CenterPoint Energy 2005 Annual Report Download - page 15

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COMPETITIVE NATURAL GAS SALES AND SERVICES
CENTERPOINT ENERGY SERVICES, OUR NON-RATE REGULATED NATURAL GAS MARKETING
AND SALES UNIT, CONTINUES TO GROW AT A RAPID PACE. We improved operating income
36 percent, or $16 million over 2004. We expect to build on this momentum by continuing to deliver
low-cost, reliable energy services and by increasing our market share in the eastern half of the United States.
CenterPoint Energy Services is complementary to our gas distribution business. It provides competitive
gas services for commercial, industrial and wholesale customers and is divided into three general
functions: Retail, Wholesale and Intrastate Pipeline. Wholesale and Intrastate Pipeline are headquartered
and managed in Houston, while Retail operates from seven regional offices in Minneapolis, Chicago,
Madison, Wis., Merrillville, Ind., St. Louis, Mo., Shreveport, La., and Houston.
Retail sells natural gas and related services at competitive prices primarily to commercial customers
who receive natural gas delivery from a local distribution company. Wholesale combines natural gas
supplies with market demands and manages pipeline capacity and other assets. It sells natural gas and
related services to industrial customers and utilities
that are served by other pipelines and resellers.
Intrastate Pipeline owns and manages physical
assets to deliver gas directly to industrial customers
and others under long-term agreements.
CenterPoint Energy Services is not without its challenges.
Steadily increasing demand continues to tighten natural
gas supplies and create more price volatility. To meet these
challenges, our strategy is to increase our storage and
transportation space, and add new capacity to bring gas
supplies to market.
Looking forward, this business has opportunities to expand
by increasing market share within the eastern half of the
United States and focusing on earning a greater share of
utility and power generation markets. We are well positioned,
given the current market dynamics, to continue to grow our
portfolio while minimizing risk.
[this page] Tessa Hickham, senior tax analyst, knows that momentum can take her a long way on the road to excellence.
GAINING MOMENTUM
WE EXTENDED OUR OPERATIONS IN THE EASTERN UNITED STATES,
INCREASED OUR CAPACITY AND STORAGE ASSETS, AND EXPANDED
OUR RETAIL AND WHOLESALE CUSTOMER BASE.
CENT ERPOINT E NERGY 2 0 05 AN N UA L R E PO R T [1 3 ]