UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION ---------------------------------------------- In the Matter of: CENTERPOINT ENERGY, INC. CERTIFICATE OF 1111 Louisiana NOTIFICATION Houston, Texas 77002 (70-10299) PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 ---------------------------------------------- THIS IS TO CERTIFY that, in accordance with the terms and conditions of the application-declaration, as amended, of CenterPoint Energy, Inc. in the above-captioned file (the "Application") and the order of the Securities and Exchange Commission with respect thereto (HCAR No. 27989 (June 29, 2005)) (the "Order"), CenterPoint Energy, Inc. (the "Company" or "CenterPoint") is reporting the following information for itself and its subsidiaries for the quarterly period ended June 30, 2005. Unless defined herein, capitalized terms have the meaning given them in the Application. 1. The sales of any common stock or preferred stock, preferred securities or equity-linked securities by the Company or a Subsidiary and the purchase price per share and the market price per share at the date of the agreement of sale which shall also separately show the amount issued during the Authorization Period for each type of issued securities. None. 1
2. The total number of shares of the Company's common stock issued or issuable pursuant to options granted during the quarter under incentive compensation plans and other equity compensation and employee benefit plans, dividend, reinvestment plans, and for the CenterPoint Investor's Choice Plan, including any plans hereafter adopted, together with the number of shares issued or issuable during the Authorization Period. 128,770 shares were issued under the Investor's Choice Plan. 253,362 stock options that had been granted previously under the Company's Long Term Incentive Plan were exercised. 4,363 shares of time based restricted stock that had been granted under the Company's Long Term Incentive Plan vested. 6,000 shares of restricted stock that had been granted under the Company's Outside Directors Plan vested. 3. If the Company's common stock has been transferred to a seller of securities of a company being acquired, the number of shares so issued, the value per share and whether the shares are restricted in the hands of the acquirer. None. 4. The market-to-book ratio of the Company's common stock is 3.46. 5. If a guarantee is issued during the quarter, the name of the guarantor, the name of the beneficiary of the guarantee and the amount, terms and purpose of the guarantee. See Exhibit A. 6. With regard to short-term, long-term, intrasystem, and external debt: the amount and terms of any debt issued by the Company during the quarter; and a chart showing: the aggregate amount of debt issued by the Company during the Authorization Period; the aggregate amount of debt outstanding (as it may change from time to time) during the Authorization Period; and the total amount of debt authorized for the Company during the Authorization Period. 2
In March 2005, the Company filed a registration statement relating to an offer to exchange the Company's $575 million aggregate principle amount of 3.75% convertible senior notes due 2023 for a new series of 3.75% convertible senior notes due 2023. This registration statement was declared effective by the SEC on July 19, 2005 at which time the Company commenced the exchange offer. The exchange offer expires on August 17, 2005. See Exhibit B. 7. With regard to short-term and long-term intrasystem debt (Utility Holding is not authorized to issue external debt): the amount and terms of any debt issued by Utility Holding during the quarter; and a chart showing: the aggregate amount of debt issued by Utility Holding during the Authorization Period; the aggregate amount of debt outstanding (as it may change from time to time) during the Authorization Period; and the total amount of debt authorized for Utility Holding during the Authorization Period. None. See Exhibit C. 8. With regard to short-term, long-term, intrasystem and external debt: the amount and terms of any debt issued by any Utility Subsidiary during the quarter; and a chart showing: the aggregate amount of debt issued by each Utility Subsidiary during the Authorization Period; the aggregate amount of debt outstanding (as it may change from time to time) for each Utility Subsidiary during the Authorization Period; and the total amount of debt authorized for each Utility Subsidiary during the Authorization Period. On June 30, 2005, CERC replaced its $250 million three-year revolving credit facility with a $400 million five-year revolving credit facility. The new credit facility terminates on June 30, 2010. Borrowings under this facility may be made at the London interbank offered rate (LIBOR) plus 55 basis points, including the facility fee, based on current credit ratings. An additional utilization fee of 10 basis points applies to borrowings whenever more than 50% of the facility is utilized. Changes in credit ratings could lower or raise the increment to LIBOR depending on whether ratings improved or were lowered. See Exhibit B. 3
9. A separate statement of the amount and terms of each intrasystem financing consummated by any Utility or Non-Utility Subsidiary. See Exhibit D. 10. The notional amount and principal terms of any Hedging Instruments or Anticipatory Hedges entered into during the quarter and the identity of the parties thereto, as well as the aggregate notional amount of Hedging Instruments and Anticipatory Hedges entered into during the Authorization Period. None. 11. The notational amount and principal terms of any derivative instruments issued, bought or sold during the quarter and the identity of the parties thereto, as well as the aggregate notational amount of derivative instruments entered into during the Authorization Period. None. 12. The name, parent company and amount of equity in any intermediate subsidiary (including any financing conduit) during the quarter and the amount and terms of any securities issued by such subsidiaries during the quarter, which shall also show the amount of all securities issued by such subsidiaries during the Authorization Period. The name, parent company and amount of equity in any intermediate subsidiaries has been previously disclosed. 13. A summary of the previously filed information required by a Certificate of Notification on Form U-6B-2. Not applicable. 14. The amount and terms of any other securities issued during the quarter under the authority granted by an order in this file, with a chart showing the aggregate issued during the Authorization Period. None. 4
15. A description of any financing transactions conducted during the quarter, the proceeds of which were used to fund a subsidiary that is a Variable Interest Entity ("VIE") as that term is defined under FASB Interpretation 46R, Consolidation of Variable Interest Entities; and a description of the accounting for each such transaction None. 16. Consolidated balance sheets for the Company and/or a Utility Subsidiary as of the end of the quarter and separate balance sheets as of the end of the quarter for each company that has engaged in jurisdictional financing transactions during the quarter. See Exhibit E hereto. See also the Quarterly Report on Form 10-Q filed by the Company on August 8, 2005 (File No. 1-31447), the Quarterly Report on Form 10-Q filed by CenterPoint Energy Resources Corp. on August 11, 2005 (File No. 1-13265), and the Quarterly Report on Form 10-Q filed by CenterPoint Energy Houston Electric, LLC on August 11, 2005 (File No. 1-3187), all of which are incorporated herein by reference. 17. A table showing, as of the end of the quarter, the dollar and percentage components of the capital structure on a consolidated basis of the Company and of each Utility Subsidiary. See Exhibit F hereto. 18. A retained earnings analysis of the Company on a consolidated basis and of each Utility Subsidiary detailing gross earnings, dividends paid out of each capital account and the resulting capital account balances at the end of the quarter. See Exhibit G hereto. 19. A table showing, as of the end of the quarter, the Money Pool participants and amount of outstanding borrowings for each. See Exhibit H hereto. 5
20. As to each financing subsidiary, (a) the name of the subsidiary; (b) the value of the Company's investment account in such subsidiary; (c) the balance sheet account where the investment and the cost of the investment are booked; (d) the amount invested in the subsidiary by the Company; (e) the type of corporate entity; (f) the percentage owned by the Company; (g) the identification of other owners if not 100% owned by the Company; (h) the purpose of the investment in the subsidiary; and (i) the amounts and types of securities to be issued by the subsidiary. See Exhibit I hereto. The Company and its subsidiaries may organize and acquire, directly or indirectly, the common stock or other equity interests of one or more financing subsidiaries for the purpose of effecting various financing transactions from time to time through the Authorization Period. Financing Subsidiaries may be corporations, trusts, partnerships or other entities created specifically for the purposes described in the Order. The amount of securities issued by the Financing Subsidiaries to third parties will count toward the respective financing limits of its immediate parent. Applicants anticipate that the Financing Subsidiaries will be wholly-owned indirect subsidiaries of CenterPoint and fully consolidated for purposes of financial reporting. Such financing subsidiaries shall be organized only if, in management's opinion, the creation and utilization of such financing subsidiary will likely result in tax savings, increased access to capital markets and/or lower cost of capital for the Company or its subsidiaries. 21. A confidential exhibit updating CenterPoint's financial projections and assumptions through 2008. See Exhibit J hereto. 22. Future registration statements filed under the Securities Act of 1933 with respect to securities that are subject of the instant Application-Declaration will be filed or incorporated by reference into the next Rule 24 certificate in this file. 23. A computation in accordance with Rule 58(a) showing the Company's "aggregate investment" in all energy- or gas-related companies, its "consolidated capitalization," a calculation of the amount remaining under its Rule 58 authority, a breakdown showing the Company's aggregate investment in each energy- or gas-related company counting against the Rule 58 authority, and identification of any new energy- or gas-related company in which the Company has invested or committed to, invest during the preceding quarter. See Item 4 of the Quarterly Report on Form U-9C-3 filed by the Company on August 30, 2005 (File No. 74-00068). 6
24. With respect to any internal reorganization of any Subsidiaries during the quarter, a description of the nature of such reorganization None. 7
All transactions described herein have been carried out in accordance with the terms and conditions of and for the purposes represented in the Application. CENTERPOINT ENERGY, INC. By: /s/ Rufus S. Scott ------------------------------------------------ Rufus S. Scott Vice President, Deputy General Counsel and Assistant Corporate Secretary Dated: August 31, 2005 8
Exhibits - -------- Exhibit Description - ------- ----------- Exhibit A CenterPoint Energy, Inc. and CenterPoint Energy Resources Corp. Guaranties Issued or Amended During Second Quarter 2005 (filed in connection herewith with a request for confidential treatment) Exhibit B CenterPoint Energy, Inc. and Utility Subsidiary Debt Issued, Outstanding and Authorized during the Authorization Period. Exhibit C Utility Holding Debt Issued, Outstanding and Authorized during the Authorization Period. Exhibit D Utility and Non-Utility Subsidiary Intrasystem Financing as of June 30, 2005. Exhibit E Consolidated Balance Sheets for CenterPoint Energy, Inc. and Subsidiaries, CenterPoint Energy Houston Electric, LLC and Subsidiaries, and CenterPoint Energy Resources Corp. and Subsidiaries (as of June 30, 2005) Exhibit F Capital Structure Chart of CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC, and CenterPoint Energy Resources Corp. as of June 30, 2005 Exhibit G Retained Earnings Analysis of CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC, and CenterPoint Energy Resources Corp. Exhibit H Money Pool Participants and Outstanding Borrowings as of June 30, 2005 Exhibit I CenterPoint Energy, Inc. Investments in Financing Subsidiaries as of June 30, 2005 Exhibit J CenterPoint Consolidated Financials (forecasts through 2008) (filed in connection herewith with a request for confidential treatment) 9
. . . EXHIBIT B FILE NO. 70-102999 CALCULATION OF FINANCING AUTHORITY UNDER 1935 ACT AMOUNT AMOUNT AMOUNT OUTSTANDING AT OUTSTANDING AT OUTSTANDING AT EXPLANATION COMPANY SECURITY MARCH 7, 2005 MARCH 31, 2005 JUNE 30, 2005 OF ACTIVITY IN QUARTER - ------- -------- ----------------- ----------------- ----------------- ----------------------- CNP ZENS 107,380,802(1) 107,538,584 108,032,597 Accounting adjustment only; no change in outstanding debt. Convertible Sr. Notes 830,000,000 830,000,000 830,000,000 Senior Notes 600,000,000 600,000,000 600,000,000 Collateralized PCBs FMBs 150,850,000 150,850,000 150,850,000 GMBs 527,200,000 527,200,000 527,200,000 Uncollateralized PCBs 518,700,000 518,700,000 518,700,000 Trust Preferred Securities 100,000,000 100,000,000 100,000,000 Bank Loans 204,000,000 656,000,000 120,000,000 Decrease primarily attributable to proceeds from sale of TGN. ----------------- ----------------- ----------------- Subtotal 3,038,130,802 3,490,288,584 2,954,782,597 Undrawn Bank Capacity 796,000,000 343,842,218(2) 879,348,205(3) ----------------- ----------------- ----------------- Total 3,834,130,802 3,834,130,802 3,834,130,802 ================= ================= ================= CEHE FMBs 102,442,000 102,442,000 102,442,000 GMBs 1,262,275,000 1,262,275,000 1,262,275,000 Collateralized PCBs 229,050,000 229,050,000 229,050,000 Collateralized Term Loan 1,310,000,000 1,310,000,000 1,310,000,000 ----------------- ----------------- ----------------- Subtotal 2,903,767,000 2,903,767,000 2,903,767,000 Transition Bonds 675,879,542 659,965,480 659,965,480 ----------------- ----------------- ----------------- Subtotal 3,579,646,542 3,563,732,480 3,563,732,480 ----------------- ----------------- ----------------- Bank Loans 30,000,000 0 0 ----------------- ----------------- ----------------- Subtotal 3,609,646,542 3,563,732,480 3,563,732,480 Undrawn Bank Capacity 170,000,000 200,000,000 200,000,000 ----------------- ----------------- ----------------- Total 3,779,646,542 3,763,732,480 3,763,732,480 ================= ================= ================= CERC Debentures / Notes 2,242,070,000 2,242,070,000 2,242,070,000 Convertible Subordinated Notes 77,372,900 71,483,900 71,483,900 Note Payable 36,000,000 36,000,000 0 Note repaid at 6/1/05 maturity. Trust Preferred Securities 334,000 334,000 334,000 Bank Loans 0 0 0 ----------------- ----------------- ----------------- Subtotal 2,355,776,900 2,349,887,900 2,313,887,900 Undrawn Bank Capacity 250,000,000 250,000,000 400,000,000 Credit facility replaced on 6/30/05. ----------------- ----------------- ----------------- Total 2,605,776,900 2,599,887,900 2,713,887,900 ================= ================= ================= (1) As of February 28, 2005 (2) Undrawn amount under revolver of $344,000,000 less increase of $157,782 in ZENS debt balance on financial statements since 3/7/05 (3) Undrawn amount under revolver of $880,000,000 less increase of $651,795 in ZENS debt balance on financial statements since 3/7/05 CNP Debt and Preferred as of 3/7/05 3,834,130,802 Incremental Debt and Preferred Authorized in 6/29/05 Financing Order 0 ----------------- Total Amount Authorized 3,834,130,802 Less Debt and Preferred at 6/30/05 3,834,130,802 ----------------- Amount Available at 6/30/05 0 ================= Reservation of Jurisdiction at 6/30/05 $500,000,000 CEHE Debt and Preferred as of 3/7/05 3,779,646,542 Incremental Debt and Preferred Authorized in 6/29/05 Financing Order 0 ----------------- Total Amount Authorized 3,779,646,542 Less Debt and Preferred at 6/30/05 3,763,732,480 ----------------- Amount Available at 6/30/05 15,914,062 ================= Reservation of Jurisdiction at 6/30/05 $ 500,000,000 CERC Debt and Preferred as of 3/7/05 2,605,776,900 Incremental Debt and Preferred Authorized in 6/29/05 Financing Order (1) 150,000,000 ----------------- Total Amount Authorized 2,755,776,900 Less Debt and Preferred at 6/30/05 2,713,887,900 ----------------- Amount Available at 6/30/05 41,889,000 ================= Reservation of Jurisdiction at 6/30/05 $ 500,000,000 (1) The incremental amount related to the 6/30/05 increase in the CERC revolver from $250 million to $400 million.
EXHIBIT C FILE NO. 70-10299 UTILITY HOLDINGS, LLC INTERCOMPANY DEBT AS OF JUNE 30, 2005 Long Term Notes Payable to CEHE 750,000,000.00 Long Term Notes Payable to CNP 150,850,000.00 -------------- Total Intercompany Long Term Notes Payable 900,850,000.00 ============== Long Term Notes Receivable from CNP 750,000,000.00 Long Term Notes Receivable from CEHE 150,850,000.00 -------------- Total Intercompany Long Term Notes Receivable 900,850,000.00 ==============
EXHIBIT D FILE NO. 70-10299 RELATED PARTY TRANSACTIONS AND MAJOR CUSTOMERS -- CEHE Related Party Transactions. The following table summarizes receivables from, or payables to, CenterPoint Energy or its subsidiaries:
EXHIBIT D FILE NO. 70-10299 RELATED PARTY TRANSACTIONS -- CERC The following table summarizes receivables from, or payables to, CenterPoint Energy or its subsidiaries:
EXHIBIT E FILE NO. 70-10299 CENTERPOINT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (THOUSANDS OF DOLLARS) (UNAUDITED) ASSETS DECEMBER 31, JUNE 30, 2004 2005 ------------ ------------ CURRENT ASSETS: Cash and cash equivalents ............................... $ 164,645 $ 408,162 Investment in Time Warner common stock .................. 420,882 361,590 Accounts receivable, net ................................ 741,715 511,846 Accrued unbilled revenues ............................... 576,252 271,779 Natural gas inventory ................................... 174,232 167,514 Materials and supplies .................................. 77,902 77,674 Non-trading derivative assets ........................... 50,219 67,638 Taxes receivable ........................................ -- 6,368 Current assets of discontinued operations ............... 513,768 -- Prepaid expenses and other current assets ............... 116,909 112,226 ------------ ------------ Total current assets .................................. 2,836,524 1,984,797 ------------ ------------ PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment ........................... 10,963,569 11,182,282 Less accumulated depreciation and amortization........... (2,777,176) (2,908,991) ------------ ------------ Property, plant and equipment, net .................... 8,186,393 8,273,291 ------------ ------------ OTHER ASSETS: Goodwill, net ........................................... 1,740,510 1,744,252 Other intangibles, net .................................. 58,068 57,062 Regulatory assets ....................................... 3,349,944 2,928,968 Non-trading derivative assets ........................... 17,682 56,349 Non-current assets of discontinued operations ........... 1,051,158 -- Other ................................................... 921,678 844,972 ------------ ------------ Total other assets .................................... 7,139,040 5,631,603 ------------ ------------ TOTAL ASSETS ........................................ $ 18,161,957 $ 15,889,691 ============ ============
EXHIBIT E FILE NO. 70-10299 CENTERPOINT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - (CONTINUED) (THOUSANDS OF DOLLARS) (UNAUDITED) LIABILITIES AND SHAREHOLDERS' EQUITY DECEMBER 31, JUNE 30, 2004 2005 ------------- ------------ CURRENT LIABILITIES: Current portion of transition bond long-term debt ...................... $ 46,806 $ 49,352 Current portion of other long-term debt ................................ 1,789,182 1,748,083 Indexed debt securities derivative ..................................... 341,575 278,227 Accounts payable ....................................................... 868,023 546,262 Taxes accrued .......................................................... 609,025 117,313 Interest accrued ....................................................... 151,365 158,282 Non-trading derivative liabilities ..................................... 26,323 13,124 Regulatory liabilities ................................................. 225,158 -- Accumulated deferred income taxes, net ................................. 260,958 286,357 Current liabilities of discontinued operations ......................... 448,974 -- Other .................................................................. 419,811 440,659 ------------- ------------ Total current liabilities ............................................ 5,187,200 3,637,659 ------------- ------------ OTHER LIABILITIES: Accumulated deferred income taxes, net ................................. 2,415,143 2,472,727 Unamortized investment tax credits ..................................... 53,690 49,937 Non-trading derivative liabilities ..................................... 6,413 5,873 Benefit obligations .................................................... 440,110 451,562 Regulatory liabilities ................................................. 1,081,370 744,260 Non-current liabilities of discontinued operations ..................... 420,393 -- Other .................................................................. 259,120 295,637 ------------- ------------ Total other liabilities .............................................. 4,676,239 4,019,996 ------------- ------------ LONG-TERM DEBT: Transition bonds ....................................................... 628,903 610,462 Other .................................................................. 6,564,113 6,440,756 ------------- ------------ Total long-term debt ................................................. 7,193,016 7,051,218 ------------- ------------ COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY: Common stock (308,045,215 shares and 309,396,223 shares outstanding at December 31, 2004 and June 30, 2005, respectively) ................ 3,080 3,094 Additional paid-in capital ............................................. 2,891,335 2,907,227 Retained deficit ....................................................... (1,727,571) (1,689,435) Accumulated other comprehensive loss ................................... (61,342) (40,068) ------------- ------------ Total shareholders' equity ........................................... 1,105,502 1,180,818 ------------- ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ......................... $ 18,161,957 $ 15,889,691 ============= ============
EXHIBIT E FILE NO. 70-10299 CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES (AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.) CONSOLIDATED BALANCE SHEETS (THOUSANDS OF DOLLARS) (UNAUDITED) ASSETS DECEMBER 31, JUNE 30, 2004 2005 ----------- ----------- CURRENT ASSETS: Cash and cash equivalents ....................................... $ 24,928 $ 31,090 Accounts and notes receivable, net .............................. 124,452 132,679 Accounts and notes receivable -- affiliated companies, net....... 57,656 -- Accrued unbilled revenues ....................................... 74,089 124,344 Materials and supplies .......................................... 52,886 49,540 Taxes receivable ................................................ 62,078 10,511 Deferred tax asset .............................................. 78,656 76,507 Other ........................................................... 12,201 9,874 ----------- ----------- Total current assets .......................................... 486,946 434,545 ----------- ----------- PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment ................................... 6,245,302 6,349,496 Less accumulated depreciation and amortization .................. (2,203,846) (2,284,420) ----------- ----------- Property, plant and equipment, net ............................ 4,041,456 4,065,076 ----------- ----------- OTHER ASSETS: Other intangibles, net .......................................... 38,349 38,029 Regulatory assets ............................................... 3,328,865 2,902,784 Notes receivable -- affiliated companies ........................ 814,513 814,513 Other ........................................................... 72,624 56,514 ----------- ----------- Total other assets ............................................ 4,254,351 3,811,840 ----------- ----------- TOTAL ASSETS ................................................ $ 8,782,753 $ 8,311,461 =========== ===========
EXHIBIT E FILE NO. 70-10299 CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES (AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.) CONSOLIDATED BALANCE SHEETS (THOUSANDS OF DOLLARS) -- (CONTINUED) (UNAUDITED) LIABILITIES AND MEMBER'S EQUITY DECEMBER 31, JUNE 30, 2004 2005 ----------- ----------- CURRENT LIABILITIES: Current portion of transition bond long-term debt ...................... $ 46,806 $ 49,352 Current portion of other long-term debt ................................ 1,310,106 1,310,106 Accounts payable ....................................................... 40,852 34,326 Accounts and notes payable -- affiliated companies, net................ -- 16,292 Taxes accrued .......................................................... 104,862 54,250 Interest accrued ....................................................... 67,897 75,172 Regulatory liabilities ................................................. 224,732 -- Other .................................................................. 57,706 55,784 ----------- ----------- Total current liabilities ............................................ 1,852,961 1,595,282 ----------- ----------- OTHER LIABILITIES: Accumulated deferred income taxes, net ................................. 1,377,199 1,423,379 Unamortized investment tax credits ..................................... 48,874 45,388 Benefit obligations .................................................... 128,092 134,285 Regulatory liabilities ................................................. 648,305 296,538 Notes payable -- affiliated companies .................................. 150,850 150,850 Accounts payable -- affiliated companies ............................... 303,472 303,472 Other .................................................................. 18,174 17,333 ----------- ----------- Total other liabilities .............................................. 2,674,966 2,371,245 ----------- ----------- LONG-TERM DEBT: Transition bonds ....................................................... 628,903 610,462 Other .................................................................. 1,592,429 1,592,006 ----------- ----------- Total long-term debt ................................................. 2,221,332 2,202,468 ----------- ----------- COMMITMENTS AND CONTINGENCIES MEMBER'S EQUITY: Common stock ........................................................... 1 1 Paid-in capital ........................................................ 2,278,090 2,282,805 Retained deficit ....................................................... (244,597) (140,340) ----------- ----------- Total member's equity ................................................ 2,033,494 2,142,466 ----------- ----------- TOTAL LIABILITIES AND MEMBER'S EQUITY .............................. $ 8,782,753 $ 8,311,461 =========== ===========
EXHIBIT E FILE NO. 70-10299 CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES (AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.) CONSOLIDATED BALANCE SHEETS (THOUSANDS OF DOLLARS) (UNAUDITED) ASSETS DECEMBER 31, JUNE 30, 2004 2005 -------------- -------------- CURRENT ASSETS: Cash and cash equivalents..................................... $ 140,466 $ 379,540 Accounts and notes receivable, net............................ 612,708 375,874 Accrued unbilled revenue...................................... 502,163 147,434 Accounts and notes receivable - affiliated companies, net..... 11,987 115,236 Materials and supplies........................................ 25,017 28,134 Natural gas inventory......................................... 174,232 167,514 Non-trading derivative assets................................. 50,219 67,638 Taxes receivable.............................................. 155,155 16,429 Deferred tax asset............................................ 12,256 -- Prepaid expenses.............................................. 8,308 10,125 Other 92,160 87,136 -------------- -------------- Total current assets........................................ 1,784,671 1,395,060 -------------- -------------- PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment................................. 4,296,061 4,400,046 Less accumulated depreciation................................. (461,978) (502,939) -------------- -------------- Property, plant and equipment, net.......................... 3,834,083 3,897,107 -------------- -------------- OTHER ASSETS: Goodwill...................................................... 1,740,510 1,744,252 Other intangibles, net........................................ 19,719 19,033 Non-trading derivative assets................................. 17,682 56,349 Accounts and notes receivable - affiliated companies, net..... 18,197 16,582 Other 118,089 138,123 -------------- -------------- Total other assets.......................................... 1,914,197 1,974,339 -------------- -------------- TOTAL ASSETS.................................................... $ 7,532,951 $ 7,266,506 ============== ==============
EXHIBIT E FILE NO. 70-10299 CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES (AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.) CONSOLIDATED BALANCE SHEETS -- (CONTINUED) (THOUSANDS OF DOLLARS) (UNAUDITED) LIABILITIES AND STOCKHOLDER'S EQUITY DECEMBER 31, JUNE 30, 2004 2005 -------------- -------------- CURRENT LIABILITIES: Current portion of long-term debt................. $ 366,873 $ 325,000 Accounts payable.................................. 798,661 489,168 Taxes accrued..................................... 77,802 60,292 Interest accrued.................................. 57,741 57,446 Customer deposits................................. 60,164 58,994 Non-trading derivative liabilities................ 26,323 13,124 Accumulated deferred income taxes, net............ -- 4,311 Other............................................. 272,996 292,280 -------------- -------------- Total current liabilities..................... 1,660,560 1,300,615 -------------- -------------- OTHER LIABILITIES: Accumulated deferred income taxes, net............ 640,780 616,726 Non-trading derivative liabilities................ 6,412 5,873 Benefit obligations............................... 128,537 127,874 Other............................................. 556,819 591,831 -------------- -------------- Total other liabilities....................... 1,332,548 1,342,304 -------------- -------------- LONG-TERM DEBT...................................... 2,000,696 1,999,334 -------------- -------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDER'S EQUITY: Common stock...................................... 1 1 Paid-in capital................................... 2,231,906 2,286,638 Retained earnings................................. 305,291 328,033 Accumulated other comprehensive income............ 1,949 9,581 -------------- -------------- Total stockholder's equity.................... 2,539,147 2,624,253 -------------- -------------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY....... $ 7,532,951 $ 7,266,506 ============== ==============
EXHIBIT F FILE NO. 70-10299 CENTERPOINT ENERGY, INC. AND SUBSIDIARIES CAPITAL STRUCTURE BY ENTITY AS OF JUNE 30, 2005 (IN THOUSANDS) CENTER POINT CENTER POINT ENERGY ENERGY CENTERPOINT HOUSTON RESOURCES ENERGY, INC. ELECTRIC, LLC CORP. ------------ ------------- ------------ CURRENT PORTION OF LONG-TERM DEBT $ 1,797,435 17.44% $ 1,359,457 23.22% $ 325,000 6.57% INDEXED DEBT SECURITIES DERIVATIVE 278,227 2.70% - 0.00% - 0.00% DEBT TO AFFILIATE-CENTERPOINT ENERGY, INC. - 0.00% 150,850 2.58% - 0.00% LONG-TERM DEBT 7,051,218 68.41% 2,202,468 37.62% 1,999,334 40.40% COMMON STOCK 3,094 0.03% 1 0.00% 1 0.00% ADDITIONAL PAID-IN CAPITAL 2,907,227 28.20% 2,282,805 38.99% 2,286,638 46.21% RETAINED EARNINGS (DEFICIT) (1,689,435) -16.39% (140,340) -2.40% 328,033 6.63% ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (40,068) -0.39% - 0.00% 9,581 0.19% ------------ ----------- ----------- TOTAL CAPITALIZATION $ 10,307,698 100.00% $ 5,855,241 100.00% $ 4,948,587 100.00% ============ ====== =========== ====== =========== ======
EXHIBIT G FILE NO. 70-10299 CENTERPOINT ENERGY, INC. AND SUBSIDIARIES ROLLFORWARD OF EQUITY FOR THE QUARTER ENDED JUNE 30, 2005 (IN THOUSANDS) BEGINNING INCOME BALANCE FROM LOSS FROM LOSS ON DISPOSAL MARCH 31, CONTINUING DISCONTINUED OF DISCONTINUED EXTRAORDINARY 2005 OPERATIONS OPERATIONS OPERATIONS ITEM ----------- ---------- ---------- ---------- -------- SHAREHOLDERS' EQUITY Common stock $ 3,090 $ - $ - $ - $ - Additional paid-in capital 2,900,793 - - - - Retained deficit (1,722,214) 27,705 (2,988) (735) 30,441 Net deferred loss from cash flow hedges (36,943) - - - - Benefits - minimum liability adjustment (9,592) - - - - ----------- --------- -------- ------ -------- TOTAL SHAREHOLDERS' EQUITY $ 1,135,134 $ 27,705 $ (2,988) $ (735) $ 30,441 =========== ========= ======== ====== ======== OTHER NET DEFERRED CHANGES IN GAIN FROM CHANGES STOCK- ENDING CASH FLOW IN BENEFIT ISSUANCES OF BALANCE JUNE DIVIDENDS HEDGES LIABILITY STOCK 30, 2005 --------- ------- --------- ------- ------------ SHAREHOLDERS' EQUITY Common stock $ - $ - $ - $ 4 $ 3,094 Additional paid-in capital - - - 6,434 2,907,227 Retained deficit (21,644) - - - (1,689,435) Net deferred loss from cash flow hedges - 2,894 - - (34,049) Benefits - minimum liability adjustment - - 3,573 - (6,019) --------- ------- ------- ------- ------------ TOTAL SHAREHOLDERS' EQUITY $ (21,644) $ 2,894 $ 3,573 $ 6,438 $ 1,180,818 ========= ======= ======= ======= ============
EXHIBIT G FILE NO. 70-10299 CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES ROLLFORWARD OF EQUITY FOR THE QUARTER ENDED JUNE 30, 2005 (IN THOUSANDS) ENDING BEGINNING BALANCE BALANCE JUNE 30, MARCH 31, 2005 NET INCOME OTHER 2005 -------------- ---------- ------- ---------- MEMBER'S EQUITY Common stock $ 1 $ - $ - $ 1 Paid-in capital 2,269,823 - 12,982 2,282,805 Retained deficit (216,469) 85,171 (9,042) (140,340) ----------- -------- ------- ---------- TOTAL MEMBER'S EQUITY $ 2,053,355 $ 85,171 $ 3,940 $2,142,466 =========== ======== ======= ==========
EXHIBIT G FILE NO. 70-10299 CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES ROLLFORWARD OF EQUITY FOR THE QUARTER ENDED JUNE 30, 2005 (IN THOUSANDS) BEGINNING CONTRIBUTION BALANCE OTHER FROM PARENT- ENDING MARCH COMPREHENSIVE TAX DIVIDEND BALANCE JUNE 31, 2005 NET INCOME INCOME (LOSS) ALLOCATION TO PARENT OTHER 30, 2005 ---------- ---------- ------------- ------------ ---------- ----- ------------ STOCKHOLDER'S EQUITY Common stock $ 1 $ - $ - $ - $ - $ - $ 1 Paid-in capital 2,262,589 - - 23,346 - 703 2,286,638 Retained earnings 401,248 26,785 - - (100,000) - 328,033 Accumulated other comprehensive income 11,722 - (2,141) - - - 9,581 ---------- ---------- ------------- ------------ ---------- ----- ------------ TOTAL STOCKHOLDER'S EQUITY $2,675,560 $ 26,785 $ (2,141) $ 23,346 $ (100,000) $ 703 $ 2,624,253 ========== ========== ============= ============ ========== ===== ============
EXHIBIT H FILE NO. 70-10299 CENTERPOINT ENERGY, INC. June 30, 2005 INVESTING/BORROWING RATE 4.4497% MONEY POOL #1 COMPANY NAME CO. CODE PRIOR DAY MP POSITION (TO MP) (FROM MP) TODAY'S MP POSITION - ------------------------- -------- --------------------- ---------- ---------- ------------------- CenterPoint Energy, Inc. 0299 19,245,000 15,573,000 3,672,000 CE Houston Electric, LLC 0003 (18,524,000) 7,989,000 (26,513,000) CE Products, Inc. 0057 (482,000) (482,000) CE Resources Corp. 0016 114,352,000 25,137,000 139,489,000 CE Service Company, LLC 0002 (17,641,000) 1,574,000 (19,215,000) CE Funding Company 0051 4,743,000 4,743,000 CE Properties, Inc. 0056 (101,693,000) 1,000 (101,694,000) CE International, Inc. 0093 - - --------------------- ---------- ---------- ------------------- TOTAL POOL ACTIVITY 25,137,000 25,137,000 - --------------------- ---------- ---------- ------------------- TOTAL SOURCES 138,340,000 147,904,000 --------------------- ------------------- Total Uses (138,340,000) (147,904,000) --------------------- ------------------- Net - - ===================== =================== EXTERNAL INVESTMENTS PRIOR DAY INVESTMENT INVEST (REDEEM) OUTSTANDING INVESTMENT - ---------------------------------- -------------------- ------ ----------- ---------------------- CenterPoint Energy, Inc. 0299 - - CE Houston Electric, LLC 0003 - - CE Resources Corp. 0016 394,855,000 (28,379,000) 366,476,000 CE Properties, Inc. 0056 - - -------------------- ------ ----------- ---------------------- TOTAL INVESTMENTS 394,855,000 - (28,379,000) 366,476,000 ==================== ====== =========== ====================== COMMERCIAL PAPER PRIOR DAY OUTSTANDING INCREASE (REPAY) TODAY'S OUTSTANDING WTD RATE - ---------------------------------- --------------------- ---------------- ------------------- -------- CenterPoint Energy, Inc. 0299 - - 0.0000% BANK LOANS - CNP PRIOR DAY OUTSTANDING INCREASE (REPAY) TODAY'S OUTSTANDING WTD RATE - ------------------------------ --------------------- ---------------- ------------------- --------- Revolver Mat 07/22/05 50,000,000 50,000,000 4.300000% Revolver Mat 07/27/05 20,000,000 20,000,000 4.314380% Revolver Mat 07/28/05 20,000,000 20,000,000 4.320000% Revolver Mat 07/29/05 25,000,000 25,000,000 4.325630% Revolver ABR - 5,000,000 5,000,000 6.250000% --------------------- ---------------- ------------------- -------- CNP TOTAL 115,000,000 5,000,000 120,000,000 4.392320% ===================== ================ =================== ======== BANK LOANS - CEHE PRIOR DAY OUTSTANDING INCREASE (REPAY) TODAY'S OUTSTANDING WTD RATE - ------------------------------ --------------------- ---------------- ------------------- -------- Revolver ABR - - 0.00000% --------------------- ---------------- ------------------- -------- CEHE TOTAL - - - 0.000000% ===================== ================ =================== ======== BANK LOANS - CERC PRIOR DAY OUTSTANDING INCREASE (REPAY) TODAY'S OUTSTANDING WTD RATE - ------------------------------ --------------------- ---------------- ------------------- -------- Revolver ABR - - 0.00000% --------------------- ---------------- ------------------- -------- CERC TOTAL - - - 0.00000% ===================== ================ =================== ======== REMAINING CAPACITY UNDER FACILITIES FACILITY SIZE LOANS OUTSTANDING LOCS REMAINING - ----------------------------------- ------------- ----------------- ---------- ------------- CNP Revolver 1,000,000,000 120,000,000 26,959,000 CNP Commercial Paper - 853,041,000 CEHE Revolver 200,000,000 - - 200,000,000 CERC Revolver 400,000,000 - - 400,000,000 ------------- ----------------- ---------- ------------- FACILITY TOTALS 1,600,000,000 120,000,000 26,959,000 1,453,041,000 ============= ================= ========== ============= LIQUIDITY PRIOR DAY AMOUNT TODAY'S AMOUNT - ----------------------------------- ---------------- ---- ---- -------------- External Investments 394,855,000 366,476,000 Remaining Capacity under Facilities 1,308,041,000 1,453,041,000 ---------------- ---- ---- -------------- TOTAL LIQUIDITY 1,702,896,000 - - 1,819,517,000 ================ ==== ==== ==============
EXHIBIT I FILE NO. 70-10299 CenterPoint Energy, Inc. Investment in Financing Subsidiaries As of June 30, 2005 CenterPoint Energy Houston Electric, LLC 10174 CNP Transition Bond Co LLC (3) 3,745,485 10401 CNP Transition Bond Co LLC II (3) 2,756 Utility Holding Company 10054 CenterPoint Energy Capital Trust II (1) 3,199,412 10181 CenterPoint Energy Investment Management, Inc. 699,689,287 CenterPoint Energy Resources Corp. 10381 CenterPoint Energy Resources Trust (1) 5,336,000 10375 CenterPoint Energy Gas Receivables, LLC (2) 73,501,001 (1) Under GAAP accounting, the Trust subsidiaries are deconsolidated from CenterPoint Energy, Inc. and CenterPoint Energy Resources Corp. financial statements as of December 31, 2003, forward. (2) CenterPoint Energy Gas Receivables, LLC is a subsidiary that began activity in November 2002. (3) CNP Transition Bond Co LLC II began activity in December 2004. CNP Transition Bond Co LLC began activity in October 2001 but was capitalized prior to 2000.