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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE TRANSITION PERIOD FROM TO .
 
 Commission file number 1-3187
 CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC
  Texas(State or other jurisdiction of incorporation or organization)
    
    22-3865106(I.R.S. Employer Identification No.)1111 Louisiana Houston, Texas 77002(Address and zip code of principal executive offices)
    
    (713) 207-1111(Registrants telephone number, including area code)
 
 CenterPoint Energy Houston Electric, LLC meets the conditions set forth in General Instruction
H(1)(a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure
format.
 þ o
  o o þ
 o þ




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##### 



CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2007
  
 TABLE OF CONTENTS
 PART I. FINANCIAL INFORMATIONItem 1. Financial Statements
    
    
    1Condensed Statements of Consolidated Income
Three Months and Six Months Ended June 30, 2006 and 2007 (unaudited)
    
    
    1Condensed Consolidated Balance Sheets
December 31, 2006 and June 30, 2007 (unaudited)
    
    
    2Condensed Statements of Consolidated Cash Flows
Six Months Ended June 30, 2006 and 2007 (unaudited)
    
    
    4Notes to Unaudited Condensed Consolidated Financial Statements
    
    
    5Item 2. Managements Narrative Analysis of the Results of Operations
    
    
    13Item 4. Controls and Procedures
    
    
    20PART II. OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    20Item 1A. Risk Factors
    
    
    20Item 5. Other Information
    
    
    21Item 6. Exhibits
    
    
    21Second Amended & Restated Credit AgreementComputation of Ratio of Earnings to Fixed ChargesCertification Pursuant to Rule 13a-14(a)Certification Pursuant to Rule 13a-14(a)Certification Pursuant to Section 1350Certification Pursuant to Section 1350Items Incorporated by Reference from Form 10-K
  i




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##### Table of Contents



CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
    
    
    the timing and amount of our recovery of the true-up components, including, in
particular, the results of appeals to the courts of determinations on rulings obtained to
date;
    
    state and federal legislative and regulatory actions or developments, including
deregulation, re-regulation, changes in or application of laws or regulations applicable to
the various aspects of our business;
    
    timely and appropriate rate actions and increases, allowing recovery of costs
and a reasonable return on investment;
    
    industrial, commercial and residential growth in our service territory and
changes in market demand and demographic patterns;
    
    changes in interest rates or rates of inflation;
    
    weather variations and other natural phenomena;
    
    commercial bank and financial market conditions, our access to capital, the
cost of such capital, and the results of our financing and refinancing efforts, including
availability of funds in the debt capital markets;
    
    actions by rating agencies;
    
    non-payment for our services due to financial distress of our customers,
including Reliant Energy, Inc. (RRI);
    
    the ability of RRI and its subsidiaries to satisfy their other obligations to
us, including indemnity obligations;
    
    the outcome of litigation brought by or against us;
    
    our ability to control costs;
    
    the investment performance of CenterPoint Energy, Inc.s employee benefit plans;
    
    our potential business strategies, including acquisitions or dispositions of
assets or businesses, which we cannot assure will be completed or will have the
anticipated benefits to us; and
    
    other factors we discuss in Risk Factors in Item 1A of Part I of our Annual
Report on Form 10-K for the year ended December 31, 2006, which is incorporated herein by
reference, and other reports we file from
time to time with the Securities and Exchange Commission.
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PART I. FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
 
 CONDENSED STATEMENTS OF CONSOLIDATED INCOME
(Millions of Dollars)
(Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2006
    
    
    2007
    
    
    2006
    
    
    2007Revenues
    
    $
    456
    
    
    $
    465
    
    
    $
    841
    
    
    $
    871Expenses:Operation and maintenance
    
    
    147
    
    
    
    150
    
    
    
    282
    
    
    
    305Depreciation and amortization
    
    
    99
    
    
    
    102
    
    
    
    183
    
    
    
    192Taxes other than income taxes
    
    
    59
    
    
    
    56
    
    
    
    115
    
    
    
    113Total
    
    
    305
    
    
    
    308
    
    
    
    580
    
    
    
    610Operating Income
    
    
    151
    
    
    
    157
    
    
    
    261
    
    
    
    261Other Income (Expense):Interest and other finance charges
    
    
    (28
    )
    
    
    (26
    )
    
    
    (56
    )
    
    
    (54
    )Interest on transition bonds
    
    
    (33
    )
    
    
    (32
    )
    
    
    (66
    )
    
    
    (63
    )Other, net
    
    
    17
    
    
    
    17
    
    
    
    32
    
    
    
    34Total
    
    
    (44
    )
    
    
    (41
    )
    
    
    (90
    )
    
    
    (83
    )Income Before Income Taxes
    
    
    107
    
    
    
    116
    
    
    
    171
    
    
    
    178Income tax expense
    
    
    (36
    )
    
    
    (39
    )
    
    
    (57
    )
    
    
    (60
    )Net Income
    
    $
    71
    
    
    $
    77
    
    
    $
    114
    
    
    $
    118
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CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions of Dollars)
(Unaudited)
 ASSETS
 December 31,
    
    
    June 30,2006
    
    
    2007Current Assets:Cash and cash equivalents
    
    $
    122
    
    
    $
    108Accounts and notes receivable, net
    
    
    165
    
    
    
    184Accounts and notes receivable  affiliated companies
    
    
    49
    
    
    
    54Accrued unbilled revenues
    
    
    95
    
    
    
    122Materials and supplies
    
    
    63
    
    
    
    59Taxes receivable
    
    
    34
    
    
    
    20Other
    
    
    69
    
    
    
    66Total current assets
    
    
    597
    
    
    
    613Property, Plant and Equipment:Property, plant and equipment
    
    
    6,823
    
    
    
    6,949Less accumulated depreciation and amortization
    
    
    (2,566
    )
    
    
    (2,605
    )Property, plant and equipment, net
    
    
    4,257
    
    
    
    4,344Other Assets:Regulatory assets
    
    
    2,820
    
    
    
    2,747Notes receivable  affiliated companies
    
    
    750
    
    
    
    750Other
    
    
    39
    
    
    
    47Total other assets
    
    
    3,609
    
    
    
    3,544Total Assets
    
    $
    8,463
    
    
    $
    8,501
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CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS  (Continued)
(Millions of Dollars)
(Unaudited)
 LIABILITIES AND MEMBERS EQUITY
 December 31,
    
    
    June 30,2006
    
    
    2007Current Liabilities:Current portion of transition bond long-term debt
    
    $
    147
    
    
    $
    152Accounts payable
    
    
    72
    
    
    
    44Accounts and notes payable  affiliated companies
    
    
    141
    
    
    
    189Taxes accrued
    
    
    105
    
    
    
    62Interest accrued
    
    
    85
    
    
    
    91Other
    
    
    67
    
    
    
    66Total current liabilities
    
    
    617
    
    
    
    604Other Liabilities:Accumulated deferred income taxes, net
    
    
    1,341
    
    
    
    1,269Unamortized investment tax credits
    
    
    35
    
    
    
    31Benefit obligations
    
    
    197
    
    
    
    195Regulatory liabilities
    
    
    336
    
    
    
    350Notes payable  affiliated companies
    
    
    151
    
    
    
    151Other
    
    
    53
    
    
    
    123Total other liabilities
    
    
    2,113
    
    
    
    2,119Long-term Debt:Transition bonds
    
    
    2,260
    
    
    
    2,183Other
    
    
    1,591
    
    
    
    1,592Total long-term debt
    
    
    3,851
    
    
    
    3,775Commitments and Contingencies (Note 7)Members Equity:Common stock
    
    
    
    
    
    
    Paid-in capital
    
    
    1,712
    
    
    
    1,712Retained earnings
    
    
    170
    
    
    
    291Total members equity
    
    
    1,882
    
    
    
    2,003Total Liabilities and Members Equity
    
    $
    8,463
    
    
    $
    8,501
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CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
 
 CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Millions of Dollars)
(Unaudited)
 Six Months Ended June 30,2006
    
    
    2007Cash Flows from Operating Activities:Net income
    
    $
    114
    
    
    $
    118Adjustments to reconcile income before extraordinary item to net
cash provided by operating activities:Depreciation and amortization
    
    
    183
    
    
    
    192Amortization of deferred financing costs
    
    
    6
    
    
    
    6Deferred income taxes
    
    
    (50
    )
    
    
    (4
    )Investment tax credits
    
    
    (4
    )
    
    
    (4
    )Changes in other assets and liabilities:Accounts and notes receivable, net
    
    
    (40
    )
    
    
    (46
    )Accounts receivable/payable, affiliates
    
    
    (40
    )
    
    
    (11
    )Inventory
    
    
    4
    
    
    
    4Accounts payable
    
    
    (6
    )
    
    
    (23
    )Taxes receivable
    
    
    
    
    
    
    14Interest and taxes accrued
    
    
    58
    
    
    
    (37
    )Net regulatory assets and liabilities
    
    
    41
    
    
    
    15Other current assets
    
    
    3
    
    
    
    2Other current liabilities
    
    
    4
    
    
    
    (1
    )Other assets
    
    
    7
    
    
    
    (1
    )Other liabilities
    
    
    4
    
    
    
    3Other, net
    
    
    
    
    
    
    1Net cash provided by operating activities
    
    
    284
    
    
    
    228Cash Flows from Investing Activities:Capital expenditures
    
    
    (198
    )
    
    
    (226
    )Decrease (increase) in restricted cash of transition bond companies
    
    
    (6
    )
    
    
    1Other, net
    
    
    (2
    )
    
    
    1Net cash used in investing activities
    
    
    (206
    )
    
    
    (224
    )Cash Flows from Financing Activities:Payments of long-term debt
    
    
    (19
    )
    
    
    (72
    )Increase in notes payable to affiliates
    
    
    64
    
    
    
    54Dividend to parent
    
    
    (61
    )
    
    
    Other, net
    
    
    1
    
    
    
    Net cash used in financing activities
    
    
    (15
    )
    
    
    (18
    )Net Increase (Decrease) in Cash and Cash Equivalents
    
    
    63
    
    
    
    (14
    )Cash and Cash Equivalents at Beginning of Period
    
    
    40
    
    
    
    122Cash and Cash Equivalents at End of Period
    
    $
    103
    
    
    $
    108Supplemental Disclosure of Cash Flow Information:Cash Payments:Interest, net of capitalized interest
    
    $
    70
    
    
    $
    117Income taxes
    
    
    129
    
    
    
    52
  4




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CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
 
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (1) Background and Basis of Presentation
 General.
 Background.
 Basis of Presentation.
  (2) New Accounting Pronouncements
    5




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(3) Employee Benefit Plans
  Three Months Ended June 30,
    
    
    Six Months Ended June 30,2006
    
    
    2007
    
    
    2006
    
    
    2007(in millions)Service cost
    
    $
    1
    
    
    $
    
    
    
    $
    1
    
    
    $
    Interest cost
    
    
    4
    
    
    
    4
    
    
    
    8
    
    
    
    8Expected return on plan assets
    
    
    (3
    )
    
    
    (3
    )
    
    
    (6
    )
    
    
    (6
    )Amortization of transition obligation
    
    
    1
    
    
    
    2
    
    
    
    3
    
    
    
    4Net periodic cost
    
    $
    3
    
    
    $
    3
    
    
    $
    6
    
    
    $
    6
  (4) Regulatory Matters
 (a) Recovery of True-Up Balance
   6




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(b) Final Fuel Reconciliation
  (c) Refund of Environmental Retrofit Costs
  8




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(5) Related Party Transactions and Major Customers
 Related Party Transactions.
    Major Customers.
 (6) Long-Term Debt
   9




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(7) Commitments and Contingencies
 Legal Matters
 RRI Indemnified Litigation
 Electricity and Gas Market
Manipulation Cases Other Class Action Lawsuits.
 Electricity and Gas Market Manipulation Cases.
    10




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Other Class Action Lawsuits.
 Environmental Matters
 Asbestos.
 Other Environmental.
 Other Proceedings
  11




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(8) Income Taxes
  January 1, 2007
    
    June 30, 2007Liability for uncertain tax positions
    
    $
    70
    
    
    $
    82Portion of liability for uncertain tax
positions that, if recognized, would
reduce the effective income tax rate
    
    
    14
    
    
    
    15Interest accrued on uncertain tax positions
    
    
    3
    
    
    
    5
 12




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ITEM 2. MANAGEMENTS NARRATIVE ANALYSIS OF THE RESULTS OF OPERATIONS
 The following narrative analysis should be read in combination with our Interim Condensed
Financial Statements contained in this Form 10-Q .
  Recent Events
 Refinancing Transaction
  13




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CONSOLIDATED RESULTS OF OPERATIONS
   Three Months Ended June 30,
    
    
    Six Months Ended June 30,2006
    
    
    2007
    
    
    2006
    
    
    2007(in millions, except customer data)Revenues:Electric transmission and distribution utility
    
    $
    386
    
    
    $
    395
    
    
    $
    717
    
    
    $
    742Transition bond companies
    
    
    70
    
    
    
    70
    
    
    
    124
    
    
    
    129Total revenues
    
    
    456
    
    
    
    465
    
    
    
    841
    
    
    
    871Expenses:Operation and maintenance, excluding
transition bond companies
    
    
    147
    
    
    
    150
    
    
    
    281
    
    
    
    304Depreciation and amortization, excluding
transition bond companies
    
    
    61
    
    
    
    61
    
    
    
    124
    
    
    
    124Taxes other than income taxes
    
    
    59
    
    
    
    56
    
    
    
    115
    
    
    
    113Transition bond companies
    
    
    38
    
    
    
    41
    
    
    
    60
    
    
    
    69Total expenses
    
    
    305
    
    
    
    308
    
    
    
    580
    
    
    
    610Operating income
    
    
    151
    
    
    
    157
    
    
    
    261
    
    
    
    261Interest and other finance charges
    
    
    (28
    )
    
    
    (26
    )
    
    
    (56
    )
    
    
    (54
    )Interest on transition bonds
    
    
    (33
    )
    
    
    (32
    )
    
    
    (66
    )
    
    
    (63
    )Other income, net
    
    
    17
    
    
    
    17
    
    
    
    32
    
    
    
    34Income before income taxes
    
    
    107
    
    
    
    116
    
    
    
    171
    
    
    
    178Income tax expense
    
    
    (36
    )
    
    
    (39
    )
    
    
    (57
    )
    
    
    (60
    )Net income
    
    $
    71
    
    
    $
    77
    
    
    $
    114
    
    
    $
    118Actual gigawatt-hours (GWh) delivered:Residential
    
    
    6,808
    
    
    
    6,021
    
    
    
    10,794
    
    
    
    10,679Total
    
    
    20,422
    
    
    
    19,175
    
    
    
    36,409
    
    
    
    35,835Average number of metered customers:Residential
    
    
    1,730,130
    
    
    
    1,767,749
    
    
    
    1,723,983
    
    
    
    1,760,006Total
    
    
    1,965,180
    
    
    
    2,006,840
    
    
    
    1,958,005
    
    
    
    1,998,291
 Three months ended June 30, 2007 compared to three months ended June 30, 2006
  14




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Six months ended June 30, 2007 compared to six months ended June 30, 2006
  CERTAIN FACTORS AFFECTING FUTURE EARNINGS
  LIQUIDITY AND CAPITAL RESOURCES
   Securitization Bonds.
 Off-Balance Sheet Arrangements.
 Credit Facility.
 15




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Temporary Investments.
 Money Pool.
 Long-term Debt.
 TransitionYear
    
    Third-Party
    
    
    Affiliate
    
    
    Sub-Total
    
    
    Bonds
    
    
    Total2007
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    75
    
    
    $
    752008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    159
    
    
    
    1592009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    175
    
    
    
    1752010
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    190
    
    
    
    1902011
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    207
    
    
    
    2072012
    
    
    46
    
    
    
    
    
    
    
    46
    
    
    
    227
    
    
    
    2732013
    
    
    450
    
    
    
    
    
    
    
    450
    
    
    
    245
    
    
    
    6952014
    
    
    300
    
    
    
    
    
    
    
    300
    
    
    
    147
    
    
    
    4472015
    
    
    
    
    
    
    151
    
    
    
    151
    
    
    
    158
    
    
    
    3092016
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    169
    
    
    
    1692017
    
    
    127
    
    
    
    
    
    
    
    127
    
    
    
    181
    
    
    
    3082018
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    194
    
    
    
    1942019
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    208
    
    
    
    2082021
    
    
    102
    
    
    
    
    
    
    
    102
    
    
    
    
    
    
    
    1022023
    
    
    200
    
    
    
    
    
    
    
    200
    
    
    
    
    
    
    
    2002027
    
    
    56
    
    
    
    
    
    
    
    56
    
    
    
    
    
    
    
    562033
    
    
    312
    
    
    
    
    
    
    
    312
    
    
    
    
    
    
    
    312Total
    
    $
    1,593
    
    
    $
    151
    
    
    $
    1,744
    
    
    $
    2,335
    
    
    $
    4,079
  Issued as
    
    
    Issued as CollateralIssued Directly
    
    
    Collateral for the
    
    
    for CenterPointto Third Parties
    
    
    Companys Debt
    
    
    Energys Debt
    
    
    TotalFirst Mortgage Bonds
    
    $
    102
    
    
    $
    
    
    
    $
    151
    
    
    $
    253General Mortgage Bonds
    
    
    1,262
    
    
    
    229
    
    
    
    527
    
    
    
    2,018Total
    
    $
    1,364
    
    
    $
    229
    
    
    $
    678
    
    
    $
    2,271
  16




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First
    
    
    GeneralYear
    
    Mortgage Bonds
    
    
    Mortgage Bonds
    
    
    Total2011
    
    $
    
    
    
    $
    19
    
    
    $
    192015
    
    
    151
    
    
    
    
    
    
    
    1512018
    
    
    
    
    
    
    50
    
    
    
    502019
    
    
    
    
    
    
    200
    
    
    
    2002020
    
    
    
    
    
    
    90
    
    
    
    902026
    
    
    
    
    
    
    100
    
    
    
    1002028
    
    
    
    
    
    
    68
    
    
    
    68Total
    
    $
    151
    
    
    $
    527
    
    
    $
    678
  Impact on Liquidity of a Downgrade in Credit Ratings.
 Moodys
    
    S&P
    
    FitchInstrument
    
    Rating
    
    Outlook(1)
    
    Rating
    
    Outlook(2)
    
    Rating
    
    Outlook(3)Senior Secured
Debt (First
Mortgage Bonds)
    
    Baa2
    
    Stable
    
    BBB
    
    Positive
    
    
    A-
    
    
    Stable
 
 (1)
    
    A stable outlook from Moodys indicates that Moodys does not expect to put the rating on
review for an upgrade or downgrade within 18 months from when the outlook was assigned or last
affirmed.(2)
    
    An S&P rating outlook assesses the potential direction of a long-term credit rating over the
intermediate to longer term.(3)
    
    A stable outlook from Fitch encompasses a one-to-two year horizon as to the likely ratings
direction.  17




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Cross Defaults.
 Other Factors that Could Affect Cash Requirements.
 
    
    increases in interest expense in connection with debt refinancings and
borrowings under our credit facility;
    
    various regulatory actions;
    
    the ability of RRI and its subsidiaries to satisfy their obligations as our
principal customers and in respect of RRIs indemnity obligations to us;
    
    the outcome of litigation brought by and against us;
    
    contributions to benefit plans;
    
    restoration costs and revenue losses resulting from natural disasters such as hurricanes; and
    
    various other risks identified in Risk Factors in Item 1A of Part I of the
CenterPoint Houston Form 10-K.
 Certain Contractual Limits on Our Ability to Issue Securities and Borrow Money.
 Relationship with CenterPoint Energy.
 CRITICAL ACCOUNTING POLICIES
  18




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##### Table of Contents



Accounting for Rate Regulation
  Impairment of Long-Lived Assets and Intangibles
   Asset Retirement Obligations
   
    
    Inflation adjustment  The estimated cash flows are adjusted for inflation
estimates for labor, equipment, materials, and other disposal costs;
 19




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##### Table of Contents




    
    Discount rate  The estimated cash flows include contingency factors that were
used as a proxy for the market risk premium; and
    
    Third-party markup adjustments  Internal labor costs included in the cash flow
calculation were adjusted for costs that a third party would incur in performing the tasks
necessary to retire the asset.
  Unbilled Energy Revenues
  NEW ACCOUNTING PRONOUNCEMENTS
  
 Item 4. CONTROLS AND PROCEDURES
   
 PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
  20




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##### Table of Contents



Item 5. Other Information
  
 Item 6. Exhibits
   Report or Registration
    
    SEC File orExhibit Number
    
    Description
    
    Statement
    
    Registration Number
    
    Exhibit References3.1
    
    Articles of
Organization of
CenterPoint Energy
Houston Electric
    
    CenterPoint Houstons
Form 8-K dated August
31, 2002 filed with
the SEC on September
3, 2002
    
    1-3187
    
    
    3
    (b)3.2
    
    Limited Liability
Company Regulations
of CenterPoint
Energy Houston
Electric
    
    CenterPoint Houstons
Form 8-K dated August
31, 2002 filed with
the SEC on September
3, 2002
    
    1-3187
    
    
    3
    (c)+4.1
    
    $300,000,000 Second
Amended and
Restated Credit
Agreement dated as
of June 29, 2007,
among CenterPoint
Houston, as
Borrower, and the
banks named therein+12
    
    Computation of
Ratios of Earnings
to Fixed Charges+31.1
    
    Rule
13a-14(a)/15d-14(a)
Certification of
David M. McClanahan+31.2
    
    Rule
13a-14(a)/15d-14(a)
Certification of
Gary L. Whitlock+32.1
    
    Section 1350
Certification of
David M. McClanahan+32.2
    
    Section 1350
Certification of
Gary L. Whitlock+99.1
    
    Items incorporated
by reference from
the CenterPoint
Houston Form 10-K.
Item 1A Risk
Factors.
 21




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##### Table of Contents



SIGNATURES
  CENTERPOINT ENERGY HOUSTON ELECTRIC, LLCBy:
    /s/ James S. BrianJames S. BrianSenior Vice President and Chief Accounting Officer  22




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##### Table of Contents



Exhibit Index
  Report or Registration
    
    SEC File orExhibit Number
    
    Description
    
    Statement
    
    Registration Number
    
    Exhibit References3.1
    
    Articles of
Organization of
CenterPoint Energy
Houston Electric
    
    CenterPoint Houstons
Form 8-K dated August
31, 2002 filed with
the SEC on September
3, 2002
    
    1-3187
    
    
    3
    (b)3.2
    
    Limited Liability
Company Regulations
of CenterPoint
Energy Houston
Electric
    
    CenterPoint Houstons
Form 8-K dated August
31, 2002 filed with
the SEC on September
3, 2002
    
    1-3187
    
    
    3
    (c)+4.1
    
    $300,000,000 Second
Amended and
Restated Credit
Agreement dated as
of June 29, 2007,
among CenterPoint
Houston, as
Borrower, and the
banks named therein+12
    
    Computation of
Ratios of Earnings
to Fixed Charges+31.1
    
    Rule
13a-14(a)/15d-14(a)
Certification of
David M. McClanahan+31.2
    
    Rule
13a-14(a)/15d-14(a)
Certification of
Gary L. Whitlock+32.1
    
    Section 1350
Certification of
David M. McClanahan+32.2
    
    Section 1350
Certification of
Gary L. Whitlock+99.1
    
    Items incorporated
by reference from
the CenterPoint
Houston Form 10-K.
Item 1A Risk
Factors.