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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): AUGUST 26, 2005
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CENTERPOINT ENERGY, INC.
(Exact name of registrant as specified in its charter)
TEXAS 1-31447 74-0694415
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1111 LOUISIANA
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 207-1111
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CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC
(Exact name of registrant as specified in its charter)
TEXAS 1-3187 22-3865106
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1111 LOUISIANA
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 207-1111
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 8.01 OTHER EVENTS.
On August 26, 2005, a Travis County District Court issued its final
judgment on the various appeals taken from the order issued by the Public
Utility Commission of Texas (the "PUC") in December 2004 determining the
stranded costs and other transition costs due under the Texas electric
restructuring law to CenterPoint Energy Houston Electric, LLC ("CEHE"), the
electric transmission and distribution subsidiary of CenterPoint Energy, Inc.
("CenterPoint Energy"). The judgment affirmed most aspects of the PUC's order
but reversed in favor of CEHE two of the PUC's rulings. The judgment restores
approximately $620 million, plus interest, of the $1.7 billion the PUC had
disallowed from CenterPoint Energy's initial request.
CEHE filed its stranded cost true-up request in March 2004, seeking
$3.7 billion plus interest related to the restructuring of the Texas electric
industry. In December 2004, the PUC issued a final order authorizing CEHE to
recover approximately $2.3 billion, which included interest through August 31,
2004. The order also provided for adjustment of the amount to be recovered to
include interest on the balance until recovery, a portion of additional excess
mitigation credits returned to customers after August 31, 2004 and certain other
matters. CEHE and a number of other parties appealed the PUC's decision.
The judgment on these appeals reversed the PUC decision to prohibit
CEHE from recovering $180 million of the excess mitigation credits that CEHE was
ordered to make as a result of a stranded cost estimate made by the PUC in 2000
that subsequently proved to be inaccurate. The judgment also reversed the PUC's
disallowance of $440 million in transition costs recoverable under the PUC's
regulations. Approximately $30 million of additional excess mitigation credits
paid after August 2004 through the termination of the excess mitigation credits
on April 29, 2005 would be added to these amounts, resulting in a total
increased recovery of approximately $650 million, plus interest.
CenterPoint Energy continues to believe the PUC failed to follow the
statute and the applicable regulations in other significant respects and has
appealed to correct these errors to the Court of Appeals for the Third District
of Texas in Austin. Other parties have 30 days from August 26, 2005 to appeal
the judgment. Ultimately, the appeal process is expected to take an additional
two years to complete.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This report includes forward-looking statements. Actual events and
results may differ materially from those projected. The statements in this
report regarding certain amounts to be recovered, the timing of the appeal
process and other statements that are not historical facts are forward-looking
statements. Factors that could affect actual results include the ultimate
outcome of the true-up proceeding and any legal proceedings related thereto, the
timing and impact of future regulatory and legislative decisions and other
factors discussed in CenterPoint Energy's and its subsidiaries' Form 10-Ks for
the period ended December 31, 2004, Form 10-Qs for the periods ended March 31,
2005 and June 30, 2005, and other filings with the Securities and Exchange
Commission.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CENTERPOINT ENERGY, INC.
Date: August 29, 2005 By: /s/ James S. Brian
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James S. Brian
Senior Vice President and
Chief Accounting Officer
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC
Date: August 29, 2005 By: /s/ James S. Brian
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James S. Brian
Senior Vice President and
Chief Accounting Officer
