48732--3/9/2007--CENTERPOINT_ENERGY_HOUSTON_ELECTRIC

related topics

{debt, indebtedness, cash}

{operation, natural, condition}

{condition, economic, financial}

{loss, insurance, financial}

{cost, regulation, environmental}

{cost, contract, operation}

Our receivables are concentrated in a small number of REPs, and any delay or default in payment could adversely affect our cash flows, financial condition and results of operations. Rate regulation of our business may delay or deny our ability to earn a reasonable return and fully recover our costs. Disruptions at power generation facilities owned by third parties could interrupt our sales of transmission and distribution services. Our revenues and results of operations are seasonal. Risk Factors Associated with Our Consolidated Financial Condition If we are unable to arrange future financings on acceptable terms, our ability to refinance existing indebtedness could be limited. The financial condition and liquidity of our parent company could affect our access to capital, our credit standing and our financial condition. We are an indirect wholly owned subsidiary of CenterPoint Energy. CenterPoint Energy can exercise substantial control over our dividend policy and business and operations and could do so in a manner that is adverse to our interests. Risks Common to Our Business and Other Risks We are subject to operational and financial risks and liabilities arising from environmental laws and regulations Our insurance coverage may not be sufficient. Insufficient insurance coverage and increased insurance costs could adversely impact our results of operations, financial condition and cash flows. We and CenterPoint Energy could incur liabilities associated with businesses and assets that we have transferred to others.

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48732--3/9/2007--CENTERPOINT_ENERGY_HOUSTON_ELECTRIC_LLC