CenterPoint Energy 2014 Annual Report Download - page 53

As of December 31, 2014, CenterPoint Energy held an approximate 55.4% limited partner interest in Enable consisting of 94,126,366
common units and 139,704,916 subordinated units and a 0.1% interest in SESH. On December 31, 2014, Enable’
s common units closed at
$19.39 per unit on the New York Stock Exchange.
Debt Matters.
Approximately $44 million aggregate principal amount of pollution control bonds issued on behalf of CenterPoint Energy
Houston Electric, LLC (CenterPoint Houston) were redeemed on March 3, 2014 at 101% of their principal amount plus accrued interest. The
bonds had an interest rate of 4.25%, were scheduled to mature in 2017 and were collateralized by general mortgage bonds of CenterPoint
Houston.
Approximately $56 million aggregate principal amount of pollution control bonds issued on behalf of CenterPoint Houston were purchased by
CenterPoint Houston on March 3, 2014 at 101% of their principal amount plus accrued interest pursuant to the mandatory tender provisions of
the bonds. The bonds had an interest rate of 5.60% prior to CenterPoint Houston’
s purchase and have a variable rate thereafter. The bonds
mature in 2027 and are collateralized by general mortgage bonds of CenterPoint Houston. The purchased pollution control bonds may be
remarketed.
On March 17, 2014, CenterPoint Houston issued $600 million principal amount of 4.50% General Mortgage Bonds due 2044. The proceeds
from the sale of the bonds were used for general limited liability company purposes, including the repayment of short-
term notes payable to
affiliated companies.
Approximately $84 million aggregate principal amount of pollution control bonds issued on behalf of CenterPoint Energy Houston Electric,
LLC (CenterPoint Houston) were redeemed on June 2, 2014 at 100% of their principal amount plus accrued interest. The bonds had an interest
rate of 4.25%, were scheduled to mature in 2017 and were collateralized by general mortgage bonds of CenterPoint Houston.
On September 9, 2014, our revolving credit facility and the revolving credit facilities of CenterPoint Houston and CERC Corp. were amended
to, among other things, extend the maturity date of the commitments under the credit facilities from September 9, 2018 to September 9, 2019.
The amendments also reduced the swingline and letter of credit sub-
facilities under each credit facility, with total commitments under each credit
facility remaining unchanged.
CERTAIN FACTORS AFFECTING FUTURE EARNINGS
Our past earnings and results of operations are not necessarily indicative of our future earnings and results of operations. The magnitude of
our future earnings and results of our operations will depend on or be affected by numerous factors including:
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state and federal legislative and regulatory actions or developments affecting various aspects of our businesses (including the businesses
of Enable, including, among others, energy deregulation or re-
regulation, pipeline integrity and safety, health care reform, financial
reform, tax legislation and actions regarding the rates charged by our regulated businesses;
•
local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global
climate change;
•
timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment;
•
the timing and outcome of any audits, disputes and other proceedings related to taxes;
•
problems with regulatory approval, construction, implementation of necessary technology or other issues with respect to major capital
projects that result in delays or in cost overruns that cannot be recouped in rates;
•
industrial, commercial and residential growth in our service territories and changes in market demand, including the effects of energy
efficiency measures and demographic patterns;
•
changes in technology, particularly with respect to efficient battery storage or emergence or growth of new, developing or alternative
sources of generation;
•
the timing and extent of changes in commodity prices, particularly natural gas, and the effects of
geographic and seasonal commodity
price differentials;
•
weather variations and other natural phenomena, including the impact of severe weather events on operations and capital;
•
any direct or indirect effects on our facilities, operations and financial condition resulting from terrorism, cyber
-
attacks, data security
breaches or other attempts to disrupt our businesses or the businesses of third parties, or other catastrophic events;
•
the impact of unplanned facility outages;