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): October 28, 2009

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 October 28, 2009, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported third quarter 2009 earnings. For additional information regarding CenterPoint Energy’s third quarter 2009 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 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 October 28, 2009 regarding CenterPoint Energy, Inc.’s third quarter 2009 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				EXHIBIT DESCRIPTION
	99.1			Press Release issued October 28, 2009 regarding CenterPoint Energy, Inc.’s third quarter 2009 earnings

 

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

 

For Immediate Release		Page 1 of 4

Houston, TX — October 28, 2009 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $114 million, or $0.31 per diluted share, for the third quarter of 2009 compared to $136 million, or $0.39 per diluted share, for the same period of 2008. Operating income for the third quarter of 2009 was $287 million compared to $337 million for the same period of 2008.

“Our core regulated operations, which represent more than 80 percent of our operating income, reported solid earnings this quarter despite the challenging economic climate,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “However, lower natural gas and natural gas liquids prices, a decline in natural gas throughput from the traditional basins and reduced basis differentials negatively impacted the performance of our field services and competitive natural gas sales segments. We continue to believe that the overall fundamentals of our balanced portfolio of electric and natural gas businesses position us well as the economy recovers and the energy markets rebound.”

For the nine months ended September 30, 2009, net income was $267 million, or $0.74 per diluted share, compared to $359 million, or $1.05 per diluted share, for the same period of 2008. Operating income for the nine months ended September 30, 2009, was $825 million compared to $970 million for the same period of 2008.

OPERATING INCOME BY SEGMENT

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $218 million for the third quarter of 2009, consisting of $187 million from the regulated electric transmission & distribution utility operations (TDU) and $31 million related to transition bonds. Operating income for the third quarter of 2008 was $202 million, consisting of $169 million from the TDU and $33 million related to transition bonds. Operating income for the TDU benefited from growth of over 26,000 metered customers since September 2008, favorable weather and higher net transmission revenues, partially offset by higher operation and maintenance expenses. In addition, the third quarter of 2008 was negatively impacted by $12 million as a result of Hurricane Ike.

Operating income for the nine months ended September 30, 2009, was $450 million, consisting of $353 million from the TDU and $97 million related to transition bonds. Operating income for the same period of 2008 was $457 million, consisting of $352 million from the TDU, $100 million related to transition bonds and $5 million from the competition transition charge (CTC). The CTC was discontinued in February 2008 when the company securitized the remaining true-up balance.

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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 4

Natural Gas Distribution

The natural gas distribution segment reported an operating loss of $15 million for the third quarter of 2009 compared to an operating loss of $6 million for the same period of 2008. The decline in operating income was primarily the result of higher pension and other operation and maintenance expenses, which more than offset rate increases and higher miscellaneous revenues. Due to seasonal impacts, this segment typically reports a loss in the third quarter.

Operating income for the nine months ended September 30, 2009, was $105 million compared to $119 million for the same period of 2008.

Interstate Pipelines

The interstate pipelines segment reported operating income of $64 million for the third quarter of 2009 compared to $55 million for the same period of 2008. Operating income benefited from higher revenue from new contracts on the Carthage to Perryville pipeline and for deliveries to gas-fired power generators. These benefits were partially offset by higher pension and other operation and maintenance expenses. In addition, operating income for the third quarter of 2008 included a $7 million write-down associated with pipeline assets removed from service.

In addition to operating income, this segment recorded an equity loss of $5 million for the third quarter of 2009 from its 50 percent interest in the Southeast Supply Header (SESH), a new pipeline that went into service in September 2008. The equity loss included a non-cash charge of $11 million during the quarter to reflect SESH’s decision to discontinue the use of regulatory accounting. In the third quarter of 2008, equity income was $18 million primarily from allowance for funds used during construction.

Operating income for the nine months ended September 30, 2009, was $194 million compared to $227 million for the same period of 2008. Operating income for the nine months ended September 30, 2008, included a net gain of $11 million associated with a gain from the sale of two storage development projects and a write-down of pipeline assets removed from service. In addition to operating income, this business had equity income of $2 million for the nine months ended September 30, 2009, from its interest in SESH. The equity income included non-cash charges of $16 million to reflect SESH’s decision to discontinue the use of regulatory accounting. For the nine months ended September 30, 2008, equity income was $34 million primarily from allowance for funds used during construction.

Field Services

The field services segment reported operating income of $23 million for the third quarter of 2009 compared to $44 million for the same period of 2008. The decline in operating income was primarily the result of commodity prices that were significantly lower in 2009 than in 2008 as well

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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 4

as the impact of lower natural gas throughput from traditional basins, which was partially offset by increased throughput from the unconventional shale plays.

In addition to operating income, this segment recorded equity income of $2 million in the third quarter of 2009 compared to $4 million in the third quarter of 2008 from its 50 percent interest in a gas processing plant. The decline was primarily due to lower natural gas liquids prices.

Operating income for the nine months ended September 30, 2009, was $72 million compared to $121 million for the same period of 2008. Operating income for the nine months ended September 30, 2008, included gains of $17 million associated with the sale of non-strategic assets and the settlement of a contractual dispute. Equity income from the jointly-owned gas processing plant was $6 million for the nine months ended September 30, 2009, compared to $12 million for the same period of 2008.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported an operating loss of $8 million for the third quarter of 2009 compared to operating income of $35 million for the same period of 2008. Operating income for the third quarter of 2009 included charges of $6 million resulting from mark-to-market accounting for derivatives used to lock in economic margins of certain forward natural gas sales compared to gains of $46 million for the same period of 2008. The third quarter of 2008 also included a $24 million write-down of natural gas inventory to the lower of average cost or market. In addition, reduced locational price differentials, and to a lesser extent lower retail sales volumes, contributed to the decline.

This segment recorded no operating income for the nine months ended September 30, 2009, compared to $36 million for the same period of 2008. Operating income for the nine months ended September 30, 2009, included charges of $22 million resulting from mark-to-market accounting compared to gains of $14 million for the same period of 2008. The nine months ended September 30, 2009, also included $6 million in write-downs of inventory to the lower of average cost or market compared to $24 million in inventory write-downs for the same period of 2008.

DIVIDEND DECLARATION

On October 22, 2009, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.19 per share of common stock payable on December 10, 2009, to shareholders of record as of the close of business on November 16, 2009.

OUTLOOK FOR 2009

CenterPoint Energy reaffirmed its 2009 earnings guidance of $1.05 to $1.15 per diluted share. This guidance takes into consideration performance to date as well as various economic and operational assumptions related to the business segments in which the company operates. The

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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 4

company has made certain assumptions regarding the timing and cost of certain financing activities, including timing of the sale of storm cost restoration bonds, 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 acquisitions or divestitures, 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 any impact to income from the change in value of Time Warner stocks and the related ZENS securities.

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, 2009. 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 Wednesday, October 28, 2009, 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 nearly $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 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’ Forms 10-K for the fiscal year ended December 31, 2008, CenterPoint Energy’s and its subsidiaries’ Forms 10-Q for the periods ended March 31, 2009, and June 30, 2009, CenterPoint Energy’s Form 10-Q for the period ended September 30, 2009, and other filings with the SEC.

###

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

		Quarter Ended								Nine Months Ended
		September 30,								September 30,
		2008				2009				2008				2009
Revenues:
Electric Transmission & Distribution		$	552			$	608			$	1,471			$	1,541
Natural Gas Distribution			550				402				2,976				2,341
Competitive Natural Gas Sales and Services			1,269				399				3,632				1,596
Interstate Pipelines			143				153				468				461
Field Services			71				63				191				176
Other Operations			3				3				8				9
Eliminations			(73	)			(52	)			(198	)			(142	)
Total			2,515				1,576				8,548				5,982
Expenses:
Natural gas			1,532				582				5,675				3,081
Operation and maintenance			371				415				1,078				1,226
Depreciation and amortization			194				208				540				562
Taxes other than income taxes			81				84				285				288
Total			2,178				1,289				7,578				5,157
Operating Income			337				287				970				825
Other Income (Expense) :
Gain (loss) on marketable securities			(36	)			47				(73	)			68
Gain (loss) on indexed debt securities			33				(30	)			66				(54	)
Interest and other finance charges			(116	)			(126	)			(346	)			(384	)
Interest on transition bonds			(34	)			(32	)			(102	)			(98	)
Equity in earnings of unconsolidated affiliates			23				(3	)			46				8
Other — net			6				9				10				31
Total			(124	)			(135	)			(399	)			(429	)
Income Before Income Taxes			213				152				571				396
Income Tax Expense			(77	)			(38	)			(212	)			(129	)
Net Income		$	136			$	114			$	359			$	267

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								Nine Months Ended
		September 30,								September 30,
		2008				2009				2008				2009
Basic Earnings Per Common Share		$	0.40			$	0.31			$	1.08			$	0.75
Diluted Earnings Per Common Share		$	0.39			$	0.31			$	1.05			$	0.74
Dividends Declared per Common Share		$	0.1825			$	0.19			$	0.5475			$	0.57
Weighted Average Common Shares Outstanding (000):
- Basic			342,228				369,512				333,652				356,570
- Diluted			344,584				371,742				342,187				358,745
Operating Income (Loss) by Segment
Electric Transmission & Distribution:
Electric Transmission and Distribution Operations		$	169			$	187			$	352			$	353
Competition Transition Charge			—				—				5				—
Total Electric Transmission and Distribution Utility			169				187				357				353
Transition Bond Companies			33				31				100				97
Total Electric Transmission & Distribution			202				218				457				450
Natural Gas Distribution			(6	)			(15	)			119				105
Competitive Natural Gas Sales and Services			35				(8	)			36				—
Interstate Pipelines			55				64				227				194
Field Services			44				23				121				72
Other Operations			7				5				10				4
Total		$	337			$	287			$	970			$	825

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												Nine Months Ended
		September 30,								% Diff				September 30,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues:
Electric transmission and distribution utility		$	455			$	503				11	%		$	1,220			$	1,281				5	%
Transition bond companies			97				105				8	%			251				260				4	%
Total			552				608				10	%			1,471				1,541				5	%
Expenses:
Operation and maintenance			167				194				(16	%)			502				563				(12	%)
Depreciation and amortization			71				70				1	%			208				207				—
Taxes other than income taxes			48				52				(8	%)			153				158				(3	%)
Transition bond companies			64				74				(16	%)			151				163				(8	%)
Total			350				390				(11	%)			1,014				1,091				(8	%)
Operating Income		$	202			$	218				8	%		$	457			$	450				(2	%)
Operating Income:
Electric transmission and distribution operations		$	169			$	187				11	%		$	352			$	353				—
Competition transition charge			—				—				—				5				—				(100	%)
Transition bond companies			33				31				(6	%)			100				97				(3	%)
Total Segment Operating Income		$	202			$	218				8	%		$	457			$	450				(2	%)
Electric Transmission & Distribution Operating Data:
Actual MWH Delivered
Residential			8,445,744				9,242,635				9	%			19,623,125				20,040,598				2	%
Total			21,594,051				22,963,434				6	%			58,523,281				57,946,697				(1	%)
Weather (average for service area):
Percentage of 10-year average:
Cooling degree days			97	%			107	%			10	%			104	%			108	%			4	%
Heating degree days			0	%			0	%			0	%			95	%			89	%			(6	%)
Number of metered customers — end of period:
Residential			1,824,238				1,849,158				1	%			1,824,238				1,849,158				1	%
Total			2,068,568				2,094,847				1	%			2,068,568				2,094,847				1	%

		Natural Gas Distribution
		Quarter Ended												Nine Months Ended
		September 30,								% Diff				September 30,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues		$	550			$	402				(27	%)		$	2,976			$	2,341				(21	%)
Expenses:
Natural gas			351				198				44	%			2,196				1,538				30	%
Operation and maintenance			139				157				(13	%)			436				478				(10	%)
Depreciation and amortization			40				40				—				118				121				(3	%)
Taxes other than income taxes			26				22				15	%			107				99				7	%
Total			556				417				25	%			2,857				2,236				22	%
Operating Income (Loss)		$	(6	)		$	(15	)			(150	%)		$	119			$	105				(12	%)
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential			13				13				—				117				111				(5	%)
Commercial and Industrial			41				38				(7	%)			171				154				(10	%)
Total Throughput			54				51				(6	%)			288				265				(8	%)
Weather (average for service area)
Percentage of 10-year average:
Heating degree days			57	%			58	%			1	%			106	%			102	%			(4	%)
Number of customers — end of period:
Residential			2,936,777				2,954,095				1	%			2,936,777				2,954,095				1	%
Commercial and Industrial			244,959				241,036				(2	%)			244,959				241,036				(2	%)
Total			3,181,736				3,195,131				—				3,181,736				3,195,131				—

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												Nine Months Ended
		September 30,								% Diff				September 30,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues		$	1,269			$	399				(69	%)		$	3,632			$	1,596				(56	%)
Expenses:
Natural gas			1,225				396				68	%			3,567				1,562				56	%
Operation and maintenance			8				10				(25	%)			26				30				(15	%)
Depreciation and amortization			1				1				—				2				3				(50	%)
Taxes other than income taxes			—				—				—				1				1				—
Total			1,234				407				67	%			3,596				1,596				56	%
Operating Income (Loss)		$	35			$	(8	)			(123	%)		$	36			$	—				(100	%)
Competitive Natural Gas Sales and Services Operating Data:
Throughput data in BCF			125				115				(8	%)			392				370				(6	%)
Number of customers — end of period			8,988				10,934				22	%			8,988				10,934				22	%

		Interstate Pipelines
		Quarter Ended												Nine Months Ended
		September 30,								% Diff				September 30,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues		$	143			$	153				7	%		$	468			$	461				(1	%)
Expenses:
Natural gas			24				22				8	%			97				85				12	%
Operation and maintenance			47				47				—				93				123				(32	%)
Depreciation and amortization			11				12				(9	%)			34				36				(6	%)
Taxes other than income taxes			6				8				(33	%)			17				23				(35	%)
Total			88				89				(1	%)			241				267				(11	%)
Operating Income		$	55			$	64				16	%		$	227			$	194				(15	%)
Pipelines Operating Data:
Throughput data in BCF
Transportation			360				378				5	%			1,145				1,235				8	%

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												Nine Months Ended
		September 30,								% Diff				September 30,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues		$	71			$	63				(11	%)		$	191			$	176				(8	%)
Expenses:
Natural gas			5				18				(260	%)			11				36				(227	%)
Operation and maintenance			19				17				11	%			48				54				(13	%)
Depreciation and amortization			3				4				(33	%)			9				11				(22	%)
Taxes other than income taxes			—				1				—				2				3				(50	%)
Total			27				40				(48	%)			70				104				(49	%)
Operating Income		$	44			$	23				(48	%)		$	121			$	72				(40	%)
Field Services Operating Data:
Throughput data in BCF
Gathering			109				106				(3	%)			311				312				—

		Other Operations
		Quarter Ended												Nine Months Ended
		September 30,								% Diff				September 30,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues		$	3			$	3				—			$	8			$	9				13	%
Expenses			(4	)			(2	)			(50	%)			(2	)			5				(350	%)
Operating Income		$	7			$	5				(29	%)		$	10			$	4				(60	%)

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

		Quarter Ended								Nine Months Ended
		September 30,								September 30,
		2008				2009				2008				2009
Capital Expenditures by Segment
Electric Transmission & Distribution		$	80			$	99			$	256			$	288
Hurricane Ike			141				8				141				26
Total Electric Transmission & Distribution			221				107				397				314
Natural Gas Distribution			57				44				151				121
Competitive Natural Gas Sales and Services			1				1				3				2
Interstate Pipelines			60				44				130				118
Field Services			31				113				77				217
Other Operations			5				9				18				18
Total		$	375			$	318			$	776			$	790

Interest Expense Detail
(Millions of Dollars)
(Unaudited)

		Quarter Ended								Nine Months Ended
		September 30,								September 30,
		2008				2009				2008				2009
Interest Expense Detail
Amortization of Deferred Financing Cost		$	6			$	9			$	18			$	27
Capitalization of Interest Cost			(3	)			(1	)			(10	)			(4	)
Transition Bond Interest Expense			34				32				102				98
Other Interest Expense			113				118				338				361
Total Interest Expense		$	150			$	158			$	448			$	482

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,
		2008				2009
ASSETS
Current Assets:
Cash and cash equivalents		$	167			$	61
Other current assets			2,868				1,934
Total current assets			3,035				1,995
Property, Plant and Equipment, net			10,296				10,548
Other Assets:
Goodwill			1,696				1,696
Regulatory assets			3,684				3,701
Other non-current assets			965				713
Total other assets			6,345				6,110
Total Assets		$	19,676			$	18,653
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings		$	153			$	40
Current portion of transition bond long-term debt			208				221
Current portion of other long-term debt			125				339
Other current liabilities			2,362				1,712
Total current liabilities			2,848				2,312
Other Liabilities:
Accumulated deferred income taxes, net and investment tax credit			2,632				2,775
Regulatory liabilities			821				916
Other non-current liabilities			1,172				1,235
Total other liabilities			4,625				4,926
Long-term Debt:
Transition bond			2,381				2,160
Other			7,800				6,667
Total long-term debt			10,181				8,827
Shareholders’ Equity			2,022				2,588
Total Liabilities and Shareholders’ Equity		$	19,676			$	18,653

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,
		2008				2009
Cash Flows from Operating Activities:
Net income		$	359			$	267
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			561				591
Deferred income taxes			471				250
Write-down of natural gas inventory			24				6
Changes in net regulatory assets			(48	)			19
Changes in other assets and liabilities			(608	)			296
Other, net			(35	)			8
Net Cash Provided by Operating Activities			724				1,437
Net Cash Used in Investing Activities			(991	)			(582	)
Net Cash Provided by (Used in) Financing Activities			222				(961	)
Net Decrease in Cash and Cash Equivalents			(45	)			(106	)
Cash and Cash Equivalents at Beginning of Period			129				167
Cash and Cash Equivalents at End of Period		$	84			$	61

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