CenterPoint Energy 2008 Annual Report Download - page 53

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31
the generating business has been assumed by NRG Texas LP, but we have agreed to continue to defend such claims
to the extent they are covered by insurance maintained by us, subject to reimbursement of the costs of such defense
by NRG Texas LP.
The global financial crisis may have impacts on our business, liquidity and financial condition that we currently
cannot predict.
The continued credit crisis and related turmoil in the global financial system may have an impact on our business,
liquidity and our financial condition. Our ability to access the capital markets may be severely restricted at a time
when we would like, or need, to access those markets, which could have an impact on our liquidity and flexibility to
react to changing economic and business conditions. In addition, the cost of debt financing and the proceeds of
equity financing may be materially adversely impacted by these market conditions. With respect to our existing debt
arrangements, Lehman Brothers Bank, FSB, which had an approximately four percent participation in our credit
facility and each of the then-existing credit facilities of our subsidiaries, stopped funding its commitments following
the bankruptcy filing of its parent in September 2008 and was subsequently terminated as a lender in our facility and
the facility of CenterPoint Houston. Defaults of other lenders should they occur could adversely affect our liquidity.
Capital market turmoil was also reflected in significant reductions in equity market valuations in 2008, which
significantly reduced the value of assets of our pension plan. These reductions are expected to result in increased
non-cash pension expense in 2009, which will impact 2009 results of operations.
In addition to the credit and financial market issues, the national and local recessionary conditions may impact
our business in a variety of ways. These include, among other things, reduced customer usage, increased customer
default rates and wide swings in commodity prices.
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
Character of Ownership
We own or lease our principal properties in fee, including our corporate office space and various real property.
Most of our electric lines and gas mains are located, pursuant to easements and other rights, on public roads or on
land owned by others.
Electric Transmission & Distribution
For information regarding the properties of our Electric Transmission & Distribution business segment, please
read ―Business — Our Business — Electric Transmission & Distribution — Properties‖ in Item 1 of this report,
which information is incorporated herein by reference.
Natural Gas Distribution
For information regarding the properties of our Natural Gas Distribution business segment, please read
―Business — Our Business — Natural Gas Distribution — Assets‖ in Item 1 of this report, which information is
incorporated herein by reference.
Competitive Natural Gas Sales and Services
For information regarding the properties of our Competitive Natural Gas Sales and Services business segment,
please read ―Business — Our Business — Competitive Natural Gas Sales and Services — Assets‖ in Item 1 of this
report, which information is incorporated herein by reference.