CenterPoint Energy (CNP) 8-K Centerpoint Energy Reports First Quarter 2008 Earnings

Exhibit 99.1

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CENTERPOINT ENERGY REPORTS FIRST QUARTER 2008 EARNINGS

     Houston, TX – April 30, 2008- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $123 million, or $0.36 per diluted share, for the first quarter of 2008 compared to $130 million, or $0.38 per diluted share, for the same period of 2007.

     “While higher natural gas prices had a negative impact on our regulated utilities and on the reported earnings of our competitive natural gas sales and services business, our overall financial results demonstrated the benefit of our balanced portfolio,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy.  “The investments we have made over the last several years in our interstate pipelines and field services businesses continue to make significant contributions to our profitability, and in contrast to economic slowdowns in some areas of the country, we continue to experience solid customer growth in our regulated electric and natural gas utilities.”

OPERATING INCOME BY SEGMENT

Electric Transmission & Distribution

     The electric transmission & distribution segment reported operating income of $91 million in the first quarter of 2008, consisting of $54 million from the regulated electric transmission & distribution utility operations (TDU), $5 million from the competition transition charge (CTC), and $32 million related to transition bonds. Operating income for the first quarter of 2007 was $104 million, consisting of $62 million from the TDU, $11 million from the CTC, and $31 million related to transition bonds.

     Operating income for the TDU for the first quarter of 2008 declined due to reduced usage, resulting in part from milder winter weather, and an increase in transmission costs and other operating expenses. This was partially offset by continued strong customer growth of over 52,000 metered customers since March 2007 and by higher revenues from ancillary services.

Natural Gas Distribution

     The natural gas distribution segment reported operating income of $121 million for the first quarter of 2008 compared to $129 million for the same period of 2007. The decrease was attributable to the impact of customer conservation and higher operating expenses primarily related to customer service and bad debts. The decrease was partially offset by continued customer growth of nearly 36,000 metered customers since March 2007 and the benefit of new rates implemented in late 2007.

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Interstate Pipelines

     The interstate pipelines segment reported operating income of $71 million for the first quarter of 2008 compared to $44 million for the same period of 2007. The increase was driven primarily by the new Carthage to Perryville pipeline, which went into commercial service in May 2007, and increased ancillary services.

Field Services

     The field services segment reported operating income of $45 million for the first quarter of 2008 compared to $22 million for the same period of 2007. Operating income increased from higher throughput, increased ancillary services, and $17 million associated with the sale of non-strategic assets and the settlement of a contractual dispute.

     In addition to operating income, this business had equity income of $4 million in the first quarter of 2008 compared to $2 million in the first quarter of 2007 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.

Competitive Natural Gas Sales and Services

     The competitive natural gas sales and services segment reported operating income of $6 million for the first quarter of 2008 compared to $56 million for the same period of 2007. The decline was partially due to reduced locational and seasonal price differentials. In addition, the first quarter of 2008 included charges of $22 million resulting from mark-to-market accounting for derivatives used to lock in economic margins of certain forward natural gas sales compared to charges of $8 million for the same period of 2007. The first quarter of 2008 also included $4 million in gains on sales of gas from inventory compared to $28 million for the first quarter of 2007.

DIVIDEND DECLARATION

     On April 24, 2008, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.1825 per share of common stock payable on June 10, 2008, to shareholders of record as of the close of business on May 16, 2008.

OUTLOOK REAFFIRMED FOR 2008

     CenterPoint Energy reaffirmed its 2008 earnings guidance of $1.15 to $1.25 per share. 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

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	Media:
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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 March 31, 2008.  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. 

WEBCAST OF EARNINGS CONFERENCE CALL

     CenterPoint Energy’s management will host an earnings conference call on Wednesday, April 30, 2008, 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 atwww.CenterPointEnergy.com. 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, 2007, CenterPoint Energy’s Form 10-Q for the period ended March 31, 2008, 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
	March 31,
	2007			2008
Revenues:
Electric Transmission & Distribution	$	406		$	409
Natural Gas Distribution		1,567			1,700
Competitive Natural Gas Sales and Services		1,064			1,120
Interstate Pipelines		90			133
Field Services		39			58
Other Operations		2			3
Eliminations		(62	)		(60	)
Total		3,106			3,363
Expenses:
Natural gas		2,150			2,393
Operation and maintenance		352			365
Depreciation and amortization		145			158
Taxes other than income taxes		106			111
Total		2,753			3,027
Operating Income		353			336
Other Income (Expense) :
Loss on Time Warner investment		(44	)		(54	)
Gain on indexed debt securities		41			50
Interest and other finance charges		(123	)		(115	)
Interest on transition bonds		(31	)		(33	)
Other — net		6			13
Total		(151	)		(139	)
Income Before Income Taxes		202			197
Income Tax Expense		(72	)		(74	)
Net Income	$	130		$	123

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
	March 31,
	2007			2008
Basic Earnings Per Common Share:
Net Income	$	0.41		$	0.38
Diluted Earnings Per Common Share:
Net Income	$	0.38		$	0.36
Dividends Declared per Common Share	$	0.17		$	0.1825
Weighted Average Common Shares Outstanding (000):
- Basic		318,060			327,279
- Diluted		340,103			339,448
Operating Income (Loss) by Segment
Electric Transmission & Distribution:
Electric Transmission and Distribution Operations	$	62		$	54
Competition Transition Charge		11			5
Total Electric Transmission and Distribution Utility	73				59
Transition Bond Companies		31			32
Total Electric Transmission & Distribution		104			91
Natural Gas Distribution		129			121
Competitive Natural Gas Sales and Services		56			6
Interstate Pipelines		44			71
Field Services		22			45
Other Operations		(2	)		2
Total	$	353		$	336

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
	March 31,						% Diff
	2007			2008			Fav/(Unfav)
Results of Operations:
Revenues:
Electric transmission and distribution utility	$	347		$	346			—
Transition bond companies		59			63			7	%
Total		406			409			1	%
Expenses:
Operation and maintenance		154			168			(9	%)
Depreciation and amortization		63			66			(5	%)
Taxes other than income taxes		57			53			7	%
Transition bond companies		28			31			(11	%)
Total		302			318			(5	%)
Operating Income	$	104		$	91			(13	%)
Operating Income:
Electric transmission and distribution operations	$	62		$	54			(13	%)
Competition transition charge		11			5			(55	%)
Transition bond companies		31			32			3	%
Total Segment Operating Income	$	104		$	91			(13	%)
Electric Transmission & Distribution Operating Data:
Actual MWH Delivered
Residential		4,658,059			4,403,312			(5	%)
Total		16,659,914			16,569,691			(1	%)
Weather (average for service area):
Percentage of 10-year average:
Cooling degree days		111	%		124	%		13	%
Heating degree days		117	%		96	%		(21	%)
Average number of metered customers:
Residential		1,752,264			1,801,272			3	%
Total		1,989,744			2,042,460			3	%

	Natural Gas Distribution
	Quarter Ended
	March 31,						% Diff
	2007			2008			Fav/(Unfav)
Results of Operations:
Revenues	$	1,567		$	1,700			8	%
Expenses:
Natural gas		1,212			1,333			(10	%)
Operation and maintenance		147			156			(6	%)
Depreciation and amortization		38			39			(3	%)
Taxes other than income taxes		41			51			(24	%)
Total		1,438			1,579			(10	%)
Operating Income	$	129		$	121			(6	%)
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential		86			84			(2	%)
Commercial and Industrial		81			83			2	%
Total Throughput		167			167			—
Weather (average for service area)
Percentage of 10-year average:
Heating degree days		99	%		106	%		7	%
Average number of customers:
Residential		2,946,203			2,975,591			1	%
Commercial and Industrial		245,576			250,988			2	%
Total		3,191,779			3,226,579			1	%

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
	March 31,				% Diff
	2007		2008		Fav/(Unfav)
Results of Operations:
Revenues	$	1,064	$	1,120		5	%
Expenses:
Natural gas		998		1,105		(11	%)
Operation and maintenance		9		8		11	%
Depreciation and amortization		—		1		—
Taxes other than income taxes		1		—		—
Total		1,008		1,114		(11	%)
Operating Income	$	56	$	6		(89	%)
Competitive Natural Gas Sales and Services Operating Data:
Throughput data in BCF
Wholesale — third parties		94		70		(26	%)
Wholesale — affiliates		3		2		(33	%)
Retail & Pipeline		58		66		14	%
Total Throughput		155		138		(11	%)
Average number of customers:
Wholesale		223		154		(31	%)
Retail & Pipeline		6,764		8,338		23	%
Total		6,987		8,492		22	%

	Interstate Pipelines
	Quarter Ended
	March 31,				% Diff
	2007		2008		Fav/(Unfav)
Results of Operations:
Revenues	$	90	$	133		48	%
Expenses:
Natural gas		4		15		(275	%)
Operation and maintenance		27		30		(11	%)
Depreciation and amortization		10		12		(20	%)
Taxes other than income taxes		5		5		—
Total		46		62		(35	%)
Operating Income	$	44	$	71		61	%
Pipelines Operating Data:
Throughput data in BCF
Transportation		294		424		44	%

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
	March 31,						% Diff
	2007			2008			Fav/(Unfav)
Results of Operations:
Revenues	$	39		$	58			49	%
Expenses:
Natural gas		(3	)		(2	)		(33	%)
Operation and maintenance		16			11			31	%
Depreciation and amortization		3			3			—
Taxes other than income taxes		1			1			—
Total		17			13			24	%
Operating Income	$	22		$	45			105	%
Field Services Operating Data:
Throughput data in BCF
Gathering		93			98			5	%

	Other Operations
	Quarter Ended
	March 31,					% Diff
	2007			2008		Fav/(Unfav)
Results of Operations:
Revenues	$	2		$	3		50	%
Expenses		4			1		75	%
Operating Income (Loss)	$	(2	)	$	2		200	%

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

	Quarter Ended
	March 31,
	2007		2008
Capital Expenditures by Segment
Electric Transmission & Distribution	$	110	$	89
Natural Gas Distribution		33		38
Competitive Natural Gas Sales and Services		2		1
Interstate Pipelines		154		28
Field Services		27		18
Other Operations		11		8
Total	$	337	$	182

Interest Expense Detail
(Millions of Dollars)
(Unaudited)

	Quarter Ended
	March 31,
	2007			2008
Interest Expense Detail
Amortization of Deferred Financing Cost	$	19		$	6
Capitalization of Interest Cost		(8	)		(3	)
Transition Bond Interest Expense		31			33
Other Interest Expense		112			112
Total Interest Expense	$	154		$	148

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,		March 31,
	2007		2008
ASSETS
Current Assets:
Cash and cash equivalents	$	129	$	70
Other current assets		2,659		2,281
Total current assets		2,788		2,351
Property, Plant and Equipment, net		9,740		9,802
Other Assets:
Goodwill		1,696		1,696
Regulatory assets		2,993		2,907
Other non-current assets		655		779
Total other assets		5,344		5,382
Total Assets	$	17,872	$	17,535
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings	$	232	$	200
Current portion of transition bond long-term debt		159		186
Current portion of other long-term debt		1,156		724
Other current liabilities		2,244		2,174
Total current liabilities		3,791		3,284
Other Liabilities:
Accumulated deferred income taxes, net and investment tax credit		2,266		2,258
Regulatory liabilities		828		795
Other non-current liabilities		813		772
Total other liabilities		3,907		3,825
Long-term Debt:
Transition bond		2,101		2,485
Other		6,263		6,061
Total long-term debt		8,364		8,546
Shareholders’ Equity		1,810		1,880
Total Liabilities and Shareholders’ Equity	$	17,872	$	17,535

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)

	Three Months Ended March 31,
	2007			2008
Cash Flows from Operating Activities:
Net income	$	130		$	123
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		164			165
Deferred income taxes		(13	)		27
Changes in net regulatory assets		22			14
Changes in other assets and liabilities		(56	)		226
Other, net		17			12
Net Cash Provided by Operating Activities		264			567
Net Cash Used in Investing Activities		(403	)		(312	)
Net Cash Provided by (Used in) Financing Activities		72			(314	)
Net Decrease in Cash and Cash Equivalents		(67	)		(59	)
Cash and Cash Equivalents at Beginning of Period		127			129
Cash and Cash Equivalents at End of Period	$	60		$	70

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