CenterPoint Energy 2013 Annual Report Download - page 7

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Dear Shareholders,
It has been an honor and a privilege to serve as CenterPoint
Energys president and CEO the past  years. When I started at
Houston Lighting & Power Company in , I never expected to
spend my entire career with one company, nor did I dream that
Imight someday be CEO of a Fortune  company. It was my
good fortune that both of those possibilities became realities.
When I was named CenterPoint Energy’s first CEO in , the company faced some
stichallenges and an uncertain future. The electricity market in Texas had just been
completely restructured, and the rules were still being developed. The capital markets
were challenging and wary of all energy companies following the Enron debacle. At the
same time, we were highly leveraged and needed access to the capital markets to
refinance debt and finance necessary infrastructure investments. The company’s
futurewas less than clear.
However, we had a lot going for us. Our workforce was second to none. We had a plan
torecapitalize the company by selling our electric generating plants and, through the
regulatory process, recovering our capital investments that had been “stranded” by the
restructuring of the Texas electric market. Just as important, we had a vision to create
America’s leading energy delivery company based on a foundation of core values and
keystrategies. It was a vision that would keep us focused and striving for excellence.
Although deleveraging the company took longer than we expected, we ultimately
accomplished this goal, and the company is now in sound financial shape. Our senior
leadership team embraced the company’s vision and never wavered despite a number
ofsignificant challenges along the way. Our employees pulled together to get us through
theearly days, redesigned internal processes and systems to achieve top-tier operating
performance and led the industry in implementing new technology. We also invested in
new infrastructure to assure that energy was reliably and safely delivered to our customers.
The CenterPoint Energy of today was truly created through a great team eort. I could not
be more proud of this accomplishment.
As I begin my retirement there is not a better person to lead the company than Scott
Prochazka. I’veworked with Scott during my entire tenure as CEO. He knows and
understands the company’s businesses well. He is bright, articulate, passionate about
ourcompany, and hehas strong values and a great internal compass. I’m excited about
thefuture of CenterPoint Energy with Scott at the helm.
Let me close by first thanking you, our shareholders, for your support over the years. Most
of all, however, I would like to thank my fellow employees. Through their hard work and
commitment we have accomplished a lot. They are the reason I stayed with the company
for  years. Together we have created a very special company.
Our
O
O
O
O
I
NT
PROGRESS
of
DAVID M. McCLANAHAN
Former President & CEO