CenterPoint Energy        
POLE ATTACHMENT RATES - 2007   Computed on October 10, 2006    
Financial Data as of 12-31-05       
       
CABLE RATE -- 224(d)        
                   
Maximum Rate per Pole =   Space Occupied X Net Pole Investment x 0.85   X   Carrying Charge Rate         Total number poles (from CNP GIS) 842,424  
Usable Space Total Number of Poles             Space Occupied 1  
              Usable Space 13.5  
  =   1 X (Gross Pole Investment - Pole Depreciation - Deferred Pole Taxes) x .85   X   Carrying Charge Rate         Unusable space 24  
    13.5 Total Number of Poles             Avg. No. of attaching entities (from CNP GIS) 2.64  
              Rate of Return (from TxPUC) 8.65%  
  =   1 X 212,361,676 X 0.85   X   72.435%            
  13.5 842,424             FCA 101 - Total Electric Plant (P 200, L 13) ######## Total Plant includes CWIP & PHFU
          FCA 105 - Plant Held For Future Use (P 200, L 10) 9,304,814  
  =   0.07407407407 X 214.27 X 72.435%           FCA 107 - CWIP (P 200, L 11) ########  
          FCA 101-105-107 ######## Sum
  =   $11.50                   FCA 108 - Accumulated Plant Depreciation, p 219 ########  
                                               
       
TELECOMMUNICATION RATE -- 224(e)                                    
           
Maximum Rate per Pole = ( Space Occupied + 2 X   Unusable Space   ) X Net Pole Investment x 0.85 X Carrying Charge Rate     FCA 190 - Accum Deferred Income Taxes (P 234) ######## Asset (debit)
3   No. of attaching entities       FCA 281 - Accum Deferred Inc Taxes-Accel. Amort. (P 213) 0 Liability (credit)
Pole Height   Number of Poles     FCA 282 - Accum Deferred Inc Taxes-Other Property (P 213) ######## Liability (credit)
            FCA 283 - Accum Deferred Inc Taxes-Other (P 213) ######## Liability (credit)
  = ( 1 + 2 X   24   ) X $212,361,675.80 X 0.85 X 72.435%     FCA190+(FCA 281-283) ######## Sum
  3   2.64       FCA 364 - Gross Pole Investment (P207, L 64) ########  
  37.5   842,424     FCA 364 Depreciation Reserve (P 450.1, notes to P 219) ########  
              FCA 365 - OH conductors & devices (P 207, L 65) ########  
  =   0.188     X 214.271 X 72.435%     FCA 365 Depreciation Reserve (P 450.1, notes to P 219) ########  
        FCA 369 - Services (P 207, L 69) ########  
  =   $29.22       FCA 369 Depreciation Reserve (P 450.1, notes to P 219) ########  
          FCA 364+365+369 ######## Sum
                                            Depr FCA 364+365+369 ######## Sum
       
                                               
Net Pole Investment = Gross Pole Investment - Pole Depreciation - Defferred Pole Taxes            FCA 408.1 - Taxes (other than income); (P 114) ########  
          FCA 409.1 - Income Tax - Federal (P 114) 9,794,038  
    = FCA 364 -   FCA 364 Depreciation Reserve - Accumulated deferred Income Taxes   X   Gross Pole Investment         FCA 409.1 - Income Tax - Other (P 114) 0  
          Gross Plant Investment (Electric)         FCA 410.1 - Provision for deferred income taxes (P 114) ########  
          FCA 411.1 - Provision for deferred income taxes  ########  
      = 513,912,541 -   189,602,419 - [FCA 190 + (FCA 281 through 283)]   X   FCA 364         FCA 411.4 - Investment tax credit adj. (P 114) ########  
          FCA 101 - FCA 107 - FCA 105         FCA 408.1+409.1+410.1+411.4-411.1 ######## Sum
             
    = 513,912,541 -   189,602,419 - 1,399,005,826   X   513,912,541         FCA 593, Pole maintenance (P 593, L 1119) ########  
          6,422,667,972            
              FCA 920 through 931 & 935 - A&G expenses (P 323, L 168) ########  
      = 513,912,541 -   189,602,419 - 1,399,005,826   X   0.08002            
                 
    = 212,361,676                  
                                               
       
Carrying Charge            
           
Administrative Element = Total General and Administrative          
Gross Plant Investment (Electric) -   Accumulated Depreciation (Account 108 - Electric) - Accumulated Deferred Taxes (Electric Plant)            
               
  = FCA 920 through FCA 931, and FCA 935            
  (FCA 101 - FCA 107 - FCA 105) -    FCA 108   - [FCA 190 + (FCA 281 through 283)]          
               
  = 160,418,196          
  6,422,667,972 -   2,546,852,479 - 1,399,005,826            
                     
  = 160,418,196                  
  2,476,809,667                  
                     
  = 6.477%            
               
       
Maintenance Element = Account 593        
 Investment in Accounts 364, 365, & 369 -   Depreciation Related to Accounts 364, 365, & 369 -   Accumulated Deferred Income Taxes related to Accounts 364, 365, & 369        
               
  = 36,742,441        
  1,306,547,427 -   909,947,221 -   [FCA 190 + (FCA 281 through 283)] X FCA 364 + FCA 365 + FCA 369        
        FCA 101 - FCA 107 - FCA 105        
                       
  = 36,742,441        
  1,306,547,427 -   909,947,221 -   1,399,005,826 X 1,306,547,427        
        6,422,667,972        
                     
  = 36,742,441            
    1,306,547,427 -   909,947,221 -   284,596,288            
                       
  = 32.805%                    
   
Depreciation Element = Gross Pole Investment   X   Depreciation Rate for Gross Pole Investment                    
Net Pole Investment              
               
  = FCA 364 X   Depreciation Rate for Gross Pole Investment                    
  Net Pole Investment              
                   
  = 513,912,541 X   4.32%                
    212,361,676                
                 
  = 10.454%                
   
Taxes Element = Accounts 408.1 + 409.1 + 410.1 + 411.4 - 411.1            
Gross Plant Invest- ment (Total Plant) - Accumulated Depreciation (Account 108) - Accumulated Deffered Taxes (Plant)(Account 190, 281 - 283)          
               
                 
  = 347,971,004            
  6,422,667,972 - 2,546,852,479 - 1,399,005,826              
               
  = 347,971,004            
    2,476,809,667            
                 
  = 14.049%              
   
Return Element = 8.65%              
               
Carrying Charge = Administrative  +  Maintenance  +  Depreciation  +  Taxes  +  Rate of Return          
  = 72.435%