UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION ------------------ In the Matter of: CERTIFICATE CENTERPOINT ENERGY, INC. OF 1111 Louisiana NOTIFICATION Houston, Texas 77002 (70-9895) PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 ------------------ THIS IS TO CERTIFY that, in accordance with the terms and conditions of the application-declaration, as amended, of Reliant Energy, Incorporated and CenterPoint Energy, Inc. in the above-captioned file (the "Application") and the order of the Securities and Exchange Commission with respect thereto (HCAR No. 27548 (July 5, 2002)), CenterPoint Energy, Inc. (the "Company") is reporting the following information for itself and its subsidiaries for the quarterly period ended December 31, 2002. Unless defined herein, capitalized terms have the meaning given them in the Application. 1. The sales of any common stock or preferred securities by the Company or a Financing Subsidiary and the purchase price per share and the market price per share at the date of the agreement of sale. None. 1
2. The total number of shares of the Company's common stock issued or issuable pursuant to options granted during the quarter under employee benefit plans and dividend reinvestment plans, including any employee benefit plans or dividend reinvestment plans hereafter adopted. 366,715 shares were issued under the Investor's Choice Plan. 10,000 shares were issued to Milton Carroll, Chairman of the Board of Directors, on November 27, 2002, pursuant to an agreement related to Mr. Carroll's assumption of the duties of Chairman of the Board. 2,773,100 stock options were granted to Company employees at a strike price of $6.4378 under the Company's Long Term Incentive Plan. Although awards of these options had been made in March 2002, the actual grant and pricing of the options had been deferred until the separation of Reliant Resources from the Company. A total of 304,583 shares of common stock which previously had been granted to participants under the Company's Common Stock Participation Plan as time-based restricted shares became vested during the quarter, and an additional 451,050 shares of time based restricted stock were granted under that plan, to become vested based on performance achieved during the 2002-2004 performance cycle. 410 shares were issued in exchange for convertible NorAm 6% Subordinated Debentures tendered during the quarter. 3. If the Company's common stock has been transferred to a seller of securities of a company being acquired, the number of shares so issued, the value per share and whether the shares are restricted in the hands of the acquirer. None. 2
4. If a guarantee is issued during the quarter, the name of the guarantor, the name of the beneficiary of the guarantee and the amount, terms and purpose of the guarantee. See Exhibit A. Also, on October 18, 2002, CenterPoint delivered a guarantee in favor of the Tennessee Board for Licensing Contractors to support the contracting activities of CenterPoint Energy Pipeline Services, Inc. in Tennessee. The term of this guarantee runs with the two-year license granted by the Tennessee Board and provides for a maximum potential exposure of $15,000,000. 5. The amount and terms of any long-term debt issued by the Company during the quarter, and the aggregate amount of short-term debt outstanding as of the end of the quarter, as well as the weighted average interest rate for such short-term debt as of such date. No long term debt was issued by the Company during the quarter. For the aggregate amount of short-term debt outstanding as of the end of the quarter for the Company, as well as the weighted average interest rate for such short-term debt as of such date, see Exhibit B hereto. 6. The amount and terms of any long-term debt issued by any Utility Subsidiary during the quarter, and the aggregate amount of short-term debt outstanding as of the end of the quarter, as well as the weighted average interest rate for such short-term debt as of such date. On November 12, 2002, CenterPoint Energy Houston Electric LLC (the "T&D Utility") entered into a new $1.310 billion senior secured credit facility (the "T&D Term Loan"). The proceeds were used to repay all amounts outstanding under the T&D Utility's existing $850 million bank credit facility dated October 10, 2002, to repay $400 million of debt, which included $300 million of senior debentures of CenterPoint Energy FinanceCo II LLP due to mature on November 15, 2002, and $100 million of debt of CenterPoint, and to pay fees and related expenses. The T&D Term Loan has a three-year term, and carries an interest rate of LIBOR plus 9.75 percent, subject to a minimum LIBOR rate of 3 percent. The T&D Utility Term Loan is secured by General Mortgage Bonds, which replaced the $850 million in General Mortgage Bonds that the banks had held. For the aggregate amount of short-term debt outstanding as of the end of the quarter for the Utility Subsidiaries, as well as the weighted average interest rate for such short-term debt as of such date, see Exhibit B hereto. 3
7. The amount and terms of any financings consummated by any Non-Utility Subsidiary that are not exempt under Rule 52 under the Public Utility Holding Act, as amended. None. 8. The notional amount and principal terms of any Hedge Instruments or Anticipatory Hedges entered into during the quarter and the identity of the other parties thereto. None. 9. The name, parent company and amount of equity in any intermediate subsidiary during the quarter and the amount and terms of any securities issued by such subsidiaries during the quarter. None. 10. The information required by a Certificate of Notification on Form U-6B-2. Not applicable. 11. Consolidated balance sheets for the Company and/or a Utility Subsidiary as of the end of the quarter and separate balance sheets as of the end of the quarter for each company that has engaged in jurisdictional financing transactions during the quarter. See Exhibit C hereto. See also the Annual Report on Form 10-K filed by the Company on March 10, 2003 (File No. 1-31447), the Annual Report on Form 10-K filed by CenterPoint Energy Resources Corp. on March 12, 2003 (File No. 1-13265), and the Annual Report on Form 10-K filed by CenterPoint Energy Houston Electric, LLC on March 11, 2003 (File No. 1-3187), all of which are incorporated herein by reference. 12. A table showing, as of the end of the quarter, the dollar and percentage components of the capital structure of the Company on a consolidated basis and of each Utility Subsidiary. 4
See Exhibit D hereto. 13. A retained earnings analysis of the Company on a consolidated basis and of each Utility Subsidiary detailing gross earnings, dividends paid out of each capital account and the resulting capital account balances at the end of the quarter. See Exhibit E hereto. 14. A table showing, as of the end of the quarter, the Money Pool participants and amount of outstanding borrowings for each. See Exhibit F hereto. 15. As to each financing subsidiary, (a) the name of the subsidiary; (b) the value of the Company's investment account in such subsidiary; (c) the balance sheet account where the investment and the cost of the investment are booked; (d) the amount invested in the subsidiary by the Company; (e) the type of corporate entity; (f) the percentage owned by the Company; (g) the identification of other owners if not 100% owned by the Company; (h) the purpose of the investment in the subsidiary; and (i) the amounts and types of securities to be issued by the subsidiary. See Exhibit G hereto. The Company may organize and acquire, directly or indirectly, the common stock or other equity interests of one or more financing subsidiaries for the purpose of effecting various financing transactions from time to time through the Authorization Period involving the issuance and sale of up to an aggregate of $1 billion (cash proceeds to the Company or the respective subsidiary company) in any combination of common stock, preferred securities, debt securities, stock purchase contracts and stock purchase units, as well as its common stock issuable pursuant to such stock purchase contracts and stock purchase units, all as set forth in further detail in the Application. Such financing subsidiaries have been organized because, in management's opinion, the creation and utilization of such financing subsidiary will likely result in tax savings, increased access to capital markets and/or lower cost of capital for the Company or its subsidiaries. 16. For any service transactions among the Company (or any other system service provider, including Reliant Energy Trading and Transportation Group, Inc.) and the Utility Subsidiaries during the period, provide the following information (i) a narrative description of the services rendered; (ii) disclosure of the dollar amount of services rendered in (i) above according to category or department; (iii) identification of companies rendering services described in (i) above and recipient companies, including disclosure of the allocation of services costs; and (iv) disclosure of the number of the CenterPoint system employees engaged 5
in rendering services to other CenterPoint system companies on an annual basis, stated as an absolute and as a percentage of total employees. See Exhibit H hereto. All transactions described herein have been carried out in accordance with the terms and conditions of and for the purposes represented in the Application. CENTERPOINT ENERGY, INC. By: /s/ Rufus S. Scott --------------------------------------- Rufus S. Scott Vice President, Deputy General Counsel and Assistant Corporate Secretary Dated: April 9, 2003 6
. . . EXHIBIT A CENTERPOINT ENERGY RESOURCES CORP. AND CENTERPOINT ENERGY, INC. OUTSTANDING CORPORATE GUARANTIES -- 4TH QUARTER 2002 12/31/02 - ------------------------------------------------------------------------------------------------------------------------ GUARANTOR BUSINESS UNITS AS DEBTORS BENEFICIARY/COUNTERPARTY DOLLAR LIMIT DATE ISSUED - ------------------------------------------------------------------------------------------------------------------------ CERC CEGRC CEGM RER Mirant Americas Energy Marketing, LP $ 10,000,000 30-Oct-02 ------------------------------------------------------------------------------------------------------------- CERC CEGRC CEGM Ameren Energy Fuels and Services, Union $ 2,000,000 11/Nov/02 Electric Company d/b/a AmerenUE, Central Illinois Public Service Company d/b/a AmerenCIPS and Ameren Energy Generating Company ------------------------------------------------------------------------------------------------------------- CERC CEGRC CEGM IGS CEFS Ozark Gas Transmission, LLC $ 250,000 11-Nov-02 ------------------------------------------------------------------------------------------------------------ CERC CEGRC Reliant Energy Services, Inc. $ 1,500,000 21-Nov-02 ------------------------------------------------------------------------------------------------------------- CERC CEGRC Reliant Energy Services, Inc. $ 2,000,000 21-Nov-02 ======================================================================================================================== CEI CEGRC CEGM IGS CEFS Shoreline Gas, Inc. $ 2,000,000 01-Oct-02 - ------------------------------------------------------------------------------------------------------------------------ CEI CEGM National Energy and Trade $ 3,000,000 10-Oct-02 - ------------------------------------------------------------------------------------------------------------------------ CEI CEGRC Prudential Securities Incorporated $ 25,000,000 15-Oct-02 - ------------------------------------------------------------------------------------------------------------------------ CEI CEGRC Texas Gas Transmission Corporation $ 5,000,000 25-Oct-02 - ------------------------------------------------------------------------------------------------------------------------ CEI GENCO ERCOT (QSE) $ 15,000,000 28-Oct-02 - ------------------------------------------------------------------------------------------------------------------------ CEI GENCO ERCOT (TCR) $ 30,000,000 28-Oct-02 - ------------------------------------------------------------------------------------------------------------------------ CEI CEGRC CEGM CEGT ONEOK Energy Marketing and Trading $ 15,000,000 01-Nov-02 Company L.P. - ------------------------------------------------------------------------------------------------------------------------ CEI CEGRC Murphy Oil Company $ 10,000,000 08-Nov-02 - ------------------------------------------------------------------------------------------------------------------------ CEI CEGRC Columbia Gas Transmission Corp. and $ 1,000,000 15-Nov-02 Columbia Gulf Transmission Company - ------------------------------------------------------------------------------------------------------------------------ CEI CEGRC Superior Natural Gas Corporation $ 7,000,000 18-Nov-02 - ------------------------------------------------------------------------------------------------------------------------ CEI CEGRC Mieco, Inc. $ 2,000,000 01-Dec-02 - ------------------------------------------------------------------------------------------------------------------------ CEI CEGRC CEGM IGS CEMII CEPS TXU Energy Trading LP $ 10,000,000 16-Dec-02 - ------------------------------------------------------------------------------------------------------------------------ CEI CEGRC CEGM Louis Dreyfus Energy Services L.P. $ 7,000,000 20-Dec-02 - ------------------------------------------------------------------------------------------------------------------------ CEI CEGRC CEGM CPFS Questar Energy Trading Company $ 1,500,000 20-Dec-02 ======================================================================================================================== TGHI GENCO Tenaska Power Services Co. $ 1,000,000 01-Nov-02 - ------------------------------------------------------------------------------------------------------------------------ TGHI GENCO TXU Lone Star Pipeline $ 200,000 01-Nov-02 - ------------------------------------------------------------------------------------------------------------------------ TGHI GENCO Tractebel Energy Marketing $ 2,000,000 01-Nov-02 - ------------------------------------------------------------------------------------------------------------------------ TGHI GENCO American Electric Power Service $ 10,000,000 18-Nov-02 Corporation - ------------------------------------------------------------------------------------------------------------------------ TGHI GENCO AEP Energy Services, Inc., Houston Pipe $ 10,000,000 18-Nov-02 Line Company LP & AEP Gas Marketing, LP - ------------------------------------------------------------------------------------------------------------------------ TGHI GENCO Exelon Generation Company, LLC $ 2,000,000 01-Dec-02 - ------------------------------------------------------------------------------------------------------------------------ TGHI GENCO Conoco Inc. $ 3,000,000 04-Dec-02 - ------------------------------------------------------------------------------------------------------------------------ ========================================================================================================================
. . . EXHIBIT B ==================================================================================================================================== COMMERCIAL PAPER TOTAL CAPACITY AVAILABLE OUTSTANDING WTD RATE - ------------------------------------------------------------------------------------------------------------------------------------ CNP 1,500,000,000 - - 0.00000% - ------------------------------------------------------------------------------------------------------------------------------------ CE Resources Corp. 347,453,350 453,350 - 0.00000% - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 1,847,453,350 - - 0.00000% ==================================================================================================================================== ==================================================================================================================================== PRIOR DAY INCREASE TODAY'S BANK LOANS OUTSTANDING (REPAY) OUTSTANDING WTD RATE - ------------------------------------------------------------------------------------------------------------------------------------ CNP - ------------------------------------------------------------------------------------------------------------------------------------ Term Mat 01/17/03 2,350,000,000 2,350,000,000 5.92188% - ------------------------------------------------------------------------------------------------------------------------------------ Revolver Mat 01/17/03 1,500,000,000 - 1,500,000,000 5.42188% - ------------------------------------------------------------------------------------------------------------------------------------ CNP TOTAL 3,850,000,000 3,850,000,000 5.72707% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ CE Resources Corp. Mat.01/08/03 150,000,000 - 150,000,000 1.67500% - ------------------------------------------------------------------------------------------------------------------------------------ Mat 01/13/03 197,000,000 - 197,000,000 1.65500% - ------------------------------------------------------------------------------------------------------------------------------------ CERC TOTAL 347,000,000 - 347,000,000 1.66365% - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------
. . . EXHIBIT C CENTERPOINT ENERGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
. . . EXHIBIT D CAPITAL STRUCTURE BY ENTITY AS OF DECEMBER 31, 2002 (IN THOUSANDS) CNP CEHE CERC TEXAS GENCO ---------- --------- ---------- ----------- SHORT-TERM BORROWINGS 347,000 2.73% -- 0.00% 347,000 7.85% -- 0.00% CURRENT PORTION OF LONG-TERM DEBT 810,325 6.38% 18,758 0.31% 517,616 11.70% -- 0.00% INDEXED DEBT SECURITIES DERIVATIVE 224,881 1.77% -- 0.00% -- 0.00% -- 0.00% DEBT TO AFFILIATE-CNP -- 0.00% 1,131,376 18.50% 74,096 1.68% -- 0.00% LONG-TERM DEBT 9,194,320 72.37% 2,641,281 43.19% 1,441,264 32.59% -- 0.00% TRUST PREFERRED SECURITIES 706,140 5.56% -- 0.00% 508 0.01% -- 0.00% COMMON STOCK 3,050 0.02% 1 0.00% 1 0.00% 1 0.00% ADDITIONAL PAID-IN CAPITAL 3,046,043 23.98% 2,205,039 36.06% 1,986,364 44.91% 2,878,502 101.93% MEMBER'S EQUITY/PARTNERS'S CAPITAL -- 0.00% -- 0.00% -- 0.00% -- 0.00% RETAINED EARNINGS (1,062,083) -8.36% 118,946 1.95% 44,804 1.01% (54,460) -1.93% ACCUMULATED OTHER COMPREHENSIVE INCOME (487,011) -3.83% -- 0.00% 11,260 0.25% -- 0.00% UNEARNED ESOP STOCK (78,049) -0.61% -- 0.00% -- 0.00% -- 0.00% ----------- ---------- ---------- ----------- TOTAL CAPITALIZATION 12,704,616 100.00% 6,115,401 100.00% 4,422,913 100.00% 2,824,043 100.00% ==================================================================================================
. . . EXHIBIT E BEGINNING BENEFIT CENTERPOINT ENERGY RESOURCES CORP. BALANCE NET CTA LIABILITY BENEFITS ROLLFORWARD OF EQUITY 4TH QUARTER 2002 9/30/02 INCOME ADJUSTMENTS ADJUSTMENT TRANSFER - ------------------------------------------------------------------------------------------------------ COMMON STOCK EQUITY Common stock 1 - - - - Paid-in Capital 1,905,395 - - - - Retained earnings 73,361 48,536 - - - FAS 133 adjustment 5,232 - - - - Benefits Minimum Liability Adjustment (1,468) - - - 1,468 Currency translation differences - - - - - Unrealized gain/loss on investments - - - - - ------------------------------------------------------------ TOTAL COMMON STOCK EQUITY $ 1,982,521 $48,536 $ - $ - $1,468 ============================================================ CHANGE IN UNREALIZED GAIN/LOSS ON ENDING CENTERPOINT ENERGY RESOURCES CORP. CONTRIBUTIONS DIVIDENDS FAS 133 ITRON BALANCE ROLLFORWARD OF EQUITY 4TH QUARTER 2002 FROM REI TO REI ADJUSTMENT INVESTMENT OTHER 12/31/02 - -------------------------------------------------------------------------------------------------------------------- COMMON STOCK EQUITY Common stock - - - - - 1 Paid-in Capital - 77,093 - - 3,876 1,986,364 Retained earnings - (77,093) - - - 44,804 FAS 133 adjustment - - 6,028 - - 11,260 Benefits Minimum Liability Adjustment - - - - - - Currency translation differences - - - - - - Unrealized gain/loss on investments - - - - - - -------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ - $ - $ 6,028 $ - $ 3,876 $ 2,042,429 ==========================================================================
CEHE ROLLFORWARD OF EQUITY 4TH BEGINNING ENDING BALANCE QUARTER 2002 BALANCE 9/30/02 NET INCOME OTHER 12/31/02 - ------------------------------------------------------------------------------------------------------------------------------- COMMON STOCK EQUITY Common Stock 1,000 - - 1,000 Additional Paid in Capital 2,207,638,161 - (2,599,157) 2,205,039,004 Retained earnings 70,119,970 49,110,536 (284,044) 118,946,462 Benefits - Minimum Liability Adj (1,078,350) 1,078,350 - - ------------------------------------------------------------------------------------------ TOTAL COMMON STOCK EQUITY $ 2,276,680,781 $ 50,188,886 $ (2,883,201) $ 2,323,986,466 ==========================================================================================
CHANGES IN CENTERPOINT ENERGY, INCORPORATED BEGINNING CHANGES IN UNREALIZED ROLLFORWARD OF EQUITY BALANCE NET CTA BENEFITS GAIN/LOSS ON YEAR-TO-DATE CHANGE 12/31/01 INCOME DIVIDENDS ADJUSTMENTS LIABILITY INVESTMENT - ----------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES $ - COMMON STOCK EQUITY Cumulative preferred stock - Common stock 3,897,300,632 Treasury stock - ESOP stock (131,887,644) Retained earnings 3,176,532,479 31,604,575 (111,016,159) Currency translation differences (95,897,178) (8,808,548) FAS 133 adjustment (101,006,542) Benefits - Minimum Liability Adj (13,169,525) 372,097 Unrealized gain/loss on investments 6,049,992 --------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 6,737,922,214 $ 31,604,575 $ (111,016,159) $ (8,808,548) $ 372,097 $ - ============================================================================================== CEHE INC. EQUITY CENTERPOINT ENERGY, INCORPORATED RECOGNITION OF AT 8/31/02 CHANGES IN ROLLFORWARD OF EQUITY ITRON FAS 133 BEFORE STOCK FOR YEAR-TO-DATE CHANGE GAIN/LOSS ADJUSTMENT ADJUST DISCO OPS DISCO OPS RESTRUCTURING - ----------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES COMMON STOCK EQUITY Cumulative preferred stock Common stock Treasury stock ESOP stock Retained earnings Currency translation differences FAS 133 adjustment 185,371,416 Benefits - Minimum Liability Adj Unrealized gain/loss on investments (1,397,907) --------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ (1,397,907) 185,371,416 ============================================================================================= CEHE INC. EQUITY CENTERPOINT ENERGY, INCORPORATED BALANCES AT 8/31/02 CHANGES IN ENDING ROLLFORWARD OF EQUITY AFTER DIVIDEND STOCK FOR BALANCE YEAR-TO-DATE CHANGE DISCO OPS NET INCOME ADJUSTMENT RESTRUCTURING 6/30/02 - -------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES $ - COMMON STOCK EQUITY Cumulative preferred stock - Common stock 14,659,468 3,911,960,100 Treasury stock - ESOP stock 18,859,329 (113,028,315) Retained earnings 6 3,097,120,901 Currency translation differences (104,705,726) FAS 133 adjustment 84,364,874 Benefits - Minimum Liability Adj (12,797,428) Unrealized gain/loss on investments 4,652,085 ------------------------------------------------------------------------------------ TOTAL COMMON STOCK EQUITY $ 33,518,803 $ 6,867,566,491 ==================================================================================== CHANGES IN CENTERPOINT ENERGY, INCORPORATED BEGINNING CHANGES IN UNREALIZED ROLLFORWARD OF EQUITY BALANCE NET CTA BENEFITS GAIN/LOSS ON YEAR-TO-DATE CHANGE 03/31/02 INCOME DIVIDENDS ADJUSTMENTS LIABILITY INVESTMENT - ----------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES $ - - - - - - COMMON STOCK EQUITY Cumulative preferred stock - - - - - - Common stock 3,911,960,100 - - - - - Treasury stock - - - - - - ESOP stock (113,028,315) - - - - - Retained earnings 3,097,120,901 235,644,721 (111,619,212) - - - Currency translation differences (104,705,726) - - 82,347,390 - - FAS 133 adjustment 84,364,874 - - - - - Benefits - Minimum Liability Adj (12,797,428) - - - - - Unrealized gain/loss on investments 4,652,085 - - - - - ------------------------------------------------------------------------------------------ TOTAL COMMON STOCK EQUITY $ 6,867,566,491 $ 235,644,721 $ (111,619,212) $ 82,347,390 $ - $ - ========================================================================================== CEHE INC. EQUITY CENTERPOINT ENERGY, INCORPORATED RECOGNITION OF AT 8/31/02 CHANGES IN ROLLFORWARD OF EQUITY ITRON FAS 133 BEFORE STOCK FOR YEAR-TO-DATE CHANGE GAIN/LOSS ADJUSTMENT ADJUST DISCO OPS DISCO OPS RESTRUCTURING - ----------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES - - COMMON STOCK EQUITY Cumulative preferred stock - - Common stock - - Treasury stock - - ESOP stock - - Retained earnings - - Currency translation differences - - FAS 133 adjustment - (36,329,286) Benefits - Minimum Liability Adj - - Unrealized gain/loss on investments 140,543 - -------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 140,543 $ (36,329,286) ============================================================================================ CEHE INC. EQUITY CENTERPOINT ENERGY, INCORPORATED BALANCES AT 8/31/02 CHANGES IN ENDING ROLLFORWARD OF EQUITY AFTER DIVIDEND STOCK FOR BALANCE YEAR-TO-DATE CHANGE DISCO OPS NET INCOME ADJUSTMENT RESTRUCTURING 6/30/02 - ----------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES - $ - COMMON STOCK EQUITY Cumulative preferred stock - - Common stock 783,108 3,912,743,208 Treasury stock (103,669,904) (103,669,904) ESOP stock 113,028,315 - Retained earnings (6) 3,221,146,404 Currency translation differences - (22,358,336) FAS 133 adjustment - 48,035,588 Benefits - Minimum Liability Adj - (12,797,428) Unrealized gain/loss on investments - 4,792,628 ------------------------------------------------------------------------------------ TOTAL COMMON STOCK EQUITY $ 10,141,513 $ 7,047,892,160 ==================================================================================== CENTERPOINT ENERGY, INCORPORATED BEGINNING CHANGES IN ROLLFORWARD OF EQUITY BALANCE NET CTA BENEFIT CHANGES IN YEAR-TO-DATE CHANGE 12/31/01 INCOME DIVIDENDS ADJUSTMENTS LIABILITY STOCK - ----------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES $ - COMMON STOCK EQUITY Cumulative preferred stock - Common stock 3,897,300,632 Treasury stock - ESOP stock (131,887,644) Retained earnings 3,176,532,479 267,249,296 (222,635,371) Currency translation differences (95,897,178) 73,538,842 FAS 133 adjustment (101,006,542) Benefits - Minimum Liability Adj (13,169,525) 372,097 Unrealized gain/loss on investments 6,049,992 --------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 6,737,922,214 $ 267,249,296 $ (222,635,371) $ 73,538,842 $ 372,097 $ - ============================================================================================= CEHE INC. EQUITY CENTERPOINT ENERGY, INCORPORATED RECOGNITION OF AT 8/31/02 CHANGES IN ROLLFORWARD OF EQUITY ITRON FAS 133 BEFORE STOCK FOR YEAR-TO-DATE CHANGE GAIN/LOSS ADJUSTMENT ADJUST DISCO OPS DISCO OPS RESTRUCTURING - ----------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES COMMON STOCK EQUITY Cumulative preferred stock Common stock Treasury stock ESOP stock Retained earnings Currency translation differences FAS 133 adjustment 149,042,130 Benefits - Minimum Liability Adj Unrealized gain/loss on investment s (1,257,364) ----------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ (1,257,364) $ 149,042,130 =============================================================================================== CEHE INC. EQUITY CENTERPOINT ENERGY, INCORPORATED BALANCES AT 8/31/02 CHANGES IN ENDING ROLLFORWARD OF EQUITY AFTER DIVIDEND STOCK FOR BALANCE YEAR-TO-DATE CHANGE DISCO OPS NET INCOME ADJUSTMENT RESTRUCTURING 6/30/02 - ----------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES - $ - COMMON STOCK EQUITY Cumulative preferred stock - Common stock 15,442,576 3,912,743,208 Treasury stock (103,669,904) (103,669,904) ESOP stock 131,887,644 - Retained earnings 3,221,146,404 Currency translation differences (22,358,336) FAS 133 adjustment 48,035,588 Benefits - Minimum Liability Adj (12,797,428) Unrealized gain/loss on investments 4,792,628 ------------------------------------------------------------------------------------ TOTAL COMMON STOCK EQUITY $ 43,660,316 $ 7,047,892,160 ====================================================================================
CHANGES IN CEHE BEGINNING CHANGES IN UNREALIZED ROLLFORWARD OF EQUITY BALANCE NET CTA BENEFITS GAIN/LOSS ON QTR-TO-DATE CHANGE 6/30/02 INCOME DIVIDENDS ADJUSTMENTS LIABILITY INVESTMENT - ----------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES $ - - - - - - COMMON STOCK EQUITY Cumulative preferred stock - - - - - - Common stock 3,912,743,208 - - - - 2,521,756 Treasury stock (103,669,904) - - - - - ESOP stock - - - - - 34,027,205 Retained earnings 3,221,146,404 293,202,847 (48,656,657) - - - Currency translation differences (22,358,336) - - (20,840,541) - - FAS 133 adjustment 48,035,588 - - - - - Benefits - Minimum Liability Adj (12,797,428) - - - - - Unrealized gain/loss on investments 4,792,628 - - - - - ---------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 7,047,892,160 $ 293,202,847 $ (48,656,657) $ (20,840,541) $ - $ 36,548,961 ============================================================================================== CEHE INC. EQUITY CEHE RECOGNITION OF AT 8/31/02 CHANGES IN ROLLFORWARD OF EQUITY ITRON FAS 133 BEFORE STOCK FOR QTR-TO-DATE CHANGE GAIN/LOSS ADJUSTMENT ADJUST DISCO OPS DISCO OPS RESTRUCTURING - --------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES - - - - - - COMMON STOCK EQUITY Cumulative preferred stock - - - - - - Common stock - - - 3,915,264,964 (3,244,033,578) 1,549,297,796 Treasury stock - - - (103,669,904) - - ESOP stock - - - 34,027,205 97,860,439 - Retained earnings - - (976) 3,465,691,618 (1,916,393,822) (1,549,297,796 Currency translation differences - - - (43,198,877) 43,198,877 - FAS 133 adjustment - (76,153,468) - (28,117,880) 28,117,880 - Benefits - Minimum Liability Adj - - - (12,797,428) 11,719,078 - Unrealized gain/loss on investments (4,166,856) - - 625,772 (625,772) - -------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ (4,166,856) $ (76,153,468) $ (976) $ 7,227,825,470 $ (4,980,156,898) $ - ============================================================================================ CEHE INC. EQUITY CEHE AT 8/31/02 CHANGES IN ENDING ROLLFORWARD OF EQUITY AFTER DIVIDEND STOCK FOR BALANCE QTR-TO-DATE CHANGE DISCO OPS NET INCOME ADJUSTMENT RESTRUCTURING 9/30/02 - ---------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES - - - - $ - COMMON STOCK EQUITY Cumulative preferred stock - - - - - Common stock 2,220,529,182 - 2,223,328 (15,114,349) 2,207,638,161 Treasury stock (103,669,904) - - 103,669,904 - ESOP stock 131,887,644 - - (131,887,644) - Retained earnings - 69,835,926 - 284,044 70,119,970 Currency translation differences - - - - - FAS 133 adjustment - - - - - Benefits - Minimum Liability Adj (1,078,350) - - - (1,078,350) Unrealized gain/loss on investments - - - - - ------------------------------------------------------------------------------------ TOTAL COMMON STOCK EQUITY $ 2,247,668,572 $ 69,835,926 $ 2,223,328 $ (43,048,045) $ 2,276,679,781 ==================================================================================== CEHE BEGINNING CHANGES IN ROLLFORWARD OF EQUITY BALANCE NET CTA BENEFITS CHANGE QTR-TO-DATE CHANGE 12/31/01 INCOME DIVIDENDS ADJUSTMENTS LIABILITY IN STOCK - ----------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES $ - COMMON STOCK EQUITY Cumulative preferred stock - Common Stock - Additional Paid in Capital 3,897,300,632 2,521,756 Treasury stock - ESOP stock (131,887,644) 34,027,205 Retained earnings 3,176,532,479 560,452,143 (271,292,028) Currency translation differences (95,897,178) 52,698,301 FAS 133 adjustment (101,006,542) Benefits - Minimum Liability Adj (13,169,525) 372,097 Unrealized gain/loss on investments 6,049,992 --------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 6,737,922,214 $ 560,452,143 $ (271,292,028) $ 52,698,301 $ 372,097 $ 36,548,961 ============================================================================================= CEHE INC. EQUITY BALANCES CEHE RECOGNITION OF AT 8/31/02 CHANGES IN ROLLFORWARD OF EQUITY ITRON FAS 133 BEFORE STOCK FOR YEAR-TO-DATE CHANGE GAIN/LOSS ADJUSTMENT ADJUST DISCO OPS DISCO OPS RESTRUCTURING - --------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES COMMON STOCK EQUITY Cumulative preferred stock - Common Stock - 1,000 Additional Paid in Capital 3,899,822,388 (3,244,033,578) 1,549,297,796 Treasury stock - ESOP stock (97,860,439) 97,860,439 Retained earnings (976) 3,465,691,618 (1,916,393,822) (1,549,297,796) Currency translation differences (43,198,877) 43,198,877 FAS 133 adjustment 72,888,662 (28,117,880) 28,117,880 Benefits - Minimum Liability Adj (12,797,428) 11,719,078 Unrealized gain/loss on investments (5,424,220) 625,772 (625,772) --------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ (5,424,220) $ 72,888,662 $ (976) $ 7,184,165,154 $ (4,980,155,898) $ - ============================================================================================= CEHE INC. EQUITY CEHE BALANCES AT 8/31/02 CHANGES IN ENDING ROLLFORWARD OF EQUITY AFTER DIVIDEND STOCK FOR BALANCE YEAR-TO-DATE CHANGE DISCO OPS NET INCOME ADJUSTMENT RESTRUCTURING 9/30/02 - -------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES $ - COMMON STOCK EQUITY Cumulative preferred stock - Common Stock 1,000 1,000 Additional Paid in Capital 2,205,086,606 2,223,328 328,227 2,207,638,161 Treasury stock - - ESOP stock - - Retained earnings - 69,835,926 284,044 70,119,970 Currency translation differences - - FAS 133 adjustment - - Benefits - Minimum Liability Adj (1,078,350) (1,078,350) Unrealized gain/loss on investments - - ---------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 2,204,009,256 $ 612,271 $ 2,276,680,781 ================================================================================== CHANGES IN CEHE BEGINNING CHANGES IN UNREALIZED ROLLFORWARD OF EQUITY BALANCE NET CTA BENEFITS GAIN/LOSS ON QTR-TO-DATE CHANGE 9/30/02 INCOME DIVIDENDS ADJUSTMENTS LIABILITY INVESTMENT - ----------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES $ - - - - - - COMMON STOCK EQUITY Cumulative preferred stock - - - - - - Common Stock 1,000 - - - - - Additional Paid in Capital 2,207,638,161 - - - - - Treasury stock - - - - - - ESOP stock - - - - - - Retained earnings 70,119,970 - - - - - Currency translation differences - - - - - - FAS 133 adjustment - - - - - - Benefits - Minimum Liability Adj (1,078,350) - - - - - Unrealized gain/loss on investments - - - - - - -------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 2,276,680,781 $ - $ - $ - $ - $ - ============================================================================================ CEHE INC. EQUITY CEHE RECOGNITION OF AT 8/31/02 CHANGES IN ROLLFORWARD OF EQUITY ITRON FAS 133 BEFORE STOCK FOR QTR-TO-DATE CHANGE GAIN/LOSS ADJUSTMENT ADJUST DISCO OPS DISCO OPS RESTRUCTURING - --------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES - - - - - - COMMON STOCK EQUITY Cumulative preferred stock - - - - - - Common Stock - - - 1,000 - - Additional Paid in Capital - - - 2,207,638,161 - - Treasury stock - - - - - - ESOP stock - - - - - - Retained earnings - - - 70,119,970 - - Currency translation differences - - - - - - FAS 133 adjustment - - - - - - Benefits - Minimum Liability Adj - - - (1,078,350) - - Unrealized gain/loss on investments - - - - - - --------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ - $ - $ - $ 2,276,680,781 $ - $ - ============================================================================================= CEHE INC. EQUITY CEHE BALANCES AT 8/31/02 CHANGES IN ENDING ROLLFORWARD OF EQUITY AFTER DIVIDEND STOCK FOR BALANCE QTR-TO-DATE CHANGE DISCO OPS NET INCOME ADJUSTMENT RESTRUCTURING 12/31/02 - ------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES - - - - $ - COMMON STOCK EQUITY Cumulative preferred stock - - - - - Common Stock 1,000 - - - 2,000 Additional Paid in Capital 2,207,638,161 - (2,223,328) (375,829) 2,205,039,004 Treasury stock - - - - - ESOP stock - - - - - Retained earnings 70,119,970 49,110,536 - (284,044) 118,946,462 Currency translation differences - - - - - FAS 133 adjustment - - - - - Benefits - Minimum Liability Adj (1,078,350) 1,078,350 - - - Unrealized gain/loss on investments - - - - - ---------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 2,276,680,781 $ 50,188,886 $ (2,223,328) $ (659,873) $ 2,323,987,466 ================================================================================== CEHE BEGINNING CHANGES IN ROLLFORWARD OF EQUITY BALANCE NET CTA BENEFITS CHANGES YEAR-TO-DATE CHANGE 12/31/01 INCOME DIVIDENDS ADJUSTMENTS LIABILITY IN STOCK - ----------------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES $ - COMMON STOCK EQUITY Cumulative preferred stock - Common Stock - Additional Paid in Capital 3,897,300,632 2,521,756 Treasury stock - ESOP stock (131,887,644) 34,027,205 Retained earnings 3,176,532,479 560,452,143 (271,292,028) Currency translation differences (95,897,178) 52,698,301 FAS 133 adjustment (101,006,542) Benefits - Minimum Liability Adj (13,169,525) 372,097 Unrealized gain/loss on investments 6,049,992 ----------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 6,737,922,214 $ 560,452,143 $ (271,292,028) $ 52,698,301 $ 372,097 $ 36,548,961 =============================================================================================== CEHE INC. EQUITY CEHE RECOGNITION OF BALANCES AT 8/31/02 CHANGES IN ROLLFORWARD OF EQUITY ITRON FAS 133 BEFORE STOCK FOR YEAR-TO-DATE CHANGE GAIN/LOSS ADJUSTMENT ADJUST DISCO OPS DISCO OPS RESTRUCTURING - ------------------------------------------------------------------------------------------------------------------------------ TRUST PREFERRED SECURITIES COMMON STOCK EQUITY Cumulative preferred stock - Common Stock - 1,000 Additional Paid in Capital 3,899,822,388 (3,244,033,578) 1,549,297,796 Treasury stock - ESOP stock (97,860,439) 97,860,439 Retained earnings (976) 3,465,691,618 (1,916,393,822) (1,549,297,796) Currency translation differences (43,198,877) 43,198,877 FAS 133 adjustment 72,888,662 (28,117,880) 28,117,880 Benefits - Minimum Liability Adj (12,797,428) 11,719,078 Unrealized gain/loss on investments (5,424,220) 625,772 (625,772) -------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ (5,424,220) $ 72,888,662 $ (976) $ 7,184,165,154 $ (4,980,155,898) $ - ============================================================================================ CEHE INC. EQUITY CEHE BALANCES AT 8/31/02 CHANGES IN ENDING ROLLFORWARD OF EQUITY AFTER DIVIDEND STOCK FOR BALANCE YEAR-TO-DATE CHANGE DISCO OPS NET INCOME ADJUSTMENT RESTRUCTURING 12/31/02 - --------------------------------------------------------------------------------------------------------------------------- TRUST PREFERRED SECURITIES $ - COMMON STOCK EQUITY Cumulative preferred stock - Common Stock 1,000 1,000 Additional Paid in Capital 2,205,086,606 (47,602) 2,205,039,004 Treasury stock - - ESOP stock - - Retained earnings - 118,946,462 118,946,462 Currency translation differences - - FAS 133 adjustment - - Benefits - Minimum Liability Adj (1,078,350) 1,078,350 - Unrealized gain/loss on investments - - ----------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 2,204,009,256 $ (47,602) $ 2,323,986,466 ===================================================================================
CENTERPOINT ENERGY, INCORPORATED BEGINNING ADJUSTMENT ADJUSTED ROLLFORWARD OF EQUITY BALANCE TO PAR VALUE BALANCE NET EXTRAORDINARY 4TH QUARTER 2002 9/30/02 STOCK 9/30/02 INCOME DIVIDENDS LOSS - ------------------------------------------------------------------------------------------------------------------------------ TRUST PREFERRED SECURITIES $ 706,029 - 706,029 - - - COMMON STOCK EQUITY Cumulative preferred stock - - - - - - Common stock 3,043 - 3,043 - - - APIC 3,045,772 - 3,045,772 - - - Treasury stock - - - - - - ESOP stock (91,717) - (91,717) - - - Retained earnings (949,781) - (949,781) (7,968) (49,312) (17,210) Currency translation differences (2,935) - (2,935) - - - FAS 133 adjustment (92,411) - (92,411) - - - Benefits - Minimum Liability Adj (5,367) - (5,367) - - - Unrealized gain/loss on investments - - - - - - -------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 1,906,604 $ - $ 1,906,604 $ (7,968) $ (49,312) $ (17,210) ============================================================================================ CHANGE IN CENTERPOINT ENERGY, INCORPORATED CHANGE IN UNREALIZED INCOME IMPAIRMENT ENDING ROLLFORWARD OF EQUITY CTA BENEFITS GAIN/LOSS FAS 133 FROM OF INV CHANGES BALANCE 4TH QUARTER 2002 ADJUSTMENTS LIABILITY ON NDT ADJUSTMENT DISCO OPS IN RRI IN STOCK 12/31/02 - ------------------------------------------------------------------------------------------------------------------------------------ TRUST PREFERRED SECURITIES - - - - - - 111 $ 706,140 COMMON STOCK EQUITY Cumulative preferred stock - - - - - - - - Common stock - - - - - - 7 3,050 APIC - - - - - - 271 3,046,043 Treasury stock - - - - - - - - ESOP stock - - - - - - 13,668 (78,049) Retained earnings - - - - - (37,812) - (1,062,083) Currency translation differences 2,255 - - - - - - (680) FAS 133 adjustment - - - 25,989 - - - (66,422) Benefits - Minimum Liability Adj - (414,542) - - - - - (419,909) Unrealized gain/loss on investments - - - - - - - - ------------------------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 2,255 $ (414,542) $ - 25,989 $ - $ (37,812) $ 13,946 $1,421,950 =================================================================================================
CenterPoint Energy, Inc. Change in Disco Ops Equity December 31, 2002
CHANGE IN ENDING TEXAS GENCO ROLLFORWARD OF EQUITY BEGINNING NET BENEFIT LIABILITY TRANSFERS FROM BALANCE 4TH QUARTER 2002 BALANCE 9/30/02 INCOME ADJUSTMENT PARENT 12/31/02 - ------------------------------------------------------------------------------------------------------------------------ COMMON STOCK EQUITY Common stock 1 - - 1 Paid-in capital 2,878,502 - - 2,878,502 Retained earnings (11,205) (43,255) - (54,460) Benefits - Minimum Liability Adj (705) - 705 - - ----------------------------------------------------------------------------------- TOTAL COMMON STOCK EQUITY $ 2,866,593 $ (43,255) $ - $ 2,824,043 ===================================================================================
. . . EXHIBIT F - ------------------------------------------------------------------------------------------------------------ RATES CENTERPOINT ENERGY, INC. - MONEY POOL DECEMBER 31, 2002 - ------------------------------------------------------------------------------------------------------------ INV/BORR RATE 6.2170% - ------------------------------------------------------------------------------------------------------------ CNP 263,483,994 - ------------------------------------------------------------------------------------------------------------ HI FinCo GP LLC - ------------------------------------------------------------------------------------------------------------ HI FinCo LP - ------------------------------------------------------------------------------------------------------------ RE FinCo II GP, LLC - ------------------------------------------------------------------------------------------------------------ RE FinCo II LP - ------------------------------------------------------------------------------------------------------------ CE FundingCo 4,194,000 - ------------------------------------------------------------------------------------------------------------ CE Houston Electric LLC (48,375,868) - ------------------------------------------------------------------------------------------------------------ CE International, Inc. 1,952 - ------------------------------------------------------------------------------------------------------------ CE Products 239,956 - ------------------------------------------------------------------------------------------------------------ CE Resources Corp. (74,095,571) - ------------------------------------------------------------------------------------------------------------ CE Management Services (60,259,159) - ------------------------------------------------------------------------------------------------------------ Texas Genco LP (86,186,015) - ------------------------------------------------------------------------------------------------------------ CE Properties (955,337) - ------------------------------------------------------------------------------------------------------------ Texas Genco GP LLC 1,000 - ------------------------------------------------------------------------------------------------------------ Texas Genco Holdings 1,000 - ------------------------------------------------------------------------------------------------------------ External Investment - ------------------------------------------------------------------------------------------------------------ TOTAL POOL ACTIVITY - ------------------------------------------------------------------------------------------------------------ TOTAL SOURCES 269,871,950 - ------------------------------------------------------------------------------------------------------------ TOTAL USES (269,871,950) - ------------------------------------------------------------------------------------------------------------ NET - ------------------------------------------------------------------------------------------------------------
. . . EXHIBIT G Investment in Financing Subs As of Dec. 2002 --------------- CenterPoint Energy, Inc. 10049 Houston Industries FinanceCo GP 178,096,047 10050 Houston Industries FinanceCo LP 134,683,882 10053 CenterPoint Energy Capital Trust I - 10054 CenterPoint Energy Capital Trust II - 10129 CenterPoint Energy Trust I - 10158 Reliant Energy FinanceCo III LP (73,626) 10162 Reliant Energy FinanceCo II LP - 10163 Reliant Energy FinanceCo II GP, LLC - 10181 CenterPoint Energy Investment Management, Inc. - 10187 Reliant Energy FinanceCo IV LP 70,009 CenterPoint Energy Houston Electric, LLC 10158 Reliant Energy FinanceCo III LP - 10162 Reliant Energy FinanceCo II LP 7,376,761 10163 Reliant Energy FinanceCo II GP, LLC 982,564 10187 Reliant Energy FinanceCo IV LP - Utility Holding Company 10053 CenterPoint Energy Capital Trust I 7,732,001 10054 CenterPoint Energy Capital Trust II 3,071,718 10129 CenterPoint Energy Trust I 11,674,855 10181 CenterPoint Energy Investment Management, Inc. 648,886,730
. . . EXHIBIT H CORPORATE COSTS
SHARED SERVICES
INFORMATION TECHNOLOGY