When CenterPoint Energy was created a little more than two years ago, we outlined our strategy of One Company, Get it Right and Grow. Our successes in 2004 include:

One Company

• We implemented a common computer network and work order processing system across our gas distribution businesses.
• We held employee conferences to improve communication between executives and front-line employees.
• We launched CNP University, providing employees access to career development resources and opportunities.
• We stopped using our heritage names, Arkla, Entex and Minnegasco.
• We launched our “On the Spot” ad campaign, leveraging safety, marketing and service messages to define CenterPoint Energy to customers.

Get It Right

• We completed a major restructuring program in our southern gas operations, estimated to save $10 million annually beginning in 2005.
• We initiated rate relief proceedings in several jurisdictions (see pages 10-11 for details).
• We implemented training and reporting tools to improve internal controls and support Sarbanes-Oxley Act compliance.
• We expanded our joint trenching program, resulting in additional cost reductions.
• We helped implement an automated move-in/move-out process for electric customers.
• We installed design software that provides savings in overhead and underground electric line construction.
• We cut in half the prep time for building new electric service to subdivisions.

Grow

• We added more than 91,000 new metered customers.
• We expanded wholesale gas capabilities in the Midwest.
• We began an open access program to move qualified commercial and industrial gas distribution customers from distribution rates to transportation rates.
• We increased CenterPoint Energy Gas Services retail sales and sales to electric and gas utilities.
• We expanded the Pipeline Group’s gas gathering system.
• We launched pipeline and gas storage expansions.