CenterPoint Energy (CNP) 10-K 26 Feb 10 2009 FY Annual report Financial data

STATEMENTS OF CONSOLIDATED INCO

STATEMENTS OF CONSOLIDATED INCOME (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Income Statement [Abstract]
Revenues	$8,281	$11,322	$9,623
Expenses:
Natural gas	4,371	7,466	5,995
Operation and maintenance	1,664	1,502	1,440
Depreciation and amortization	743	708	631
Taxes other than income taxes	379	373	372
Total	7,157	10,049	8,438
Operating Income	1,124	1,273	1,185
Other Income (Expense):
Gain (loss) on marketable securities	82	(139)	(114)
Gain (loss) on indexed debt securities	(68)	128	111
Interest and other finance charges	(513)	(468)	(509)
Interest on transition and system restoration bonds	(131)	(136)	(123)
Distribution from AOL Time Warner litigation settlement	3	0	32
Additional distribution to ZENS holders	(3)	0	(27)
Equity in earnings of unconsolidated affiliates	15	51	16
Other, net	39	14	17
Total	(576)	(550)	(597)
Income Before Income Taxes	548	723	588
Income tax expense	(176)	(277)	(193)
Net Income	$372	$446	$395
Basic Earnings Per Share	1.02	1.32	1.23
Diluted Earnings Per Share	1.01	1.3	1.15

STATEMENTS OF CONSOLIDATED COMP

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Statement of Income and Comprehensive Income [Abstract]
Net Income	$372	$446	$395
Other comprehensive income (loss):
Adjustment to pension and other postretirement plans (net of tax of $28, $32 and $2)	7	(79)	34
Net deferred gain (loss) from cash flow hedges (net of tax of $6, $2 and $-0-)	0	(4)	11
Reclassification of deferred gain from cash flow hedges realized in net income (net of tax of $14, $2 and $-0-)	0	(4)	(20)
Other comprehensive income (loss)	7	(87)	25
Comprehensive income	$379	$359	$420

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current Assets:
Cash and cash equivalents	$740	$167
Investment in marketable securities	300	218
Accounts receivable, net	790	1,009
Accrued unbilled revenues	485	541
Inventory	327	569
Non-trading derivative assets	39	118
Prepaid expense and other current assets	223	413
Total current assets	2,904	3,035
Property, Plant and Equipment, net	10,788	10,296
Other Assets:
Goodwill	1,696	1,696
Regulatory assets	3,677	3,684
Non-trading derivative assets	15	20
Investment in unconsolidated affiliates	463	345
Notes receivable from unconsolidated affiliates	0	323
Other	230	277
Total other assets	6,081	6,345
Total Assets	19,773	19,676
Current Liabilities:
Short-term borrowings	55	153
Current portion of transition and system restoration bonds long-term debt	241	208
Current portion of indexed debt	121	117
Current portion of other long-term debt	541	8
Indexed debt securities derivative	201	133
Accounts payable	648	897
Taxes accrued	148	189
Interest accrued	181	180
Non-trading derivative liabilities	51	87
Accumulated deferred income taxes, net	406	372
Other	445	504
Total current liabilities	3,038	2,848
Other Liabilities:
Accumulated deferred income taxes, net	2,776	2,608
Unamortized investment tax credits	16	24
Non-trading derivative liabilities	42	47
Benefit obligations	861	849
Regulatory liabilities	921	821
Other	361	276
Total other liabilities	4,977	4,625
Long-term Debt:
Transition and system restoration bonds	2,805	2,381
Other	6,314	7,800
Total long-term debt	9,119	10,181
Commitments and C...
Shareholders' Equity	2,639	2,022
Total Liabilities and Shareholders' Equity	$19,773	$19,676

CONDENSED STATEMENTS OF CONSOLI

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows from Operating Activities:
Net Income	$372	$446	$395
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	743	708	631
Amortization of deferred financing costs	37	29	69
Deferred income taxes	269	487	0
Unrealized loss (gain) on marketable securities	(82)	139	114
Unrealized loss (gain) on indexed debt securities	68	(128)	(111)
Write-down of natural gas inventory	6	30	11
Equity in earnings of unconsolidated affiliates, net of distributions	(3)	(51)	(13)
Changes in other assets and liabilities:
Accounts receivable and unbilled revenues, net	283	(82)	0
Inventory	236	(109)	(102)
Accounts payable	(237)	87	(185)
Fuel cost over (under) recovery	(5)	45	(93)
Non-trading derivatives, net	28	(25)	11
Margin deposits, net	116	(182)	65
Interest and taxes accrued	(41)	(118)	(33)
Net regulatory assets and liabilities	0	(366)	81
Other current assets	27	(27)	13
Other current liabilities	6	29	(20)
Other assets	(1)	(20)	(20)
Other liabilities	3	(8)	(51)
Other, net	16	(33)	12
Net cash provided by operating activities	1,841	851	774
Cash Flows from Investing Activities:
Capital expenditures	(1,160)	(1,020)	(1,114)
Decrease (increase) in restricted cash of transition and system restoration bond companies	26	(11)	(1)
Decrease (increase) in notes receivable from unconsolidated affiliates	323	(175)	(148)
Investment in unconsolidated affiliates	(115)	(206)	(39)
Other, net	30	44	2
Net cash used in investing activities	(896)	(1,368)	(1,300)
Cash Flows from Financing Activities:
Increase (decrease) in short-term borrowings, net	(98)	(79)	45
Revolving credit facilities, net	(1,441)	1,110	331
Proceeds from long-term debt	1,165	1,088	900
Payments of long-term debt	(222)	(1,373)	(548)
Debt issuance costs	(10)	(26)	(9)
Payment of common stock dividends	(276)	(246)	(218)
Proceeds from issuance of common stock, net	504	80	22
Other, net	6	1	5
Net cash provided by (used in) financing activities	(372)	555	528
Net Increase in Cash and Cash Equivalents	573	38	2
Cash and Cash Equivalents at Beginning of Year	167	129	127
Cash and Cash Equivalents at End of Year	740	167	129
Cash Payments:
Interest, net of capitalized interest	624	586	572
Income taxes (refunds), net	(9)	(84)	205
Non-cash transactions:
Accounts payable related to capital expenditures	$84	$96	$75

STATEMENTS OF CONSOLIDATED SHAR

STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY (USD $)
In Millions	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance, beginning of year (in shares) at Dec. 31, 2006	314
Balance, beginning of year at Dec. 31, 2006	$3	$2,977	($1,355)
Cumulative effect of adoption of convertible debt pronouncement (See Note 2(o))		23	(18)
Cumulative effect of change in accounting principle (see Note 2(p))			0
Balance, beginning of year (as adjusted)		3,000	(1,373)
Issuances related to benefit and investment plans	0	46
Issuances related to benefit and investment plans (in shares)	2
Issuances related to convertible debt conversions	0
Issuances related to convertible debt conversions (in shares)	7
Issuances related to public offerings	0
Issuances related to public offerings (in shares)	0
Issuances related to public offerings, net of issuance costs		0
Net Income			395		395
Cumulative effect of uncertain tax positions standard			2
Common stock dividends - $0.68 per share in 2007, $0.73 per share in 2008, and $0.76 per share in 2009			(218)
Adjustment to pension and postretirement				(48)
Net deferred gain (loss) from cash flow hedges				4
Balance, end of year at Dec. 31, 2007	3	3,046	(1,194)	(44)	1,811
Balance, end of year (in shares) at Dec. 31, 2007	323
Cumulative effect of adoption of convertible debt pronouncement (See Note 2(o))		0	0
Cumulative effect of change in accounting principle (see Note 2(p))			(15)
Balance, beginning of year (as adjusted)		3,046	(1,209)
Issuances related to benefit and investment plans	0	112
Issuances related to benefit and investment plans (in shares)	6
Issuances related to convertible debt conversions	0
Issuances related to convertible debt conversions (in shares)	17
Issuances related to public offerings	0
Issuances related to public offerings (in shares)	0
Issuances related to public offerings, net of issuance costs		0
Net Income			446		446
Cumulative effect of uncertain tax positions standard			0
Common stock dividends - $0.68 per share in 2007, $0.73 per share in 2008, and $0.76 per share in 2009			(245)
Adjustment to pension and postretirement				(127)
Net deferred gain (loss) from cash flow hedges				(4)
Balance, end of year at Dec. 31, 2008	3	3,158	(1,008)	(131)	2,022
Balance, end of year (in shares) at Dec. 31, 2008	346
Cumulative effect of adoption of convertible debt pronouncement (See Note 2(o))		0	0
Cumulative effect of change in accounting principle (see Note 2(p))			0
Balance, beginning of year (as adjusted)		3,158	(1,008)
Issuances related to benefit and investment plans	0	86
Issuances related to benefit and investment plans (in shares)	7
Issuances related to convertible debt conversions	0
Issuances related to convertible debt conversions (in shares)	0
Issuances related to public offerings	1
Issuances related to public offerings (in shares)	38
Issuances related to public offerings, net of issuance costs		427
Net Income			372		372
Cumulative effect of uncertain tax positions standard			0
Common stock dividends - $0.68 per share in 2007, $0.73 per share in 2008, and $0.76 per share in 2009			(276)
Adjustment to pension and postretirement				(120)
Net deferred gain (loss) from cash flow hedges				(4)
Balance, end of year at Dec. 31, 2009	$4	$3,671	($912)	($124)	$2,639
Balance, end of year (in shares) at Dec. 31, 2009	391

Sheet1

(1) Background
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Background	(1)Background CenterPoint Energy, Inc. (CenterPoint Energy) is a public utility holding company. CenterPoint Energys operating subsidiaries own and operate electric transmission and distribution facilities, natural gas distribution facilities, interstate pipelines and natural gas gathering, processing and treating facilities. As of December31, 2009, CenterPoint Energys indirect wholly owned subsidiaries included: CenterPoint Energy Houston Electric, LLC (CenterPoint Houston), which engages in the electric transmission and distribution business in a 5,000-square mile area of the Texas Gulf Coast that includes the city of Houston;and CenterPoint Energy Resources Corp. (CERC Corp. and, together with its subsidiaries, CERC), which owns and operates natural gas distribution systems in six states. Subsidiaries of CERC own interstate natural gas pipelines and gas gathering systems and provide various ancillary services. A wholly owned subsidiary of CERC Corp. offers variable and fixed-price physical natural gas supplies primarily to commercial and industrial customers and electric and gas utilities. For a description of CenterPoint Energys reportable business segments, see Note14.

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(2) Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Summary of Significant Accounting Policies	(2)Summary of Significant Accounting Policies (a) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (b) Principles of Consolidation The accounts of CenterPoint Energy and its wholly owned and majority owned subsidiaries are included in the consolidated financial statements. All intercompany transactions and balances are eliminated in consolidation. CenterPoint Energy uses the equity method of accounting for investments in entities in which CenterPoint Energy has an ownership interest between 20% and 50% and exercises significant influence. CenterPoint Energys investments in unconsolidated affiliates include a 50% ownership interest in Southeast Supply Header, LLC (SESH) which owns and operates a 270-mile interstate natural gas pipeline and a 50% interest in Waskom Gas Processing Company, a Texas general partnership, which owns and operates a natural gas processing plant.Other investments, excluding marketable securities, are carried at cost.During 2009, CenterPoint Energy invested $137 million in SESH and received a capital distribution of $23 million from SESH. (c) Revenues CenterPoint Energy records revenue for electricity delivery and natural gas sales and services under the accrual method and these revenues are recognized upon delivery to customers. Electricity deliveries not billed by month-end are accrued based on daily supply volumes, applicable rates and analyses reflecting significant historical trends and experience. Natural gas sales not billed by month-end are accrued based upon estimated purchased gas volumes, estimated lost and unaccounted for gas and currently effective tariff rates. The Interstate Pipelines and Field Services business segments record revenues as transportation and processing services are provided. (d) Long-lived Assets and Intangibles CenterPoint Energy records property, plant and equipment at historical cost. CenterPoint Energy expenses repair and maintenance costs as incurred. Property, plant and equipment include the following: Weighted Average Useful Lives December31, (Years) 2008 2009 (In millions) Electric Transmission Distribution 27 $ 7,256 $ 7,325 Natural Gas Distribution 31 3,266 3,436 Competitive Natural Gas Sales and Services 26 67 69 Interstate Pipelines 58 2,334 2,524 Field Services 51 601 931 Other property 26 482 485 Total 14,006 14,770 Accumulated depreciation and amortization: Electric Transmission Distribution 2,652 2,737 Natural Gas Distribution 708 825 Competitive Natural Gas Sales and Services 11

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(3) Regulatory Matters
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Regulatory Matters	(3)Regulatory Matters (a) Hurricane Ike CenterPoint Houstons electric delivery system suffered substantial damage as a result of Hurricane Ike, which struck the upper Texas coast in September2008. As is common with electric utilities serving coastal regions, the poles, towers, wires, street lights and pole mounted equipment that comprise CenterPoint Houstons transmission and distribution system are not covered by property insurance, but office buildings and warehouses and their contents and substations are covered by insurance that provides for a maximum deductible of $10million. Current estimates are that total losses to property covered by this insurance were approximately $30million. CenterPoint Houston deferred the uninsured system restoration costs as management believed it was probable that such costs would be recovered through the regulatory process. As a result, system restoration costs did not affect CenterPoint Energys or CenterPoint Houstons reported operating income for 2008 or 2009. Legislation enacted by the Texas Legislature in April 2009 authorized the Texas Utility Commission to conduct proceedings to determine the amount of system restoration costs and related costs associated with hurricanes or other major storms that utilities are entitled to recover, and to issue financing orders that would permit a utility like CenterPoint Houston to recover the distribution portion of those costs and related carrying costs through the issuance of non-recourse system restoration bonds similar to the securitization bonds issued previously.The legislation also allowed such a utility to recover, or defer for future recovery, the transmission portion of its system restoration costs through the existing mechanisms established to recover transmission costs. Pursuant to such legislation, CenterPoint Houston filed with the Texas Utility Commission an application for review and approval for recovery of approximately $678million, including approximately $608million in system restoration costs identified as of the end of February 2009, plus $2million in regulatory expenses, $13million in certain debt issuance costs and $55million in incurred and projected carrying costs calculated through August 2009. In July2009, CenterPoint Houston announced a settlement agreement with the parties to the proceeding.Under that settlement agreement, CenterPoint Houston was entitled to recover a total of $663million in costs relating to Hurricane Ike, along with carryingcosts from September 1, 2009 until system restoration bonds were issued. The Texas Utility Commission issued an order in August 2009 approving CenterPoint Houstons application and the settlement agreement and authorizing recovery of $663million, of which $643million was attributable to distribution service and eligible for securitization and the remaining $20million was attributable to transmission service and eligible for recovery through the existing mechanisms established to recover transmission costs. In July 2009, CenterPoint Houston filed with the Texas Utility Commission its application for a financing order to recover the portion of approved costs related to distributi

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(4) Derivative Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Derivative Instruments	(4)Derivative Instruments CenterPoint Energy is exposed to various market risks. These risks arise from transactions entered into in the normal course of business. CenterPoint Energy utilizes derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices, weather and interest rates on its operating results and cash flows. (a) Non-Trading Activities Derivative Instruments. CenterPoint Energy enters into certain derivative instruments to manage physical commodity price risks and does not engage in proprietary or speculative commodity trading.These financial instruments do not qualify or are not designated as cash flow or fair value hedges. During the year ended December31, 2007, CenterPoint Energy recorded increased natural gas expense from unrealized net losses of $10million.During the year ended December 31, 2008, CenterPoint Energy recorded increased natural gas revenues from unrealized net gains of $101million and increased natural gas expense from unrealized net losses of $88million, a net unrealized gain of $13million.During the year ended December 31, 2009, CenterPoint Energy recorded decreased revenues from unrealized net losses of $80million and decreased natural gas expense from unrealized net gains of $57million, a net unrealized loss of $23million. In prior years, CenterPoint Energy entered into certain derivative instruments that were designated as cash flow hedges. The objective of these derivative instruments was to hedge the price risk associated with natural gas purchases and sales to reduce cash flow variability related to meeting CenterPoint Energys wholesale and retail customer obligations. In 2007, CenterPoint Energy discontinued designating these instruments as cash flow hedges.As of December 31, 2009, there are no remaining amounts deferred in other comprehensive income related to these instruments that had previously been designated as cash flow hedges. Weather Hedges. CenterPoint Energy has weather normalization or other rate mechanisms that mitigate the impact of weather on its gas operations in Arkansas, Louisiana, Oklahoma and a portion of Texas. The remaining Gas Operations jurisdictions do not have such mechanisms. As a result, fluctuations from normal weather may have a significant positive or negative effect on the results of the gas operations in the remaining jurisdictions and in CenterPoint Houstons service territory. In 2007, 2008 and 2009, CenterPoint Energy entered into heating-degree day swaps to mitigate the effect of fluctuations from normal weather on its financial position and cash flows for the respective winter heating seasons.The swaps were based on ten-year normal weather. During the years ended December31, 2007, 2008 and 2009, CenterPoint Energy recognized losses of $-0-, $17million and $7million, respectively, related to these swaps.The losses were substantially offset by increased revenues due to colder than normal weather. Weather hedge losses are included in revenues in the Statements of Consolidated Income. Interest Rate Swaps.During 2002, CenterPoint Energy settled forward-starting interest rate sw

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(5) Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Fair Value Measurements	(5)Fair Value Measurements Effective January1, 2008, CenterPoint Energy adopted new accounting guidance on fair value measurements which requires additional disclosures about CenterPoint Energys financial assets and liabilities that are measured at fair value.Effective January1, 2009, CenterPoint Energy adopted this new guidance for nonfinancial assets and liabilities, which adoption had no impact on CenterPoint Energys financial position, results of operations or cash flows.Beginning in January 2008, assets and liabilities recorded at fair value in the Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in this guidance and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.The types of assets carried at Level 1 fair value generally are financial derivatives, investments and equity securities listed in active markets. Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability.Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Unobservable inputs reflect CenterPoint Energys judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. CenterPoint Energy develops these inputs based on the best information available, including CenterPoint Energys own data.CenterPoint Energys Level 3 derivative instruments primarily consist of options that are not traded on recognized exchanges and are valued using option pricing models. The following tables present information about CenterPoint Energys assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December31, 2008 and 2009, and indicate the fair value hierarchy of the valuation techniques utilized by CenterPoint Energy to determine such fair value. Quoted Prices in Active Markets forIdentical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustments (1) Balance as of De

(6) Indexed Debt Securities

(6) Indexed Debt Securities (ZENS) and Time Warner Securities
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Indexed Debt Securities (ZENS) and Time Warner Securities	(6)Indexed Debt Securities (ZENS) and Time Warner Securities (a) Investment in Time Warner Securities In 1995, CenterPoint Energy sold a cable television subsidiary to TW and received TW convertible preferred stock (TW Preferred) as partial consideration. In July 1999, CenterPoint Energy converted its 11million shares of TW Preferred into 45.8million shares of TW common stock (TW Common). In March 2009, TW spun off its ownership of Time Warner Cable Inc. (TWC) by distributing 0.08367 shares of TWC common stock (TWC Common) for every share of TW Common held.Subsequently, in March 2009 TW declared a 1-for-3 reverse stock split.In December 2009, TW spun off its ownership in AOL Inc. (AOL) by distributing one share of AOL common stock (AOL Common) for every 11 shares of TW Common held.A subsidiary of CenterPoint Energy now holds 7.2million shares of TW Common, 1.8million shares of TWC Common and 0.7million shares of AOL Common (together with the TW Common and TWC Common, the TW Securities) which are classified as trading securities and are expected to be held to facilitate CenterPoint Energys ability to meet its obligation under the 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 (ZENS). Unrealized gains and losses resulting from changes in the market value of the TW Securities are recorded in CenterPoint Energys Statements of Consolidated Income. (b) ZENS In September 1999, we issued ZENS having an original principal amount of $1.0billion of which $840million remain outstanding at December31, 2009. Each ZENS note was originally exchangeable at the holders option at any time for an amount of cash equal to 95% of the market value of the reference shares of TW Common attributable to such note. The number and identity of the reference shares attributable to each ZENS note are adjusted for certain corporate events. As of December31, 2009, the reference shares for each ZENS note consisted of 0.5 share of TW Common, 0.125505 share of TWC Common and 0.045455 share of AOL Common, which reflects adjustments resulting from the March 2009 distribution by TW of shares of TWC Common, TWs March 2009 reverse stock split and the December 2009 distribution by TW of shares of AOL Common. CenterPoint Energy pays interest on the ZENS at an annual rate of 2% plus the amount of any quarterly cash dividends paid in respect of the reference shares attributable to the ZENS. The principal amount of ZENS is subject to being increased or decreased to the extent that the annual yield from interest and cash dividends on the reference shares is less than or more than 2.309%. This is defined in the ZENS instrument as "contingent principal." At December31, 2009, ZENS having an original principal amount of $840million and a contingent principal amount of $814million were outstanding and were exchangeable, at the option of the holders, for cash equal to 95% of the market value of reference shares deemed to be attributable to the ZENS. At December31, 2009, the market value of such shares was approximately $300million, which would provide an exchange amount of $340 for each $1,000 original principal amount of ZENS. At maturity of the ZENS in 2029, CenterPoi

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(7) Equity
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Capital Stock	(7)Equity (a) Capital Stock CenterPoint Energy has 1,020,000,000authorized shares of capital stock, comprised of 1,000,000,000shares of $0.01 par value common stock and 20,000,000shares of $0.01par value cumulative preferred stock. During the year ended December31, 2009, CenterPoint Energy received net proceeds of approximately $280million from the issuance of 24.2million common shares in an underwritten public offering, net proceeds of $148million from the issuance of 14.3million common shares through a continuous offering program, proceeds of approximately $57million from the sale of approximately 4.9million common shares to CenterPoint Energys defined contribution plan and proceeds of approximately $15million from the sale of approximately 1.3million common shares to participants in CenterPoint Energys enhanced dividend reinvestment plan. (b) Shareholder Rights Plan CenterPoint Energy has a Shareholder Rights Plan that states that each share of its common stock includes one associated preference stock purchase right (Right) which entitles the registered holder to purchase from CenterPoint Energy a unit consisting of one-thousandth of a share of SeriesA Preference Stock. The Rights, which expire on December11, 2011, are exercisable upon some events involving the acquisition of 20% or more of CenterPoint Energys outstanding common stock. Upon the occurrence of such an event, each Right entitles the holder to receive common stock with a current market price equal to two times the exercise price of the Right. At any time prior to becoming exercisable, CenterPoint Energy may repurchase the Rights at a price of $0.005per Right. There are 700,000shares of SeriesA Preference Stock reserved for issuance upon exercise of the Rights.

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(8) Short-term Borrowings and Long-term Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Short-term Borrowings and Long-term Debt	(8)Short-term Borrowings and Long-term Debt December31, 2008 December31, 2009 Long-Term Current(1) Long-Term Current(1) (In millions) Short-term borrowings: CERC Corp. receivables facility $ - $ 78 $ - $ - Inventory financing - 75 - 55 Total short-term borrowings - 153 - 55 Long-term debt: CenterPoint Energy: ZENS(2) - 117 - 121 Senior notes5.95% to 7.25% due 2010 to 2018 950 - 750 200 Pollution control bonds 4.00% due 2015(3) 151 - 151 - Pollution control bonds 4.70% to 8.00% due 2011 to 2030(4)(5) 871 - 581 290 Bank loans due 2012(6) 264 - - - Other 12 1 - 7 CenterPoint Houston: First mortgage bonds 9.15% due 2021 102 - 102 - General mortgage bonds 5.60% to 7.00% due 2013 to 2033 1,262 - 1,762 - Pollution control bonds 3.625% to 5.60% due 2012 to 2027(7) 229 - 229 - System restoration bonds 1.833% to 4.243% due 2010 to 2022 - - 645 20 Transition Bonds 4.192% to 5.63% due 2010 to 2020 2,381 208 2,160 221 Bank loans due 2012(6) 251 - - - CERC Corp.: Convertible subordinated debentures 6.00% due 2012 (8) 44 7 - 44 Senior notes5.95% to 7.875% due 2011 to 2037 2,747 - 2,747 - Bank loans due 2012(6) 926 - - - Other 1 - 1 - Unamortized discount and premium(9) (10 ) - (9 ) - Total long-term debt 10,181 333 9,119 903 Total debt $ 10,181 $ 486 $ 9,119 $ 958 __________ (1) Includes amounts due or exchangeable within one year of the date noted. (2) CenterPoint Energys ZENS obligation is bifurcated into a debt component and an embedded derivative component. For additional information regarding ZENS, see Note 6(b). As ZENS are exchangeable for cash at any time at the option of the holders, these notes are classified as a current portion of long-term debt. (3) These series of debt are secured by first mortgage bonds of CenterPoint Houston. (4) $527million of these series of debt is secured by general mortgage bonds of CenterPoint Houston. (5) In January 2010, CenterPoint Energy purchased $290million principal amount of pollution control bonds issued on its behalf at 101% of their principal amount. (6) Classified as long-term debt because the termination dates of the facilities under which the funds were borrowed are more than one year from the date noted. (7) These series of debt are secured by general mortgage bonds of CenterPoint Houston. (8) In January 2010, pursuant to a notice of redemption dated December 11, 2009, CERC redeemed all of its outstanding 6% convertible subordina

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(9) Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Income Taxes	(9)Income Taxes The components of CenterPoint Energys income tax expense were as follows: Year Ended December31, 2007 2008 2009 (In millions) Current income tax expense (benefit): Federal $ 161 $ (221 ) $ (103 ) State 32 11 10 Total current expense (benefit) 193 (210 ) (93 ) Deferred income tax expense (benefit): Federal 47 437 251 State (47 ) 50 18 Total deferred expense - 487 269 Total income tax expense $ 193 $ 277 $ 176 A reconciliation of the expected federal income tax expense using the federal statutory income tax rate to the actual income tax expense and resulting effective income tax rate is as follows: Year Ended December31, 2007 2008 2009 (In millions) Income before income taxes $ 588 $ 723 $ 548 Federal statutory income tax rate 35 % 35 % 35 % Expected federal income tax expense 206 253 192 Increase (decrease) in tax expense resulting from: State income tax expense (benefit), net of federal income tax (10 ) 40 18 Amortization of investment tax credit (8 ) (7 ) (7 ) Tax basis balance sheet adjustments 25 - - Increase (decrease) in settled and uncertain income tax positions (20 ) 8 (5 ) Other, net - (17 ) (22 ) Total (13 ) 24 (16 ) Total income tax expense $ 193 $ 277 $ 176 Effective tax rate 32.8 % 38.4 % 32.1 % As a result of its settlement with the IRS for tax years 2004 and 2005, CenterPoint Energy recorded an income tax benefit of approximately $11million in 2009 related to a reduction in the liability for uncertain tax positions of approximately $41million. The state income tax expense of $18million for 2009 includes a benefit of approximately $12million, net of federal income tax effect, related to adjustments in prior years state estimates.Changes in the Texas State Franchise Tax Law (Texas margin tax) resulted in classifying Texas margin tax of approximately $8million and $10million, net of federal income tax effect, as income tax expense in 2008 and 2009, respectively, for CenterPoint Houston.The state income tax benefit of $10million for 2007 includes a benefit of approximately $30million, net of federal income tax effect, as a result of the Texas margin tax and a Texas state tax examination for the tax years 2002 and 2004. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows: December31, 2008 2009 (In millions) Deferred tax assets: Current: Allowance for doubtful accounts $ 15 $ 10 Deferred gas costs 13 7 Other 1 - Total current deferred tax assets 29 17 Non-current: Loss and credit carryforwards 36 42 Employee b

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(10) Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Commitments and Contingencies	(10)Commitments and Contingencies (a) Natural Gas Supply Commitments Natural gas supply commitments include natural gas contracts related to CenterPoint Energys Natural Gas Distribution and Competitive Natural Gas Sales and Services business segments, which have various quantity requirements and durations, that are not classified as non-trading derivative assets and liabilities in CenterPoint Energys Consolidated Balance Sheets as of December31, 2008 and 2009 as these contracts meet the exception to be classified as "normal purchases contracts" or do not meet the definition of a derivative. Natural gas supply commitments also include natural gas transportation contracts that do not meet the definition of a derivative. As of December31, 2009, minimum payment obligations for natural gas supply commitments are approximately $439million in 2010, $490million in 2011, $427million in 2012, $390million in 2013, $269million in 2014 and $543million after 2014. (b) Asset Management Agreements Gas Operations has entered into asset management agreements associated with its utility distribution service in Arkansas, Louisiana, Mississippi, Oklahoma and Texas. Generally, these asset management agreements are contracts between Gas Operations and an asset manager that are intended to transfer the working capital obligation and maximize the utilization of the assets.In these agreements, Gas Operations agreed to release transportation and storage capacity to other parties to manage gas storage, supply and delivery arrangements for Gas Operations and to use the released capacity for other purposes when it is not neededfor Gas Operations. Gas Operations is compensated by the asset manager through payments made over the life of the agreements based in part on the results of the asset optimization. Under the provisions of these asset management agreements, Gas Operations has an obligation to purchase its winter storage requirements from the asset manager. The agreements have varying terms, the longest of which expires in 2016. (c) Lease Commitments The following table sets forth information concerning CenterPoint Energys obligations under non-cancelable long-term operating leases at December31, 2009, which primarily consist of rental agreements for building space, data processing equipment and vehicles (in millions): 2010 $ 12 2011 13 2012 9 2013 6 2014 4 2015 and beyond 7 Total $ 51 Total lease expense for all operating leases was $48million, $46million and $37million during 2007, 2008 and 2009, respectively. (d) Other Commitments In December 2008, CenterPoint Energy entered into an agreement to purchase software licenses, support and maintenance over the next five years.As of December 31, 2009, payment obligations under this agreement are $7million in 2010, $6million in 2011, $6million in 2012 and $6million in 2013. Long-Term Gas Gathering and Treating Agreements. In September 2009, CenterPoint Energy Field Services, Inc. (CEFS), a wholly-owned natural gas gathering and treating subsidiary of CERC Corp., entered into long-term agreements with an indirect wholly-owned sub

9_

(11) Estimated Fair Value of Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Estimated Fair Value of Financial Instruments	(11)Estimated Fair Value of Financial Instruments The fair values of cash and cash equivalents, investments in debt and equity securities classified as "available-for-sale" and "trading" and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The fair values of non-trading derivative assets and liabilities and the ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below.The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by the market price. December31, 2008 December31, 2009 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Financial liabilities: Long-term debt $ 10,396 $ 9,875 $ 9,900 $ 10,413

10_

(12) Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Earnings Per Share	(12)Earnings Per Share The following table reconciles numerators and denominators of CenterPoint Energys basic and diluted earnings per share calculations: For the Year Ended December31, 2007 2008 2009 (In millions, except per share and share amounts) Basic earnings per share calculation: Net income $ 395 $ 446 $ 372 Weighted average shares outstanding 320,480,000 336,387,000 365,229,000 Basic earnings per share $ 1.23 $ 1.32 $ 1.02 Diluted earnings per share calculation: Net income $ 395 $ 446 $ 372 Weighted average shares outstanding 320,480,000 336,387,000 365,229,000 Plus: Incremental shares from assumed conversions: Stock options(1) 1,059,000 760,000 451,000 Restricted stock 1,928,000 1,772,000 2,001,000 2.875%convertible senior notes 291,000 - - 3.75%convertible senior notes 18,749,000 4,636,000 - Weighted average shares assuming dilution 342,507,000 343,555,000 367,681,000 Diluted earnings per share $ 1.15 $ 1.30 $ 1.01 _________ (1) Options to purchase 3,225,969, 2,617,772and 2,372,132shares were outstanding for the years ended December31, 2007, 2008 and 2009, respectively, but were not included in the computation of diluted earnings per share because the options exercise price was greater than the average market price of the common shares for the respective years. Substantially all of the 3.75% contingently convertible senior notes provided for settlement of the principal portion in cash rather than stock. The portion of the conversion value of such notes that was required to be settled in cash rather than stock is excluded from the computation of diluted earnings per share from continuing operations. CenterPoint Energy included the conversion spread in the calculation of diluted earnings per share when the average market price of CenterPoint Energys common stock in the respective reporting period exceeded the conversion price. In April 2008, CenterPoint Energy called its 3.75% convertible senior notes for redemption on May30, 2008. Substantially all of CenterPoint Energys 3.75% convertible senior notes were submitted for conversion on or prior to the May 30, 2008 redemption date.

11_

(13) Unaudited Quarterly Information
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Unaudited Quarterly Information	(13)Unaudited Quarterly Information Summarized quarterly financial data is as follows: Year Ended December31, 2008 First Quarter Second Quarter Third Quarter Fourth Quarter (In millions, except per share amounts) Revenues $ 3,363 $ 2,670 $ 2,515 $ 2,774 Operating income 336 297 337 303 Net income 122 101 136 87 Basic earnings per share(1) $ 0.37 $ 0.30 $ 0.40 $ 0.25 Diluted earnings per share(1) $ 0.36 $ 0.30 $ 0.39 $ 0.25 Year Ended December31, 2009 First Quarter Second Quarter Third Quarter Fourth Quarter (In millions, except per share amounts) Revenues $ 2,766 $ 1,640 $ 1,576 $ 2,299 Operating income 285 253 287 299 Net income 67 86 114 105 Basic earnings per share(1) $ 0.19 $ 0.24 $ 0.31 $ 0.27 Diluted earnings per share(1) $ 0.19 $ 0.24 $ 0.31 $ 0.27 _________ (1) Quarterly earnings per common share are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal annual earnings per common share. CenterPoint Energy included the conversion spread related to its contingently convertible senior notes in the calculation of diluted earnings per share when the average market price of CenterPoint Energys common stock in the respective reporting period exceeds the conversion price. All of CenterPoint Energys 3.75% convertible senior notes were submitted for conversion on or prior to the May 30, 2008 redemption date.

12_

(14) Reportable Business Segments
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Reportable Business Segments	(14)Reportable Business Segments CenterPoint Energys determination of reportable business segments considers the strategic operating units under which CenterPoint Energy manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. The accounting policies of the business segments are the same as those described in the summary of significant accounting policies except that some executive benefit costs have not been allocated to business segments. CenterPoint Energy uses operating income as the measure of profit or loss for its business segments. CenterPoint Energys reportable business segments include the following: Electric Transmission Distribution, Natural Gas Distribution, Competitive Natural Gas Sales and Services, Interstate Pipelines, Field Services and Other Operations. The electric transmission and distribution function (CenterPoint Houston) is reported in the Electric Transmission Distribution business segment. Natural Gas Distribution consists of intrastate natural gas sales to, and natural gas transportation and distribution for, residential, commercial, industrial and institutional customers. Competitive Natural Gas Sales and Services represents CenterPoint Energys non-rate regulated gas sales and services operations, which consist of three operational functions: wholesale, retail and intrastate pipelines. The Interstate Pipelines business segment includes the interstate natural gas pipeline operations. The Field Services business segment includes the natural gas gathering, treating and processing operations. Other Operations consists primarily of other corporate operations which support all of CenterPoint Energys business operations. Long-lived assets include net property, plant and equipment, net goodwill and other intangibles and equity investments in unconsolidated subsidiaries. Intersegment sales are eliminated in consolidation. Financial data for business segments and products and services are as follows (in millions): Revenues from External Customers Intersegment Revenues Depreciation and Amortization Operating Income (Loss) Total Assets Expenditures for Long-Lived Assets As of and for the year ended December31, 2007: Electric Transmission Distribution $ 1,837 (1) $ - $ 398 $ 561 $ 8,358 $ 401 Natural Gas Distribution 3,749 10 155 218 4,332 191 Competitive Natural Gas Sales and Services 3,534 45 5 75 1,221 7 Interstate Pipelines(2) 357 143 44 237 3,007 308 Field Services(3) 136 39 11 99 669 74 Other 10 - 18 (5 ) 1,956 (4) 30 Reconciling Eliminations - (237 ) - - (1,671 ) - Consolidated $ 9,623 $ - $ 631 $ 1,185 $ 17,872 $ 1,011 As of and for the year ended December31, 2008: Electric Transmission Dist

13_

(15) Subsequent Events
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Subsequent Events	(15)Subsequent Events On January21, 2010, CenterPoint Energys board of directors declared a regular quarterly cash dividend of $0.195 per share of common stock payable on March10, 2010, to shareholders of record as of the close of business on February16, 2010.

SCHEDULE I - CONDENSED FINANCIA

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF CENTERPOINT ENERGY, INC. (PARENT COMPANY)
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule to Financial Statements [Abstract]
CONDENSED FINANCIAL INFORMATION OF CENTERPOINT ENERGY, INC. (PARENT COMPANY)	CENTERPOINT ENERGY, INC. SCHEDULEI- CONDENSED FINANCIAL INFORMATION OF CENTERPOINT ENERGY, INC. (PARENT COMPANY) STATEMENTS OF INCOME For the Year Ended December31, 2007 2008 2009 (In millions) Expenses: Operation and Maintenance Expenses $ (17 ) $ (12 ) $ (17 ) Taxes Other than Income (4 ) 1 - Total (21 ) (11 ) (17 ) Other Income (Expense): Interest Income from Subsidiaries 22 12 8 Other Income (Expense) 1 (5 ) (2 ) Gain (Loss) on Indexed Debt Securities 111 128 (68 ) Interest Expense to Subsidiaries (67 ) (38 ) (25 ) Interest Expense (225 ) (162 ) (149 ) Distribution to ZENS Holders (27 ) - (3 ) Total (185 ) (65 ) (239 ) Loss Before Income Taxes (206 ) (76 ) (256 ) Income Tax Benefit 86 32 113 Loss Before Equity in Subsidiaries (120 ) (44 ) (143 ) Equity Income of Subsidiaries 515 490 515 Net Income $ 395 $ 446 $ 372 See CenterPoint Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements in PartII, Item8 CENTERPOINT ENERGY, INC. SCHEDULEI- CONDENSED FINANCIAL INFORMATION OF CENTERPOINT ENERGY, INC. (PARENT COMPANY) BALANCE SHEETS December31, 2008 2009 (In millions) ASSETS Current Assets: Cash and cash equivalents $ - $ - Notes receivable- subsidiaries 82 493 Accounts receivable- subsidiaries 53 72 Other assets - 16 Total current assets 135 581 Other Assets: Investment in subsidiaries 5,161 5,562 Notes receivable- subsidiaries 151 151 Other assets 826 751 Total other assets 6,138 6,464 Total Assets $ 6,273 $ 7,045 LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities: Notes payable- subsidiaries $ 21 $ 306 Current portion of long-term debt 117 611 Indexed debt securities derivative 133 201 Accounts payable: Subsidiaries 40 17 Other 3 40 Taxes accrued 338 416 Interest accrued 26 29 Other 18 1 Total current liabilities 696 1,621 Other Liabilities: Accumulated deferred tax liabilities 138 122 Benefit obligations 426 426 Notes payable- subsidiaries 750 750 Other 7 7 Total non-current liabilities 1,321 1,305 Long-Term Debt 2,234 1,480 Shareholders Equity: Common stock 3 4 Additional paid-in capital 3,158 3,671 Accumulated deficit (1,008 ) (912 ) Accumulated other comprehensive loss (131 ) (124 ) Total shareholders equity 2,022 2,639 Total Liabilities and Shareholders Equity $ 6,273 $ 7

SCHEDULE II - QUALIFYING VALUAT

SCHEDULE II - QUALIFYING VALUATION ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule to Financial Statements [Abstract]
VALUATION AND QUALIFYING ACCOUNTS	CENTERPOINT ENERGY, INC. SCHEDULEII-VALUATION AND QUALIFYING ACCOUNTS For the Three Years Ended December31, 2009 Column A Column B Column C Column D Column E Description Balance at Beginning of Period Additions Deductions From Reserves (2) Balance at End of Period Charged to Income Charged to Other Accounts (In millions) Year Ended December31, 2009: Accumulated provisions: Uncollectible accounts receivable $ 35 $ 36 $ - $ 47 $ 24 Deferred tax asset valuation allowance 5 - - - 5 Year Ended December31, 2008: Accumulated provisions: Uncollectible accounts receivable $ 38 $ 54 $ 3 $ 60 $ 35 Deferred tax asset valuation allowance 18 (1 ) (12 ) (1) - 5 Year Ended December31, 2007: Accumulated provisions: Uncollectible accounts receivable $ 33 $ 45 $ - $ 40 $ 38 Deferred tax asset valuation allowance 22 (4 ) - - 18 __________ (1) The 2008 change to the deferred tax asset valuation allowance charged to other accounts represents a reduction equal to the related deferred tax asset reduction in 2008 for re-measurement of state tax attributes, net of federal tax benefit. A full valuation allowance for this deferred tax asset was established in prior periods. (2) Deductions from reserves represent losses or expenses for which the respective reserves were created. In the case of the uncollectible accounts reserve, such deductions are net of recoveries of amounts previously written off.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Information [Text Block]
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jun. 30, 2009
Entity [Text Block]
Entity Registrant Name	CENTERPOINT ENERGY INC
Entity Central Index Key	0001130310
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$4,008,560,260
Entity Common Stock Shares Outstanding	391,746,779