8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 26, 2014

CENTERPOINT ENERGY, INC.

(Exact name of registrant as specified in its charter)

Texas	1-31447	74-0694415
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
1111 Louisiana Houston, Texas		77002
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (713) 207-1111

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01. REGULATION FD DISCLOSURE.

On February 26, 2014, CenterPoint Energy, Inc. (“CenterPoint Energy”) reported fourth quarter and full year 2013 earnings. For additional information regarding CenterPoint Energy’s 2013 earnings, please refer to the supplemental materials which are being posted on CenterPoint Energy’s website and are attached to this report as Exhibit 99.1 (the “Supplemental Materials”), which Supplemental Materials are incorporated by reference herein. The information in the Supplemental Materials is being furnished, not filed, pursuant to Regulation FD. Accordingly, the information in the Supplemental Materials will not be incorporated by reference into any registration statement filed by CenterPoint Energy under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

The exhibit listed below is furnished pursuant to Item 7.01 of this Form 8-K.

(d) Exhibit.

99.1 Supplemental Materials regarding CenterPoint Energy, Inc.’s 2013 earnings.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CENTERPOINT ENERGY, INC.
Date: February 26, 2014	By:	/s/ Christopher J. Arntzen
		Christopher J. Arntzen
		Vice President, Deputy General Counsel and Assistant Corporate Secretary

EXHIBIT INDEX

EXHIBIT NUMBER	EXHIBIT DESCRIPTION
99.1	Supplemental Materials regarding CenterPoint Energy, Inc.’s 2013 earnings.

EX-99.1

The Benefits of a Diversified Electric & Natural Gas Portfolio

NYSE: CNP

CenterPointEnergy.com

Full Year 2013 Earnings

Supplemental Materials

February 26, 2014

Exhibit 99.1

February 26, 2014

2

Year End 2013 Supplemental Materials

Cautionary Statement Regarding

Forward-Looking

Information

We have based our forward-looking statements on our management's beliefs and assumptions based

on information currently available to our management at the time the statements are made.  We caution

you that assumptions, beliefs, expectations, intentions, and projections about future events may and

often do vary materially from actual results.  Therefore, we cannot assure you that actual results will not

differ materially from those expressed or implied by our forward-looking statements.

Some of the factors that could cause actual results to differ from those expressed or implied by our

forward-looking statements include the timing and impact of future regulatory, legislative and IRS

decisions, financial market conditions, future market conditions, and other factors described in

CenterPoint Energy, Inc.’s Form 10-K for the period ended December 31, 2013, under “Risk Factors”

and “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Certain

Factors Affecting Future Earnings”, and in other filings with the SEC by CenterPoint Energy. 

You should not place undue reliance on forward-looking statements.  Each forward-looking statement

speaks only as of the date of this presentation, and we undertake no obligation to publicly update or

revise any forward-looking statements except as required by law.

This presentation contains statements concerning our expectations, beliefs, plans, objectives, goals,

strategies, future events or performance and underlying assumptions and other statements that are not

historical facts.  These statements are “forward-looking statements” within the meaning of the Private

Securities Litigation Reform Act of 1995.  Actual results may differ materially from those expressed or

implied by these statements.  You can generally identify our forward-looking statements by the words

“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,”  “intend,”  “may,”

“objective,” “plan,” “potential,” “predict,” “projection,” “should,” “will,” or other similar words.

February 26, 2014

3

Year End 2013 Supplemental Materials

•

Scott M. Prochazka named President and CEO

•

Total shareholder return of 24.7% compared to S&P 500 Utility Index of 13.2%

•

Strong financial and operational performances from our utility businesses

Sustained strong economic activity with the addition of approximately 45,000 customers and

continued

3

rd

party

interest

in

access

to

our

transmission

rights-of-way

for

our

electric

utility

Rate changes and cost management efforts led to one of the strongest overall performances for

our natural gas utilities

Invested nearly $1.2 billion in our utility operations, up 22 percent from 2012, to address

increasing demands associated with system safety, reliability, growth and ongoing maintenance

•

Formed

Enable

Midstream

Partners

with

contribution

of

Interstate

Pipelines

and

Field

Services businesses

On-going ownership interest in Enable Midstream is expected to provide attractive investment

returns and cash flows

•

Consolidated

external

debt

reduction

of

approximately

$1

billion

resulting

in

savings

of

approximately $71 million of annualized interest expense, excluding securitization bonds

•

Increased dividend 14.5% in January 2014, resulting  in 9 consecutive years of dividend

growth

2013 Year Highlights

2013 Financial Results

Midstream Operating Income moved to Equity Income on May 1, 2013

2012

CEHE, Gas Operations, CES and Other Op Income

Field Services, Interstate Pipelines Op Income

($, millions)

Transition & Restoration Bond Company Op Income

Includes $252

CES Goodwill

Impairment

As reported, 12 months ended December 31

Waskom Gas Processing Company

South East Supply Header, LLC 

Enable Midstream Partners, LLC

Operating

Income

Equity Income

•

For the full year 2012, CenterPoint Energy held a

50% interest in the Southeast Supply Header, LLC

(SESH)

•

On July 31, 2012 CenterPoint Energy Field Services

acquired the remaining 50% interest in Waskom Gas

Processing; earnings were reported as operating

income effective August 1, 2012

•

On May 1, 2013, CenterPoint Energy formed Enable

Midstream Partners, which includes  CenterPoint

Energy’s former Interstate Pipelines and Field

Services segments and a 24.95% interest in SESH

•

Effective May 1, 2013 midstream operations are

reported as Equity Income as part of CenterPoint

Energy’s midstream investment segment

•

For the four months ended April 30, 2013,

CenterPoint Energy maintained 50% ownership

interest in SESH and its results are reported as

Equity Income

•

For the eight months May 1 to December 31, 2013,

CenterPoint Energy retained 25.05% ownership

interest in SESH and its results are reported as

Equity Income

$

February 26, 2014

4

Year End 2013 Supplemental Materials

February 26, 2014

5

Year End 2013 Supplemental Materials

Electric Transmission & Distribution Utility

2013 Operating Income Drivers

43%

($, millions)

Higher 

transmission

related

revenues, net

of costs billed

by other

transmission

providers

Growth

Higher

right-of-way

revenue

Lower usage

primarily due

to weather,

net of winter

weather

hedge

Lower

True-up

related

equity return

Higher O&M,

including

employee,

contractor

and

insurance

related

expenses

Higher

Depreciation

Higher Taxes,

mostly

property

*

Excludes operating income from transition and system restoration bonds of $147 million in 2012 and $133 million in 2013

2013

2012

$

February 26, 2014

6

Year End 2013 Supplemental Materials

Electric Transmission & Distribution Utility

Capital Expenditures Expectations

($, millions)

2013A

2014E

2015E

2016E

2017E

2018E

Transmission

45%

34%

42%

37%

29%

28%

Distribution

49%

61%

55%

60%

66%

67%

February 26, 2014

7

Year End 2013 Supplemental Materials

Electric Transmission & Distribution Utility

Rights-of-Way Revenue

$

($, millions)

February 26, 2014

8

Year End 2013 Supplemental Materials

Natural Gas Utilities

2013 Operating Income Drivers

($, millions)

Increased

revenues,

due to a

return to

more

normal

weather in

2013 vs.

2012, net

of weather

hedge and

WNA

Higher O&M,

Employee &

Contractor

related

expenses

Higher O&M,

Bad Debt

Higher

Depreciation

Higher

Taxes,

mostly

property

Rate

Increases

2012

2013

Growth

$

February 26, 2014

9

Year End 2013 Supplemental Materials

Natural Gas Utilities

Capital Expenditures Expectations

($, millions)

$

Note: Annual mechanisms reduce the recovery lag time versus traditional rate cases.

Capital Recovery Method

2013A

2014E

2015E

2016E

2017E

2018E

Annual Mechanisms

48%

45%

50%

32%

51%

53%

Rate Cases

52%

55%

50%

68%

49%

47%

CenterPoint Energy Services

2013 Operating Income Drivers

($, millions)

*  Excludes 2012’s $252 Goodwill Impairment Charge

2013

2012

Mark-to-Market Accounting

$(2)

$(16)

Goodwill Impairment Charge

$0

$252

2012

$

Higher base

margin

2012

divestiture 

of non-

strategic

business

Positive

impact of

mark-to-

market

accounting

Lower O&M

2013

2013 exit

non-strategic

assets

10

February 26, 2014

Year End 2013 Supplemental Materials

February 26, 2014

Year End 2013 Supplemental Materials

Debt and Capitalization Ratio

Excluding transition and system restoration bonds

*  The transition and system restoration bonds are non-recourse to CenterPoint Energy and CenterPoint Energy Houston Electric and are serviced through

collections of separate charges which are held in trust.

** The debt component reflected on the financial statements was $138 million as of December 31, 2012, and $143 million as of December 31, 2013.  The

principal amount on which 2% interest is paid was $840 million as of December 31, 2012, and $828 million as of December 31, 2013.  The contingent

principal amount was $784 million as of December 31, 2012, and $763 million as of December 31, 2013.

($, millions)

11

December 31,

December 31,

2013

2012

Short-term Debt:

Short-term borrowings

43

$        

38

$        

Current portion of transition and system restoration bonds*

354

447

Indexed debt (ZENS)**

143

138

Current portion of other long-term debt

-

815

Long-term Debt:

Transition and system restoration bonds*

3,046

3,400

Other

4,771

4,957

Total Debt

8,357

$   

9,795

$  

Less:  Transition and system restoration bonds (including current portion)*

3,400

3,847

Total Debt, excluding transition and system restoration bonds

4,957

$   

5,948

$  

Total Shareholders' Equity

4,329

$   

4,301

$  

Total Capitalization, excluding transition and system restoration bonds

9,286

$   

10,249

$

Total Debt/Total Capitalization, excluding transition and system

restoration bonds

53.4%

58.0%

Credit Metrics and Ratings

(1) General mortgage bonds and first mortgage bonds.

(a) Moody's rating outlook is an opinion regarding the likely direction of a  rating over the medium term.

(b) S&P rating outlook assesses the potential direction of a long-term credit rating over the intermediate to longer term.

Total Debt / EBITDA*

FFO / Total Debt*

Rating

Outlook

a

Rating

Outlook

b

Rating

Outlook

c

CenterPoint Energy (Senior Unsecured)

Baa1

Stable

BBB+

Stable

BBB

Stable

CEHE (Senior Secured)

(1)

A1

Stable

A

Stable

A

Stable

CERC (Senior Unsecured)

Baa2

Stable

A-

Stable

BBB

Stable

Moody’s

S&P

Fitch

Credit Ratings

February 26, 2014

12

Year End 2013 Supplemental Materials

(c)

Fitch

rating

outlook

encompasses

a

one-

to

two-year

horizon

as

to

the

likely

ratings

direction.

*

Calculated

per

the

company’s

interpretation

of

S&P’s

revised

methodology.

In

2013,

S&P

revised

their

methodology.

S&P’s

calculations

may

vary.

February 26, 2014

13

Year End 2013 Supplemental Materials

Liquidity

Available Liquidity ($MM)

Amount Utilized

Amount Unutilized

at 2/14/2014

at 2/14/2014

CenterPoint Energy

Revolver

1,200

$    

6

$                     

1,194

$                 

CEHE

Revolver

300

$       

4

$                     

296

$                    

CERC

Revolver

600

$       

-

$                  

600

$                    

Total Facilities

2,100

$    

10

$                   

2,090

$                 

104

$                    

2,194

$                 

Total Available Liquidity

Bank Facilities

Type

Size

Temporary Investments

Investments in Money Market Funds

Estimated Amortization for Pre-Tax Equity Earnings

Associated

with

the

Recovery

of

Certain

Qualified

Cost

and

Storm

Restoration

Costs

the pre-tax equity return recognized by

CenterPoint Energy, Inc. (CenterPoint Energy)

during each of the years 2005 through 2013

related to CenterPoint Energy Houston Electric,

LLC’s (CEHE) recovery of certain qualified costs

or storm restoration costs, as applicable,

pursuant to the past issuance of transition bonds

by CenterPoint Energy Transition Bond

Company II, LLC (Transition BondCo II) and

CenterPoint Energy Transition Bond Company

III, LLC (Transition BondCo III) or CenterPoint

Energy Transition Bond Company IV, LLC

(Transition BondCo IV) or system restoration

bonds by CenterPoint Energy Restoration Bond

Company, LLC (System Restoration BondCo),

as applicable and

the estimated pre-tax equity return currently

expected to be recognized in each of the years

2014 through 2024 related to CEHE’s recovery

of certain qualified costs or storm restoration

costs, as applicable, pursuant to the past

issuance of transition bonds by Transition

BondCo II, Transition BondCo III or Transition

BondCo IV or system restoration bonds by

System Restoration BondCo, as applicable.

The amounts reflected for 2014 through 2024 are based on CenterPoint Energy’s estimates as of December  31, 2013. However, the equity returns to be recognized in future periods with

respect to each series of transition or system restoration bonds, as applicable, will be periodically subject to adjustment based on tariff adjustments for any overcollections or

undercollections of transition charges or system restoration charges, as applicable. The equity return amounts reflected in the table are reported in the financial statements of CenterPoint

Energy and CenterPoint Energy Houston Electric as revenues from electric transmission and distribution utility.

The return associated with the equity earnings was

predetermined at the time of the recovery

authorization. Thus, it is not a measure of the

business’s operating performance.

As of December 31, 2013

February 26, 2014

14

Year End 2013 Supplemental Materials

TBC II

TBC III

TBC IV

SRBC

Total

2005

213,804

$       

-

$               

-

$                 

-

$               

213,804

$       

2006

6,644,004

-

-

-

6,644,004

2007

7,140,194

-

-

-

7,140,194

2008

6,673,765

4,743,048

-

-

11,416,813

2009

7,279,677

6,074,697

-

95,841

13,450,215

2010

9,071,326

5,745,580

-

2,657,384

17,474,290

2011

9,902,590

6,994,650

-

2,840,737

19,737,977

2012

9,717,059

6,837,290

27,873,514

2,473,992

46,901,855

2013

10,383,183

7,251,470

24,082,419

2,235,567

43,952,639

2014

10,181,329

8,086,631

29,318,866

2,651,149

50,237,975

2015

11,664,668

8,347,851

28,800,136

2,689,677

51,502,332

2016

12,552,207

8,915,234

29,613,821

2,823,299

53,904,562

2017

13,492,992

9,551,669

30,264,175

2,972,822

56,281,657

2018

14,500,296

10,257,427

31,182,774

3,143,769

59,084,265

2019

8,232,954

10,607,493

32,235,549

3,339,656

54,415,652

2020

-

922,924

33,302,867

3,534,938

37,760,730

2021

-

-

34,551,734

3,733,470

38,285,204

2022

-

-

35,917,932

2,262,251

38,180,183

2023

-

-

37,343,525

-

37,343,525

2024

-

-

30,297,799

-

30,297,799

137,650,048

$

94,335,964

$

404,785,110

$

37,454,553

$

674,225,675

$

The table provides 

1)

2)