Energy

CenterPoint Energy Subsidiary Closes on Low-Cost Transition Bonds

  2012 FEB 3 - (VerticalNews.com) -- CenterPoint Energy, Inc. (NYSE: CNP) announced that CenterPoint Energy Transition Bond Company IV, LLC has closed on the sale of $1.695 billion in transition bonds with an effective annual weighted average interest rate of approximately 2.45%.

  The issuance of the transition bonds was authorized by a financing order issued by the Public Utility Commission of Texas (PUC) in October 2011 following the PUC's approval of a final order in the CenterPoint Energy Houston Electric, LLC (CenterPoint Energy Houston Electric) true-up remand proceeding before the PUC. The proceeding related to CenterPoint Energy Houston Electric's recovery of stranded costs and other true-up balances associated with the transition to a competitive retail electric market in Texas.

  "We appreciate the leadership of the PUC for getting these bonds to market quickly to take advantage of the current favorable interest rate environment which will produce significant savings for Houston-area electric consumers," said Marc Kilbride, vice president and treasurer for CenterPoint Energy.

  As in the case of the three previous issuances of transition bonds by subsidiaries of CenterPoint Energy Houston Electric, the principal and interest on the bonds will be recovered through a transition charge added to the electric delivery rate paid by retail electric providers (REPs) to CenterPoint Energy Houston Electric for power delivered to Houston-area customers. The new monthly transition charge for a residential consumer using 1,000 Kwh will initially be $2.39, will be assessed to REPs for approximately 13 years beginning January 20 and will be subject to periodic adjustment under certain circumstances.

  This news release does not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

  Keywords: Industry, Utility Companies, CenterPoint Energy Inc..

  This article was prepared by VerticalNews Energy editors from staff and other reports. Copyright 2012, VerticalNews Energy via VerticalNews.com.