View Filing Data

172

230

Total other assets

5,797

6,081

Current portion of VIE transition and system restoration bonds long-term debt

20,111

19,773

Current Liabilities:

Short-term Borrowings

^[1]

283

241

Current portion of indexed debt

126

121

Current portion of other long-term debt

541

Non-trading derivative liabilities

232

201

Accounts payable

667

648

Taxes accrued

156

148

Interest accrued

171

181

Accumulated deferred income taxes, net, current

407

406

Total current liabilities

438

445

2,620

3,038

Other Liabilities:

Accumulated deferred income taxes, net, noncurrent

2,934

2,776

Unamortized investment tax credits

Non-trading derivative liabilities

906

861

Regulatory liabilities

989

921

VIE transition and system restoration bonds

438

361

Total other liabilities

5,292

4,977

Long-term Debt:

2,522

2,805

Commitments and Contingencies (Note 13)

6,479

6,314

Total long-term debt

$ 9,001

$ 9,119

Shareholders' Equity

$ 3,198

$ 2,639

Total Liabilities and Shareholders' Equity

$ 20,111

$ 19,773

[1]	Includes amounts due or exchangeable within one year of the date noted.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Current Assets: [Abstract]
Cash and cash equivalents, VIE	$ 198	$ 151
Accounts receivable, net, VIE	49	44
Prepaid expenses and other current assets, VIE	39	34
Other Assets:
Regulatory assets, VIE	$ 2,597	$ 2,886

STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash Flows from Operating Activities:
Net Income	$ 442	$ 372	$ 446
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	864	743	708
Amortization of deferred financing costs	27	37	29
Deferred income taxes	199	269	487
Unrealized loss (gain) on marketable securities	(67)	(82)	139
Unrealized loss (gain) on indexed debt securities	31	68	(128)
Write-down of natural gas inventory	6	6	30
Equity in earnings of unconsolidated affiliates, net of distributions	13	(3)	(51)
Changes in other assets and liabilities:
Accounts receivable and unbilled revenues, net	101	283	(82)
Inventory	(54)	236	(109)
Taxes receivable	(138)	0	0
Accounts payable	(34)	(237)	87
Fuel cost over (under) recovery	(9)	(5)	45
Non-trading derivatives, net	(5)	28	(25)
Margin deposits, net	7	116	(182)
Interest and taxes accrued	(2)	(41)	(118)
Net regulatory assets and liabilities	14	0	(366)
Other current assets	(2)	27	(27)
Other current liabilities	(1)	6	29
Other assets	(8)	(1)	(20)
Other liabilities	4	3	(8)
Other, net	(2)	16	(33)
Net cash provided by operating activities	1,386	1,841	851
Cash Flows from Investing Activities:
Capital expenditures	(1,509)	(1,160)	(1,020)
Decrease (increase) in restricted cash of transition and system restoration bonds companies	(5)	26	(11)
Decrease (increase) in notes receivable from unconsolidated affiliates	0	323	(175)
Investment in unconsolidated affiliates	(18)	(115)	(206)
Cash received from U.S. Department of Energy grant	90	0	0
Other, net	22	30	44
Net cash used in investing activities	(1,420)	(896)	(1,368)
Cash Flows from Financing Activities:
Decrease in short-term borrowings, net	(2)	(98)	(79)
Revolving credit facilities, net	0	(1,441)	1,110
Proceeds from commercial paper, net	183	0	0
Proceeds from long-term debt	0	1,165	1,088
Payments on long-term debt	(783)	(222)	(1,373)
Debt issuance costs	(2)	(10)	(26)
Payment of common stock dividends	(319)	(276)	(246)
Proceeds from issuance of common stock, net	416	504	80
Other, net	0	6	1
Net cash provided by (used in) financing activities	(507)	(372)	555
Net Increase (Decrease) in Cash and Cash Equivalents	(541)	573	38
Cash and Cash Equivalents at Beginning of Year	740	167	129
Cash and Cash Equivalents at End of Year	199	740	167
Cash Payments:
Interest, net of capitalized interest	609	624	586
Income taxes (refunds), net	207	(9)	(84)
Non-cash transactions:
Accounts payable related to capital expenditures	$ 137	$ 84	$ 96

STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY - USD ($)
shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2010

Mar. 31, 2010

Dec. 31, 2009

Mar. 31, 2009

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

$ 2,639

$ 2,022

$ 2,639

$ 2,022

$ 124

^[1]

$ 114

^[2]

$ 105

$ 67

442

372

$ 446

$ 3,198

$ 2,639

$ 3,198

$ 2,639

$ 2,022

Preferred Stock [Member]

$ 0

$ 0

Common Stock [Member]

391

346

391

346

323

Issuances related to public offerings

$ 4

$ 3

$ 4

$ 3

$ 0

$ 0

$ 1

$ 0

425

391

425

391

346

Additional Paid-in-Capital [Member]

$ 4

$ 3

$ 3,671

3,158

$ 3,671

3,158

3,046

$ 114

$ 86

112

$ 315

$ 427

Accumulated Deficit [Member]

4,100

$ 3,671

4,100

$ 3,671

3,158

Cumulative effect of change in accounting principle

(912)

(1,008)

(912)

(1,008)

(1,194)

(15)

Balance, beginning of year (as adjusted)

(912)

(1,008)

(1,209)

442

372

446

Common stock dividends

(319)

(276)

(245)

Accumulated Other Comprehensive Loss [Member]

(789)

(912)

(789)

(912)

(1,008)

Adjustment to pension and postretirement plans

$ (124)

$ (131)

(124)

(131)

(114)

(120)

(114)

(120)

(127)

Net deferred loss from cash flow hedges

(3)

(4)

(3)

(4)

Preference Stock [Member]

$ (117)

$ (124)

$ (117)

$ (124)

$ (131)

$ 0

$ 0

[1]	During the fourth quarter of 2010, CenterPoint Energy recorded a $21 million gain on the sale of non-strategic gathering assets by its Field Services business segment. CenterPoint Energy also recorded a $24 million decrease in income tax expense related to the effects of re-measuring accumulated deferred income taxes associated with the restructuring of certain subsidiaries.
[2]	During the first quarter of 2010, CenterPoint Energy recorded a $21 million charge to income tax expense as a result of a change in tax law upon the enactment in March 2010 of the Patient Protection and Affordable Care Act and the related Health Care and Education Reconciliation Act of 2010.

STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement of Stockholders' Equity [Abstract]
Preference Stock, none outstanding	0	0	0
Cumulative preferred stock par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Cumulative preferred stock shares authorized (in shares)	20,000,000	20,000,000	20,000,000
Common stock shares par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	1,000,000,000	1,000,000,000	1,000,000,000
Dividends Declared Per Share (in dollars per share)	$ 0.78	$ 0.76	$ 0.73

Background

12 Months Ended

Dec. 31, 2010

Background

(1) Background

CenterPoint Energy, Inc. (CenterPoint Energy) is a public utility holding company. CenterPoint Energy’s operating subsidiaries own and operate electric transmission and distribution facilities, natural gas distribution facilities, interstate pipelines and natural gas gathering, processing and treating facilities. As of December 31, 2010, CenterPoint Energy’s indirect wholly owned subsidiaries included:

•

CenterPoint Energy Houston Electric, LLC (CenterPoint Houston), which engages in the electric transmission and distribution business in the Texas Gulf Coast area that includes the city of Houston; and

•

CenterPoint Energy Resources Corp. (CERC Corp. and, together with its subsidiaries, CERC), which owns and operates natural gas distribution systems. Subsidiaries of CERC own interstate natural gas pipelines and gas gathering systems and provide various ancillary services. A wholly owned subsidiary of CERC Corp. offers variable and fixed-price physical natural gas supplies primarily to commercial and industrial customers and electric and gas utilities.

For a description of CenterPoint Energy’s reportable business segments, see Note 16.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Summary of Significant Accounting Policies

(2) Summary of Significant Accounting Policies

(a) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(b) Principles of Consolidation

The accounts of CenterPoint Energy and its wholly owned and majority owned subsidiaries are included in the consolidated financial statements. All intercompany transactions and balances are eliminated in consolidation. CenterPoint Energy uses the equity method of accounting for investments in entities in which CenterPoint Energy has an ownership interest between 20% and 50% and exercises significant influence. CenterPoint Energy’s investments in unconsolidated affiliates include a 50% ownership interest in Southeast Supply Header, LLC (SESH) which owns and operates a 274-mile interstate natural gas pipeline and a 50% interest in Waskom Gas Processing Company (Waskom), a Texas general partnership, which owns and operates a natural gas processing plant and natural gas gathering assets. During 2009, CenterPoint Energy invested $137 million in SESH and received a capital distribution of $23 million from SESH. During 2010, CenterPoint Energy invested $20 million in Waskom. Other investments, excluding marketable securities, are carried at cost.

CenterPoint Energy records revenue for electricity delivery and natural gas sales and services under the accrual method and these revenues are recognized upon delivery to customers. Electricity deliveries not billed by month-end are accrued based on daily supply volumes, applicable rates and analyses reflecting significant historical trends and experience. Natural gas sales not billed by month-end are accrued based upon estimated purchased gas volumes, estimated lost and unaccounted for gas and currently effective tariff rates. The Interstate Pipelines and Field Services business segments record revenues as transportation and processing services are provided.

(d) Long-lived Assets and Intangibles

CenterPoint Energy records property, plant and equipment at historical cost. CenterPoint Energy expenses repair and maintenance costs as incurred.

CenterPoint Energy periodically evaluates long-lived assets, including property, plant and equipment, and specifically identifiable intangibles, when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The determination of whether an impairment has occurred is based on an estimate of undiscounted cash flows attributable to the assets compared to the carrying value of the assets.

(e) Regulatory Assets and Liabilities

CenterPoint Energy applies the guidance for accounting for regulated operations, to the Electric Transmission & Distribution business segment and the Natural Gas Distribution business segment and to portions of the Interstate Pipelines business segment.

CenterPoint Energy’s rate-regulated businesses recognize removal costs as a component of depreciation expense in accordance with regulatory treatment. As of December 31, 2009 and 2010, these removal costs of $818 million and $868 million, respectively, are classified as regulatory liabilities in CenterPoint Energy’s Consolidated Balance Sheets. A portion of the amount of removal costs that relate to asset retirement obligations has been reclassified from a regulatory liability to an asset retirement liability in accordance with accounting guidance for conditional asset retirement obligations.

(f) Depreciation and Amortization Expense

Depreciation and amortization is computed using the straight-line method based on economic lives or regulatory-mandated recovery periods. Amortization expense includes amortization of regulatory assets and other intangibles.

(g) Capitalization of Interest and Allowance for Funds Used During Construction

Interest and allowance for funds used during construction (AFUDC) are capitalized as a component of projects under construction and are amortized over the assets’ estimated useful lives once the assets are placed in service. AFUDC represents the composite interest cost of borrowed funds and a reasonable return on the equity funds used for construction for subsidiaries that apply the guidance for accounting for regulated operations. During 2008, 2009 and 2010, CenterPoint Energy capitalized interest and AFUDC of $12 million, $5 million and $9 million, respectively.

(h) Income Taxes

CenterPoint Energy files a consolidated federal income tax return and follows a policy of comprehensive interperiod tax allocation. CenterPoint Energy uses the asset and liability method of accounting for deferred income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Investment tax credits that were deferred are being amortized over the estimated lives of the related property. A valuation allowance is established against deferred tax assets for which management believes realization is not considered more likely than not. CenterPoint Energy recognizes interest and penalties as a component of income tax expense.

(i) Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are net of an allowance for doubtful accounts of $24 million and $25 million at December 31, 2009 and 2010, respectively. The provision for doubtful accounts in CenterPoint Energy’s Statements of Consolidated Income for 2008, 2009 and 2010 was $54 million, $36 million and $30 million, respectively.

(j) Inventory

Inventory consists principally of materials and supplies and natural gas. Materials and supplies are valued at the lower of average cost or market. Materials and supplies are recorded to inventory when purchased and subsequently charged to expense or capitalized to plant when installed. Natural gas inventories of CenterPoint Energy’s Competitive Natural Gas Sales and Services business segment are also primarily valued at the lower of average cost or market. Natural gas inventories of CenterPoint Energy’s Natural Gas Distribution business segment are primarily valued at weighted average cost. During both 2009 and 2010, CenterPoint Energy recorded $6 million in write-downs of natural gas inventory to the lower of average cost or market.

	December 31,
	2009		2010
	(in millions)
Materials and supplies	$	138	$	164
Natural gas		189		211
Total inventory	$	327	$	375

(k) Derivative Instruments

CenterPoint Energy is exposed to various market risks. These risks arise from transactions entered into in the normal course of business. CenterPoint Energy utilizes derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices and weather on its operating results and cash flows. Such derivatives are recognized in CenterPoint Energy’s Consolidated Balance Sheets at their fair value unless CenterPoint Energy elects the normal purchase and sales exemption for qualified physical transactions. A derivative may be designated as a normal purchase or normal sale if the intent is to physically receive or deliver the product for use or sale in the normal course of business.

CenterPoint Energy has a Risk Oversight Committee composed of corporate and business segment officers that oversees all commodity price, weather and credit risk activities, including CenterPoint Energy’s marketing, risk management services and hedging activities. The committee’s duties are to establish CenterPoint Energy’s commodity risk policies, allocate board-approved commercial risk limits, approve the use of new products and commodities, monitor positions and ensure compliance with CenterPoint Energy’s risk management policies and procedures and limits established by CenterPoint Energy’s board of directors.

CenterPoint Energy’s policies prohibit the use of leveraged financial instruments. A leveraged financial instrument, for this purpose, is a transaction involving a derivative whose financial impact will be based on an amount other than the notional amount or volume of the instrument.

(l) Investments in Other Debt and Equity Securities

CenterPoint Energy reports “trading” securities at estimated fair value in its Consolidated Balance Sheets, and any unrealized holding gains and losses are recorded as other income (expense) in its Statements of Consolidated Income.

(m) Environmental Costs

CenterPoint Energy expenses or capitalizes environmental expenditures, as appropriate, depending on their future economic benefit. CenterPoint Energy expenses amounts that relate to an existing condition caused by past operations that do not have future economic benefit. CenterPoint Energy records undiscounted liabilities related to these future costs when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated.

(n) Statements of Consolidated Cash Flows

For purposes of reporting cash flows, CenterPoint Energy considers cash equivalents to be short-term, highly liquid investments with maturities of three months or less from the date of purchase. In connection with the issuance of transition bonds and system restoration bonds, CenterPoint Energy was required to establish restricted cash accounts to collateralize the bonds that were issued in these financing transactions. These restricted cash accounts are not available for withdrawal until the maturity of the bonds and are not included in cash and cash equivalents. These restricted cash accounts of $34 million and $39 million at December 31, 2009 and 2010, respectively, are included in other current assets in CenterPoint Energy's Consolidated Balance Sheets. For additional information regarding transition and system restoration bonds, see Notes 5(b) and 5(c). Cash and cash equivalents includes $151 million and $198 million at December 31, 2009 and 2010, respectively, that is held by CenterPoint Energy’s transition and system restoration bond subsidiaries solely to support servicing the transition and system restoration bonds.

(o) New Accounting Pronouncements

In June 2009, the Financial Accounting Standards Board (FASB) issued new accounting guidance on consolidation of variable interest entities (VIEs) that changes how a reporting entity determines a primary beneficiary that would consolidate the VIE from a quantitative risk and rewards approach to a qualitative approach based on which variable interest holder has the power to direct the economic performance related activities of the VIE as well as the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE. This new guidance requires the primary beneficiary assessment to be performed on an ongoing basis and also requires enhanced disclosures that will provide more transparency about a company’s involvement in a VIE. This new guidance was effective for a reporting entity’s first annual reporting period beginning after November 15, 2009. CenterPoint Energy’s adoption of this new guidance did not have a material impact on its financial position, results of operations or cash flows. As of December 31, 2010, CenterPoint Energy has four VIEs consisting of transition and system restoration bond companies which it consolidates. The consolidated VIEs are wholly-owned bankruptcy remote special purpose entities that were formed specifically for the purpose of securitizing transition and system restoration related property. Creditors of CenterPoint Energy have no recourse to any assets or revenues of the transition and system restoration bond companies. The bonds issued by these VIEs are payable only from and secured by transition and system restoration property and the bond holders have no recourse to the general credit of CenterPoint Energy.

In January 2010, the FASB issued new accounting guidance to require additional fair value related disclosures. It also clarified existing fair value disclosure guidance about the level of disaggregation and about inputs and valuation techniques. This new guidance was effective for the first reporting period beginning after December 15, 2009 except for certain disclosure requirements effective for the first reporting period beginning after December 15, 2010. CenterPoint Energy's adoption of this new guidance did not have a material impact on its financial position, results of operations or cash flows. See Note 8 for the required disclosures. CenterPoint Energy expects that the adoption of certain disclosure requirements effective in 2011 will not have a material impact on its financial position, results of operations or cash flows.

Management believes the impact of other recently issued standards, which are not yet effective, will not have a material impact on CenterPoint Energy’s consolidated financial position, results of operations or cash flows upon adoption.

Property, Plant and Equipment and Intangibles

12 Months Ended

Dec. 31, 2010

Property, Plant and Equipment and Intangibles

(3) Property, Plant and Equipment

(a) Property, Plant and Equipment

Property, plant and equipment includes the following:

	Weighted Average
	Useful Lives	December 31,
	(Years)	2009		2010
		(in millions)
Electric Transmission & Distribution	27	$	7,325	$	7,586
Natural Gas Distribution	31		3,436		3,642
Competitive Natural Gas Sales and Services	26		69		71
Interstate Pipelines	58		2,524		2,594
Field Services	46		931		1,583
Other property	25		485		529
Total			14,770		16,005
Accumulated depreciation and amortization:
Electric Transmission & Distribution			2,737		2,805
Natural Gas Distribution			825		954
Competitive Natural Gas Sales and Services			13		16
Interstate Pipelines			223		265
Field Services			27		43
Other property			157		190
Total accumulated depreciation and amortization			3,982		4,273
Property, plant and equipment, net		$	10,788	$	11,732

(b) Depreciation and Amortization

The following table presents depreciation and amortization expense for 2008, 2009 and 2010 (in millions).

	2008		2009		2010
Depreciation expense	$	478	$	496	$	531
Amortization expense		230		247		333
Total depreciation and amortization expense	$	708	$	743	$	864

A reconciliation of the changes in the asset retirement obligation (ARO) liability is as follows (in millions):

	December 31,
	2009		2010
Beginning balance	$	63	$	82
Accretion expense		7		5
Revisions in estimates of cash flows		12		(3	)
Ending balance	$	82	$	84

The increase of $12 million in the ARO from the revision of estimate in 2009 is primarily attributable to the decrease in the credit-adjusted risk-free rate used to value the liability as of the end of the period. The decrease of $3 million in the ARO from the revision of the estimate in 2010 is primarily attributable to changes in the estimated lives of some of the assets underlying the liability. There were no material additions or settlements during the years ended December 31, 2009 and 2010.

Goodwill

12 Months Ended

Dec. 31, 2010

Goodwill

(4) Goodwill

Goodwill by reportable segment as of December 31, 2009 and 2010 is as follows (in millions):

Natural Gas Distribution	$	746
Interstate Pipelines		579
Competitive Natural Gas Sales and Services		335
Field Services		25
Other Operations		11
Total	$	1,696

CenterPoint Energy performs its goodwill impairment tests at least annually and evaluates goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. The impairment evaluation for goodwill is performed by using a two-step process. In the first step, the fair value of each reporting unit is compared with the carrying amount of the reporting unit, including goodwill. The estimated fair value of the reporting unit is generally determined on the basis of discounted cash flows. If the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, then a second step must be completed in order to determine the amount of the goodwill impairment that should be recorded. In the second step, the implied fair value of the reporting unit’s goodwill is determined by allocating the reporting unit’s fair value to all of its assets and liabilities other than goodwill (including any unrecognized intangible assets) in a manner similar to a purchase price allocation. The resulting implied fair value of the goodwill that results from the application of this second step is then compared to the carrying amount of the goodwill and an impairment charge is recorded for the difference.

CenterPoint Energy performed the test at July 1, 2010, its annual impairment testing date, and determined that no impairment charge for goodwill was required. Other intangibles were not material as of December 31, 2009 and 2010.

Regulatory Matters

12 Months Ended

Dec. 31, 2010

Regulatory Matters

(5) Regulatory Matters

(a) Regulatory Assets and Liabilities

The following is a list of regulatory assets/liabilities reflected on CenterPoint Energy’s Consolidated Balance Sheets as of December 31, 2009 and 2010:

	December 31,
	2009			2010
	(in millions)
Securitized regulatory assets	$	2,886		$	2,597
Unrecognized equity return		(232	)		(216	)
Unamortized loss on reacquired debt		67			61
Pension and postretirement-related regulatory asset (1)		813			838
Other long-term regulatory assets		143			166
Total regulatory assets (1)		3,677			3,446

Estimated removal costs		818			868
Other long-term regulatory liabilities		103			121
Total regulatory liabilities		921			989

Total regulatory assets and liabilities, net	$	2,756		$	2,457

(1)

CenterPoint Houston’s actuarially determined pension expense for 2009 and 2010 in excess of the 2007 base year amount is being deferred for rate making purposes and is being addressed in its current rate application pursuant to Texas law. CenterPoint Houston deferred as a regulatory asset $32 million and $26 million in pension and other postemployment expenses during the years ended December 31, 2009 and 2010, respectively. Deferred pension expense of $32 million and $58 million at December 31, 2009 and 2010, respectively, is not earning a return. Other regulatory assets that are not earning a return were not material at December 31, 2009 and 2010.

(b) Recovery of True-Up Balance

In March 2004, CenterPoint Houston filed its true-up application with the Texas Utility Commission, requesting recovery of $3.7 billion, excluding interest, as allowed under the Texas Electric Choice Plan (Texas electric restructuring law). In December 2004, the Texas Utility Commission issued its final order (True-Up Order) allowing CenterPoint Houston to recover a true-up balance of approximately $2.3 billion, which included interest through August 31, 2004, and provided for adjustment of the amount to be recovered to include interest on the balance until recovery, along with the principal portion of additional excess mitigation credits (EMCs) returned to customers after August 31, 2004 and certain other adjustments.

CenterPoint Houston and other parties filed appeals of the True-Up Order to a district court in Travis County, Texas. In August 2005, that court issued its judgment on the various appeals. In its judgment, the district court:

•

reversed the Texas Utility Commission’s ruling that had denied CenterPoint Houston recovery of a portion of the capacity auction true-up amounts;

•

reversed the Texas Utility Commission’s ruling that precluded CenterPoint Houston from recovering the interest component of the EMCs paid to retail electric providers (REPs); and

•

affirmed the True-Up Order in all other respects.

The district court’s decision would have had the effect of restoring approximately $650 million, plus interest, of the $1.7 billion the Texas Utility Commission had disallowed from CenterPoint Houston’s initial request.

CenterPoint Houston and other parties appealed the district court’s judgment to the Texas Third Court of Appeals, which issued its decision in December 2007. In its decision, the court of appeals:

•

reversed the district court’s judgment to the extent it restored the capacity auction true-up amounts;

•

reversed the district court’s judgment to the extent it upheld the Texas Utility Commission’s decision to allow CenterPoint Houston to recover EMCs paid to its former affiliate Reliant Energy, Inc. (Reliant Energy, Inc., formerly known as Reliant Resources, Inc., changed its name in 2009 to “RRI Energy, Inc.” in connection with the sale of its Texas retail electric business, and again in December 2010 to “GenOn Energy, Inc.” in connection with the merger of one of its wholly owned subsidiaries with Mirant Corporation. For convenience, we refer to this company as “RRI” in the context of discussing transactions relating to our formation, our pending true-up appeal and other historical matters, and as “GenOn” in the present and future context, unless stated otherwise.);

•

ordered that the tax normalization issue described below be remanded to the Texas Utility Commission as requested by the Texas Utility Commission; and

•

affirmed the district court’s judgment in all other respects.

In April 2008, the court of appeals denied all motions for rehearing and reissued substantially the same opinion as it had rendered in December 2007.

In June 2008, CenterPoint Houston petitioned the Texas Supreme Court for review of the court of appeals decision. In its petition, CenterPoint Houston seeks reversal of the parts of the court of appeals decision that (i) denied recovery of EMCs paid to RRI, (ii) denied recovery of the capacity auction true-up amounts allowed by the district court, (iii) affirmed the Texas Utility Commission’s rulings that denied recovery of approximately $378 million related to depreciation and (iv) affirmed the Texas Utility Commission’s refusal to permit CenterPoint Houston to utilize the partial stock valuation methodology for determining the market value of its former generation assets. Two other petitions for review were filed with the Texas Supreme Court by other parties to the appeal. In those petitions parties contend that (i) the Texas Utility Commission was without authority to fashion the methodology it used for valuing the former generation assets after it had determined that CenterPoint Houston could not use the partial stock valuation method, (ii) in fashioning the method it used for valuing the former generating assets, the Texas Utility Commission deprived parties of their due process rights and an opportunity to be heard, (iii) the net book value of the generating assets should have been adjusted downward due to the impact of a purchase option that had been granted to RRI, (iv) CenterPoint Houston should not have been permitted to recover construction work in progress balances without proving those amounts in the manner required by law and (v) the Texas Utility Commission was without authority to award interest on the capacity auction true-up award.

In June 2009, the Texas Supreme Court granted the petitions for review of the court of appeals decision. Oral argument before the court was held in October 2009. Although CenterPoint Energy and CenterPoint Houston believe that CenterPoint Houston’s true-up request is consistent with applicable statutes and regulations and, accordingly, that it is reasonably possible that it will be successful in its appeal to the Texas Supreme Court, CenterPoint Energy can provide no assurance as to the ultimate court rulings on the issues to be considered in the appeal or with respect to the ultimate decision by the Texas Utility Commission on the tax normalization issue described below.

To reflect the impact of the True-Up Order, in 2004 and 2005, CenterPoint Energy recorded a net after-tax extraordinary loss of $947 million. No amounts related to the district court’s judgment or the decision of the court of appeals have been recorded in CenterPoint Energy’s consolidated financial statements. However, if the court of appeals decision is not reversed or modified as a result of further review by the Texas Supreme Court, CenterPoint Energy anticipates that it would be required to record an additional loss to reflect the court of appeals decision. The amount of that loss would depend on several factors, including ultimate resolution of the tax normalization issue described below, but could range from $190 million to $440 million (pre-tax) plus interest subsequent to December 31, 2010.

In the True-Up Order, the Texas Utility Commission reduced CenterPoint Houston’s stranded cost recovery by approximately $146 million, which was included in the extraordinary loss discussed above, to reflect the present value of certain deferred tax benefits associated with its former electric generation assets. CenterPoint Energy believes that the Texas Utility Commission based its order on proposed regulations issued by the Internal Revenue Service (IRS) in March 2003 that would have allowed utilities owning assets that were deregulated before March 4, 2003 to make a retroactive election to pass the benefits of Accumulated Deferred Investment Tax Credits (ADITC) and Excess Deferred Federal Income Taxes (EDFIT) back to customers. However, the IRS subsequently withdrew those proposed normalization regulations and, in March 2008, adopted final regulations that would not permit utilities like CenterPoint Houston to pass the tax benefits back to customers without creating normalization violations. In addition, CenterPoint Energy received a Private Letter Ruling (PLR) from the IRS in August 2007, prior to adoption of the final regulations, that confirmed that the Texas Utility Commission’s order reducing CenterPoint Houston’s stranded cost recovery by $146 million for ADITC and EDFIT would cause normalization violations with respect to the ADITC and EDFIT.

If the Texas Utility Commission’s order relating to the ADITC reduction is not reversed or otherwise modified on remand so as to eliminate the normalization violation, the IRS could require CenterPoint Energy to pay an amount equal to CenterPoint Houston’s unamortized ADITC balance as of the date that the normalization violation is deemed to have occurred. In addition, the IRS could deny CenterPoint Houston the ability to elect accelerated tax depreciation benefits beginning in the taxable year that the normalization violation is deemed to have occurred. Such treatment, if required by the IRS, could have a material adverse impact on CenterPoint Energy’s results of operations, financial condition and cash flows in addition to any potential loss resulting from final resolution of the True-Up Order. Following the adoption by the IRS of the final regulations described above, the Texas Utility Commission requested, and the court of appeals ordered, that this issue be remanded to that commission for further consideration. No party has challenged that order by the court of appeals although the Texas Supreme Court has the authority to consider all aspects of the rulings above, not just those challenged specifically by the appellants. CenterPoint Energy and CenterPoint Houston will continue to pursue a favorable resolution of this issue through the appellate and administrative process. Although the Texas Utility Commission has requested that this issue be remanded to it by the courts and has not previously required a company subject to its jurisdiction to take action that would result in a normalization violation, no prediction can be made as to the ultimate action the Texas Utility Commission may take on this issue on remand.

The Texas electric restructuring law allowed the amounts awarded to CenterPoint Houston in the Texas Utility Commission’s True-Up Order to be recovered either through securitization or through implementation of a competition transition charge (CTC) or both. Pursuant to a financing order issued by the Texas Utility Commission in March 2005 and affirmed by a Travis County district court, in December 2005, a new special purpose subsidiary of CenterPoint Houston issued $1.85 billion in transition bonds with interest rates ranging from 4.84% to 5.30% and final maturity dates ranging from February 2011 to August 2020. Through issuance of the transition bonds, CenterPoint Houston recovered approximately $1.7 billion of the true-up balance determined in the True-Up Order plus interest through the date on which the bonds were issued.

In July 2005, CenterPoint Houston received an order from the Texas Utility Commission allowing it to implement a CTC designed to collect the remaining $596 million from the True-Up Order over 14 years plus interest at an annual rate of 11.075% (CTC Order). The CTC Order authorized CenterPoint Houston to impose a charge on REPs to recover the portion of the true-up balance not recovered through a financing order. The CTC Order also allowed CenterPoint Houston to collect approximately $24 million of rate case expenses over three years without a return through a separate tariff rider (Rider RCE). CenterPoint Houston implemented the CTC and Rider RCE effective September 13, 2005 and began recovering approximately $620 million. The return on the CTC portion of the true-up balance was included in CenterPoint Houston’s tariff-based revenues beginning September 13, 2005. Effective August 1, 2006, the interest rate on the unrecovered balance of the CTC was reduced from 11.075% to 8.06% pursuant to a revised rule adopted by the Texas Utility Commission in June 2006. Recovery of rate case expenses under Rider RCE was completed in September 2008.

Certain parties appealed the CTC Order to a district court in Travis County. In May 2006, the district court issued a judgment reversing the CTC Order in three respects. First, the court ruled that the Texas Utility Commission had improperly relied on provisions of its rule dealing with the interest rate applicable to CTC amounts. The district court reached that conclusion based on its belief that the Texas Supreme Court had previously invalidated that entire section of the rule. The 11.075% interest rate in question was applicable from the implementation of the CTC Order on September 13, 2005 until August 1, 2006, the effective date of the implementation of a new CTC in compliance with the revised rule discussed above. Second, the district court reversed the Texas Utility Commission’s ruling that allows CenterPoint Houston to recover through Rider RCE the costs (approximately $5 million) for a panel appointed by the Texas Utility Commission in connection with the valuation of electric generation assets. Finally, the district court accepted the contention of one party that the CTC should not be allocated to retail customers that have switched to new on-site generation. The Texas Utility Commission and CenterPoint Houston appealed the district court’s judgment to the Texas Third Court of Appeals, and in July 2008, the court of appeals reversed the district court’s judgment in all respects and affirmed the Texas Utility Commission’s order. Two parties appealed the court of appeals decision to the Texas Supreme Court and on October 22, 2010, the Texas Supreme Court issued an opinion affirming the judgment of the court of appeals. The Texas Supreme Court’s decision did not have an impact on CenterPoint Energy’s or CenterPoint Houston’s financial position, results of operations or cash flows.

During the 2007 legislative session, the Texas legislature amended statutes prescribing the types of true-up balances that can be securitized by utilities and authorized the issuance of transition bonds to recover the balance of the CTC. In June 2007, CenterPoint Houston filed a request with the Texas Utility Commission for a financing order that would allow the securitization of the remaining balance of the CTC, adjusted to refund certain unspent environmental retrofit costs and to recover the amount of the final fuel reconciliation settlement. CenterPoint Houston reached substantial agreement with other parties to this proceeding, and a financing order was approved by the Texas Utility Commission in September 2007. In February 2008, pursuant to the financing order, a new special purpose subsidiary of CenterPoint Houston issued approximately $488 million of transition bonds in two tranches with interest rates of 4.192% and 5.234% and final maturity dates of February 2020 and February 2023, respectively. Contemporaneously with the issuance of those bonds, the CTC was terminated and a transition charge was implemented. During the year ended December 31, 2008, CenterPoint Houston recognized approximately $5 million in operating income from the CTC.

As of December 31, 2010, CenterPoint Energy has not recognized an allowed equity return of $178 million on CenterPoint Houston’s true-up balance because such return will be recognized as it is recovered in rates. During the years ended December 31, 2008, 2009 and 2010, CenterPoint Houston recognized approximately $13 million, $13 million and $15 million, respectively, of the allowed equity return.

CenterPoint Houston’s electric delivery system suffered substantial damage as a result of Hurricane Ike, which struck the upper Texas coast in September 2008. CenterPoint Houston deferred the system restoration costs as management believed it was probable that such costs would be recovered through the regulatory process. As a result, system restoration costs did not affect CenterPoint Energy’s or CenterPoint Houston’s reported operating income for 2008 or 2009.

CenterPoint Houston filed with the Texas Utility Commission an application for review and approval for recovery of approximately $678 million, including approximately $608 million in system restoration costs identified as of the end of February 2009, plus $2 million in regulatory expenses, $13 million in certain debt issuance costs and $55 million in incurred and projected carrying costs calculated through August 2009. In July 2009, CenterPoint Houston reached a settlement agreement with the parties to the proceeding. Under that settlement agreement, CenterPoint Houston was entitled to recover a total of $663 million in costs relating to Hurricane Ike, along with carrying costs from September 1, 2009 until system restoration bonds were issued. The Texas Utility Commission issued an order in August 2009 approving the settlement agreement and authorizing recovery of $663 million, of which $643 million was attributable to distribution service and eligible for securitization and the remaining $20 million was attributable to transmission service and eligible for recovery through the existing mechanisms established to recover transmission costs.

In August 2009, the Texas Utility Commission issued a financing order allowing CenterPoint Houston to securitize $643 million in distribution service costs plus carrying charges from September 1, 2009 through the date the system restoration bonds were issued, as well as certain up-front qualified costs capped at approximately $6 million. In November 2009, CenterPoint Houston issued approximately $665 million of system restoration bonds through its CenterPoint Energy Restoration Bond Company, LLC subsidiary with interest rates of 1.833% to 4.243% and final maturity dates ranging from February 2016 to August 2023. The bonds will be repaid over time through a charge imposed on customers.

In accordance with the financing order, CenterPoint Houston also placed a separate customer credit in effect when the storm restoration bonds were issued. That credit (ADFIT Credit) is applied to customers’ bills while the bonds are outstanding to reflect the benefit of accumulated deferred federal income taxes (ADFIT) associated with the storm restoration costs (including a carrying charge of 11.075%). The beginning balance of the ADFIT related to storm restoration costs was approximately $207 million and will decline over the life of the system restoration bonds as taxes are paid on the system restoration tariffs. The ADFIT Credit reduced operating income in 2010 by approximately $23 million.

In accordance with the orders discussed above, as of December 31, 2010, CenterPoint Houston has recorded $604 million associated with distribution-related storm restoration costs as a securitized regulatory asset. During the year ended December 31, 2009, CenterPoint Houston recognized a return of borrowing costs of $23 million that is included in other income in CenterPoint Energy’s Statements of Consolidated Income.

As of December 31, 2010, CenterPoint Energy has not recognized an allowed equity return of $38 million on CenterPoint Houston’s allowed system restoration costs because such return will be recognized as it is recovered in rates. During the years ended December 31, 2009 and 2010, CenterPoint Houston recognized less than $1 million and $1 million, respectively, of the allowed equity return.

(d) Rate Proceedings

Texas - June 2010 Rate Proceeding. As required under the final order in its 2006 rate proceeding, in June 2010 CenterPoint Houston filed an application to change rates with the Texas Utility Commission and the cities in its service area, including cost data and other information supporting an annual increase of $106 million for delivery charges to the REPs that sell electricity to end-use customers in CenterPoint Houston’s service territory that was offset by a reduction of other utility revenues, resulting in a $92 million requested annual revenue increase. The rate filing package also supported an annual increase of $18 million for wholesale transmission customers.

In the filing, CenterPoint Houston also requested reconciliation of its AMS costs incurred as of March 31, 2010, and revision of the estimated costs to complete the AMS project in order to reflect $150 million in funds from the $200 million DOE stimulus grant awarded to CenterPoint Houston and updated cost information. The reconciliation plan also requested that the duration of the residential AMS surcharge be shortened by six years from the original 12-year plan.

In its rate filing, CenterPoint Houston sought a return on equity of 11.25% and proposed that rates be based on a capital structure of 50% equity and 50% long-term debt.

Hearings concerning the rate filing concluded in October 2010, and a Proposal for Decision was issued by the presiding Administrative Law Judges. On February 3, 2011 the Texas Utility Commission voted on the various contested issues presented by the rate filing. The Texas Utility Commission has not yet issued a formal order implementing its decisions, and the order, once issued, will be subject to revision based on motions for rehearing by the parties to the proceeding and could be appealed to the Texas courts.

Based on the public deliberations and votes by the Commissioners, CenterPoint Houston anticipates that the order of the Texas Utility Commission will provide for a base rate increase for CenterPoint Houston of approximately $14.7 million per year for delivery charges to the REPs and a decrease to charges to wholesale transmission customers of $12.3 million per year. Further, the order is expected to provide a mechanism to track amounts for uncertain tax positions and provide for ultimate recovery of those costs.

The order is expected to be based on an authorized return on equity for CenterPoint Houston of 10%, a cost of debt of 6.74%, a capital structure comprised of 55% debt and 45% common equity, and an overall rate of return of 8.21%. The decision also will implement CenterPoint Houston’s request to reconcile costs incurred for the AMS project and to shorten the period for collecting the AMS surcharge from twelve to six years for residential customers in order to reflect the funds received from the DOE.

Based on CenterPoint Houston’s understanding of the Texas Utility Commission’s votes, CenterPoint Houston anticipates that annual operating income will be reduced by approximately $30 million from 2010 levels as a result of the Texas Utility Commission’s decision. CenterPoint Houston expects that revised rates based on the Texas Utility Commission’s decision will be implemented during the second quarter of 2011.

Texas - Other. In May 2009, CenterPoint Houston filed an application at the Texas Utility Commission seeking approval of certain estimated 2010 energy efficiency program costs, an energy efficiency performance bonus for 2008 programs, and carrying costs totaling approximately $10 million. The application sought to begin recovery of these costs through a surcharge effective July 1, 2010. In October 2009, the Texas Utility Commission issued its order approving recovery of the 2010 energy efficiency program costs and a partial performance bonus of approximately $8 million, plus carrying costs, but disallowed a recovery of a performance bonus of $2 million on approximately $10 million in 2008 energy efficiency costs expended pursuant to the terms of a settlement agreement in a prior rate case. CenterPoint Houston began collecting the approved amounts in July 2010. CenterPoint Houston appealed the denial of the full 2008 performance bonus to the 98th district court in Travis County, Texas. In October 2010, the district court upheld the Texas Utility Commission’s decision. In February 2011, CenterPoint Houston appealed the district court’s judgment to the Texas 3rd Court of Appeals at Austin, Texas, where the case remains pending.

In April 2010, CenterPoint Houston filed an application with the Texas Utility Commission seeking approval of certain estimated 2011 energy efficiency programs, an energy efficiency performance bonus for 2009 programs, and recovery of revenue losses related to the implementation of the 2009 energy efficiency program totaling approximately $14.4 million. The application sought to begin recovery of these costs through a surcharge beginning in January 2011. In November 2010, the Texas Utility Commission issued its order approving recovery of the 2011 energy efficiency program costs and a partial performance bonus of approximately $11 million, but disallowed a recovery of a performance bonus of $2 million on the 2009 energy efficiency costs expended pursuant to the terms of the settlement agreement referenced above. The Texas Utility Commission further concluded that it does not have statutory authority to permit recovery of the approximately $1.4 million in lost revenue associated with 2009 energy efficiency programs. CenterPoint Houston began collecting the approved amounts in January 2011, but has appealed the denial of the full 2009 performance bonus and lost revenue to the 201st district court in Travis County, Texas, where the case remains pending.

In March 2008, the natural gas distribution business of CERC (Gas Operations) filed a request to change its rates with the Railroad Commission of Texas (Railroad Commission) and the 47 cities in its Texas Coast service territory, an area consisting of approximately 230,000 customers in cities and communities on the outskirts of Houston. In 2008, the Railroad Commission approved the implementation of rates increasing annual revenues by approximately $3.5 million. The approved rates were contested by a coalition of nine cities in an appeal to the 353rd district court in Travis County, Texas. In January 2010, that court reversed the Railroad Commission’s order in part and remanded the matter to the Railroad Commission. In its final judgment, the court ruled that the Railroad Commission lacked authority to impose the approved cost of service adjustment mechanism in both those nine cities and in those areas in which the Railroad Commission has original jurisdiction. The Railroad Commission and Gas Operations have appealed the court’s ruling on the cost of service adjustment mechanism to the 3rd Court of Appeals at Austin, Texas. Oral arguments were held in February 2011. CenterPoint Energy does not expect the outcome of this matter to have a material adverse impact on its financial condition, results of operations or cash flows. The cost of service adjustment was initially effective for three successive years ending in calendar year 2010, but would automatically renew for successive three-year periods unless Gas Operations or the regulatory authority having original jurisdiction gave written notice to discontinue the adjustment mechanism by February 1, 2011. Certain cities that agreed to the initial implementation notified Gas Operations by February 1, 2011 of their desire to discontinue the adjustment mechanism. Gas Operations will continue the cost of service adjustments for the remaining areas.

In July 2009, Gas Operations filed a request to change its rates with the Railroad Commission and the 29 cities in its Houston service territory, consisting of approximately 940,000 customers in and around Houston. The request sought to establish uniform rates, charges and terms and conditions of service for the cities and environs of the Houston service territory. As finally submitted to the Railroad Commission and the cities, the proposed new rates would have resulted in an overall increase in annual revenue of $20.4 million, excluding carrying costs of approximately $2 million on its gas inventory, and would be subject to an annual cost of service adjustment. In January 2010, Gas Operations withdrew its request for an annual cost of service adjustment mechanism due to the uncertainty caused by the court’s ruling in the above-mentioned Texas Coast appeal. In February 2010, the Railroad Commission issued its decision authorizing a revenue increase of $5.1 million annually, reflecting reduced depreciation rates as well as adjustments to pension and other employee benefits, accumulated deferred income taxes and other items. The Railroad Commission also approved a surcharge of $0.9 million per year to recover Hurricane Ike costs over three years. These rates went into effect in March 2010. Gas Operations and other parties are seeking judicial review of the Railroad Commission’s decision in the 261st District Court in Travis County, Texas.

In December 2010, Gas Operations filed a request to change its rates with the Railroad Commission and the 66 cities in its South Texas service territory, consisting of approximately 137,000 customers. The request seeks an increase in base revenues of approximately $6.5 million, based on an 11% return on equity and a capital structure of 56% equity and 44% debt. A decision from the Railroad Commission is anticipated in the summer of 2011.

Rulemaking Proceedings. In January 2010, the Texas Utility Commission published proposed amendments to its energy efficiency rule. During the statutory comment period, CenterPoint Houston urged the adoption of a lost revenue recovery mechanism as part of the rule amendments to keep whole the utilities participating in the required energy efficiency programs. In July 2010, the Texas Utility Commission adopted amendments to its energy efficiency program rules, but concluded it did not have the statutory authority to permit recovery of lost revenue associated with energy efficiency programs. CenterPoint Houston has appealed the rule to the Texas 3rd Court of Appeals at Austin, Texas on the basis it is invalid as amended because it does not permit lost revenue recovery.

In October 2010, amended rules of the Texas Utility Commission relating to the Transmission Cost Recovery Factor (TCRF) became effective. The amended rules permit a distribution service provider (DSP) such as CenterPoint Houston to defer for future recovery increases in transmission costs that are charged to the DSP by transmission service providers (TSPs) during the interim period before the DSP is authorized to request an adjustment to its TCRF. The TCRF permits a DSP to recover from REPs approved changes in transmission charges from TSPs, but the TCRF can be changed by the DSP only twice per year on application to the Texas Utility Commission. The revised rules permit DSPs to obtain full recovery of the increased transmission charges.

Minnesota. In November 2008, Gas Operations filed a request with the Minnesota Public Utilities Commission (MPUC) to increase its rates for utility distribution service by $59.8 million annually. In addition, Gas Operations sought an adjustment mechanism that would annually adjust rates to reflect changes in use per customer. In December 2008, the MPUC accepted the case and approved an interim rate increase of $51.2 million, which became effective on January 2, 2009, subject to refund. In January 2010, the MPUC issued its decision authorizing a revenue increase of $40.8 million per year, with an overall rate of return of 8.09% (10.24% return on equity). The MPUC also authorized Gas Operations to implement a pilot program for residential and small volume commercial customers that is intended to decouple gas revenues from customers’ natural gas usage. In July 2010, Gas Operations implemented the revised rates approved by the MPUC and in August 2010 completed the refund to customers of the difference between the amounts finally approved by the MPUC and interim amounts collected. In October 2010, the MPUC approved a request by Gas Operations to implement a rate adjustment to increase its conservation improvement plan (CIP) recovery rate from $9.7 million to $23.2 million annually. In addition, the MPUC approved a $1.4 million incentive based on Gas Operations’ 2009 CIP program.

(e) Renewal of Affiliate Pipeline Transportation and Storage Service Agreements

In April 2010, Gas Operations and CenterPoint Energy Gas Transmission Company, LLC (CEGT) began negotiations to renew the pipeline transportation and storage service agreements that were scheduled to expire on March 31, 2012 for Arkansas, Louisiana, Oklahoma and Texas. In May 2010, Gas Operations and CEGT reached agreement to renew the contracts for terms extending through March 31, 2021. All applicable regulatory approvals have been received.

(f) Regulatory Accounting

CenterPoint Energy has a 50% ownership interest in SESH, which owns and operates a 274-mile interstate natural gas pipeline. In 2009, SESH discontinued the use of guidance for accounting for regulated operations, which resulted in CenterPoint Energy recording its share of the effects of such write-offs of SESH’s regulatory assets through non-cash pre-tax charges for the year ended December 31, 2009 of $16 million. These non-cash charges are reflected in equity in earnings of unconsolidated affiliates in the Statements of Consolidated Income. The related tax benefits of $6 million are reflected in the Income Tax Expense line in the Statements of Consolidated Income.

Stock-Based Incentive Compensation Plans and Employee Benefit Plans

12 Months Ended

Dec. 31, 2010

Stock-Based Incentive Compensation Plans and Employee Benefit Plans

(6) Stock-Based Incentive Compensation Plans and Employee Benefit Plans

(a) Stock-Based Incentive Compensation Plans

CenterPoint Energy has long-term incentive plans (LTIPs) that provide for the issuance of stock-based incentives, including stock options, performance awards, restricted stock unit awards and restricted and unrestricted stock awards to officers and key employees. Approximately 12 million shares of CenterPoint Energy common stock are authorized under these plans for the issuance of new grants.

Equity awards are granted to employees without cost to the participants. The performance awards granted in 2008, 2009 and 2010 are distributed based upon the achievement of certain objectives over a three-year performance cycle. The stock awards granted in 2008, 2009 and 2010 are subject to the operational condition that total common dividends declared during the three-year vesting period must be at least $2.19, $2.28 and $2.34 per share, respectively. The stock awards generally vest at the end of a three-year period. Upon vesting, both the performance and stock awards are issued to the participants along with the value of dividend equivalents earned over the performance cycle or vesting period. CenterPoint Energy issues new shares in order to satisfy share-based payments related to LTIPs.

CenterPoint Energy recorded LTIPs compensation expense of $10 million, $15 million and $17 million for the years ended December 31, 2008, 2009 and 2010, respectively. This expense is included in Operation and Maintenance Expense in the Statements of Consolidated Income.

The total income tax benefit recognized related to LTIPs was $4 million, $6 million and $6 million in the years ended December 31, 2008, 2009 and 2010, respectively. No compensation cost related to LTIPs was capitalized as a part of inventory or fixed assets in 2008, 2009 or 2010. The actual tax benefit realized for tax deductions related to LTIPs totaled $5 million, $6 million and $5 million, for 2008, 2009 and 2010, respectively.

Compensation costs for the performance and stock awards granted under LTIPs are measured using fair value and expected achievement levels on the grant date. The fair value of awards granted to employees after April 2009 are based on the closing stock price of CenterPoint Energy’s common stock on the grant date. The fair value of awards granted prior to May 2009 were based on the average of the high and low stock price of CenterPoint Energy’s common stock on the grant date. The compensation expense is recorded on a straight-line basis over the vesting period. Forfeitures are estimated on the date of grant based on historical averages. For performance awards with operational goals, the expected achievement levels are revised as goal achievements are evaluated.

The following tables summarize CenterPoint Energy’s LTIPs activity for 2010:

Stock Options

	Outstanding Options Year Ended December 31, 2010
	Shares (Thousands)			Weighted-Average Exercise Price		Remaining Average Contractual Life (Years)	Aggregate Intrinsic Value (Millions)
Outstanding at December 31, 2009		4,513		$	17.95
Expired		(399	)		17.25
Cancelled		(207	)		31.48
Exercised		(830	)		10.05
Outstanding at December 31, 2010		3,077			19.27	1.3	$	12
Exercisable at December 31, 2010		3,077			19.27	1.3		12

Cash received from stock options exercised was $3 million, $4 million and $9 million for 2008, 2009 and 2010, respectively.

CenterPoint Energy has not issued stock options since 2004.

Performance Awards

	Outstanding and Non-Vested Shares Year Ended December 31, 2010
	Shares (Thousands)			Weighted-Average Grant Date Fair Value		Remaining Average Contractual Life (Years)		Aggregate Intrinsic Value (Millions)
Outstanding at December 31, 2009		2,583		$	14.62
Granted		1,130			14.21
Forfeited or cancelled		(350	)		17.24
Vested and released to participants		(295	)		18.09
Outstanding at December 31, 2010		3,068			13.84	1.1	$	37

The outstanding and non-vested shares displayed in the table above assumes that shares are issued at the maximum performance level. The aggregate intrinsic value reflects the impacts of current expectations of achievement and stock price.

Stock Awards

	Outstanding and Non-Vested Stock Shares Year Ended December 31, 2010
	Shares (Thousands)			Weighted-Average Grant Date Fair Value		Remaining Average Contractual Life (Years)		Aggregate Intrinsic Value (Millions)
Outstanding at December 31, 2009		951		$	14.36
Granted		440			14.26
Forfeited or cancelled		(25	)		13.38
Vested and released to participants		(270	)		16.65
Outstanding at December 31, 2010		1,096			13.78	1.2	$	17

The weighted-average grant-date fair values of awards granted were as follows for 2008, 2009 and 2010:

	Year Ended December 31,
	2008		2009		2010
Performance awards	$	15.40	$	12.42	$	14.21
Stock awards		15.09		12.30		14.26

Valuation Data

The total intrinsic value of awards received by participants was as follows for 2008, 2009 and 2010:

	Year Ended December 31,
	2008		2009		2010
	(in millions)
Stock options exercised	$	2	$	2	$	4
Performance awards		6		7		5
Stock awards		5		4		4

The total grant date fair value of performance and stock awards which vested during the years ended December 31, 2008, 2009 and 2010 was $8 million, $11 million and $10 million, respectively. As of December 31, 2010, there was $31 million of total unrecognized compensation cost related to non-vested performance and stock awards which is expected to be recognized over a weighted-average period of 1.7 years.

(b) Pension and Postretirement Benefits

CenterPoint Energy maintains a non-contributory qualified defined benefit pension plan covering substantially all employees, with benefits determined using a cash balance formula. Under the cash balance formula, participants accumulate a retirement benefit based upon 5% of eligible earnings, which increased from 4% effective January 1, 2009, and accrued interest. Participants are 100% vested in their benefit after completing three years of service. In addition to the non-contributory qualified defined benefit pension plan, CenterPoint Energy maintains unfunded non-qualified benefit restoration plans which allow participants to receive the benefits to which they would have been entitled under CenterPoint Energy’s non-contributory pension plan except for federally mandated limits on qualified plan benefits or on the level of compensation on which qualified plan benefits may be calculated.

CenterPoint Energy provides certain healthcare and life insurance benefits for retired employees on a contributory and non-contributory basis. Employees become eligible for these benefits if they have met certain age and service requirements at retirement, as defined in the plans. Under plan amendments, effective in early 1999, healthcare benefits for future retirees were changed to limit employer contributions for medical coverage.

Such benefit costs are accrued over the active service period of employees. The net unrecognized transition obligation is being amortized over approximately 20 years.

CenterPoint Energy’s net periodic cost includes the following components relating to pension, including the benefit restoration plan, and postretirement benefits:

	Year Ended December 31,
	2008						2009						2010
	Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits
	(in millions)
Service cost	$	31		$	1		$	25		$	1		$	31		$	1
Interest cost		101			27			113			28			102			25
Expected return on plan assets		(147	)		(12	)		(98	)		(9	)		(109	)		(10	)
Amortization of prior service cost (credit)		(8	)		3			3			3			3			3
Amortization of net loss		23			—			68			—			59			—
Amortization of transition obligation		—			7			—			7			—			7
Benefit enhancement		1			—			—			—			—			—
Net periodic cost	$	1			26			111			30			86			26

CenterPoint Energy used the following assumptions to determine net periodic cost relating to pension and postretirement benefits:

	December 31,
	2008						2009						2010
	Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits
Discount rate		6.40	%		6.40	%		6.90	%		6.90	%		5.70	%		5.70	%
Expected return on plan assets		8.50			7.60			8.00			7.05			8.00			7.05
Rate of increase in compensation levels		4.60			—			4.60			—			4.60			—

In determining net periodic benefits cost, CenterPoint Energy uses fair value, as of the beginning of the year, as its basis for determining expected return on plan assets.

The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in consolidated balance sheets and the key assumptions of CenterPoint Energy’s pension, including benefit restoration, and postretirement plans. The measurement dates for plan assets and obligations were December 31, 2009 and 2010.

	December 31,
	2009						2010
	Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits
	(in millions, except for actuarial assumptions)
Change in Benefit Obligation
Benefit obligation, beginning of year	$	1,710		$	426		$	1,866		$	450
Service cost		25			1			31			1
Interest cost		113			28			102			25
Participant contributions		—			6			—			7
Benefits paid		(111	)		(42	)		(115	)		(50	)
Actuarial gain		129			29			85			24
Medicare reimbursement		—			2			—			3
Benefit obligation, end of year		1,866			450			1,969			460
Change in Plan Assets
Fair value of plan assets, beginning of year		1,276			135			1,432			146
Employer contributions		20			28			8			29
Participant contributions		—			6			—			7
Benefits paid		(111	)		(42	)		(115	)		(50	)
Actual investment return		247			19			176			12
Fair value of plan assets, end of year		1,432			146			1,501			144
Funded status, end of year	$	(434	)	$	(304	)	$	(468	)	$	(316	)
Amounts Recognized in Balance Sheets
Current liabilities-other	$	(9	)	$	(9	)	$	(9	)	$	(9	)
Other liabilities-benefit obligations		(425	)		(295	)		(459	)		(307	)
Net liability, end of year	$	(434	)	$	(304	)	$	(468	)	$	(316	)
Actuarial Assumptions
Discount rate		5.70	%		5.70	%		5.25	%		5.20	%
Expected return on plan assets		8.00			7.05			8.00			7.05
Rate of increase in compensation levels		4.60			—			4.60			—
Healthcare cost trend rate assumed for the next year		—			7.50			—			8.50
Prescription drug cost trend rate assumed for the next year		—			8.00			—			8.50
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		—			5.50			—			5.50
Year that the healthcare rate reaches the ultimate trend rate		—			2014			—			2017
Year that the prescription drug rate reaches the ultimate trend rate		—			2015			—			2017

The accumulated benefit obligation for all defined benefit pension plans was $1,864 million and $1,954 million as of December 31, 2009 and 2010, respectively.

The expected rate of return assumption was developed by a weighted-average return analysis of the targeted asset allocation of CenterPoint Energy’s plans and the expected real return for each asset class, based on the long-term capital market assumptions, adjusted for investment fees and diversification effects, in addition to expected inflation.

The discount rate assumption was determined by matching the accrued cash flows of CenterPoint Energy’s plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to thirty years.

For measurement purposes, healthcare and prescription costs are assumed to increase 8.50% during 2011, after which this rate decreases until reaching the ultimate trend rate of 5.50% in 2017, except for the 2013 rate which is expected to increase to 9.00% in anticipation of the healthcare exchanges being introduced to the market in 2014.

Amounts recognized in accumulated other comprehensive loss consist of the following:

	December 31,
	2009				2010
	Pension Benefits		Postretirement Benefits		Pension Benefits		Postretirement Benefits
	(in millions)
Unrecognized actuarial loss	$	162	$	15	$	151	$	18
Unrecognized prior service cost		16		9		15		7
Unrecognized transition obligation		—		3		—		2
Net amount recognized in accumulated other comprehensive loss	$	178	$	27	$	166	$	27

The changes in plan assets and benefit obligations recognized in other comprehensive income during 2010 are as follows (in millions):

	Pension Benefits			Postretirement Benefits
Net loss (gain)	$	(24	)	$	3
Amortization of net loss		13			—
Prior service credit		(2	)		(4	)
Amortization of prior service credit		1			2
Transition obligation		—			(1	)
Total recognized in comprehensive income	$	(12	)	$	—

The total expense recognized in net periodic costs and other comprehensive income was $74 million and $26 million for pension and postretirement benefits, respectively, for the year ended December 31, 2010.

The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2011 are as follows (in millions):

	Pension Benefits		Postretirement Benefits
Unrecognized actuarial loss	$	12	$	—
Unrecognized prior service cost		1		2
Amounts in accumulated comprehensive income to be recognized in net periodic cost in 2011	$	13	$	2

The following table displays pension benefits related to CenterPoint Energy’s pension plans that have accumulated benefit obligations in excess of plan assets:

	December 31,
	2009				2010
	Pension Qualified		Pension Non-qualified		Pension Qualified		Pension Non-qualified
	(in millions)
Accumulated benefit obligation	$	1,770	$	94	$	1,860	$	94
Projected benefit obligation		1,772		94		1,875		94
Fair value of plan assets		1,432		—		1,501		—

Assumed healthcare cost trend rates have a significant effect on the reported amounts for CenterPoint Energy’s postretirement benefit plans. A 1% change in the assumed healthcare cost trend rate would have the following effects:

	1% Increase		1% Decrease
	(in millions)
Effect on the postretirement benefit obligation	$	18	$	16
Effect on total of service and interest cost		1		1

In managing the investments associated with the benefit plans, CenterPoint Energy’s objective is to preserve and enhance the value of plan assets while maintaining an acceptable level of volatility. These objectives are expected to be achieved through an investment strategy that manages liquidity requirements while maintaining a long-term horizon in making investment decisions and efficient and effective management of plan assets.

As part of the investment strategy discussed above, CenterPoint Energy has adopted and maintains the following weighted average allocation targets for its benefit plans:

	Pension Benefits	Postretirement Benefits
Domestic equity securities	25-35%	14-24%
Global equity securities	7-13%	—
International equity securities	17-23%	3-13%
Debt securities	30-40%	68-78%
Real estate	0-5%	—
Cash	0-2%	0-2%

The following tables set forth by level, within the fair value hierarchy, CenterPoint Energy’s pension plan assets at fair value as of December 31, 2009 and 2010:

	Fair Value Measurements at December 31, 2009 (in millions)
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	11		$	11		$	—	$	—
Common collective trust funds (1)		733			—			733		—
Corporate bonds:
Investment grade or above		193			—			192		1
High yield		2			—			2		—
Equity securities:
International companies		162			160			2		—
U.S. companies		96			96			—		—
Cash received as collateral from securities lending		114			114			—		—
U.S. government backed agencies bonds		55			55			—		—
U.S. treasuries		50			50			—		—
Mortgage backed securities		39			—			39		—
Asset backed securities		27			—			24		3
Municipal bonds		22			2			20		—
Mutual funds (2)		21			21			—		—
International government bonds		12			—			12		—
Real estate		9			—			—		9
Obligation to return cash received as collateral from securities lending		(114	)		(114	)		—		—
Total	$	1,432		$	395		$	1,024	$	13

(1)

30% of the amount invested in common collective trust funds is in fixed income securities, 31% is in U.S. equities and 39% is in international equities.

(2)

48% of the amount invested in mutual funds is in fixed income securities and 52% is in U.S. equities.

	Fair Value Measurements at December 31, 2010 (in millions)
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	3		$	3		$	—	$	—
Common collective trust funds (1)		890			—			890		—
Corporate bonds:
Investment grade or above		122			—			122		—
Equity securities:
International companies		133			133			—		—
U.S. companies		131			131			—		—
Cash received as collateral from securities lending		112			112			—		—
U.S. government backed agencies bonds		34			34			—		—
U.S. treasuries		62			62			—		—
Mortgage backed securities		8			—			8		—
Asset backed securities		10			—			10		—
Municipal bonds		28			—			28		—
Mutual funds (2)		55			55			—		—
International government bonds		17			—			17		—
Real estate		8			—			—		8
Obligation to return cash received as collateral from securities lending		(112	)		(112	)		—		—
Total	$	1,501		$	418		$	1,075	$	8

(1)

24% of the amount invested in common collective trust funds is in fixed income securities, 42% is in U.S. equities and 34% is in international equities.

(2)

74% of the amount invested in mutual funds is in fixed income securities and 26% is in U.S. equities.

The pension plan utilized both exchange traded and over-the-counter financial instruments such as futures, interest rate options and swaps that were marked to market daily with the gains/losses settled in the cash accounts. The pension plan did not include any holdings of CenterPoint Energy common stock as of December 31, 2009 or 2010.

The following tables present additional information about the changes in the fair value of the pension plan’s level 3 investments for the years ended December 31, 2009 and 2010:

	Level 3 Investments
	Year Ended December 31, 2009 (in millions)
	Corporate bonds		Asset backed securities		Real estate			Total
Balance, beginning of year	$	1	$	3	$	14		$	18
Unrealized losses relating to instruments still held at the reporting date		—		—		(5	)		(5	)
Balance, end of year	$	1	$	3	$	9		$	13

	Level 3 Investments
	Year Ended December 31, 2010 (in millions)
	Corporate bonds			Asset backed securities			Real estate			Total
Balance, beginning of year	$	1		$	3		$	9		$	13
Unrealized losses relating to instruments still held at the reporting date		—			—			(1	)		(1	)
Purchases, sales, issuances, and settlement (net)		—			(1	)		—			(1	)
Transfer out of Level 3		(1	)		(2	)		—			(3	)
Balance, end of year	$	—		$	—		$	8		$	8

The following tables present by level, within the fair value hierarchy, CenterPoint Energy’s postretirement plan assets at fair value as of December 31, 2009 and 2010, by asset category:

	Fair Value Measurements at December 31, 2009 (in millions)
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs Level 3)
Mutual funds (1)	$	146	$	146	$	—	$	—
Total	$	146	$	146	$	—	$	—

(1)

65% of the amount invested in mutual funds is in fixed income securities, 26% is in U.S. equities and 9% is in international equities.

	Fair Value Measurements at December 31, 2010 (in millions)
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs Level 3)
Mutual funds (1)	$	144	$	144	$	—	$	—
Total	$	144	$	144	$	—	$	—

(1)

73% of the amount invested in mutual funds is in fixed income securities, 19% is in U.S. equities and 8% is in international equities.

CenterPoint Energy contributed $8 million and $26 million to its non-qualified pension and postretirement benefits plans, respectively, in 2010. CenterPoint Energy expects to contribute approximately $35 million, $9 million and $18 million to its qualified pension, non-qualified pension and postretirement benefits plans, respectively, in 2011.

The following benefit payments are expected to be paid by the pension and postretirement benefit plans (in millions):

			Postretirement Benefit Plan
	Pension Benefits		Benefit Payments		Medicare Subsidy Receipts
2011	$	142	$	33	$	(4	)
2012		148		34		(5	)
2013		149		39		(5	)
2014		149		40		(6	)
2015		149		42		(6	)
2016-2020		762		225		(42	)

CenterPoint Energy has a tax-qualified employee savings plan that includes a cash or deferred arrangement under Section 401(k) of the Internal Revenue Code of 1986, as amended (the Code), and an employee stock ownership plan (ESOP) under Section 4975(e)(7) of the Code. Under the plan, participating employees may contribute a portion of their compensation, on a pre-tax or after-tax basis, generally up to a maximum of 50% of eligible compensation. The Company matches 100% of the first 6% of each employee’s compensation contributed. The matching contributions are fully vested at all times.

Participating employees may elect to invest all or a portion of their contributions to the plan in CenterPoint Energy common stock, to have dividends reinvested in additional shares or to receive dividend payments in cash on any investment in CenterPoint Energy common stock, and to transfer all or part of their investment in CenterPoint Energy common stock to other investment options offered by the plan.

The savings plan has significant holdings of CenterPoint Energy common stock. As of December 31, 2010, 21,012,609 shares of CenterPoint Energy’s common stock were held by the savings plan, which represented approximately 22% of its investments. Given the concentration of the investments in CenterPoint Energy’s common stock, the savings plan and its participants have market risk related to this investment.

CenterPoint Energy’s savings plan benefit expenses were $39 million, $31 million and $34 million in 2008, 2009 and 2010, respectively.

(d) Postemployment Benefits

CenterPoint Energy provides postemployment benefits for former or inactive employees, their beneficiaries and covered dependents, after employment but before retirement (primarily healthcare and life insurance benefits for participants in the long-term disability plan). The Company recorded postemployment benefit income of $1 million, $-0- and $1 million in 2008, 2009 and 2010, respectively.

Included in “Benefit Obligations” in the accompanying Consolidated Balance Sheets at December 31, 2009 and 2010 was $29 million and $25 million, respectively, relating to postemployment obligations.

(e) Other Non-Qualified Plans

CenterPoint Energy has non-qualified deferred compensation plans that provide benefits payable to directors, officers and certain key employees or their designated beneficiaries at specified future dates, upon termination, retirement or death. Benefit payments are made from the general assets of CenterPoint Energy. During 2008, 2009 and 2010, CenterPoint Energy recorded benefit expense relating to these plans of $4 million, $6 million and $5 million, respectively. Included in “Benefit Obligations” in the accompanying Consolidated Balance Sheets at December 31, 2009 and 2010 was $79 million and $78 million, respectively, relating to deferred compensation plans.

Effective January 1, 2008, CenterPoint Energy adopted new guidance on accounting for deferred compensation and postretirement benefit aspects of endorsement split-dollar life insurance arrangements and recorded a cumulative effect adjustment of $15 million to increase other non-current liabilities and accumulated deficit as of January 1, 2008. Included in Benefit Obligations in CenterPoint Energy’s Consolidated Balance Sheets at December 31, 2009 and 2010 was $19 million and $21 million, respectively, relating to split-dollar life insurance arrangements.

(f) Change in Control Agreements and Other Employee Matters

CenterPoint Energy has agreements with certain of its officers that generally provide, to the extent applicable, in the case of a change in control of CenterPoint Energy and termination of employment, for severance benefits of up to three times annual base salary plus bonus, and other benefits. These agreements are for a one-year term with automatic renewal unless action is taken by CenterPoint Energy’s board of directors prior to the renewal.

As of December 31, 2010, approximately 30% of CenterPoint Energy’s employees are subject to collective bargaining agreements. Collective bargaining agreements with two of CenterPoint Energy’s unions, the Gas Workers Union Local No. 340 and the International Brotherhood of Electrical Workers Local No. 949, that collectively represent approximately 7% of CenterPoint Energy’s employees are scheduled to expire in April and December 2011, respectively. CenterPoint Energy has a good relationship with these bargaining units and expects to negotiate new agreements in 2011.

Derivative Instruments

12 Months Ended

Dec. 31, 2010

Derivative Instruments

(7) Derivative Instruments

(a) Non-Trading Activities

Derivative Instruments. CenterPoint Energy enters into certain derivative instruments to manage physical commodity price risks and does not engage in proprietary or speculative commodity trading. These financial instruments do not qualify or are not designated as cash flow or fair value hedges.

During the year ended December 31, 2008, CenterPoint Energy recorded increased natural gas revenues from unrealized net gains of $101 million and increased natural gas expense from unrealized net losses of $88 million, a net unrealized gain of $13 million. During the year ended December 31, 2009, CenterPoint Energy recorded decreased natural gas revenues from unrealized net losses of $80 million and decreased natural gas expense from unrealized net gains of $57 million, a net unrealized loss of $23 million. During the year ended December 31, 2010, CenterPoint Energy recorded increased natural gas revenues from unrealized net gains of $18 million and increased natural gas expense from unrealized net losses of $14 million, a net unrealized gain of $4 million.

Weather Hedges. CenterPoint Energy has weather normalization or other rate mechanisms that mitigate the impact of weather on its gas operations in Arkansas, Louisiana, Oklahoma and a portion of Texas. The remaining Gas Operations jurisdictions do not have such mechanisms. As a result, fluctuations from normal weather may have a significant positive or negative effect on the results of the gas operations in the remaining jurisdictions and in CenterPoint Houston’s service territory.

In 2008, 2009 and 2010, CenterPoint Energy entered into heating-degree day swaps to mitigate the effect of fluctuations from normal weather on its financial position and cash flows for the respective winter heating seasons. The swaps were based on ten-year normal weather. During the years ended December 31, 2008, 2009 and 2010, CenterPoint Energy recognized losses of $17 million, $7 million and $6 million, respectively, related to these swaps. The losses were substantially offset by increased revenues due to colder than normal weather. Weather hedge losses are included in revenues in the Statements of Consolidated Income.

Hedging of Future Debt Issuances. CenterPoint Energy uses interest rate cash flow hedges in order to mitigate its exposure to variability in cash flows with respect to the future interest payments on designated borrowings. During the years ended December 31, 2008, 2009 and 2010 and as of December 31, 2009 and 2010, amounts related to CenterPoint Energy’s interest rate cash flow hedges were not material.

(b) Derivative Fair Values and Income Statement Impacts

The following tables present information about CenterPoint Energy’s derivative instruments and hedging activities. The first two tables provide a balance sheet overview of CenterPoint Energy’s Derivative Assets and Liabilities as of December 31, 2009 and 2010, while the last table provides a breakdown of the related income statement impacts for the years ending December 31, 2009 and 2010.

Fair Value of Derivative Instruments
	December 31, 2009
Total derivatives not designated as hedging instruments	Balance Sheet Location	Derivative Assets Fair Value (2) (3)		Derivative Liabilities Fair Value (2) (3)
		(in millions)
Natural gas contracts (1)	Current Assets	$	46	$	(7	)
Natural gas contracts (1)	Other Assets		16		(1	)
Natural gas contracts (1)	Current Liabilities		20		(123	)
Natural gas contracts (1)	Other Liabilities		1		(86	)
Indexed debt securities derivative	Current Liabilities		—		(201	)
Total		$	83	$	(418	)

(1)

Natural gas contracts are subject to master netting arrangements and are presented on a net basis in the Consolidated Balance Sheets. This netting causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Consolidated Balance Sheets.

(2)

The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 674 billion cubic feet (Bcf) or a net 152 Bcf long position. Of the net long position, basis swaps constitute 71 Bcf and volumes associated with price stabilization activities of the Natural Gas Distribution business segment comprise 51 Bcf.

(3)

The net of total non-trading derivative assets and liabilities is a $39 million liability as shown on CenterPoint Energy’s Consolidated Balance Sheets, and is comprised of the natural gas contracts derivative assets and liabilities separately shown above offset by collateral netting of $95 million.

Fair Value of Derivative Instruments
	December 31, 2010
Total derivatives not designated as hedging instruments	Balance Sheet Location	Derivative Assets Fair Value (2) (3)		Derivative Liabilities Fair Value (2) (3)
		(in millions)
Natural gas contracts (1)	Current Assets	$	55	$	(1	)
Natural gas contracts (1)	Other Assets		15		—
Natural gas contracts (1)	Current Liabilities		10		(143	)
Natural gas contracts (1)	Other Liabilities		—		(35	)
Indexed debt securities derivative	Current Liabilities		—		(232	)
Total		$	80	$	(411	)

(1)

(2)

The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 626 Bcf or a net 72 Bcf long position. Of the net long position, basis swaps constitute 63 Bcf and volumes associated with price stabilization activities of the Natural Gas Distribution business segment comprise 26 Bcf.

(3)

The net of total non-trading derivative assets and liabilities is a $15 million liability as shown on CenterPoint Energy’s Consolidated Balance Sheets, and is comprised of the natural gas contracts derivative assets and liabilities separately shown above offset by collateral netting of $84 million.

For CenterPoint Energy’s price stabilization activities of the Natural Gas Distribution business segment, the settled costs of derivatives are ultimately recovered through purchased gas adjustments. Accordingly, the net unrealized gains and losses associated with these contracts are recorded as net regulatory assets. Realized and unrealized gains and losses on other derivatives are recognized in the Statements of Consolidated Income as revenue for retail sales derivative contracts and as natural gas expense for financial natural gas derivatives and non-retail related physical natural gas derivatives. Unrealized gains and losses on indexed debt securities are recorded as Other Income (Expense) in the Statements of Consolidated Income.

Income Statement Impact of Derivative Activity
		Year Ended December 31,
Total derivatives not designated as hedging instruments	Income Statement Location	2009			2010
		(in millions)
Natural gas contracts	Gains (Losses) in Revenue	$	102		$	90
Natural gas contracts (1)	Gains (Losses) in Expense: Natural Gas		(255	)		(165	)
Indexed debt securities derivative	Gains (Losses) in Other Income (Expense)		(68	)		(31	)
Total		$	(221	)	$	(106	)

(1)	The Gains (Losses) in Expense: Natural Gas includes $(181) million and $(115) million of costs in 2009 and 2010, respectively, associated with price stabilization activities of the Natural Gas Distribution business segment that will be ultimately recovered through purchased gas adjustments.

CenterPoint Energy enters into financial derivative contracts containing material adverse change provisions. These provisions could require CenterPoint Energy to post additional collateral if the Standard & Poor’s Rating Services or Moody’s Investors Service, Inc. credit ratings of CenterPoint Energy, Inc. or its subsidiaries are downgraded. The total fair value of the derivative instruments that contain credit risk contingent features that are in a net liability position at December 31, 2009 and 2010 was $140 million and $107 million, respectively. The aggregate fair value of assets that are already posted as collateral was $65 million and $31 million, respectively, at December 31, 2009 and 2010. If all derivative contracts (in a net liability position) containing credit risk contingent features were triggered at December 31, 2009 and 2010, $75 million and $76 million, respectively, of additional assets would be required to be posted as collateral.

(d) Credit Quality of Counterparties

In addition to the risk associated with price movements, credit risk is also inherent in CenterPoint Energy’s non-trading derivative activities. Credit risk relates to the risk of loss resulting from non-performance of contractual obligations by a counterparty. The following table shows the composition of counterparties to the non-trading derivative assets of CenterPoint Energy as of December 31, 2009 and 2010 (in millions):

	December 31, 2009				December 31, 2010
	Investment Grade(1)		Total		Investment Grade(1)		Total
Energy marketers	$	6	$	6	$	5	$	8
Financial institutions		2		4		1		1
Retail end users (2)		1		44		—		60
Total	$	9	$	54	$	6	$	69

(1)

“Investment grade” is primarily determined using publicly available credit ratings and considering credit support (such as parent company guaranties) and collateral, which encompass cash and standby letters of credit. For unrated counterparties, CenterPoint Energy determines a synthetic credit rating by performing financial statement analysis and considering contractual rights and restrictions and collateral.

(2)

Retail end users represent customers who have contracted to fix the price of a portion of their physical gas requirements for future periods.

Fair Value Measurements

12 Months Ended

Dec. 31, 2010

Fair Value Measurements

(8) Fair Value Measurements

Assets and liabilities are recorded at fair value in the Consolidated Balance Sheets and are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in this guidance and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows:

Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are exchange-traded derivatives and equity securities.

Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value CenterPoint Energy’s Level 2 assets or liabilities.

Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Unobservable inputs reflect CenterPoint Energy’s judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. CenterPoint Energy develops these inputs based on the best information available, including CenterPoint Energy’s own data. A market approach is utilized to value CenterPoint Energy’s Level 3 assets or liabilities.

CenterPoint Energy determines the appropriate level for each financial asset and liability on a quarterly basis and recognizes any transfers at the end of the reporting period. For the year ended December 31, 2010, there were no significant transfers between levels.

The following tables present information about CenterPoint Energy’s assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2009 and 2010, and indicate the fair value hierarchy of the valuation techniques utilized by CenterPoint Energy to determine such fair value.

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments (1)			Balance as of December 31, 2009
	(in millions)
Assets
Corporate equities	$	301	$	—	$	—	$	—		$	301
Investments, including money market funds		41		—		—		—			41
Derivative assets		1		77		5		(29	)		54
Total assets	$	343	$	77	$	5	$	(29	)	$	396
Liabilities
Indexed debt securities derivative	$	—	$	201	$	—	$	—		$	201
Derivative liabilities		12		194		11		(124	)		93
Total liabilities	$	12	$	395	$	11	$	(124	)	$	294

(1)

Amounts represent the impact of legally enforceable master netting agreements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $95 million posted with the same counterparties.

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments (1)			Balance as of December 31, 2010
	(in millions)
Assets
Corporate equities	$	368	$	—	$	—	$	—		$	368
Investments, including money market funds		54		—		—		—			54
Derivative assets		—		73		7		(11	)		69
Total assets	$	422	$	73	$	7	$	(11	)	$	491
Liabilities
Indexed debt securities derivative	$	—	$	232	$	—	$	—		$	232
Derivative liabilities		8		167		4		(95	)		84
Total liabilities	$	8	$	399	$	4	$	(95	)	$	316

(1)

The following tables present additional information about assets or liabilities, including derivatives that are measured at fair value on a recurring basis for which CenterPoint Energy has utilized Level 3 inputs to determine fair value:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Derivative assets and liabilities, net
	Year Ended December 31,
	2008			2009			2010
	(in millions)
Beginning balance	$	(3	)	$	(58	)	$	(6	)
Total unrealized gains or (losses):
Included in earnings		(11	)		(1	)		4
Included in regulatory assets		(10	)		(16	)		(1	)
Purchases, sales and other settlements, net:
Included in earnings		6			3			(2	)
Included in regulatory assets		(41	)		66			8
Net transfers into Level 3		1			—			—
Ending balance	$	(58	)	$	(6	)	$	3
The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	7		$	1		$	4

Estimated Fair Value of Financial Instruments

The fair values of cash and cash equivalents, investments in debt and equity securities classified as "available-for-sale" and "trading" and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The fair values of non-trading derivative assets and liabilities and CenterPoint Energy’s 2.00% Zero-Premium Exchangeable Subordinated Notes due 2029 (ZENS) indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by the market price.

	December 31, 2009				December 31, 2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Financial liabilities:
Long-term debt	$	9,900	$	10,413	$	9,303	$	10,071

Indexed Debt Securities (ZENS) and Time Warner Securities

12 Months Ended

Dec. 31, 2010

Indexed Debt Securities (ZENS) and Time Warner Securities

(9) Indexed Debt Securities (ZENS) and Time Warner Securities

(a) Investment in Time Warner Securities

In 1995, CenterPoint Energy sold a cable television subsidiary to Time Warner, Inc. (TW) and received TW securities as partial consideration. A subsidiary of CenterPoint Energy now holds 7.2 million shares of TW common stock (TW Common), 1.8 million shares of Time Warner Cable Inc. (TWC) common stock (TWC Common) and 0.7 million shares of AOL, Inc. (AOL) common stock (AOL Common) (together with the TW Common and TWC Common, the TW Securities) which are classified as trading securities and are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. Unrealized gains and losses resulting from changes in the market value of the TW Securities are recorded in CenterPoint Energy’s Statements of Consolidated Income.

(b) ZENS

In September 1999, CenterPoint Energy issued ZENS having an original principal amount of $1.0 billion of which $840 million remain outstanding at December 31, 2010. Each ZENS note was originally exchangeable at the holder’s option at any time for an amount of cash equal to 95% of the market value of the reference shares of TW Common attributable to such note. The number and identity of the reference shares attributable to each ZENS note are adjusted for certain corporate events. As of December 31, 2010, the reference shares for each ZENS note consisted of 0.5 share of TW Common, 0.125505 share of TWC Common and 0.045455 share of AOL Common. CenterPoint Energy pays interest on the ZENS at an annual rate of 2% plus the amount of any quarterly cash dividends paid in respect of the reference shares attributable to the ZENS. The principal amount of ZENS is subject to being increased or decreased to the extent that the annual yield from interest and cash dividends on the reference shares is less than or more than 2.309%. The adjusted principal amount is defined in the ZENS instrument as “contingent principal.” At December 31, 2010, ZENS having an original principal amount of $840 million and a contingent principal amount of $805 million were outstanding and were exchangeable, at the option of the holders, for cash equal to 95% of the market value of reference shares deemed to be attributable to the ZENS. At December 31, 2010, the market value of such shares was approximately $367 million, which would provide an exchange amount of $415 for each $1,000 original principal amount of ZENS. At maturity of the ZENS in 2029, CenterPoint Energy will be obligated to pay in cash the higher of the contingent principal amount of the ZENS or an amount based on the then-current market value of the reference shares, which will include any additional publicly-traded securities distributed with respect to the current reference shares prior to maturity.

The ZENS obligation is bifurcated into a debt component and a derivative component (the holder’s option to receive the appreciated value of the reference shares at maturity). The bifurcated debt component accretes through interest charges at 17.4% annually up to the contingent principal amount of the ZENS in 2029. Such accretion will be reduced by annual cash interest payments, as described above. The derivative component is recorded at fair value and changes in the fair value of the derivative component are recorded in CenterPoint Energy’s Statements of Consolidated Income. Changes in the fair value of the TW Securities held by CenterPoint Energy are expected to substantially offset changes in the fair value of the derivative component of the ZENS.

The following table sets forth summarized financial information regarding CenterPoint Energy’s investment in TW Securities and each component of CenterPoint Energy’s ZENS obligation (in millions).

	TW Securities			Debt Component of ZENS			Derivative Component of ZENS
Balance at December 31, 2007	$	357		$	114		$	261
Accretion of debt component of ZENS		—			20			—
2% interest paid		—			(17	)		—
Gain on indexed debt securities		—			—			(128	)
Loss on TW Common		(139	)		—			—
Balance at December 31, 2008		218			117			133
Accretion of debt component of ZENS		—			21			—
2% interest paid		—			(17	)		—
Loss on indexed debt securities		—			—			68
Gain on TW Securities		82			—			—
Balance at December 31, 2009		300			121			201
Accretion of debt component of ZENS		—			22			—
2% interest paid		—			(17	)		—
Loss on indexed debt securities		—			—			31
Gain on TW Securities		67			—			—
Balance at December 31, 2010	$	367		$	126		$	232

Equity	12 Months Ended
Equity	Dec. 31, 2010
Notes To Financial Statements [Abstract]
Capital Stock	(10) Equity (a) Capital Stock CenterPoint Energy has 1,020,000,000 authorized shares of capital stock, comprised of 1,000,000,000 shares of $0.01 par value common stock and 20,000,000 shares of $0.01 par value cumulative preferred stock. During the year ended December 31, 2010, CenterPoint Energy received net proceeds of approximately $315 million from the issuance of 25.3 million common shares in an underwritten public offering, proceeds of approximately $79 million from the sale of approximately 5.4 million common shares to CenterPoint Energy’s defined contribution plan and proceeds of approximately $15 million from the sale of approximately 1.0 million common shares to participants in CenterPoint Energy’s enhanced dividend reinvestment plan. In January 2011, CenterPoint Energy suspended the issuance of common shares to its defined contribution plan and its enhanced dividend reinvestment plan. Common shares for the two plans are now being purchased on the open market. (b) Shareholder Rights Plan CenterPoint Energy has a Shareholder Rights Plan that states that each share of its common stock includes one associated preference stock purchase right (Right) which entitles the registered holder to purchase from CenterPoint Energy a unit consisting of one-thousandth of a share of Series A Preference Stock. The Rights, which expire on December 11, 2011, are exercisable upon some events involving the acquisition of 20% or more of CenterPoint Energy’s outstanding common stock. Upon the occurrence of such an event, each Right entitles the holder to receive common stock with a current market price equal to two times the exercise price of the Right. At any time prior to becoming exercisable, CenterPoint Energy may repurchase the Rights at a price of $0.005 per Right. There are 700,000 shares of Series A Preference Stock reserved for issuance upon exercise of the Rights.

Short Term Borrowings and Long Term Debt

12 Months Ended

Dec. 31, 2010

Short-term Borrowings and Long-term Debt

(11) Short-term Borrowings and Long-term Debt

	December 31, 2009					December 31, 2010
	Long-Term			Current(1)		Long-Term			Current(1)
	(in millions)
Short-term borrowings:
Inventory financing	$	—		$	55	$	—		$	53
Total short-term borrowings		—			55		—			53
Long-term debt:
CenterPoint Energy:
ZENS(2)		—			121		—			126
Senior notes 5.95% to 6.85% due 2015 to 2018		750			200		750			—
Pollution control bonds 4.00% due 2015(3)		151			—		151			—
Pollution control bonds 4.70% to 5.95% due 2011 to 2030(4)		581			290		562			19
Other		—			7		—			—
CenterPoint Houston:
First mortgage bonds 9.15% due 2021		102			—		102			—
General mortgage bonds 5.60% to 7.00% due 2013 to 2033		1,762			—		1,762			—
Pollution control bonds 3.625% to 5.60% due 2012 to 2027(5)		229			—		229			—
System restoration bonds 1.833% to 4.243% due 2011 to 2022		645			20		601			43
Transition bonds 4.192% to 5.63% due 2011 to 2020		2,160			221		1,921			240
CERC Corp.:
Convertible subordinated debentures 6.00% due 2012		—			44		—			—
Senior notes 5.95% to 7.875% due 2013 to 2037 (6)		2,747			—		2,747			—
Commercial paper (7)		—			—		183			—
Other		1			—		1			—
Unamortized discount and premium		(9	)		—		(8	)		—
Total long-term debt		9,119			903		9,001			428
Total debt	$	9,119		$	958	$	9,001		$	481

(1)

Includes amounts due or exchangeable within one year of the date noted.

(2)

CenterPoint Energy’s ZENS obligation is bifurcated into a debt component and an embedded derivative component. For additional information regarding ZENS, see Note 9(b). As ZENS are exchangeable for cash at any time at the option of the holders, these notes are classified as a current portion of long-term debt.

(3)

These series of debt are secured by first mortgage bonds of CenterPoint Houston.

(4)

$527 million and $237 million of these series of debt is secured by general mortgage bonds of CenterPoint Houston at December 31, 2009 and 2010, respectively.

(5)

These series of debt are secured by general mortgage bonds of CenterPoint Houston.

(6)

$550 million senior notes due February 2011 are not reflected in the current portion of long-term debt as of December 31, 2010 because the notes were refinanced in January 2011.

(7)

Classified as long-term debt because the termination date of the facility that backstops the commercial paper is more than one year from the date noted.

(a) Short-term Borrowings

Receivables Facility. On September 15, 2010, CERC amended its receivables facility to extend the termination date to September 14, 2011. Availability under CERC’s receivables facility ranges from $160 million to $375 million, reflecting seasonal changes in receivables balances. As of December 31, 2009 and 2010, the facility size was $150 million and $160 million, respectively. As of both December 31, 2009 and 2010, there were no advances under the receivables facility.

Inventory Financing. In October 2009, Gas Operations entered into asset management agreements associated with its utility distribution service in Arkansas, north Louisiana and Oklahoma that extend through March 31, 2012. Pursuant to the provisions of the agreements, Gas Operations sells natural gas and agrees to repurchase an equivalent amount of natural gas during the winter heating seasons at the same cost, plus a financing charge. These transactions are accounted for as a financing and they had an associated principal obligation of $55 million and $53 million as of December 31, 2009 and 2010, respectively.

(b) Long-term Debt

Pollution Control Bonds. In January 2010, CenterPoint Energy purchased $290 million principal amount of pollution control bonds issued on its behalf at 101% of their principal amount plus accrued interest pursuant to the mandatory tender provisions of the bonds. Prior to the purchase, the pollution control bonds had a fixed rate of interest of 5.125%.

Convertible Subordinated Debentures. In January 2010, CERC Corp. redeemed $45 million of its outstanding 6% convertible subordinated debentures due 2012 at 100% of the principal amount plus accrued and unpaid interest to the redemption date.

CERC Corp. Senior Notes. In January 2011, CERC Corp. issued $250 million aggregate principal amount of senior notes due 2021 with an interest rate of 4.50% and $300 million aggregate principal amount of senior notes due 2041 with an interest rate of 5.85%. The proceeds from the issuance of the notes were used for the repayment of $550 million of CERC Corp.’s 7.75% senior notes at their maturity in February 2011. Accordingly, the $550 million senior notes due in February 2011 are reflected as long-term debt as of December 31, 2010.

CERC Corp. Exchange Offer. Also in January 2011, CERC Corp. issued an additional $343 million aggregate principal amount of 4.50% senior notes due 2021 and provided cash consideration of $114 million in exchange for $397 million aggregate principal amount of its 7.875% senior notes due 2013. The premium of $58 million paid on exchanged notes has been deferred and will be amortized to interest expense over the life of the 4.50% senior notes due 2021.

Revolving Credit Facilities. As of both December 31, 2009 and 2010, there were no outstanding borrowings under CenterPoint Energy’s, CenterPoint Houston’s or CERC Corp.’s long-term revolving credit facilities.

As of December 31, 2009 and 2010, CenterPoint Energy had approximately $25 million and $20 million, respectively, of outstanding letters of credit under its $1.2 billion credit facility. As of both December 31, 2009 and 2010, CenterPoint Houston had approximately $4 million of outstanding letters of credit under its $289 million credit facility. There was no commercial paper outstanding that would have been backstopped by CenterPoint Energy’s $1.2 billion credit facility as of December 31, 2009 and 2010. As of December 31, 2009 and 2010, CERC Corp. had commercial paper outstanding of $-0- and $183 million, respectively, which was backstopped by its credit facility. CenterPoint Energy, CenterPoint Houston and CERC Corp. were in compliance with all debt covenants as of December 31, 2010.

CenterPoint Energy’s $1.2 billion credit facility has a first drawn cost of the London Interbank Offered Rate (LIBOR) plus 55 basis points based on CenterPoint Energy’s current credit ratings. The facility contains a debt (excluding transition and system restoration bonds) to earnings before interest, taxes, depreciation and amortization (EBITDA) covenant (as those terms are defined in the facility). In February 2010, CenterPoint Energy amended its credit facility to modify the covenant to allow for a temporary increase of the permitted ratio from 5 times to 5.5 times if CenterPoint Houston experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that CenterPoint Houston has incurred system restoration costs reasonably likely to exceed $100 million in a calendar year, all or part of which CenterPoint Houston intends to seek to recover through securitization financing. Such temporary increase in the financial ratio covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification.

CenterPoint Houston’s $289 million credit facility contains a debt (excluding transition and system restoration bonds) to total capitalization covenant, limiting debt to 65% of its total capitalization. The facility’s first drawn cost is LIBOR plus 45 basis points based on CenterPoint Houston’s current credit ratings.

CERC Corp.’s $915 million credit facility’s first drawn cost is LIBOR plus 45 basis points based on CERC Corp.’s current credit ratings. The facility contains a debt to total capitalization covenant, limiting debt to 65% of its total capitalization.

Under CenterPoint Energy’s $1.2 billion credit facility, CenterPoint Houston’s $289 million credit facility and CERC Corp.’s $915 million credit facility, an additional utilization fee of 5 basis points applies to borrowings any time more than 50% of the facility is utilized. The spread to LIBOR and the utilization fee fluctuate based on the borrower’s credit rating.

Maturities. CenterPoint Energy’s maturities of long-term debt, capital leases and sinking fund requirements, excluding the ZENS obligation, are $302 million in 2011, $536 million in 2012, $1.1 billion in 2013, $1.2 billion in 2014 and $669 million in 2015. Maturities include transition and system restoration bond principal repayments on scheduled payment dates aggregating $283 million in 2011, $307 million in 2012, $330 million in 2013, $235 million in 2014 and $249 million in 2015. Maturities in 2011 exclude $550 million senior notes and maturities in 2013 exclude $397 million of 7.875% senior notes, each refinanced as discussed above.

Liens. As of December 31, 2010, CenterPoint Houston’s assets were subject to liens securing approximately $253 million of first mortgage bonds. Sinking or improvement fund and replacement fund requirements on the first mortgage bonds may be satisfied by certification of property additions. Sinking fund and replacement fund requirements for 2008, 2009 and 2010 have been satisfied by certification of property additions. The replacement fund requirement to be satisfied in 2011 is approximately $180 million, and the sinking fund requirement to be satisfied in 2011 is approximately $3 million. CenterPoint Energy expects CenterPoint Houston to meet these 2011 obligations by certification of property additions. As of December 31, 2010, CenterPoint Houston’s assets were also subject to liens securing approximately $2.5 billion of general mortgage bonds which are junior to the liens of the first mortgage bonds.

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes

(12) Income Taxes

The components of CenterPoint Energy’s income tax expense were as follows:

	Year Ended December 31,
	2008			2009			2010
	(in millions)
Current income tax expense (benefit):
Federal	$	(221	)	$	(103	)	$	40
State		11			10			24
Total current expense (benefit)		(210	)		(93	)		64
Deferred income tax expense (benefit):
Federal		437			251			220
State		50			18			(21	)
Total deferred expense		487			269			199
Total income tax expense	$	277		$	176		$	263

A reconciliation of the expected federal income tax expense using the federal statutory income tax rate to the actual income tax expense and resulting effective income tax rate is as follows:

	Year Ended December 31,
	2008			2009			2010
	(in millions)
Income before income taxes	$	723		$	548		$	705
Federal statutory income tax rate		35	%		35	%		35	%
Expected federal income tax expense		253			192			247
Increase (decrease) in tax expense resulting from:
State income tax expense, net of federal income tax		40			18			2
Amortization of investment tax credit		(7	)		(7	)		(7	)
Tax law change in deductibility of retiree health care costs		—			—			20
Increase (decrease) in settled and uncertain income tax positions		8			(5	)		14
Other, net		(17	)		(22	)		(13	)
Total		24			(16	)		16
Total income tax expense	$	277		$	176		$	263
Effective tax rate		38.4	%		32.1	%		37.3	%

CenterPoint Energy recorded a non-cash, $21 million increase to income tax expense in 2010 as a result of a change in tax law upon the enactment in March 2010 of the Patient Protection and Affordable Care Act and the related Health Care and Education Reconciliation Act of 2010. The change in tax law, which becomes effective for tax years beginning after December 31, 2012, eliminates the tax deductibility of the portion of retiree health care costs which are reimbursed by Medicare Part D subsidies. Based upon the actuarially determined net present value of lost future retiree health care deductions related to the subsidies, CenterPoint Energy reduced its deferred tax asset by approximately $32 million in March 2010. The portion of the reduction that CenterPoint Energy believes will be recovered through the regulatory process, or approximately $11 million, was recorded as an adjustment to regulatory assets. The remaining $21 million of the reduction in CenterPoint Energy’s deferred tax asset was recorded as a charge to income tax expense in the first quarter of 2010.

In December 2010, certain subsidiaries of CenterPoint Energy were restructured in order to achieve a more tax-efficient reporting structure. As a result of the restructuring, CenterPoint Energy recorded a net reduction in income tax expense of approximately $24 million related to the remeasurement of accumulated deferred income taxes. The net reduction in income tax expense is comprised of a decrease in state income tax expense, net of federal income tax, totaling approximately $29 million and an increase in income tax expense of approximately $5 million related to uncertain income tax positions.

As a result of its settlement with the IRS for tax years 2004 and 2005, CenterPoint Energy recorded an income tax benefit of approximately $11 million in 2009 related to a reduction in the liability for uncertain tax positions of approximately $41 million. The state income tax expense of $18 million for 2009 includes a benefit of approximately $12 million, net of federal income tax, related to adjustments in prior years’ state estimates.

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows:

	December 31,
	2009			2010
	(in millions)
Deferred tax assets:
Current:
Allowance for doubtful accounts	$	10		$	11
Deferred gas costs		7			32
Other		—			21
Total current deferred tax assets		17			64
Non-current:
Loss and credit carryforwards		42			49
Employee benefits		366			346
Other		51			48
Total non-current deferred tax assets before valuation allowance		459			443
Valuation allowance		(5	)		(3	)
Total non-current deferred tax assets, net of valuation allowance		454			440
Total deferred tax assets, net of valuation allowance		471			504
Deferred tax liabilities:
Current:
Unrealized gain on indexed debt securities	$	366		$	391
Unrealized gain on TW securities		57			80
Total current deferred tax liabilities		423			471
Non-current:
Depreciation		1,887			2,086
Regulatory assets, net		1,298			1,256
Other		45			32
Total non-current deferred tax liabilities		3,230			3,374
Total deferred tax liabilities		3,653			3,845
Accumulated deferred income taxes, net	$	3,182		$	3,341

Tax Attribute Carryforwards and Valuation Allowance. At December 31, 2010, CenterPoint Energy has approximately $312 million of state net operating loss carryforwards which expire in various years between 2011 and 2030. A valuation allowance has been established for approximately $4 million of the state net operating loss carryforwards that may not be realized. CenterPoint Energy has approximately $244 million of state capital loss carryforwards which expire in 2017 for which a valuation allowance has been established.

Uncertain Income Tax Positions. The following table reconciles the beginning and ending balance of CenterPoint Energy’s unrecognized tax benefits:

	December 31,
	2008			2009			2010
	(in millions)
Balance, beginning of year	$	82		$	117		$	187
Tax Positions related to prior years:
Additions		20			56			9
Reductions		(2	)		(25	)		(4	)
Tax Positions related to current year:
Additions		17			56			60
Settlements		—			(17	)		—
Balance, end of year	$	117		$	187		$	252

The net increase in the total amount of unrecognized tax benefits during 2010 is primarily related to the tax normalization issue described in Note 5(b) to our consolidated financial statements. This uncertain income tax position is a temporary difference and, therefore, any increase or decrease in the balance of unrecognized tax benefits related thereto would not affect the effective tax rate. It is reasonably possible that the total amount of unrecognized tax benefits could decrease by as much as $224 million or increase by as much as $15 million over the next 12 months primarily as a result of the tax normalization issue, a temporary difference, and the anticipated resolution of CenterPoint Energy’s administrative appeal associated with an IRS examination described below.

CenterPoint Energy has approximately $14 million, $10 million and $17 million of unrecognized tax benefits that, if recognized, would reduce the effective income tax rate for 2008, 2009 and 2010, respectively. CenterPoint Energy recognizes interest and penalties as a component of income tax expense. CenterPoint Energy recognized approximately $6 million of income tax expense, $7 million of income tax benefit and $8 million of income tax expense related to interest on uncertain income tax positions during 2008, 2009 and 2010, respectively. CenterPoint Energy had approximately $3 million and $12 million of interest on uncertain income tax positions accrued at December 31, 2009 and 2010, respectively.

Tax Audits and Settlements. CenterPoint Energy’s consolidated federal income tax returns have been audited and settled through the 2005 tax year. As further described in the following paragraph, CenterPoint Energy has an administrative appeal pending before the IRS’s Appeals Division related to tax years 2006 through 2007. In January 2011, the IRS commenced its examination of CenterPoint Energy’s 2008 and 2009 consolidated federal income tax returns.

In July 2010, the IRS issued a report outlining proposed adjustments with respect to its examination of CenterPoint Energy’s 2006 and 2007 federal income tax returns. The most significant adjustment proposed by the IRS relates to the disallowance of CenterPoint Energy’s casualty loss deduction totaling $603 million associated with the damage caused by Hurricane Ike. Pursuant to an election made by CenterPoint Energy, the casualty loss deduction was taken in the taxable year preceding the taxable year in which the hurricane occurred. CenterPoint Energy has filed an administrative appeal with the IRS’s Appeals Division and intends to vigorously defend its reporting of the casualty loss. CenterPoint Energy has considered the effects of the proposed disallowance of the casualty loss deduction by the IRS in its accrual for uncertain income tax positions as of December 31, 2010. Additionally, the casualty loss deduction is a temporary difference and, therefore, any increase or decrease in the balance of unrecognized tax benefits related thereto would not affect the effective tax rate.

As of December 31, 2010, CenterPoint Energy’s taxes receivable includes an estimated liability of approximately $31 million associated with an increase in income taxes plus applicable interest related to CenterPoint Energy’s 1998 federal income tax return. The estimated liability is attributable to a proposed reduction by the IRS in RRI’s net operating loss in a post-distribution period that was carried back to the 1998 tax year, a tax year during which CenterPoint and RRI joined in the filing of a consolidated federal income tax return. Pursuant to an agreement between RRI and CenterPoint Energy, RRI agreed to indemnify CenterPoint Energy against any increase in tax and applicable IRS interest related to a reduction in net operating loss deductions in a pre-distribution period carried back from a post-distribution period. The indemnification receivable totaling approximately $27 million, net of tax, has been reflected in CenterPoint Energy’s accounts receivable.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2010

Commitments and Contingencies

(13) Commitments and Contingencies

(a) Natural Gas Supply Commitments

Natural gas supply commitments include natural gas contracts related to CenterPoint Energy’s Natural Gas Distribution and Competitive Natural Gas Sales and Services business segments, which have various quantity requirements and durations, that are not classified as non-trading derivative assets and liabilities in CenterPoint Energy’s Consolidated Balance Sheets as of December 31, 2009 and 2010 as these contracts meet the exception to be classified as "normal purchases contracts" or do not meet the definition of a derivative. Natural gas supply commitments also include natural gas transportation contracts that do not meet the definition of a derivative. As of December 31, 2010, minimum payment obligations for natural gas supply commitments are approximately $502 million in 2011, $496 million in 2012, $437 million in 2013, $312 million in 2014, $193 million in 2015 and $453 million after 2015.

(b) Asset Management Agreements

Gas Operations has entered into asset management agreements associated with its utility distribution service in Arkansas, Louisiana, Mississippi, Oklahoma and Texas. Generally, these asset management agreements are contracts between Gas Operations and an asset manager that are intended to transfer the working capital obligation and maximize the utilization of the assets. In these agreements, Gas Operations agreed to release transportation and storage capacity to other parties to manage gas storage, supply and delivery arrangements for Gas Operations and to use the released capacity for other purposes when it is not needed for Gas Operations. Gas Operations is compensated by the asset manager through payments made over the life of the agreements based in part on the results of the asset optimization. Under the provisions of these asset management agreements, Gas Operations has an obligation to purchase its winter storage requirements from the asset manager. The agreements have varying terms, the longest of which expires in 2016.

The following table sets forth information concerning CenterPoint Energy’s obligations under non-cancelable long-term operating leases at December 31, 2010, which primarily consist of rental agreements for building space, data processing equipment and vehicles (in millions):

2011	$	15
2012		12
2013		7
2014		6
2015		4
2016 and beyond		15
Total	$	59

Total lease expense for all operating leases was $46 million, $37 million and $77 million during 2008, 2009 and 2010, respectively.

(d) Other Commitments

In December 2008, CenterPoint Energy entered into an agreement to purchase software licenses, support and maintenance. As of December 31, 2010, payment obligations under this agreement are $6 million in 2011, $6 million in 2012, and $6 million in 2013.

(e) Long-Term Gas Gathering and Treating Agreements.

Magnolia Gathering System. In September 2009, CenterPoint Energy Field Services, LLC (CEFS) entered into long-term agreements with an indirect wholly-owned subsidiary of Encana Corporation (Encana) and an indirect wholly-owned subsidiary of Royal Dutch Shell plc (Shell) to provide gathering and treating services for their natural gas production from certain Haynesville Shale and Bossier Shale formations in Louisiana. Pursuant to these agreements, CEFS acquired jointly-owned gathering facilities (the Magnolia Gathering System) from Encana and Shell in northwest Louisiana. Each of the agreements includes acreage dedication and volume commitments for which CEFS has exclusive rights to gather Shell’s and Encana’s natural gas production.

During the year ended December 31, 2010, CEFS substantially completed the construction and initial expansion of the Magnolia Gathering System in order to permit the system to gather and treat up to 700 million cubic feet (MMcf) per day of natural gas, with only well connects remaining. As of December 31, 2010, CEFS had spent approximately $310 million on the original project scope, including the purchase of the original facilities and is in the second year of the 10-year 700 MMcf per day volume commitment made by Shell and Encana.

Pursuant to an expansion election made by Encana and Shell in March 2010, CEFS expanded the Magnolia Gathering System to increase its gathering and treating capacity by an additional 200 MMcf per day, increasing the aggregate capacity of the system to 900 MMcf per day. As of December 31, 2010, CEFS had spent approximately $47 million on the expansion. The expansion was completed and placed into service in February 2011 at a total cost of approximately $52 million. The 200 MMcf per day incremental volume commitment made by Shell and Encana began contemporaneously with the completion of the expansion.

Under the long-term agreements, Encana or Shell may elect to require CEFS to expand the capacity of the Magnolia Gathering System by up to an additional 800 MMcf per day, bringing the total system capacity to 1.7 Bcf per day. CEFS estimates that the cost to expand the capacity of the Magnolia Gathering System by an additional 800 MMcf per day would be as much as $240 million. Encana and Shell would provide incremental volume commitments in connection with an election to expand the system’s capacity.

Olympia Gathering System. In April 2010, CEFS entered into additional long-term agreements with Encana and Shell to provide gathering and treating services for their natural gas production from certain Haynesville Shale and Bossier Shale formations in Texas and Louisiana. Pursuant to these agreements, CEFS acquired jointly-owned gathering facilities (the Olympia Gathering System) from Encana and Shell in northwest Louisiana.

Under the terms of the agreements, CEFS is expanding the Olympia Gathering System in order to permit the system to gather and treat up to 600 MMcf per day of natural gas. As of December 31, 2010, CEFS had spent approximately $340 million on the 600 MMcf per day project, including the purchase of the original facilities, and expects to incur up to an additional $85 million to complete this expansion. CEFS expects the full 600 MMcf per day of capacity to be in service in the first quarter of 2011. CEFS is in the first year of the 10-year 600 MMcf per day volume commitment made by Shell and Encana.

Under the long-term agreements, Encana and Shell may elect to require CEFS to expand the capacity of the Olympia Gathering System by up to an additional 520 MMcf per day, bringing the total system capacity to 1.1 Bcf per day. CEFS estimates that the cost to expand the capacity of the Olympia Gathering System by an additional 520 MMcf per day would be as much as $200 million. Encana and Shell would provide incremental volume commitments in connection with an election to expand the system’s capacity.

(f) Legal, Environmental and Other Regulatory Matters

Gas Market Manipulation Cases. CenterPoint Energy, CenterPoint Houston or their predecessor, Reliant Energy, Incorporated (Reliant Energy), and certain of their former subsidiaries are named as defendants in certain lawsuits described below. Under a master separation agreement between CenterPoint Energy and a former subsidiary, RRI, CenterPoint Energy and its subsidiaries are entitled to be indemnified by RRI and its successors for any losses, including attorneys’ fees and other costs, arising out of these lawsuits. In May 2009, RRI sold its Texas retail business to NRG Retail, a subsidiary of NRG Energy, Inc. and changed its name to RRI Energy, Inc. In December 2010, Mirant Corporation merged with and became a wholly owned subsidiary of RRI Energy, Inc., and RRI Energy, Inc. changed its name to GenOn Energy, Inc. (GenOn). Neither the sale of the retail business nor the merger with Mirant Corporation alters RRI’s (now GenOn’s) contractual obligations to indemnify CenterPoint Energy and its subsidiaries, including CenterPoint Houston, for certain liabilities, including their indemnification obligations regarding the gas market manipulation litigation, nor does it affect the terms of existing guaranty arrangements for certain GenOn gas transportation contracts discussed below.

A large number of lawsuits were filed against numerous gas market participants in a number of federal and western state courts in connection with the operation of the natural gas markets in 2000-2002. CenterPoint Energy’s former affiliate, RRI, was a participant in gas trading in the California and Western markets. These lawsuits, many of which have been filed as class actions, allege violations of state and federal antitrust laws. Plaintiffs in these lawsuits are seeking a variety of forms of relief, including, among others, recovery of compensatory damages (in some cases in excess of $1 billion), a trebling of compensatory damages, full consideration damages and attorneys’ fees. CenterPoint Energy and/or Reliant Energy were named in approximately 30 of these lawsuits, which were instituted between 2003 and 2009. CenterPoint Energy and its affiliates have been released or dismissed from all but two of such cases. CenterPoint Energy Services, Inc. (CES), a subsidiary of CERC Corp., is a defendant in a case now pending in federal court in Nevada alleging a conspiracy to inflate Wisconsin natural gas prices in 2000-2002. Additionally, CenterPoint Energy was a defendant in a lawsuit filed in state court in Nevada that was dismissed in 2007, but in March 2010 the plaintiffs appealed the dismissal to the Nevada Supreme Court. CenterPoint Energy believes that neither it nor CES is a proper defendant in these remaining cases and will continue to pursue dismissal from those cases. CenterPoint Energy does not expect the ultimate outcome of these remaining matters to have a material impact on its financial condition, results of operations or cash flows.

Natural Gas Measurement Lawsuits. CERC Corp. and certain of its subsidiaries are defendants in two mismeasurement lawsuits brought against approximately 245 pipeline companies and their affiliates pending in state court in Stevens County, Kansas. In one case (originally filed in May 1999 and amended four times), the plaintiffs purport to represent a class of royalty owners who allege that the defendants have engaged in systematic mismeasurement of the volume of natural gas for more than 25 years. The plaintiffs amended their petition in this suit in July 2003 in response to an order from the judge denying certification of the plaintiffs’ alleged class. In the amendment, the plaintiffs dismissed their claims against certain defendants (including two CERC Corp. subsidiaries), limited the scope of the class of plaintiffs they purport to represent and eliminated previously asserted claims based on mismeasurement of the British thermal unit (Btu) content of the gas. The same plaintiffs then filed a second lawsuit, again as representatives of a putative class of royalty owners in which they assert their claims that the defendants have engaged in systematic mismeasurement of the Btu content of natural gas for more than 25 years. In both lawsuits, the plaintiffs seek compensatory damages, along with statutory penalties, treble damages, interest, costs and fees. In September 2009, the district court in Stevens County, Kansas, denied plaintiffs’ request for class certification of their case and, in March 2010, denied the plaintiffs’ request for reconsideration of that order. The time for seeking further review of the district court’s decision has now passed.

CERC believes that there has been no systematic mismeasurement of gas and that these lawsuits are without merit. CERC and CenterPoint Energy do not expect the ultimate outcome of the lawsuits to have a material impact on the financial condition, results of operations or cash flows of either CenterPoint Energy or CERC.

Environmental Matters

Manufactured Gas Plant Sites. CERC and its predecessors operated manufactured gas plants (MGPs) in the past. In Minnesota, CERC has completed remediation on two sites, other than ongoing monitoring and water treatment. There are five remaining sites in CERC’s Minnesota service territory. CERC believes that it has no liability with respect to two of these sites.

At December 31, 2010, CERC had accrued $14 million for remediation of these Minnesota sites and the estimated range of possible remediation costs for these sites was $4 million to $35 million based on remediation continuing for 30 to 50 years. The cost estimates are based on studies of a site or industry average costs for remediation of sites of similar size. The actual remediation costs will be dependent upon the number of sites to be remediated, the participation of other potentially responsible parties (PRPs), if any, and the remediation methods used. CERC has utilized an environmental expense tracker mechanism in its rates in Minnesota to recover estimated costs in excess of insurance recovery. In January 2010, as part of its Minnesota rate case decision, the MPUC eliminated the environmental expense tracker mechanism and ordered amounts previously collected from ratepayers and related carrying costs refunded to customers in 2010. Such refund was completed in August 2010. The MPUC provided for the inclusion in rates of approximately $285,000 annually to fund normal on-going remediation costs. CERC was not required to refund to customers the amount collected from insurance companies, $5.2 million at December 31, 2010, to be used to mitigate future environmental costs. The MPUC further gave assurance that any reasonable and prudent environmental clean-up costs CERC incurs in the future will be rate-recoverable under normal regulatory principles and procedures. This provision had no impact on earnings.

In addition to the Minnesota sites, the United States Environmental Protection Agency and other regulators have investigated MGP sites that were owned or operated by CERC or may have been owned by one of its former affiliates. CERC has been named as a defendant in a lawsuit filed in the United States District Court, District of Maine, under which contribution is sought by private parties for the cost to remediate former MGP sites based on the previous ownership of such sites by former affiliates of CERC or its divisions. CERC has also been identified as a PRP by the State of Maine for a site that is a subject of the lawsuit. In June 2006, the federal district court in Maine ruled that the current owner of the site is responsible for site remediation but that an additional evidentiary hearing would be required to determine if other potentially responsible parties, including CERC, would have to contribute to that remediation. In September 2009, the federal district court granted CERC’s motion for summary judgment in the proceeding. Although it is likely that the plaintiff will pursue an appeal from that dismissal, further action will not be taken until the district court disposes of claims against other defendants in the case. CERC believes it is not liable as a former owner or operator of the site under the Comprehensive Environmental, Response, Compensation and Liability Act of 1980, as amended, and applicable state statutes, and is vigorously contesting the suit and its designation as a PRP. CERC and CenterPoint Energy do not expect the ultimate outcome to have a material adverse impact on the financial condition, results of operations or cash flows of either CenterPoint Energy or CERC.

Asbestos. Some facilities owned by CenterPoint Energy contain or have contained asbestos insulation and other asbestos-containing materials. CenterPoint Energy or its subsidiaries have been named, along with numerous others, as a defendant in lawsuits filed by a number of individuals who claim injury due to exposure to asbestos. Some of the claimants have worked at locations owned by CenterPoint Energy, but most existing claims relate to facilities previously owned by CenterPoint Energy’s subsidiaries. CenterPoint Energy anticipates that additional claims like those received may be asserted in the future. In 2004, CenterPoint Energy sold its generating business, to which most of these claims relate, to Texas Genco LLC, which is now known as NRG Texas LP. Under the terms of the arrangements regarding separation of the generating business from CenterPoint Energy and its sale to NRG Texas LP, ultimate financial responsibility for uninsured losses from claims relating to the generating business has been assumed by NRG Texas LP, but CenterPoint Energy has agreed to continue to defend such claims to the extent they are covered by insurance maintained by CenterPoint Energy, subject to reimbursement of the costs of such defense from NRG Texas LP. Although their ultimate outcome cannot be predicted at this time, CenterPoint Energy intends to continue vigorously contesting claims that it does not consider to have merit and does not expect, based on its experience to date, these matters, either individually or in the aggregate, to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows.

Groundwater Contamination Litigation. Predecessor entities of CERC, along with several other entities, are defendants in litigation, St. Michel Plantation, LLC, et al, v. White, et al., pending in civil district court in Orleans Parish, Louisiana. In the lawsuit, the plaintiffs allege that their property in Terrebonne Parish, Louisiana suffered salt water contamination as a result of oil and gas drilling activities conducted by the defendants. Although a predecessor of CERC held an interest in two oil and gas leases on a portion of the property at issue, neither it nor any other CERC entities drilled or conducted other oil and gas operations on those leases. In January 2009, CERC and the plaintiffs reached agreement on the terms of a settlement that, if ultimately approved by the Louisiana Department of Natural Resources, is expected to resolve this litigation. CenterPoint Energy and CERC do not expect the outcome of this litigation to have a material adverse impact on the financial condition, results of operations or cash flows of either CenterPoint Energy or CERC.

Other Environmental. From time to time CenterPoint Energy has received notices from regulatory authorities or others regarding its status as a PRP in connection with sites found to require remediation due to the presence of environmental contaminants. In addition, CenterPoint Energy has been named from time to time as a defendant in litigation related to such sites. Although the ultimate outcome of such matters cannot be predicted at this time, CenterPoint Energy does not expect, based on its experience to date, these matters, either individually or in the aggregate, to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows.

Other Proceedings

CenterPoint Energy is involved in other legal, environmental, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies regarding matters arising in the ordinary course of business. Some of these proceedings involve substantial amounts. CenterPoint Energy regularly analyzes current information and, as necessary, provides accruals for probable liabilities on the eventual disposition of these matters. CenterPoint Energy does not expect the disposition of these matters to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows.

(g) Guaranties

Prior to the distribution of CenterPoint Energy’s ownership in RRI to its shareholders, CERC had guaranteed certain contractual obligations of what became RRI’s trading subsidiary. When the companies separated, RRI agreed to secure CERC against obligations under the guaranties RRI had been unable to extinguish by the time of separation. Pursuant to such agreement, as amended in December 2007, RRI (now GenOn) agreed to provide to CERC cash or letters of credit as security against CERC’s obligations under its remaining guaranties for demand charges under certain gas transportation agreements if and to the extent changes in market conditions expose CERC to a risk of loss on those guaranties based on an annual calculation, with any required collateral to be posted each December. The undiscounted maximum potential payout of the demand charges under these transportation contracts, which will be in effect until 2018, was approximately $112 million as of December 31, 2010. Market conditions in the fourth quarter of 2010 required posting of security under the agreement, and GenOn posted approximately $7 million in collateral in December 2010. If GenOn should fail to perform the contractual obligations, CERC could have to honor its guarantee and, in such event, collateral provided as security may be insufficient to satisfy CERC’s obligations.

Earnings Per Share

12 Months Ended

Dec. 31, 2010

Earnings Per Share

(14) Earnings Per Share

The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per share calculations:

	For the Year Ended December 31,
	2008		2009		2010
	(in millions, except per share and share amounts)
Basic earnings per share calculation:
Net income	$	446	$	372	$	442

Weighted average shares outstanding		336,387,000		365,229,000		409,721,000

Basic earnings per share	$	1.32	$	1.02	$	1.08

Diluted earnings per share calculation:
Net income	$	446	$	372	$	442

Weighted average shares outstanding		336,387,000		365,229,000		409,721,000
Plus: Incremental shares from assumed conversions:
Stock options(1)		760,000		451,000		470,000
Restricted stock		1,772,000		2,001,000		2,585,000
3.75% convertible senior notes		4,636,000		—		—
Weighted average shares assuming dilution		343,555,000		367,681,000		412,776,000

Diluted earnings per share	$	1.30	$	1.01	$	1.07

(1)

Options to purchase 2,617,772, 2,372,132 and 1,458,598 shares were outstanding for the years ended December 31, 2008, 2009 and 2010, respectively, but were not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of the common shares for the respective years.

Substantially all of the 3.75% contingently convertible senior notes provided for settlement of the principal portion in cash rather than stock. The portion of the conversion value of such notes that was required to be settled in cash rather than stock is excluded from the computation of diluted earnings per share. CenterPoint Energy included the conversion spread in the calculation of diluted earnings per share when the average market price of CenterPoint Energy’s common stock in the respective reporting period exceeded the conversion price. In April 2008, CenterPoint Energy called its 3.75% convertible senior notes for redemption on May 30, 2008. Substantially all of CenterPoint Energy’s 3.75% convertible senior notes were submitted for conversion on or prior to the May 30, 2008 redemption date.

Unaudited Quarterly Information

12 Months Ended

Dec. 31, 2010

Unaudited Quarterly Information

(15) Unaudited Quarterly Information

Summarized quarterly financial data is as follows:

	Year Ended December 31, 2009
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	(in millions, except per share amounts)
Revenues	$	2,766	$	1,640	$	1,576	$	2,299
Operating income		285		253		287		299
Net income		67		86		114		105

Basic earnings per share(1)	$	0.19	$	0.24	$	0.31	$	0.27

Diluted earnings per share(1)	$	0.19	$	0.24	$	0.31	$	0.27

	Year Ended December 31, 2010
	First Quarter (2)		Second Quarter		Third Quarter		Fourth Quarter (3)
	(in millions, except per share amounts)
Revenues	$	3,023	$	1,756	$	1,908	$	2,098
Operating income		357		263		327		302
Net income		114		81		123		124

Basic earnings per share(1)	$	0.29	$	0.20	$	0.29	$	0.29

Diluted earnings per share(1)	$	0.29	$	0.20	$	0.29	$	0.29

(1)

Quarterly earnings per common share are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal annual earnings per common share.

(2)

During the first quarter of 2010, CenterPoint Energy recorded a $21 million charge to income tax expense as a result of a change in tax law upon the enactment in March 2010 of the Patient Protection and Affordable Care Act and the related Health Care and Education Reconciliation Act of 2010.

(3)

During the fourth quarter of 2010, CenterPoint Energy recorded a $21 million gain on the sale of non-strategic gathering assets by its Field Services business segment. CenterPoint Energy also recorded a $24 million decrease in income tax expense related to the effects of re-measuring accumulated deferred income taxes associated with the restructuring of certain subsidiaries.

Reportable Business Segments

12 Months Ended

Dec. 31, 2010

Reportable Business Segments

(16) Reportable Business Segments

CenterPoint Energy’s determination of reportable business segments considers the strategic operating units under which CenterPoint Energy manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. The accounting policies of the business segments are the same as those described in the summary of significant accounting policies except that some executive benefit costs have not been allocated to business segments. CenterPoint Energy uses operating income as the measure of profit or loss for its business segments.

CenterPoint Energy’s reportable business segments include the following: Electric Transmission & Distribution, Natural Gas Distribution, Competitive Natural Gas Sales and Services, Interstate Pipelines, Field Services and Other Operations. The electric transmission and distribution function (CenterPoint Houston) is reported in the Electric Transmission & Distribution business segment. Natural Gas Distribution consists of intrastate natural gas sales to, and natural gas transportation and distribution for, residential, commercial, industrial and institutional customers. Competitive Natural Gas Sales and Services represents CenterPoint Energy’s non-rate regulated gas sales and services operations, which consist of the following operational functions: wholesale, retail and intrastate pipelines. The Interstate Pipelines business segment includes the interstate natural gas pipeline operations. The Field Services business segment includes the non-rate regulated natural gas gathering, processing and treating operations. Other Operations consists primarily of other corporate operations which support all of CenterPoint Energy’s business operations.

Long-lived assets include net property, plant and equipment, goodwill and other intangibles and equity investments in unconsolidated subsidiaries. Intersegment sales are eliminated in consolidation.

Financial data for business segments and products and services are as follows (in millions):

	Revenues from External Customers			Intersegment Revenues			Depreciation and Amortization		Operating Income		Total Assets			Expenditures for Long-Lived Assets
As of and for the year ended December 31, 2008:
Electric Transmission & Distribution	$	1,916	(1)	$	—		$	460	$	545	$	8,880		$	481	(5)
Natural Gas Distribution		4,217			9			157		215		4,961			214
Competitive Natural Gas Sales and Services		4,488			40			3		62		1,315			8
Interstate Pipelines(2)		477			173			46		293		3,578			189
Field Services(3)		213			39			12		147		826			122
Other		11			—			30		11		2,185	(4)		39
Reconciling Eliminations		—			(261	)		—		—		(2,069	)		—
Consolidated	$	11,322		$	—		$	708	$	1,273	$	19,676		$	1,053
As of and for the year ended December 31, 2009:
Electric Transmission & Distribution	$	2,013	(1)	$	—		$	480	$	545	$	9,755		$	428	(5)
Natural Gas Distribution		3,374			10			161		204		4,535			165
Competitive Natural Gas Sales and Services		2,215			15			4		21		1,176			2
Interstate Pipelines(2)		456			142			48		256		3,484			176
Field Services(3)		212			29			15		94		1,045			348
Other		11			—			35		4		2,261	(4)		29
Reconciling Eliminations		—			(196	)		—		—		(2,483	)		—
Consolidated	$	8,281		$	—		$	743	$	1,124	$	19,773		$	1,148
As of and for the year ended December 31, 2010:
Electric Transmission & Distribution	$	2,205	(1)	$	—		$	582	$	567	$	9,817		$	463
Natural Gas Distribution		3,199			14			166		231		4,575			202
Competitive Natural Gas Sales and Services		2,617			34			4		16		1,190			2
Interstate Pipelines(2)		464			137			52		270		3,672			102
Field Services(3)		289			49			25		151		1,803			668
Other		11			—			35		14		2,184	(4)		25
Reconciling Eliminations		—			(234	)		—		—		(3,130	)		—
Consolidated	$	8,785		$	—		$	864	$	1,249	$	20,111		$	1,462

(1)

Sales to subsidiaries of NRG Retail LLC, the successor to RRI’s Texas retail business, in 2008, 2009 and 2010 represented approximately $635 million, $634 million and $583 million, respectively, of CenterPoint Houston’s transmission and distribution revenues. Sales to subsidiaries of TXU Energy Retail Company LLC in 2008, 2009 and 2010 represented approximately $151 million, $182 million and $185 million, respectively, of CenterPoint Houston’s transmission and distribution revenues.

(2)

Interstate Pipelines recorded equity income of $36 million, $7 million, and $19 million (including $33 million related to pre-operating allowance for funds used during construction during 2008) in the years ended December 31, 2008, 2009 and 2010, respectively, from its 50% interest in SESH, a jointly-owned pipeline. These amounts are included in Equity in earnings of unconsolidated affiliates under the Other Income (Expense) caption. Interstate Pipelines’ investment in SESH was $307 million, $422 million and $413 million as of December 31, 2008, 2009 and 2010 and is included in Investment in unconsolidated affiliates.

(3)

Field Services recorded equity income of $15 million, $8 million and $10 million for the years ended December 31, 2008, 2009 and 2010, respectively, from its 50% interest in a jointly-owned gas processing plant. These amounts are included in Equity in earnings of unconsolidated affiliates under the Other Income (Expense) caption. Field Services’ investment in the jointly-owned gas processing plant was $38 million, $40 million and $55 million as of December 31, 2008, 2009 and 2010, respectively, and is included in Investment in unconsolidated affiliates.

(4)

Included in total assets of Other Operations as of December 31, 2008, 2009 and 2010, are pension and other postemployment related regulatory assets of $800 million, $731 million and $704 million, respectively.

(5)

Included in expenditures for long-lived assets of Electric Transmission & Distribution is $145 million and $26 million for 2008 and 2009, respectively, related to Hurricane Ike.

	Year Ended December 31,
Revenues by Products and Services:	2008		2009		2010
	(in millions)

Electric delivery sales	$	1,916	$	2,013	$	2,205
Retail gas sales		6,216		4,540		4,412
Wholesale gas sales		2,295		902		1,250
Gas transport		756		691		785
Energy products and services		139		135		133
Total	$	11,322	$	8,281	$	8,785

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2010
Notes To Financial Statements [Abstract]
Subsequent Events	(17) Subsequent Events On January 20, 2011, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.1975 per share of common stock payable on March 10, 2011, to shareholders of record as of the close of business on February 16, 2011.

Schedule I: Financial Information of Centerpoint Energy, Inc. (Parent Company)

12 Months Ended

Dec. 31, 2010

Schedule I: Financial Information of Centerpoint Energy, Inc. (Parent Company)

CENTERPOINT ENERGY, INC.

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF

CENTERPOINT ENERGY, INC. (PARENT COMPANY)

STATEMENTS OF INCOME

	For the Year Ended December 31,
	2008			2009			2010
	(in millions)
Expenses:
Operation and Maintenance Expenses	$	(12	)	$	(17	)	$	(12	)
Taxes Other than Income		1			—			—
Total		(11	)		(17	)		(12	)
Other Income (Expense):
Interest Income from Subsidiaries		12			8			8
Other Expense		(5	)		(5	)		(8	)
Gain (Loss) on Indexed Debt Securities		128			(68	)		(31	)
Interest Expense to Subsidiaries		(38	)		(25	)		(26	)
Interest Expense		(162	)		(149	)		(132	)
Total		(65	)		(239	)		(189	)
Loss Before Income Taxes		(76	)		(256	)		(201	)
Income Tax Benefit		32			113			79
Loss Before Equity in Subsidiaries		(44	)		(143	)		(122	)
Equity Income of Subsidiaries		490			515			564
Net Income	$	446		$	372		$	442

See CenterPoint Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements in Part II, Item 8

CENTERPOINT ENERGY, INC.

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF

CENTERPOINT ENERGY, INC. (PARENT COMPANY)

BALANCE SHEETS

	December 31,
	2009			2010
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	—		$	—
Notes receivable — subsidiaries		493			530
Accounts receivable — subsidiaries		72			59
Other assets		16			68
Total current assets		581			657
Other Assets:
Investment in subsidiaries		5,562			6,115
Notes receivable — subsidiaries		151			151
Other assets		751			723
Total other assets		6,464			6,989
Total Assets	$	7,045		$	7,646
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Notes payable — subsidiaries	$	306		$	900
Current portion of indexed debt		121			126
Current portion of other long-term debt		490			19
Indexed debt securities derivative		201			232
Accounts payable:
Subsidiaries		17			27
Other		40			1
Taxes accrued		416			318
Interest accrued		29			19
Other		1			1
Total current liabilities		1,621			1,643
Other Liabilities:
Accumulated deferred tax liabilities		122			124
Benefit obligations		426			460
Notes payable — subsidiaries		750			750
Other		7			10
Total non-current liabilities		1,305			1,344
Long-Term Debt		1,480			1,461
Shareholders’ Equity:
Common stock		4			4
Additional paid-in capital		3,671			4,100
Accumulated deficit		(912	)		(789	)
Accumulated other comprehensive loss		(124	)		(117	)
Total shareholders’ equity		2,639			3,198
Total Liabilities and Shareholders’ Equity	$	7,045		$	7,646

See CenterPoint Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements in Part II, Item 8

CENTERPOINT ENERGY, INC.

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF

CENTERPOINT ENERGY, INC. (PARENT COMPANY)

STATEMENTS OF CASH FLOWS

	For the Year Ended December 31,
	2008			2009			2010
	(in millions)
Operating Activities:
Net income	$	446		$	372		$	442
Non-cash items included in net income:
Equity income of subsidiaries		(490	)		(515	)		(564	)
Deferred income tax expense		90			(19	)		(16	)
Amortization of debt issuance costs		7			5			6
Loss (gain) on indexed debt securities		(128	)		68			31
Changes in working capital:
Accounts receivable/(payable) from subsidiaries, net		(65	)		86			78
Accounts payable		—			14			(16	)
Other current assets		2			(16	)		(27	)
Other current liabilities		(111	)		59			(111	)
Common stock dividends received from subsidiaries		746			109			9
Other		(7	)		(1	)		6
Net cash provided by (used in) operating activities		490			162			(162	)
Investing Activities:
Short-term notes receivable from subsidiaries		134			(411	)		(37	)
Net cash provided by (used in) investing activities		134			(411	)		(37	)
Financing Activities:
Revolving credit facility, net		133			(264	)		—
Proceeds from long-term debt		300			—			—
Payments on long-term debt		(907	)		—			(490	)
Debt issuance costs		(4	)		—			(2	)
Common stock dividends paid		(246	)		(276	)		(319	)
Proceeds from issuance of common stock, net		80			504			416
Short-term notes payable to subsidiaries		20			285			594
Net cash provided by (used in) financing activities		(624	)		249			199
Net Decrease in Cash and Cash Equivalents		—			—			—
Cash and Cash Equivalents at Beginning of Year		—			—			—
Cash and Cash Equivalents at End of Year	$	—		$	—		$	—

See CenterPoint Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements in Part II, Item 8

CENTERPOINT ENERGY, INC.

SCHEDULE I — NOTES TO CONDENSED FINANCIAL INFORMATION (PARENT COMPANY)

(1) Background. The condensed parent company financial statements and notes of CenterPoint Energy, Inc. (CenterPoint Energy) should be read in conjunction with the consolidated financial statements and notes of CenterPoint Energy, Inc. and subsidiaries appearing in the Annual Report on Form 10-K. Bank facilities at CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp., indirect wholly owned subsidiaries of CenterPoint Energy, limit debt, excluding transition and system restoration bonds, as a percentage of their total capitalization to 65%. These covenants could restrict the ability of these subsidiaries to distribute dividends to CenterPoint Energy.

(2) New Accounting Pronouncements. In June 2009, the Financial Accounting Standards Board (FASB) issued new accounting guidance on consolidation of variable interest entities (VIEs) that changes how a reporting entity determines a primary beneficiary that would consolidate the VIE from a quantitative risk and rewards approach to a qualitative approach based on which variable interest holder has the power to direct the economic performance related activities of the VIE as well as the obligation to absorb losses or right to receive benefits that could potentially be significant to the VIE. This new guidance requires the primary beneficiary assessment to be performed on an ongoing basis and also requires enhanced disclosures that will provide more transparency about a company’s involvement in a VIE. This new guidance was effective for a reporting entity’s first annual reporting period beginning after November 15, 2009. CenterPoint Energy’s adoption of this new guidance did not have a material impact on its financial position, results of operations or cash flows. As of December 31, 2010, CenterPoint Energy, Inc. and subsidiaries has four VIEs consisting of transition and system restoration bond companies which it consolidates. The consolidated VIEs are wholly-owned bankruptcy remote special purpose entities that were formed specifically for the purpose of securitizing transition and system restoration related property. Creditors of CenterPoint Energy have no recourse to any assets or revenues of the transition and system restoration bond companies. The bonds issued by these VIEs are payable only from and secured by transition and system restoration property and the bond holders have no recourse to the general credit of CenterPoint Energy.

In January 2010, the FASB issued new accounting guidance to require additional fair value related disclosures. It also clarified existing fair value disclosure guidance about the level of disaggregation and about inputs and valuation techniques. This new guidance was effective for the first reporting period beginning after December 15, 2009 except for certain disclosure requirements effective for the first reporting period beginning after December 15, 2010. CenterPoint Energy's adoption of this new guidance did not have a material impact on its financial position, results of operations or cash flows. CenterPoint Energy expects that the adoption of certain disclosure requirements effective in 2011 will not have a material impact on its financial position, results of operations or cash flows.

(3) Derivatives. CenterPoint Energy uses interest rate cash flow hedges in order to mitigate its exposure to variability in cash flows with respect to the future interest payments on designated borrowings. During the years ended December 31, 2008, 2009 and 2010 and as of December 31, 2009 and 2010, amounts related to CenterPoint Energy’s interest rate cash flow hedges were not material.

(4) Capital Stock. During the year ended December 31, 2010, CenterPoint Energy received net proceeds of approximately $315 million from the issuance of 25.3 million common shares in an underwritten public offering, proceeds of approximately $79 million from the sale of approximately 5.4 million common shares to CenterPoint Energy’s defined contribution plan and proceeds of approximately $15 million from the sale of approximately 1.0 million common shares to participants in CenterPoint Energy’s enhanced dividend reinvestment plan. In January 2011, CenterPoint Energy suspended the issuance of common shares to its defined contribution plan and its enhanced dividend reinvestment plan. Common shares for the two plans are now being purchased on the open market.

(5) Long-term Debt. As of December 31, 2009 and 2010, CenterPoint Energy had no borrowings and approximately $25 million and $20 million, respectively, of outstanding letters of credit under its $1.2 billion credit facility. There was no commercial paper outstanding that would have been backstopped by CenterPoint Energy’s $1.2 billion credit facility as of December 31, 2009 and 2010. CenterPoint Energy was in compliance with all debt covenants as of December 31, 2010.

CenterPoint Energy’s maturities of long-term debt, excluding the ZENS obligation, are $19 million in 2011 and $420 million in 2015. There are no maturities of long-term debt in 2012, 2013 and 2014.

(6) Guaranties. CenterPoint Energy Services, Inc. (CES), an indirect wholly-owned subsidiary of CenterPoint Energy, provides comprehensive natural gas sales and services to industrial and commercial customers. In order to hedge their exposure to natural gas prices, CES has entered standard purchase and sale agreements with various counterparties. CenterPoint Energy has guaranteed the payment obligations of CES under certain of these agreements, typically for one-year terms. As of December 31, 2010, CenterPoint Energy had guaranteed $15 million under these agreements.

In September 2009 and April 2010, CenterPoint Energy Field Services, LLC (CEFS), an indirect wholly-owned subsidiary of CenterPoint Energy, entered into long-term agreements with an indirect wholly-owned subsidiary of Encana Corporation (Encana) and an indirect wholly-owned subsidiary of Royal Dutch Shell plc (Shell) to provide gathering and treating services for their natural gas production from certain Haynesville Shale and Bossier Shale formations in Texas and Louisiana. CEFS also acquired jointly-owned gathering facilities from Encana and Shell. Each of the agreements includes acreage dedication and volume commitments for which CEFS has rights to gather Shell’s and Encana’s natural gas production from the dedicated areas.

In connection with the agreements, CEFS commenced gathering and treating services utilizing the acquired facilities. CEFS is expanding the acquired facilities. If Encana or Shell elect, CEFS will further expand the facilities in order to gather and treat additional future volumes. CenterPoint Energy has guaranteed to fund CEFS’ obligations, including the initial expansion of the facilities, under these long-term agreements. CenterPoint Energy’s initial guarantee was for a maximum amount of $200 million to both Shell and Encana ($400 million total), however the maximum amount of the guarantee could increase if the facilities are expanded or additional services are added. In March 2010, Encana and Shell each elected 100 MMcf per day in expansions at Magnolia which triggered an increase in the maximum amount of each guarantee by $35 million ($70 million total). The maximum amount of the guarantees reduce to $100 million, plus any additional amount related to any expansion or additional services, upon completion of the gathering systems. As of December 31, 2010, CenterPoint Energy had guaranteed CEFS’s obligations up to an amount of $470 million under these agreements.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2010

Schedule II - Valuation and Qualifying Accounts

CENTERPOINT ENERGY, INC.

SCHEDULE II —VALUATION AND QUALIFYING ACCOUNTS

For the Three Years Ended December 31, 2010

Column A	Column B		Column C						Column D			Column E
			Additions
	Balance at Beginning of Period		Charged to Income			Charged to Other Accounts			Deductions From Reserves (2)			Balance at End of Period
Description	(in millions)
Year Ended December 31, 2010:
Accumulated provisions:
Uncollectible accounts receivable	$	24	$	30		$	—		$	29	$	25
Deferred tax asset valuation allowance		5		(2	)		—			—		3
Year Ended December 31, 2009:
Accumulated provisions:
Uncollectible accounts receivable	$	35	$	36		$	—		$	47	$	24
Deferred tax asset valuation allowance		5		—			—			—		5
Year Ended December 31, 2008:
Accumulated provisions:
Uncollectible accounts receivable	$	38	$	54		$	3		$	60	$	35
Deferred tax asset valuation allowance		18		(1	)		(12	) (1)		—		5

(1)

The 2008 change to the deferred tax asset valuation allowance charged to other accounts represents a reduction equal to the related deferred tax asset reduction in 2008 for remeasurement of state tax attributes, net of federal tax benefit. A full valuation allowance for this deferred tax asset was established in prior periods.

(2)

Deductions from reserves represent losses or expenses for which the respective reserves were created. In the case of the uncollectible accounts reserve, such deductions are net of recoveries of amounts previously written off.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2010
Notes To Financial Statements [Abstract]
Use of Estimates	(a) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Principles of Consolidation	(b) Principles of Consolidation The accounts of CenterPoint Energy and its wholly owned and majority owned subsidiaries are included in the consolidated financial statements. All intercompany transactions and balances are eliminated in consolidation. CenterPoint Energy uses the equity method of accounting for investments in entities in which CenterPoint Energy has an ownership interest between 20% and 50% and exercises significant influence. CenterPoint Energy’s investments in unconsolidated affiliates include a 50% ownership interest in Southeast Supply Header, LLC (SESH) which owns and operates a 274-mile interstate natural gas pipeline and a 50% interest in Waskom Gas Processing Company (Waskom), a Texas general partnership, which owns and operates a natural gas processing plant and natural gas gathering assets. During 2009, CenterPoint Energy invested $137 million in SESH and received a capital distribution of $23 million from SESH. During 2010, CenterPoint Energy invested $20 million in Waskom. Other investments, excluding marketable securities, are carried at cost.
Revenues	(c) Revenues CenterPoint Energy records revenue for electricity delivery and natural gas sales and services under the accrual method and these revenues are recognized upon delivery to customers. Electricity deliveries not billed by month-end are accrued based on daily supply volumes, applicable rates and analyses reflecting significant historical trends and experience. Natural gas sales not billed by month-end are accrued based upon estimated purchased gas volumes, estimated lost and unaccounted for gas and currently effective tariff rates. The Interstate Pipelines and Field Services business segments record revenues as transportation and processing services are provided.
Long-lived Assets	(d) Long-lived Assets and Intangibles CenterPoint Energy records property, plant and equipment at historical cost. CenterPoint Energy expenses repair and maintenance costs as incurred. CenterPoint Energy periodically evaluates long-lived assets, including property, plant and equipment, and specifically identifiable intangibles, when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The determination of whether an impairment has occurred is based on an estimate of undiscounted cash flows attributable to the assets compared to the carrying value of the assets.
Regulatory Assets and Liabilities	(e) Regulatory Assets and Liabilities CenterPoint Energy applies the guidance for accounting for regulated operations, to the Electric Transmission & Distribution business segment and the Natural Gas Distribution business segment and to portions of the Interstate Pipelines business segment. CenterPoint Energy’s rate-regulated businesses recognize removal costs as a component of depreciation expense in accordance with regulatory treatment. As of December 31, 2009 and 2010, these removal costs of $818 million and $868 million, respectively, are classified as regulatory liabilities in CenterPoint Energy’s Consolidated Balance Sheets. A portion of the amount of removal costs that relate to asset retirement obligations has been reclassified from a regulatory liability to an asset retirement liability in accordance with accounting guidance for conditional asset retirement obligations.
Depreciation and Amortization Expense	(f) Depreciation and Amortization Expense Depreciation and amortization is computed using the straight-line method based on economic lives or regulatory-mandated recovery periods. Amortization expense includes amortization of regulatory assets and other intangibles.
Capitalization of Interest and Allowance for Funds Used During Construction	(g) Capitalization of Interest and Allowance for Funds Used During Construction Interest and allowance for funds used during construction (AFUDC) are capitalized as a component of projects under construction and are amortized over the assets’ estimated useful lives once the assets are placed in service. AFUDC represents the composite interest cost of borrowed funds and a reasonable return on the equity funds used for construction for subsidiaries that apply the guidance for accounting for regulated operations. During 2008, 2009 and 2010, CenterPoint Energy capitalized interest and AFUDC of $12 million, $5 million and $9 million, respectively.
Income Tax	(h) Income Taxes CenterPoint Energy files a consolidated federal income tax return and follows a policy of comprehensive interperiod tax allocation. CenterPoint Energy uses the asset and liability method of accounting for deferred income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Investment tax credits that were deferred are being amortized over the estimated lives of the related property. A valuation allowance is established against deferred tax assets for which management believes realization is not considered more likely than not. CenterPoint Energy recognizes interest and penalties as a component of income tax expense.
Accounts Receivable and Allowance for Doubtful Accounts	(i) Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are net of an allowance for doubtful accounts of $24 million and $25 million at December 31, 2009 and 2010, respectively. The provision for doubtful accounts in CenterPoint Energy’s Statements of Consolidated Income for 2008, 2009 and 2010 was $54 million, $36 million and $30 million, respectively.
Inventory	(j) Inventory Inventory consists principally of materials and supplies and natural gas. Materials and supplies are valued at the lower of average cost or market. Materials and supplies are recorded to inventory when purchased and subsequently charged to expense or capitalized to plant when installed. Natural gas inventories of CenterPoint Energy’s Competitive Natural Gas Sales and Services business segment are also primarily valued at the lower of average cost or market. Natural gas inventories of CenterPoint Energy’s Natural Gas Distribution business segment are primarily valued at weighted average cost. During both 2009 and 2010, CenterPoint Energy recorded $6 million in write-downs of natural gas inventory to the lower of average cost or market.
Derivative Instruments	(k) Derivative Instruments CenterPoint Energy is exposed to various market risks. These risks arise from transactions entered into in the normal course of business. CenterPoint Energy utilizes derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices and weather on its operating results and cash flows. Such derivatives are recognized in CenterPoint Energy’s Consolidated Balance Sheets at their fair value unless CenterPoint Energy elects the normal purchase and sales exemption for qualified physical transactions. A derivative may be designated as a normal purchase or normal sale if the intent is to physically receive or deliver the product for use or sale in the normal course of business. CenterPoint Energy has a Risk Oversight Committee composed of corporate and business segment officers that oversees all commodity price, weather and credit risk activities, including CenterPoint Energy’s marketing, risk management services and hedging activities. The committee’s duties are to establish CenterPoint Energy’s commodity risk policies, allocate board-approved commercial risk limits, approve the use of new products and commodities, monitor positions and ensure compliance with CenterPoint Energy’s risk management policies and procedures and limits established by CenterPoint Energy’s board of directors. CenterPoint Energy’s policies prohibit the use of leveraged financial instruments. A leveraged financial instrument, for this purpose, is a transaction involving a derivative whose financial impact will be based on an amount other than the notional amount or volume of the instrument.
Investments in Other Debt and Equity Securities	(l) Investments in Other Debt and Equity Securities CenterPoint Energy reports “trading” securities at estimated fair value in its Consolidated Balance Sheets, and any unrealized holding gains and losses are recorded as other income (expense) in its Statements of Consolidated Income.
Environmental Costs	<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 9pt; MARGIN-RIGHT: 0pt" align="left"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">(m) Environmental Costs</font></div><div style="TEXT-INDENT: 0pt; DISPLAY: block"><br /></div><div style="TEXT-INDENT: 18pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">CenterPoint Energy expenses or capitalizes environmental expenditures, as appropriate, depending on their future economic benefit. CenterPoint Energy expenses amounts that relate to an existing condition caused by past operations that do not have future economic benefit. CenterPoint Energy records undiscounted liabilities related to these future costs when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated.</font></div>

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2010

Schedule of Inventory

	December 31,
	2009		2010
	(in millions)
Materials and supplies	$	138	$	164
Natural gas		189		211
Total inventory	$	327	$	375

Property, Plant and Equipment and Intangibles (Tables)

12 Months Ended

Dec. 31, 2010

Schedule of Property, Plant and Equipment

Property, plant and equipment includes the following:

	Weighted Average
	Useful Lives	December 31,
	(Years)	2009		2010
		(in millions)
Electric Transmission & Distribution	27	$	7,325	$	7,586
Natural Gas Distribution	31		3,436		3,642
Competitive Natural Gas Sales and Services	26		69		71
Interstate Pipelines	58		2,524		2,594
Field Services	46		931		1,583
Other property	25		485		529
Total			14,770		16,005
Accumulated depreciation and amortization:
Electric Transmission & Distribution			2,737		2,805
Natural Gas Distribution			825		954
Competitive Natural Gas Sales and Services			13		16
Interstate Pipelines			223		265
Field Services			27		43
Other property			157		190
Total accumulated depreciation and amortization			3,982		4,273
Property, plant and equipment, net		$	10,788	$	11,732

Depreciation and amortization

The following table presents depreciation and amortization expense for 2008, 2009 and 2010 (in millions).

	2008		2009		2010
Depreciation expense	$	478	$	496	$	531
Amortization expense		230		247		333
Total depreciation and amortization expense	$	708	$	743	$	864

Asset Retirement Obligation

A reconciliation of the changes in the asset retirement obligation (ARO) liability is as follows (in millions):

	December 31,
	2009		2010
Beginning balance	$	63	$	82
Accretion expense		7		5
Revisions in estimates of cash flows		12		(3	)
Ending balance	$	82	$	84

Goodwill (Tables)

12 Months Ended

Dec. 31, 2010

Goodwill by reportable segment

Goodwill by reportable segment as of December 31, 2009 and 2010 is as follows (in millions):

Natural Gas Distribution	$	746
Interstate Pipelines		579
Competitive Natural Gas Sales and Services		335
Field Services		25
Other Operations		11
Total	$	1,696

Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2010

Schedule of regulatory assets and liabilities

The following is a list of regulatory assets/liabilities reflected on CenterPoint Energy’s Consolidated Balance Sheets as of December 31, 2009 and 2010:

	December 31,
	2009			2010
	(in millions)
Securitized regulatory assets	$	2,886		$	2,597
Unrecognized equity return		(232	)		(216	)
Unamortized loss on reacquired debt		67			61
Pension and postretirement-related regulatory asset (1)		813			838
Other long-term regulatory assets		143			166
Total regulatory assets (1)		3,677			3,446

Estimated removal costs		818			868
Other long-term regulatory liabilities		103			121
Total regulatory liabilities		921			989

Total regulatory assets and liabilities, net	$	2,756		$	2,457

(1)

Stock-Based Incentive Compensation Plans and Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2010

Summary of activity in all stock based incentive compensation plans

The following tables summarize CenterPoint Energy’s LTIPs activity for 2010:

Stock Options

	Outstanding Options Year Ended December 31, 2010
	Shares (Thousands)			Weighted-Average Exercise Price		Remaining Average Contractual Life (Years)	Aggregate Intrinsic Value (Millions)
Outstanding at December 31, 2009		4,513		$	17.95
Expired		(399	)		17.25
Cancelled		(207	)		31.48
Exercised		(830	)		10.05
Outstanding at December 31, 2010		3,077			19.27	1.3	$	12
Exercisable at December 31, 2010		3,077			19.27	1.3		12

Performance Awards

	Outstanding and Non-Vested Shares Year Ended December 31, 2010
	Shares (Thousands)			Weighted-Average Grant Date Fair Value		Remaining Average Contractual Life (Years)		Aggregate Intrinsic Value (Millions)
Outstanding at December 31, 2009		2,583		$	14.62
Granted		1,130			14.21
Forfeited or cancelled		(350	)		17.24
Vested and released to participants		(295	)		18.09
Outstanding at December 31, 2010		3,068			13.84	1.1	$	37

Stock Awards

	Outstanding and Non-Vested Stock Shares Year Ended December 31, 2010
	Shares (Thousands)			Weighted-Average Grant Date Fair Value		Remaining Average Contractual Life (Years)		Aggregate Intrinsic Value (Millions)
Outstanding at December 31, 2009		951		$	14.36
Granted		440			14.26
Forfeited or cancelled		(25	)		13.38
Vested and released to participants		(270	)		16.65
Outstanding at December 31, 2010		1,096			13.78	1.2	$	17

The weighted-average grant-date fair values of awards granted were as follows for 2008, 2009 and 2010:

	Year Ended December 31,
	2008		2009		2010
Performance awards	$	15.40	$	12.42	$	14.21
Stock awards		15.09		12.30		14.26

The total intrinsic value of awards received by participants was as follows for 2008, 2009 and 2010:

	Year Ended December 31,
	2008		2009		2010
	(in millions)
Stock options exercised	$	2	$	2	$	4
Performance awards		6		7		5
Stock awards		5		4		4

Schedule of net pension and post-retirement benefit costs

CenterPoint Energy’s net periodic cost includes the following components relating to pension, including the benefit restoration plan, and postretirement benefits:

	Year Ended December 31,
	2008						2009						2010
	Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits
	(in millions)
Service cost	$	31		$	1		$	25		$	1		$	31		$	1
Interest cost		101			27			113			28			102			25
Expected return on plan assets		(147	)		(12	)		(98	)		(9	)		(109	)		(10	)
Amortization of prior service cost (credit)		(8	)		3			3			3			3			3
Amortization of net loss		23			—			68			—			59			—
Amortization of transition obligation		—			7			—			7			—			7
Benefit enhancement		1			—			—			—			—			—
Net periodic cost	$	1			26			111			30			86			26

CenterPoint Energy used the following assumptions to determine net periodic cost relating to pension and postretirement benefits:

	December 31,
	2008						2009						2010
	Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits
Discount rate		6.40	%		6.40	%		6.90	%		6.90	%		5.70	%		5.70	%
Expected return on plan assets		8.50			7.60			8.00			7.05			8.00			7.05
Rate of increase in compensation levels		4.60			—			4.60			—			4.60			—

	December 31,
	2009						2010
	Pension Benefits			Postretirement Benefits			Pension Benefits			Postretirement Benefits
	(in millions, except for actuarial assumptions)
Change in Benefit Obligation
Benefit obligation, beginning of year	$	1,710		$	426		$	1,866		$	450
Service cost		25			1			31			1
Interest cost		113			28			102			25
Participant contributions		—			6			—			7
Benefits paid		(111	)		(42	)		(115	)		(50	)
Actuarial gain		129			29			85			24
Medicare reimbursement		—			2			—			3
Benefit obligation, end of year		1,866			450			1,969			460
Change in Plan Assets
Fair value of plan assets, beginning of year		1,276			135			1,432			146
Employer contributions		20			28			8			29
Participant contributions		—			6			—			7
Benefits paid		(111	)		(42	)		(115	)		(50	)
Actual investment return		247			19			176			12
Fair value of plan assets, end of year		1,432			146			1,501			144
Funded status, end of year	$	(434	)	$	(304	)	$	(468	)	$	(316	)
Amounts Recognized in Balance Sheets
Current liabilities-other	$	(9	)	$	(9	)	$	(9	)	$	(9	)
Other liabilities-benefit obligations		(425	)		(295	)		(459	)		(307	)
Net liability, end of year	$	(434	)	$	(304	)	$	(468	)	$	(316	)
Actuarial Assumptions
Discount rate		5.70	%		5.70	%		5.25	%		5.20	%
Expected return on plan assets		8.00			7.05			8.00			7.05
Rate of increase in compensation levels		4.60			—			4.60			—
Healthcare cost trend rate assumed for the next year		—			7.50			—			8.50
Prescription drug cost trend rate assumed for the next year		—			8.00			—			8.50
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		—			5.50			—			5.50
Year that the healthcare rate reaches the ultimate trend rate		—			2014			—			2017
Year that the prescription drug rate reaches the ultimate trend rate		—			2015			—			2017

Amounts recognized in accumulated other comprehensive loss consist of the following:

	December 31,
	2009				2010
	Pension Benefits		Postretirement Benefits		Pension Benefits		Postretirement Benefits
	(in millions)
Unrecognized actuarial loss	$	162	$	15	$	151	$	18
Unrecognized prior service cost		16		9		15		7
Unrecognized transition obligation		—		3		—		2
Net amount recognized in accumulated other comprehensive loss	$	178	$	27	$	166	$	27

The changes in plan assets and benefit obligations recognized in other comprehensive income during 2010 are as follows (in millions):

	Pension Benefits			Postretirement Benefits
Net loss (gain)	$	(24	)	$	3
Amortization of net loss		13			—
Prior service credit		(2	)		(4	)
Amortization of prior service credit		1			2
Transition obligation		—			(1	)
Total recognized in comprehensive income	$	(12	)	$	—

The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2011 are as follows (in millions):

	Pension Benefits		Postretirement Benefits
Unrecognized actuarial loss	$	12	$	—
Unrecognized prior service cost		1		2
Amounts in accumulated comprehensive income to be recognized in net periodic cost in 2011	$	13	$	2

The following table displays pension benefits related to CenterPoint Energy’s pension plans that have accumulated benefit obligations in excess of plan assets:

	December 31,
	2009				2010
	Pension Qualified		Pension Non-qualified		Pension Qualified		Pension Non-qualified
	(in millions)
Accumulated benefit obligation	$	1,770	$	94	$	1,860	$	94
Projected benefit obligation		1,772		94		1,875		94
Fair value of plan assets		1,432		—		1,501		—

As part of the investment strategy discussed above, CenterPoint Energy has adopted and maintains the following weighted average allocation targets for its benefit plans:

	Pension Benefits	Postretirement Benefits
Domestic equity securities	25-35%	14-24%
Global equity securities	7-13%	—
International equity securities	17-23%	3-13%
Debt securities	30-40%	68-78%
Real estate	0-5%	—
Cash	0-2%	0-2%

The following benefit payments are expected to be paid by the pension and postretirement benefit plans (in millions):

			Postretirement Benefit Plan
	Pension Benefits		Benefit Payments		Medicare Subsidy Receipts
2011	$	142	$	33	$	(4	)
2012		148		34		(5	)
2013		149		39		(5	)
2014		149		40		(6	)
2015		149		42		(6	)
2016-2020		762		225		(42	)

Schedule of fair value of financial assets for pension and post-retirement benefits

The following tables set forth by level, within the fair value hierarchy, CenterPoint Energy’s pension plan assets at fair value as of December 31, 2009 and 2010:

	Fair Value Measurements at December 31, 2009 (in millions)
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	11		$	11		$	—	$	—
Common collective trust funds (1)		733			—			733		—
Corporate bonds:
Investment grade or above		193			—			192		1
High yield		2			—			2		—
Equity securities:
International companies		162			160			2		—
U.S. companies		96			96			—		—
Cash received as collateral from securities lending		114			114			—		—
U.S. government backed agencies bonds		55			55			—		—
U.S. treasuries		50			50			—		—
Mortgage backed securities		39			—			39		—
Asset backed securities		27			—			24		3
Municipal bonds		22			2			20		—
Mutual funds (2)		21			21			—		—
International government bonds		12			—			12		—
Real estate		9			—			—		9
Obligation to return cash received as collateral from securities lending		(114	)		(114	)		—		—
Total	$	1,432		$	395		$	1,024	$	13

(1)

30% of the amount invested in common collective trust funds is in fixed income securities, 31% is in U.S. equities and 39% is in international equities.

(2)

48% of the amount invested in mutual funds is in fixed income securities and 52% is in U.S. equities.

	Fair Value Measurements at December 31, 2010 (in millions)
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash	$	3		$	3		$	—	$	—
Common collective trust funds (1)		890			—			890		—
Corporate bonds:
Investment grade or above		122			—			122		—
Equity securities:
International companies		133			133			—		—
U.S. companies		131			131			—		—
Cash received as collateral from securities lending		112			112			—		—
U.S. government backed agencies bonds		34			34			—		—
U.S. treasuries		62			62			—		—
Mortgage backed securities		8			—			8		—
Asset backed securities		10			—			10		—
Municipal bonds		28			—			28		—
Mutual funds (2)		55			55			—		—
International government bonds		17			—			17		—
Real estate		8			—			—		8
Obligation to return cash received as collateral from securities lending		(112	)		(112	)		—		—
Total	$	1,501		$	418		$	1,075	$	8

(1)

24% of the amount invested in common collective trust funds is in fixed income securities, 42% is in U.S. equities and 34% is in international equities.

(2)

74% of the amount invested in mutual funds is in fixed income securities and 26% is in U.S. equities.

The following tables present additional information about the changes in the fair value of the pension plan’s level 3 investments for the years ended December 31, 2009 and 2010:

	Level 3 Investments
	Year Ended December 31, 2009 (in millions)
	Corporate bonds		Asset backed securities		Real estate			Total
Balance, beginning of year	$	1	$	3	$	14		$	18
Unrealized losses relating to instruments still held at the reporting date		—		—		(5	)		(5	)
Balance, end of year	$	1	$	3	$	9		$	13

	Level 3 Investments
	Year Ended December 31, 2010 (in millions)
	Corporate bonds			Asset backed securities			Real estate			Total
Balance, beginning of year	$	1		$	3		$	9		$	13
Unrealized losses relating to instruments still held at the reporting date		—			—			(1	)		(1	)
Purchases, sales, issuances, and settlement (net)		—			(1	)		—			(1	)
Transfer out of Level 3		(1	)		(2	)		—			(3	)
Balance, end of year	$	—		$	—		$	8		$	8

The following tables present by level, within the fair value hierarchy, CenterPoint Energy’s postretirement plan assets at fair value as of December 31, 2009 and 2010, by asset category:

	Fair Value Measurements at December 31, 2009 (in millions)
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs Level 3)
Mutual funds (1)	$	146	$	146	$	—	$	—
Total	$	146	$	146	$	—	$	—

(1)

65% of the amount invested in mutual funds is in fixed income securities, 26% is in U.S. equities and 9% is in international equities.

	Fair Value Measurements at December 31, 2010 (in millions)
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs Level 3)
Mutual funds (1)	$	144	$	144	$	—	$	—
Total	$	144	$	144	$	—	$	—

(1)

73% of the amount invested in mutual funds is in fixed income securities, 19% is in U.S. equities and 8% is in international equities.

The following tables present additional information about the changes in the fair value of the pension plan’s level 3 investments for the years ended December 31, 2009 and 2010:

	Level 3 Investments
	Year Ended December 31, 2009 (in millions)
	Corporate bonds		Asset backed securities		Real estate			Total
Balance, beginning of year	$	1	$	3	$	14		$	18
Unrealized losses relating to instruments still held at the reporting date		—		—		(5	)		(5	)
Balance, end of year	$	1	$	3	$	9		$	13

	Level 3 Investments
	Year Ended December 31, 2010 (in millions)
	Corporate bonds			Asset backed securities			Real estate			Total
Balance, beginning of year	$	1		$	3		$	9		$	13
Unrealized losses relating to instruments still held at the reporting date		—			—			(1	)		(1	)
Purchases, sales, issuances, and settlement (net)		—			(1	)		—			(1	)
Transfer out of Level 3		(1	)		(2	)		—			(3	)
Balance, end of year	$	—		$	—		$	8		$	8

Schedule of a one-percent point change in the assumed health care cost trend rates

	1% Increase		1% Decrease
	(in millions)
Effect on the postretirement benefit obligation	$	18	$	16
Effect on total of service and interest cost		1		1

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2010

Fair Value of Derivative Instruments

Fair Value of Derivative Instruments
	December 31, 2009
Total derivatives not designated as hedging instruments	Balance Sheet Location	Derivative Assets Fair Value (2) (3)		Derivative Liabilities Fair Value (2) (3)
		(in millions)
Natural gas contracts (1)	Current Assets	$	46	$	(7	)
Natural gas contracts (1)	Other Assets		16		(1	)
Natural gas contracts (1)	Current Liabilities		20		(123	)
Natural gas contracts (1)	Other Liabilities		1		(86	)
Indexed debt securities derivative	Current Liabilities		—		(201	)
Total		$	83	$	(418	)

(1)

(2)

(3)

Fair Value of Derivative Instruments
	December 31, 2010
Total derivatives not designated as hedging instruments	Balance Sheet Location	Derivative Assets Fair Value (2) (3)		Derivative Liabilities Fair Value (2) (3)
		(in millions)
Natural gas contracts (1)	Current Assets	$	55	$	(1	)
Natural gas contracts (1)	Other Assets		15		—
Natural gas contracts (1)	Current Liabilities		10		(143	)
Natural gas contracts (1)	Other Liabilities		—		(35	)
Indexed debt securities derivative	Current Liabilities		—		(232	)
Total		$	80	$	(411	)

(1)

(2)

(3)

Income Statement Impact of Derivative Activity

Income Statement Impact of Derivative Activity
		Year Ended December 31,
Total derivatives not designated as hedging instruments	Income Statement Location	2009			2010
		(in millions)
Natural gas contracts	Gains (Losses) in Revenue	$	102		$	90
Natural gas contracts (1)	Gains (Losses) in Expense: Natural Gas		(255	)		(165	)
Indexed debt securities derivative	Gains (Losses) in Other Income (Expense)		(68	)		(31	)
Total		$	(221	)	$	(106	)

(1)	The Gains (Losses) in Expense: Natural Gas includes $(181) million and $(115) million of costs in 2009 and 2010, respectively, associated with price stabilization activities of the Natural Gas Distribution business segment that will be ultimately recovered through purchased gas adjustments.

Credit Quality of Counterparties

The following table shows the composition of counterparties to the non-trading derivative assets of CenterPoint Energy as of December 31, 2009 and 2010 (in millions):

	December 31, 2009				December 31, 2010
	Investment Grade(1)		Total		Investment Grade(1)		Total
Energy marketers	$	6	$	6	$	5	$	8
Financial institutions		2		4		1		1
Retail end users (2)		1		44		—		60
Total	$	9	$	54	$	6	$	69

(1)

(2)

Retail end users represent customers who have contracted to fix the price of a portion of their physical gas requirements for future periods.

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2010

Fair value, assets measured on a recurring basis

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments (1)			Balance as of December 31, 2009
	(in millions)
Assets
Corporate equities	$	301	$	—	$	—	$	—		$	301
Investments, including money market funds		41		—		—		—			41
Derivative assets		1		77		5		(29	)		54
Total assets	$	343	$	77	$	5	$	(29	)	$	396
Liabilities
Indexed debt securities derivative	$	—	$	201	$	—	$	—		$	201
Derivative liabilities		12		194		11		(124	)		93
Total liabilities	$	12	$	395	$	11	$	(124	)	$	294

(1)

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments (1)			Balance as of December 31, 2010
	(in millions)
Assets
Corporate equities	$	368	$	—	$	—	$	—		$	368
Investments, including money market funds		54		—		—		—			54
Derivative assets		—		73		7		(11	)		69
Total assets	$	422	$	73	$	7	$	(11	)	$	491
Liabilities
Indexed debt securities derivative	$	—	$	232	$	—	$	—		$	232
Derivative liabilities		8		167		4		(95	)		84
Total liabilities	$	8	$	399	$	4	$	(95	)	$	316

(1)

Fair value, liabilities measured on a recurring basis

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments (1)			Balance as of December 31, 2009
	(in millions)
Assets
Corporate equities	$	301	$	—	$	—	$	—		$	301
Investments, including money market funds		41		—		—		—			41
Derivative assets		1		77		5		(29	)		54
Total assets	$	343	$	77	$	5	$	(29	)	$	396
Liabilities
Indexed debt securities derivative	$	—	$	201	$	—	$	—		$	201
Derivative liabilities		12		194		11		(124	)		93
Total liabilities	$	12	$	395	$	11	$	(124	)	$	294

(1)

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments (1)			Balance as of December 31, 2010
	(in millions)
Assets
Corporate equities	$	368	$	—	$	—	$	—		$	368
Investments, including money market funds		54		—		—		—			54
Derivative assets		—		73		7		(11	)		69
Total assets	$	422	$	73	$	7	$	(11	)	$	491
Liabilities
Indexed debt securities derivative	$	—	$	232	$	—	$	—		$	232
Derivative liabilities		8		167		4		(95	)		84
Total liabilities	$	8	$	399	$	4	$	(95	)	$	316

(1)

Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Derivative assets and liabilities, net
	Year Ended December 31,
	2008			2009			2010
	(in millions)
Beginning balance	$	(3	)	$	(58	)	$	(6	)
Total unrealized gains or (losses):
Included in earnings		(11	)		(1	)		4
Included in regulatory assets		(10	)		(16	)		(1	)
Purchases, sales and other settlements, net:
Included in earnings		6			3			(2	)
Included in regulatory assets		(41	)		66			8
Net transfers into Level 3		1			—			—
Ending balance	$	(58	)	$	(6	)	$	3
The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	7		$	1		$	4

Estimated fair value of financial instruments, debt instruments

	December 31, 2009				December 31, 2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Financial liabilities:
Long-term debt	$	9,900	$	10,413	$	9,303	$	10,071

Indexed Debt Securities (ZENS) and Time Warner Securities (Tables)

12 Months Ended

Dec. 31, 2010

Summarized financial information on investment in Time Warner Securities and indexed debt security obligation

	TW Securities			Debt Component of ZENS			Derivative Component of ZENS
Balance at December 31, 2007	$	357		$	114		$	261
Accretion of debt component of ZENS		—			20			—
2% interest paid		—			(17	)		—
Gain on indexed debt securities		—			—			(128	)
Loss on TW Common		(139	)		—			—
Balance at December 31, 2008		218			117			133
Accretion of debt component of ZENS		—			21			—
2% interest paid		—			(17	)		—
Loss on indexed debt securities		—			—			68
Gain on TW Securities		82			—			—
Balance at December 31, 2009		300			121			201
Accretion of debt component of ZENS		—			22			—
2% interest paid		—			(17	)		—
Loss on indexed debt securities		—			—			31
Gain on TW Securities		67			—			—
Balance at December 31, 2010	$	367		$	126		$	232

Short Term Borrowings and Long Term Debt (Tables)

12 Months Ended

Dec. 31, 2010

Short-term borrowings

	December 31, 2009					December 31, 2010
	Long-Term			Current(1)		Long-Term			Current(1)
	(in millions)
Short-term borrowings:
Inventory financing	$	—		$	55	$	—		$	53
Total short-term borrowings		—			55		—			53
Long-term debt:
CenterPoint Energy:
ZENS(2)		—			121		—			126
Senior notes 5.95% to 6.85% due 2015 to 2018		750			200		750			—
Pollution control bonds 4.00% due 2015(3)		151			—		151			—
Pollution control bonds 4.70% to 5.95% due 2011 to 2030(4)		581			290		562			19
Other		—			7		—			—
CenterPoint Houston:
First mortgage bonds 9.15% due 2021		102			—		102			—
General mortgage bonds 5.60% to 7.00% due 2013 to 2033		1,762			—		1,762			—
Pollution control bonds 3.625% to 5.60% due 2012 to 2027(5)		229			—		229			—
System restoration bonds 1.833% to 4.243% due 2011 to 2022		645			20		601			43
Transition bonds 4.192% to 5.63% due 2011 to 2020		2,160			221		1,921			240
CERC Corp.:
Convertible subordinated debentures 6.00% due 2012		—			44		—			—
Senior notes 5.95% to 7.875% due 2013 to 2037 (6)		2,747			—		2,747			—
Commercial paper (7)		—			—		183			—
Other		1			—		1			—
Unamortized discount and premium		(9	)		—		(8	)		—
Total long-term debt		9,119			903		9,001			428
Total debt	$	9,119		$	958	$	9,001		$	481

(1)

Includes amounts due or exchangeable within one year of the date noted.

(2)

(3)

These series of debt are secured by first mortgage bonds of CenterPoint Houston.

(4)

$527 million and $237 million of these series of debt is secured by general mortgage bonds of CenterPoint Houston at December 31, 2009 and 2010, respectively.

(5)

These series of debt are secured by general mortgage bonds of CenterPoint Houston.

(6)

$550 million senior notes due February 2011 are not reflected in the current portion of long-term debt as of December 31, 2010 because the notes were refinanced in January 2011.

(7)

Classified as long-term debt because the termination date of the facility that backstops the commercial paper is more than one year from the date noted.

Long-term Debt

	December 31, 2009					December 31, 2010
	Long-Term			Current(1)		Long-Term			Current(1)
	(in millions)
Short-term borrowings:
Inventory financing	$	—		$	55	$	—		$	53
Total short-term borrowings		—			55		—			53
Long-term debt:
CenterPoint Energy:
ZENS(2)		—			121		—			126
Senior notes 5.95% to 6.85% due 2015 to 2018		750			200		750			—
Pollution control bonds 4.00% due 2015(3)		151			—		151			—
Pollution control bonds 4.70% to 5.95% due 2011 to 2030(4)		581			290		562			19
Other		—			7		—			—
CenterPoint Houston:
First mortgage bonds 9.15% due 2021		102			—		102			—
General mortgage bonds 5.60% to 7.00% due 2013 to 2033		1,762			—		1,762			—
Pollution control bonds 3.625% to 5.60% due 2012 to 2027(5)		229			—		229			—
System restoration bonds 1.833% to 4.243% due 2011 to 2022		645			20		601			43
Transition bonds 4.192% to 5.63% due 2011 to 2020		2,160			221		1,921			240
CERC Corp.:
Convertible subordinated debentures 6.00% due 2012		—			44		—			—
Senior notes 5.95% to 7.875% due 2013 to 2037 (6)		2,747			—		2,747			—
Commercial paper (7)		—			—		183			—
Other		1			—		1			—
Unamortized discount and premium		(9	)		—		(8	)		—
Total long-term debt		9,119			903		9,001			428
Total debt	$	9,119		$	958	$	9,001		$	481

(1)

Includes amounts due or exchangeable within one year of the date noted.

(2)

(3)

These series of debt are secured by first mortgage bonds of CenterPoint Houston.

(4)

$527 million and $237 million of these series of debt is secured by general mortgage bonds of CenterPoint Houston at December 31, 2009 and 2010, respectively.

(5)

These series of debt are secured by general mortgage bonds of CenterPoint Houston.

(6)

$550 million senior notes due February 2011 are not reflected in the current portion of long-term debt as of December 31, 2010 because the notes were refinanced in January 2011.

(7)

Classified as long-term debt because the termination date of the facility that backstops the commercial paper is more than one year from the date noted.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2010

Reconciliation of expected federal income tax expense to actual

Income Tax Expense

The components of CenterPoint Energy’s income tax expense were as follows:

	Year Ended December 31,
	2008			2009			2010
	(in millions)
Current income tax expense (benefit):
Federal	$	(221	)	$	(103	)	$	40
State		11			10			24
Total current expense (benefit)		(210	)		(93	)		64
Deferred income tax expense (benefit):
Federal		437			251			220
State		50			18			(21	)
Total deferred expense		487			269			199
Total income tax expense	$	277		$	176		$	263

A reconciliation of the expected federal income tax expense using the federal statutory income tax rate to the actual income tax expense and resulting effective income tax rate is as follows:

	Year Ended December 31,
	2008			2009			2010
	(in millions)
Income before income taxes	$	723		$	548		$	705
Federal statutory income tax rate		35	%		35	%		35	%
Expected federal income tax expense		253			192			247
Increase (decrease) in tax expense resulting from:
State income tax expense, net of federal income tax		40			18			2
Amortization of investment tax credit		(7	)		(7	)		(7	)
Tax law change in deductibility of retiree health care costs		—			—			20
Increase (decrease) in settled and uncertain income tax positions		8			(5	)		14
Other, net		(17	)		(22	)		(13	)
Total		24			(16	)		16
Total income tax expense	$	277		$	176		$	263
Effective tax rate		38.4	%		32.1	%		37.3	%

Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows:

	December 31,
	2009			2010
	(in millions)
Deferred tax assets:
Current:
Allowance for doubtful accounts	$	10		$	11
Deferred gas costs		7			32
Other		—			21
Total current deferred tax assets		17			64
Non-current:
Loss and credit carryforwards		42			49
Employee benefits		366			346
Other		51			48
Total non-current deferred tax assets before valuation allowance		459			443
Valuation allowance		(5	)		(3	)
Total non-current deferred tax assets, net of valuation allowance		454			440
Total deferred tax assets, net of valuation allowance		471			504
Deferred tax liabilities:
Current:
Unrealized gain on indexed debt securities	$	366		$	391
Unrealized gain on TW securities		57			80
Total current deferred tax liabilities		423			471
Non-current:
Depreciation		1,887			2,086
Regulatory assets, net		1,298			1,256
Other		45			32
Total non-current deferred tax liabilities		3,230			3,374
Total deferred tax liabilities		3,653			3,845
Accumulated deferred income taxes, net	$	3,182		$	3,341

Rollforward of unrecognized tax benefits

Uncertain Income Tax Positions. The following table reconciles the beginning and ending balance of CenterPoint Energy’s unrecognized tax benefits:

	December 31,
	2008			2009			2010
	(in millions)
Balance, beginning of year	$	82		$	117		$	187
Tax Positions related to prior years:
Additions		20			56			9
Reductions		(2	)		(25	)		(4	)
Tax Positions related to current year:
Additions		17			56			60
Settlements		—			(17	)		—
Balance, end of year	$	117		$	187		$	252

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2010

Lease commitments

2011	$	15
2012		12
2013		7
2014		6
2015		4
2016 and beyond		15
Total	$	59

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2010

Basic and diluted earnings per share

The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per share calculations:

	For the Year Ended December 31,
	2008		2009		2010
	(in millions, except per share and share amounts)
Basic earnings per share calculation:
Net income	$	446	$	372	$	442

Weighted average shares outstanding		336,387,000		365,229,000		409,721,000

Basic earnings per share	$	1.32	$	1.02	$	1.08

Diluted earnings per share calculation:
Net income	$	446	$	372	$	442

Weighted average shares outstanding		336,387,000		365,229,000		409,721,000
Plus: Incremental shares from assumed conversions:
Stock options(1)		760,000		451,000		470,000
Restricted stock		1,772,000		2,001,000		2,585,000
3.75% convertible senior notes		4,636,000		—		—
Weighted average shares assuming dilution		343,555,000		367,681,000		412,776,000

Diluted earnings per share	$	1.30	$	1.01	$	1.07

(1)

Unaudited Quarterly Information (Tables)

12 Months Ended

Dec. 31, 2010

Quarterly financial data [Text Block]

Summarized quarterly financial data is as follows:

	Year Ended December 31, 2009
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
	(in millions, except per share amounts)
Revenues	$	2,766	$	1,640	$	1,576	$	2,299
Operating income		285		253		287		299
Net income		67		86		114		105

Basic earnings per share(1)	$	0.19	$	0.24	$	0.31	$	0.27

Diluted earnings per share(1)	$	0.19	$	0.24	$	0.31	$	0.27

	Year Ended December 31, 2010
	First Quarter (2)		Second Quarter		Third Quarter		Fourth Quarter (3)
	(in millions, except per share amounts)
Revenues	$	3,023	$	1,756	$	1,908	$	2,098
Operating income		357		263		327		302
Net income		114		81		123		124

Basic earnings per share(1)	$	0.29	$	0.20	$	0.29	$	0.29

Diluted earnings per share(1)	$	0.29	$	0.20	$	0.29	$	0.29

(1)

Quarterly earnings per common share are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal annual earnings per common share.

(2)

(3)

Reportable Business Segments (Tables)

12 Months Ended

Dec. 31, 2010

Financial data for business segments [Text Block]

Financial data for business segments and products and services are as follows (in millions):

	Revenues from External Customers			Intersegment Revenues			Depreciation and Amortization		Operating Income		Total Assets			Expenditures for Long-Lived Assets
As of and for the year ended December 31, 2008:
Electric Transmission & Distribution	$	1,916	(1)	$	—		$	460	$	545	$	8,880		$	481	(5)
Natural Gas Distribution		4,217			9			157		215		4,961			214
Competitive Natural Gas Sales and Services		4,488			40			3		62		1,315			8
Interstate Pipelines(2)		477			173			46		293		3,578			189
Field Services(3)		213			39			12		147		826			122
Other		11			—			30		11		2,185	(4)		39
Reconciling Eliminations		—			(261	)		—		—		(2,069	)		—
Consolidated	$	11,322		$	—		$	708	$	1,273	$	19,676		$	1,053
As of and for the year ended December 31, 2009:
Electric Transmission & Distribution	$	2,013	(1)	$	—		$	480	$	545	$	9,755		$	428	(5)
Natural Gas Distribution		3,374			10			161		204		4,535			165
Competitive Natural Gas Sales and Services		2,215			15			4		21		1,176			2
Interstate Pipelines(2)		456			142			48		256		3,484			176
Field Services(3)		212			29			15		94		1,045			348
Other		11			—			35		4		2,261	(4)		29
Reconciling Eliminations		—			(196	)		—		—		(2,483	)		—
Consolidated	$	8,281		$	—		$	743	$	1,124	$	19,773		$	1,148
As of and for the year ended December 31, 2010:
Electric Transmission & Distribution	$	2,205	(1)	$	—		$	582	$	567	$	9,817		$	463
Natural Gas Distribution		3,199			14			166		231		4,575			202
Competitive Natural Gas Sales and Services		2,617			34			4		16		1,190			2
Interstate Pipelines(2)		464			137			52		270		3,672			102
Field Services(3)		289			49			25		151		1,803			668
Other		11			—			35		14		2,184	(4)		25
Reconciling Eliminations		—			(234	)		—		—		(3,130	)		—
Consolidated	$	8,785		$	—		$	864	$	1,249	$	20,111		$	1,462

(1)

(2)

(3)

(4)

(5)

Included in expenditures for long-lived assets of Electric Transmission & Distribution is $145 million and $26 million for 2008 and 2009, respectively, related to Hurricane Ike.

Revenues by Products and Services [Text Block]

	Year Ended December 31,
Revenues by Products and Services:	2008		2009		2010
	(in millions)

Electric delivery sales	$	1,916	$	2,013	$	2,205
Retail gas sales		6,216		4,540		4,412
Wholesale gas sales		2,295		902		1,250
Gas transport		756		691		785
Energy products and services		139		135		133
Total	$	11,322	$	8,281	$	8,785

Schedule I: Financial Information of Centerpoint Energy, Inc. (Parent Company) (Tables)

12 Months Ended

Dec. 31, 2010

Schedule of Condensed Financial Statements

STATEMENTS OF INCOME

	For the Year Ended December 31,
	2008			2009			2010
	(in millions)
Expenses:
Operation and Maintenance Expenses	$	(12	)	$	(17	)	$	(12	)
Taxes Other than Income		1			—			—
Total		(11	)		(17	)		(12	)
Other Income (Expense):
Interest Income from Subsidiaries		12			8			8
Other Expense		(5	)		(5	)		(8	)
Gain (Loss) on Indexed Debt Securities		128			(68	)		(31	)
Interest Expense to Subsidiaries		(38	)		(25	)		(26	)
Interest Expense		(162	)		(149	)		(132	)
Total		(65	)		(239	)		(189	)
Loss Before Income Taxes		(76	)		(256	)		(201	)
Income Tax Benefit		32			113			79
Loss Before Equity in Subsidiaries		(44	)		(143	)		(122	)
Equity Income of Subsidiaries		490			515			564
Net Income	$	446		$	372		$	442

See CenterPoint Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements in Part II, Item 8

BALANCE SHEETS

	December 31,
	2009			2010
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	—		$	—
Notes receivable — subsidiaries		493			530
Accounts receivable — subsidiaries		72			59
Other assets		16			68
Total current assets		581			657
Other Assets:
Investment in subsidiaries		5,562			6,115
Notes receivable — subsidiaries		151			151
Other assets		751			723
Total other assets		6,464			6,989
Total Assets	$	7,045		$	7,646
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Notes payable — subsidiaries	$	306		$	900
Current portion of indexed debt		121			126
Current portion of other long-term debt		490			19
Indexed debt securities derivative		201			232
Accounts payable:
Subsidiaries		17			27
Other		40			1
Taxes accrued		416			318
Interest accrued		29			19
Other		1			1
Total current liabilities		1,621			1,643
Other Liabilities:
Accumulated deferred tax liabilities		122			124
Benefit obligations		426			460
Notes payable — subsidiaries		750			750
Other		7			10
Total non-current liabilities		1,305			1,344
Long-Term Debt		1,480			1,461
Shareholders’ Equity:
Common stock		4			4
Additional paid-in capital		3,671			4,100
Accumulated deficit		(912	)		(789	)
Accumulated other comprehensive loss		(124	)		(117	)
Total shareholders’ equity		2,639			3,198
Total Liabilities and Shareholders’ Equity	$	7,045		$	7,646

See CenterPoint Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements in Part II, Item 8

STATEMENTS OF CASH FLOWS

	For the Year Ended December 31,
	2008			2009			2010
	(in millions)
Operating Activities:
Net income	$	446		$	372		$	442
Non-cash items included in net income:
Equity income of subsidiaries		(490	)		(515	)		(564	)
Deferred income tax expense		90			(19	)		(16	)
Amortization of debt issuance costs		7			5			6
Loss (gain) on indexed debt securities		(128	)		68			31
Changes in working capital:
Accounts receivable/(payable) from subsidiaries, net		(65	)		86			78
Accounts payable		—			14			(16	)
Other current assets		2			(16	)		(27	)
Other current liabilities		(111	)		59			(111	)
Common stock dividends received from subsidiaries		746			109			9
Other		(7	)		(1	)		6
Net cash provided by (used in) operating activities		490			162			(162	)
Investing Activities:
Short-term notes receivable from subsidiaries		134			(411	)		(37	)
Net cash provided by (used in) investing activities		134			(411	)		(37	)
Financing Activities:
Revolving credit facility, net		133			(264	)		—
Proceeds from long-term debt		300			—			—
Payments on long-term debt		(907	)		—			(490	)
Debt issuance costs		(4	)		—			(2	)
Common stock dividends paid		(246	)		(276	)		(319	)
Proceeds from issuance of common stock, net		80			504			416
Short-term notes payable to subsidiaries		20			285			594
Net cash provided by (used in) financing activities		(624	)		249			199
Net Decrease in Cash and Cash Equivalents		—			—			—
Cash and Cash Equivalents at Beginning of Year		—			—			—
Cash and Cash Equivalents at End of Year	$	—		$	—		$	—

See CenterPoint Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements in Part II, Item 8

Schedule II - Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2010

Schedule of valuation and qualifying accounts

CENTERPOINT ENERGY, INC.

SCHEDULE II —VALUATION AND QUALIFYING ACCOUNTS

For the Three Years Ended December 31, 2010

Column A	Column B		Column C						Column D			Column E
			Additions
	Balance at Beginning of Period		Charged to Income			Charged to Other Accounts			Deductions From Reserves (2)			Balance at End of Period
Description	(in millions)
Year Ended December 31, 2010:
Accumulated provisions:
Uncollectible accounts receivable	$	24	$	30		$	—		$	29	$	25
Deferred tax asset valuation allowance		5		(2	)		—			—		3
Year Ended December 31, 2009:
Accumulated provisions:
Uncollectible accounts receivable	$	35	$	36		$	—		$	47	$	24
Deferred tax asset valuation allowance		5		—			—			—		5
Year Ended December 31, 2008:
Accumulated provisions:
Uncollectible accounts receivable	$	38	$	54		$	3		$	60	$	35
Deferred tax asset valuation allowance		18		(1	)		(12	) (1)		—		5

(1)

(2)

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Notes To Financial Statements [Abstract]
Minimum ownership interest percentage for investments recorded using the equity method (in hundredths)	20.00%
Maximum ownership interest percentage for investments recorded using the equity method (in hundredths)	50.00%
Percentage of ownership interest in Southeast Supply Header, LLC (in hundredths)	50.00%
Length of Southeast Supply Header's interstate natural gas pipeline (in miles)	274
Percentage of ownership interest in Waskom Gas Processing Company (in hundredths)	50.00%
Investment during the period in Southeast Supply Header, LLC		$ 137
Capital distribution received during the period from Southeast Supply Header, LLC		23
Investment during the period in Waskom	$ 20
Amount of removal costs recognized as a component of depreciation expense recorded as a regulatory liability	868	818
Amount of capitalized interest and allowance for funds used during construction	9	5	$ 12
Allowance for doubtful accounts	25	24
Provision for doubtful accounts	30	36	$ 54
Write-Downs of Natural Gas Inventory to Lower of Cost or Market	6	6
Materials and supplies	164	138
Natural gas	211	189
Total inventory	$ 375	327
Maximum number of months from date of purchase to maturity to be classified as cash equivalent (in months)	3M
Restricted cash accounts	$ 39	34
Amount of cash and cash equivalents that is held by transition and system restoration bond subsidiaries solely to support servicing the transition and system restoration bonds.	$ 198	$ 151

Property, Plant and Equipment and Intangibles (Details) $ in Millions	12 Months Ended
	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Property, Plant and Equipment [Line Items]
Total	$ 16,005	$ 14,770
Total accumulated depreciation and amortization	4,273	3,982
Property, plant and equipment, net	11,732	10,788
Depreciation and amortization [Abstract]
Depreciation expense	531	496	$ 478
Amortization expense	333	247	230
Total depreciation and amortization expense	864	743	708
Revisions in estimates of cash flows	(3)	12
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance	82	63
Accretion expense	5	7
Revisions in estimates of cash flows	(3)	12
Ending balance	84	82	$ 63
Electric Transmission and Distribution [Member]
Property, Plant and Equipment [Line Items]
Total	7,586	7,325
Total accumulated depreciation and amortization	$ 2,805	2,737
Property, plant and equipment, useful life, weighted average (in years)	27
Natural Gas Distribution [Member]
Property, Plant and Equipment [Line Items]
Total	$ 3,642	3,436
Total accumulated depreciation and amortization	$ 954	825
Property, plant and equipment, useful life, weighted average (in years)	31
Competitive Natural Gas Sales and Services [Member]
Property, Plant and Equipment [Line Items]
Total	$ 71	69
Total accumulated depreciation and amortization	$ 16	13
Property, plant and equipment, useful life, weighted average (in years)	26
Interstate Pipelines [Member]
Property, Plant and Equipment [Line Items]
Total	$ 2,594	2,524
Total accumulated depreciation and amortization	$ 265	223
Property, plant and equipment, useful life, weighted average (in years)	58
Field Services Member
Property, Plant and Equipment [Line Items]
Total	$ 1,583	931
Total accumulated depreciation and amortization	$ 43	27
Property, plant and equipment, useful life, weighted average (in years)	46
Other property [Member]
Property, Plant and Equipment [Line Items]
Total	$ 529	485
Total accumulated depreciation and amortization	$ 190	$ 157
Property, plant and equipment, useful life, weighted average (in years)	25

Goodwill (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009
Goodwill Reporting Information [Line Items]
Goodwill	$ 1,696	$ 1,696
Natural Gas Distribution [Member]
Goodwill Reporting Information [Line Items]
Goodwill	746	746
Interstate Pipelines [Member]
Goodwill Reporting Information [Line Items]
Goodwill	579	579
Competitive Natural Gas Sales and Services [Member]
Goodwill Reporting Information [Line Items]
Goodwill	335	335
Field Services [Member]
Goodwill Reporting Information [Line Items]
Goodwill	25	25
Other Operations [Member]
Goodwill Reporting Information [Line Items]
Goodwill	$ 11	$ 11

Regulatory Matters (Details)
$ in Millions

1 Months Ended

6 Months Ended

12 Months Ended

Feb. 28, 2011

USD ($)

Nov. 30, 2010

USD ($)

Oct. 31, 2010

USD ($)

Jun. 30, 2010

USD ($)

Apr. 30, 2010

USD ($)

Feb. 28, 2010

USD ($)

Jan. 31, 2010

USD ($)

Oct. 31, 2009

USD ($)

Jul. 31, 2009

USD ($)

May 31, 2009

USD ($)

Nov. 30, 2008

USD ($)

May 31, 2006

USD ($)

Dec. 31, 2005

USD ($)

Sep. 30, 2005

USD ($)

Jul. 31, 2005

USD ($)

Jun. 30, 2010

USD ($)

Dec. 31, 2010

USD ($)

Dec. 31, 2009

USD ($)

Dec. 31, 2008

USD ($)

Nov. 30, 2009

USD ($)

Aug. 31, 2009

USD ($)

Feb. 28, 2009

USD ($)

Jun. 30, 2008

USD ($)

Mar. 31, 2008

Feb. 28, 2008

USD ($)

Aug. 31, 2006

Aug. 31, 2005

USD ($)

Dec. 31, 2004

USD ($)

Mar. 31, 2004

USD ($)

Schedule of Regulatory Assets and Liabilities [Line Items]

Total regulatory liabilities

^[1]

$ 3,446.0

$ 3,677.0

989.0

921.0

Total regulatory assets and liabilities, net

2,457.0

2,756.0

Amount of pension and postemployment benefits deferred as a regulatory asset

26.0

32.0

Remaining amounts of regulatory assets for which no return on investment during recovery period is provided

58.0

32.0

Initial amount of true-up application

$ 3,700.0

Amount awarded in final true-up order by the Texas Utility Commission

$ 2,300.0

Additional amount allowed by the district court in Travis County, Texas on appeal

$ 650.0

Total amount of initial request that was disallowed by the Texas Utility Commission

$ 1,700.0

Amount of depreciation expenses denied by Texas Utility Commission and affirmed by the Texas Supreme Court

$ 378.0

Number of petitions filed with the Texas Supreme Court by other parties for review

Net after-tax extraordinary loss

$ 947.0

Minimum amount of additional loss reflecting court decisions on true-up amount

190.0

Maximum amount of additional loss reflecting court decisions on true-up amount

440.0

Amount Texas Utility Commission reduced the stranded cost recovery request for the present value of certain deferred tax benefits associated with former electric generation assets

$ 146.0

Amount of transition bonds issued to recover additional true-up costs as allowed by the Texas electric restructuring law

$ 1,850.0

Minimum interest rate on transition bonds (in hundredths)

4.84%

Maximum interest rate on transition bonds (in hundredths)

5.30%

Amount of true-up costs recovered through the issuance of the transition bonds

$ 1,700.0

Amount of competition transition charge allowed by the Texas Utility Commission.

$ 596.0

Length of time over which the competition transition charge is collected (in years)

Annual interest rate on competition transition charge (in hundredths)

11.075%

Amount of rate case expenses allowed to be collected under separate tariff rider

$ 24.0

Number of years the Company can collect rate case expenses (in years)

Total amount collectable under competition transition charge and separate tariff rider

$ 620.0

Reduced interest rate on competition transition charge (in hundredths)

8.06%

Number of areas the district court reversed the competition transition charge order issued by the Texas Utility Commission (in number of areas)

The costs in connection with the panel to determine the valuation of electric generation assets

$ 5.0

The number of parties filing suit in district court contending that the competition transition charge should not be allocated to retail customers (in number of parties)

Number of parties appealed to the court of appeals decision (in number of parties)

Transition bonds

$ 488.0

Transition bonds tranches (in number of tranches)

Interest rate on transition bonds in Tranche 1 (in hundredths)

4.192%

Interest rate on transition bonds in Tranche 2 (in hundredths)

5.234%

Amount of operating income recognized from competition transition charge

$ 5.0

Amount of allowed equity return on the true-up balance that has not been recognized

178.0

Amount of allowed equity return on the true-up balance that was recognized in the period

15.0

$ 13.0

13.0

Total amount of request for recovery of storm costs from Texas Utility Commission under new legislation

$ 678.0

Portion of additional request for recovery of storm costs related to system restoration costs

608.0

Portion of additional request for recovery of storm costs related to regulatory expenses

2.0

Portion of additional request for recovery of storm costs related to debt issuance costs

13.0

Portion of additional request for recovery of storm costs related to carrying costs of debt

$ 55.0

Amount of storm costs Company entitled to recover under settlement agreement

$ 663.0

Amount of settlement agreement attributable to distribution service and eligible for securitization

$ 643.0

Amount of settlement agreement attributable to transmission service and eligible for recovery through existing mechanisms

20.0

Capped amount of up-front costs on the issuance of system restoration bonds

$ 6.0

Face amount of system restoration bonds

$ 665.0

Minimum interest rate on system restoration bonds (in hundredths)

1.833%

Maximum interest rate on system restoration bonds (in hundredths)

4.243%

Beginning balance of Accumulated Deferred Federal Income Taxes related to storm restoration costs

$ 207.0

Amount the Accumulated Deferred Federal Income Taxes Credit will reduce income in period

23.0

604.0

Amount representing return of borrowing costs recognized in the period and included in other income

23.0

The amount of allowance for earnings on shareholders' investment that is deferred and will be recognized through rates as collected

38.0

Recognized amount on allowed equity return for 2009

Less than $1 million

Recognized amount on allowed equity return for 2010

$ 1.0

Amount of increase in retail base rate for delivery charges supported by cost data and other information

$ 106.0

Amount of requested retail base rate increase for delivery charges

$ 92.0

Amount of requested increase to wholesale transmission customers

18.0

Amount of funds from the Department of Energy stimulus grant applied to the costs to complete the advanced metering system

150.0

Total amount of funds from the Department of Energy stimulus grant

$ 200.0

Requested reduction in the duration of the residential AMS surcharge related to the reconciliation plan (in years)

Original term of the residential AMS surcharge (in years)

The rate of return on equity sought by the company (in hundredths)

11.25%

The percentage of the capital structure based on equity (in hundredths)

50.00%

The percentage of the capital structure based on long-term debt (in hundredths)

50.00%

Amount of partial performance bonus approved by the Texas Utility Commission related to 2010 energy efficiency program

$ 8.0

Amount of approved base rate increase per year

$ 14.7

Amount of approved decrease on charges to wholesale transmission customers

$ 12.3

Approved rate of return on equity (in hundredths)

10.00%

Approved cost of debt (in hundredths)

6.74%

Approved percentage of capital structure based on equity (in hundredths)

55.00%

Approved percentage of capital structure based on long-term debt (in hundredths)

45.00%

Approved percentage of overall rate of return (in hundredths)

8.21%

Approved reduction in duration of residential AMS surcharge related to the reconciliation plan (in years)

Amount of 2010 energy efficiency program costs submitted for reimbursement

$ 10.0

Amount of bonus on 2008 energy efficiency program costs disallowed

2.0

Amount of 2008 energy efficiency program costs submitted for reimbursement

$ 10.0

Approximate amount of costs related to various energy efficiency programs

$ 14.4

Amount of partial performance bonus approved by the Texas Utility Commission related to 2011 energy efficiency program

$ 11.0

Portion of requested amount excluded from recovery which relates to performance bonus

2.0

Portion of requested amount excluded from recovery as relates to lost revenues

$ 1.4

Number of cities in Texas Coast service area (in number of cities)

Approximate number of customers in cities and communities on the outskirts of Houston (in number of customers)

230,000

Increase in annual revenues from approved rate increases for gas operations in Texas Coast service area

$ 3.5

Number of cities that contested the new rates in the Texas Coast service area (in number of cities)

Number of cities in Houston service area (in number of cities)

Approximate number of customers in and around Houston (in number of customers)

940,000

Proposed increase in annual revenues from gas operations in Houston service area

$ 20.4

Amount of carrying costs of gas inventory excluded from rate increase

$ 2.0

Amount of approved annual revenue increase in gas operations for the Houston area

$ 5.1

Approved amount of surcharge in gas operations to recover Hurricane Ike costs

$ 0.9

Number of years for the surcharge to recover Hurricane Ike costs (in years)

Number of cities in South Texas service territory (in number of cities)

Approximate number of customers in South Texas service territory (in number of customers)

137,000

Requested increase in base revenues from gas operations in South Texas service territory

$ 6.5

Rate of return on equity sought in South Texas service territory (in hundredths)

11.00%

Percentage of capital structure based on equity related to requested change in rates in South Texas service territory (in hundredths)

56.00%

Percentage of capital structure based on long-term debt related to requested change in rates in South Texas service territory (in hundredths)

44.00%

Requested annual rate increase for utility distribution services filed with the Minnesota Public Utilities Commission

$ 59.8

Approved amount of interim annual rate increase for utility distribution services

$ 51.2

Final approved annual increase for utility distribution approved by the Minnesota Public Utilities Commission

$ 40.8

Overall rate of return from approved rate (in hundredths)

8.09%

Rate of return on equity from approved rate increase (in hundredths)

10.24%

Initial amount of conservation improvement plan annual recovery rate

$ 9.7

Increased amount of conservation improvement plan annual recovery rate

23.2

Approved incentive based on increase to conservation improvement plan

$ 1.4

Southeast Supply Header, LLC [Member]

Schedule of Equity Method Investment [Line Items]

Equity method investment, ownership percentage (in hundredths)

50.00%

Length of the interstate natural gas pipeline (in miles)

274

Pre-tax charges December 31, 2009

$ (16.0)

Tax Benefit

6.0

Securitized regulatory asset

Schedule of Regulatory Assets and Liabilities [Line Items]

Unrecognized equity return

$ 2,597.0

2,886.0

Schedule of Regulatory Assets and Liabilities [Line Items]

Unamortized loss on reacquired debt

(216.0)

(232.0)

Schedule of Regulatory Assets and Liabilities [Line Items]

Pension and postretirement-related regulatory asset

61.0

67.0

Schedule of Regulatory Assets and Liabilities [Line Items]

Other long-term regulatory assets

^[1]

838.0

813.0

Schedule of Regulatory Assets and Liabilities [Line Items]

Estimated removal costs [Member]

166.0

143.0

Schedule of Regulatory Assets and Liabilities [Line Items]

Total regulatory liabilities

868.0

818.0

Other long-term regulatory liabilities [Member]

Schedule of Regulatory Assets and Liabilities [Line Items]

Total regulatory liabilities

$ 121.0

$ 103.0

[1]

CenterPoint Houston's actuarially determined pension expense for 2009 and 2010 in excess of the 2007 base year amount is being deferred for rate making purposes and is being addressed in its current rate application pursuant to Texas law. CenterPoint Houston deferred as a regulatory asset $32 million and $26 million in pension and other postemployment expenses during the years ended December 31, 2009 and 2010, respectively. Deferred pension expense of $32 million and $58 million at December 31, 2009 and 2010, respectively, is not earning a return. Other regulatory assets that are not earning a return were not material at December 31, 2009 and 2010.

Stock-Based Incentive Compensation Plans and Employee Benefit Plans (Details)
$ / shares in Units, $ in Millions

12 Months Ended

Dec. 31, 2010

USD ($)

$ / shares

Dec. 31, 2009

USD ($)

$ / shares

Dec. 31, 2008

USD ($)

$ / shares

Dec. 31, 2010

USD ($)

$ / shares

Dec. 31, 2009

USD ($)

Shares authorized for issuance under long-term incentive plans (in shares) | shares

12,000,000

Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]

Income tax benefit recognized related to LTIPs

$ 6.0

$ 4.0

Actual tax benefit realized for tax deductions related to LTIPs

$ 5.0

$ 6.0

$ 5.0

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period (in years)

three years

Dividends declared during the vesting period (in dollars per share) | $ / shares

$ 2.34

$ 2.28

$ 2.19

Changes in shares outstanding under all long-term incentive plans, additional disclosures [Abstract]

Cash received from options exercised

$ 9.0

$ 4.0

$ 3.0

Weighted average period of recognition (in years)

1.7

Unrecognized compensation cost related to non-vested performance and stock awards

$ 31.0

Total grant date fair values of performance and stock awards which vested during the period

$ 10.0

11.0

8.0

Pension and Postretirement Benefits [Abstract]

New percentage of eligible earnings used to determine retirement benefits (in hundredths)

5.00%

Old percentage of eligible earnings used to determine retirement benefits (in hundredths)

4.00%

Percent vested

100.00%

Pension plan minimum vesting period (in years)

three

Approximate amortization period of transition obligation (in years)

20 years

$ 395.0

Amounts recognized in balance sheets [Abstract]

$ 418.0

395.0

Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract]

$ 906.0

$ 861.0

Accumulated benefit obligation for all defined benefit pension plans

1,954.0

1,864.0

Pension benefits that have accumulated benefit obligations in excess of plan assets [Abstract]

Percentage change in the assumed healthcare cost trend rate (in hundredths)

1.00%

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

Percentage of investment in common collective funds allocated to fixed income securities (in hundredths)

$ 395.0

395.0

$ 418.0

$ 395.0

24.00%

30.00%

Percentage of investment in common collective funds allocated to U.S. equities (in hundredths)

42.00%

31.00%

Percentage of investment in common collective funds allocated to international equities (in hundredths)

34.00%

39.00%

Percentage of investment in mutual funds allocated to fixed income securities (in hundredths)

74.00%

48.00%

Percentage of investment in mutual funds allocated to U.S. equities (in hundredths)

26.00%

52.00%

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

Percentage of investment in mutual funds allocated to fixed income securities under the postretirement plan (in hundredths)

73.00%

65.00%

Percentage of investment in mutual funds allocated to U.S. equity securities under the postretirement plan (in hundredths)

19.00%

26.00%

Percentage of investment in mutual funds allocated to international equity securities under the postretirement plan (in hundredths)

8.00%

9.00%

Savings Plan [Abstract]

Maximum percentage of eligible compensation employees may contribute to the savings plan (in hundredths)

50.00%

Percentage of employer match under the savings plan (in hundredths)

100% of first 6% of each employee's contribution

Number of Common stock held by the savings plan (in shares) | shares

21,012,609

Percentage of investment in common stocks (in hundredths)

22.00%

Savings plan benefit expense

$ 34.0

31.0

39.0

Postemployment Benefits [Abstract]

Postemployment benefit income

1.0

0.0

1.0

Postemployment benefit obligations

$ 25.0

$ 29.0

Other Non-Qualified Plans [Abstract]

Benefit expense related to deferred compensation plans

5.0

6.0

4.0

Other non-qualified plans benefit obligations deferred compensation

78.0

79.0

Cumulative effect of change in accounting principle

$ 15.0

Benefit obligations related to split-dollar life insurance arrangements

$ 21.0

19.0

Maximum number of times annual base salary included in severance benefits for certain officers in a change of control (in number of times)

Length of agreements including severance benefits (in years)

Number of collective bargaining agreements scheduled to expire (in number of collective bargaining agreements)

$ 395.0

418.0

395.0

Cash [Member]

11.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

3.0

11.0

11.0

$ 3.0

11.0

11.0

Common Collective Trust Funds [Member]

3.0

11.0

^[1]

733.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

890.0

^[2]

733.0

^[1]

733.0

^[1]

733.0

^[1]

890.0

^[2]

733.0

^[1]

^[1]

733.0

Corporate bonds rated Investment grade or higher [Member]

890.0

^[2]

733.0

^[1]

193.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

122.0

193.0

193.0

122.0

193.0

193.0

High yield corporate bonds [Member]

122.0

193.0

2.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

2.0

2.0

0.0

2.0

2.0

International equities [Member]

0.0

2.0

162.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

133.0

162.0

162.0

133.0

162.0

162.0

133.0

162.0

U.S. equities [Member]

96.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

131.0

96.0

96.0

131.0

96.0

96.0

Cash received as collateral from securities [Member]

131.0

96.0

114.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

112.0

114.0

114.0

112.0

114.0

114.0

U.S. government back agencies bonds [Member]

112.0

114.0

55.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

34.0

55.0

55.0

34.0

55.0

55.0

34.0

55.0

U.S. treasuries [Member]

50.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

62.0

50.0

50.0

62.0

50.0

50.0

Mortgage backed securities [Member]

62.0

50.0

39.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

8.0

39.0

39.0

8.0

39.0

39.0

Asset backed securities [Member]

8.0

39.0

27.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

10.0

27.0

27.0

10.0

27.0

27.0

10.0

27.0

Municipal bonds [Member]

22.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

28.0

22.0

22.0

28.0

22.0

22.0

28.0

22.0

Mutual funds [Member]

^[3]

21.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

55.0

^[4]

21.0

^[3]

21.0

^[3]

21.0

^[3]

55.0

^[4]

21.0

^[3]

^[3]

21.0

International government bonds [Member]

55.0

^[4]

21.0

^[3]

12.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

17.0

12.0

12.0

17.0

12.0

12.0

17.0

12.0

Real estate [Member]

9.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

8.0

9.0

9.0

8.0

9.0

9.0

Obligation to return cash received as collateral from securities lending[Member]

8.0

9.0

(114.0)

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

(112.0)

(114.0)

(114.0)

$ (112.0)

(114.0)

(114.0)

Changes in shares outstanding under all long-term incentive plans, additional disclosures [Abstract]

$ (112.0)

$ (114.0)

Stock Options [Member]

Number of options outstanding, beginning balance (in shares) | shares

4,513,000

Number of options expired (in shares) | shares

(399,000)

Number of options cancelled (in shares) | shares

(207,000)

Number of options exercised (in shares) | shares

(830,000)

Number of options outstanding, ending balance (in shares) | shares

3,077,000

4,513,000

Number of exercisable options (in shares) | shares

3,077,000

Weighted average exercise price per option, outstanding, beginning of period (in dollars per share) | $ / shares

$ 17.95

Weighted average exercise price per option expired (in dollars per share) | $ / shares

$ 17.25

Weighted average exercise price per option cancelled (in dollars per share) | $ / shares

31.48

Weighted average exercise price per option exercised (in dollars per share) | $ / shares

10.05

Weighted average exercise price per option, outstanding, end of period (in dollars per share) | $ / shares

$ 19.27

$ 17.95

Weighted average exercise price per exercisable option (in dollars per share) | $ / shares

$ 19.27

Remaining average contractual life of options outstanding (in years)

1.3

Remaining average contractual life of exercisable options (in years)

1.3

Aggregate intrinsic value of options outstanding

$ 12.0

Aggregate intrinsic value of exercisable options

$ 12.0

Total intrinsic value of stock options exercised in the period

$ 4.0

$ 2.0

Performance Awards [Member]

Nonvested, beginning of period (in shares) | shares

2,583,000

Granted (in shares) | shares

1,130,000

Forfeited or cancelled (in shares) | shares

(350,000)

Vested and released to participants (in shares) | shares

(295,000)

Nonvested, end of period (in shares) | shares

3,068,000

2,583,000

Weighted average grant date fair value, nonvested, beginning of period (in dollars per share) | $ / shares

$ 14.62

Weighted average grant date fair value, granted (in dollars per share) | $ / shares

14.21

$ 12.42

$ 15.40

Weighted average grant date fair value, forfeited or cancelled (in dollars per share) | $ / shares

17.24

Weighted average grant date fair value, vested and released to participants (in dollars per share) | $ / shares

18.09

Weighted average grant date fair value, nonvested, end of period (in dollars per share) | $ / shares

$ 13.84

$ 14.62

Remaining average contractual life of nonvested shares outstanding (in years)

1.1

Aggregate intrinsic value of non-vested shares outstanding

$ 37.0

Total intrinsic value of awards vested in the period

$ 5.0

$ 7.0

$ 6.0

Weighted average grant date fair values of awards granted (in dollars per share) | $ / shares

$ 14.21

$ 12.42

$ 15.40

Stock Awards [member]

Nonvested, beginning of period (in shares) | shares

951,000

Granted (in shares) | shares

440,000

Forfeited or cancelled (in shares) | shares

(25,000)

Vested and released to participants (in shares) | shares

(270,000)

Nonvested, end of period (in shares) | shares

1,096,000

951,000

Weighted average grant date fair value, nonvested, beginning of period (in dollars per share) | $ / shares

$ 14.36

Weighted average grant date fair value, granted (in dollars per share) | $ / shares

14.26

$ 12.30

$ 15.09

Weighted average grant date fair value, forfeited or cancelled (in dollars per share) | $ / shares

13.38

Weighted average grant date fair value, vested and released to participants (in dollars per share) | $ / shares

16.65

Weighted average grant date fair value, nonvested, end of period (in dollars per share) | $ / shares

$ 13.78

$ 14.36

Remaining average contractual life of nonvested shares outstanding (in years)

1.2

Aggregate intrinsic value of non-vested shares outstanding

$ 17.0

Total intrinsic value of awards vested in the period

$ 4.0

$ 5.0

Weighted average grant date fair values of awards granted (in dollars per share) | $ / shares

$ 14.26

$ 12.30

$ 15.09

Pension Plan [Member]

Components of net periodic costs [Abstract]

$ 31.0

$ 25.0

$ 31.0

Expected return on plan assets

102.0

113.0

101.0

(109.0)

(98.0)

(147.0)

Amortization of prior service cost (credit)

3.0

(8.0)

Amortization of transition obligation

59.0

68.0

23.0

0.0

Assumptions used to determine net periodic benefit (income) cost [Abstract]

0.0

1.0

Net periodic cost

$ 86.0

$ 111.0

$ 1.0

5.70%

6.90%

6.40%

Rate of increase in compensation levels (in hundredths)

8.00%

8.50%

4.60%

Change in benefit obligation [Roll Forward]

Benefit obligation, beginning of year

$ 1,866.0

$ 1,710.0

31.0

25.0

$ 31.0

102.0

113.0

101.0

0.0

(115.0)

(111.0)

Actuarial loss (gain)

85.0

129.0

Medicare reimbursement

0.0

Benefit obligation, end of year

0.0

1.0

1,969.0

1,866.0

1,710.0

1,432.0

1,276.0

8.0

20.0

0.0

(115.0)

(111.0)

Actual investment return

176.0

247.0

Funded status at end of year

$ 1,501.0

$ 1,432.0

1,276.0

Funded status of plan [Abstract]

(468.0)

(434.0)

Amounts recognized in balance sheets [Abstract]

Current liabilities - other

(9.0)

Net liability, end of year

(459.0)

(425.0)

$ (468.0)

$ (434.0)

Actuarial Assumptions [Abstract]

5.25%

5.70%

Rate of increase in compensation levels (in hundredths)

8.00%

4.60%

Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract]

Healthcare cost trend rate assumed for next year (in hundredths)

0.00%

Prescription drug cost trend rate assumed for next year (in hundredths)

0.00%

Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (in hundredths)

0.00%

Year that prescription drug rate reaches the ultimate trend rate

The assumed percentage increase to health care costs next year (in hundredths)

0.00%

The ultimate health care cost trend rate (in hundredths)

0.00%

The assumed percentage increase to prescription drug costs next year (in hundredths)

0.00%

Amounts recognized in accumulated other comprehensive loss [Abstract]

$ 151.0

$ 162.0

Unrecognized transition obligation

15.0

16.0

0.0

Net amount recognized in accumulated other comprehensive loss

166.0

178.0

Changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract]

Net loss (gain)

$ (24.0)

Amortization of prior service credit

13.0

Prior service credit

(2.0)

1.0

Total recognized in comprehensive income

(12.0)

Total expense recognized in net periodic cost and other comprehensive income

74.0

Amounts that will be amortized from accumulated other comprehensive loss in next fiscal year [Abstract]

12.0

Amounts in comprehensive income to be recognized in net periodic cost in next fiscal year

1.0

13.0

Effect of a one-percentage point change in assumed health care cost trend rates [Abstract]

Effect of a one-percentage point increase on total service and interest cost

1.0

Effect of a one-percentage point increase on post-retirement benefit obligation

$ 18.0

Weighted average target allocations [Abstract]

Domestic equity securities, minimum (in hundredths)

25.00%

Domestic equity securities, maximum (in hundredths)

35.00%

Global equity securities, minimum (in hundredths)

7.00%

Global equity securities, maximum (in hundredths)

13.00%

International equity securities, minimum (in hundredths)

17.00%

International equity securities, maximum (in hundredths)

23.00%

Debt securities, minimum (in hundredths)

30.00%

Debt securities, maximum (in hundredths)

40.00%

Real Estate, minimum (in hundredths)

0.00%

Real Estate, maximum (in hundredths)

5.00%

Cash, minimum (in hundredths)

0.00%

Cash, maximum (in hundredths)

2.00%

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

$ 1,432.0

$ 1,276.0

1,276.0

1,501.0

1,432.0

Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]

8.0

20.0

Pension benefit payments 2011

142.0

Pension benefit payments 2012

148.0

Pension benefit payments 2013

149.0

Pension benefit payments 2014

149.0

Pension benefit payments 2015

149.0

Pension benefit payments 2016 -2020

762.0

1,432.0

1,276.0

Pension Plan [Member] | Qualified Pension Plan [Member]

1,501.0

1,432.0

1,276.0

Pension benefits that have accumulated benefit obligations in excess of plan assets [Abstract]

0.0

Accumulated benefit obligation

1,860.0

1,770.0

Projected benefit obligation

1,875.0

1,772.0

Fair value of plan assets

1,501.0

1,432.0

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

Estimated future contributions in the next fiscal year

0.0

35.0

Pension Plan [Member] | Non-qualified Pension Plan [Member]

Pension benefits that have accumulated benefit obligations in excess of plan assets [Abstract]

8.0

20.0

Accumulated benefit obligation

94.0

Projected benefit obligation

94.0

Fair value of plan assets

0.0

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

Estimated future contributions in the next fiscal year

8.0

20.0

9.0

Postretirement Benefits [Member]

Components of net periodic costs [Abstract]

1.0

Expected return on plan assets

25.0

28.0

27.0

(10.0)

(9.0)

(12.0)

Amortization of prior service cost (credit)

3.0

Amortization of transition obligation

0.0

7.0

Assumptions used to determine net periodic benefit (income) cost [Abstract]

0.0

Net periodic cost

$ 26.0

$ 30.0

$ 26.0

5.70%

6.90%

6.40%

Rate of increase in compensation levels (in hundredths)

7.05%

7.60%

0.00%

Change in benefit obligation [Roll Forward]

Benefit obligation, beginning of year

$ 450.0

$ 426.0

1.0

$ 1.0

25.0

28.0

27.0

7.0

6.0

(50.0)

(42.0)

Actuarial loss (gain)

24.0

29.0

Medicare reimbursement

3.0

2.0

Benefit obligation, end of year

0.0

460.0

450.0

426.0

146.0

135.0

29.0

28.0

7.0

6.0

(50.0)

(42.0)

Actual investment return

12.0

19.0

Funded status at end of year

$ 144.0

$ 146.0

135.0

Funded status of plan [Abstract]

(316.0)

(304.0)

Amounts recognized in balance sheets [Abstract]

Current liabilities - other

(9.0)

Net liability, end of year

(307.0)

(295.0)

$ (316.0)

$ (304.0)

Actuarial Assumptions [Abstract]

5.20%

5.70%

Rate of increase in compensation levels (in hundredths)

7.05%

0.00%

Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract]

Healthcare cost trend rate assumed for next year (in hundredths)

8.50%

7.50%

Prescription drug cost trend rate assumed for next year (in hundredths)

8.50%

8.00%

Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (in hundredths)

5.50%

Year that healthcare rate reaches the ultimate trend rate

2017

2014

Year that prescription drug rate reaches the ultimate trend rate

2017

2015

The assumed percentage increase to health care costs next year (in hundredths)

8.50%

7.50%

The ultimate health care cost trend rate (in hundredths)

5.50%

Expected percentage of increase in healthcare costs in 2013 (in hundredths)

9.00%

The assumed percentage increase to prescription drug costs next year (in hundredths)

8.50%

8.00%

Amounts recognized in accumulated other comprehensive loss [Abstract]

$ 18.0

$ 15.0

Unrecognized transition obligation

7.0

9.0

2.0

3.0

Net amount recognized in accumulated other comprehensive loss

27.0

Changes in plan assets and benefit obligations recognized in other comprehensive income [Abstract]

Net loss (gain)

$ 3.0

Amortization of prior service credit

0.0

Prior service credit

(4.0)

2.0

Transition obligation

(1.0)

Total recognized in comprehensive income

0.0

Total expense recognized in net periodic cost and other comprehensive income

26.0

Amounts that will be amortized from accumulated other comprehensive loss in next fiscal year [Abstract]

0.0

Amounts in comprehensive income to be recognized in net periodic cost in next fiscal year

2.0

2.0

Effect of a one-percentage point change in assumed health care cost trend rates [Abstract]

Effect of a one-percentage point decrease on total service and interest cost

1.0

Effect of a one-percentage point decrease on post-retirement benefit obligation

$ 16.0

Weighted average target allocations [Abstract]

Domestic equity securities, minimum (in hundredths)

14.00%

Domestic equity securities, maximum (in hundredths)

24.00%

Global equity securities, minimum (in hundredths)

0.00%

Global equity securities, maximum (in hundredths)

0.00%

International equity securities, minimum (in hundredths)

3.00%

International equity securities, maximum (in hundredths)

13.00%

Debt securities, minimum (in hundredths)

68.00%

Debt securities, maximum (in hundredths)

78.00%

Real Estate, minimum (in hundredths)

0.00%

Real Estate, maximum (in hundredths)

0.00%

Cash, minimum (in hundredths)

0.00%

Cash, maximum (in hundredths)

2.00%

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

$ 146.0

$ 135.0

135.0

144.0

146.0

Estimated future contributions in the next fiscal year

29.0

28.0

18.0

Defined Benefit Plan, Estimated Future Benefit Payments [Abstract]

Postretirement benefit payments 2011

33.0

Postretirement benefit payments 2012

34.0

Postretirement benefit payments 2013

39.0

Postretirement benefit payments 2014

40.0

Postretirement benefit payments 2015

42.0

Postretirement benefit payments 2016 - 2020

225.0

Medicare subsidy receipts - 2011

(4.0)

Medicare subsidy receipts - 2012

(5.0)

Medicare subsidy receipts - 2013

(5.0)

Medicare subsidy receipts - 2014

(6.0)

Medicare subsidy receipts - 2015

(6.0)

Medicare subsidy receipts - 2016 - 2020

(42.0)

146.0

135.0

Postretirement Benefits [Member] | Mutual funds [Member]

144.0

146.0

135.0

146.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

144.0

146.0

144.0

146.0

144.0

146.0

146.0

Fair value, inputs, Level 1 [Member]

144.0

146.0

395.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

418.0

395.0

418.0

395.0

418.0

395.0

395.0

Fair value, inputs, Level 1 [Member] | Cash [Member]

418.0

395.0

11.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

3.0

11.0

11.0

3.0

11.0

11.0

Fair value, inputs, Level 1 [Member] | Common Collective Trust Funds [Member]

3.0

11.0

^[1]

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

^[2]

0.0

^[1]

0.0

^[1]

0.0

^[1]

0.0

^[2]

0.0

^[1]

^[1]

0.0

Fair value, inputs, Level 1 [Member] | Corporate bonds rated Investment grade or higher [Member]

0.0

^[2]

0.0

^[1]

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 1 [Member] | High yield corporate bonds [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 1 [Member] | International equities [Member]

0.0

160.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

133.0

160.0

160.0

133.0

160.0

160.0

Fair value, inputs, Level 1 [Member] | U.S. equities [Member]

133.0

160.0

96.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

131.0

96.0

96.0

131.0

96.0

96.0

Fair value, inputs, Level 1 [Member] | Cash received as collateral from securities [Member]

131.0

96.0

114.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

112.0

114.0

114.0

112.0

114.0

114.0

Fair value, inputs, Level 1 [Member] | U.S. government back agencies bonds [Member]

112.0

114.0

55.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

34.0

55.0

55.0

34.0

55.0

55.0

Fair value, inputs, Level 1 [Member] | U.S. treasuries [Member]

34.0

55.0

50.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

62.0

50.0

50.0

62.0

50.0

50.0

Fair value, inputs, Level 1 [Member] | Mortgage backed securities [Member]

62.0

50.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 1 [Member] | Asset backed securities [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 1 [Member] | Municipal bonds [Member]

0.0

2.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

2.0

2.0

0.0

2.0

2.0

Fair value, inputs, Level 1 [Member] | Mutual funds [Member]

0.0

2.0

^[3]

21.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

55.0

^[4]

21.0

^[3]

21.0

^[3]

21.0

^[3]

55.0

^[4]

21.0

^[3]

^[3]

21.0

Fair value, inputs, Level 1 [Member] | International government bonds [Member]

55.0

^[4]

21.0

^[3]

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 1 [Member] | Real estate [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 1 [Member] | Obligation to return cash received as collateral from securities lending[Member]

0.0

(114.0)

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

(112.0)

(114.0)

(114.0)

(112.0)

(114.0)

(114.0)

Fair value, inputs, Level 1 [Member] | Postretirement Benefits [Member] | Mutual funds [Member]

(112.0)

(114.0)

^[5]

146.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

144.0

^[6]

146.0

^[5]

146.0

^[5]

146.0

^[5]

144.0

^[6]

146.0

^[5]

^[5]

146.0

Fair value, inputs, Level 2 [Member]

144.0

^[6]

146.0

^[5]

1,024.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

1,075.0

1,024.0

1,024.0

1,075.0

1,024.0

1,024.0

Fair value, inputs, Level 2 [Member] | Cash [Member]

1,075.0

1,024.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 2 [Member] | Common Collective Trust Funds [Member]

0.0

^[1]

733.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

890.0

^[2]

733.0

^[1]

733.0

^[1]

733.0

^[1]

890.0

^[2]

733.0

^[1]

^[1]

733.0

Fair value, inputs, Level 2 [Member] | Corporate bonds rated Investment grade or higher [Member]

890.0

^[2]

733.0

^[1]

192.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

122.0

192.0

192.0

122.0

192.0

192.0

Fair value, inputs, Level 2 [Member] | High yield corporate bonds [Member]

122.0

192.0

2.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

2.0

2.0

0.0

2.0

2.0

Fair value, inputs, Level 2 [Member] | International equities [Member]

0.0

2.0

2.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

2.0

2.0

0.0

2.0

2.0

Fair value, inputs, Level 2 [Member] | U.S. equities [Member]

0.0

2.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 2 [Member] | Cash received as collateral from securities [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 2 [Member] | U.S. government back agencies bonds [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 2 [Member] | U.S. treasuries [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 2 [Member] | Mortgage backed securities [Member]

0.0

39.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

8.0

39.0

39.0

8.0

39.0

39.0

Fair value, inputs, Level 2 [Member] | Asset backed securities [Member]

8.0

39.0

24.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

10.0

24.0

24.0

10.0

24.0

24.0

Fair value, inputs, Level 2 [Member] | Municipal bonds [Member]

10.0

24.0

20.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

28.0

20.0

20.0

28.0

20.0

20.0

Fair value, inputs, Level 2 [Member] | Mutual funds [Member]

28.0

20.0

^[3]

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

^[4]

0.0

^[3]

0.0

^[3]

0.0

^[3]

0.0

^[4]

0.0

^[3]

^[3]

0.0

Fair value, inputs, Level 2 [Member] | International government bonds [Member]

0.0

^[4]

0.0

^[3]

12.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

17.0

12.0

12.0

17.0

12.0

12.0

Fair value, inputs, Level 2 [Member] | Real estate [Member]

17.0

12.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 2 [Member] | Obligation to return cash received as collateral from securities lending[Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 2 [Member] | Postretirement Benefits [Member] | Mutual funds [Member]

0.0

^[5]

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

^[6]

0.0

^[5]

0.0

^[6]

0.0

^[5]

0.0

^[6]

0.0

^[5]

^[5]

0.0

Fair value, inputs, Level 3 [Member]

0.0

^[6]

0.0

^[5]

13.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

8.0

13.0

13.0

8.0

13.0

13.0

Fair value, inputs, Level 3 [Member] | Cash [Member]

8.0

13.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | Common Collective Trust Funds [Member]

0.0

^[1]

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

^[2]

0.0

^[1]

0.0

^[1]

0.0

^[1]

0.0

^[2]

0.0

^[1]

^[1]

0.0

Fair value, inputs, Level 3 [Member] | Corporate bonds rated Investment grade or higher [Member]

0.0

^[2]

0.0

^[1]

1.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

1.0

1.0

0.0

1.0

1.0

Fair value, inputs, Level 3 [Member] | High yield corporate bonds [Member]

0.0

1.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | International equities [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | U.S. equities [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | Cash received as collateral from securities [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | U.S. government back agencies bonds [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | U.S. treasuries [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | Mortgage backed securities [Member]

0.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | Asset backed securities [Member]

0.0

3.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

3.0

3.0

0.0

3.0

3.0

Fair value, inputs, Level 3 [Member] | Municipal bonds [Member]

0.0

3.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | Mutual funds [Member]

0.0

^[3]

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

^[4]

0.0

^[3]

0.0

^[3]

0.0

^[3]

0.0

^[4]

0.0

^[3]

^[3]

0.0

Fair value, inputs, Level 3 [Member] | International government bonds [Member]

0.0

^[4]

0.0

^[3]

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | Real estate [Member]

0.0

9.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

8.0

9.0

9.0

8.0

9.0

9.0

Fair value, inputs, Level 3 [Member] | Obligation to return cash received as collateral from securities lending[Member]

8.0

9.0

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

0.0

0.0

Fair value, inputs, Level 3 [Member] | Pension Plan [Member]

0.0

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

Defined Benefit Plan, Fair Value of Plan Assets, Balance beginning of year

13.0

18.0

Defined Benefit Plan, Fair Value of Plan Assets, Balance end of year

8.0

13.0

18.0

Defined Benefit Plan Unrealized Losses Relating To Instruments Still Held At The Reporting Date

(1.0)

(5.0)

Defined Benefit Plan Purchases, Sales, Issuances, And Settlement (Net)

(1.0)

Fair value, inputs, Level 3 [Member] | Pension Plan [Member] | Corporate bonds rated Investment grade or higher [Member]

(3.0)

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

Defined Benefit Plan, Fair Value of Plan Assets, Balance beginning of year

1.0

Defined Benefit Plan, Fair Value of Plan Assets, Balance end of year

0.0

1.0

Defined Benefit Plan Unrealized Losses Relating To Instruments Still Held At The Reporting Date

0.0

Defined Benefit Plan Purchases, Sales, Issuances, And Settlement (Net)

0.0

Fair value, inputs, Level 3 [Member] | Pension Plan [Member] | Asset backed securities [Member]

(1.0)

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

Defined Benefit Plan, Fair Value of Plan Assets, Balance beginning of year

3.0

Defined Benefit Plan, Fair Value of Plan Assets, Balance end of year

0.0

3.0

Defined Benefit Plan Unrealized Losses Relating To Instruments Still Held At The Reporting Date

0.0

Defined Benefit Plan Purchases, Sales, Issuances, And Settlement (Net)

(1.0)

Fair value, inputs, Level 3 [Member] | Pension Plan [Member] | Real estate [Member]

(2.0)

Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]

Defined Benefit Plan, Fair Value of Plan Assets, Balance beginning of year

9.0

14.0

Defined Benefit Plan, Fair Value of Plan Assets, Balance end of year

8.0

9.0

14.0

Defined Benefit Plan Unrealized Losses Relating To Instruments Still Held At The Reporting Date

(1.0)

(5.0)

Defined Benefit Plan Purchases, Sales, Issuances, And Settlement (Net)

0.0

Fair value, inputs, Level 3 [Member] | Postretirement Benefits [Member] | Mutual funds [Member]

0.0

^[5]

0.0

Schedule Of Fair Value Of Financial Assets For Pension And Postretirement Benefits [Line Items]

0.0

^[6]

0.0

^[5]

0.0

^[5]

0.0

^[5]

$ 0.0

^[6]

$ 0.0

^[5]

^[5]

0.0

Workforce Subject to Collective Bargaining Arrangements [Member]

0.0

^[6]

0.0

^[5]

Concentration Risk, Percentage (in hundredths)

30.00%

Workforce Subject to Collective Bargaining Arrangements Expiring within One Year [Member]

Concentration Risk, Percentage (in hundredths)

7.00%

Operation and maintenance expense [Member]

Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]

LTIP compensation expense

$ 17.0

$ 15.0

$ 10.0

[1]	30% of the amount invested in common collective trust funds is in fixed income securities, 31% is in U.S. equities and 39% is in international equities.
[2]	24% of the amount invested in common collective trust funds is in fixed income securities, 42% is in U.S. equities and 34% is in international equities.
[3]	48% of the amount invested in mutual funds is in fixed income securities and 52 % is in U.S. equities.
[4]	74% of the amount invested in mutual funds is in fixed income securities and 26% is in U.S. equities.
[5]	65% of the amount invested in mutual funds is in fixed income securities, 26% is in U.S. equities and 9% is in international equities.
[6]	73% of the amount invested in mutual funds is in fixed income securities, 19% is in U.S. equities and 8% is in international equities.

Derivative Instruments (Details)
$ in Millions

12 Months Ended

Dec. 31, 2010

USD ($)

Dec. 31, 2009

USD ($)

Dec. 31, 2008

USD ($)

Increased (decreased) natural gas revenues from the unrealized net gains (losses) of derivative instruments

$ 18

$ (80)

$ 101

Increased (decreased) natural gas expense from the unrealized net (gains) losses of derivative instruments

(57)

Net unrealized gain (loss) from derivative instruments

$ 4

$ (23)

$ 13

Term of normal weather used as the basis for weather hedges (in years)

Losses recognized from weather hedges

$ 6

$ 7

$ 17

^[1],[2]

^[3],[4]

Derivative gross volumes (Bcf)

$ (411)

^[1],[2]

$ (418)

^[3],[4]

626

674

Net long position (Bcf)

152

Amount of net long position constituted by basis swaps

Amount of net long position comprised of price stabilization activities of the Natural Gas Distribution business segment

Total non-trading derivative assets and liabilities net of collateral

$ 15

$ 39

Collateral netting

Derivative Instruments, Gain (Loss) [Line Items]

Unrealized gains and losses in the Statements of Consolidated Income

(106)

(221)

Total fair value of the derivative instruments that contain credit risk contingent features that are in a net liability position

107

140

The aggregate fair value of assets already posted as collateral

Credit Risk Contingent Features assets

^[5]

Interest rate on debt issuance (in hundredths)

3.75%

Current Liabilities [Member]

^[1],[2]

^[3],[4]

Natural gas contracts [Member] | Current Assets [Member]

(232)

^[1],[2]

(201)

^[3],[4]

^[6]

^[1],[2]

^[3],[4]

Natural gas contracts [Member] | Other Assets [Member]

^[6]

(1)

^[1],[2]

(7)

^[3],[4]

^[6]

^[1],[2]

^[3],[4]

Natural gas contracts [Member] | Current Liabilities [Member]

^[6]

^[1],[2]

(1)

^[3],[4]

^[6]

^[1],[2]

^[3],[4]

Natural gas contracts [Member] | Other Liabilities [Member]

^[6]

(143)

^[1],[2]

(123)

^[3],[4]

^[6]

^[1],[2]

^[3],[4]

Energy marketers [Member]

^[6]

(35)

^[1],[2]

(86)

^[3],[4]

^[5]

Financial institutions [Member]

^[5]

Retail end users (2) [Member]

^[5],[7]

^[7]

$ 60

$ 44

[1]	The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 626 Bcf or a net 72 Bcf long position. Of the net long position, basis swaps constitute 63 Bcf and volumes associated with price stabilization activities of the Natural Gas Distribution business segment comprise 26 Bcf.
[2]	The net of total non-trading derivative assets and liabilities is a $15 million liability as shown on CenterPoint Energy's Consolidated Balance Sheets, and is comprised of the natural gas contracts derivative assets and liabilities separately shown above offset by collateral netting of $84 million.
[3]	The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 674 billion cubic feet (Bcf) or a net 152 Bcf long position. Of the net long position, basis swaps constitute 71 Bcf and volumes associated with price stabilization activities of the Natural Gas Distribution business segment comprise 51 Bcf.
[4]	The net of total non-trading derivative assets and liabilities is a $39 million liability as shown on CenterPoint Energy's Consolidated Balance Sheets, and is comprised of the natural gas contracts derivative assets and liabilities separately shown above offset by collateral netting of $95 million.
[5]	"Investment grade" is primarily determined using publicly available credit ratings and considering credit support (such as parent company guaranties) and collateral, which encompass cash and standby letters of credit. For unrated counterparties, CenterPoint Energy determines a synthetic credit rating by performing financial statement analysis and considering contractual rights and restrictions and collateral.
[6]	Natural gas contracts are subject to master netting arrangements and are presented on a net basis in the Consolidated Balance Sheets. This netting causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Consolidated Balance Sheets.
[7]	Retail end users represent customers who have contracted to fix the price of a portion of their physical gas requirements for future periods.

Fair Value Measurements (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Dec. 31, 2007

$ 368

$ 301

491

396

232

201

$ 133

$ 261

Cash collateral posted with counterparties

316

294

$ 84

Purchases, sales and other settlements, net [Abstract]

Zero Premium Exchangeable Subordinated Notes Interest Rate Stated Percentage

2.00%

Zero Premium Exchangeable Subordinated Notes Maturity Date

2029

Carrying amount [Member]

Long-term debt

$ 9,303

9,900

Fair value [Member]

Derivative Financial Instruments, Assets and Liabilities, Net [Member]

Long-term debt

10,071

10,413

Fair value measurement using significant unobservable input (level 3) reconciliation [Roll Forward]

Beginning balance

(6)

(58)

(3)

Total unrealized gains or losses [Abstract]

Included in earnings

(1)

(11)

Included in regulatory assets

(1)

(16)

(10)

Purchases, sales and other settlements, net [Abstract]

Included in earnings (purchases, sales and other settlements, net)

(2)

Included in regulatory assets (purchases, sales and other settlements, net)

(41)

Net transfers into level 3

Ending balance

(6)

(58)

Amount of total gains for the period included in earnings

$ 7

Quoted prices in active markets for identical assets (Level 1) [Member]

368

301

422

343

Significant other observable inputs (Level 2) [Member]

232

201

167

194

Significant unobservable inputs (Level 3) [Member]

399

395

Netting Adjustments [Member]

^[1]

^[2]

^[1]

^[2]

(11)

^[1]

(29)

^[2]

(11)

^[1]

(29)

^[2]

^[1]

^[2]

(95)

^[1]

(124)

^[2]

Total short term borrowings

$ (95)

^[1]

$ (124)

^[2]

[1]	Amounts represent the impact of legally enforceable master netting agreements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $84 million posted with the same counterparties.
[2]	Amounts represent the impact of legally enforceable master netting agreements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $95 million posted with the same counterparties.

Indexed Debt Securities (ZENS) and Time Warner Securities (Details)	12 Months Ended
	Dec. 31, 2010 USD ($) shares	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Zero Premium Exchangeable Subordinated Notes [Abstract]
Issuance date of CenterPoint Energy Zero Premium Exchangeable Subordinated Notes	September 1999
Interest rate of CenterPoint Energy Zero Premium Exchangeable Subordinated Notes (in hundredths)	2.00%
Due date of CenterPoint Energy Zero Premium Exchangeable Subordinated Notes	2029
Original principal amount of Zero Premium Exchangeable Subordinated Notes issued by CenterPoint Energy in September 1999	$ 1,000,000,000
Outstanding amount of Zero Premium Exchangeable Subordinated Notes issued by CenterpPoint Energy in September 1999	$ 840,000,000
Percentage of market value of referenced shares of Time Warner Common each zero premium exchangeable subordinated note could be exchanged for cash (in hundredths)	95.00%
Referenced common shares [Line Items]
Stated interest rate of CenterPoint Energy Zero Premium Exchangeable Subordinated Notes (in hundredths)	2.00%
Target annual yield from interest and cash dividends on referenced shares before principal amount of indexed debt securities is increased or decreased (in hundredths)	2.309%
Outstanding amount of indexed debt securities issued by CenterPoint Energy in September 1999	$ 840,000,000
Contingent principal amount of indexed debt securities issued by CenterpPoint Energy in September 1999 and outstanding and exchangeable	$ 805,000,000
Percentage of market value of referenced shares of Time Warner Common each original indexed security note could be exchanged for cash (in hundredths)	95.00%
The market value of referenced shares of TW Common, TWC Common and AOL common for each indexed debt security	$ 367,000,000
The cash exchange amount from referenced shares per $1,000 face amount of individual notes	415
Face amount of each indexed debt security notes issued by CenterPoint Energy in September 1999	$ 1,000
Due date of CenterPoint Energy Zero Premium Exchangeable Subordinated Notes	2029
The accretion rate for interest charges on bifurcated debt component of indexed debt securities (in hundredths)	17.40%
TW Securities [Abstract]
TW Securities	$ 300,000,000	$ 218,000,000	$ 357,000,000
Gain (loss) on TW Securities	67,000,000	82,000,000	(139,000,000)
TW Securities	367,000,000	300,000,000	218,000,000
Debt component of ZENS [Abstract]
Debt Component of ZENS	121,000,000	117,000,000	114,000,000
Accretion of debt component of ZENS	22,000,000	21,000,000	20,000,000
2 % interest paid	(17,000,000)	(17,000,000)	(17,000,000)
Debt Component of ZENS	126,000,000	121,000,000	117,000,000
Derivative component of ZENS [Abstract]
Derivative Component of ZENS	201,000,000	133,000,000	261,000,000
Loss (gain) on indexed debt securities	31,000,000	68,000,000	(128,000,000)
Derivative Component of ZENS	$ 232,000,000	$ 201,000,000	$ 133,000,000
TW Common [Member]
Schedule of Trading Securities [Line Items]
Number of shares of common stock held by subsidiary of CenterPoint Energy (in shares) \| shares	7,200,000
TWC Common [Member]
Schedule of Trading Securities [Line Items]
Number of shares of common stock held by subsidiary of CenterPoint Energy (in shares) \| shares	1,800,000
AOL Common [Member]
Schedule of Trading Securities [Line Items]
Number of shares of common stock held by subsidiary of CenterPoint Energy (in shares) \| shares	700,000
TW Common [Member]
Referenced common shares [Line Items]
The referenced shares of common stock for each zero premium exchangeable subordinated note (in shares) \| shares	0.5
TWC Common [Member]
Referenced common shares [Line Items]
The referenced shares of common stock for each zero premium exchangeable subordinated note (in shares) \| shares	0.125505
AOL Common [Member]
Referenced common shares [Line Items]
The referenced shares of common stock for each zero premium exchangeable subordinated note (in shares) \| shares	0.045455

Equity (Details) $ / shares in Units, $ in Thousands	12 Months Ended
Equity (Details) $ / shares in Units, $ in Thousands	Dec. 31, 2010 USD ($) $ / shares shares	Dec. 31, 2009 USD ($) $ / shares shares	Dec. 31, 2008 USD ($) $ / shares shares
Notes To Financial Statements [Abstract]
Capital stock shares authorized (in shares)	1,020,000,000
Common stock shares authorized (in shares)	1,000,000,000	1,000,000,000	1,000,000,000
Common stock shares par value (in dollars per share) \| $ / shares	$ 0.01	$ 0.01	$ 0.01
Cumulative preferred stock shares authorized (in shares)	20,000,000	20,000,000	20,000,000
Cumulative preferred stock par value (in dollars per share) \| $ / shares	$ 0.01	$ 0.01	$ 0.01
Stock Issuance [Line Items]
Net proceeds received from stock issuance or sale \| $	$ 416,000	$ 504,000	$ 80,000
Number of preference stock purchase rights included with every share of common stock (in shares)	1
Series A Preference Stock share available for purchase per common share held (in shares)	0.001
Expiration date of Series A Preference Stock rights	Dec. 11, 2011
Minimum percentage of CenterPoint common stock that must be acquired for Rights to be exercised	0.20 or more
Number of times the current market price exceeds the exercise price of the Right	2
Repurchase price per Right \| $	$ 0
Series A Preference Stock shares reserved for issuance upon exercise of the Rights (in shares)	700,000
Public Offering [Member]
Stock Issuance [Line Items]
Net proceeds received from stock issuance or sale \| $	$ 315,000
Common shares issued during the year (in shares)	25,300,000.0
Defined Contribution Plan [Member]
Stock Issuance [Line Items]
Net proceeds received from stock issuance or sale \| $	$ 79,000
Common shares issued during the year (in shares)	5,400,000.0
Dividend Reinvestment Plan [Member]
Stock Issuance [Line Items]
Net proceeds received from stock issuance or sale \| $	$ 15,000
Common shares issued during the year (in shares)	1,000,000

Short Term Borrowings and Long Term Debt (Details)
$ in Millions

1 Months Ended

12 Months Ended

Jan. 31, 2011

USD ($)

Dec. 31, 2010

USD ($)

Dec. 31, 2009

USD ($)

Dec. 31, 2008

Short term debt [Line Items]

^[1]

$ 53.0

$ 55.0

9,001.0

9,119.0

Debt Instrument, Interest Rate, Stated Percentage (in hundredths)

^[1]

428.0

903.0

3.75%

Annual maturities of long term debt, capital leases, and sinking fund requirements, excluding ZENS obligations [Abstract]

302.0

536.0

1,100.0

1,200.0

669.0

Transition and system restoration bond annual principal repayments included in annual maturities of long term debt [Abstract]

283.0

307.0

330.0

235.0

249.0

Replacement fund requirements to be satisfied in 2011

180.0

Sinking fund requirements to be satisfied in 2011

3.0

Short Term Borrowings And Current Portion Long Term Debt

^[1]

$ 481.0

958.0

Bank loans due 2012 [Member]

Percentage on limitation of debt to total capitalization under covenant (in hundredths)

65.00%

Commercial paper [Member]

$ 183.0

^[2]

0.0

Other long term debt [Member]

0.0

1.0

Unamortized discount and premium [Member]

0.0

(8.0)

(9.0)

CERC Corp. receivables facility [Member]

0.0

Short term debt [Line Items]

Total short term borrowings

0.0

Receivables facility range, minimum

160.0

Receivables facility range, maximum

375.0

Receivable facility maximum advance capacity

160.0

150.0

Inventory financing [Member]

Short term debt [Line Items]

Total short term borrowings

^[1]

53.0

55.0

CenterPoint Energy [Member]

1,461.0

1,480.0

CenterPoint Energy [Member] | ZENS [Member]

1,200.0

0.0

CenterPoint Energy [Member] | Senior notes due 2015 to 2018 [Member]

^[1],[3]

126.0

121.0

750.0

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum (in hundredths)

$ 0.0

200.0

^[1]

0.059500000000000

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum (in hundredths)

0.0685000000000

CenterPoint Energy [Member] | Pollution control bonds due 2015 [Member]

^[4]

$ 151.0

151.0

Debt Instrument, Interest Rate, Stated Percentage (in hundredths)

$ 0.0

0.0

4.00%

CenterPoint Energy [Member] | Pollution control bonds due 2011 to 2030 [Member]

^[5]

$ 562.0

581.0

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum (in hundredths)

^[5]

$ 19.0

$ 290.0

^[5]

0.047000000000000

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum (in hundredths)

^[5]

0.05950000000000

Amount of debt secured by general mortgage bonds

^[5]

237,000,000

527,000,000

Extinguishment of debt, principal amount

^[1]

$ 290.0

Extinguishment of debt, purchase price percentage of principal (in hundredths)

^[5]

101.00%

Prior to bond purchase, fixed interest rate (in hundredths)

^[5]

5.125%

CenterPoint Energy [Member] | Bank loans due 2012 [Member]

$ 0.0

Amount of outstanding letters of credit

0.0

20.0

25.0

Revolving credit facility borrowing rate

$ 1,200.0

Libor + .0055

Debt to EBITDA covenant ratio, before amendment

5.0

Debt to EBITDA covenant ratio, amendment

5.5

System restoration costs threshold for increase in permitted debt to EBITDA covenant ratio

$ 100.0

Percentage of utilization of credit facility

more than 0.5

Utilization fee on borrowings exceeding fifty percent of total credit facility (in hundredths)

0.0005

CenterPoint Energy [Member] | Other long term debt [Member]

$ 0.0

0.0

CenterPoint Houston [Member] | Bank loans due 2012 [Member]

0.0

7.0

^[1]

0.0

Amount of outstanding letters of credit

0.0

4.0

Revolving credit facility borrowing rate

$ 289.0

Libor +.0045

Percentage on limitation of debt to total capitalization under covenant (in hundredths)

65.00%

Percentage of utilization of credit facility

more than 0.5

Utilization fee on borrowings exceeding fifty percent of total credit facility (in hundredths)

0.000500000000

CenterPoint Houston [Member] | First mortgage bonds due 2021 [Member]

$ 102.0

102.0

Debt Instrument, Interest Rate, Stated Percentage (in hundredths)

$ 0.0

0.0

9.15%

Secured debt amount with asset liens

$ 253.0

CenterPoint Houston [Member] | General mortgage bonds due 2013 to 2033 [Member]

1,762.0

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum (in hundredths)

$ 0.0

0.0

0.05600000000000

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum (in hundredths)

0.070000000000000

Secured debt amount with asset liens

$ 2,500.0

CenterPoint Houston [Member] | Pollution control bonds due 2012 to 2027 [Member]

^[6]

229.0

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum (in hundredths)

$ 0.0

0.0

0.036250000000000

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum (in hundredths)

0.05600000000000

CenterPoint Houston [Member] | System restoration bonds due 2011 to 2022 [Member]

$ 601.0

645.0

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum (in hundredths)

^[1]

$ 43.0

20.0

0.01833000000000

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum (in hundredths)

0.0424300000000

CenterPoint Houston [Member] | Transition Bonds due 2011 to 2020 [Member]

$ 1,921.0

2,160.0

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum (in hundredths)

^[1]

$ 240.0

221.0

0.04192000000000

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum (in hundredths)

0.056300000000000

CERC Corp [Member] | Senior notes issued, due 2021 (CERC Corp senior notes) [Member]

Debt Instrument, Interest Rate, Stated Percentage (in hundredths)

4.50%

Amount of senior notes not reflected in current portion of long-term debt (CERC Corporation senior notes)

$ 250.0

CERC Corp [Member] | Senior notes issued, due 2041 (CERC Corp senior notes) [Member]

Debt Instrument, Interest Rate, Stated Percentage (in hundredths)

5.85%

Amount of senior notes not reflected in current portion of long-term debt (CERC Corporation senior notes)

$ 300.0

CERC Corp [Member] | Senior notes issued, due 2021 (CERC exchange offer) [Member]

Debt Instrument, Interest Rate, Stated Percentage (in hundredths)

4.50%

Unamortized debt issuance cost

$ 58.0

Amount of cash consideration provided related to CERC exchange offer

114.0

Amount of senior notes not reflected in current portion of long-term debt (CERC Corporation senior notes)

$ 343.0

CERC Corp [Member] | Bank loans due 2012 [Member]

$ 0.0

0.0

0.0

Revolving credit facility borrowing rate

$ 915.0

Libor +.0045

Percentage on limitation of debt to total capitalization under covenant (in hundredths)

65.00%

Percentage of utilization of credit facility

more than 0.5

Utilization fee on borrowings exceeding fifty percent of total credit facility (in hundredths)

0.000500000000

CERC Corp [Member] | Convertible subordinated debentures due 2012 [Member]

$ 0.0

0.0

Debt Instrument, Interest Rate, Stated Percentage (in hundredths)

$ 0.0

44.0

^[1]

6.00%

Extinguishment of debt, principal amount

$ 45.0

Extinguishment of debt, purchase price percentage of principal (in hundredths)

100.00%

CERC Corp [Member] | Senior notes 2013 to 2037 [Member]

^[7]

$ 2,747.0

2,747.0

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum (in hundredths)

^[7]

$ 0.0

0.05950

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum (in hundredths)

0.07875

CERC Corp [Member] | Senior notes 2013 to 2037 [Member] | Exchanged senior debt, due 2013 [Member]

Debt Instrument, Interest Rate, Stated Percentage (in hundredths)

7.875%

Extinguishment of debt, principal amount

$ 397.0

[1]	Includes amounts due or exchangeable within one year of the date noted.
[2]	Classified as long-term debt because the termination date of the facility that backstops the commercial paper is more than one year from the date noted.
[3]	CenterPoint Energy's ZENS obligation is bifurcated into a debt component and an embedded derivative component. For additional information regarding ZENS, see Note 9(b). As ZENS are exchangeable for cash at any time at the option of the holders, these notes are classified as a current portion of long-term debt.
[4]	These series of debt are secured by first mortgage bonds of CenterPoint Houston.
[5]	$527 million and $237 million of these series of debt is secured by general mortgage bonds of CenterPoint Houstonat December 31, 2009 and 2010, respectively.
[6]	These series of debt are secured by general mortgage bonds of CenterPoint Houston.
[7]	$550 million senior notes due February 2011 are not reflected in the current portion of long-term debt as of December 31, 2010 because the notes were refinanced in january 2011.

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Current income tax expense (benefit): [Abstract]
Federal	$ 40	$ (103)	$ (221)
State	24	10	11
Total current expense (benefit)	64	(93)	(210)
Deferred income tax expense (benefit): [Abstract]
Federal	220	251	437
State	(21)	18	50
Total deferred expense	199	269	487
Total income tax expense	263	176	277
Income tax reconciliation [Abstract]
Income before income taxes	$ 705	$ 548	$ 723
Federal statutory income tax rate (in hundredths)	35.00%	35.00%	35.00%
Expected federal income tax expense	$ 247	$ 192	$ 253
Increase (decrease) in tax expense resulting from: [Abstract]
State income tax expense	2	18	40
Amortization of investment tax credit	(7)	(7)	(7)
Tax law change in deductibility of retiree health care costs	20	0	0
Increase (decrease) in settled and uncertain income tax positions	14	(5)	8
Other, net	(13)	(22)	(17)
Total	16	(16)	24
Total income tax expense	$ 263	$ 176	$ 277
Effective tax rate (in hundredths)	37.30%	32.10%	38.40%
Amount of non-cash recorded to income tax expense as result of change in tax law	$ 21
Amount of reduction to deferred tax assets due to actuarially determined net present value of lost future health care deductions				$ 32
Amount of adjustment to regulatory assets due to actuarially determined net present value of lost future health care deductions				11
Amount of reduction to deferred tax assets, recorded to income tax expense, due to actuarially determined net present value of lost future health care deductions	21
Amount of decrease in income tax expense recorded related to effects of re-measuring accumulated deferred income taxes	24
Amount of net reduction to income tax expense from state income tax expense, net of federal income tax	29
Increase in income tax expense related to uncertain tax positions	5
Income tax benefit resulting from IRS settlement		$ (11)
Reduction in the liability for uncertain tax positions		41
State income tax expense	$ 2	18	$ 40
Benefit net of federal income tax effect related to state income tax adjustments		12
Current: [Abstract]
Allowance for doubtful accounts				11	$ 10
Deferred gas costs				32	7
Other				21	0
Total current deferred tax assets				64	17
Non-current: [Abstract]
Loss and credit carryforwards				49	42
Employee benefits				346	366
Other				48	51
Total non-current deferred tax assets before valuation allowance				443	459
Valuation allowance				(3)	(5)
Total non-current deferred tax assets, net of valuation allowance				440	454
Total deferred tax assets, net of valuation allowance				504	471
Current: [Abstract]
Unrealized gain on indexed debt securities				391	366
Unrealized gain on marketable securities				80	57
Total current deferred tax liabilities				471	423
Non-current: [Abstract]
Depreciation				2,086	1,887
Regulatory assets, net				1,256	1,298
Other				32	45
Total non-current deferred tax liabilities				3,374	3,230
Total deferred tax liabilities				3,845	3,653
Accumulated deferred income taxes, net				3,341	3,182
State net operating loss carryforwards				312
Range of years where state net operating loss carryforwards expire.	2011 and 2030
Valuation allowance of state net operating loss carryforwards				4
State capital loss carryforwards				244
Expiration date of state capital loss carryforwards	2017
Balance, beginning of year	$ 187	117	82
Tax Positions related to prior years: [Abstract]
Additions	9	56	20
Reductions	(4)	(25)	(2)
Tax Positions related to current year: [Abstract]
Additions	60	56	17
Settlements	0	(17)	0
Balance, end of year	187	117	82	252	187	$ 117
Range of change possible in unrecognized tax benefits over the next 12 months, minimum				224
Range of change possible in unrecognized tax benefits over the next 12 months, maximum				15
Unrecognized tax benefits that, if recognized, would reduce the effective income tax rate for the year				17	10	$ 14
Income tax expense (benefit) recognized in interest on uncertain income tax positions during the year	$ 8	$ (7)	$ 6
Accrued interest on uncertain income tax positions at the end of the year				12	$ 3
Amount of Internal Revenue Service disallowance of casualty loss				603
Amount of estimated liability included in taxes receivable associated with increase in income taxes				31
Amount of indemnification receivable				$ 27

Commitments and Contingencies (Details)	12 Months Ended
Commitments and Contingencies (Details)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)
Operating Leases, Future Minimum Payments Due [Abstract]
2011	$ 15,000,000
2012	12,000,000
2013	7,000,000
2014	6,000,000
2015	4,000,000
2016 and beyond	15,000,000
Total	59,000,000
Total lease expense for all operating leases	$ 77,000,000	$ 37,000,000	$ 46,000,000
Legal Environmental And Other Regulatory Matters Legal Matters Gas Market Manipulation Cases Abstract
Recovery of compensatory damages sought by plaintiffs	in excess of 1 billion
Approximate number of gas market manipulation lawsuits naming CenterPoint and/or Reliant Energy (in number of lawsuits)	30
Number of gas market manipulation lawsuits pending for CenterPoint and its affiliates (in number of lawsuits)	2
Number of gas market mismeasurement lawsuits pending for CenterPoint and its affiliates (in number of lawsuits)	2
Approximate number of pipeline companies named in the mismeasurement lawsuits (in number of companies)	245
Number of gas measurement lawsuits seeking class certification and has four amendments (in number of cases)	1
Number of times gas measurement lawsuit was amended (in number of amendments)	4
Number of years the plaintiffs claim the defendants have engaged in the systematic mismeasurement of natural gas (in years)	25
Number of CenterPoint subsidiaries dismissed from the claims of the plaintiff (in number of claims)	2
Number of sites where remediation is complete, other than ongoing operations (in number of sites)	2
Number of remaining sites in the Minnesota service territory (in number of sites)	5
Number of the remaining sites in the Minnesota service territory where the company believes it has no liability (in number of sites)	2
Amount accrued for remediation of Minnesota sites (in number of sites)	$ 14,000,000
Minimum estimated remediation costs for the Minnesota sites	4,000,000
Maximum estimated remediation costs for the Minnesota sites	$ 35,000,000
Minimum years of remediation for the Minnesota sites (in years)	30
Maximum years of remediation for the Minnesota sites (in years)	50
Annual amount included in rates to fund normal on-going remediation costs	$ 285,000
Amount collected from insurance companies to be used for future environmental remediation	$ 5,200,000
Number of Louisiana leases in which the company's predecessor held an interest (in number of leases)	2
Approximate amount of undiscounted demand charges under the transportation contracts	$ 112,000,000
Approximate amount of collateral posted as security on transportation contracts	$ 7,000,000
Magnolia Gathering System [Member]
Schedule of capital expansion projects [Line Items]
Expanded natural gas capacity per day (in million cubic feet)	700
Amount spent on original project scope for expansion	$ 310,000,000
Years lapsed under volume commitment (in number of years)	2
Years of volume commitment (in number of years)	10
Additional natural gas capacity per day under the expansion election (in million cubic feet)	200
Total capacity per day of system after expansion (in million cubic feet)	900
Approximate amount spent on additional expansion	$ 47,000,000
Total costs of additional expansion	$ 52,000,000
Potential additional natural gas capacity per day under potential additional expansion election (in million cubic feet)	800
Total capacity per day of system after potential additional expansion (in billion cubic feet)	1.700000
Total costs of potential additional expansion	$ 240,000,000
Olympia Gathering System [Member]
Schedule of capital expansion projects [Line Items]
Expanded natural gas capacity per day (in million cubic feet)	600
Amount spent on original project scope for expansion	$ 340,000,000
Years lapsed under volume commitment (in number of years)	1
Years of volume commitment (in number of years)	10
Estimated remaining costs to complete expansion	$ 85,000,000
Potential additional natural gas capacity per day under potential additional expansion election (in million cubic feet)	520
Total capacity per day of system after potential additional expansion (in billion cubic feet)	1.100000
Total costs of potential additional expansion	$ 200,000,000
Natural Gas supply commitments [Member]
Recorded unconditional purchase obligation [Line Items]
2011	502,000,000
2012	496,000,000
2013	437,000,000
2014	312,000,000
2015	193,000,000
After 2015	453,000,000
Software licenses [Member]
Recorded unconditional purchase obligation [Line Items]
2011	6,000,000
2012	6,000,000
2013	$ 6,000,000

Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2010

^[1]

Sep. 30, 2010

Jun. 30, 2010

Mar. 31, 2010

^[2]

Dec. 31, 2009

Sep. 30, 2009

Jun. 30, 2009

Mar. 31, 2009

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Basic earnings per share calculation: [Abstract]

Weighted average shares outstanding (in shares)

$ 124

$ 123

$ 81

$ 114

$ 105

$ 114

$ 86

$ 67

$ 442

$ 372

$ 446

409,721,000

365,229,000

336,387,000

Basic Earnings Per Share (in dollars per share)

$ 0.29

^[3]

$ 0.29

^[3]

$ 0.20

^[3]

$ 0.29

^[3]

$ 0.27

^[3]

$ 0.31

^[3]

$ 0.24

^[3]

$ 0.19

^[3]

$ 1.08

$ 1.02

$ 1.32

Diluted earnings per share calculation: [Abstract]

Weighted average shares outstanding (in shares)

$ 124

$ 123

$ 81

$ 114

$ 105

$ 114

$ 86

$ 67

$ 442

$ 372

$ 446

409,721,000

365,229,000

336,387,000

Plus Incremental shares from assumed conversions: [Abstract]

Stock options (in shares)

470,000

451,000

760,000

Restricted stock (in shares)

2,585,000

2,001,000

1,772,000

3.75% convertible senior notes (in shares)

4,636,000

Weighted Average Number of Shares Outstanding, Diluted (in shares)

412,776,000

367,681,000

343,555,000

Diluted earnings per share (in dollars per share)

$ 0.29

^[3]

$ 0.29

^[3]

$ 0.20

^[3]

$ 0.29

^[3]

$ 0.27

^[3]

$ 0.31

^[3]

$ 0.24

^[3]

$ 0.19

^[3]

$ 1.07

$ 1.01

$ 1.30

Outstanding shares with the options to purchase not included in the computation of diluted earnings per share (in shares)

1,458,598

2,372,132

2,617,772

Interest rate on convertible senior notes (in hundredths)

3.75%

Date which Centerpoint redeemed its 3.75% convertible senior notes

May 30, 2008

[1]	During the fourth quarter of 2010, CenterPoint Energy recorded a $21 million gain on the sale of non-strategic gathering assets by its Field Services business segment. CenterPoint Energy also recorded a $24 million decrease in income tax expense related to the effects of re-measuring accumulated deferred income taxes associated with the restructuring of certain subsidiaries.
[2]	During the first quarter of 2010, CenterPoint Energy recorded a $21 million charge to income tax expense as a result of a change in tax law upon the enactment in March 2010 of the Patient Protection and Affordable Care Act and the related Health Care and Education Reconciliation Act of 2010.
[3]	Quarterly earnings per common share are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal annual earnings per common share.

Unaudited Quarterly Information (Details) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2010

Sep. 30, 2010

Jun. 30, 2010

Mar. 31, 2010

Dec. 31, 2009

Sep. 30, 2009

Jun. 30, 2009

Mar. 31, 2009

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Selected Quarterly Financial Information [Abstract]

Revenues

$ 2,098

^[1]

$ 1,908

$ 1,756

$ 3,023

^[2]

$ 2,299

$ 1,576

$ 1,640

$ 2,766

$ 8,785

$ 8,281

$ 11,322

Operating income

302

^[1]

327

263

357

^[2]

299

287

253

285

1,249

1,124

1,273

Basic Earnings Per Share (in dollars per share)

$ 124

^[1]

$ 123

$ 81

$ 114

^[2]

$ 105

$ 114

$ 86

$ 67

$ 442

$ 372

$ 446

$ 0.29

^[1],[3]

$ 0.29

^[3]

$ 0.20

^[3]

$ 0.29

^[2],[3]

$ 0.27

^[3]

$ 0.31

^[3]

$ 0.24

^[3]

$ 0.19

^[3]

$ 1.08

$ 1.02

$ 1.32

Diluted earnings per share (in dollars per share)

$ 0.29

^[1],[3]

$ 0.29

^[3]

$ 0.20

^[3]

$ 0.29

^[2],[3]

$ 0.27

^[3]

$ 0.31

^[3]

$ 0.24

^[3]

$ 0.19

^[3]

$ 1.07

$ 1.01

$ 1.30

Amount of charge to income tax expense as result of change in tax law

$ 21

Amount of gain on sale recorded on non-strategic gathering assets

$ 21

Amount of decrease in income tax expense recorded related to effects of re-measuring accumulated deferred income taxes

$ 24

[1]	During the fourth quarter of 2010, CenterPoint Energy recorded a $21 million gain on the sale of non-strategic gathering assets by its Field Services business segment. CenterPoint Energy also recorded a $24 million decrease in income tax expense related to the effects of re-measuring accumulated deferred income taxes associated with the restructuring of certain subsidiaries.
[2]	During the first quarter of 2010, CenterPoint Energy recorded a $21 million charge to income tax expense as a result of a change in tax law upon the enactment in March 2010 of the Patient Protection and Affordable Care Act and the related Health Care and Education Reconciliation Act of 2010.
[3]	Quarterly earnings per common share are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal annual earnings per common share.

Reportable Business Segments (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2010

Sep. 30, 2010

Jun. 30, 2010

Mar. 31, 2010

^[2]

Dec. 31, 2009

Sep. 30, 2009

Jun. 30, 2009

Mar. 31, 2009

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

$ 2,098

^[1]

$ 1,908

$ 1,756

$ 3,023

$ 2,299

$ 1,576

$ 1,640

$ 2,766

$ 8,785

$ 8,281

$ 11,322

864

743

708

302

^[1]

327

263

357

299

287

253

285

1,249

1,124

1,273

20,111

19,773

20,111

19,773

19,676

1,462

1,148

1,053

Energy products and services

Electric delivery sales

2,205

2,013

1,916

Retail gas sales

4,412

4,540

6,216

Wholesale gas sales

1,250

902

2,295

Gas transport

785

691

756

133

135

139

Electric Transmission & Distribution [Member]

2,098

^[1]

$ 1,908

$ 1,756

$ 3,023

2,299

$ 1,576

$ 1,640

$ 2,766

8,785

8,281

11,322

^[3]

2,205

2,013

1,916

582

480

460

567

545

9,817

9,755

9,817

9,755

8,880

Sales to subsidiaries of NRG Retail LLC in CenterPoint Houston's transmission and distribution revenues

463

428

^[4]

481

^[4]

583

634

635

Sales to subsidiaries of TXU Energy in CenterPoint Houston's transmission and distribution revenues

185

182

151

Expenditures for long-lived assets of Electric Transmission & Distribution related to Hurricane Ike

145

Natural Gas Distribution [Member]

^[3]

2,205

2,013

1,916

3,199

3,374

4,217

166

161

157

231

204

215

4,575

4,535

4,575

4,535

4,961

202

165

214

Competitive Natural Gas Sales and Services [Member]

3,199

3,374

4,217

2,617

2,215

4,488

1,190

1,176

1,190

1,176

1,315

Interstate Pipelines [Member]

2,617

2,215

4,488

^[5]

464

456

477

^[5]

137

142

173

^[5]

^[5]

270

256

293

^[5]

$ 3,672

$ 3,484

3,672

3,484

3,578

Pre-operating allowance for funds used during construction

^[5]

102

176

189

Equity income

^[5]

$ 19

$ 7

^[5]

$ 33

Interest in jointly-owned asset (in hundredths)

50.00%

^[5]

50.00%

^[5]

50.00%

Investment in unconsolidated affiliate

^[5]

$ 413

$ 422

$ 413

$ 422

$ 307

^[5]

464

456

477

Field Services [Member]

^[6]

289

212

213

^[6]

^[6]

^[6]

151

147

^[6]

$ 1,803

$ 1,045

1,803

1,045

826

Interest in jointly-owned asset (in hundredths)

^[6]

668

348

122

Equity income

^[6]

$ 10

$ 8

$ 15

50.00%

^[6]

50.00%

^[6]

50.00%

Investment in unconsolidated affiliate

^[6]

$ 55

$ 40

$ 55

$ 40

$ 38

Other Operations [Member]

^[6]

289

212

213

^[7]

2,184

2,261

2,184

2,261

2,185

Pension and other postemployment related regulatory assets included in total assets of Other Operations

704

731

704

731

800

Reconciling Eliminations [Member]

(234)

(196)

(261)

$ (3,130)

$ (2,483)

(3,130)

(2,483)

(2,069)

Operation and Maintenance Expenses

$ 0

[1]	During the fourth quarter of 2010, CenterPoint Energy recorded a $21 million gain on the sale of non-strategic gathering assets by its Field Services business segment. CenterPoint Energy also recorded a $24 million decrease in income tax expense related to the effects of re-measuring accumulated deferred income taxes associated with the restructuring of certain subsidiaries.
[2]	During the first quarter of 2010, CenterPoint Energy recorded a $21 million charge to income tax expense as a result of a change in tax law upon the enactment in March 2010 of the Patient Protection and Affordable Care Act and the related Health Care and Education Reconciliation Act of 2010.
[3]	Sales to subsidiaries of NRG Retail LLC, the successor to RRI's Texas retail business, in 2008, 2009 and 2010 represented approximately $635 million, $634 million and $583 million, respectively, of CenterPoint Houston's transmission and distribution revenues. Sales to subsidiaries of TXU Energy Retail Company LLC in 2008, 2009 and 2010 represented approximately $151 million, $182 million and $185 million, respectively, of CenterPoint Houston's transmission and distribution revenues.
[4]	Included in expenditures for long-lived assets of Electric Transmission & Distribution is $145 million and $26 million for 2008 and 2009, respectively, related to Hurricane Ike.
[5]	Interstate Pipelines recorded equity income of $36 million, $7 million, and $19 million (including $33 million related to pre-operating allowance for funds used during construction during 2008) in the years ended December 31, 2008, 2009 and 2010, respectively, from its 50% interest in SESH, a jointly-owned pipeline. These amounts are included in Equity in earnings of unconsolidated affiliates under the Other Income (Expense) caption. Interstate Pipelines' investment in SESH was $307 million, $422 million and $413 million as of December 31, 2008, 2009 and 2010 and is included in Investment in unconsolidated affiliates.
[6]	Field Services recorded equity income of $15 million, $8 million and $10 million for the years ended December 31, 2008, 2009 and 2010, respectively, from its 50% interest in a jointly-owned gas processing plant. These amounts are included in Equity in earnings of unconsolidated affiliates under the Other Income (Expense) caption. Field Services' investment in the jointly-owned gas processing plant was $38 million, $40 million and $55 million as of December 31, 2008, 2009 and 2010, respectively, and is included in Investment in unconsolidated affiliates.
[7]	Included in total assets of Other Operations as of December 31, 2008, 2009 and 2010, are pension and other postemployment related regulatory assets of $800 million, $731 million and $704 million, respectively.

Subsequent Events (Details) - Dividend Declared [Member]	12 Months Ended
	Dec. 31, 2010 USD ($)
Subsequent Event [Line Items]
Subsequent Event, Date	Jan. 20, 2011
Subsequent Event, Amount	$ 0.1975

Schedule I: Financial Information of Centerpoint Energy, Inc. (Parent Company) (Details)
shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2010

USD ($)

Sep. 30, 2010

USD ($)

Jun. 30, 2010

USD ($)

Mar. 31, 2010

USD ($)

Dec. 31, 2009

USD ($)

Sep. 30, 2009

USD ($)

Jun. 30, 2009

USD ($)

Mar. 31, 2009

USD ($)

Dec. 31, 2010

USD ($)

Dec. 31, 2009

USD ($)

Dec. 31, 2008

USD ($)

Dec. 31, 2010

USD ($)

Dec. 31, 2009

USD ($)

Dec. 31, 2008

USD ($)

Dec. 31, 2007

USD ($)

Expenses:

$ 1,719

$ 1,664

$ 1,502

Taxes Other than Income

379

373

Gain (loss) on Indexed Debt Securities

7,536

7,157

10,049

Other Income (Expense): [Abstract]

Other Expense

(31)

(68)

128

Interest and other finance charges

(481)

(513)

(468)

Income Before Income Taxes

(544)

(576)

(550)

705

548

723

Income tax expense

(263)

(176)

(277)

Cash and cash equivalents

$ 124

^[1]

$ 123

$ 81

$ 114

^[2]

$ 105

$ 114

$ 86

$ 67

442

372

446

Current Assets: [Abstract]

199

740

167

740

167

129

$ 199

$ 740

$ 167

$ 129

Other Assets, Current

274

223

Total current assets

2,582

2,904

Other Assets: [Abstract]

Other assets

172

230

Total other assets

5,797

6,081

Current portion of indexed debt

20,111

19,773

19,676

Current Liabilities: [Abstract]

126

121

117

114

Current portion of other long-term debt

541

232

201

133

261

Accounts payable: [Abstract]

Total current liabilities

438

445

2,620

3,038

Other Liabilities: [Abstract]

Accumulated deferred income taxes, net, noncurrent

2,934

2,776

Total Liabilities and Shareholders' Equity

438

361

Total other liabilities

5,292

4,977

Total long-term debt

9,001

9,119

Shareholders' Equity: [Abstract]

Shareholders' Equity

3,198

2,639

2,022

20,111

19,773

Operating Activities: [Abstract]

Non-Cash Items Included In Net Income: [Abstract]

124

^[1]

$ 123

$ 81

114

^[2]

105

$ 114

$ 86

442

372

446

Deferred income tax expense

199

269

487

Amortization of debt issuance costs

Loss (gain) on indexed debt securities

(128)

Changes In Working Capital: [Abstract]

Increase (Decrease) in Accounts Payable

(34)

(237)

Other current assets

(2)

(27)

Other current liabilities

(1)

Net cash provided by operating activities

(2)

(33)

1,386

1,841

851

Investing Activities: [Abstract]

Net cash provided by (used in) investing activities

(1,420)

(896)

(1,368)

Financing Activities: [Abstract]

Revolving credit facilities, net

(1,441)

1,110

Proceeds from long-term debt

1,165

1,088

Payments on long-term debt

(783)

(222)

(1,373)

Debt issuance costs

(2)

(10)

(26)

Payment of common stock dividends

(319)

(276)

(246)

Proceeds from issuance of common stock, net

416

504

Net cash provided by (used in) financing activities

(507)

(372)

555

Net Increase (Decrease) in Cash and Cash Equivalents

(541)

573

Cash and Cash Equivalents at Beginning of Year

740

167

740

167

129

Cash and Cash Equivalents at End of Year

199

740

199

740

167

Parent Company [Member]

Expenses:

Operation and Maintenance Expenses

(12)

(17)

(12)

Taxes Other than Income

Interest Income from Subsidiaries

(12)

(17)

(11)

Other Income (Expense): [Abstract]

Other Expense

(8)

(5)

Gain (loss) on Indexed Debt Securities

(31)

(68)

128

Interest Expense to Subsidiaries

(26)

(25)

(38)

Interest and other finance charges

(132)

(149)

(162)

Income Before Income Taxes

(189)

(239)

(65)

(201)

(256)

(76)

Income tax expense

113

Loss Before Equity in Subsidiaries

(122)

(143)

(44)

Equity Income of Subsidiaries

564

515

490

Cash and cash equivalents

442

372

446

Current Assets: [Abstract]

$ 0

Notes receivable - subsidiaries

530

493

Accounts receivable - subsidiaries

Other Assets, Current

Total current assets

657

581

Other Assets: [Abstract]

Investment in subsidiaries

6,115

5,562

Notes receivable - subsidiaries

151

Other assets

723

751

Total other assets

6,989

6,464

Notes payable - subsidiaries

7,646

7,045

Current Liabilities: [Abstract]

900

306

Current portion of indexed debt

126

121

Current portion of other long-term debt

490

232

201

Accounts payable: [Abstract]

Subsidiaries

Taxes accrued

318

416

Interest accrued

Total current liabilities

1,643

1,621

Other Liabilities: [Abstract]

Accumulated deferred income taxes, net, noncurrent

124

122

Notes payable - subsidiaries

460

426

750

Additional paid-in capital

Total other liabilities

1,344

1,305

Total long-term debt

1,461

1,480

Shareholders' Equity: [Abstract]

Common stock

4,100

3,671

Accumulated deficit

(789)

(912)

Accumulated other comprehensive loss

(117)

(124)

Shareholders' Equity

3,198

2,639

Total Liabilities and Shareholders' Equity

$ 7,646

7,045

Operating Activities: [Abstract]

Non-Cash Items Included In Net Income: [Abstract]

442

372

446

Equity earnings of subsidiaries

(564)

(515)

(490)

Deferred income tax expense

(16)

(19)

Amortization of debt issuance costs

Loss (gain) on indexed debt securities

(128)

Changes In Working Capital: [Abstract]

Accounts receivable/(payable) from subsidiaries, net

(65)

Increase (Decrease) in Accounts Payable

(16)

Other current assets

(27)

(16)

Other current liabilities

(111)

Common stock dividends received from subsidiaries

109

746