Exhibit 99.1


                      [CenterPoint Energy, Inc. Letterhead]


For Immediate Release                                                Page 1 of 2
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         CENTERPOINT ENERGY COMMENCES EXCHANGE OFFER FOR $575 MILLION,
                    3.75% CONVERTIBLE SENIOR NOTES DUE 2023

         HOUSTON, TX - JULY 19, 2005 - CenterPoint Energy, Inc. (NYSE: CNP)
today announced it has commenced its offer to exchange $575 million principal
amount of its 3.75 percent Convertible Senior Notes due 2023 (Old Notes) for an
equal amount of its new 3.75 percent Convertible Senior Notes, Series B, due
2023 (New Notes). The company will pay an exchange fee of $1.50 for each $1,000
principal amount of Old Notes accepted for exchange.

         The exchange offer is in response to Emerging Issues Task Force (EITF)
Issue No. 04-8, "The Effect of Contingently Convertible Instruments on Diluted
Earnings per Share" by the Financial Accounting Standards Board. EITF No. 04-8
requires that the calculation of diluted earnings per share reflect shares
issuable under contingently convertible debt regardless of whether the
conditions to conversion have been satisfied.

         The terms of the New Notes are substantially identical to the terms of
the Old Notes, except that the New Notes will contain a net share settlement
feature that, upon conversion, provides for the principal amount of the New
Notes to be settled in cash and the excess value to be settled, at the company's
option, in cash, shares or a combination thereof, as well as an additional
change in control feature. The New Notes will result in fewer shares included in
the calculation of diluted earnings per share on a going-forward basis under
EITF No. 04-8 since exercise of the conversion feature would result in a payment
of cash, rather than shares, for the principal amount of the New Notes. Pursuant
to the additional change of control feature, the New Notes will provide for an
increase in the conversion rate for holders who convert the New Notes when
certain change of control events occur, unless the acquirer's common stock is
traded on a U.S. national securities exchange or on the NASDAQ, in which case,
at the company's option, the new notes may instead become contingently
convertible into the common stock of the public acquirer, subject to the net
share settlement provisions.

       The exchange offer will expire at 5 p.m., Eastern time, on August 17,
2005, unless extended or withdrawn. Tenders of Old Notes may be withdrawn at any
time prior to the expiration date of the exchange offer.

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For Immediate Release                                                Page 2 of 2
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       SECURITY HOLDERS ARE URGED TO READ THE EXCHANGE OFFER MATERIALS,
INCLUDING THE PROSPECTUS DATED JULY 19, 2005, THE REGISTRATION STATEMENT ON FORM
S-4 (NO. 333-123182), THE SCHEDULE TO AND THE OTHER MATERIALS RELATED TO THE
EXCHANGE OFFER BECAUSE THEY CONTAIN IMPORTANT INFORMATION. BANC OF AMERICA
SECURITIES LLC IS ACTING AS DEALER MANAGER AND MACKENZIE PARTNERS, INC. IS THE
INFORMATION AGENT FOR THE EXCHANGE OFFER. COPIES OF THE PROSPECTUS AND THE
RELATED EXCHANGE OFFER MATERIALS MAY BE OBTAINED FREE OF CHARGE AT THE
SECURITIES AND EXCHANGE COMMISSION'S WEBSITE (WWW.SEC.GOV) OR FROM MACKENZIE
PARTNERS, INC., 105 MADISON AVENUE, NEW YORK, NEW YORK 10016, (212) 929-5500 OR
(800) 322-2885.

       This press release includes forward-looking statements. Actual events and
results may differ materially from those projected. The statements in this news
release regarding timing and other aspects of the exchange offer that are not
historical facts are forward-looking statements. Factors that could affect the
company's ability to complete the exchange offer include general market
conditions, investor acceptance of the exchange offer, the satisfaction of the
conditions to the exchange offer discussed in the prospectus and other factors
discussed in CenterPoint Energy's Form 10-K for the period ended December 31,
2004, Form 10-Q for the period ended March 31, 2005, and other filings with the
Securities and Exchange Commission.

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