CenterPoint Energy 2013 Annual Report Download - page 26

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4
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 generally 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 centers, 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, 2013, CenterPoint Houston had approximately $1.9 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 in our consolidated financial statements because we are both the obligor on the bonds and the current owner
of the bonds, (b) approximately $118 million held in trust to secure pollution control bonds for which we are obligated and (c)
approximately $183 million held in trust to secure pollution control bonds for which CenterPoint Houston is obligated. Additionally,
as of December 31, 2013, CenterPoint Houston had approximately $102 million aggregate principal amount of first mortgage
bonds outstanding under the Mortgage. 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 $3.9 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, 2013. 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, 2013, CenterPoint Houston owned 28,113 pole miles of overhead distribution
lines and 3,703 circuit miles of overhead transmission lines, including 355 circuit miles operated at 69,000 volts, 2,132 circuit
miles operated at 138,000 volts and 1,216 circuit miles operated at 345,000 volts.
Electric Lines - Underground. As of December 31, 2013, CenterPoint Houston owned 21,763 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, 2013, CenterPoint Houston owned 234 major substation sites having a total installed rated
transformer capacity of 54,931 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 system and to use that system to conduct its
electric delivery business and for other purposes that the franchises permit. The terms of the franchises, with various expiration
dates, typically range from 20 to 40 years.