HOUSTON, Jun 28, 2007 (PrimeNewswire via COMTEX News Network) -- CenterPoint Energy, Inc.'s (NYSE:CNP) electric transmission and distribution subsidiary, CenterPoint Energy Houston Electric, LLC, today filed an application with the Public Utility Commission of Texas seeking approval of a financing order to issue over $500 million in low cost transition bonds also known as securitization bonds.
"Today's application was made possible because the Texas Legislature passed House Bill 624, which was sponsored by Representative Phil King in the House and Senator Troy Fraser in the Senate and enjoyed widespread support in the legislature. Under House Bill 624, CenterPoint Energy will issue bonds to recover certain amounts currently being collected through a monthly Competition Transition Charge or CTC to Retail Electric Providers," said Scott. E. Rozzell, executive vice president and general counsel for CenterPoint Energy. "Since the bonds will carry a lower interest rate, the result will be savings for customers."
"Securitization lowers the costs of financing the recovery of approved transition balances by transmission and distribution utilities," said State Representative Phil King (R-Weatherford), author of House Bill 624. "By issuing these bonds, CenterPoint Energy will reduce the 8 percent interest rate currently being paid on their transition balances to a much lower rate. Assuming the interest rate at the time the bonds are issued is 5 1/2 percent; customers could save more than $50 million over a 14 year period."
"I am pleased that, through the enactment of this legislation, electricity customers served by CenterPoint Energy should enjoy lower rates and greater savings," added Senator Fraser (R-Horseshoe Bay).
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission and distribution, natural gas distribution, competitive natural gas sales and services, and pipeline 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.
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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, 2006, CenterPoint Energy's and its subsidiaries' Form 10-Qs for the period ended March 31, 2007, and other filings with the Securities and Exchange Commission.
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SOURCE: CenterPoint Energy, Inc.
CenterPoint Energy, Inc. Media: Leticia Lowe 713.207.7702 Investors: Marianne Paulsen 713.207.6500
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