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

Exhibit 99.1

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CENTERPOINT ENERGY REPORTS SECOND QUARTER 2007 EARNINGS

     Houston, TX – August 2, 2007- CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $70 million, or $0.20 per diluted share, for the second quarter of 2007 compared to $194 million, or $0.61 per diluted share, for the same period of 2006.

     The second quarter 2006 results were favorably impacted by $140 million, or $0.44 per diluted share, due to an agreement reached on a settlement of a tax dispute with the Internal Revenue Service and the resolution of certain other legacy tax issues, but were negatively impacted by $21 million after-tax, 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 second quarter of 2006 would have been $75 million, or $0.24 per diluted share.

     For the six months ended June 30, 2007, net income was $200 million, or $0.58 per diluted share, compared to $282 million, or $0.89 per diluted share, for the same period of 2006. Excluding the impacts of the items discussed above and a related charge recorded in the first quarter of 2006 ($14 million, or $0.04 per diluted share), net income for the six months ended June 30, 2006, would have been $177 million, or $0.56 per diluted share.

     “Our interstate pipeline and field services businesses turned in strong performances this quarter primarily due to the completion of Phase I of our Carthage to Perryville pipeline and strong demand for gas gathering and ancillary services,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our gas distribution business continued its improved performance from a year ago. Despite the impacts of mild weather on our electric utility and the timing of expenses in our energy services business, we still had a very solid quarter overall. I believe these results demonstrate the value of our balanced portfolio of gas and electric businesses.”

OPERATING INCOME BY SEGMENT

Electric Transmission & Distribution

     The electric transmission & distribution segment reported operating income of $157 million in the second quarter of 2007, consisting of $118 million from the core regulated electric transmission & distribution utility (TDU), exclusive of an additional $10 million from the competition transition charge (CTC), and $29 million related to transition bonds. Operating income for the second quarter of 2006 was $151 million, consisting of $104 million from the TDU, exclusive of an additional $15 million from the CTC, and $32 million related to transition bonds.

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     Operating income for the second quarter of 2007 included a $17 million favorable settlement related to the final fuel reconciliation of the formerly integrated electric utility. Operating income for the second quarter of 2006 included a $32 million charge related to the UCOS settlement. Operating income for the TDU for the second quarter of 2007 was negatively impacted by lower usage primarily due to milder weather, a rate settlement implemented in October of 2006 and higher transmission costs. These impacts were partially offset by customer growth of over 43,000 metered customers since June 2006.

     Operating income for the six months ended June 30, 2007, was $261 million, consisting of $180 million from the TDU, exclusive of an additional $21 million from the CTC, and $60 million related to transition bonds. Operating income for the same period of 2006 was also $261 million, consisting of $166 million from the TDU, exclusive of an additional $31 million from the CTC, and $64 million related to transition bonds.

Natural Gas Distribution

     The natural gas distribution segment reported operating income of $8 million for the second quarter of 2007 compared to an operating loss of $2 million for the same period of 2006. The increase in operating income was driven primarily by labor and benefit savings associated with staff reductions in 2006, customer growth of nearly 60,000 customers since June 2006 and a prior year write-off of certain rate case expenses. The increase in operating income was partially offset by higher expenses principally associated with initiatives undertaken to improve customer service.

     Operating income for the six months ended June 30, 2007, was $137 million compared to $101 million for the same period of 2006.

Competitive Natural Gas Sales and Services

     The competitive natural gas sales and services segment reported an operating loss of $4 million for the second quarter of 2007 compared to operating income of $7 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 second quarter of 2007 included a $6 million charge 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 an $8 million gain resulting from mark-to-market accounting and a $17 million inventory write-down for the same period of 2006.

     Operating income for the six months ended June 30, 2007, was $52 million compared to $32 million for the same period of 2006.

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Interstate Pipelines

     The interstate pipelines segment reported operating income of $52 million for the second quarter of 2007 compared to $40 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, and by increased ancillary services.

     Operating income for the six months ended June 30, 2007, was $96 million compared to $89 million for the same period of 2006.

Field Services

     The field services segment reported operating income of $27 million for the second quarter of 2007 compared to $21 million for the same period of 2006. Operating income increased from higher throughput and increased ancillary services. In addition, this business recorded equity income of $2 million in each of the second 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 six months ended June 30, 2007, was $49 million compared to $45 million for the same period of 2006. Equity income from the jointly-owned gas processing plant was $4 million for the six months ended June 30, 2007, compared to $5 million for the same period of 2006.

DIVIDEND DECLARATION

     On July 26, 2007, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.17 per share of common stock payable on September 10, 2007, to shareholders of record as of the close of business on August 16, 2007.

OUTLOOK FOR 2007

     CenterPoint Energy continues to expect diluted earnings per share for 2007 to be in the 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.

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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 June 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.

WEBCAST OF EARNINGS CONFERENCE CALL

     CenterPoint Energy’s management will host an earnings conference call on Thursday, August 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, and interstate pipeline 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 at www.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 period ended March 31, 2007, CenterPoint Energy’s Form 10-Q for the period ended June 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 June 30,						Six Months Ended June 30,
	2006			2007			2006			2007
Revenues:
Electric Transmission & Distribution	$	456		$	465		$	841		$	871
Natural Gas Distribution		549			576			2,029			2,143
Competitive Natural Gas Sales and Services		750			881			1,913			1,945
Interstate Pipelines		104			121			193			211
Field Services		34			42			75			81
Other Operations		5			3			9			5
Eliminations		(55	)		(55	)		(140	)		(117	)
Total		1,843			2,033			4,920			5,139
Expenses:
Natural gas		1,035			1,208			3,228			3,358
Operation and maintenance		340			330			671			682
Depreciation and amortization		153			160			293			305
Taxes other than income taxes		95			93			202			199
Total		1,623			1,791			4,394			4,544
Operating Income		220			242			526			595
Other Income (Expense) :
Gain (Loss) on Time Warner investment		11			28			(3	)		(16	)
Gain (Loss) on indexed debt securities		(11	)		(27	)		(1	)		14
Interest and other finance charges		(118	)		(119	)		(233	)		(242	)
Interest on transition bonds		(33	)		(32	)		(66	)		(63	)
Other — net		9			6			15			12
Total		(142	)		(144	)		(288	)		(295	)
Income from Before Income Taxes		78			98			238			300
Income Tax (Expense) Benefit		116			(28	)		44			(100	)
Net Income	$	194		$	70		$	282		$	200

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						Six Months Ended
	June 30,						June 30,
	2006			2007			2006			2007
Basic Earnings Per Common Share:
Net Income	$	0.62		$	0.22		$	0.91		$	0.62
Diluted Earnings Per Common Share:
Net Income	$	0.61		$	0.20		$	0.89		$	0.58
Dividends Declared per Common Share	$	0.15		$	0.17		$	0.30		$	0.34
Weighted Average Common Shares Outstanding (000):
- Basic		311,440			320,927			311,145			319,501
- Diluted		316,816			343,770			317,744			342,024
Operating Income (Loss) by Segment
Electric Transmission & Distribution:
Transmission & Distribution Utility	$	119		$	128		$	197		$	201
Transition Bond Companies		32			29			64			60
Total Electric Transmission & Distribution		151			157			261			261
Natural Gas Distribution		(2	)		8			101			137
Competitive Natural Gas Sales and Services		7			(4	)		32			52
Interstate Pipelines		40			52			89			96
Field Services		21			27			45			49
Other Operations		3			2			(2	)		—
Total	$	220		$	242		$	526		$	595

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									Six Months Ended
	June 30,						% Diff			June 30,						% Diff
	2006			2007			Fav/(Unfav)			2006			2007			Fav/(Unfav)
Results of Operations:
Revenues:
Electric transmission and distribution utility	$	386		$	395			2	%	$	717		$	742			3	%
Transition bond companies		70			70			—			124			129			4	%
Total		456			465			2	%		841			871			4	%
Expenses:
Operation and maintenance		147			150			(2	%)		281			304			(8	%)
Depreciation and amortization		61			61			—			124			124			—
Taxes other than income taxes		59			56			5	%		115			113			2	%
Transition bond companies		38			41			(8	%)		60			69			(15	%)
Total		305			308			(1	%)		580			610			(5	%)
Operating Income	$	151		$	157			4	%	$	261		$	261			—
Operating Income — Electric transmission and distribution utility		119			128			8	%		197			201			2	%
Operating Income — Transition bond companies		32			29			(9	%)		64			60			(6	%)
Total Segment Operating Income	$	151		$	157			4	%	$	261		$	261			—
Electric Transmission & Distribution Operating Data:
Actual MWH Delivered
Residential		6,807,984			6,020,714			(12	%)		10,794,374			10,678,773			(1	%)
Total		20,422,341			19,175,278			(6	%)		36,409,221			35,835,191			(2	%)
Weather (average for service area):
Percentage of normal:
Cooling degree days		111	%		94	%		(17	%)		114	%		96	%		(18	%)
Heating degree days		0	%		197	%		197	%		60	%		114	%		54	%
Average number of metered customers:
Residential		1,730,130			1,767,749			2	%		1,723,983			1,760,006			2	%
Total		1,965,180			2,006,840			2	%		1,958,005			1,998,291			2	%

	Natural Gas Distribution
	Quarter Ended									Six Months Ended
	June 30,						% Diff			June 30,						% Diff
	2006			2007			Fav/(Unfav)			2006			2007			Fav/(Unfav)
Results of Operations:
Revenues	$	549		$	576			5	%	$	2,029		$	2,143			6	%
Expenses:
Natural gas		343			366			(7	%)		1,489			1,578			(6	%)
Operation and maintenance		142			135			5	%		292			282			3	%
Depreciation and amortization		37			38			(3	%)		75			76			(1	%)
Taxes other than income taxes		29			29			—			72			70			3	%
Total		551			568			(3	%)		1,928			2,006			(4	%)
Operating Income (Loss)	$	(2	)	$	8			500	%	$	101		$	137			36	%
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential		17			20			18	%		84			106			26	%
Commercial and Industrial		44			44			—			116			126			9	%
Total Throughput		61			64			5	%		200			232			16	%
Weather (average for service area)
Percentage of normal:
Heating degree days		60	%		95	%		35	%		81	%		99	%		18	%
Average number of customers:
Residential		2,871,107			2,925,120			2	%		2,882,008			2,935,661			2	%
Commercial and Industrial		243,420			247,550			2	%		244,475			246,564			1	%
Total		3,114,527			3,172,670			2	%		3,126,483			3,182,225			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								Six Months Ended
	June 30,					% Diff			June 30,				% Diff
	2006		2007			Fav/(Unfav)			2006		2007		Fav/(Unfav)
Results of Operations:
Revenues	$	750	$	881			17	%	$	1,913	$	1,945		2	%
Expenses:
Natural gas		735		877			(19	%)		1,864		1,875		(1	%)
Operation and maintenance		7		7			—			15		16		(7	%)
Depreciation and amortization		1		1			—			1		1		—
Taxes other than income taxes		—		—			—			1		1		—
Total		743		885			(19	%)		1,881		1,893		(1	%)
Operating Income(Loss)	$	7	$	(4	)		(157	%)	$	32	$	52		63	%
Competitive Natural Gas Sales and Services Operating Data:
Throughput data in BCF
Wholesale — third parties		72		74			3	%		161		168		4	%
Wholesale — affiliates		8		2			(75	%)		19		5		(74	%)
Retail & Pipeline		41		44			7	%		99		102		3	%
Total Throughput		121		120			(1	%)		279		275		(1	%)
Average number of customers:
Wholesale		132		248			88	%		138		235		70	%
Retail & Pipeline		6,604		6,829			3	%		6,639		6,797		2	%
Total		6,736		7,077			5	%		6,777		7,032		4	%

	Interstate Pipelines
	Quarter Ended							Six Months Ended
	June 30,				% Diff			June 30,				% Diff
	2006		2007		Fav/(Unfav)			2006		2007		Fav/(Unfav)
Results of Operations:
Revenues	$	104	$	121		16	%	$	193	$	211		9	%
Expenses:
Natural gas		14		24		(71	%)		12		28		(133	%)
Operation and maintenance		38		29		24	%		65		56		14	%
Depreciation and amortization		8		11		(38	%)		18		21		(17	%)
Taxes other than income taxes		4		5		(25	%)		9		10		(11	%)
Total		64		69		(8	%)		104		115		(11	%)
Operating Income	$	40	$	52		30	%	$	89	$	96		8	%
Pipelines Operating Data:
Throughput data in BCF
Transportation		240		274		14	%		514		568		11	%
Total Throughput		240		274		14	%		514		568		11	%

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									Six Months Ended
	June 30,						% Diff			June 30,						% Diff
	2006			2007			Fav/(Unfav)			2006			2007			Fav/(Unfav)
Results of Operations:
Revenues	$	34		$	42			24	%	$	75		$	81			8	%
Expenses:
Natural gas		(4	)		(4	)		—			(3	)		(7	)		133	%
Operation and maintenance		14			16			(14	%)		27			32			(19	%)
Depreciation and amortization		2			3			(50	%)		5			6			(20	%)
Taxes other than income taxes		1			—			100	%		1			1			—
Total		13			15			(15	%)		30			32			(7	%)
Operating Income	$	21		$	27			29	%	$	45		$	49			9	%
Field Services Operating Data:
Throughput data in BCF
Gathering		94			100			6	%		182			193			6	%
Total Throughput		94			100			6	%		182			193			6	%

	Other Operations
	Quarter Ended							Six Months Ended
	June 30,				% Diff			June 30,					% Diff
	2006		2007		Fav/(Unfav)			2006			2007		Fav/(Unfav)
Results of Operations:
Revenues	$	5	$	3		(40	%)	$	9		$	5		(44	%)
Expenses		2		1		50	%		11			5		55	%
Operating Income(Loss)	$	3	$	2		(33	%)	$	(2	)	$	—		100	%

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

	Quarter Ended				Six Months Ended
	June 30,				June 30,
	2006		2007		2006		2007
Capital Expenditures by Segment
Electric Transmission & Distribution	$	111	$	111	$	190	$	221
Natural Gas Distribution		45		44		85		77
Competitive Natural Gas Sales and Services		4		2		10		4
Interstate Pipelines		42		60		61		214
Field Services		12		13		23		40
Other Operations		4		6		14		17
Total	$	218	$	236	$	383	$	573

Interest Expense Detail
(Millions of Dollars)
(Unaudited)

	Quarter Ended						Six Months Ended
	June 30,						June 30,
	2006			2007			2006			2007
Interest Expense Detail
Amortization of Deferred Financing Cost	$	13		$	12		$	26		$	31
Capitalization of Interest Cost		(2	)		(7	)		(3	)		(15	)
Transition Bond Interest Expense		33			32			66			63
Other Interest Expense		107			114			210			226
Total Interest Expense	$	151		$	151		$	299		$	305

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,		June 30,
	2006		2007
ASSETS
Current Assets:
Cash and cash equivalents	$	127	$	112
Other current assets		2,868		2,285
Total current assets		2,995		2,397
Property, Plant and Equipment, net		9,204		9,549
Other Assets:
Goodwill		1,709		1,709
Regulatory assets		3,290		3,209
Other non-current assets		435		411
Total other assets		5,434		5,329
Total Assets	$	17,633	$	17,275
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings	$	187	$	225
Current portion of transition bond long-term debt		147		152
Current portion of other long-term debt		1,051		994
Other current liabilities		2,836		2,090
Total current liabilities		4,221		3,461
Other Liabilities:
Accumulated deferred income taxes, net and investment tax credit		2,362		2,295
Regulatory liabilities		792		822
Other non-current liabilities		900		840
Total other liabilities		4,054		3,957
Long-term Debt:
Transition bond		2,260		2,183
Other		5,542		5,988
Total long-term debt		7,802		8,171
Shareholders’ Equity		1,556		1,686
Total Liabilities and Shareholders’ Equity	$	17,633	$	17,275

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)

	Six Months Ended June 30,
	2006			2007
Cash Flows from Operating Activities:
Net income	$	282		$	200
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		321			338
Deferred income taxes and investment tax credit		(109	)		12
Tax and interest reserves reductions related to ZENS and ACES		(119	)		—
Changes in net regulatory assets		54			31
Changes in other assets and liabilities		73			(164	)
Other, net		15			10
Net Cash Provided by Operating Activities		517			427
Net Cash Used in Investing Activities		(396	)		(709	)
Net Cash Provided by Financing Activities		202			267
Net Increase (Decrease) in Cash and Cash Equivalents		323			(15	)
Cash and Cash Equivalents at Beginning of Period		74			127
Cash and Cash Equivalents at End of Period	$	397		$	112

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