CenterPoint Energy 2010 Annual Report Download - page 30

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Seasonality
A significant portion of CenterPoint Houston’s revenues is derived from rates that it collects from each REP
based on the amount of electricity it delivers on behalf of such REP. Thus, CenterPoint Houston’s revenues and
results of operations are subject to seasonality, weather conditions and other changes in electricity usage, with
revenues being higher during the warmer months.
Properties
All of CenterPoint Houston’s properties are located in Texas. Its properties consist primarily of high voltage
electric transmission lines and poles, distribution lines, substations, service wires and meters. Most of CenterPoint
Houston’s transmission and distribution lines have been constructed over lands of others pursuant to easements or
along public highways and streets as permitted by law.
All real and tangible properties of CenterPoint Houston, subject to certain exclusions, are currently subject to:
• the lien of a Mortgage and Deed of Trust (the Mortgage) dated November 1, 1944, as supplemented; and
• the lien of a General Mortgage (the General Mortgage) dated October 10, 2002, as supplemented, which is
junior to the lien of the Mortgage.
As of December 31, 2010, CenterPoint Houston had approximately $2.5 billion aggregate principal amount of
general mortgage bonds outstanding under the General Mortgage, including (a) $290 million held in trust to secure
pollution control bonds that are not reflected on our consolidated financial statements because we are both the
obligor on the bonds and the owner of the bonds, (b) an additional approximately $237 million held in trust to secure
pollution control bonds for which we are obligated and (c) approximately $229 million held in trust to secure
pollution control bonds for which CenterPoint Houston is obligated. Additionally, CenterPoint Houston had
approximately $253 million aggregate principal amount of first mortgage bonds outstanding under the Mortgage,
including approximately $151 million held in trust to secure certain pollution control bonds for which we are
obligated. CenterPoint Houston may issue additional general mortgage bonds on the basis of retired bonds, 70% of
property additions or cash deposited with the trustee. Approximately $2.3 billion of additional first mortgage bonds
and general mortgage bonds in the aggregate could be issued on the basis of retired bonds and 70% of property
additions as of December 31, 2010. However, CenterPoint Houston has contractually agreed that it will not issue
additional first mortgage bonds, subject to certain exceptions.
Electric Lines — Overhead. As of December 31, 2010, CenterPoint Houston owned 27,842 pole miles of
overhead distribution lines and 3,728 circuit miles of overhead transmission lines, including 422 circuit miles
operated at 69,000 volts, 2,090 circuit miles operated at 138,000 volts and 1,216 circuit miles operated at 345,000
volts.
Electric Lines — Underground. As of December 31, 2010, CenterPoint Houston owned 20,390 circuit miles of
underground distribution lines and 26 circuit miles of underground transmission lines, including 2 circuit miles
operated at 69,000 volts and 24 circuit miles operated at 138,000 volts.
Substations. As of December 31, 2010, CenterPoint Houston owned 233 major substation sites having a total
installed rated transformer capacity of 52,938 megavolt amperes.
Service Centers. CenterPoint Houston operates 14 regional service centers located on a total of 291 acres of land.
These service centers consist of office buildings, warehouses and repair facilities that are used in the business of
transmitting and distributing electricity.
Franchises
CenterPoint Houston holds non-exclusive franchises from the incorporated municipalities in its service territory.
In exchange for the payment of fees, these franchises give CenterPoint Houston the right to use the streets and
public rights-of way of these municipalities to construct, operate and maintain its transmission and distribution