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

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, 2010, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported third quarter 2010 earnings. For additional information regarding CenterPoint Energy’s third quarter 2010 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, 2010 regarding CenterPoint Energy, Inc.’s third quarter 2010 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, 2010 regarding CenterPoint Energy, Inc.’s third quarter 2010 earnings

Exhibit 99.1

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For Immediate Release		Page 1 of 5

CENTERPOINT ENERGY REPORTS THIRD QUARTER 2010 EARNINGS

Houston, TX — October 28, 2010 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $123 million, or $0.29 per diluted share, for the third quarter of 2010 compared to $114 million, or $0.31 per diluted share, for the same period of 2009. Operating income for the third quarter of 2010 was $327 million compared to $287 million for the same period of 2009.

“I am pleased with the overall results from our business units this quarter,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our regulated electric and natural gas utilities performed well and we continue to see the benefits of the significant investments we have made in our field services and pipeline businesses.”

For the nine months ended September 30, 2010, net income was $318 million, or $0.78 per diluted share, compared to $267 million, or $0.74 per diluted share, for the same period of 2009. Operating income for the nine months ended September 30, 2010, was $947 million compared to $825 million for the same period of 2009.

OPERATING INCOME BY SEGMENT

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $212 million for the third quarter of 2010, consisting of $178 million from the regulated electric transmission & distribution utility operations (TDU) and $34 million related to transition and system restoration bonds. Operating income for the third quarter of 2009 was $218 million, consisting of $187 million from the TDU and $31 million related to transition bonds. Operating income for the TDU increased from growth of nearly 21,000 metered customers since September 2009, but was more than offset by reduced revenues associated with the credit to customers’ bills reflecting the benefit of deferred taxes associated with Hurricane Ike storm restoration costs, and increased operation and maintenance expenses.

Operating income for the nine months ended September 30, 2010, was $477 million, consisting of $371 million from the TDU and $106 million related to transition and system restoration bonds. Operating income for the same period of 2009 was $450 million, consisting of $353 million from the TDU and $97 million related to transition bonds.

Natural Gas Distribution

The natural gas distribution segment reported an operating loss of $4 million for the third quarter of 2010 compared to an operating loss of $15 million for the same period of 2009. Operating results benefited from rate increases and rate design changes, and higher system throughput, partially offset

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For Immediate Release		Page 2 of 5

by higher operation and maintenance expenses. Due to seasonal impacts, this segment typically reports a loss in the third quarter.

Operating income for the nine months ended September 30, 2010, was $145 million compared to $105 million for the same period of 2009.

Interstate Pipelines

The interstate pipelines segment reported operating income of $68 million for the third quarter of 2010 compared to $64 million for the same period of 2009. Operating income increased due to higher revenue from firm contracts associated with Phase IV of the Carthage to Perryville pipeline and for deliveries to gas-fired power generators, as well as lower operation and maintenance expenses, partially offset by reduced revenues from ancillary services.

In addition to operating income, this segment recorded equity income of $8 million for the third quarter of 2010 primarily from its 50 percent interest in the Southeast Supply Header (SESH) compared to an equity loss of $5 million for the third quarter of 2009, which included a non-cash charge of $11 million to reflect SESH’s discontinued use of regulatory accounting.

Operating income for the nine months ended September 30, 2010, was $207 million compared to $194 million for the same period of 2009. In addition to operating income, this segment recorded equity income of $15 million for the nine months ended September 30, 2010, primarily from its 50 percent interest in SESH compared to $2 million for the nine months ended September 30, 2009, which included non-cash charges of $16 million to reflect SESH’s discontinued use of regulatory accounting.

Field Services

The field services segment reported operating income of $40 million for the third quarter of 2010 compared to $23 million for the same period of 2009. Revenue growth from higher gathering volumes was partially offset by increased operation and maintenance expenses primarily related to facility expansions.

In addition to operating income, this business had equity income of $3 million in the third quarter of 2010 compared to $2 million in the third quarter of 2009 from its 50 percent interest in a gas processing plant.

Operating income for the nine months ended September 30, 2010, was $94 million compared to $72 million for the same period of 2009. Equity income from the jointly-owned gas processing plant was $8 million for the nine months ended September 30, 2010, compared to $6 million for the same period of 2009.

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For Immediate Release		Page 3 of 5

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $7 million for the third quarter of 2010 compared to an operating loss of $8 million for the same period of 2009. Operating income for the third quarter of 2010 included gains of $19 million resulting from mark-to-market accounting for derivatives associated with certain forward natural gas purchases and sales used to lock in economic margins compared to charges of $6 million for the same period of 2009. The third quarter of 2010 also included a $6 million write-down of natural gas inventory to the lower of average cost or market.

Operating income for the nine months ended September 30, 2010, was $16 million compared to no operating income for the same period of 2009. Operating income for the nine months ended September 30, 2010, included gains of $14 million resulting from mark-to-market accounting compared to charges of $22 million for the same period of 2009. Each of the nine months ended September 30, 2010 and 2009, also included $6 million in inventory write-downs.

DIVIDEND DECLARATION

On October 21, 2010, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.195 per share of common stock payable on December 10, 2010, to shareholders of record as of the close of business on November 16, 2010.

OUTLOOK REAFFIRMED FOR 2010

CenterPoint Energy reaffirmed its 2010 earnings guidance of $1.02 to $1.12 per diluted share. This guidance takes into consideration performance to date, equity issuances and various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding the timing and cost of financing activities 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 significant acquisitions or divestitures, any impact to income from the change in value of Time Warner stocks and the related ZENS securities, 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 increased taxes recorded in the first quarter of 2010 as a result of recent health care legislation. For the impact of these factors on the company’s earnings for the three months and nine months ended September 30, 2010, see the reconciliation below.

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For Immediate Release		Page 4 of 5

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, 2010. 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 Thursday, October 28, 2010, 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 over $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 the company’s earnings outlook for 2010 and 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 the appeal 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 natural gas and natural gas liquids prices, 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, 2009, CenterPoint Energy’s and its subsidiaries’ Forms 10-Q for the periods ended March 31, 2010, and June 30, 2010, CenterPoint Energy’s Form 10-Q for the period ended September 30, 2010, and other filings with the SEC.

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For Immediate Release		Page 5 of 5

CenterPoint Energy, Inc. and Subsidiaries

Reconciliation of reported Net Income and diluted EPS to the basis used in providing annual earnings guidance

		Quarter Ended								Nine Months Ended
		September 30, 2010								September 30, 2010
		Net Income				EPS				Net Income				EPS
		(in millions)								(in millions)
As reported		$	123			$	0.29			$	318			$	0.78
Timing effects impacting CES(1):
Mark-to-market (gains) losses — natural gas derivative contracts			(12	)			(0.03	)			(9	)			(0.02	)
Natural gas inventory write-downs			4				0.01				4				0.01
ZENS-related mark-to-market (gains) losses:
Marketable securities(2)			(12	)			(0.03	)			(23	)			(0.06	)
Indexed debt securities			3				0.01				—				—
Tax impact of federal health care legislation			—				—				21				0.05
Per the basis used in providing annual earnings guidance		$	106			$	0.25			$	311			$	0.76

###

CenterPoint Energy, Inc. and Subsidiaries

Statements of Consolidated Income

(Millions of Dollars)
(Unaudited)

		Quarter Ended								Nine Months Ended
		September 30,								September 30,
		2009				2010				2009				2010
Revenues:
Electric Transmission & Distribution		$	608			$	655			$	1,541			$	1,699
Natural Gas Distribution			402				398				2,341				2,400
Competitive Natural Gas Sales and Services			399				647				1,596				2,059
Interstate Pipelines			153				170				461				456
Field Services			63				94				176				242
Other Operations			3				3				9				9
Eliminations			(52	)			(59	)			(142	)			(178	)
Total			1,576				1,908				5,982				6,687
Expenses:
Natural gas			582				808				3,081				3,521
Operation and maintenance			415				444				1,226				1,268
Depreciation and amortization			208				243				562				660
Taxes other than income taxes			84				86				288				291
Total			1,289				1,581				5,157				5,740
Operating Income			287				327				825				947
Other Income (Expense) :
Gain on marketable securities			47				19				68				35
Loss on indexed debt securities			(30	)			(5	)			(54	)			—
Interest and other finance charges			(126	)			(121	)			(384	)			(364	)
Interest on transition and system restoration bonds			(32	)			(34	)			(98	)			(106	)
Equity in earnings (losses) of unconsolidated affiliates			(3	)			10				8				22
Other — net			9				3				31				7
Total			(135	)			(128	)			(429	)			(406	)
Income Before Income Taxes			152				199				396				541
Income Tax Expense			(38	)			(76	)			(129	)			(223	)
Net Income		$	114			$	123			$	267			$	318

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,
		2009				2010				2009				2010
Income from Discontinued Operations			—								(0.01	)			—
Extraordinary item, net of tax			—								0.10				—
Basic Earnings Per Common Share		$	0.31			$	0.29			$	0.75			$	0.79
Income from Discontinued Operations							6.00
Extraordinary item, net of tax							1.00
Diluted Earnings Per Common Share		$	0.31			$	0.29			$	0.74			$	0.78
Dividends Declared per Common Share		$	0.190			$	0.195			$	0.57			$	0.585
Weighted Average Common Shares Outstanding (000):
- Basic			369,512				422,178				356,570				404,957
- Diluted			371,742				424,968				358,745				407,728
Operating Income (Loss) by Segment
Electric Transmission & Distribution:
Electric Transmission and Distribution Operations		$	187			$	178			$	353			$	371
Transition and System Restoration Bond Companies			31				34				97				106
Total Electric Transmission & Distribution			218				212				450				477
Natural Gas Distribution			(15	)			(4	)			105				145
Competitive Natural Gas Sales and Services			(8	)			7				—				16
Interstate Pipelines			64				68				194				207
Field Services			23				40				72				94
Other Operations			5				4				4				8
Total		$	287			$	327			$	825			$	947

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
		2009				2010				Fav/(Unfav)				2009				2010				Fav/(Unfav)
Results of Operations:
Revenues:
Electric transmission and distribution utility		$	503			$	520				3	%		$	1,281			$	1,355				6	%
Transition and system restoration bond companies			105				135				29	%			260				344				32	%
Total			608				655				8	%			1,541				1,699				10	%
Expenses:
Operation and maintenance			194				215				(11	%)			563				609				(8	%)
Depreciation and amortization			70				75				(7	%)			207				219				(6	%)
Taxes other than income taxes			52				52				—				158				156				1	%
Transition and system restoration bond companies			74				101				(36	%)			163				238				(46	%)
Total			390				443				(14	%)			1,091				1,222				(12	%)
Operating Income		$	218			$	212				(3	%)		$	450			$	477				6	%
Operating Income:
Electric transmission and distribution operations		$	187			$	178				(5	%)		$	353			$	371				5	%
Transition and system restoration bond companies			31				34				10	%			97				106				9	%
Total Segment Operating Income		$	218			$	212				(3	%)		$	450			$	477				6	%
Electric Transmission & Distribution Operating Data:
Actual MWH Delivered
Residential			9,242,635				9,262,154				—				20,040,598				21,499,427				7	%
Total			22,963,434				23,342,324				2	%			57,946,697				59,952,416				3	%
Weather (average for service area):
Percentage of 10-year average:
Cooling degree days			107	%			109	%							108	%			104	%
Heating degree days			0	%			0	%							89	%			160	%
Number of metered customers — end of period:
Residential			1,849,158				1,868,421				1	%			1,849,158				1,868,421				1	%
Total			2,094,847				2,115,595				1	%			2,094,847				2,115,595				1	%

		Natural Gas Distribution
		Quarter Ended												Nine Months Ended
		September 30,								% Diff				September 30,								% Diff
		2009				2010				Fav/(Unfav)				2009				2010				Fav/(Unfav)
Results of Operations:
Revenues		$	402			$	398				(1	%)		$	2,341			$	2,400				3	%
Expenses:
Natural gas			198				180				9	%			1,538				1,563				(2	%)
Operation and maintenance			157				160				(2	%)			478				471				1	%
Depreciation and amortization			40				40				—				121				124				(2	%)
Taxes other than income taxes			22				22				—				99				97				2	%
Total			417				402				4	%			2,236				2,255				(1	%)
Operating Income (Loss)		$	(15	)		$	(4	)			73	%		$	105			$	145				38	%
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential			13				13				—				111				125				13	%
Commercial and Industrial			41				46				12	%			164				182				11	%
Total Throughput			54				59				9	%			275				307				12	%
Weather (average for service area)
Percentage of 10-year average:
Heating degree days			58	%			97	%							102	%			110	%
Number of customers — end of period:
Residential			2,954,095				2,969,452				1	%			2,954,095				2,969,452				1	%
Commercial and Industrial			241,036				242,032				—				241,036				242,032				—
Total			3,195,131				3,211,484				1	%			3,195,131				3,211,484				1	%

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
		2009				2010				Fav/(Unfav)				2009				2010				Fav/(Unfav)
Results of Operations:
Revenues		$	399			$	647				62	%		$	1,596			$	2,059				29	%
Expenses:
Natural gas			396				629				(59	%)			1,562				2,009				(29	%)
Operation and maintenance			10				10				—				30				29				3	%
Depreciation and amortization			1				1				—				3				3				—
Taxes other than income taxes			—				—				—				1				2				(100	%)
Total			407				640				(57	%)			1,596				2,043				(28	%)
Operating Income (Loss)		$	(8	)		$	7				188	%		$	—			$	16				—
Competitive Natural Gas Sales and Services Operating Data:
Throughput data in BCF			115				135				17	%			370				404				9	%
Number of customers — end of period			10,934				11,883				9	%			10,934				11,883				9	%

		Interstate Pipelines
		Quarter Ended												Nine Months Ended
		September 30,								% Diff				September 30,								% Diff
		2009				2010				Fav/(Unfav)				2009				2010				Fav/(Unfav)
Results of Operations:
Revenues		$	153			$	170				11	%		$	461			$	456				(1	%)
Expenses:
Natural gas			22				38				(73	%)			85				72				15	%
Operation and maintenance			47				42				11	%			123				112				9	%
Depreciation and amortization			12				13				(8	%)			36				39				(8	%)
Taxes other than income taxes			8				9				(13	%)			23				26				(13	%)
Total			89				102				(15	%)			267				249				7	%
Operating Income		$	64			$	68				6	%		$	194			$	207				7	%
Pipelines Operating Data:
Throughput data in BCF
Transportation			378				422				12	%			1,235				1,260				2	%

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
		2009				2010				Fav/(Unfav)				2009				2010				Fav/(Unfav)
Results of Operations:
Revenues		$	63			$	94				49	%		$	176			$	242				38	%
Expenses:
Natural gas			18				19				(6	%)			36				53				(47	%)
Operation and maintenance			17				29				(71	%)			54				75				(39	%)
Depreciation and amortization			4				6				(50	%)			11				17				(55	%)
Taxes other than income taxes			1				—				—				3				3				—
Total			40				54				(35	%)			104				148				(42	%)
Operating Income		$	23			$	40				74	%		$	72			$	94				31	%
Field Services Operating Data:
Throughput data in BCF
Gathering			106				180				70	%			312				464				49	%

		Other Operations
		Quarter Ended												Nine Months Ended
		September 30,								% Diff				September 30,								% Diff
		2009				2010				Fav/(Unfav)				2009				2010				Fav/(Unfav)
Results of Operations:
Revenues		$	3			$	3				—			$	9			$	9				—
Expenses			(2	)			(1	)			(50	%)			5				1				80	%
Operating Income		$	5			$	4				(20	%)		$	4			$	8				100	%

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

		Quarter Ended								Nine Months Ended
		September 30,								September 30,
		2009				2010				2009				2010
Capital Expenditures by Segment
Electric Transmission & Distribution		$	99			$	121			$	288			$	317
Hurricane Ike			8				—				26				—
Total Electric Transmission & Distribution			107				121				314				317
Natural Gas Distribution			44				54				121				128
Competitive Natural Gas Sales and Services			1				1				2				2
Interstate Pipelines			44				31				118				71
Field Services			113				131				217				472
Other Operations			9				8				18				15
Total		$	318			$	346			$	790			$	1,005

(Millions of Dollars)
(Unaudited)

		Quarter Ended								Nine Months Ended
		September 30,								September 30,
		2009				2010				2009				2010
Interest Expense Detail
Amortization of Deferred Financing Cost		$	9			$	6			$	27			$	18
Capitalization of Interest Cost			(1	)			(2	)			(4	)			(5	)
Transition and System Restoration Bond Interest Expense			32				34				98				106
Other Interest Expense			118				117				361				351
Total Interest Expense		$	158			$	155			$	482			$	470

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,
		2009				2010
ASSETS
Current Assets:
Cash and cash equivalents		$	740			$	99
Other current assets			2,164				2,044
Total current assets			2,904				2,143
Property, Plant and Equipment, net			10,788				11,420
Other Assets:
Goodwill			1,696				1,696
Regulatory assets			3,677				3,444
Other non-current assets			708				696
Total other assets			6,081				5,836
Total Assets		$	19,773			$	19,399
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings		$	55			$	73
Current portion of transition and system restoration bonds long-term debt			241				283
Current portion of indexed debt			121				125
Current portion of other long-term debt			541				570
Other current liabilities			2,080				1,830
Total current liabilities			3,038				2,881
Other Liabilities:
Accumulated deferred income taxes, net and investment tax credit			2,792				2,850
Regulatory liabilities			921				978
Other non-current liabilities			1,264				1,294
Total other liabilities			4,977				5,122
Long-term Debt:
Transition and system restoration bonds			2,805				2,522
Other			6,314				5,745
Total long-term debt			9,119				8,267
Shareholders’ Equity			2,639				3,129
Total Liabilities and Shareholders’ Equity		$	19,773			$	19,399

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,
		2009				2010
Cash Flows from Operating Activities:
Net income		$	267			$	318
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			591				681
Deferred income taxes			250				112
Write-down of natural gas inventory			6				6
Changes in net regulatory assets			19				23
Changes in other assets and liabilities			296				(170	)
Other, net			8				13
Net Cash Provided by Operating Activities			1,437				983
Net Cash Used in Investing Activities			(582	)			(1,014	)
Net Cash Used in Financing Activities			(961	)			(610	)
Net Decrease in Cash and Cash Equivalents			(106	)			(641	)
Cash and Cash Equivalents at Beginning of Period			167				740
Cash and Cash Equivalents at End of Period		$	61			$	99

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