SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------
FORM 11-K
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Fiscal Year Ended December 31, 2003
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _______________ to _________________
COMMISSION FILE NUMBER 1-3187
A. Full title of the plan and address of the plan, if different from that of the
issuer named below:
CENTERPOINT ENERGY, INC. SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
CENTERPOINT ENERGY, INC.
1111 LOUISIANA STREET
HOUSTON, TEXAS 77002
TABLE OF CONTENTS
Report of Independent Registered Public Accounting Firm Page 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits, December 31, 2003
and 2002 Page 2
Statement of Changes in Net Assets Available for Plan Benefits for the
Year Ended December 31, 2003 Page 3
Notes to Financial Statements Page 4
Supplemental Schedules:
Schedule H, line 4i-Schedule of Assets (Held at End of Year),
December 31, 2003 Page 12
Schedule H, line 4j-Schedule of Reportable Transactions for the Year
Ended December 31, 2003 Page 13
The following schedules required by the Department of Labor's regulations are
omitted due to the absence of conditions under which they are required:
Schedule of Nonexempt Transactions
Schedule of Loans or Fixed Income Obligations in Default or Classified as
Uncollectible
Schedule of Leases in Default or Classified as Uncollectible
Schedule of Assets Acquired and Disposed of Within the Plan Year
Pursuant to Item 4 of Form 11-K, the financial statements and schedules referred
to above have been prepared in accordance with regulations of the Employee
Retirement Income Security Act of 1974.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
CenterPoint Energy, Inc. Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the CenterPoint Energy, Inc. Savings Plan (the Plan) as of December
31, 2003 and 2002 and the related statement of changes in net assets available
for plan benefits for the year ended December 31, 2003. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for plan benefits of the Plan as of December
31, 2003 and 2002, and the changes in net assets available for plan benefits for
the year ended December 31, 2003 in conformity with accounting principles
generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules,
listed in the Table of Contents, are presented for the purpose of additional
analysis and are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules are the responsibility of the
Plan's management. The supplemental schedules have been subjected to the
auditing procedures applied in our audit of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
DELOITTE & TOUCHE LLP
Houston, Texas
June 25, 2004
1
CENTERPOINT ENERGY, INC. SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31,
---------------------------------
2003 2002
-------------- --------------
ASSETS
Investments $1,141,446,153 $ 870,558,504
Participant loans 40,956,007 42,834,395
Receivables:
Dividends and interest 458,001 565,842
Pending investment transactions -- 1,738,480
Employer contributions 9,660,718 101,936
Participant contributions 1,173,093 938,283
-------------- --------------
Total receivables 11,291,812 3,344,541
-------------- --------------
Total Assets 1,193,693,972 916,737,440
-------------- --------------
LIABILITIES
Interest on ESOP loans from
Company 12,975 196,047
ESOP loans from Company 1,344,704 60,953,717
Other 812,812 164,762
-------------- --------------
Total Liabilities 2,170,491 61,314,526
-------------- --------------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS $1,191,523,481 $ 855,422,914
============== ==============
See Notes to Plan's Financial Statements.
2
CENTERPOINT ENERGY, INC. SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2003
INVESTMENT GAIN:
Dividends $ 23,436,292
Interest 6,691,174
Net appreciation of investments 258,215,548
---------------
Total investment gain 288,343,014
---------------
CONTRIBUTIONS:
Participant contributions 46,305,895
Employer contributions 71,323,161
---------------
Total contributions 117,629,056
---------------
Administrative expenses (1,359,833)
Benefit payments (67,021,050)
Interest on ESOP loans from Company (1,490,620)
---------------
CHANGE IN NET ASSETS AVAILABLE FOR PLAN BENEFITS 336,100,567
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
BEGINNING OF PERIOD 855,422,914
---------------
END OF PERIOD $ 1,191,523,481
===============
See Notes to Plan's Financial Statements.
3
CENTERPOINT ENERGY, INC. SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. BACKGROUND
CenterPoint Energy, Inc. (CenterPoint Energy or the Company) is a public
utility holding company, created on August 31, 2002 as part of a corporate
restructuring of Reliant Energy, Incorporated (Reliant Energy) that
implemented certain requirements of the Texas electric restructuring law.
In December 2000, Reliant Energy transferred a significant portion of its
unregulated businesses to Reliant Resources, Inc. (Reliant Resources),
which, at the time, was a wholly owned subsidiary of Reliant Energy.
On September 30, 2002, following Reliant Resources' initial public
offering of approximately 20% of its common stock in May 2001, CenterPoint
Energy distributed of all of the shares of Reliant Resources common stock
owned by CenterPoint Energy to its common shareholders on a pro rata basis
(the Reliant Resources Distribution). As a result of the above
transactions, CenterPoint Energy is the successor as plan sponsor to the
Reliant Energy, Incorporated Savings Plan and has subsequently changed the
plan's name to the CenterPoint Energy, Inc. Savings Plan (the Plan).
CenterPoint Energy also has an approximately 81% ownership interest in
Texas Genco Holdings, Inc. (Texas Genco). The Company distributed
approximately 19% interest in Texas Genco to existing CenterPoint Energy
shareholders on January 6, 2003.
2. ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of
America.
Investment Valuation and Income Recognition
The Plan recognizes net appreciation or depreciation in the fair value of
its investments. Investments are reflected at fair value in the financial
statements except for stable value investments that are reflected at book
value (see Note 5). The fair value for securities are based on quoted
market prices in an active market. Fair value for mutual and institutional
funds are determined using net asset value of the each fund as of the
financial statement dates. Security transactions are recorded as of the
trade date. Interest income is recorded on the accrual basis. Dividends
are recorded on the ex-dividend date. Participant loans are valued at
cost, which approximates fair value.
Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
Plan management to make estimates and assumptions that affect the reported
amounts of net assets available for Plan benefits and the changes therein
as well as certain disclosures. Actual results could differ from those
estimates.
4
Risks and Uncertainties
The Plan provides for investments in Company common stock, various mutual
funds and other investments. Investments, in general, are exposed to
various risks, such as interest rate, credit and overall market volatility
risk. Due to the level of risk associated with certain investments, it is
reasonably possible that changes in the values of investments will occur
in the near term and that such changes could materially affect the amounts
reported in the statements of net assets available for plan benefits and
Participant account balances. Rates of return will vary, and returns will
depend on the market value of the Plan's investments.
3. SUMMARY OF THE PLAN
Description of the Plan
The following description of the Plan provides only general information.
Participants should refer to the Plan document for a more complete
description of the Plan's provisions. In the case of any discrepancy
between this summary and the Plan document, the Plan's provisions will
control.
General
The Plan is a defined contribution plan covering all employees of the
Company and those subsidiaries and affiliates of the Company that have
adopted the Plan except (a) building trades workers under a construction
industry collective bargaining agreement, (b) leased employees, (c)
independent contractors or (d) non-resident aliens who receive no U.S.
sourced income. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
Contributions
Active Participants may contribute up to 16% of eligible compensation, as
defined in the Plan. Active Participants age 50 or over may contribute an
additional pre-tax contribution up to a total amount of $2,000 for 2003.
Participants may also contribute amounts representing rollover eligible
distributions from other defined benefit or defined contribution plans,
403(b) annuity plans, 457 governmental plans or conduit Individual
Retirement Accounts that have been holding a distribution from a qualified
plan. Participants direct their contributions into the various investment
options offered by the Plan.
In general, the employer matching contribution is 75% on the first 6% of
eligible compensation that the Participant contributes into the Plan.
Additional discretionary matching contributions may be made of up to 50%
on the first 6% of eligible compensation that the Participant contributes
to the Plan. Substantially all employer matching contributions are
initially made in the employer stock ownership component of the Plan
(ESOP) and are fully vested at all times.
Participants may elect to invest all or a portion of their contributions
to the Plan in Company common stock fund. In addition, Participants may
elect to have dividends paid on their investment in Company common stock
either reinvested in the Company stock fund or paid to them in cash, and
they can transfer all or part of their investment in Company common stock
fund to the other investment options offered by the Plan with the
exception of the Reliant Resources and Texas Genco common stock fund.
During March 2004, discretionary contributions of $15 million were made to
Participant accounts for plan year 2003. Discretionary contributions of $9
million satisfied in cash are accrued as a contribution receivable.
However, discretionary contributions of $6 million satisfied through the
ESOP are accrued in the financial statements for the year ended December
31, 2003 but are treated as a reclassification between the Unallocated and
Allocated ESOP (as defined below).
Contributions are subject to certain limitations.
5
Investment Options
The Plan offered the following investment funds (Funds):
- Company Common Stock Fund
- Large Company Growth Fund
- Large Company Value Fund
- International Equity Fund
- Balanced Fund
- Fixed Income Fund
- Stable Value Fund
- S&P 500 Index Fund
- Mid-Sized and Small Company Fund
- Reliant Resources Common Stock Fund (see Note 1)
- Texas Genco Common Stock Fund (see Note 1)
Upon enrollment in the Plan, Participants may direct contributions (as
permitted), in 1% increments, in any of the investment options, except for
the Reliant Resources and Texas Genco Common Stock Funds which are closed
to new contributions. Participants should refer to the Plan prospectus for
a detailed description of each investment fund.
Employee Stock Ownership Plan
The Plan includes an ESOP, which contains Company stock, a portion of
which is encumbered by a loan. The ESOP is the primary funding mechanism
for the employer contributions to the Plan. In connection with the ESOP,
the Company was a party to an ESOP Trust Agreement between the Company and
State Street Bank (Prior ESOP Trustee). The Prior ESOP Trustee purchased
shares of the Company's common stock in open market transactions with
funds provided by loans (Loans) from the Company. The Prior ESOP Trustee
completed the purchases of shares of the Company's common stock in
December 1991 after purchasing 18,762,184 shares at a cost of $350
million. At December 31, 2003 and 2002, the total balance of the Loans was
$1 million and $61 million, respectively. The Loans bear interest at a
fixed rate of 9.783% and must be repaid in full by January 2, 2011.
Accrued interest on the Loans was less than $200,000 at December 31, 2003
and 2002. At December 31, 2003 and 2002, the fair value of the ESOP Loans
including accrued interest was $1 million and $44 million, respectively.
Fair value is estimated based on the present value of required principal
and interest payments revalued at current interest rates using the formula
specified in the Loans agreement to establish the fixed rate. For the
purposes of estimating the ESOP Loans fair value, the principal and
interest payments are reflected during 2011 in accordance with the ESOP
Loans repayment schedule.
The Company makes periodic cash contributions (ESOP Contributions) to the
portion of the ESOP trust that has not been allocated to Participants
(Unallocated ESOP). The ESOP Contributions and the dividend income from
the Unallocated ESOP may be used to pay principal and interest on the
Loans. Principal and interest on the Loans may also be paid from dividend
income on the portion of the ESOP trust that has been allocated to
Participants (Allocated ESOP) and is subject to dividend reinvestment.
As debt service payments on the Loans are made, the Company releases
shares of common stock from the pledge securing the Loans and such shares
are available for allocation to Participants' accounts in satisfaction of
employer contributions and dividend income attributable to shares in the
Allocated ESOP. Unallocated ESOP stock serves as collateral for the Loans.
All released shares must be allocated to Participants' accounts by
year-end. No allocated shares serve as collateral for the Loans.
In addition to the ESOP Contributions, the Company may elect to make
employer contributions to the Allocated ESOP in the form of cash, which
may be used to purchase shares of the Company's common stock in the open
market. Dividend income received on shares of the Allocated ESOP purchased
in the open market are not available for debt service payments.
In March 2004, the Plan repaid all outstanding principal and interest
related to the ESOP Loans and allocated the remaining Unallocated ESOP
shares to Participant accounts. As a result, future employer contributions
will be made in the form of cash, which will be initially invested in the
employer stock ownership component of the Plan (ESOP).
6
Participant Accounts
Individual accounts are maintained for each Participant. Each
Participant's account is credited with the Participant's contributions and
with allocations of the Company contributions and Plan earnings. Each
Participant's account is also charged with an allocation of administrative
expenses. Allocations are based on Participant account balances. A
Participant is entitled to their vested account balance.
Vesting and Forfeitures
Effective May 6, 2002, Participants become vested immediately in all
contributions plus actual earnings thereon. As a result, forfeited
nonvested accounts no longer exist. During 2003, approximately $2 million
of forfeited nonvested accounts (i.e., forfeited prior to May 6, 2002)
were used to reduce employer contributions.
Participant Loans
A Participant may borrow against their vested account balances. The
maximum amount that a Participant may borrow is the lesser of (a) $50,000,
reduced by the excess, if any, of the highest outstanding balance of loans
to the Participant from all plans maintained by the Company or an
affiliated entity during the one-year period ending on the day before the
date on which such loan is made over the outstanding balance of loans from
the Plan on the date on which such loan is made or (b) 50% of the value of
the Participant's vested account balance under the Plan.
The loans are to be secured by the pledge of a portion of the
Participant's right, title and value of the Participant's vested account
balance under the Plan as determined immediately after the loans are made.
Loans may be repaid over a period of up to five years and are subject to a
$25 origination fee. The minimum loan amount is $500. Interest rates are
fixed at the prime rate listed in The Wall Street Journal for the first of
each month in which the loan is requested plus one percent. Loan
transactions are treated as a transfer to (from) the investment fund from
(to) the Participant loans fund.
Payment of Benefits
Upon termination, a Participant whose account exceeds $5,000 may elect
upon written request at any time to receive distribution of their Plan
account in a single lump sum payment or fixed monthly, quarterly,
semi-annually or annual installments over a period of 10 years or less.
The Participant may have the above selected distribution option paid in
the form of cash, Company, Reliant Resources or Texas Genco common stock
or a combination of both.
Generally, to the extent a Participant has not requested a distribution by
the time he reaches age 70-1/2, required minimum distributions will be
made consistent with the terms and conditions of the Plan and the
requirements of the Internal Revenue Code of 1986, as amended (Code).
Immediate lump sum distributions are made for accounts which do not exceed
$5,000.
A Participant who is under age 59-1/2 may make a withdrawal from amounts
attributable to their after-tax contributions and, if applicable, their
rollover contributions in the Plan and associated earnings. A Participant
who is under age 59-1/2 and has less than five years of service who
withdraws matched after-tax contributions will be suspended from Plan
participation for six months.
A Participant who is age 59-1/2 or older may make unlimited withdrawals
from their pre-tax contributions, after-tax contributions, vested portion
of prior Plan accounts, rollover account and the associated earnings.
7
Administration
The assets of the Plan are held in trust by The Northern Trust Company
(Trustee). ADP Retirement Services is the recordkeeper for the Plan. The
Benefits Committee of CenterPoint Energy, Inc. (Committee), appointed by
the Board of Directors of the Company, is the plan administrator. The
Committee retains an independent investment consultant to provide
investment advice with respect to the Funds. The fees charged by the
Trustee and the investment consultant are paid by the Trustee out of the
Funds.
Termination of the Plan
Although it has not expressed any intent to do so, the Company may
terminate the Plan at any time subject to the provisions of ERISA and must
give written notice to the Trustee.
4. INVESTMENTS
The following presents investments that represent 5 percent or more of the
Plan's net assets available for plan benefits.
DECEMBER 31,
---------------------------
2003 2002
------------ ------------
Company common stock, 34,749,760 and 32,099,870 shares,
respectively (see Note 1) $336,725,174 $272,848,895
Reliant Resources common stock, 15,277,399 and 18,379,761 shares
(see Note 1) 112,441,657 58,815,235
Barclays Global Investors Equity Index Fund, 5,212,017 and
4,771,807 shares, respectively 80,056,574 56,975,372
PIMCO Total Return Fund, 8,556,526 and 8,940,412 shares,
respectively 91,640,394 95,394,193
Northern Trust Collective Short-term Investment Fund, 8,960,608 and
122,256,087 shares, respectively 8,960,608 122,256,087
During 2003, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year) appreciated
in value as follows:
Mutual and institutional funds $ 97,637,812
Company common stock (see Note 8) 58,465,758
Texas Genco common stock (see Note 8) 33,026,567
Reliant Resources common stock 69,085,411
------------
$258,215,548
============
As detailed above, the Plan has significant holdings of Company, Texas
Genco and Reliant Resources common stock. As a result, the values of the
Plan's investments are materially impacted by the price of these
securities.
8
5. STABLE VALUE FUND
Effective February 28, 2003, the money market fund was replaced by a new
Stable Value Fund and thus the underlying investments were changed to
include synthetic guaranteed investment contracts as well as short and
intermediate-term fixed income investments. The contract value and fair
value of the fund were $106,640,276 and $106,339,287, respectively as of
December 31, 2003. Total interest income of the Stable Value Fund totaled
$3,799,126 for the year ended December 31, 2003.
The crediting interest rates ranged from 3.5% to 4.3% for the year ended
December 31, 2003. The fund's blended rate of return was 3.1% in 2003.
The crediting rates for synthetic contracts are reset quarterly and are
based on the market value of the underlying portfolio of assets backing
these contracts. Inputs used to determine the crediting rate include each
contract's portfolio value, current yield to maturity, duration, and
market value relative to the synthetic contract's book value.
6. NONPARTICIPANT-DIRECTED INVESTMENTS
Information about the net assets available for plan benefits relating to
nonparticipant-directed investments are as follows:
DECEMBER 31, 2003 DECEMBER 31, 2002
------------------------------------------- -------------------------------------------
ALLOCATED UNALLOCATED ALLOCATED UNALLOCATED
ESOP ESOP OTHER ESOP ESOP OTHER
ASSETS
Cash $ -- $ 6,555 $ 37,520 $ -- $ -- $ --
Company common stock 126,714,197 8,832,890 -- 74,245,885 41,782,405 --
Short-term investment
funds in common or
collective trusts 3,313,133 25,052 130,222 1,809,896 -- 54,275
Receivables:
Dividends and interest 2,604 4 451 2,571 253 5,125
Employer contributions
in cash 9,660,718 -- -- 101,936 -- --
Employer contributions
in ESOP stock 6,241,513 (6,241,513) -- 15,688,071 (15,688,071) --
------------- ----------- ------------ ------------ ------------ ---------
Total receivables 15,904,835 (6,241,509) 451 15,792,578 (15,687,818) 5,125
------------- ----------- ------------ ------------ ------------ ---------
Total Assets 145,932,165 2,622,988 168,193 91,848,359 26,094,587 59,400
------------- ----------- ------------ ------------ ------------ ---------
LIABILITIES
Interest on ESOP loans
from Company -- 12,975 -- -- 196,047 --
ESOP loans from Company -- 1,344,704 -- -- 60,953,717 --
Other 6,202 -- -- 5,503 -- --
------------- ----------- ------------ ------------ ------------ ---------
Total Liabilities 6,202 1,357,679 -- 5,503 61,149,764 --
------------- ----------- ------------ ------------ ------------ ---------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 145,925,963 $ 1,265,309 $ 168,193 $ 91,842,856 $(35,055,177) $ 59,400
============= =========== ============ ============ ============ =========
9
Information about the changes in net assets available for plan benefits
relating to nonparticipant-directed investments for the year ended
December 31, 2003 are as follows:
UNALLOCATED
ALLOCATED ESOP ESOP OTHER
INVESTMENT GAIN (LOSS):
Dividends $ 4,700,463 $ 859,502 $ 37,550
Interest 29,648 841 5,550
Net appreciation (depreciation)
of investments 23,778,035 3,272,577 (107,587)
------------- ------------- -------------
Total investment gain (loss) 28,508,146 4,132,920 (64,487)
------------- ------------- -------------
CONTRIBUTIONS:
Participant contributions -- -- 453,180
Employer contributions 12,305,550 60,453,689 --
Allocation of ESOP stock 26,469,039 (26,469,039) --
------------- ------------- -------------
Total contributions 38,774,589 33,984,650 453,180
------------- ------------- -------------
Administrative expenses (699) (198,908) (1,140,759)
Benefit payments (3,937,857) -- (343,268)
Interest on ESOP loans from
Company -- (1,490,620) --
Fund transfers (9,261,072) (107,556) 1,204,127
------------- ------------- -------------
CHANGE IN NET ASSETS AVAILABLE
FOR PLAN BENEFITS 54,083,107 36,320,486 108,793
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
BEGINNING OF PERIOD 91,842,856 (35,055,177) 59,400
------------- ------------- -------------
END OF PERIOD $ 145,925,963 $ 1,265,309 $ 168,193
============= ============= =============
The following presents nonparticipant-directed investments that represent
5 percent or more of the Plan's net assets available for plan benefits.
DECEMBER 31,
--------------------------------
2003 2002
------------- -------------
Company common stock, 13,988,348 and 13,650,387 shares,
respectively $ 135,547,087 $ 116,028,290
7. TAX STATUS
The Internal Revenue Service (IRS) has determined and informed the Company
by letter dated April 2, 2001 that the Plan, as amended and restated
effective April 1, 1999 and as thereafter amended, was qualified and the
trust fund established is tax-exempt under the appropriate sections of the
Code. Although the Plan has been amended since receiving the determination
letter, the plan administrator and the plan sponsor's counsel believe that
the Plan is designed and is currently operated in compliance with the
applicable requirements of the Code.
10
8. RELATED PARTY TRANSACTIONS
During 2003, the Plan purchased and sold shares of the Company's common
stock and units of short-term investment funds managed by the Trustee as
temporary investments (party-in-interest transactions) as shown below:
2003
-------------
Purchases Company common stock $ 68,744,864
Texas Genco common stock 1,282,586
Northern Trust collective short-term
investment fund 341,473,477
Sales Company common stock $ 45,612,236
Texas Genco common stock 15,109,982
Northern Trust collective short-term
investment fund 454,768,938
11
CENTERPOINT ENERGY, INC. SAVINGS PLAN
SCHEDULE H, LINE 4i
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
DECEMBER 31, 2003
(a) (b) IDENTITY OF ISSUE, BORROWER, (c) DESCRIPTION OF INVESTMENT INCLUDING (d) COST (e) CURRENT
LESSOR MATURITY DATE, RATE OF INTEREST, VALUE
OR SIMILAR PARTY COLLATERAL, PAR
OR MATURITY VALUE
Cash $ 1,044,075 $ 1,044,075
Barclays Global Investors Barclays Global Investors Equity Index
Fund 82,954,680 80,056,574
Barclays Global Investors Barclays Global Investors Russell 1000
Growth Index Fund 28,583,155 31,398,092
Barclays Global Investors Barclays Global Investors Russell 1000
Value Index Fund 22,817,916 27,190,049
Barclays Global Investors Barclays Global Investors Russell 2000
Index Fund 12,342,958 13,786,310
Capital Guardian Capital Guardian International (Non-U.S.)
Equity Fund 28,454,915 31,269,904
Capital Guardian Capital Guardian U.S. Small Capitalization
Fund 14,304,166 14,704,372
* CenterPoint Energy, Inc. CenterPoint Energy, Inc. Common Stock 439,136,576 336,725,174
ICAP ICAP Mutual Fund Equity Portfolio 34,449,616 36,897,838
Janus Janus Fund 72,791,370 44,198,107
Jennison Jennison Institutional Growth Equity Fund 84,954,742 55,019,770
Lazard Lazard International Equity Portfolio 15,525,247 13,400,563
Loomis Sayles Loomis Sayles Fixed Income Fund 41,302,769 47,708,985
* Northern Trust Northern Trust Collective Short-term
Investment Fund 8,960,608 8,960,608
PIMCO PIMCO Total Return Fund 91,076,211 91,640,394
Reliant Resources, Inc Reliant Resources, Inc. Common Stock 47,227,168 112,441,657
SEI SEI Stable Asset Fund 36,590,688 36,590,688
Selected American Shares Fund Selected American Shares Fund 52,895,513 48,708,261
State Street Synthetic GIC, Interest Rate 3.31% 34,419,325 34,419,325
Transamerica Synthetic GIC, Interest Rate 3.30% 34,421,122 34,421,122
* Texas Genco Holdings, Inc. Texas Genco Holdings, Inc. Common Stock 17,902,041 34,144,370
Turner Turner Mid-Cap Growth Fund 6,968,934 6,719,915
-------------- --------------
Total Plan Investments $1,209,123,795 $1,141,446,153
============== ==============
* Various Participants Participant Loans, Interest Rate 4.00%-
8.75% $ 40,956,007 $ 40,956,007
============== ==============
* Party in interest
12
CENTERPOINT ENERGY, INC. SAVINGS PLAN
SCHEDULE H, LINE 4j
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(a) IDENTITY (b) DESCRIPTION OF ASSET (c) (d) SELLING (e) LEASE (f) (g) COST OF (h) CURRENT (i) NET
OF (INCLUDE INTEREST PURCHASE PRICE RENTAL EXPENSE ASSET VALUE OF GAIN OR
PARTY INVOLVED RATE AND MATURITY IN CASE OF PRICE INCURRED ASSET ON (LOSS)
A LOAN) WITH TRANSACTION
TRANSACTION DATE
SINGLE TRANSACTIONS
SEI SEI Stable Asset Fund $ 57,000,000 $ -- $-- $-- $ 57,000,000 $ 57,000,000 $ --
Northern Trust Northern Trust Collective
Short-term Investment Fund * -- 114,141,285 -- -- 114,141,285 114,141,285 --
SERIES OF TRANSACTIONS
Barclays Global Barclays Global Investors
Investors Equity Index Fund 27,001,853 -- -- -- 27,001,853 27,001,853 --
Barclays Global Barclays Global Investors
Investors Equity Index Fund -- 20,400,784 -- -- 23,243,344 20,400,784 (2,842,560)
CenterPoint CenterPoint Energy, Inc.
Energy, Inc. Common Stock * 68,744,864 -- -- -- 68,744,864 68,744,864 --
CenterPoint CenterPoint Energy, Inc.
Energy, Inc. Common Stock * -- 45,612,236 -- -- 68,745,763 45,612,236 (23,133,527)
PIMCO PIMCO Total Return Fund 48,539,563 -- -- -- 48,539,563 48,539,563 --
PIMCO PIMCO Total Return Fund -- 52,935,993 -- -- 52,144,167 52,935,993 791,826
SEI SEI Stable Asset Fund 78,440,688 -- -- -- 78,440,688 78,440,688 --
SEI SEI Stable Asset Fund -- 41,850,000 -- -- 41,850,000 41,850,000 --
* Party in interest
13
SIGNATURE
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the Plan) have duly caused this
annual report to be signed on its behalf by the undersigned thereunto duly
authorized.
CENTERPOINT ENERGY, INC. SAVINGS PLAN
By /S/ STEPHEN C. SCHAEFFER
------------------------
(Stephen C. Schaeffer, Chairman of the Benefits
Committee of CenterPoint Energy, Inc., Plan
Administrator)
June 28, 2004
14
Exhibit Index
23.1 Consent of Deloitte & Touche LLP