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CENTERPOINT ENERGY REPORTS FOURTH QUARTER
AND FULL YEAR 2009 EARNINGS

Houston, TX — February 26, 2010 - CenterPoint Energy, Inc. (NYSE: CNP) today reported net income of $105 million, or $0.27 per diluted share, for the fourth quarter of 2009 compared to $87 million, or $0.25 per diluted share, for the same period of 2008. Operating income for the fourth quarter of 2009 was $299 million compared to $303 million for the same period of 2008.

For the year ended December 31, 2009, net income was $372 million, or $1.01 per diluted share, compared to $446 million, or $1.30 per diluted share, for the same period of 2008. Operating income for the year ended December 31, 2009, was $1.1 billion compared to $1.3 billion for the same period of 2008.

“Our company performed well in 2009 in the face of a weak economy and challenging energy markets,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our regulated electric and natural gas utilities turned in solid operating and financial performances. The company’s interstate pipelines and field services businesses expanded their systems and increased throughput, but lower natural gas and natural gas liquids prices adversely affected their financial performances. Additionally, results of the competitive natural gas sales unit were adversely affected by substantially reduced locational and seasonal price differentials. As the economy improves and stronger energy markets emerge, our regulated utilities and natural gas businesses are well positioned to benefit.”

OPERATING INCOME BY SEGMENT

Electric Transmission & Distribution

The electric transmission & distribution segment reported operating income of $95 million for the fourth quarter of 2009, consisting of $61 million from the regulated electric transmission & distribution utility operations (TDU) and $34 million related to transition and system restoration bonds. Operating income for the fourth quarter of 2008 was $88 million, consisting of $55 million from the TDU and $33 million related to transition bonds. Operating income for the TDU benefited from growth of over 29,000 metered customers since December 2008, higher net transmission revenues and income associated with the company’s investment in an advanced metering system (AMS). These benefits were partially offset by reduced energy demand as well as higher operation and maintenance expenses. In addition, the fourth quarter of 2008 reflected lower operating expenses as resources were devoted to recovery from Hurricane Ike.

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Operating income for the year ended December 31, 2009, was $545 million, consisting of $414 million from the TDU and $131 million related to transition and system restoration bonds. Operating income for the same period of 2008 was $545 million, consisting of $407 million from the TDU, $133 million related to transition bonds and $5 million from the competition transition charge (CTC). The CTC was discontinued in February 2008 when the company securitized the remaining authorized true-up balance. Operating income for the TDU benefited from customer growth, higher net transmission revenues and income associated with the company’s investment in AMS, partially offset by reduced energy demand and increased operation and maintenance expenses, primarily employee-related. In addition, 2008 included a gain from a land sale, lower net revenues related to Hurricane Ike and a refund of prior years’ state franchise taxes.

Natural Gas Distribution

The natural gas distribution segment reported operating income of $99 million for the fourth quarter of 2009 compared to $96 million for the same period of 2008. Operating income increased from higher rates, other miscellaneous revenues and lower bad debt expense, partially offset by higher pension expense of $11 million.

Operating income for the year ended December 31, 2009, was $204 million compared to $215 million for the same period of 2008. The decline in operating income was primarily due to higher pension expense of $37 million and other operating expenses, partially offset by higher rates and lower bad debt expense.

Interstate Pipelines

The interstate pipelines segment reported operating income of $62 million for the fourth quarter of 2009 compared to $66 million for the same period of 2008. The decline in operating income was primarily due to higher pension and other operating expenses. Higher revenue from new firm contracts was offset by lower revenue from off-system sales.

In addition to operating income, this segment recorded equity income of $5 million for the fourth quarter of 2009 primarily from its 50 percent interest in the Southeast Supply Header (SESH), which went into service in September 2008, compared to equity income of $2 million for the same period of 2008.

Operating income for the year ended December 31, 2009, was $256 million compared to $293 million for the same period of 2008. The decline in operating income was primarily due to higher pension and other operating expenses. Higher revenue from new firm contracts was partially offset by lower revenue from ancillary services and off-system sales. Operating income for the year ended

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For Immediate Release

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December 31, 2008, included a net gain of $11 million associated with the sale of two storage development projects and a write-down of pipeline assets removed from service.

In addition to operating income, this segment had equity income of $7 million for the year ended December 31, 2009, primarily from its interest in SESH, which included non-cash charges of $16 million to reflect SESH’s discontinued use of regulatory accounting. For the year ended December 31, 2008, equity income was $36 million primarily from allowance for funds used during construction.

Field Services

The field services segment reported operating income of $22 million for the fourth quarter of 2009 compared to $26 million for the same period of 2008. The decline in operating income was primarily the result of commodity prices that were higher in 2008 than in 2009, partially offset by growth in core gathering throughput.

In addition to operating income, this segment recorded equity income of $2 million in the fourth quarter of 2009 compared to $3 million in the fourth quarter of 2008 from its 50 percent interest in a gas processing plant. The decline was primarily due to lower natural gas liquids prices.

Operating income for the year ended December 31, 2009, was $94 million compared to $147 million for the same period of 2008. The decline in operating income was primarily the result of commodity prices that were significantly lower in 2009 than in 2008, partially offset by growth in core gathering throughput. Operating income for the year ended December 31, 2008, included gains of $17 million associated with the sale of non-strategic assets and the settlement of a contractual dispute. Equity income from the jointly-owned gas processing plant was $8 million for the year ended December 31, 2009, compared to $15 million for the same period of 2008.

Competitive Natural Gas Sales and Services

The competitive natural gas sales and services segment reported operating income of $21 million for the fourth quarter of 2009 compared to $26 million for the same period of 2008. The decline in operating income was due to reduced locational and seasonal price differentials, partially offset by lower operation and maintenance expenses. In addition, operating income for the fourth quarter of 2009 included charges of $1 million resulting from mark-to-market accounting for derivatives associated with certain forward natural gas purchases and sales used to lock in economic margins. The fourth quarter of 2008 included a $6 million write-down of natural gas inventory to the lower of average cost or market.

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Operating income for the year ended December 31, 2009, was $21 million compared to $62 million for the same period of 2008. The decline in operating income was due to substantially reduced locational and seasonal price differentials. In addition, operating income for the year ended December 31, 2009, included charges of $23 million resulting from mark-to-market accounting compared to gains of $13 million for the same period of 2008. The year ended December 31, 2009, also included $6 million in inventory write-downs compared to $30 million in inventory write-downs for the same period of 2008.

DIVIDEND DECLARATION

On January 21, 2010, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.195 per share of common stock payable on March 10, 2010, to shareholders of record as of the close of business on February 16, 2010. This represents more than a 2.6 percent increase over the $0.19 per share of common stock quarterly dividends paid by the company in 2009.

OUTLOOK FOR 2010

CenterPoint Energy expects earnings for 2010 to be in the range of $1.02 to $1.12 per diluted share. This guidance takes into consideration various economic and operational assumptions related to the business segments in which the company operates. The company has made certain assumptions regarding the timing and cost of certain financing activities and the impact to earnings of various regulatory proceedings. In providing this guidance, the company has not included the impact of any changes in accounting standards, any impact from acquisitions or divestitures, the timing effects of mark-to-market or inventory accounting in the company’s competitive natural gas sales and services business, or the outcome of the TDU’s true-up appeal. The company has also excluded any impact to income from the change in value of Time Warner stocks and the related ZENS securities. For the impact of these factors on 2009 earnings, see the attached reconciliation.

FILING OF FORM 10-K FOR CENTERPOINT ENERGY, INC.

Today, CenterPoint Energy, Inc. filed with the Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the period ended December 31, 2009. A copy of that report is available on the company’s Web site, www.CenterPointEnergy.com, under the Investors section. Other filings the company makes with the SEC and other documents relating to its corporate governance can also be found on that site.

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WEBCAST OF EARNINGS CONFERENCE CALL

CenterPoint Energy’s management will host an earnings conference call on Friday, February 26, 2010, at 10:30 a.m. Central time or 11:30 a.m. Eastern time. Interested parties may listen to a live audio broadcast of the conference call at 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 at least one year. Supplemental materials are also available on the company’s Web site.

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines, and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. Assets total nearly $20 billion. With about 8,800 employees, CenterPoint Energy and its predecessor companies have been in business for more than 135 years. For more information, visit the Web site at 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 outcome of appeals from the true-up proceedings, the timing and impact of future regulatory, legislative, and IRS decisions, 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 natural gas and natural gas liquids prices, the impact of unplanned facility outages, and other factors discussed in CenterPoint Energy’s Form 10-K for the fiscal year ended December 31, 2009, and other filings with the SEC.

###

CenterPoint Energy, Inc. and Subsidiaries

Reconciliation of reported Net Income and diluted EPS to the basis used in providing earnings guidance

		Full Year Ended December 31, 2009
		Net Income				EPS
		(in millions)
As reported		$	372			$	1.01
Timing effects impacting CES*:
Mark-to-market (gains) losses — natural gas derivative contracts			15				0.04
Natural gas inventory write-downs			4				0.01
ZENS-related mark-to-market (gains) losses:
Marketable securities**			(53	)			(0.15	)
Indexed debt securities			44				0.12
Accounting change***			10				0.03
Per earnings guidance		$	392			$	1.06

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

		Quarter Ended								Year Ended
		December 31,								December 31,
		2008				2009				2008				2009
Revenues:
Electric Transmission & Distribution		$	445			$	472			$	1,916			$	2,013
Natural Gas Distribution			1,250				1,043				4,226				3,384
Competitive Natural Gas Sales and Services			896				634				4,528				2,230
Interstate Pipelines			182				137				650				598
Field Services			61				65				252				241
Other Operations			3				2				11				11
Eliminations			(63	)			(54	)			(261	)			(196	)
Total			2,774				2,299				11,322				8,281
Expenses:
Natural gas			1,791				1,290				7,466				4,371
Operation and maintenance			424				438				1,502				1,664
Depreciation and amortization			168				181				708				743
Taxes other than income taxes			88				91				373				379
Total			2,471				2,000				10,049				7,157
Operating Income			303				299				1,273				1,124
Other Income (Expense) :
Gain (loss) on marketable securities			(66	)			14				(139	)			82
Gain (loss) on indexed debt securities			62				(14	)			128				(68	)
Interest and other finance charges			(122	)			(129	)			(468	)			(513	)
Interest on transition and system restoration bonds			(34	)			(33	)			(136	)			(131	)
Distribution from AOL Time Warner litigation settlement			—				3				—				3
Additional distribution to ZENS holders			—				(3	)			—				(3	)
Equity in earnings of unconsolidated affiliates			5				7				51				15
Other — net			4				8				14				39
Total			(151	)			(147	)			(550	)			(576	)
Income Before Income Taxes			152				152				723				548
Income Tax Expense			(65	)			(47	)			(277	)			(176	)
Net Income		$	87			$	105			$	446			$	372

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
(Millions of Dollars, Except Share and Per Share Amounts)
(Unaudited)

		Quarter Ended								Year Ended
		December 31,								December 31,
		2008				2009				2008				2009
Basic Earnings Per Common Share		$	0.25			$	0.27			$	1.32			$	1.02
Diluted Earnings Per Common Share		$	0.25			$	0.27			$	1.30			$	1.01
Dividends Declared per Common Share		$	0.1825			$	0.19			$	0.73			$	0.76
Weighted Average Common Shares Outstanding (000):
-Basic			344,536				390,922				336,387				365,229
-Diluted			346,839				393,472				343,555				367,681
Operating Income (Loss) by Segment
Electric Transmission & Distribution:
Electric Transmission and Distribution Operations		$	55			$	61			$	407			$	414
Competition Transition Charge			—				—				5				—
Total Electric Transmission and Distribution Utility			55				61				412				414
Transition and System Restoration Bond Companies			33				34				133				131
Total Electric Transmission & Distribution			88				95				545				545
Natural Gas Distribution			96				99				215				204
Competitive Natural Gas Sales and Services			26				21				62				21
Interstate Pipelines			66				62				293				256
Field Services			26				22				147				94
Other Operations			1				—				11				4
Total		$	303			$	299			$	1,273			$	1,124

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												Year Ended
		December 31,								% Diff				December 31,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues:
Electric transmission and distribution utility		$	373			$	392				5	%		$	1,593			$	1,673				5	%
Transition and system restoration bond companies			72				80				11	%			323				340				5	%
Total			445				472				6	%			1,916				2,013				5	%
Expenses:
Operation and maintenance			201				211				(5	%)			703				774				(10	%)
Depreciation and amortization			69				70				(1	%)			277				277				—
Taxes other than income taxes			48				50				(4	%)			201				208				(3	%)
Transition and system restoration bond companies			39				46				(18	%)			190				209				(10	%)
Total			357				377				(6	%)			1,371				1,468				(7	%)
Operating Income		$	88			$	95				8	%		$	545			$	545				—
Operating Income:
Electric transmission and distribution operations		$	55			$	61				11	%		$	407			$	414				2	%
Competition transition charge			—				—				—				5				—				(100	%)
Transition and system restoration bond companies			33				34				3	%			133				131				(2	%)
Total Segment Operating Income		$	88			$	95				8	%		$	545			$	545				—
Electric Transmission & Distribution Operating Data:
Actual MWH Delivered
Residential			4,635,129				4,774,799				3	%			24,258,254				24,815,397				2	%
Total			16,316,691				16,632,601				2	%			74,839,972				74,579,298				—
Weather (average for service area):
Percentage of 10-year average:
Cooling degree days			88	%			82	%			(6	%)			102	%			105	%			3	%
Heating degree days			88	%			122	%			34	%			92	%			103	%			11	%
Number of metered customers - end of period:
Residential			1,821,267				1,849,019				2	%			1,821,267				1,849,019				2	%
Total			2,064,854				2,094,210				1	%			2,064,854				2,094,210				1	%

		Natural Gas Distribution
		Quarter Ended												Year Ended
		December 31,								% Diff				December 31,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues		$	1,250			$	1,043				(17	%)		$	4,226			$	3,384				(20	%)
Expenses:
Natural gas			928				713				23	%			3,124				2,251				28	%
Operation and maintenance			153				161				(5	%)			589				639				(8	%)
Depreciation and amortization			39				40				(3	%)			157				161				(3	%)
Taxes other than income taxes			34				30				12	%			141				129				9	%
Total			1,154				944				18	%			4,011				3,180				21	%
Operating Income		$	96			$	99				3	%		$	215			$	204				(5	%)
Natural Gas Distribution Operating Data:
Throughput data in BCF
Residential			58				62				7	%			175				173				(1	%)
Commercial and Industrial			65				69				6	%			236				233				(1	%)
Total Throughput			123				131				7	%			411				406				(1	%)
Weather (average for service area)
Percentage of 10-year average:
Heating degree days			102	%			110	%			8	%			104	%			105	%			1	%
Number of customers — end of period:
Residential			2,987,222				3,002,114				—				2,987,222				3,002,114				—
Commercial and Industrial			248,476				244,101				(2	%)			248,476				244,101				(2	%)
Total			3,235,698				3,246,215				—				3,235,698				3,246,215				—

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)

		Competitive Natural Gas Sales and Services
		Quarter Ended												Year Ended
		December 31,								% Diff				December 31,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues		$	896			$	634				(29	%)		$	4,528			$	2,230				(51	%)
Expenses:
Natural gas			856				603				30	%			4,423				2,165				51	%
Operation and maintenance			13				9				31	%			39				39				—
Depreciation and amortization			1				1				—				3				4				(33	%)
Taxes other than income taxes			—				—				—				1				1				—
Total			870				613				30	%			4,466				2,209				51	%
Operating Income		$	26			$	21				(19	%)		$	62			$	21				(66	%)
Competitive Natural Gas Sales and Services Operating Data:
Throughput data in BCF			136				134				(1	%)			528				504				(5	%)
Number of customers — end of period			9,771				11,168				14	%			9,771				11,168				14	%

		Interstate Pipelines
		Quarter Ended												Year Ended
		December 31,								% Diff				December 31,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues		$	182			$	137				(25	%)		$	650			$	598				(8	%)
Expenses:
Natural gas			58				12				79	%			155				97				37	%
Operation and maintenance			40				43				(8	%)			133				166				(25	%)
Depreciation and amortization			12				12				—				46				48				(4	%)
Taxes other than income taxes			6				8				(33	%)			23				31				(35	%)
Total			116				75				35	%			357				342				4	%
Operating Income		$	66			$	62				(6	%)		$	293			$	256				(13	%)
Pipelines Operating Data:
Throughput data in BCF
Transportation			393				357				(9	%)			1,538				1,592				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.

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

(Unaudited)

		Field Services
		Quarter Ended												Year Ended
		December 31,								% Diff				December 31,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues		$	61			$	65				7	%		$	252			$	241				(4	%)
Expenses:
Natural gas			10				15				(50	%)			21				51				(143	%)
Operation and maintenance			21				23				(10	%)			69				77				(12	%)
Depreciation and amortization			3				4				(33	%)			12				15				(25	%)
Taxes other than income taxes			1				1				—				3				4				(33	%)
Total			35				43				(23	%)			105				147				(40	%)
Operating Income		$	26			$	22				(15	%)		$	147			$	94				(36	%)
Field Services Operating Data:
Throughput data in BCF
Gathering			110				114				4	%			421				426				1	%

		Other Operations
		Quarter Ended												Year Ended
		December 31,								% Diff				December 31,								% Diff
		2008				2009				Fav/(Unfav)				2008				2009				Fav/(Unfav)
Results of Operations:
Revenues		$	3			$	2				(33	%)		$	11			$	11				—
Expenses			2				2				—				—				7				—
Operating Income		$	1			$	—				(100	%)		$	11			$	4				(64	%)

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

		Quarter Ended								Year Ended
		December 31,								December 31,
		2008				2009				2008				2009
Capital Expenditures by Segment
Electric Transmission & Distribution		$	80			$	114			$	336			$	402
Hurricane Ike			4				—				145				26
Total Electric Transmission & Distribution			84				114				481				428
Natural Gas Distribution			63				44				214				165
Competitive Natural Gas Sales and Services			5				—				8				2
Interstate Pipelines			59				58				189				176
Field Services			45				131				122				348
Other Operations			21				11				39				29
Total		$	277			$	358			$	1,053			$	1,148

Interest Expense Detail
(Millions of Dollars)
(Unaudited)

		Quarter Ended								Year Ended
		December 31,								December 31,
		2008				2009				2008				2009
Interest Expense Detail
Amortization of Deferred Financing Cost		$	7			$	7			$	25			$	34
Capitalization of Interest Cost			(2	)			—				(12	)			(4	)
Transition and System Restoration Bond Interest Expense			34				33				136				131
Other Interest Expense			117				122				455				483
Total Interest Expense		$	156			$	162			$	604			$	644

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 Consolidated Balance Sheets
(Millions of Dollars)

(Unaudited)

		December 31,				December 31,
		2008				2009
ASSETS
Current Assets:
Cash and cash equivalents		$	167			$	740
Other current assets			2,868				2,164
Total current assets			3,035				2,904
Property, Plant and Equipment, net			10,296				10,788
Other Assets:
Goodwill			1,696				1,696
Regulatory assets			3,684				3,677
Other non-current assets			965				708
Total other assets			6,345				6,081
Total Assets		$	19,676			$	19,773
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings		$	153			$	55
Current portion of transition and system restoration bonds long-term debt			208				241
Current portion of other long-term debt			125				662
Other current liabilities			2,362				2,080
Total current liabilities			2,848				3,038
Other Liabilities:
Accumulated deferred income taxes, net and investment tax credit			2,632				2,792
Regulatory liabilities			821				921
Other non-current liabilities			1,172				1,264
Total other liabilities			4,625				4,977
Long-term Debt:
Transition and system restoration bonds			2,381				2,805
Other			7,800				6,314
Total long-term debt			10,181				9,119
Shareholders’ Equity			2,022				2,639
Total Liabilities and Shareholders’ Equity		$	19,676			$	19,773

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
(Millions of Dollars)

(Unaudited)

		Year Ended December 31,
		2008				2009
Cash Flows from Operating Activities:
Net income		$	446			$	372
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			737				780
Deferred income taxes			487				269
Write-down of natural gas inventory			30				6
Changes in net regulatory assets			(366	)			—
Changes in other assets and liabilities			(450	)			398
Other, net			(33	)			16
Net Cash Provided by Operating Activities			851				1,841
Net Cash Used in Investing Activities			(1,368	)			(896	)
Net Cash Provided by (Used in) Financing Activities			555				(372	)
Net Increase in Cash and Cash Equivalents			38				573
Cash and Cash Equivalents at Beginning of Period			129				167
Cash and Cash Equivalents at End of Period		$	167			$	740