UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): JUNE 27, 2005
CENTERPOINT ENERGY, INC.
(Exact name of registrant as specified in its charter)
TEXAS 1-31447 74-0694415
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1111 LOUISIANA
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 207-1111
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC
(Exact name of registrant as specified in its charter)
TEXAS 1-3187 22-3865106
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
1111 LOUISIANA
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 207-1111
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
ITEM 8.01 OTHER EVENTS.
On June 27, 2005, CenterPoint Energy Houston Electric, LLC
("CenterPoint Houston"), the electric transmission and distribution subsidiary
of CenterPoint Energy, Inc., accepted an ordinance granting CenterPoint Houston
a new 30-year franchise to use the public rights-of-way to conduct its business
in the City of Houston (the "New Franchise Ordinance"). The New Franchise
Ordinance is scheduled to take effect on July 1, 2005, and replaces the current
electricity franchise ordinance, which has been in effect since 1957. The New
Franchise Ordinance clarifies certain operational obligations of CenterPoint
Houston and the City of Houston and provides for streamlined payment and audit
procedures and a two year statute of limitations on claims for underpayment or
overpayment under the ordinance. For the twelve-month period beginning July 1,
2005, the annual franchise fee under the New Franchise Ordinance will include a
base amount of $88.1 million ("Base Amount") and an additional payment of $8.5
million ("Additional Amount"). The Base Amount and the Additional Amount will be
adjusted annually based on the annual increase or decrease in kWh delivered by
CenterPoint Houston within the City of Houston. The New Franchise Ordinance
requires the City of Houston to modify CenterPoint Houston's tariff to allow
CenterPoint Houston to recover the Additional Amount from retail electric
providers serving end-use retail electric customers within the City of Houston
boundaries. Under the current electricity franchise ordinance, CenterPoint
Houston paid annual franchise fees of $76.6 million to the City of Houston for
the year ended December 31, 2004.
CenterPoint Houston will begin paying the new annual franchise
fees on July 1, 2005. Pursuant to the New Franchise Ordinance, CenterPoint
Houston retains the right to recover from the City of Houston any portion of the
Additional Amount paid (or to refuse to pay any portion not yet paid) for which
CenterPoint Houston is denied recovery by any regulatory authority.
Additionally, the New Franchise Ordinance provides that the annual franchise fee
will be reduced to reflect any portion of the annual franchise fee that is not
included in CenterPoint Houston's base rates in its next general rate case.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CENTERPOINT ENERGY, INC.
Date: July 1, 2005 By: /s/ James S. Brian
------------------------------------
James S. Brian
Senior Vice President and
Chief Accounting Officer
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC
Date: July 1, 2005 By: /s/ James S. Brian
-------------------------------------
James S. Brian
Senior Vice President and
Chief Accounting Officer