CenterPoint Energy (CNP) 8-K Centerpoint Energy Reports Third Quarter 2007 Earnings

Exhibit 99.1

For more information contact
Media:
Leticia Lowe
Phone 713.207.7702
Investors:
Marianne Paulsen
Phone 713.207.6500

For Immediate Release Page 1 of 4

CENTERPOINT ENERGY REPORTS THIRD QUARTER 2007 EARNINGS

     Houston, TX — November 2, 2007- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $91 million, or $0.27 per diluted share, for the third quarter of 2007 compared to $83 million, or $0.26 per diluted share, for the same period of 2006.

     “I am pleased with our financial results this quarter,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our performance is consistent with our overall expectations for this year. We experienced solid earnings growth from our investments in our interstate pipelines and field services segments, and our electric and natural gas utilities also continued to demonstrate significant progress.”

     For the nine months ended September 30, 2007, net income was $291 million, or $0.85 per diluted share, compared to $365 million, or $1.14 per diluted share, for the same period of 2006. Results for the nine months ended September 30, 2006, were favorably impacted by $126 million, or $0.40 per diluted share, due to the resolution of certain legacy tax issues but were negatively impacted by $21 million, or $0.07 per diluted share, from a settlement related to the company’s 2001 unbundled cost of service order (UCOS) issued by the Texas Public Utility Commission. Excluding the net effect of these items, net income for the nine months ended September 30, 2006, would have been $260 million, or $0.81 per diluted share, compared to $291 million, or $0.85 per diluted share, for the nine months ended September 30, 2007.

OPERATING INCOME BY SEGMENT

Electric Transmission & Distribution

     The electric transmission & distribution segment reported operating income of $196 million in the third quarter of 2007, consisting of $155 million from the regulated electric transmission & distribution utility operations (TDU), $11 million from the competition transition charge (CTC), and $30 million related to transition bonds. Operating income for the third quarter of 2006 was $219 million, consisting of $173 million from the TDU, $14 million from the CTC, and $32 million related to transition bonds.

     Operating income for the TDU for the third quarter of 2007 was negatively impacted by a rate settlement implemented in October of 2006, partially offset by customer growth of over 47,000 metered customers since September 2006.

     Operating income for the nine months ended September 30, 2007, was $457 million, consisting of $335 million from the TDU, $32 million from the CTC, and $90 million related to transition bonds. Operating income for the same period of 2006 was $480 million, consisting of $340 million from the TDU, $44 million from the CTC, and $96 million related to transition bonds.

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Media:
Leticia Lowe
Phone 713.207.7702
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Marianne Paulsen
Phone 713.207.6500

For Immediate Release Page 2 of 4

Natural Gas Distribution

     The natural gas distribution segment reported an operating loss of $8 million for the third quarter of 2007 compared to an operating loss of $11 million for the same period of 2006. Due to seasonal impacts, the third quarter for this segment is typically the weakest of the year. The third quarter of 2007 benefited from customer growth with the addition of nearly 48,000 customers since September 2006.

     Operating income for the nine months ended September 30, 2007, was $129 million compared to $90 million for the same period of 2006.

Competitive Natural Gas Sales and Services

     The competitive natural gas sales and services segment reported operating income of $4 million for the third quarter of 2007 compared to $12 million for the same period of 2006. The decrease in operating income was primarily due to a reduction in locational and seasonal natural gas price differentials. In addition, the third quarter of 2007 included a $2 million gain resulting from mark-to-market accounting for non-trading financial derivatives and a $5 million write-down of natural gas inventory to the lower of average cost or market, compared to a $21 million gain resulting from mark-to-market accounting and a $26 million inventory write-down for the same period of 2006.

     Operating income for the nine months ended September 30, 2007, was $56 million compared to $44 million for the same period of 2006.

Interstate Pipelines

     The interstate pipelines segment reported operating income of $70 million for the third quarter of 2007 compared to $48 million for the same period of 2006. The increase in operating income was driven primarily by the new Carthage to Perryville pipeline, which went into commercial service in May 2007, increased ancillary services, and settlements of certain state tax issues. The third quarter of 2006 included a gain from the sale of excess gas no longer required following improvements to a storage facility.

     Operating income for the nine months ended September 30, 2007, was $166 million compared to $137 million for the same period of 2006.

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Media:
Leticia Lowe
Phone 713.207.7702
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Marianne Paulsen
Phone 713.207.6500

For Immediate Release Page 3 of 4

Field Services

     The field services segment reported operating income of $26 million for the third quarter of 2007 compared to $21 million for the same period of 2006. Operating income increased from higher throughput and increased ancillary services, partially offset by lower commodity prices. In addition, this business recorded equity income of $2 million in each of the third quarters of 2007 and 2006 from its 50 percent interest in a jointly-owned gas processing plant. These amounts are included in Other — net under the Other Income (Expense) caption.

     Operating income for the nine months ended September 30, 2007, was $75 million compared to $66 million for the same period of 2006. Equity income from the jointly-owned gas processing plant was $6 million for the nine months ended September 30, 2007, compared to $7 million for the nine months ended September 30, 2006.

DIVIDEND DECLARATION

     On October 25, 2007, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.17 per share of common stock payable on December 10, 2007, to shareholders of record as of the close of business on November 16, 2007.

OUTLOOK FOR 2007

     CenterPoint Energy expects diluted earnings per share for 2007 to be at the high end of its previously provided range of $1.02 to $1.12. This guidance takes into consideration various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding the impact to earnings of various regulatory proceedings but cannot predict the ultimate outcome of any of those proceedings. In providing this guidance, the company has not projected the impact of any changes in accounting standards, any impact from acquisitions or divestitures, or the outcome of the TDU’s true-up appeal.

FILING OF FORM 10-Q FOR CENTERPOINT ENERGY, INC.

     Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Quarterly Report on Form 10-Q for the period ended September 30, 2007. A copy of that report is available on the company’s web site,www.CenterPointEnergy.com, under the “Investors” section. Other filings the company makes at the SEC and other documents relating to its corporate governance can also be found on that site.

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For more information contact
Media:
Leticia Lowe
Phone 713.207.7702
Investors:
Marianne Paulsen
Phone 713.207.6500

For Immediate Release Page 4 of 4

WEBCAST OF EARNINGS CONFERENCE CALL

     CenterPoint Energy’s management will host an earnings conference call on Friday, November 2, 2007, at 10:30 a.m. Central time or 11:30 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call at www.CenterPointEnergy.com/investors/events. A replay of the call can be accessed approximately two hours after the completion of the call and will be archived on the Web site for at least one year.

     CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $17 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site atwww.CenterPointEnergy.com.

     This news release includes forward-looking statements. Actual events and results may differ materially from those projected. The statements in this news release regarding future financial performance and results of operations and other statements that are not historical facts are forward-looking statements. Factors that could affect actual results include the timing and outcome of appeals from the true-up proceedings, the timing and impact of future regulatory, legislative and IRS decisions, effects of competition, weather variations, changes in CenterPoint Energy’s or its subsidiaries’ business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas, the impact of unplanned facility outages, and other factors discussed in CenterPoint Energy’s and its subsidiaries’ Form 10-Ks for the period ended December 31, 2006, CenterPoint Energy’s and its subsidiaries’ Form 10-Qs for the periods ended March 31, 2007, and June 30, 2007, CenterPoint Energy’s Form 10-Q for the period ended September 30, 2007, and other filings with the Securities and Exchange Commission.

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CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Income
(Millions of Dollars)
(Unaudited)

	Quarter Ended September 30,						Nine Months Ended September 30,
	2006			2007			2006			2007
Revenues:
Electric Transmission & Distribution	$	533		$	528		$	1,374		$	1,399
Natural Gas Distribution		485			458			2,514			2,601
Competitive Natural Gas Sales and Services		830			770			2,743			2,715
Interstate Pipelines		106			137			299			348
Field Services		39			44			114			125
Other Operations		3			3			12			8
Eliminations		(61	)		(58	)		(201	)		(175	)
Total		1,935			1,882			6,855			7,021
Expenses:
Natural gas		1,058			991			4,286			4,349
Operation and maintenance		347			349			1,018			1,031
Depreciation and amortization		159			170			452			475
Taxes other than income taxes		87			85			289			284
Total		1,651			1,595			6,045			6,139
Operating Income		284			287			810			882
Other Income (Expense) :
Gain (Loss) on Time Warner investment		20			(58	)		17			(74	)
Gain (Loss) on indexed debt securities		(12	)		56			(13	)		70
Interest and other finance charges		(120	)		(126	)		(353	)		(368	)
Interest on transition bonds		(32	)		(30	)		(98	)		(93	)
Distribution from AOL Time Warner litigation settlement		—			32			—			32
Additional distribution to ZENS holders		—			(27	)		—			(27	)
Other — net		12			11			27			23
Total		(132	)		(142	)		(420	)		(437	)
Income from Before Income Taxes		152			145			390			445
Income Tax Expense		(69	)		(54	)		(25	)		(154	)
Net Income	$	83		$	91		$	365		$	291

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

CenterPoint Energy, Inc. and Subsidiaries
Selected Data From Statements of Consolidated Income
(Millions of Dollars, Except Share and Per Share Amounts)
(Unaudited)

	Quarter Ended						Nine Months Ended
	September 30,						September 30,
	2006			2007			2006			2007
Basic Earnings Per Common Share:
Net Income	$	0.27		$	0.29		$	1.17		$	0.91
Diluted Earnings Per Common Share:
Net Income	$	0.26		$	0.27		$	1.14		$	0.85
Dividends Declared per Common Share	$	0.15		$	0.17		$	0.45		$	0.51
Weighted Average Common Shares Outstanding (000):
- Basic		311,945			321,192			311,414			320,071
- Diluted		324,716			340,974			319,974			342,222
Operating Income (Loss) by Segment
Electric Transmission & Distribution:
Electric Transmission and Distribution Operations	$	173		$	155		$	340		$	335
Competition Transition Charge		14			11			44			32
Total Electric Transmission and Distribution Utility		187			166			384			367
Transition Bond Companies		32			30			96			90
Total Electric Transmission & Distribution		219			196			480			457
Natural Gas Distribution		(11	)		(8	)		90			129
Competitive Natural Gas Sales and Services		12			4			44			56
Interstate Pipelines		48			70			137			166
Field Services		21			26			66			75
Other Operations		(5	)		(1	)		(7	)		(1	)
Total	$	284		$	287		$	810		$	882

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

CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)

	Electric Transmission & Distribution
	Quarter Ended									Nine Months Ended
	September 30,						% Diff			September 30,						% Diff
	2006			2007			Fav/(Unfav)			2006			2007			Fav/(Unfav)
Results of Operations:
Revenues:
Electric transmission and distribution utility	$	453		$	445			(2	%)	$	1,170		$	1,187			1	%
Transition bond companies		80			83			4	%		204			212			4	%
Total		533			528			(1	%)		1,374			1,399			2	%
Expenses:
Operation and maintenance		155			163			(5	%)		436			467			(7	%)
Depreciation and amortization		58			58			—			182			182			—
Taxes other than income taxes		53			58			(9	%)		168			171			(2	%)
Transition bond companies		48			53			(10	%)		108			122			(13	%)
Total		314			332			(6	%)		894			942			(5	%)
Operating Income	$	219		$	196			(11	%)	$	480		$	457			(5	%)
Operating Income:
Electric transmission and distribution operations	$	173		$	155			(10	%)	$	340		$	335			(1	%)
Competition transition charge		14			11			(21	%)		44			32			(27	%)
Transition bond companies		32			30			(6	%)		96			90			(6	%)
Total Segment Operating Income	$	219		$	196			(11	%)	$	480		$	457			(5	%)
Electric Transmission & Distribution Operating Data:
Actual MWH Delivered
Residential		8,522,786			8,381,258			(2	%)		19,317,160			19,060,031			(1	%)
Total		22,829,685			22,725,500			—			59,238,907			58,560,692			(1	%)
Weather (average for service area):
Percentage of normal:
Cooling degree days		100	%		102	%		2	%		105	%		100	%		(5	%)
Heating degree days		0	%		0	%		0	%		60	%		114	%		54	%
Average number of metered customers:
Residential		1,740,079			1,782,281			2	%		1,729,348			1,767,431			2	%
Total		1,976,559			2,022,448			2	%		1,964,189			2,006,344			2	%

	Natural Gas Distribution
	Quarter Ended									Nine Months Ended
	September 30,						% Diff			September 30,						% Diff
	2006			2007			Fav/(Unfav)			2006			2007			Fav/(Unfav)
Results of Operations:
Revenues	$	485		$	458			(6	%)	$	2,514		$	2,601			3	%
Expenses:
Natural gas		298			267			10	%		1,787			1,845			(3	%)
Operation and maintenance		137			139			(1	%)		429			421			2	%
Depreciation and amortization		38			38			—			113			114			(1	%)
Taxes other than income taxes		23			22			4	%		95			92			3	%
Total		496			466			6	%		2,424			2,472			(2	%)
Operating Income (Loss)	$	(11	)	$	(8	)		27	%	$	90		$	129			43	%
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential		14			12			(14	%)		98			118			20	%
Commercial and Industrial		44			42			(5	%)		160			168			5	%
Total Throughput		58			54			(7	%)		258			286			11	%
Weather (average for service area)
Percentage of normal:
Heating degree days		104	%		75	%		(29	%)		81	%		98	%		17	%
Average number of customers:
Residential		2,862,020			2,910,041			2	%		2,875,345			2,927,122			2	%
Commercial and Industrial		240,083			246,021			2	%		243,011			246,382			1	%
Total		3,102,103			3,156,062			2	%		3,118,356			3,173,504			2	%

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

CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)

	Competitive Natural Gas Sales and Services
	Quarter Ended							Nine Months Ended
	September 30,				% Diff			September 30,				% Diff
	2006		2007		Fav/(Unfav)			2006		2007		Fav/(Unfav)
Results of Operations:
Revenues	$	830	$	770		(7	%)	$	2,743	$	2,715		(1	%)
Expenses:
Natural gas		809		756		7	%		2,673		2,631		2	%
Operation and maintenance		8		7		13	%		23		23		—
Depreciation and amortization		—		3		—			1		4		(300	%)
Taxes other than income taxes		1		—		—			2		1		50	%
Total		818		766		6	%		2,699		2,659		1	%
Operating Income	$	12	$	4		(67	%)	$	44	$	56		27	%
Competitive Natural Gas Sales and Services Operating Data:
Throughput data in BCF
Wholesale — third parties		90		74		(18	%)		251		241		(4	%)
Wholesale — affiliates		8		2		(75	%)		27		7		(74	%)
Retail & Pipeline		40		43		8	%		138		145		5	%
Total Throughput		138		119		(14	%)		416		393		(6	%)
Average number of customers:
Wholesale		140		233		66	%		140		235		68	%
Retail & Pipeline		6,351		6,743		6	%		6,554		6,779		3	%
Total		6,491		6,976		7	%		6,694		7,014		5	%

	Interstate Pipelines
	Quarter Ended							Nine Months Ended
	September 30,				% Diff			September 30,				% Diff
	2006		2007		Fav/(Unfav)			2006		2007		Fav/(Unfav)
Results of Operations:
Revenues	$	106	$	137		29	%	$	299	$	348		16	%
Expenses:
Natural gas		10		27		(170	%)		22		55		(150	%)
Operation and maintenance		33		29		12	%		98		85		13	%
Depreciation and amortization		10		11		(10	%)		28		32		(14	%)
Taxes other than income taxes		5		—		—			14		10		29	%
Total		58		67		(16	%)		162		182		(12	%)
Operating Income	$	48	$	70		46	%	$	137	$	166		21	%
Pipelines Operating Data:
Throughput data in BCF
Transportation		204		312		53	%		718		880		23	%
Total Throughput		204		312		53	%		718		880		23	%

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

CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)

	Field Services
	Quarter Ended									Nine Months Ended
	September 30,						% Diff			September 30,						% Diff
	2006			2007			Fav/(Unfav)			2006			2007			Fav/(Unfav)
Results of Operations:
Revenues	$	39		$	44			13	%	$	114		$	125			10	%
Expenses:
Natural gas		(1	)		(2	)		(100	%)		(4	)		(9	)		125	%
Operation and maintenance		15			17			(13	%)		42			49			(17	%)
Depreciation and amortization		3			2			33	%		8			8			—
Taxes other than income taxes		1			1			—			2			2			—
Total		18			18			—			48			50			(4	%)
Operating Income	$	21		$	26			24	%	$	66		$	75			14	%
Field Services Operating Data:
Throughput data in BCF
Gathering		97			104			7	%		279			297			6	%
Total Throughput		97			104			7	%		279			297			6	%

	Other Operations
	Quarter Ended									Nine Months Ended
	September 30,						% Diff			September 30,						% Diff
	2006			2007			Fav/(Unfav)			2006			2007			Fav/(Unfav)
Results of Operations:
Revenues	$	3		$	3			—		$	12		$	8			(33	%)
Expenses		8			4			50	%		19			9			53	%
Operating Loss	$	(5	)	$	(1	)		80	%	$	(7	)	$	(1	)		86	%

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

	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2006		2007		2006		2007
Capital Expenditures by Segment
Electric Transmission & Distribution	$	88	$	83	$	278	$	304
Natural Gas Distribution		48		58		133		135
Competitive Natural Gas Sales and Services		4		1		14		5
Interstate Pipelines		117		39		178		253
Field Services		18		15		41		55
Other Operations		4		5		18		22
Total	$	279	$	201	$	662	$	774

Interest Expense Detail
(Millions of Dollars)
(Unaudited)

	Quarter Ended						Nine Months Ended
	September 30,						September 30,
	2006			2007			2006			2007
Interest Expense Detail
Amortization of Deferred Financing Cost	$	14		$	11		$	40		$	42
Capitalization of Interest Cost		(3	)		(3	)		(6	)		(18	)
Transition Bond Interest Expense		32			30			98			93
Other Interest Expense		109			118			319			344
Total Interest Expense	$	152		$	156		$	451		$	461

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

CenterPoint Energy, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Millions of Dollars)
(Unaudited)

	December 31,		September 30,
	2006		2007
ASSETS
Current Assets:
Cash and cash equivalents	$	127	$	54
Other current assets		2,868		2,296
Total current assets		2,995		2,350
Property, Plant and Equipment, net		9,204		9,629
Other Assets:
Goodwill		1,705		1,705
Regulatory assets		3,290		3,139
Other non-current assets		439		480
Total other assets		5,434		5,324
Total Assets	$	17,633	$	17,303
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings	$	187	$	150
Current portion of transition bond long-term debt		147		159
Current portion of other long-term debt		1,051		1,195
Other current liabilities		2,836		1,881
Total current liabilities		4,221		3,385
Other Liabilities:
Accumulated deferred income taxes, net and investment tax credit		2,362		2,295
Regulatory liabilities		792		825
Other non-current liabilities		900		871
Total other liabilities		4,054		3,991
Long-term Debt:
Transition bond		2,260		2,101
Other		5,542		6,090
Total long-term debt		7,802		8,191
Shareholders’ Equity		1,556		1,736
Total Liabilities and Shareholders’ Equity	$	17,633	$	17,303

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

CenterPoint Energy, Inc. and Subsidiaries
Condensed Statements of Consolidated Cash Flows
(Millions of Dollars)
(Unaudited)

	Nine Months Ended
	September 30,
	2006			2007
Cash Flows from Operating Activities:
Net income	$	365		$	291
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		489			519
Deferred income taxes and investment tax credit		(87	)		23
Tax and interest reserves reductions related to ZENS and ACES		(119	)		—
Changes in net regulatory assets		65			57
Changes in other assets and liabilities		8			(410	)
Other, net		7			12
Net Cash Provided by Operating Activities		728			492
Net Cash Used in Investing Activities		(626	)		(933	)
Net Cash Provided by Financing Activities		109			368
Net Increase (Decrease) in Cash and Cash Equivalents		211			(73	)
Cash and Cash Equivalents at Beginning of Period		74			127
Cash and Cash Equivalents at End of Period	$	285		$	54

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