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): February 28, 2007

CENTERPOINT ENERGY, INC.

(Exact name of registrant as specified in its charter)

Texas (State or other jurisdiction of incorporation)		1-31447 (Commission File Number)		74-0694415 (IRS Employer Identification No.)

1111 Louisiana Houston, Texas (Address of principal executive offices)		77002 (Zip Code)

Registrant’s telephone number, including area code: (713) 207-1111

     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):

     o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02.   Results of Operations and Financial Condition.

     On February 28, 2007, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported fourth quarter and full year 2006 earnings. Certain information regarding CenterPoint Energy’s fourth quarter and full year 2006 earnings is included in Item 8.01 below. For additional information regarding CenterPoint Energy’s fourth quarter and full year 2006 earnings, please refer to CenterPoint Energy’s press release attached to this report as Exhibit 99.1 (the “Press Release”), which Press Release is incorporated by reference herein. The information in the Press Release is being furnished, not filed, pursuant to Item 2.02. Accordingly, the information in the Press Release will not be incorporated by reference into any registration statement filed by CenterPoint Energy under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Item 8.01.   Other Events.

Fourth Quarter and Full Year 2006 Results

     Net income and income from continuing operations was $67 million, or $0.20 per diluted share, for the fourth quarter of 2006 compared to $81 million, or $0.25 per diluted share, for the same period of 2005. Results for the fourth quarter of 2006 were reduced by $12 million, or $0.04 per diluted share, related to a final agreement with the Internal Revenue Service (IRS) as described below.

     Net income for the year 2006 was $432 million, or $1.33 per diluted share, compared to $252 million, or $0.75 per diluted share, for 2005. Income from continuing operations before extraordinary item for 2006 was also $432 million, or $1.33 per diluted share, compared to $225 million, or $0.67 per diluted share, for 2005.

     Results for the year 2006 included the impact of the resolution of two issues relating to prior years. The first was an agreement with the Appeals Division of the IRS regarding the tax treatment of the company’s Zero Premium Exchangeable Subordinated Notes (ZENS) and its former Automatic Common Exchange Securities. As a result of that agreement, in the second quarter of 2006 the company reduced its previously accrued tax and related interest reserves, adding $119 million ($0.37 per diluted share) to income. In the fourth quarter of 2006, the company increased these reserves, reducing income by $12 million, or $0.04 per diluted share, to reflect the final agreement as approved by the Joint Committee on Taxation of the U.S. Congress. A second issue resolved in 2006 was the remand to the Texas Public Utility Commission of the company’s 2001 unbundled cost of service order (UCOS). As a result of the agreement, which settled all issues, the company reduced income by $21 million after-tax, or $0.06 per diluted share in the second quarter of 2006. Excluding all impacts related to the ZENS tax issue and the UCOS, earnings for the fourth quarter of 2006 and for the year 2006 would have been $0.24 and $1.11 per diluted share, respectively.

     Net income for the year 2005, included an extraordinary gain of $30 million, or $0.09 per diluted share, reflecting an adjustment to the extraordinary loss recorded in the second half of 2004 to write down generation-related regulatory assets. In addition, net income for 2005 included a loss of $3 million, or $0.01 per diluted share, from discontinued operations.

Item 9.01.   Financial Statements and Exhibits.

     The exhibit listed below is furnished pursuant to Item 2.02 of this Form 8-K.

(d)		Exhibits.
99.1		Press Release issued February 28, 2007 regarding CenterPoint Energy, Inc.’s fourth quarter and full year 2006 earnings.

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.

EXHIBIT INDEX

Exhibit Number				Description
99.1		—		Press Release issued February 28, 2007 regarding CenterPoint Energy, Inc.’s fourth quarter and full year 2006 earnings.

Exhibit 99.1

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

For Immediate Release		Page 1 of 5

CENTERPOINT ENERGY REPORTS FOURTH QUARTER AND
FULL YEAR 2006 EARNINGS

     Houston, TX — February 28, 2007 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income and income from continuing operations of $67 million, or $0.20 per diluted share, for the fourth quarter of 2006 compared to $81 million, or $0.25 per diluted share, for the same period of 2005. Results for the fourth quarter of 2006 were reduced by $12 million, or $0.04 per diluted share, related to a final agreement with the Internal Revenue Service (IRS) as described below.

     Net income for the year 2006 was $432 million, or $1.33 per diluted share, compared to $252 million, or $0.75 per diluted share, for 2005. Income from continuing operations before extraordinary item for 2006 was also $432 million, or $1.33 per diluted share, compared to $225 million, or $0.67 per diluted share, for 2005.

     Results for the year 2006 included the impact of the resolution of two issues relating to prior years. The first was an agreement with the Appeals Division of the IRS regarding the tax treatment of the company’s Zero Premium Exchangeable Subordinated Notes (ZENS) and its former Automatic Common Exchange Securities. As a result of that agreement, in the second quarter of 2006 the company reduced its previously accrued tax and related interest reserves, adding $119 million ($0.37 per diluted share) to income. In the fourth quarter of 2006, the company increased these reserves, reducing income by $12 million, or $0.04 per diluted share, to reflect the final agreement as approved by the Joint Committee on Taxation of the U.S. Congress. A second issue resolved in 2006 was the remand to the Texas Public Utility Commission of the company’s 2001 unbundled cost of service order (UCOS). As a result of the agreement, which settled all issues, the company reduced income by $21 million after-tax, or $0.06 per diluted share in the second quarter of 2006. Excluding all impacts related to the ZENS tax issue and the UCOS, earnings for the fourth quarter of 2006 and for the year 2006 would have been $0.24 and $1.11 per diluted share, respectively.

     Net income for the year 2005, included an extraordinary gain of $30 million, or $0.09 per diluted share, reflecting an adjustment to the extraordinary loss recorded in the second half of 2004 to write down generation-related regulatory assets. In addition, net income for 2005 included a loss of $3 million, or $0.01 per diluted share, from discontinued operations.

     “I am very pleased with the overall results that we are reporting today,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our interstate pipelines, field services and competitive natural gas marketing businesses turned in strong performances. However, mild weather and decreased usage led to disappointing results in our natural gas utilities. We have taken a number of steps to better position our company going forward, and I am optimistic about our future.”

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

For Immediate Release		Page 2 of 5

OPERATING INCOME BY SEGMENT DETAILED

Electric Transmission & Distribution

     The electric transmission & distribution segment reported operating income of $96 million in the fourth quarter of 2006, consisting of $66 million for the regulated electric transmission & distribution utility (TDU) (including $11 million for the competition transition charge (CTC)) and $30 million related to the transition bonds. Operating income for the fourth quarter of 2005 totaled $102 million, consisting of $90 million for the TDU (including $16 million for the CTC) and $12 million related to the transition bonds.

     The TDU recorded lower revenues in the fourth quarter of 2006 compared to the same period of 2005 primarily due to the reduction in base rates implemented in October of 2006, a lower CTC amount resulting from the reduction in the allowed rate of return, milder weather and decreased usage. The TDU’s revenues continued to benefit from solid customer growth, with over 37,000 metered customers added during 2006, ending the year with 1.98 million metered customers. Operation and maintenance expenses increased slightly primarily due to increased spending on low income assistance and energy efficiency programs.

     Operating income for the year 2006 was $576 million, consisting of $450 million for the TDU (including $55 million for the CTC) and $126 million related to the transition bonds. Operating income for 2005 totaled $487 million, consisting of $448 million for the TDU (including $19 million for the CTC) and $39 million related to the transition bonds. Operating income increased due to customer growth, a higher CTC amount collected in 2006, higher revenues from ancillary services and proceeds from land sales. These increases were partially offset by milder weather and decreased usage, the implementation of reduced base rates and increased spending on low income assistance and energy efficiency programs. In addition, the TDU’s operating income for 2006 included the $32 million adverse impact of the resolution of the 2001 UCOS order recorded in the second quarter.

Natural Gas Distribution

     The natural gas distribution segment reported operating income of $34 million for the fourth quarter of 2006 compared to $59 million for the same period of 2005. Results for the fourth quarter of 2006 included a $21 million write-off for purchased natural gas costs for periods prior to July 2004. The Minnesota Public Utilities Commission denied recovery of these costs. Operating income was also adversely affected by milder weather and increased costs associated with staff reductions and higher employee-related expenses. Operation and maintenance expenses for 2005 included an $11 million increase in litigation reserves.

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

For Immediate Release		Page 3 of 5

     Operating income for the year 2006 was $124 million compared to $175 million for 2005. In addition to the factors noted above, higher revenues from rate increases and customer growth were more than offset by decreased usage and higher bad debt and other expenses.

Competitive Natural Gas Sales and Services

     The competitive natural gas sales and services segment reported operating income of $33 million for the fourth quarter of 2006 compared to $30 million for the same period of 2005. The increase was primarily driven by increased sales of gas from inventory, partially offset by a $10 million year-end write-down of natural gas inventory to the lower of average cost or market. The company purchases and stores natural gas to meet certain future sales requirements and enters into derivative contracts to hedge the economic value of the future sales.

     Operating income for the year 2006 was $77 million compared to $60 million for 2005. The increase in operating income for 2006 was driven primarily by improved margins resulting from seasonal price differentials, increased sales of gas from inventory and favorable basis differentials over the pipeline capacity that the company controls. In addition, results for 2006 reflect a $37 million favorable change in unrealized gains resulting from mark-to-market accounting for non-trading financial derivatives, and $66 million of write-downs of natural gas inventory.

Interstate Pipelines

     Beginning with the fourth quarter of 2006, the company separated the “pipelines and field services” segment into two reporting segments, “interstate pipelines” and “field services”. All prior period segment information has been recast to conform to the 2006 presentation.

     The interstate pipelines segment reported operating income of $44 million for the fourth quarter of 2006 compared to $46 million for the same period of 2005. Higher operating income from the sale of excess gas no longer required following improvements to a storage facility was more than offset by a write-off of expenses associated with the Mid-Continent Crossing pipeline project that was discontinued.

     Operating income for the year 2006 was $181 million compared to $165 million for 2005. In addition to the factors noted above, operating income for 2006 benefited from increased transportation and ancillary services and reduced litigation reserves, partially offset by increased operating expenses.

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

For Immediate Release		Page 4 of 5

Field Services

     The field services segment reported operating income of $23 million for the fourth quarter of 2006 compared to $21 million for the same period of 2005. The increase was driven by increased gas gathering and ancillary services, which reflect contributions from new facilities placed in service, partially offset by lower commodity prices occurring in the fourth quarter of 2006 and increased operating expenses.

     Operating income for the year 2006 was $89 million compared to $70 million for 2005. The increase in operating income was due to the same factors noted above. Equity income from the company’s 50 percent interest in a jointly-owned gas processing plant was $6 million for each of the years 2006 and 2005. These amounts are included in Other — net under the Other Income (Expense) caption.

DIVIDEND DECLARATION

     On February 1, 2007, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.17 per share of common stock payable on March 9, 2007, to shareholders of record as of the close of business on February 16, 2007.

OUTLOOK FOR 2007

     CenterPoint Energy expects diluted earnings per share for 2007 to be in the range of $1.02 to $1.12. This guidance takes into consideration various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding the impact to earnings of various regulatory proceedings, but cannot predict the ultimate outcome of any of those proceedings. In providing this guidance, the company has not projected the impact of any changes in accounting standards, any impact from acquisitions or divestitures, or the outcome of the TDU’s true-up appeal.

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

     Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the fiscal year ended December 31, 2006 . A copy of that report is available on the company’s web site, www.CenterPointEnergy.com, under the “Investors” section. Other filings the company makes at the SEC and other documents relating to its corporate governance can also be found at that site.

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

For Immediate Release		Page 5 of 5

WEBCAST OF EARNINGS CONFERENCE CALL

     CenterPoint Energy’s management will host an earnings conference call on Wednesday, February 28, 2007, 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/investors/events. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the web site for at least one year.

     CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $17 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at www.CenterPointEnergy.com.

     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 Form 10-K for the period ended December 31, 2006, and other filings with the Securities and Exchange Commission.

###

Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)

		Quarter Ended								Twelve Months Ended
		December 31,								December 31,
		2005				2006				2005				2006
Revenues:
Electric Transmission & Distribution		$	401			$	407			$	1,644			$	1,781
Natural Gas Distribution			1,441				1,079				3,846				3,593
Competitive Natural Gas Sales and Services			1,346				908				4,129				3,651
Interstate Pipelines			104				89				386				388
Field Services			31				36				120				150
Other Operations			4				3				19				15
Eliminations			(115	)			(58	)			(422	)			(259	)
Total			3,212				2,464				9,722				9,319
Expenses:
Natural gas			2,348				1,623				6,509				5,909
Operation and maintenance			384				381				1,358				1,399
Depreciation and amortization			130				147				541				599
Taxes other than income taxes			98				78				375				367
Total			2,960				2,229				8,783				8,274
Operating Income			252				235				939				1,045
Other Income (Expense):
Gain (Loss) on Time Warner investment			(15	)			77				(44	)			94
Gain (Loss) on indexed debt securities			15				(67	)			49				(80	)
Interest and other finance charges			(149	)			(117	)			(670	)			(470	)
Interest on transition bonds			(13	)			(32	)			(40	)			(130	)
Return on true-up balance			17				—				121				—
Other — net			5				8				23				35
Total			(140	)			(131	)			(561	)			(551	)
Income from Continuing Operations Before Income Taxes and Extraordinary Item			112				104				378				494
Income Tax Expense			(31	)			(37	)			(153	)			(62	)
Income from Continuing Operations Before Extraordinary Item			81				67				225				432
Discontinued Operations:
Income from Texas Genco, net of tax			—				—				11				—
Loss on Disposal of Texas Genco, net of tax			—				—				(14	)			—
Total			—				—				(3	)			—
Income Before Extraordinary Item			81				67				222				432
Extraordinary Item, net of tax			—				—				30				—
Net Income		$	81			$	67			$	252			$	432

Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K 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								Twelve Months Ended
		December 31,								December 31,
		2005				2006				2005				2006
Basic Earnings Per Common Share:
Income from Continuing Operations		$	0.26			$	0.21			$	0.72			$	1.39
Income from Discontinued Operations			—				—				(0.01	)			—
Extraordinary item, net of tax			—				—				0.10				—
Net Income		$	0.26			$	0.21			$	0.81			$	1.39
Diluted Earnings Per Common Share:
Income from Continuing Operations		$	0.25			$	0.20			$	0.67			$	1.33
Income from Discontinued Operations			—				—				(0.01	)			—
Extraordinary item, net of tax			—				—				0.09				—
Net Income		$	0.25			$	0.20			$	0.75			$	1.33
Dividends Declared per Common Share		$	0.06			$	0.15			$	0.40			$	0.60
Weighted Average Common Shares Outstanding (000):
- Basic			310,147				313,048				309,349				311,826
- Diluted			320,351				334,618				346,028				324,778
Operating Income (Loss) by Segment
Electric Transmission & Distribution:
Transmission & Distribution Operations		$	90			$	66			$	448			$	450
Transition Bond Companies			12				30				39				126
Total Electric Transmission & Distribution			102				96				487				576
Natural Gas Distribution			59				34				175				124
Competitive Natural Gas Sales and Services			30				33				60				77
Interstate Pipelines			46				44				165				181
Field Services			21				23				70				89
Other Operations			(6	)			5				(18	)			(2	)
Total		$	252			$	235			$	939			$	1,045

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

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

		Electric Transmission & Distribution
		Quarter Ended												Twelve Months Ended
		December 31,												December 31,
										% Diff												% Diff
		2005				2006				Fav/(Unfav)				2005				2006				Fav/(Unfav)
Results of Operations:
Revenues:
Electric transmission and distribution utility		$	374			$	346				(7	%)		$	1,538			$	1,516				(1	%)
Transition bond companies			27				61				126	%			106				265				150	%
Total			401				407				1	%			1,644				1,781				8	%
Expenses:
Operation and maintenance			172				175				(2	%)			618				611				1	%
Depreciation and amortization			61				61				—				258				243				6	%
Taxes other than income taxes			51				44				14	%			214				212				1	%
Transition bond companies			15				31				(107	%)			67				139				(107	%)
Total			299				311				(4	%)			1,157				1,205				(4	%)
Operating Income		$	102			$	96				(6	%)		$	487			$	576				18	%
Operating Income — Electric transmission and distribution utility			90				66				(27	%)			448				450				—
Operating Income — Transition bond companies			12				30				150	%			39				126				223	%
Total Segment Operating Income		$	102			$	96				(6	%)		$	487			$	576				18	%
Electric Transmission & Distribution
Operating Data:
Actual MWH Delivered
Residential			5,317,080				4,637,585				(13	%)			24,923,995				23,954,745				(4	%)
Total			17,055,414				16,638,022				(2	%)			74,189,448				75,876,929				2	%
Weather (average for service area):
Percentage of normal:
Cooling degree days			128	%			116	%			(12	%)			112	%			106	%			(6	%)
Heating degree days			91	%			81	%			(10	%)			82	%			68	%			(14	%)
Average number of metered customers:
Residential			1,704,690				1,742,580				2	%			1,683,100				1,732,656				3	%
Total			1,936,685				1,979,890				2	%			1,912,346				1,968,114				3	%

		Natural Gas Distribution
		Quarter Ended												Twelve Months Ended
		December 31,												December 31,
										% Diff												% Diff
		2005				2006				Fav/(Unfav)				2005				2006				Fav/(Unfav)
Results of Operations:
Revenues		$	1,441			$	1,079				(25	%)		$	3,846			$	3,593				(7	%)
Expenses:
Natural gas			1,148				811				29	%			2,841				2,598				9	%
Operation and maintenance			158				165				(4	%)			551				594				(8	%)
Depreciation and amortization			37				39				(5	%)			152				152				—
Taxes other than income taxes			39				30				23	%			127				125				2	%
Total			1,382				1,045				24	%			3,671				3,469				6	%
Operating Income (Loss)		$	59			$	34				(42	%)		$	175			$	124				(29	%)
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential			53				54				2	%			160				152				(5	%)
Commercial and Industrial			57				64				12	%			215				224				4	%
Total Throughput			110				118				7	%			375				376				—
Weather (average for service area)
Percentage of normal:
Heating degree days			94	%			85	%			(9	%)			91	%			84	%			(7	%)
Average number of customers:
Residential			2,860,032				2,909,673				2	%			2,839,947				2,883,927				2	%
Commercial and Industrial			241,563				244,030				1	%			244,782				243,265				(1	%)
Total			3,101,595				3,153,703				2	%			3,084,729				3,127,192				1	%

Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K 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												Twelve Months Ended
		December 31,												December 31,
										% Diff												% Diff
		2005				2006				Fav/(Unfav)				2005				2006				Fav/(Unfav)
Results of Operations:
Revenues		$	1,346			$	908				(33	%)		$	4,129			$	3,651				(12	%)
Expenses:
Natural gas			1,305				867				34	%			4,033				3,540				12	%
Operation and maintenance			9				7				22	%			30				30				—
Depreciation and amortization			1				—				—				2				1				50	%
Taxes other than income taxes			1				1				—				4				3				25	%
Total			1,316				875				34	%			4,069				3,574				12	%
Operating Income		$	30			$	33				10	%		$	60			$	77				28	%
Competitive Natural Gas Sales and
Services Operating Data:
Throughput data in BCF
Wholesale — third parties			69				84				22	%			304				335				10	%
Wholesale — affiliates			4				9				125	%			27				36				33	%
Retail			44				39				(11	%)			156				149				(4	%)
Pipeline			10				7				(30	%)			51				35				(31	%)
Total Throughput			127				139				9	%			538				555				3	%
Average number of customers:
Wholesale			121				140				16	%			138				140				1	%
Retail			6,616				6,561				(1	%)			6,328				6,452				2	%
Pipeline			135				136				1	%			142				138				(3	%)
Total			6,872				6,837				(1	%)			6,608				6,730				2	%

		Interstate Pipelines
		Quarter Ended												Twelve Months Ended
		December 31,												December 31,
										% Diff												% Diff
		2005				2006				Fav/(Unfav)				2005				2006				Fav/(Unfav)
Results of Operations:
Revenues		$	104			$	89				(14	%)		$	386			$	388				1	%
Expenses:
Natural gas			13				8				38	%			47				31				34	%
Operation and maintenance			31				23				26	%			121				120				1	%
Depreciation and amortization			9				9				—				36				37				(3	%)
Taxes other than income taxes			5				5				—				17				19				(12	%)
Total			58				45				22	%			221				207				6	%
Operating Income		$	46			$	44				(4	%)		$	165			$	181				10	%
Pipelines Operating Data:
Throughput data in BCF
Natural Gas Sales			2				4				(100	%)			6				7				17	%
Transportation			214				221				3	%			914				939				3	%
Elimination			—				(4	)			—				(4	)			(6	)			(50	%)
Total Throughput			216				221				2	%			916				940				3	%

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

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

		Field Services
		Quarter Ended												Twelve Months Ended
		December 31,												December 31,
										% Diff												% Diff
		2005				2006				Fav/(Unfav)				2005				2006				Fav/(Unfav)
Results of Operations:
Revenues		$	31			$	36				16	%		$	120			$	150				25	%
Expenses:
Natural gas			(5	)			(6	)			(20	%)			(10	)			(10	)			—
Operation and maintenance			13				17				(31	%)			49				59				(20	%)
Depreciation and amortization			2				2				—				9				10				(11	%)
Taxes other than income taxes			—				—				—				2				2				—
Total			10				13				(30	%)			50				61				(22	%)
Operating Income		$	21			$	23				10	%		$	70			$	89				27	%
Field Services Operating Data:
Throughput data in BCF
Gathering			91				96				5	%			353				375				6	%
Total Throughput			91				96				5	%			353				375				6	%

		Other Operations
		Quarter Ended												Twelve Months Ended
		December 31,												December 31,
										% Diff												% Diff
		2005				2006				Fav/(Unfav)				2005				2006				Fav/(Unfav)
Results of Operations:
Revenues		$	4			$	3				(25	%)		$	19			$	15				(21	%)
Expenses			10				(2	)			120	%			37				17				54	%
Operating Income (Loss)		$	(6	)		$	5				(183	%)		$	(18	)		$	(2	)			89	%

Capital Expenditures by Segment
(Millions of Dollars)

		(Unaudited)
		Quarter Ended								Twelve Months Ended
		December 31,								December 31,
		2005				2006				2005				2006
Capital Expenditures by Segment
Electric Transmission & Distribution		$	82			$	111			$	281			$	389
Natural Gas Distribution			80				54				249				187
Competitive Natural Gas Sales and Services			8				4				12				18
Interstate Pipelines			37				259				118				437
Field Services			11				24				38				65
Other Operations			4				7				21				25
Total		$	222			$	459			$	719			$	1,121

Interest Expense Detail
(Millions of Dollars)
(Unaudited)

		Quarter Ended								Twelve Months Ended
		December 31,								December 31,
		2005				2006				2005				2006
Interest Expense Detail
Amortization of Deferred Financing Cost		$	17			$	13			$	75			$	53
Capitalization of Interest Cost			(1	)			(4	)			(4	)			(10	)
Transition Bond Interest Expense			13				32				40				130
Other Interest Expense			133				108				599				427
Interest Expense Incurred by Discontinued Operations			—				—				1				—
Total Interest Expense		$	162			$	149			$	711			$	600

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

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

		December 31,				December 31,
		2005				2006
ASSETS
Current Assets:
Cash and cash equivalents		$	74			$	127
Other current assets			2,817				2,868
Total current assets			2,891				2,995
Property, Plant and Equipment, net			8,492				9,204
Other Assets:
Goodwill			1,709				1,709
Regulatory assets			2,955				3,290
Other non-current assets			1,069				435
Total other assets			5,733				5,434
Total Assets		$	17,116			$	17,633
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings		$	—			$	187
Current portion of transition bond long-term debt			73				147
Current portion of other long-term debt			266				1,051
Other current liabilities			2,675				2,836
Total current liabilities			3,014				4,221
Other Liabilities:
Accumulated deferred income taxes, net and investment tax credit			2,520				2,362
Regulatory liabilities			728				792
Other non-current liabilities			990				900
Total other liabilities			4,238				4,054
Long-term Debt:
Transition bond			2,407				2,260
Other			6,161				5,542
Total long-term debt			8,568				7,802
Shareholders’ Equity			1,296				1,556
Total Liabilities and Shareholders’ Equity		$	17,116			$	17,633