SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): APRIL 16, 2003
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CENTERPOINT ENERGY, INC.
(Exact name of registrant as specified in its charter)
TEXAS 1-31447 74-0694415
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1111 LOUISIANA
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 207-1111
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ITEM 5. OTHER EVENTS.
NEW CALIFORNIA CLASS ACTION
We, together with Reliant Resources, Inc. and Reliant Energy, Inc.,
have been named as defendants in a lawsuit filed on April 16, 2003 in state
court in Los Angeles County, California on behalf of a class of purchasers of
natural gas alleging violations of state antitrust laws and state laws against
unfair and unlawful business practices based on an alleged conspiracy with Enron
Corp. to manipulate the California natural gas markets in 2000 and 2001. The
complaint is based on certain conclusions in a report by the staff of the
Federal Energy Regulatory Commission that has not been subject to procedures
designed to allow parties to either discover or test the basis for the
conclusions. Neither we nor Reliant Energy was a party in the proceedings in
which the report was submitted. The complaint seeks injunctive and declaratory
relief, compensatory and punitive damages, restitution, costs of suit and
attorneys' fees. The complaint alleges that there were "well over one billion
dollars in excess charges to California consumers during the 2000 through 2001
time period". The plaintiffs are seeking a trebling of any damages award. Under
a master separation agreement between Reliant Energy and Reliant Resources, we
and Reliant Energy are entitled to be defended and indemnified for any losses
arising out of this lawsuit by Reliant Resources. While Reliant Resources has
not yet filed an answer, we understand that it intends to deny both the alleged
violation of any laws and the participation in a conspiracy with Enron. Further,
neither we nor any of our current subsidiaries has engaged in gas trading or any
other business in California. The ultimate outcome of this lawsuit cannot be
predicted at this time.
SOUTH TEXAS PROJECT NUCLEAR GENERATING STATION
Our 81%-owned subsidiary, Texas Genco Holdings, Inc. (Texas Genco),
owns a 30.8% interest in the South Texas Project Nuclear Generating Station
(STP), consisting of two 1,250 MW generating units. During a routine refueling
and maintenance outage in early April, engineers found a small quantity of
residue from reactor cooling water at one location in the Unit 1 reactor
containment building. No other residue was found in Unit 1 or in the plant's
twin Unit 2 reactor when it was inspected during a refueling outage in the fall
of 2002.
Upon discovery of the residue, STP officials immediately reported their
findings to the Nuclear Regulatory Commission. STP's managers and engineers are
conferring with industry experts to develop a corrective action plan. The
Nuclear Regulatory Commission must approve any corrective action plan before it
is implemented.
The Unit will remain shut down until any necessary corrective action is
completed. While the Unit remains out of service, Texas Genco will meet its
existing power sales obligations from other generating units and/or from
purchases from third parties. Until inspections are completed and an acceptable
corrective action plan has been developed, we are unable to predict the economic
impact of this outage and when the Unit will be returned to service. A
protracted outage at Unit 1 could adversely affect our operating results if the
cost of replacement power to Texas Genco is materially greater than the cost of
power produced by STP.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CENTERPOINT ENERGY, INC.
Date: April 23, 2003 By: /s/ Rufus S. Scott
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Rufus S. Scott
Vice President,
Deputy General Counsel and
Assistant Corporate Secretary
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