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CenterPoint Energy Reports Third Quarter 2010 Earnings

HOUSTON, Oct 28, 2010 /PRNewswire via COMTEX News Network/ -- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $123 million, or $0.29 per diluted share, for the third quarter of 2010 compared to $114 million, or $0.31 per diluted share, for the same period of 2009. Operating income for the third quarter of 2010 was $327 million compared to $287 million for the same period of 2009.

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"I am pleased with the overall results from our business units this quarter," said David M. McClanahan, president and chief executive officer of CenterPoint Energy. "Our regulated electric and natural gas utilities performed well and we continue to see the benefits of the significant investments we have made in our field services and pipeline businesses."

For the nine months ended September 30, 2010, net income was $318 million, or $0.78 per diluted share, compared to $267 million, or $0.74 per diluted share, for the same period of 2009. Operating income for the nine months ended September 30, 2010, was $947 million compared to $825 million for the same period of 2009.

OPERATING INCOME BY SEGMENT

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $212 million for the third quarter of 2010, consisting of $178 million from the regulated electric transmission & distribution utility operations (TDU) and $34 million related to transition and system restoration bonds. Operating income for the third quarter of 2009 was $218 million, consisting of $187 million from the TDU and $31 million related to transition bonds. Operating income for the TDU increased from growth of nearly 21,000 metered customers since September 2009, but was more than offset by reduced revenues associated with the credit to customers' bills reflecting the benefit of deferred taxes associated with Hurricane Ike storm restoration costs, and increased operation and maintenance expenses.

Operating income for the nine months ended September 30, 2010, was $477 million, consisting of $371 million from the TDU and $106 million related to transition and system restoration bonds. Operating income for the same period of 2009 was $450 million, consisting of $353 million from the TDU and $97 million related to transition bonds.

Natural Gas Distribution

The natural gas distribution segment reported an operating loss of $4 million for the third quarter of 2010 compared to an operating loss of $15 million for the same period of 2009. Operating results benefited from rate increases and rate design changes, and higher system throughput, partially offset by higher operation and maintenance expenses. Due to seasonal impacts, this segment typically reports a loss in the third quarter.

Operating income for the nine months ended September 30, 2010, was $145 million compared to $105 million for the same period of 2009.

Interstate Pipelines

The interstate pipelines segment reported operating income of $68 million for the third quarter of 2010 compared to $64 million for the same period of 2009. Operating income increased due to higher revenue from firm contracts associated with Phase IV of the Carthage to Perryville pipeline and for deliveries to gas-fired power generators, as well as lower operation and maintenance expenses, partially offset by reduced revenues from ancillary services.

In addition to operating income, this segment recorded equity income of $8 million for the third quarter of 2010 primarily from its 50 percent interest in the Southeast Supply Header (SESH) compared to an equity loss of $5 million for the third quarter of 2009, which included a non-cash charge of $11 million to reflect SESH's discontinued use of regulatory accounting.

Operating income for the nine months ended September 30, 2010, was $207 million compared to $194 million for the same period of 2009. In addition to operating income, this segment recorded equity income of $15 million for the nine months ended September 30, 2010, primarily from its 50 percent interest in SESH compared to $2 million for the nine months ended September 30, 2009, which included non-cash charges of $16 million to reflect SESH's discontinued use of regulatory accounting.

Field Services

The field services segment reported operating income of $40 million for the third quarter of 2010 compared to $23 million for the same period of 2009. Revenue growth from higher gathering volumes was partially offset by increased operation and maintenance expenses primarily related to facility expansions.

In addition to operating income, this business had equity income of $3 million in the third quarter of 2010 compared to $2 million in the third quarter of 2009 from its 50 percent interest in a gas processing plant.

Operating income for the nine months ended September 30, 2010, was $94 million compared to $72 million for the same period of 2009. Equity income from the jointly-owned gas processing plant was $8 million for the nine months ended September 30, 2010, compared to $6 million for the same period of 2009.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $7 million for the third quarter of 2010 compared to an operating loss of $8 million for the same period of 2009. Operating income for the third quarter of 2010 included gains of $19 million resulting from mark-to-market accounting for derivatives associated with certain forward natural gas purchases and sales used to lock in economic margins compared to charges of $6 million for the same period of 2009. The third quarter of 2010 also included a $6 million write-down of natural gas inventory to the lower of average cost or market.

Operating income for the nine months ended September 30, 2010, was $16 million compared to no operating income for the same period of 2009. Operating income for the nine months ended September 30, 2010, included gains of $14 million resulting from mark-to-market accounting compared to charges of $22 million for the same period of 2009. Each of the nine months ended September 30, 2010 and 2009, also included $6 million in inventory write-downs.

DIVIDEND DECLARATION

On October 21, 2010, CenterPoint Energy's board of directors declared a regular quarterly cash dividend of $0.195 per share of common stock payable on December 10, 2010, to shareholders of record as of the close of business on November 16, 2010.

OUTLOOK REAFFIRMED FOR 2010

CenterPoint Energy reaffirmed its 2010 earnings guidance of $1.02 to $1.12 per diluted share. This guidance takes into consideration performance to date, equity issuances and various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding the timing and cost of financing activities and the impact to earnings of various regulatory proceedings. In providing this guidance, the company has not included the impact of any changes in accounting standards, any impact from significant acquisitions or divestitures, any impact to income from the change in value of Time Warner stocks and the related ZENS securities, the timing effects of mark-to-market or inventory accounting in the company's competitive natural gas sales and services business, or the outcome of the TDU's true-up appeal. The company has also excluded increased taxes recorded in the first quarter of 2010 as a result of recent health care legislation. For the impact of these factors on the company's earnings for the three months and nine months ended September 30, 2010, see the reconciliation below.

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 September 30, 2010. 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 with 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, October 28, 2010, 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 $19 billion. With about 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the Web site at www.CenterPointEnergy.com.

This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding the company's earnings outlook for 2010 and 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 the appeal 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 natural gas and natural gas liquids prices, the impact of unplanned facility outages, and other factors discussed in CenterPoint Energy's and its subsidiaries' Forms 10-K for the fiscal year ended December 31, 2009, CenterPoint Energy's and its subsidiaries' Forms 10-Q for the periods ended March 31, 2010, and June 30, 2010, CenterPoint Energy's Form 10-Q for the period ended September 30, 2010, and other filings with the SEC.


    For more information contact
    Media:
    Leticia Lowe
    Phone   713.207.7702
    Investors:
    Marianne Paulsen
    Phone   713.207.6500



                          CenterPoint Energy, Inc. and Subsidiaries

    Reconciliation of reported Net Income and diluted EPS to the basis
    used in providing annual earnings guidance


                                            Quarter Ended
                                          September 30, 2010
                                          ------------------
                                          Net
                                        Income           EPS
                                       -------           ---
                                          (in
                                       millions)
    As reported                             $123         $0.29
      Timing effects impacting
       CES(1):
        Mark-to-market (gains)
         losses - natural gas
         derivative contracts                (12)        (0.03)
        Natural gas inventory write-
         downs                                 4          0.01
      ZENS-related mark-to-
       market (gains) losses:
        Marketable securities(2)             (12)        (0.03)
        Indexed debt securities                3          0.01
      Tax impact of federal health
       care legislation                        -             -
                                             ---           ---
    Per the basis used in
     providing annual earnings
     guidance                               $106         $0.25
                                            ====         =====




                                           Nine Months Ended
                                          September 30, 2010
                                          ------------------
                                          Net
                                        Income           EPS
                                       -------           ---
                                          (in
                                       millions)
    As reported                             $318          $0.78
      Timing effects impacting
       CES(1):
        Mark-to-market (gains)
         losses - natural gas
         derivative contracts                 (9)         (0.02)
        Natural gas inventory write-
         downs                                 4           0.01
      ZENS-related mark-to-
       market (gains) losses:
        Marketable securities(2)             (23)         (0.06)
        Indexed debt securities                -              -
      Tax impact of federal health
       care legislation                       21           0.05
                                             ---           ----
    Per the basis used in
     providing annual earnings
     guidance                               $311          $0.76
                                            ====          =====



    (1)  Competitive natural gas sales and services
    (2)  Time Warner Inc., Time Warner Cable Inc. and AOL Inc.


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



                                                Quarter Ended
                                                September 30,
                                                -------------
                                              2009             2010
                                              ----             ----


    Revenues:
        Electric Transmission & Distribution  $608             $655
        Natural Gas Distribution               402              398
        Competitive Natural Gas Sales and
         Services                              399              647
        Interstate Pipelines                   153              170
        Field Services                          63               94
        Other Operations                         3                3
        Eliminations                           (52)             (59)
           Total                             1,576            1,908
                                             -----            -----

    Expenses:
        Natural gas                            582              808
        Operation and maintenance              415              444
        Depreciation and amortization          208              243
        Taxes other than income taxes           84               86
           Total                             1,289            1,581
                                             -----            -----
    Operating Income                           287              327
                                               ---              ---

    Other Income (Expense) :
        Gain on marketable securities           47               19
        Loss on indexed debt securities        (30)              (5)
        Interest and other finance charges    (126)            (121)
        Interest on transition and system
         restoration bonds                     (32)             (34)
        Equity in earnings (losses) of
         unconsolidated affiliates              (3)              10
        Other - net                              9                3
           Total                              (135)            (128)
                                              ----             ----

    Income Before Income Taxes                 152              199

    Income Tax Expense                         (38)             (76)
                                               ---              ---

    Net Income                                $114             $123
                                              ====             ====









                                              Nine Months Ended
                                                September 30,
                                                -------------
                                               2009             2010
                                               ----             ----


    Revenues:
        Electric Transmission & Distribution $1,541           $1,699
        Natural Gas Distribution              2,341            2,400
        Competitive Natural Gas Sales and
         Services                             1,596            2,059
        Interstate Pipelines                    461              456
        Field Services                          176              242
        Other Operations                          9                9
        Eliminations                           (142)            (178)
           Total                              5,982            6,687
                                              -----            -----

    Expenses:
        Natural gas                           3,081            3,521
        Operation and maintenance             1,226            1,268
        Depreciation and amortization           562              660
        Taxes other than income taxes           288              291
           Total                              5,157            5,740
                                              -----            -----
    Operating Income                            825              947
                                                ---              ---

    Other Income (Expense) :
        Gain on marketable securities            68               35
        Loss on indexed debt securities         (54)               -
        Interest and other finance charges     (384)            (364)
        Interest on transition and system
         restoration bonds                      (98)            (106)
        Equity in earnings (losses) of
         unconsolidated affiliates                8               22
        Other - net                              31                7
                                                ---              ---
           Total                               (429)            (406)
                                               ----             ----

    Income Before Income Taxes                  396              541

    Income Tax Expense                         (129)            (223)
                                               ----             ----

    Net Income                                 $267             $318
                                               ====             ====








       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
                                                    September 30,
                                                    -------------
                                                  2009               2010
                                                  ----               ----


      Basic Earnings Per Common Share            $0.31              $0.29
                                                 =====              =====

      Diluted Earnings Per Common Share          $0.31              $0.29
                                                 =====              =====

      Dividends Declared per Common Share       $0.190             $0.195

         Weighted Average Common Shares
          Outstanding (000):
        - Basic                                369,512            422,178
        - Diluted                              371,742            424,968


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

      Electric Transmission & Distribution:
        Electric Transmission and Distribution
         Operations                               $187               $178
        Transition and System Restoration Bond
         Companies                                  31                 34
           Total Electric Transmission &
            Distribution                           218                212
      Natural Gas Distribution                     (15)                (4)
      Competitive Natural Gas Sales and
       Services                                     (8)                 7
      Interstate Pipelines                          64                 68
      Field Services                                23                 40
      Other Operations                               5                  4

      Total                                       $287               $327
                                                  ====               ====


                                                  Nine Months Ended
                                                    September 30,
                                                    -------------
                                                  2009                 2010
                                                  ----                 ----


      Basic Earnings Per Common Share            $0.75                $0.79
                                                 =====                =====

      Diluted Earnings Per Common Share          $0.74                $0.78
                                                 =====                =====

      Dividends Declared per Common Share        $0.57               $0.585

         Weighted Average Common Shares
          Outstanding (000):
        - Basic                                356,570              404,957
        - Diluted                              358,745              407,728


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

      Electric Transmission & Distribution:
        Electric Transmission and Distribution
         Operations                               $353                 $371
        Transition and System Restoration Bond
         Companies                                  97                  106
           Total Electric Transmission &
            Distribution                           450                  477
      Natural Gas Distribution                     105                  145
      Competitive Natural Gas Sales and
       Services                                      -                   16
      Interstate Pipelines                         194                  207
      Field Services                                72                   94
      Other Operations                               4                    8

      Total                                       $825                 $947
                                                  ====                 ====
    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
                                     September 30,                    % Diff
                                     -------------
                                                                      Fav/
                                    2009                2010        (Unfav)
                                    ----                ----       --------
    Results of
     Operations:
    Revenues:
        Electric transmission
         and distribution
         utility                    $503                $520               3%
        Transition and system
         restoration bond
         companies                   105                 135              29%
                                     ---                 ---
           Total                     608                 655               8%
                                     ---                 ---

    Expenses:
        Operation and
         maintenance                 194                 215            (11%)
        Depreciation and
         amortization                 70                  75             (7%)
        Taxes other than
         income taxes                 52                  52               -
        Transition and system
         restoration bond
         companies                    74                 101            (36%)
                                                         ---
           Total                     390                 443            (14%)
                                     ---                 ---
    Operating Income                $218                $212             (3%)
                                    ====                ====

    Operating Income:
        Electric transmission
         and distribution
         operations                 $187                $178             (5%)
        Transition and system
         restoration bond
         companies                    31                  34              10%
                                                         ---
           Total Segment
            Operating Income        $218                $212             (3%)
                                    ====                ====


    Electric Transmission
     & Distribution
    Operating Data:
    Actual MWH Delivered
        Residential            9,242,635           9,262,154               -
        Total                 22,963,434          23,342,324               2%

    Weather (average for
     service area):
    Percentage of 10-year
     average:
        Cooling degree days          107%                109%
        Heating degree days            0%                  0%


    Number of metered
     customers -end of
     period:
        Residential            1,849,158           1,868,421               1%
        Total                  2,094,847           2,115,595               1%


                             Electric Transmission & Distribution
                             ------------------------------------
                                     Nine Months Ended
                                       September 30,                 % Diff
                                       -------------
                                                                     Fav/
                                     2009                2010      (Unfav)
                                     ----                ----     --------
    Results of
     Operations:
    Revenues:
        Electric
         transmission and
         distribution
         utility                   $1,281              $1,355             6%
        Transition and
         system
         restoration bond
         companies                    260                 344            32%
                                      ---                 ---
           Total                    1,541               1,699            10%
                                    -----               -----

    Expenses:
        Operation and
         maintenance                  563                 609           (8%)
        Depreciation and
         amortization                 207                 219           (6%)
        Taxes other than
         income taxes                 158                 156             1%
        Transition and
         system
         restoration bond
         companies                    163                 238          (46%)
                                      ---                 ---
           Total                    1,091               1,222          (12%)
                                    -----               -----
    Operating Income                 $450                $477             6%
                                     ====                ====

    Operating Income:
        Electric
         transmission and
         distribution
         operations                  $353                $371             5%
        Transition and
         system
         restoration bond
         companies                     97                 106             9%
                                      ---                 ---
           Total Segment
            Operating Income         $450                $477             6%
                                     ====                ====


    Electric
     Transmission &
     Distribution
    Operating Data:
    Actual MWH
     Delivered
        Residential            20,040,598          21,499,427             7%
        Total                  57,946,697          59,952,416             3%

    Weather (average
     for service
     area):
    Percentage of
     10-year average:
        Cooling degree
         days                         108%                104%
        Heating degree
         days                          89%                160%


    Number of metered
     customers -end
     of period:
        Residential             1,849,158           1,868,421             1%
        Total                   2,094,847           2,115,595             1%



                                          Natural Gas Distribution
                                          ------------------------
                                        Quarter Ended
                                        September 30,                 % Diff
                                        -------------
                                                                      Fav/
                                       2009                2010     (Unfav)
                                       ----                ----    --------
    Results of Operations:
    Revenues                           $402                $398          (1%)
                                       ----                ----
    Expenses:
        Natural gas                     198                 180            9%
        Operation and maintenance       157                 160          (2%)
        Depreciation and
         amortization                    40                  40            -
        Taxes other than income
         taxes                           22                  22            -
           Total                        417                 402            4%
    Operating Income (Loss)            $(15)                $(4)          73%
                                       ====                 ===

    Natural Gas Distribution
     Operating Data:
    Throughput data in BCF
        Residential                      13                  13            -
        Commercial and Industrial        41                  46           12%
           Total Throughput              54                  59            9%
                                        ===                 ===


    Weather (average for
     service area)
    Percentage of 10-year
     average:
        Heating degree days              58%                 97%


    Number of customers -end
     of period:
        Residential               2,954,095           2,969,452            1%
        Commercial and Industrial   241,036             242,032            -
           Total                  3,195,131           3,211,484            1%
                                  =========           =========



                               Natural Gas Distribution
                               ------------------------
                                 Nine Months Ended
                                   September 30,                % Diff
                                   -------------
                                 2009                2010  Fav/(Unfav)
                                 ----                ----  -----------
    Results of Operations:
    Revenues                   $2,341              $2,400               3%
                               ------              ------
    Expenses:
        Natural gas             1,538               1,563             (2%)
        Operation and
         maintenance              478                 471               1%
        Depreciation and
         amortization             121                 124             (2%)
        Taxes other than
         income taxes              99                  97               2%
           Total                2,236               2,255             (1%)
    Operating Income
     (Loss)                      $105                $145              38%
                                 ====                ====

    Natural Gas
     Distribution
     Operating Data:
    Throughput data in BCF
        Residential               111                 125              13%
        Commercial and
         Industrial               164                 182              11%
           Total Throughput       275                 307              12%
                                  ===                 ===


    Weather (average for
     service area)
    Percentage of 10-year
     average:
        Heating degree days       102%                110%


    Number of customers -
     end of period:
        Residential         2,954,095           2,969,452               1%
        Commercial and
         Industrial           241,036             242,032               -
           Total            3,195,131           3,211,484               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
                                    September 30,                    % Diff
                                    -------------
                                                                     Fav/
                                   2009                2010        (Unfav)
                                   ----                ----       --------
    Results of Operations:
    Revenues                       $399                $647              62%
                                   ----                ----
    Expenses:
        Natural gas                 396                 629            (59%)
        Operation and
         maintenance                 10                  10               -
        Depreciation and
         amortization                 1                   1               -
        Taxes other than income
         taxes                        -                   -               -
           Total                    407                 640            (57%)
    Operating Income (Loss)         $(8)                 $7             188%
                                    ===                 ===

    Competitive Natural Gas
     Sales and Services
     Operating Data:
    Throughput data in BCF          115                 135              17%
                                    ===                 ===

    Number of customers -
     end of period               10,934              11,883               9%
                                 ======              ======


                                  Competitive Natural Gas Sales and
                                               Services
                                  ---------------------------------
                                        Nine Months Ended
                                          September 30,                % Diff
                                          -------------
                                                                       Fav/
                                          2009            2010       (Unfav)
                                          ----            ----      --------
    Results of Operations:
    Revenues                            $1,596          $2,059             29%
                                        ------          ------
    Expenses:
        Natural gas                      1,562           2,009           (29%)
        Operation and maintenance           30              29              3%
        Depreciation and
         amortization                        3               3              -
        Taxes other than income
         taxes                               1               2          (100%)
           Total                         1,596           2,043           (28%)
    Operating Income (Loss)                 $-             $16              -
                                           ===             ===

    Competitive Natural Gas
     Sales and Services
     Operating Data:
    Throughput data in BCF                 370             404              9%
                                           ===             ===

    Number of customers -end
     of period                          10,934          11,883              9%
                                        ======          ======



                                            Interstate Pipelines
                                            --------------------
                                       Quarter Ended
                                       September 30,               % Diff
                                       -------------
                                                                   Fav/
                                      2009                2010   (Unfav)
                                      ----                ----    -------
    Results of Operations:
    Revenues                          $153                $170         11%
                                      ----                ----
    Expenses:
        Natural gas                     22                  38       (73%)
        Operation and maintenance       47                  42         11%
        Depreciation and amortization   12                  13        (8%)
        Taxes other than income taxes    8                   9       (13%)
           Total                        89                 102       (15%)
    Operating Income                   $64                 $68          6%
                                       ===                 ===


    Pipelines Operating Data:
    Throughput data in BCF
        Transportation                 378                 422         12%


                                      Interstate Pipelines
                                      --------------------
                                      Nine Months Ended
                                        September 30,          % Diff
                                        -------------
                                                               Fav/
                                        2009            2010 (Unfav)
                                        ----            ----  -------
    Results of Operations:
    Revenues                            $461            $456      (1%)
                                        ----            ----
    Expenses:
        Natural gas                       85              72       15%
        Operation and maintenance        123             112        9%
        Depreciation and amortization     36              39      (8%)
        Taxes other than income taxes     23              26     (13%)
           Total                         267             249        7%
    Operating Income                    $194            $207        7%
                                        ====            ====


    Pipelines Operating Data:
    Throughput data in BCF
        Transportation                 1,235           1,260        2%

    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
                                        September 30,                % Diff
                                        -------------
                                      2009                 2010 Fav/(Unfav)
                                      ----                 ---- -----------
    Results of Operations:
    Revenues                           $63                  $94            49%
                                       ---                  ---
    Expenses:
        Natural gas                     18                   19           (6%)
        Operation and maintenance       17                   29          (71%)
        Depreciation and amortization    4                    6          (50%)
        Taxes other than income taxes    1                    -             -
           Total                        40                   54          (35%)
    Operating Income                   $23                  $40            74%
                                       ===                  ===


    Field Services Operating Data:
    Throughput data in BCF
        Gathering                      106                  180            70%
                                       ===                  ===


                                         Field Services
                                         --------------
                                      Nine Months Ended
                                        September 30,             % Diff
                                        -------------
                                         2009           2010 Fav/(Unfav)
                                         ----           ---- -----------
    Results of Operations:
    Revenues                             $176           $242          38%
                                         ----           ----
    Expenses:
        Natural gas                        36             53        (47%)
        Operation and maintenance          54             75        (39%)
        Depreciation and amortization      11             17        (55%)
        Taxes other than income taxes       3              3           -
           Total                          104            148        (42%)
    Operating Income                      $72            $94          31%
                                          ===            ===


    Field Services Operating Data:
    Throughput data in BCF
        Gathering                         312            464          49%
                                          ===            ===


                                      Other Operations
                                      ----------------
                             Quarter Ended
                             September 30,                   % Diff
                             -------------
                           2009                   2010  Fav/(Unfav)
                           ----                   ----  -----------
    Results of Operations:
    Revenues                 $3                     $3              -
    Expenses                 (2)                    (1)          (50%)
    Operating Income         $5                     $4           (20%)
                            ===                    ===


                             Other Operations
                             ----------------
                           Nine Months Ended
                             September 30,              % Diff
                             -------------
                              2009            2010 Fav/(Unfav)
                              ----            ---- -----------
    Results of Operations:
    Revenues                    $9              $9           -
    Expenses                     5               1          80%
    Operating Income            $4              $8         100%
                               ===             ===


                               Capital Expenditures by Segment
                                    (Millions of Dollars)
                                         (Unaudited)


                                                      Quarter Ended
                                                      September 30,
                                                      -------------
                                                    2009            2010
                                                    ----            ----
    Capital Expenditures by Segment
        Electric Transmission & Distribution         $99            $121
        Hurricane Ike                                  8               -
                                                     ---             ---
         Total Electric Transmission & Distribution  107             121
        Natural Gas Distribution                      44              54
        Competitive Natural Gas Sales and Services     1               1
        Interstate Pipelines                          44              31
        Field Services                               113             131
        Other Operations                               9               8
           Total                                    $318            $346
                                                    ====            ====


                                                    Nine Months Ended
                                                      September 30,
                                                      -------------
                                                     2009              2010
                                                     ----              ----
    Capital Expenditures by Segment
        Electric Transmission & Distribution         $288              $317
        Hurricane Ike                                  26                 -
                                                      ---               ---
         Total Electric Transmission & Distribution   314               317
        Natural Gas Distribution                      121               128
        Competitive Natural Gas Sales and Services      2                 2
        Interstate Pipelines                          118                71
        Field Services                                217               472
        Other Operations                               18                15
           Total                                     $790            $1,005
                                                     ====            ======



                                    (Millions of Dollars)
                                         (Unaudited)



                                                          Quarter Ended
                                                          September 30,
                                                          -------------
                                                        2009            2010
                                                        ----            ----
    Interest Expense Detail
        Amortization of Deferred Financing Cost           $9              $6
        Capitalization of Interest Cost                   (1)             (2)
        Transition and System Restoration Bond Interest
         Expense                                          32              34
        Other Interest Expense                           118             117
           Total Interest Expense                       $158            $155
                                                        ====            ====

                                                Nine Months Ended
                                                         September 30,
                                                         -------------
                                                        2009           2010
                                                        ----           ----
    Interest Expense Detail
        Amortization of Deferred Financing Cost          $27            $18
        Capitalization of Interest Cost                   (4)            (5)
        Transition and System Restoration Bond
         Interest Expense                                 98            106
        Other Interest Expense                           361            351
           Total Interest Expense                       $482           $470
                                                        ====           ====

    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)



                                                   December 31, September 30,
                                                            2009          2010
                                                            ----          ----


                                            ASSETS
    Current Assets:
      Cash and cash
       equivalents                                          $740           $99
      Other current assets                                 2,164         2,044
          Total current assets                             2,904         2,143
                                                           -----         -----

    Property, Plant and
     Equipment, net                                       10,788        11,420
                                                          ------        ------

    Other Assets:
      Goodwill                                             1,696         1,696
      Regulatory assets                                    3,677         3,444
      Other non-current
       assets                                                708           696
          Total other assets                               6,081         5,836
            Total Assets                                 $19,773       $19,399
                                                         =======       =======

                                LIABILITIES AND
                              SHAREHOLDERS' EQUITY

    Current Liabilities:
      Short-term borrowings                                  $55           $73
      Current portion of
       transition and system
       restoration bonds long-
       term debt                                             241           283
      Current portion of
       indexed debt                                          121           125
      Current portion of other
       long-term debt                                        541           570
      Other current
       liabilities                                         2,080         1,830
          Total current
           liabilities                                     3,038         2,881
                                                           -----         -----

    Other Liabilities:
      Accumulated deferred
       income taxes, net and
       investment tax credit                               2,792         2,850
      Regulatory liabilities                                 921           978
      Other non-current
       liabilities                                         1,264         1,294
          Total other liabilities                          4,977         5,122
                                                           -----         -----

    Long-term Debt:
      Transition and system
       restoration bonds                                   2,805         2,522
      Other                                                6,314         5,745
          Total long-term debt                             9,119         8,267
                                                           -----         -----

    Shareholders' Equity                                   2,639         3,129
          Total Liabilities and
           Shareholders' Equity                          $19,773       $19,399
                                                         =======       =======





       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)


                                            Nine Months Ended September 30,
                                            -------------------------------
                                                   2009                  2010
                                                   ----                  ----

    Cash Flows from Operating
     Activities:
      Net income                                   $267                  $318
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
        Depreciation and amortization               591                   681
        Deferred income taxes                       250                   112
        Write-down of natural gas inventory           6                     6
        Changes in net regulatory assets             19                    23
        Changes in other assets and
         liabilities                                296                  (170)
        Other, net                                    8                    13
    Net Cash Provided by Operating
     Activities                                   1,437                   983

    Net Cash Used in Investing
     Activities                                    (582)               (1,014)

    Net Cash Used in Financing
     Activities                                    (961)                 (610)
                                                   ----                  ----

    Net Decrease in Cash and Cash
     Equivalents                                   (106)                 (641)

    Cash and Cash Equivalents at
     Beginning of Period                            167                   740

    Cash and Cash Equivalents at End of
     Period                                         $61                   $99
                                                    ===                   ===



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

SOURCE CenterPoint Energy, Inc.

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