CenterPoint Energy, Inc.
The 2002 results consist of income from electric generation, electric transmission & distribution, natural gas distribution, pipelines and gathering and other operations. They also reflect the change in the company's electric operations due to the opening of the Texas market to retail electric competition in January 2002. Retail electric sales are no longer a part of CenterPoint Energy's operations, and electric generation is no longer subject to rate regulation as was the case in 2001. Thus, 2002 results cannot be meaningfully compared to 2001.
"I'm very proud of our employees, their commitment to serving our customers and their many accomplishments in 2002," said David McClanahan, president and chief executive officer of CenterPoint Energy. "We completed our separation from Reliant Resources, prepared for the partial distribution of Texas Genco common stock to shareholders and developed a comprehensive corporate strategy, all the while ensuring the successful performance of our utility businesses and improving operational productivity."
CenterPoint Energy also took a number of steps during the year to position it for the future. The company reached an agreement, subject to approval by the Public Utility Commission of Texas (PUC), that ensures the recovery of over $8.3 billion worth of fuel incurred by the former integrated electric utility over the last four and one half years prior to deregulation. The company agreed to defer an additional $200 million in fuel costs for consideration in the 2004 stranded cost true-up proceeding. The natural gas distribution operations obtained $50 million in annualized rate increases, primarily in Arkansas and Oklahoma, and expect additional rate relief in other areas of their service territory in 2003. Texas Genco streamlined its workforce through an early retirement program and the electric transmission & distribution business and several business service functions implemented staff reductions. Although the company incurred costs related to these activities in 2002, it expects to realize the benefits in 2003 and beyond.
For the 2002 fourth quarter, the loss from continuing operations was $8 million, or $0.03 per diluted share. For the same period in 2001, income from continuing operations was $19 million, or $0.07 per diluted share.
The company's operating performance for 2002 compared to 2001 benefited from the following:
-- continued customer growth with the addition of over 100,000 metered
electric and gas customers
-- normal weather compared to milder than normal weather in 2001
-- reduced bad debt expense for both electric and natural gas operations
-- discontinuance of goodwill amortization in accordance with SFAS
No. 142, "Goodwill and Other Intangible Assets", which the company
adopted on January 1, 2002. The company recognized goodwill
amortization of $49 million in 2001, including $12 million in the
fourth quarter
-- charges of $79 million for 2001, including $74 million for the fourth
quarter, related to the an impairment of the company's remaining
Argentine investments
-- increased revenues from rate increases of $20 million for the year,
including $14 million for the quarter, for the natural gas
distribution operations
The company's results for 2002 compared to 2001 were negatively impacted by the following:
-- an increase in interest expense of $131 million for the year,
including $126 million for the fourth quarter
-- severance charges in the fourth quarter of $26 million associated with
staff reductions in the electric transmission & distribution
operations and business service functions and an early retirement
program in Texas Genco
-- a $24 million charge in the fourth quarter as a result of the
settlement with the parties to a PUC fuel reconciliation proceeding
Summary of Two New Reportable Business Segments
Results for 2001 reflect CenterPoint Energy's operation as an integrated electric utility. With the opening of the Texas market to retail electric competition in January 2002, generation and retail electric sales were deregulated. The company no longer makes retail electric sales. Pursuant to these changes, CenterPoint Energy started reporting two new business segments, electric transmission & distribution and electric generation. The electric transmission & distribution segment includes results from regulated transmission & distribution operations as well as the impact of generation- related stranded costs recoverable by the regulated utility. The previously regulated generation operations in Texas, Texas Genco Holdings, Inc.
As a result of deregulation, there are no meaningful comparisons for these segments against prior periods, which reflected a single business segment for integrated electric utility operations.
EBIT BY SEGMENT DETAILED Electric Transmission & Distribution
The electric transmission & distribution segment generated earnings before interest and taxes (EBIT) of $1.1 billion in 2002 consisting of $421 million for the regulated electric transmission & distribution utility and non-cash EBIT of $697 million associated with generation-related regulatory assets, or Excess Cost Over Market (ECOM), as described below.
The electric transmission & distribution utility recovers the cost of its service through an energy delivery charge. This business benefited from growth in residential demand in 2002 over 2001, partially offset by an anticipated decline in deliveries to industrial customers who now generate their own power. Metered customers, totaling 1.79 million at the end of 2002, continued to grow at an annualized rate of 2 percent.
Under the Texas restructuring law, a regulated utility may recover the difference between market prices received by its affiliated power generation company and the prices used in the ECOM model established by the PUC as part of its 2004 stranded cost true-up proceeding. This difference produces non- cash EBIT and is recorded as a regulatory asset.
For the fourth quarter of 2002, EBIT for the segment was $175 million consisting of $29 million for the regulated transmission & distribution utility and non-cash EBIT for ECOM of $146 million. Utility earnings were negatively affected by $11 million of severance costs from approximately 200 staff reductions, and a $24 million charge associated with the settlement of the fuel reconciliation proceeding described above.
Electric Generation
Texas Genco owns 14,175 MW of electric generation in Texas and sells capacity, energy, and ancillary services in the Texas electric market, primarily through capacity auctions. On January 6, 2003, CenterPoint Energy distributed approximately 19 percent of Texas Genco common stock to CenterPoint Energy shareholders. However, for the year ended December 31, 2002, CenterPoint Energy reported the results of Texas Genco as a wholly-owned subsidiary. Texas Genco stock is traded on the New York Stock Exchange under the symbol TGN.
The publicly traded common stock of Texas Genco will be used to determine the market value of the generating assets formerly owned by the integrated electric utility in the quantification of the company's stranded costs in the 2004 true-up proceeding by the PUC. This method is prescribed by Senate Bill 7, the law enacted by the Texas legislature that opened the electric market to retail competition.
Texas Genco reported a loss before interest and taxes of $130 million for the year and a $59 million loss for the fourth quarter. These losses reflect the low prices received for the 2002 capacity auctions. In response to low seasonal demand for some of its gas-fired generation, Texas Genco mothballed 3,400 MW of gas-fired generation through at least May of 2003, and implemented an early retirement program at a cost of $12 million in the fourth quarter. In the fall of 2002, Texas Genco conducted capacity auctions that covered approximately 74 percent of its available capacity for 2003. These auctions resulted in substantially higher prices than for 2002.
Natural Gas Distribution
The natural gas distribution segment reported EBIT of $210 million for 2002, an increase of $61 million compared to the prior year's EBIT of $149 million. For the year, a reduction in bad debt expense in the second and third quarters contributed to the overall improvement in operating results.
For the fourth quarter, EBIT from the natural gas distribution segment increased to $86 million from $72 million for the same period of 2001. Normal weather compared to milder than normal weather in 2001 and higher customer usage during the quarter, combined with the implementation of rate increases and a 2 percent growth in customers, contributed to the fourth quarter increase. These factors helped to offset higher employee benefit costs in the quarter.
The amount of goodwill amortization recognized in 2001 was $31 million, including $8 million in the fourth quarter for this segment.
Pipelines and Gathering
The pipelines and gathering segment reported EBIT of $158 million in 2002 compared to $138 million for the prior year. Improved margins were offset by increased operating expenses, including higher benefit costs.
For the fourth quarter, the pipelines and gathering segment reported EBIT of $36 million compared to $31 million for the same period in 2001. Lower franchise tax expenses in the fourth quarter of 2002 offset higher benefit costs.
The amount of goodwill amortization recognized in 2001 was $16 million, including $4 million in the fourth quarter.
Other Operations
The company's other operations reported EBIT for 2002 of $5 million compared to a loss before interest and taxes of $137 million for 2001. For the fourth quarter, EBIT was $36 million compared to a $91 million loss before interest and taxes for the same period last year. The 2001 results include charges related to the impairment of the company's remaining Argentine investments totaling $79 million, including $74 million in the fourth quarter. The company continues to operate these businesses in the near term while evaluating their disposal. The carrying value of the remaining Argentine investments is approximately $11 million.
Accounting Treatment of the Reliant Resources Spin-off and Extraordinary Item
As reported in the third quarter, the company distributed its investment in Reliant Resources (RRI) to CenterPoint Energy shareholders on September 30, 2002. In accounting for this distribution, the company wrote down its $5.2 billion investment in RRI to its then fair value of $847 million. This write-down is reported as a non-cash charge in discontinued operations. The company also reduced additional paid-in-capital for the $847 million fair value to record the distribution as a return of capital. RRI's historical results are reported as discontinued operations.
Taking into account the write-down and the extraordinary item related to extinguishment of debt, CenterPoint Energy's net loss for 2002 was $3.9 billion, or $13.08 per diluted share. For 2001, net income was $980 million, or $3.35 per diluted share, which included a benefit of $59 million for the cumulative effect of accounting change.
The net loss for the 2002 fourth quarter was $63 million, or a loss of $0.21 per diluted share. This loss reflects an adjustment to the write-down of the company's RRI investment, and an extraordinary item related to extinguishment of debt. Net income for the fourth quarter of 2001 was $46 million, or $0.16 per diluted share.
Charge to Other Comprehensive Income for Pension Minimum Liability
Due to a decline in current market value of the pension plan's assets and increased benefit obligations associated with a reduction in the discount rate from 7.25 percent to 6.75 percent, the value of the pension plan's assets is less than the accumulated pension benefit obligation. Consequently, during the fourth quarter of 2002, CenterPoint Energy recorded a minimum liability adjustment related to its pension plan, which resulted in an after-tax charge to other comprehensive income of $414 million. Recording this minimum liability adjustment did not affect the company's results of operations during 2002 nor its ability to meet any existing financial covenants related to its debt facilities. Additionally, the company was not required to make any pension plan contribution in 2002, nor will it be required to do so in 2003.
OUTLOOK FOR 2003
CenterPoint Energy expects 2003 diluted earnings per share to be between $0.85 and $1.00. This guidance reflects the company's outlook for continued strong operational performance by each of its business segments. However, higher interest expense on borrowings and increased pension expense of approximately $50 million, as well as higher insurance costs of over $20 million are expected to negatively impact 2003 results. As previously announced, Texas Genco expects to achieve 2003 earnings between $1.10 and $1.30 per diluted share.
The company is presently in discussions with its group of banks to modify the payment schedule and certain other terms of its $3.85 billion bank credit facility. Currently, the company expects to conclude negotiations with its banks by the end of February, when a $600 million payment is due under the existing facility. Results of these discussions could materially impact the 2003 guidance for CenterPoint Energy.
WEBCAST OF EARNINGS CONFERENCE CALL
CenterPoint Energy's management will host an earnings conference call on Thursday, February 13, 2003, at 10 a.m. Central Standard Time. Interested parties may listen to a live audio broadcast of the conference call in the investor section of CenterPoint Energy's web site, www.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 14 days.
CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution and sales, interstate pipeline and gathering operations, and more than 14,000 megawatts of power generation in Texas. The company serves nearly five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Missouri, Oklahoma, and Texas. Assets total nearly $19 billion. CenterPoint Energy became the new holding company for the regulated operations of the former Reliant Energy, Incorporated in August 2002. With more than 11,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years.
This news release includes forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, effects of competition, weather variations, changes in CenterPoint Energy's or Texas Genco's business plans, financial market conditions, the timing and extent of changes in commodity prices, particularly natural gas and other factors discussed in CenterPoint Energy's and Texas Genco's filings with the Securities and Exchange Commission.
CenterPoint Energy, Inc. and Subsidiaries
Statements of Consolidated Operations
(Thousands of Dollars)
(Unaudited)
Quarter Ended Year Ended
-------------------- ---------------------
December 31, December 31,
-------------------- ---------------------
2002 2001 2002 2001
--------- -------- --------- ----------
Revenues:
Electric Operations $--- $990,264 $--- $5,510,817
Electric Transmission &
Distribution 464,874 --- 2,221,618 ---
Electric Generation 275,292 --- 1,540,975 ---
Natural Gas Distribution 1,302,753 923,044 3,960,265 4,742,269
Pipelines and Gathering 92,570 97,183 374,369 414,868
Other Operations 16,710 25,111 32,477 101,144
Eliminations (35,267) (27,561) (207,206) (112,741)
Total 2,116,932 2,008,041 7,922,498 10,656,357
Expenses:
Fuel and cost of
gas sold 1,176,493 853,354 3,895,365 5,142,040
Purchased power 6,843 218,011 94,749 1,223,437
Operation and maintenance 444,012 480,722 1,599,023 1,786,269
Taxes other than income
taxes 75,283 98,408 388,155 514,044
Depreciation and
amortization 155,095 139,557 615,770 671,349
Impairment of Latin
America assets --- 69,688 --- 75,342
Total 1,857,726 1,859,740 6,593,062 9,412,481
Operating Income 259,206 148,301 1,329,436 1,243,876
Other Income (Expense):
Gain (Loss) on AOL Time
Warner investment 30,296 (25,751) (499,704) (70,215)
Gain (Loss) on indexed
debt securities (28,551) 19,188 480,027 58,033
Impairment of Latin
America equity
investments --- (4,093) --- (4,093)
Interest (254,830) (129,160) (682,700) (551,534)
Distribution on trust
preferred securities (13,898) (13,899) (55,545) (55,598)
Other - net 490 10,380 22,795 54,708
Total (266,493) (143,335) (735,127) (568,699)
Income from Continuing
Operations Before Income
Taxes, Extraordinary
Item, Cumulative Effect of
Accounting Change and
Preferred Dividends (7,287) 4,966 594,309 675,177
Income Tax Expense
(Benefit) 681 (14,462) 208,026 228,252
Income (Loss) from
Continuing Operations
Before Extraordinary Item,
Cumulative Effect of
Accounting Change and
Preferred Dividends (7,968) 19,428 386,283 446,925
Income from Discontinued
Operations, net of tax --- 27,151 82,157 475,078
Loss on Disposal of
Discontinued Operations (37,812) --- (4,371,464) ---
Extraordinary Item, net of
tax (17,210) --- (17,210) ---
Cumulative Effect of
Accounting Change,
net of tax --- --- --- 58,556
Income (Loss) Before
Preferred Dividends (62,990) 46,579 (3,920,234) 980,559
Preferred Dividends --- 566 --- 858
Net Income (Loss)
Attributable to Common
Stockholders $(62,990) $46,013 $(3,920,234) $979,701
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Amended Annual Report on Form 10-K/A of Reliant Energy,
Incorporated.
CenterPoint Energy, Inc. and Subsidiaries
Selected Data From Statements of Consolidated Operations
(Thousands of Dollars, Except Per Share Amounts)
(Unaudited)
Quarter Ended Year Ended
------------------- ------------------
December 31, December 31,
------------------- ------------------
2002 2001 2002 2001
--------- -------- -------- --------
Basic Earnings Per Common Share
Income from continuing
operations before
extraordinary item
and cumulative effect
of accounting change
less preferred dividends $(0.03) $0.07 $1.30 $1.54
Income from discontinued
operations, net of tax --- 0.09 0.27 1.64
Loss on disposal of
discontinued operations (0.12) --- (14.67) ---
Extraordinary item, net
of tax (0.06) --- (0.06) ---
Cumulative effect of
accounting change,
net of tax --- --- --- 0.20
Net Income (Loss)
Attributable to Common
Stockholders $(0.21) $0.16 $(13.16) $3.38
Diluted Earnings Per Common
Share
Income from continuing
operations before
extraordinary item
and cumulative effect of
accounting change less
preferred dividends $(0.03) $0.07 1.29 $1.53
Income from discontinued
operations, net of tax --- 0.09 0.27 1.62
Loss on disposal of
discontinued operations (0.12) --- (14.58) ---
Extraordinary item,
net of tax (0.06) --- (0.06) ---
Cumulative effect of
accounting change,
net of tax --- --- --- 0.20
Net Income (Loss)
Attributable to Common
Stockholders $(0.21) $0.16 $(13.08) $3.35
Dividends per Common Share $0.160 $--- $1.070 $1.125
Weighted Average Common
Shares Outstanding (000):
- Basic 299,233 291,654 297,997 289,776
- Diluted 300,046 293,097 299,644 292,193
EBIT by Segment
Electric Operations $--- $140,008 $--- $1,147,777
Electric Transmission &
Distribution 175,484 --- 1,118,163 ---
Electric Generation (59,310) --- (130,138) ---
Total Electric Business
Segments 116,174 140,008 988,025 1,147,777
Natural Gas Distribution 86,015 72,449 209,737 148,588
Pipelines and Gathering 35,733 31,439 157,962 138,396
Other Operations 35,591 (91,574) 5,287 (136,662)
Eliminations/other (12,072) (4,297) (28,457) (15,790)
Total $261,441 $148,025 $1,332,554 $1,282,309
Reconciliation of Operating
Income to EBIT and EBIT to
Net Income (Loss)
Attributable to Common
Stockholders:
Operating income $259,206 $148,301 $1,329,436 $1,243,876
Gain (loss) on AOL Time
Warner investment 30,296 (25,751) (499,704) (70,215)
Gain (loss) on indexed debt
securities (28,551) 19,188 480,027 58,033
Impairment of Latin America
equity investments --- (4,093) --- (4,093)
Other income, net 490 10,380 22,795 54,708
EBIT 261,441 148,025 1,332,554 1,282,309
Interest expense and other
charges (268,728) (143,059) (738,245) (607,132)
Income tax (expense) benefit (681) 14,462 (208,026) (228,252)
Income (Loss) from Continuing
Operations Before
Extraordinary Item,
Cumulative Effect of
Accounting Change and
Preferred Dividends (7,968) 19,428 386,283 446,925
Income from discontinued
operations, net of tax --- 27,151 82,157 475,078
Loss on disposal of
discontinued operations (37,812) --- (4,371,464) ---
Extraordinary item, net of
tax (17,210) --- (17,210) ---
Cumulative effect of
accounting change, net of
tax --- --- --- 58,556
Preferred dividends --- 566 --- 858
Net Income (Loss)
Attributable to Common
Stockholders $(62,990) $46,013 $(3,920,234) $979,701
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Amended Annual Report on Form 10-K/A of Reliant Energy,
Incorporated.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
Electric
Transmission & Electric
Distribution Generation Eliminations
----------------------------------------
Quarter Ended December 31,
----------------------------------------
2002
----------------------------------------
Results of Operations:
Operating Revenues:
Operating revenues $319 $275 $8
ECOM true-up 146 --- ---
Total Revenues 465 275 8
Operating Expenses:
Fuel and purchased power 10 182 8
Operation and maintenance 174 119 ---
Depreciation and amortization 67 39 ---
Taxes other than income 45 (6) ---
Total 296 334 8
Operating Income (Loss) 169 (59) ---
Non-operating Income 6 --- ---
Earnings (Loss) Before Interest and
Taxes $175 $(59) $---
Electric
Transmission & Electric
Distribution Generation Eliminations
---------------------------------------
Year Ended December 31,
---------------------------------------
2002
---------------------------------------
Results of Operations:
Operating Revenues:
Operating revenues $1,525 $1,541 $(48)
ECOM true-up 697 --- ---
Total Revenues 2,222 1,541 (48)
Operating Expenses:
Fuel and purchased power 66 1,083 (48)
Operation and maintenance 575 391 ---
Depreciation and amortization 271 157 ---
Taxes other than income 213 43 ---
Total 1,125 1,674 (48)
Operating Income (Loss) 1,097 (133) ---
Non-operating Income 21 3 ---
Earnings (Loss) Before Interest and
Taxes $1,118 $(130) $---
Electric Operations
Operating Data: Quarter Ended December 31,
----------------------------
Actual MWH Delivered 2002 2001
------------ ------------
Residential 4,289,445 3,925,478 9%
Commercial 4,465,421 4,226,254 6%
Industrial 7,490,888 7,205,542 4%
Other 40,490 151,425 (73%)
Total 16,286,244 15,508,699 5%
Weather (average for service area):
Percentage of normal:
Cooling degree days 82% 94% (12%)
Heating degree days 97% 75% 22%
Average number of metered
customers:
Residential 1,567,094 1,528,159 3%
Commercial 218,077 209,740 4%
Industrial 1,851 1,795 3%
Other --- 16 (100%)
Total 1,787,022 1,739,710 3%
Physical Electric Generation Power
Sales (MWH) 9,539,888 N/A
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment (Continued)
(Millions of Dollars)
(Unaudited)
Electric
Total Operations
-------------- -----------
Quarter Ended
December 31,
-------------- ----------- % Diff
2002 2001 Fav/(Unfav)
-------------- ----------- ---------
Results of Operations:
Operating Revenues:
Operating revenues $602 $990 (39%)
ECOM true-up 146 --- ---
Total Revenues 748 990 (24%)
Operating Expenses:
Fuel and purchased power 200 395 49%
Operation and maintenance 293 316 7%
Depreciation and
amortization 106 84 (26%)
Taxes other than income 39 63 38%
Total 638 858 26%
Operating Income (Loss) 110 132 (17%)
Non-operating Income 6 8 (25%)
Earnings (Loss) Before
Interest and Taxes $116 $140 (17%)
Electric
Total Operations
------------------------------
Year Ended
December 31,
------------ ----------- % Diff
2002 2001 Fav/(Unfav)
------------ ----------- -----------
Results of Operations:
Operating Revenues:
Operating revenues $3,018 $5,511 (45%)
ECOM true-up 697 --- ---
Total Revenues 3,715 5,511 (33%)
Operating Expenses:
Fuel and purchased power 1,101 2,527 56%
Operation and maintenance 966 1,052 8%
Depreciation and
amortization 428 453 6%
Taxes other than income 256 376 32%
Total 2,751 4,408 38%
Operating Income (Loss) 964 1,103 (13%)
Non-operating Income 24 45 (47%)
Earnings (Loss) Before
Interest and Taxes $988 $1,148 (14%)
Electric Operations
Operating Data: Year Ended December 31,
---------------------------------
Actual MWH Delivered 2002 2001
-------------- --------------
Residential 23,024,837 21,370,726 8%
Commercial 18,376,731 17,967,199 2%
Industrial 28,026,700 31,058,942 (10%)
Other 156,717 928,275 (83%)
Total 69,584,985 71,325,142 (2%)
Weather (average for
service area):
Percentage of normal:
Cooling degree days 100% 100% ---
Heating degree days 99% 88% 11%
Average number of metered
customers:
Residential 1,547,000 1,518,049 2%
Commercial 213,079 207,384 3%
Industrial 1,837 1,769 4%
Other 1 24 (96%)
Total 1,761,917 1,727,226 2%
Physical Electric Generation
Power Sales (MWH) 51,462,581 N/A
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Amended Annual Report on Form 10-K/A of Reliant Energy,
Incorporated.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
Natural Gas Distribution
----------------------------------------------------------
Quarter Ended Year Ended
December 31, % Diff December 31, % Diff
------------------ Fav/ ----------------- Fav/
2002 2001 (Unfav) 2002 2001 (Unfav)
--------- -------- ------ ------ ------ ------
Results of
Operations:
Operating
Revenues $1,303 $923 41% $3,960 $4,742 (16%)
Operating
Expenses:
Natural gas 999 675 (48%) 2,995 3,814 21%
Operation and
maintenance 158 121 (31%) 539 541 ---
Depreciation
and amortization 32 37 14% 126 147 14%
Taxes other
than income 30 22 (36%) 102 110 7%
Total 1,219 855 (43%) 3,762 4,612 18%
Operating Income 84 68 24% 198 130 52%
Non-operating Income 2 4 (50%) 12 19 (37%)
Earnings Before
Interest and Taxes $86 $72 19% $210 $149 41%
Natural Gas
Distribution
Operating Data:
Throughput data
in BCF
Residential and
Commercial 107 85 26% 324 310 5%
Industrial Sales 14 14 --- 47 50 (6%)
Transportation 15 13 15% 57 49 16%
Non-rate regulated
commercial and
industrial 125 106 18% 471 445 6%
Total Throughput 261 218 20% 899 854 5%
Weather (average
for service area)
Percentage of normal:
Heating degree
days 102% 80% 22% 100% 95% 5%
Average number
of customers:
Residential 2,735,261 2,688,500 2% 2,719,161 2,684,207 1%
Commercial
and
Industrial
Sales 248,413 245,334 1% 248,127 248,795 ---
Total 2,983,674 2,933,834 2% 2,967,288 2,933,002 1%
Pipelines and Gathering
----------------------------------------------------------
Quarter Ended Year Ended
December 31, % Diff December 31, % Diff
------------------ Fav/ ----------------- Fav/
2002 2001 (Unfav) 2002 2001 (Unfav)
--------- -------- ------ ------ ------ ------
Results of
Operations:
Operating
Revenues $93 $97 (4%) $374 $415 (10%)
Operating
Expenses:
Natural gas 12 14 14% 32 79 59%
Operation and
maintenance 32 31 (3%) 130 121 (7%)
Depreciation and
amortization 10 14 29% 41 58 29%
Taxes other
than income 4 7 43% 18 20 10%
Total 58 66 12% 221 278 21%
Operating Income 35 31 13% 153 137 12%
Non-operating
Income 1 --- --- 5 1 ---
Earnings Before
Interest and
Taxes $36 $31 16% $158 $138 14%
Pipelines and
Gathering
Operating Data:
Throughput data
in BCF
Natural Gas Sales 2 7 (71%) 14 18 (22%)
Transportation 212 206 3% 845 819 3%
Gathering 74 77 (4%) 287 300 (4%)
Elimination (1) (1) --- (3) (3) ---
Total
Throughput 287 289 (1%) 1,143 1,134 1%
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Amended Annual Report on Form 10-K/A of Reliant Energy,
Incorporated.
CenterPoint Energy, Inc. and Subsidiaries
Results of Operations by Segment
(Millions of Dollars)
(Unaudited)
Other Operations
-------------------------------------------------------
Quarter Ended Year Ended
December 31, % Diff December 31, % Diff
--------------- Fav/ -------------- Fav/
2002 2001 (Unfav) 2002 2001 (Unfav)
------ ------- ------- ------ ------ -------
Results of
Operations:
Operating
Revenues $17 $25 (32%) $32 $101 (68%)
Operating
Expenses (14) 107 113% 17 228 93%
Operating
Income (Loss) 31 (82) 138% 15 (127) 112%
Non-operating
Income (Expense) 5 (9) 156% (10) (10) ---
Earnings (Loss)
Before Interest
and Taxes $36 $(91) 140% $5 $(137) 104%
Reference is made to the Notes to the Consolidated Financial Statements
contained in the Amended Annual Report on Form 10-K/A of Reliant Energy,
Incorporated.
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