A major part of our plan when we formed CenterPoint Energy was to sell Texas Genco, our power generation subsidiary. Mission accomplished. We sold our 81 percent interest in Texas Genco for $2.9 billion. With proceeds from the sale, we began paying down debt.

Recovering the amounts due the company under the 1999 Texas Electric Restructuring Law was another important part of the original plan for CenterPoint Energy. However, the PUC granted our electric transmission and distribution subsidiary considerably less than we requested. We were disappointed in the PUC’s actions and filed an appeal with the Texas courts. In the meantime, we received approval of a financing order that would allow us to issue approximately $1.8 billion in transition bonds. Unfortunately, appeals by other parties will delay our issuance of the bonds. In addition, about $600 million will be recovered over time through a charge to retail electric providers.

Proceeds from the sale of Texas Genco and the amounts we receive under the Texas Electric Restructuring Law will allow us to significantly reduce our debt and save hundreds of millions of dollars in interest during 2006.