CenterPoint Energy 2009 Annual Report Download - page 9

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E L E C T R I C T R A N S M I S S I O N & D I S T R I B U T I O N
Our electric transmission and distribution
business had a good year, in spite
of a slower economy. is business
operates and maintains the wires, poles and electric
infrastructure serving more than 2 million customers
in the greater Houston area. We ensure the reliable
delivery of electricity to homes and businesses; we
neither own power plants nor sell electricity
to consumers.
We reported 2009 operating income of $545 million,
consisting of $414 million from the electric utility
and $131 million related to transition and system
restoration bonds. is compares to $407 million
from the electric utility, $133 million related
to transition bonds and $5 million from the
competition transition charge in 2008. e addition
of more than 29,000 new customers, an increase
in net transmission revenues in part due to a rate
increase, and income related to the investment
in the advanced metering system contributed
positively to earnings. is was offset by reduced
electric demand and increased operating expenses.
2008 included a gain from a land sale, lower
revenues related to Hurricane Ike and a refund
of prior years’ franchise taxes.
Last year, we invested $428 million in new
infrastructure to serve both new and existing
customers, and we expect to spend $557 million
in 2010. Going forward, we believe these new
capital investments, combined with a solid growth
territory and the expiration of a freeze in our
distribution rates, create the opportunity for
future earnings growth.
One of the most exciting developments of the
year was the decision by the U.S. Department of
Energy to award us a $200 million stimulus grant.
Last year, we installed 152,000 smart meters and
associated equipment and plan to use $150 million
of the grant to complete our 2+ million meter
rollout in 2012, two years ahead of schedule.
We will use the remaining $50 million to begin
building a self-healing, intelligent grid.
Smart meters and the intelligent grid will transform
the way electricity is bought, delivered and used.
ese advanced meters measure usage in 15-minute
intervals and utilize two-way communications
and software systems to serve consumers, retail
electric providers (companies that sell electricity,
or REPs) and CenterPoint Energy. is information
METER...
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