CenterPoint Energy 2012 Annual Report Download - page 55

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33
In February 2012, we purchased $275 million aggregate principal amount of pollution control bonds issued on our behalf at
100% of their principal amount plus accrued interest pursuant to the mandatory tender provisions of the bonds. The purchased
pollution control bonds will remain outstanding and may be remarketed. Prior to the purchase, the pollution control bonds had
fixed interest rates ranging from 5.15% to 5.95%. Additionally, in March 2012, we redeemed $100 million aggregate principal
amount of pollution control bonds issued on our behalf at 100% of their principal amount plus accrued interest pursuant to the
optional redemption provisions of the bonds. The redeemed pollution control bonds had a fixed interest rate of 5.25%.
In August 2012, CenterPoint Houston issued $300 million of 2.25% general mortgage bonds due 2022 and $500 million of
3.55% general mortgage bonds due 2042. The net proceeds from the sale of the bonds were used to fund a portion of the redemption
of the general mortgage bonds discussed below.
In August 2012, CenterPoint Houston redeemed $300 million principal amount of its 5.75% general mortgage bonds due
2014 at a price of 107.332% of their principal amount and $500 million principal amount of its 7.00% general mortgage bonds
due 2014 at a price of 109.397% of their principal amount. Redemption premiums for the two series aggregated approximately
$69 million.
CERTAIN FACTORS AFFECTING FUTURE EARNINGS
Our past earnings and results of operations are not necessarily indicative of our future earnings and results of operations. The
magnitude of our future earnings and results of our operations will depend on or be affected by numerous factors including:
• state and federal legislative and regulatory actions or developments affecting various aspects of our businesses, including,
among others, energy deregulation or re-regulation, pipeline integrity and safety, health care reform, financial reform,
tax legislation and actions regarding the rates charged by our regulated businesses;
• state and federal legislative and regulatory actions or developments relating to the environment, including those related
to global climate change;
• timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment;
• the timing and outcome of any audits, disputes and other proceedings related to taxes;
• problems with construction, implementation of necessary technology or other issues with respect to major capital projects
that result in delays or in cost overruns that cannot be recouped in rates;
• industrial, commercial and residential growth in our service territory and changes in market demand, including the effects
of energy efficiency measures and demographic patterns;
• the timing and extent of changes in commodity prices, particularly natural gas and natural gas liquids, the competitive
effects of excess pipeline capacity in the regions we serve, and the effects of geographic and seasonal commodity price
differentials, including the effects of these circumstances on re-contracting available capacity on our interstate pipelines;
• the timing and extent of changes in the supply of natural gas, particularly supplies available for gathering by our field
services business and transporting by our interstate pipelines, including the impact of natural gas and natural gas liquids
prices on the level of drilling and production activities in the regions we serve;
• competition in our mid-continent region footprint for access to natural gas supplies and markets;
• weather variations and other natural phenomena, including the impact on operations and capital of severe weather events;
• any direct or indirect effects on our facilities, operations and financial condition resulting from terrorism, cyber-attacks,
data security breaches or other attempts to disrupt our businesses or the businesses of third parties, or other catastrophic
events;
• the impact of unplanned facility outages;
• timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future
hurricanes or natural disasters;