  $     742  $     765    3%
  Transition
   bond
   companies          70         91    30%        129        154   19%
               ---------  ---------  ------ ---------  --------- ------
   Total             465        510    10%        871        919    6%
               ---------  ---------  ------ ---------  --------- ------

 Expenses:
  Operation and
   maintenance       150        167   (11%)       304        335  (10%)
  Depreciation
   and
   amortization       61         71   (16%)       124        137  (10%)
  Taxes other
   than income
   taxes              56         52     7%        113        105    7%
  Transition
   bond
   companies          41         56   (37%)        69         87  (26%)
               ---------  ---------  ------ ---------  --------- ------
   Total             308        346   (12%)       610        664   (9%)
               ---------  ---------  ------ ---------  --------- ------
 Operating
  Income       $     157  $     164     4%  $     261  $     255   (2%)
               =========  =========  ====== =========  ========= ======

 Operating
  Income:
  Electric
   transmission
   and
   distribution
   operations  $     118  $     129     9%  $     180  $     183    2%
  Competition
   transition
   charge             10         --  (100%)        21          5  (76%)
  Transition
   bond
   companies          29         35    21%         60         67   12%
               ---------  ---------  ------ ---------  --------- ------
   Total
    Segment
    Operating
    Income     $     157  $     164     4%  $     261  $     255   (2%)


               =========  =========  ====== =========  ========= ======

 Electric
  Transmission
  Distribution
  Operating
  Data:
 Actual MWH
  Delivered
  Residential  6,020,714  6,774,069    13% 10,678,773 11,177,381    5%
  Total       19,175,278 20,359,540     6% 35,835,191 36,929,230    3%

 Weather
  (average for
  service area):
 Percentage of
  10-year
  average:
  Cooling
   degree days        94%       111%   17%         96%       113%  17%
  Heating
   degree days       197%        73% (124)%       114%        95% (19%)


 Average number
  of metered
  customers:
  Residential  1,767,749  1,814,840     3%  1,760,006  1,808,056    3%
  Total        2,006,840  2,058,171     3%  1,998,291  2,050,316    3%


                               Natural Gas Distribution
               --------------------------------------------------------
                  Quarter Ended       %       Six Months Ended    %
                     June 30,        Diff         June 30,       Diff
               --------------------  Fav/   -------------------- Fav/
                 2007        2008   (Unfav)   2007        2008  (Unfav)
               ---------  ---------  ------ ---------  --------- ------
 Results of
  Operations:

 Revenues      $     576  $     726    26%  $   2,143  $   2,426   13%
               ---------  ---------  ------ ---------  --------- ------
 Expenses:
  Natural gas        366        512   (40%)     1,578      1,845  (17%)
  Operation and
   maintenance       135        141    (4%)       282        297   (5%)
  Depreciation
   and
   amortization       38         39    (3%)        76         78   (3%)
  Taxes other
   than income
   taxes              29         30    (3%)        70         81  (16%)
               ---------  ---------  ------ ---------  --------- ------
   Total             568        722   (27%)     2,006      2,301  (15%)
               ---------  ---------  ------ ---------  --------- ------
 Operating
  Income       $       8  $       4   (50%) $     137  $     125   (9%)
               =========  =========  ====== =========  ========= ======

 Natural Gas
  Distribution
  Operating
  Data:
 Throughput
  data in BCF
  Residential         20         20    --         106        104   (2%)
  Commercial
   and
   Industrial         44         47     7%        126        130    3%
               ---------  ---------  ------ ---------  --------- ------
   Total
    Throughput        64         67     5%        232        234    1%
               =========  =========  ====== =========  ========= ======

 Weather
  (average for
  service area)
 Percentage of
  10-year
  average:
  Heating
   degree days        95%       113%   18%         99%       107%   8%


 Average number
  of customers:
  Residential  2,925,120  2,956,291     1%  2,935,661  2,965,941    1%
  Commercial
   and
   Industrial    247,550    249,776     1%    246,564    250,382    2%
               ---------  ---------  ------ ---------  --------- ------
   Total       3,172,670  3,206,067     1%  3,182,225  3,216,323    1%
               =========  =========  ====== =========  ========= ======

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


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

                           Competitive Natural Gas Sales and Services
                         ----------------------------------------------
                         Quarter Ended     %       Six Months      %
                            June 30,      Diff   Ended June 30,   Diff
                         --------------   Fav/   --------------   Fav/
                          2007    2008  (Unfav)   2007    2008  (Unfav)
                         ------  ------ -------  ------  ------ -------
 Results of Operations:
 Revenues                $  881  $1,243    41%   $1,945  $2,363    21%
                         ------  ------          ------  ------
 Expenses:
  Natural gas               877   1,237   (41%)   1,875   2,342   (25%)
  Operation and
   maintenance                7      10   (43%)      16      18   (13%)
  Depreciation and
   amortization               1      --    --         1       1    --
  Taxes other than income
   taxes                     --       1    --         1       1    --
                         ------  ------          ------  ------
   Total                    885   1,248   (41%)   1,893   2,362   (25%)
                         ------  ------          ------  ------
 Operating Income
  (Loss)                 $   (4) $   (5)  (25%)  $   52  $    1   (98%)
                         ======  ======          ======  ======
 Competitive Natural
  Gas Sales and Services
  Operating Data:
 Throughput data in BCF     120     129     8%      275     267    (3%)
                         ======  ======          ======  ======

 Average number of
  customers               7,077   9,186    30%    7,032   8,840    26%
                         ======  ======          ======  ======


                                      Interstate Pipelines
                         ----------------------------------------------
                         Quarter Ended     %       Six Months      %
                            June 30,      Diff   Ended June 30,   Diff
                         --------------   Fav/   --------------   Fav/
                          2007    2008  (Unfav)   2007    2008  (Unfav)
                         ------  ------ -------  ------  ------ -------
 Results of Operations:

 Revenues                $  121  $  192    59%   $  211  $  325    54%
                         ------  ------          ------  ------
 Expenses:
  Natural gas                24      58  (142%)      28      73  (161%)
  Operation and
   maintenance               29      16    45%       56      46    18%
  Depreciation and
   amortization              11      11    --        21      23   (10%)
  Taxes other than income
   taxes                      5       6   (20%)      10      11   (10%)
                         ------  ------          ------  ------
   Total                     69      91   (32%)     115     153   (33%)
                         ------  ------          ------  ------
 Operating Income        $   52  $  101    94%   $   96  $  172    79%
                         ======  ======          ======  ======

 Pipelines Operating
  Data:
 Throughput data in BCF
  Transportation            274     361    32%      568     785    38%
                         ======  ======          ======  ======

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


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

                                        Field Services
                         ----------------------------------------------
                         Quarter Ended     %       Six Months      %
                            June 30,      Diff   Ended June 30,   Diff
                         --------------   Fav/   --------------   Fav/
                          2007    2008  (Unfav)   2007    2008  (Unfav)
                         ------  ------ -------  ------  ------ -------
 Results of Operations:
 Revenues                $   42  $   62    48%   $   81  $  120    48%
                         ------  ------          ------  ------
 Expenses:
  Natural gas                (4)      8  (300%)      (7)      6  (186%)
  Operation and
   maintenance               16      18   (13%)      32      29     9%
  Depreciation and
   amortization               3       3    --         6       6    --
  Taxes other than income
   taxes                     --       1    --         1       2  (100%)
                         ------  ------          ------  ------
   Total                     15      30  (100%)      32      43   (34%)
                         ------  ------          ------  ------
 Operating Income        $   27  $   32    19%   $   49  $   77    57%
                         ======  ======          ======  ======

 Field Services Operating
  Data:
 Throughput data in BCF
  Gathering                 100     104     4%      193     202     5%
                         ======  ======          ======  ======


                                        Other Operations
                         ----------------------------------------------
                         Quarter Ended     %       Six Months      %
                            June 30,      Diff   Ended June 30,   Diff
                         --------------   Fav/   --------------   Fav/
                          2007    2008  (Unfav)   2007    2008  (Unfav)
                         ------  ------ -------  ------  ------ -------
 Results of Operations:
 Revenues                $    3  $    2   (33%)  $    5  $    5    --
 Expenses                     1       1    --         5       2    60%
                         ------  ------          ------  ------
 Operating Income
  (Loss)                 $    2  $    1   (50%)  $   --  $    3    --
                         ======  ======          ======  ======


                                       Capital Expenditures by Segment
                                             (Millions of Dollars)
                                                  (Unaudited)
                                        ------------------------------
                                        Quarter Ended     Six Months
                                           June 30,     Ended June 30,
                                        --------------  --------------
                                         2007    2008    2007    2008
                                        ------  ------  ------  ------
 Capital Expenditures by Segment
  Electric Transmission & Distribution  $  111  $   87  $  221  $  176
  Natural Gas Distribution                  44      56      77      94
  Competitive Natural Gas Sales and
   Services                                  2       1       4       2
  Interstate Pipelines                      60      42     214      70
  Field Services                            13      28      40      46
  Other Operations                           6       5      17      13
                                        ------  ------  ------  ------
   Total                                $  236  $  219  $  573  $  401
                                        ======  ======  ======  ======


                                           Interest Expense Detail
                                            (Millions of Dollars)
                                                  (Unaudited)
                                        ------------------------------
                                        Quarter Ended     Six Months
                                           June 30,     Ended June 30,
                                        --------------  --------------
                                         2007    2008    2007    2008
                                        ------  ------  ------  ------
 Interest Expense Detail
  Amortization of Deferred Financing
   Cost                                 $   12  $    6  $   31  $   12
  Capitalization of Interest Cost           (7)     (4)    (15)     (7)
  Transition Bond Interest Expense          32      35      63      68
  Other Interest Expense                   114     111     226     223
                                        ------  ------  ------  ------
   Total Interest Expense               $  151  $  148  $  305  $  296
                                        ======  ======  ======  ======

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


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

                                                    Dec. 31,  June 30,
                                                      2007      2008
                                                    --------  --------

                        ASSETS

 Current Assets:
  Cash and cash equivalents                         $    129  $    150
  Other current assets                                 2,659     2,448
                                                    --------  --------
   Total current assets                                2,788     2,598
                                                    --------  --------

 Property, Plant and Equipment, net                    9,740     9,908
                                                    --------  --------

 Other Assets:
  Goodwill                                             1,696     1,696
  Regulatory assets                                    2,993     2,847
  Other non-current assets                               655     1,027
                                                    --------  --------
   Total other assets                                  5,344     5,570
                                                    --------  --------
    Total Assets                                    $ 17,872  $ 18,076
                                                    ========  ========

        LIABILITIES AND SHAREHOLDERS' EQUITY

 Current Liabilities:
  Short-term borrowings                             $    232  $    200
  Current portion of transition bond long-term debt      159       186
  Current portion of other long-term debt              1,156       123
  Other current liabilities                            2,244     2,304
                                                    --------  --------
   Total current liabilities                           3,791     2,813
                                                    --------  --------

 Other Liabilities:
  Accumulated deferred income taxes, net and
   investment tax credit                               2,266     2,255
  Regulatory liabilities                                 828       806
  Other non-current liabilities                          813       883
                                                    --------  --------
   Total other liabilities                             3,907     3,944
                                                    --------  --------

 Long-term Debt:
  Transition bond                                      2,101     2,485
  Other                                                6,263     6,869
                                                    --------  --------
   Total long-term debt                                8,364     9,354
                                                    --------  --------

 Shareholders' Equity                                  1,810     1,965
                                                    --------  --------
   Total Liabilities and Shareholders' Equity       $ 17,872  $ 18,076
                                                    ========  ========

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


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

                                                     Six Months Ended
                                                         June 30,
                                                    ------------------
                                                      2007      2008
                                                    --------  --------

 Cash Flows from Operating Activities:
  Net income                                        $    200  $    224
  Adjustments to reconcile net income to net cash
   provided by operating activities:
   Depreciation and amortization                         338       360
   Deferred income taxes                                  12        12
   Changes in net regulatory assets                       31        14
   Changes in other assets and liabilities              (164)      256
   Other, net                                             10         2
                                                    --------  --------
 Net Cash Provided by Operating Activities               427       868

 Net Cash Used in Investing Activities                  (709)     (700)

 Net Cash Provided by (Used in) Financing
  Activities                                             267      (147)
                                                    --------  --------

 Net Increase (Decrease) in Cash and Cash
  Equivalents                                            (15)       21

 Cash and Cash Equivalents at Beginning of Period        127       129

                                                    --------  --------
 Cash and Cash Equivalents at End of Period         $    112  $    150
                                                    ========  ========

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


            

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