CenterPoint Energy, Inc. today reported net income of $58 million, or $0.19 per diluted share, for the second quarter of 2004 compared to income from continuing operations of $83 million, or $0.27 per diluted share, for the second quarter of 2003.

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Net income for the second quarter of 2003 was $63 million, or $0.21 per diluted share including a loss of $20 million ($0.06 per diluted share) from discontinued operations related primarily to the sale of the company's energy management services business.

"Although milder weather significantly impacted our quarterly results compared to last year, I am pleased with the progress we're making in our core business operations," said David McClanahan, president and chief executive officer of CenterPoint Energy. "Texas Genco, for which we recently announced a buyer, had a solid quarter due to increased wholesale electricity prices. With the prospective sale of this business, we are executing our strategy of de-leveraging the company with the proceeds from the monetization of our generation assets and focusing on our energy delivery businesses."

For the six months ended June 30, 2004, net income was $131 million, or $0.42 per diluted share. For the six months ended June 30, 2003, income from continuing operations before cumulative effect of accounting change was $164 million, or $0.54 per diluted share, and net income was $232 million, or $0.76 per diluted share. During the first six months of 2003, the company recorded a benefit of $80 million relating to the implementation of Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations" and a $13 million loss from discontinued operations.

SECOND QUARTER 2004 HIGHLIGHTS

Results for the second quarter of 2004 do not include any revenues related to Excess Cost over Market (ECOM) which was discontinued as of December 31, 2003, in accordance with the Texas electric restructuring law. In the second quarter of 2003, ECOM revenues amounted to $101 million. Results for the second quarter of 2004 include an improvement in operating income from Texas Genco of $69 million when compared to the second quarter of 2003. As a result of the pending sale of the company's 81 percent interest in Texas Genco, the electric generation segment will be reclassified as discontinued operations in the third quarter of 2004.

The core business operations of the company are electric transmission & distribution, natural gas distribution and pipelines and gathering. Core business operations results for the second quarter of 2004 compared to the same period of 2003 benefited from:

   --  continued customer growth, with the addition of over 96,000 metered
       electric and gas customers
   --  a decrease in interest expense of $19 million
   --  the reversal of $23 million, including $8 million in interest, of the
       $117 million reserve recorded in the fourth quarter of 2003 related
       to the final fuel reconciliation of the formerly integrated electric
       utility

Core business operations results for the second quarter of 2004 compared to the same period of 2003 were negatively impacted by:

   --  milder weather in 2004, impacting the quarter by $16 million
   --  higher net transmission costs of $5 million

On March 31, 2004, the company filed its true-up application with the Public Utility Commission of Texas (PUC) marking one of the final steps in the implementation of the Texas electric restructuring law. In this application the company is seeking to recover a total true-up balance of $3.7 billion, excluding interest, in accordance with the Texas electric restructuring law enacted in 1999. A hearing on the merits, presided over by the Texas Public Utility Commissioners, began on June 21st and concluded on July 7th. Various parties in the proceeding disputed the amounts the company is seeking and proposed complete or partial disallowance of its request. The company anticipates a decision from the PUC addressing issues other than interest in late August 2004 and a decision addressing the interest issue after a hearing scheduled for September 8, 2004.

SALE OF TEXAS GENCO

On July 21, 2004, CenterPoint Energy and Texas Genco announced a definitive agreement for GC Power Acquisition LLC, a newly formed entity owned in equal parts by affiliates of The Blackstone Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. L.P. and Texas Pacific Group, to acquire Texas Genco for approximately $3.65 billion in cash. The transaction, subject to customary regulatory approvals, will be accomplished in two steps. The first step, expected to be completed in the fourth quarter of 2004, involves Texas Genco's purchase of the 19 percent of its shares owned by the public for $47 per share, followed by GC Power Acquisition's purchase of a Texas Genco unit that will be formed to own its coal, lignite and gas-fired generation plants. In the second step of the transaction, expected to take place in the first quarter of 2005 following receipt of approval by the Nuclear Regulatory Commission, GC Power Acquisition will complete the acquisition of Texas Genco, the principal remaining asset of which will then be Texas Genco's interest in the South Texas Project nuclear facility. Total cash proceeds to CenterPoint Energy from both steps of the transaction will be approximately $2.9 billion, or $45.25 per share for its 81 percent interest in Texas Genco.

In connection with the transaction, Texas Genco entered into a master power purchase and sale agreement under which it has sold forward a substantial quantity of its remaining available baseload capacity through 2008. Texas Genco's obligations under the power purchase agreement will continue regardless of whether the transaction is completed.

As a result of this definitive agreement, Texas Genco will be reclassified as discontinued operations in the third quarter of 2004 and the company will record an after-tax loss of approximately $250 million related to the sale.

  OPERATING INCOME BY SEGMENT DETAILED

  Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $127 million in the second quarter of 2004, consisting of $118 million for the regulated transmission and distribution utility (TDU) and $9 million for the transition bond company, which is an amount sufficient to pay interest on the transition bonds. Operating income for the same period of 2003 totaled $235 million, consisting of $124 million for the TDU, $10 million for the transition bond company and $101 million of non-cash income associated with ECOM. ECOM is recoverable under the Texas electric restructuring law and is included in the company's true-up application filed with the PUC in March 2004. ECOM is the difference between the market prices received in 2002 and 2003 by its affiliated power generation company in the PUC mandated auctions and the projections for the same periods made previously by the PUC. Beginning in 2004, there is no ECOM contribution to earnings.

The TDU continues to benefit from solid customer growth as over 51,000 metered customers were added since June 2003. However, milder weather ($14 million) more than offset this growth. Higher operation and maintenance expenses related to increased transmission payments to transmission providers were more than offset by a $15 million reversal of an $87 million reserve related to the final fuel reconciliation of the formerly integrated electric utility recorded in the fourth quarter of 2003.

Operating income for the six months ended June 30, 2004, was $212 million, consisting of $193 million for the TDU and $19 million for the transition bond company. Operating income for the same period of 2003 totaled $440 million, consisting of $187 million for the TDU, $20 million for the transition bond company and $233 million of non-cash income associated with ECOM.

Electric Generation

Texas Genco reported operating income of $119 million for the second quarter of 2004 compared to $50 million for the same period of 2003 due primarily to higher prices for baseload products. Operation and maintenance expenses for the second quarter of 2004 were lower than the prior year resulting primarily from lower expenses associated with planned and unplanned outages.

Operating income for the six months ended June 30, 2004, was $210 million compared to $33 million for the same period of 2003.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $23 million for the second quarter of 2004 compared to $21 million for the same period of 2003. Continued customer growth, with the addition of approximately 45,000 customers since June 2003, and higher revenues from rate increases were partially offset by milder weather ($2 million) and reduced contribution from the company's competitive commercial and industrial sales business.

Operating income for the six months ended June 30, 2004, was $139 million, compared to $151 million for the same period of 2003.

Pipelines and Gathering

The pipelines and gathering segment reported operating income of $42 million for both the second quarters of 2003 and 2004. Increased transportation and gas gathering margins were offset by higher operation and maintenance expenses primarily related to pipeline integrity expenditures.

Operating income for the six months ended June 30, 2004, was $87 million compared to $85 million for the same period of 2003.

Other Operations

The company's other operations reported an operating loss of $3 million for the second quarter of 2004 compared to an operating loss of $2 million for the same period of 2003.

The operating loss for the six months ended June 30, 2004, was $5 million compared to an operating loss of $2 million for the same period of 2003.

WEBCAST OF EARNINGS CONFERENCE CALL

The managements of CenterPoint Energy and Texas Genco will host an earnings conference call on Friday, August 6, 2004, at 10:30 a.m. Central time. Interested parties may listen to a live, audio broadcast of the conference call at http://www.centerpointenergy.com/investors/events , or at http://www.txgenco.com/investor.html . A replay of the call can be accessed approximately two hours after the completion of the call, and will be archived on CenterPoint Energy's 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 and sales, interstate pipeline and gathering operations, and more than 14,000 megawatts of power generation in Texas, of which approximately 2,500 megawatts are currently in mothball status. The company serves nearly five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $21 billion. With more than 11,000 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at http://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 impact of future regulatory and legislative decisions, successful consummation and timing of the sale of Texas Genco, 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, 2003, Form 10-Qs for the period ended March 31, 2004 and other filings with the Securities and Exchange Commission.

                CenterPoint Energy, Inc. and Subsidiaries
                    Statements of Consolidated Income
                          (Thousands of Dollars)
                               (Unaudited)

                                    Quarter Ended       Six months Ended
                                       June 30,              June 30,
                                   2004       2003       2004       2003
                                 ---------  ---------  ---------  ---------

  Revenues:
    Electric Transmission &
     Distribution                 $374,003   $481,772   $703,153   $929,175
    Electric Generation            552,718    578,511    991,847    937,098
    Natural Gas Distribution     1,244,985    970,576  3,376,317  3,015,327
    Pipelines and Gathering        113,397    121,716    215,800    230,824
    Other Operations                 2,891      9,322      5,780     18,252
    Eliminations                   (46,817)   (70,997)   (92,533)  (139,608)
      Total                      2,241,177  2,090,900  5,200,364  4,991,068

  Expenses:
    Fuel and cost of gas sold    1,264,655  1,080,857  3,206,913  2,940,003
    Purchased power                 18,098     22,974     26,368     34,968
    Operation and maintenance      391,373    393,085    801,985    805,961
    Depreciation and amortization  160,681    157,263    317,268    309,544
    Taxes other than income taxes   98,297     90,691    204,542    193,535
      Total                      1,933,104  1,744,870  4,557,076  4,284,011
  Operating Income                 308,073    346,030    643,288    707,057

  Other Income (Expense):
    Gain (loss) on Time Warner
     investment                     15,581    113,178     (8,872)    64,704
    Gain (loss) on indexed debt
     securities                    (17,891)   (98,253)     9,123    (55,550)
    Interest and other finance
     charges                      (200,803)  (219,150)  (395,555)  (447,194)
    Interest on transition bonds    (9,547)    (9,836)   (19,221)   (19,684)
    Other - net                     15,731      1,629     17,555      4,788
      Total                       (196,929)  (212,432)  (396,970)  (452,936)

  Income from Continuing
   Operations Before Income
   Taxes, Minority Interest
   and Cumulative Effect of
   Accounting Change               111,144    133,598    246,318    254,121

  Income Tax Expense               (38,243)   (44,346)   (88,240)   (85,455)
  Minority Interest                (15,249)    (6,295)   (26,839)    (4,229)

  Income from Continuing
   Operations Before
   Cumulative Effect of
   Accounting Change                57,652     82,957    131,239    164,437

  Discontinued Operations:
   Loss from Other Operations,
    net of tax                         ---       (403)       ---       (865)
   Loss on Disposal of Other
    Operations, net of tax             ---    (19,331)       ---    (11,989)
      Total                            ---    (19,734)       ---    (12,854)

  Cumulative Effect of
   Accounting Change, net of
   minority interest and tax           ---        ---        ---     80,072

  Net Income                       $57,652    $63,223   $131,239   $231,655

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


                CenterPoint Energy, Inc. and Subsidiaries
           Selected Data From Statements of Consolidated Income
             (Thousands of Dollars, Except Per Share Amounts)
                               (Unaudited)

                                  Quarter Ended         Six Months Ended
                                     June 30,               June 30,
                                  2004      2003         2004      2003
                                -------   -------      -------  --------

  Basic Earnings Per Common
   Share:
    Income from Continuing
     Operations before
     Cumulative Effect of
     Accounting Change            $0.19     $0.27        $0.43     $0.54
    Discontinued Operations:
      Loss from Other
       Operations, net of tax       ---       ---          ---       ---
      Loss on Disposal of Other
       Operations, net of tax       ---     (0.06)         ---     (0.04)
    Cumulative Effect of
     Accounting Change, net of
     minority interest and tax      ---       ---          ---      0.27
    Net Income                    $0.19     $0.21        $0.43     $0.77

  Diluted Earnings Per Common
   Share:
    Income from Continuing
     Operations before
     Cumulative Effect of
     Accounting Change            $0.19     $0.27        $0.42     $0.54
    Discontinued Operations:
      Loss from Other
       Operations, net of tax       ---       ---          ---       ---
      Loss on Disposal of Other
       Operations, net of tax       ---     (0.06)         ---     (0.04)
    Cumulative Effect of
     Accounting Change, net of
     minority interest and tax      ---       ---          ---      0.26
    Net Income                    $0.19     $0.21        $0.42     $0.76

  Dividends Declared per
   Common Share                   $0.10     $0.20 (A)    $0.20     $0.30 (A)

  Weighted Average Common
   Shares Outstanding (000):
    - Basic                     307,250   304,046      306,631   302,373
    - Diluted                   309,638   306,104      308,977   304,149

  Operating Income (Loss) by Segment

  Electric Transmission &
   Distribution:
    Transmission &
     Distribution Operations   $117,822  $123,541     $193,107  $187,435
    Transition Bond Company       9,498     9,775       19,106    19,519
    ECOM True-up                    ---   101,318          ---   233,281
      Total Electric
       Transmission
       & Distribution           127,320   234,634      212,213   440,235
  Electric Generation           119,027    50,044      209,619    32,928
  Natural Gas Distribution       22,774    20,951      139,385   150,512
  Pipelines and Gathering        42,237    42,355       87,093    85,249
  Other Operations               (3,285)   (1,954)      (5,022)   (1,867)

  Total                        $308,073  $346,030     $643,288  $707,057

   (A)  Includes a dividend declared on June 18, 2003 payable on
        September 10, 2003.

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


                CenterPoint Energy, Inc. and Subsidiaries
                     Results of Operations by Segment
                          (Millions of Dollars)
                               (Unaudited)

                                       Electric Transmission & Distribution

                                              Quarter Ended
                                                 June 30,         % Diff
                                           2004          2003    Fav/(Unfav)
                                          ------        ------   -----------
  Results of Operations:
  Revenues:
    Electric revenues                       $356          $364      (2%)
    ECOM revenues                            ---           101     ---
    Transition bond revenues                  18            17       6%
      Total Revenues                         374           482     (22%)
  Expenses:
    Operation and maintenance                124           126       2%
    Depreciation and amortization             63            61      (3%)
    Taxes other than income taxes             51            53       4%
    Transition bond expenses                   9             7     (29%)
      Total                                  247           247     ---
  Operating Income                          $127          $235     (46%)


  Electric Transmission & Distribution        Quarter Ended
  Operating Data:                                June 30,
  Actual MWH Delivered                     2004          2003
                                      ----------    ----------
  Residential                          5,800,958     6,490,357     (11%)
  Total                               18,545,202    19,086,163      (3%)

  Weather (average for service area):
  Percentage of normal:
    Cooling degree days                      100%          118%    (18%)
    Heating degree days                      100%           71%     29%


  Average number of metered customers:
    Residential                        1,634,202     1,585,815       3%
    Commercial and Industrial            222,644       221,620     ---
      Total                            1,856,846     1,807,435       3%


                                       Electric Transmission & Distribution

                                           Six Months Ended
                                                June 30,           % Diff
                                           2004          2003    Fav/(Unfav)
                                          ------        ------   -----------
  Results of Operations:
  Revenues:
    Electric revenues                       $670          $666       1%
    ECOM revenues                            ---           233     ---
    Transition bond revenues                  33            30      10%
      Total Revenues                         703           929     (24%)
  Expenses:
    Operation and maintenance                256           259       1%
    Depreciation and amortization            123           123     ---
    Taxes other than income taxes             98            97      (1%)
    Transition bond expenses                  14            10     (40%)
      Total                                  491           489     ---
  Operating Income                          $212          $440     (52%)


  Electric Transmission & Distribution      Six Months Ended
  Operating Data:                               June 30,
  Actual MWH Delivered                     2004          2003
                                      ----------    ----------
  Residential                         10,202,783    11,048,552      (8%)
  Total                               34,065,288    33,874,139       1%

  Weather (average for service area):
  Percentage of normal:
    Cooling degree days                     100%          110%     (10%)
    Heating degree days                      86%          111%     (25%)


  Average number of metered customers:
    Residential                        1,628,074     1,581,465       3%
    Commercial and Industrial            221,688       221,364     ---
      Total                            1,849,762     1,802,829       3%


                                                  Electric Generation

                                              Quarter Ended        % Diff
                                                 June 30,
                                            2004          2003   Fav/(Unfav)
                                           ------        ------  -----------
  Results of Operations:
  Revenues                                  $553          $578      (4%)
  Expenses:
    Fuel                                     264           349      24%
    Purchased power                           18            23      22%
    Operation and maintenance                 99           105       6%
    Depreciation and amortization             41            39      (5%)
    Taxes other than income taxes             12            12     ---
      Total                                  434           528      18%
  Operating Income                          $119           $50     138%



  Electric Generation Operating Data:
    Sales (MWH)                       11,962,375    12,517,492      (4%)
    Generation (MWH)                  11,542,226    12,077,631      (4%)

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


                                                 Electric Generation

                                             Six Months Ended      % Diff
                                                 June 30,
                                            2004          2003   Fav/(Unfav)
                                           ------        ------  -----------
  Results of Operations:
  Revenues                                  $992          $937       6%
  Expenses:
    Fuel                                     451           557      19%
    Purchased power                           26            35      26%
    Operation and maintenance                200           211       5%
    Depreciation and amortization             81            78      (4%)
    Taxes other than income taxes             24            23      (4%)
      Total                                  782           904      13%
  Operating Income                          $210           $33     536%

  Electric Generation Operating Data:
    Sales (MWH)                       22,683,153    21,793,836       4%
    Generation (MWH)                  21,691,416    21,072,384       3%

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


                 CenterPoint Energy, Inc. and Subsidiaries
                     Results of Operations by Segment
                           (Millions of Dollars)
                                (Unaudited)

                                              Natural Gas Distribution

                                             Quarter Ended
                                                June 30,          % Diff
                                            2004          2003   Fav/(Unfav)
                                          -------        ------  -----------
  Results of Operations:
  Revenues                                $1,245          $971      28%
  Expenses:
    Natural gas                            1,027           761     (35%)
    Operation and maintenance                133           137       3%
    Depreciation and amortization             35            34      (3%)
    Taxes other than income taxes             27            18     (50%)
      Total                                1,222           950     (29%)
  Operating Income                           $23           $21      10%

  Natural Gas Distribution Operating Data:
  Throughput data in BCF
  Residential                                 21            20       5%
  Commercial and Industrial                   49            39      26%
  Non-rate regulated Commercial and
   Industrial                                167           116      44%
  Elimination                                (63)          (25)   (152%)
    Total Throughput                         174           150      16%


  Weather (average for service area)
  Percentage of normal:
    Heating degree days                       92%           89%      3%


  Average number of customers:
    Residential                        2,789,897     2,746,489       2%
    Commercial and Industrial            245,511       245,059     ---
    Non-rate regulated Commercial and
     Industrial                            6,265         5,317      18%
      Total                            3,041,673     2,996,865       1%


                                              Natural Gas Distribution

                                             Six Months Ended
                                                 June 30,          % Diff
                                           2004          2003    Fav/(Unfav)
                                         -------        ------   -----------
  Results of Operations:
  Revenues                                $3,376        $3,015      12%
  Expenses:
    Natural gas                            2,817         2,455     (15%)
    Operation and maintenance                283           284     ---
    Depreciation and amortization             70            67      (4%)
    Taxes other than income taxes             67            58     (16%)
      Total                                3,237         2,864     (13%)
  Operating Income                          $139          $151      (8%)

  Natural Gas Distribution Operating Data:
  Throughput data in BCF
  Residential                                106           114      (7%)
  Commercial and Industrial                  132           128       3%
  Non-rate regulated Commercial
   and Industrial                            306           245      25%
  Elimination                                (73)          (40)    (83%)
    Total Throughput                         471           447       5%


  Weather (average for service area)
  Percentage of normal:
    Heating degree days                       96%          104%     (8%)


  Average number of customers:
    Residential                        2,798,979     2,758,274       1%
    Commercial and Industrial            247,788       246,413       1%
    Non-rate regulated Commercial and
     Industrial                            6,228         5,245      19%
      Total                            3,052,995     3,009,932       1%


                                              Pipelines and Gathering

                                         Quarter          Six Months
                                          Ended             Ended
                                         June 30, % Diff   June 30,  % Diff
                                                    Fav/               Fav/
                                       2004  2003 (Unfav) 2004  2003 (Unfav)
                                       ----  ---- ------- ----  ---- -------
  Results of Operations:
  Revenues                             $113  $122   (7%)  $216  $231   (6%)
  Expenses:
    Natural gas                          18    35   49%     28    56   50%
    Operation and maintenance            37    30  (23%)    70    60  (17%)
    Depreciation and amortization        11    11  ---      22    21   (5%)
    Taxes other than income taxes         5     4  (25%)     9     9  ---
      Total                              71    80   11%    129   146   12%
  Operating Income                      $42   $42  ---     $87   $85    2%


  Pipelines and Gathering Operating Data:
  Throughput data in BCF
  Natural Gas Sales                       4     4  ---       7     8  (13%)
  Transportation                        207   203    2%    477   471    1%
  Gathering                              79    74    7%    154   146    5%
  Elimination                            (3)   (2) (50%)    (5)   (4) (25%)
    Total Throughput                    287   279    3%    633   621    2%

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


                  CenterPoint Energy, Inc. and Subsidiaries
                       Results of Operations by Segment
                            (Millions of Dollars)
                                 (Unaudited)

                                                 Other Operations

                                         Quarter          Six Months
                                          Ended             Ended
                                        June 30,  % Diff   June 30,  % Diff
                                                   Fav/                Fav/
                                       2004  2003 (Unfav) 2004  2003 (Unfav)
                                       ----  ---- ------- ----  ---- -------
  Results of Operations:
  Revenues                               $3    $9  (67%)   $6   $18   (67%)
  Expenses                                6    11   45%    11    20    45%
  Operating Loss                        $(3)  $(2) (50%)  $(5)  $(2) (150%)


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

                                           Quarter Ended    Six Months Ended
                                              June 30,          June 30,
                                            2004     2003     2004     2003
                                            ----     ----     ----     ----
  Capital Expenditures by Segment
    Electric Transmission & Distribution     $52      $58      $94     $105
    Electric Generation                       13       33       37       78
    Natural Gas Distribution                  43       52       80       82
    Pipelines and Gathering                    9        8       24       29
    Other Operations                           7        7       12        7
    Total                                   $124     $158     $247     $301



                  CenterPoint Energy, Inc. and Subsidiaries
                    Condensed Consolidated Balance Sheets
                           (Thousands of Dollars)
                                 (Unaudited)

                                               June 30,        December 31,
                                                 2004              2003
                                   ASSETS     ----------       ----------
  Current Assets:
    Cash and cash equivalents                   $280,912          $131,480
    Other current assets                       1,749,199         2,141,225
        Total current assets                   2,030,111         2,272,705

  Property, Plant and Equipment, net          11,795,502        11,811,536

  Other Assets:
    Goodwill, net                              1,740,510         1,740,510
    Regulatory assets                          4,959,059         4,930,793
    Other non-current assets                     627,182           621,120
        Total other assets                     7,326,751         7,292,423
          Total Assets                       $21,152,364       $21,376,664

          LIABILITIES AND SHAREHOLDERS' EQUITY

  Current Liabilities:
    Current portion of transition bond
     long-term debt                              $43,099           $41,189
    Short-term borrowings and current
     portion of other long-term debt             164,669           184,234
    Other current liabilities                  2,167,188         2,292,913
        Total current liabilities              2,374,956         2,518,336

  Other Liabilities:
    Accumulated deferred income taxes,
     net and investment tax credit             3,272,231         3,222,308
    Regulatory liabilities                     1,254,318         1,358,030
    Other non-current liabilities              1,584,134         1,555,459
        Total other liabilities                6,110,683         6,135,797

  Long-term Debt:
    Transition bond                              659,773           675,665
    Other                                      9,941,314        10,107,399
        Total long-term debt                  10,601,087        10,783,064

  Minority Interest in Consolidated
   Subsidiaries                                  198,131           178,910

  Shareholders' Equity                         1,867,507         1,760,557
        Total Liabilities and
         Shareholders' Equity                $21,152,364       $21,376,664

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


                  CenterPoint Energy, Inc. and Subsidiaries
               Condensed Statements of Consolidated Cash Flows
                           (Thousands of Dollars)
                                 (Unaudited)

                                                 Six Months Ended June 30,
                                                  2004              2003
                                                --------          --------
  Cash Flows from Operating Activities:
    Net income                                  $131,239          $231,655
    Discontinued operations, net of tax              ---            12,854
    Cumulative effect of accounting
     change, net                                     ---           (80,072)
    Income from continuing operations
     and cumulative effect of
      accounting change                          131,239           164,437
    Adjustments to reconcile income
     from continuing operations to net
      cash provided by operating activities:
      Depreciation and amortization              376,260           390,142
      Deferred income taxes and
       investment tax credit                      41,817           147,589
      Changes in net regulatory assets
       and liabilities                          (157,728)         (357,740)
      Changes in other assets and liabilities    280,280          (119,792)
      Other, net                                  18,492            17,534
  Net Cash Provided by Operating Activities      690,360           242,170

  Net Cash Used in Investing Activities         (256,677)         (299,274)

  Net Cash Used in Financing Activities         (284,251)         (210,632)

  Net Cash Provided by Discontinued Operations       ---            13,619

  Net Increase (Decrease) in Cash and
   Cash Equivalents                              149,432          (254,117)

  Cash and Cash Equivalents at
   Beginning of Period                           131,480           304,281

  Cash and Cash Equivalents at End of Period    $280,912           $50,164
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SOURCE: CenterPoint Energy, Inc.

CONTACT: media, Leticia Lowe, +1-713-207-7702, or investors, Marianne
Paulsen, +1-713-207-6500, both of CenterPoint Energy, Inc.