CenterPoint Energy 2010 Annual Report Download - page 71

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49
to higher transmission costs billed by transmission providers ($18 million), increased operating and maintenance
expenses that were postponed in 2008 as a result of Hurricane Ike restoration efforts ($10 million), higher pension
and other employee benefit costs ($10 million), expenses related to AMS ($14 million) and a gain on a land sale in
2008 ($9 million). Increased depreciation expense related to increased investment in AMS ($7 million) was offset by
other declines in depreciation and amortization, primarily due to asset retirements. Taxes other than income taxes
increased $7 million primarily as a result of a refund in 2008 of prior years’ state franchise taxes ($5 million).
Changes in pension expense over our 2007 base year amount were deferred and included in our 2010 rate filing
pursuant to Texas law.
Natural Gas Distribution
The following table provides summary data of our Natural Gas Distribution business segment for 2008, 2009 and
2010 (in millions, except throughput and customer data):
Year Ended December 31,
2008
2009
2010
Revenues ................................................................................................................................
$ 4,226
$ 3,384
$ 3,213
Expenses:
Natural gas ...........................................................................................................................
3,124
2,251
2,049
Operation and maintenance .................................................................................................
589
639
639
Depreciation and amortization.............................................................................................
157
161
166
Taxes other than income taxes.............................................................................................
141
129
128
Total expenses................................................................................................................
4,011
3,180
2,982
Operating Income ...................................................................................................................
$ 215
$ 204
$ 231
Throughput (in Bcf):
Residential ...........................................................................................................................
175
173
177
Commercial and industrial ..................................................................................................
236
233
249
Total Throughput ...........................................................................................................
411
406
426
Number of customers at end of period:
Residential .....................................................................................................................
2,987,222
3,002,114
3,016,333
Commercial and industrial .............................................................................................
248,476
244,101
246,891
Total ...............................................................................................................................
3,235,698
3,246,215
3,263,224
2010 Compared to 2009. Our Natural Gas Distribution business segment reported operating income of
$231 million for 2010 compared to $204 million for 2009. Operating income increased $27 million primarily as a
result of revenue from base rate increases and annual rate adjustments ($24 million), lower pension and other
benefits costs ($14 million), customer growth, higher throughput and increased other revenues ($8 million) and
lower bad debt expense ($5 million). These were partially offset by higher labor costs ($7 million), higher contracts
and services ($5 million) and other expenses ($7 million). Depreciation and amortization expense increased
$5 million primarily due to higher plant balances.
2009 Compared to 2008. Our Natural Gas Distribution business segment reported operating income of
$204 million for 2009 compared to $215 million for 2008. Operating income declined ($11 million) primarily as a
result of increased pension expense ($37 million) and higher labor and other benefit costs ($16 million), partially
offset by increased revenues from rate increases ($36 million) and lower bad debt expense ($15 million). Revenues
related to both energy-efficiency costs and gross receipts taxes are substantially offset by the related expenses.
Depreciation and amortization expense increased $4 million primarily due to higher plant balances. Taxes other
than income taxes, net of the decrease in gross receipts taxes ($16 million), increased $4 million also primarily due
to higher plant balances.