CenterPoint Energy 2009 Annual Report Download - page 73

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51
2008 Compared to 2007. Our Other Operations business segment’s operating income in 2008 compared to 2007
increased by $16 million primarily as a result of a decrease in franchise taxes ($7 million) and a decrease in benefits
accruals ($4 million).
LIQUIDITY AND CAPITAL RESOURCES
Historical Cash Flows
The net cash provided by (used in) operating, investing and financing activities for 2007, 2008 and 2009 is as
follows (in millions):
Year Ended December 31,
2007 2008 2009
Cash provided by (used in):
Operating activities ........................................................................................... $ 774 $ 851 $ 1,841
Investin
g
activities ............................................................................................. (1,300) (1,368) (896)
Financing activities ............................................................................................ 528 555 (372)
Cash Provided by Operating Activities
Net cash provided by operating activities in 2009 increased $990 million compared to 2008 primarily due to
decreased cash used in net regulatory assets and liabilities primarily related to Hurricane Ike restoration costs in
2008 ($366 million), decreased cash used in net margin deposits ($298 million), decreased cash used in gas storage
inventory ($246 million) and increased cash provided by net accounts receivable/payable ($41 million).
Net cash provided by operating activities in 2008 increased $77 million compared to 2007 primarily due to
decreased tax payments/increased tax refunds ($289 million), increased net accounts receivable/payable
($190 million), increased fuel cost recovery ($138 million) and increased pre-tax income ($131 million). These
increases were partially offset by increased net regulatory assets and liabilities ($447 million) and increased net
margin deposits ($247 million).
Cash Used in Investing Activities
Net cash used in investing activities decreased $472 million in 2009 compared to 2008 due to decreased notes
receivable from unconsolidated affiliates of $498 million, decreased investment in unconsolidated affiliates of
$91 million and decreased restricted cash of transition bond companies of $37 million, offset by increased capital
expenditures of $140 million primarily related to our Field Services business segment.
Net cash used in investing activities increased $68 million in 2008 compared to 2007 due to increased investment
in unconsolidated affiliates of $167 million, primarily related to the SESH pipeline project, which was partially
offset by decreased capital expenditures of $94 million.
Cash Provided by (Used in) Financing Activities
Net cash used in financing activities in 2009 increased $927 million compared to 2008 primarily due to decreased
borrowings under revolving credit facilities ($2.6 billion), and decreased short-term borrowings ($19 million), which
were partially offset by decreased repayments of long-term debt ($1.2 billion), increased proceeds from the issuance
of common stock ($424 million) and increased proceeds from the issuance of long-term debt ($77 million).
Net cash provided by financing activities in 2008 increased $27 million compared to 2007 primarily due to
increased borrowings under revolving credit facilities ($779 million) and increased proceeds from long-term debt
($188 million), which were partially offset by increased repayments of long-term debt ($825 million) and decreased
short-term borrowings ($124 million).