CenterPoint Energy 2009 Annual Report Download - page 34

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Assets
CEIP owns and operates approximately 230 miles of intrastate pipeline in Louisiana and Texas and holds storage
facilities of approximately 2.3 Bcf in Texas under long-term leases. In addition, CES leases transportation capacity
of approximately 0.8 Bcf per day on various interstate and intrastate pipelines and approximately 12.5 Bcf of storage
to service its customer base.
Competition
CES competes with regional and national wholesale and retail gas marketers including the marketing divisions of
natural gas producers and utilities. In addition, CES competes with intrastate pipelines for customers and services in
its market areas.
Interstate Pipelines
CERC’s pipelines business operates interstate natural gas pipelines with gas transmission lines primarily located
in Arkansas, Illinois, Louisiana, Missouri, Oklahoma and Texas. CERC’s interstate pipeline operations are primarily
conducted by two wholly owned subsidiaries that provide gas transportation and storage services primarily to
industrial customers and local distribution companies:
• CenterPoint Energy Gas Transmission Company (CEGT) is an interstate pipeline that provides natural gas
transportation, natural gas storage and pipeline services to customers principally in Arkansas, Louisiana,
Oklahoma and Texas; and
• CenterPoint Energy-Mississippi River Transmission Corporation (MRT) is an interstate pipeline that
provides natural gas transportation, natural gas storage and pipeline services to customers principally in
Arkansas and Missouri.
The rates charged by CEGT and MRT for interstate transportation and storage services are regulated by the
FERC. CERC's interstate pipelines business operations may be affected by changes in the demand for natural gas,
the available supply and relative price of natural gas in the Mid-continent and Gulf Coast natural gas supply regions
and general economic conditions.
In 2009, approximately 16% of CEGT and MRT’s total operating revenue was attributable to services provided to
Gas Operations, an affiliate, and approximately 7% was attributable to services provided to Laclede Gas Company
(Laclede), an unaffiliated distribution company, that provides natural gas utility service to the greater St. Louis
metropolitan area in Illinois and Missouri. Services to Gas Operations and Laclede are provided under several long-
term firm storage and transportation agreements. The primary term of MRT’s firm transportation and storage
contracts with Laclede will expire in 2013. The primary term of CEGT’s agreements for firm transportation, “no
notice” transportation service and storage services in certain of Gas Operations’ service areas (Arkansas, Louisiana,
Oklahoma and Texas) will expire in 2012.
Carthage to Perryville. In February 2010, CEGT completed the expansion of the capacity of its Carthage to
Perryville pipeline to approximately 1.9 Bcf per day. The expansion includes new compressor units at two of
CEGT’s existing stations.
Southeast Supply Header, LLC. CenterPoint Southeastern Pipelines Holding, LLC, a wholly-owned subsidiary of
CERC, owns a 50% interest in Southeast Supply Header, LLC (SESH). SESH owns a 1.0 Bcf per day, 274-mile
interstate pipeline that runs from the Perryville Hub in Louisiana to Coden, Alabama. The pipeline was placed into
service in September 2008. The rates charged by SESH for interstate transportation services are regulated by the
FERC. A wholly-owned, indirect subsidiary of Spectra Energy Corp. owns the remaining 50% interest in SESH.
Assets
CERC's interstate pipelines business currently owns and operates approximately 8,000 miles of natural gas
transmission lines primarily located in Arkansas, Illinois, Louisiana, Missouri, Oklahoma and Texas. CERC's