UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): JULY 14, 2005
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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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CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC
(Exact name of registrant as specified in its charter)
TEXAS 1-3187 22-3865106
(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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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 7.01 REGULATION FD DISCLOSURE.
On July 14, 2005, CenterPoint Energy, Inc.'s electric transmission and
distribution subsidiary, CenterPoint Energy Houston Electric, LLC (CenterPoint
Houston), received an order from the Public Utility Commission of Texas (PUC)
allowing it to implement a competition transition charge (CTC) to collect
approximately $570 million plus interest at an annual rate of 11.075% over 14
years. Based on the accrual of interest provided for in the CTC order,
CenterPoint Houston expects that this amount will increase by approximately
$8 million per month from May 31, 2005 until the CTC is implemented. The CTC
order also allows CenterPoint Houston to collect approximately $24 million of
rate case expenses over three years.
The Texas electric restructuring law provides for the PUC to conduct a
"true-up" proceeding to determine CenterPoint Houston's stranded costs and
certain other costs resulting from the transition to a competitive retail
electric market and to provide for its recovery of those costs. In March 2004,
CenterPoint Houston filed its stranded cost true-up application with the PUC.
CenterPoint Houston had requested recovery of $3.7 billion, excluding interest.
In December 2004, the PUC issued its final order allowing CenterPoint Houston to
recover a true-up balance of approximately $2.3 billion, which included interest
through August 31, 2004.
There are two ways for CenterPoint Houston to recover the true-up balance:
by issuing transition bonds to securitize the amounts due and/or by implementing
a CTC. In March 2005, the PUC issued a financing order that authorized the
issuance of transition bonds; however, several parties have filed appeals of
that financing order and CenterPoint Houston will not be able to issue
transition bonds while these appeals are pending. Prior to the appeals, it had
been expected that approximately $1.8 billion in transition bonds could be
issued by mid-2005 under the terms of the financing order. The CTC approved on
July 14, 2005 authorizes CenterPoint Houston to impose a charge on retail
electric providers to recover the portion of the true-up balance not covered by
the financing order. CenterPoint Houston cannot, however, implement the CTC
until the PUC takes final action on any motions for rehearing that are filed or
the 20-day period for requesting a rehearing has expired.
CenterPoint Houston is entitled to accrue a return on the true-up balance
until it is fully recovered.
The information in this report is being furnished, not filed, pursuant to
Regulation FD. Accordingly, the information will not be incorporated by
reference into any registration statement filed by CenterPoint Energy, Inc. or
CenterPoint Houston under the Securities Act of 1933, as amended, unless
specifically identified therein as being incorporated therein by reference. The
furnishing of this information is not intended to, and does not, constitute a
determination or admission by CenterPoint Energy, Inc. or CenterPoint Houston
that the information is material or complete, or that investors should consider
this information before making an investment decision with respect to any
security of CenterPoint Energy, Inc., CenterPoint Houston or any of their
affiliates.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Some of the statements in this report are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from those expressed or implied by these
statements. You can generally identify our forward-looking statements by the
words "will", "expect" or other similar words. We have based our forward-looking
statements on our management's beliefs and assumptions based on information
available to our management at the time the statements are made. We caution you
that assumptions, beliefs, expectations, intentions and projections about future
events may and often do vary materially from actual results.
Changes in the CTC order as a result of any further PUC action could cause
actual results to differ materially from those expressed or implied in
forward-looking statements. You should not place undue reliance on
forward-looking statements. Each forward-looking statement speaks only as of the
date of the particular statement.
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: July 21, 2005 By: /s/ James S. Brian
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James S. Brian
Senior Vice President and
Chief Accounting Officer
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 HOUSTON
ELECTRIC, LLC
Date: July 21, 2005 By: /s/ James S. Brian
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James S. Brian
Senior Vice President and
Chief Accounting Officer