ex10-7.htm


    Exhibit
10.7

     

    
      
        	
                Semiannual
      Servicer’s Certificate

              
	
                CenterPoint
      Energy Transition Bond Company, LLC (formerly Reliant Energy Transition
      Bond Company LLC)

              
	
                $748,897,000
      Transition Bonds, Series 2001-1

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Pursuant
      to Section 6 of Annex 1 to the Transition Property Servicing Agreement
      (the "Agreement"), dated as of October 24, 2001,
between

              
	
                CenterPoint
      Energy Houston Electric, LLC (formerly Reliant Energy, Incorporated), as
      Servicer, and CenterPoint Energy Transition Bond Company,
    LLC

              
	
                (formerly
      Reliant Energy Transition Bond Company LLC), as Issuer, the Servicer does
      hereby certify as follows:

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Capitalized
      terms used in this Semiannual Servicer’s Certificate have their respective
      meanings as

              
	
                set
      forth in the Agreement.  References herein to certain sections
      and subsections are references

              
	
                to
      the respective sections and subsections of the
  Agreement.

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Collection
      Periods: September 14, 2009 through March 11, 2010

              
	
                Payment
      Date: March 15, 2010

              
	
                Today's
      Date: March 11, 2010

              


      

       

      
        
          	
                  1.
      Collections Allocable and Aggregate Amounts Available for Current Payment
      Date:

                	 
      	 
      	 
      	 
      
	 
      	
                  i.

                	
                  Remittances
      for the September 14 through 30, 2009 Collection Period

                	
                  5,969,963.50

                	 
      	 
      	 
      	 
      
	 
      	
                  ii.

                	
                  Remittances
      for the October 1 through 31, 2009 Collection Period

                	
                  9,683,051.75

                	 
      	 
      	 
      	 
      
	 
      	
                  iii.

                	
                  Remittances
      for the November 1 through 30, 2009 Collection Period

                	
                  7,765,444.79

                	 
      	 
      	 
      	 
      
	 
      	
                  iv.

                	
                  Remittances
      for the December 1 through 31, 2009 Collection Period

                	
                  8,834,051.93

                	 
      	 
      	 
      	 
      
	 
      	
                  v.

                	
                  Remittances
      for the January 1 through 31, 2010 Collection Period

                	
                  6,837,146.91

                	 
      	 
      	 
      	 
      
	 
      	
                  vi.

                	
                  Remittances
      for the February 1 through 28, 2010 Collection Period

                	
                  7,842,158.35

                	 
      	 
      	 
      	 
      
	 
      	
                  vii.

                	
                  Remittances
      for the March 1 through 11, 2010 Collection Period

                	
                  3,726,647.44

                	 
      	 
      	 
      	 
      
	 
      	
                  viii.

                	
                  Net
      Earnings on Collection Account

                	 
      	 
      	 
      	 
      	
                  [through
      2/28/10]

                
	 
      	 
      	
                     General
      Subaccount

                	 
      	 
      	
                  14,446.03

                	 
      	 
      	 
      	 
      
	 
      	 
      	
                     Overcollateralization
      Subaccount

                	 
      	 
      	
                  1,185.00

                	 
      	 
      	 
      	 
      
	 
      	 
      	
                     Capital
      Subaccount

                	 
      	 
      	
                  2,705.06

                	 
      	 
      	 
      	 
      
	 
      	 
      	
                     Reserve
      Subaccount

                	 
      	 
      	
                  754.81

                	 
      	 
      	 
      	 
      
	 
      	
                  ix.

                	
                  General
      Subaccount Balance (sum of i through viii above)

                	
                  50,677,555.57

                	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                  x.

                	
                  Reserve
      Subaccount Balance as of Prior Payment Date

                	 
      	
                  0.00

                	 
      	 
      	 
      	 
      
	 
      	
                  xi.

                	
                  Overcollateralization
      Subaccount Balance as of Prior Payment Date

                	
                  1,569,441.99

                	 
      	 
      	 
      	 
      
	 
      	
                  xii.

                	
                  Capital
      Subaccount Balance as of Prior Payment Date

                	 
      	
                  3,744,485.00

                	 
      	 
      	 
      	 
      
	 
      	
                  xiii.

                	
                  Collection
      Account Balance (sum of ix through xii above)

                	
                  55,991,482.56

                	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      


        

        
          
            	
                    2.
      Outstanding Amounts as of Prior Payment Date:

                  	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                    i.

                  	
                    Class
      A-1 Principal Balance

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	
                    ii.

                  	
                    Class
      A-2 Principal Balance

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	
                    iii.

                  	
                    Class
      A-3 Principal Balance

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	
                    iv.

                  	
                    Class
      A-4 Principal Balance

                  	 
      	 
      	
                    376,320,741.00

                  	 
      	 
      	 
      	 
      
	 
      	
                    v.

                  	
                    Aggregate
      Principal Balance of all Series 2001-1 Transition Bonds

                  	
                    376,320,741.00

                  	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      


          

          
            
              	
                      3.
      Required Funding/Payments as of Current Payment Date:

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	
                      Projected

                    	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	
                      Principal

                    	 
      	Semiannual	 	
                       

                    
	 
      	 
      	
                      Series 2001-1 Principal

                    	 
      	 
      	
                      Balance

                    	 
      	Principal Due	 	
                       

                    
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                      i.

                    	
                      Class
      A-1

                    	 
      	 
      	
                      0.00

                    	 
      	
                      0.00

                    	 
      	 
      
	 
      	
                      ii.

                    	
                      Class
      A-2

                    	 
      	 
      	
                      0.00

                    	 
      	
                      0.00

                    	 
      	 
      
	 
      	
                      iii.

                    	
                      Class
      A-3

                    	 
      	 
      	
                      0.00

                    	 
      	
                      0.00

                    	 
      	 
      
	 
      	
                      iv.

                    	
                      Class
      A-4

                    	 
      	 
      	
                      348,948,555.00

                    	 
      	
                      27,372,186.00

                    	 
      	 
      
	 
      	
                      v.

                    	
                      For
      all Series 2001-1 Transition Bonds

                    	 
      	 
      	
                      348,948,555.00

                    	 
      	
                      27,372,186.00

                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	Transition	
                       

                    	
                      Days
      in

                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	
                      Bond

                    	 
      	
                      Interest

                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	Interest Rate	
                       

                    	
                      Period (1)

                    	 
      	
                      Interest Due

                    
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                      vi.

                    	
                      Required
      Class A-1 Interest

                    	 
      	 
      	
                      3.840%

                    	 
      	
                      180

                    	 
      	
                      0.00

                    
	 
      	
                      vii.

                    	
                      Required
      Class A-2 Interest

                    	 
      	 
      	
                      4.760%

                    	 
      	
                      180

                    	 
      	
                      0.00

                    
	 
      	
                      viii.

                    	
                      Required
      Class A-3 Interest

                    	 
      	 
      	
                      5.160%

                    	 
      	
                      180

                    	 
      	
                      0.00

                    
	 
      	
                      ix.

                    	
                      Required
      Class A-4 Interest

                    	 
      	 
      	
                      5.630%

                    	 
      	
                      180

                    	 
      	
                      10,593,428.86

                    
	 
      	 
      	
                      (1)
      On 30/360 Day basis.

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      


            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                Funding

              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 Required Level	
                 

              	Required	
                 

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                x.

              	
                Overcollateralization
      Subaccount

              	 
      	 
      	
                2,652,343.54

              	 
      	
                1,082,901.55

              	 
      	 
      
	 
      	
                xi.

              	
                Capital
      Subaccount

              	 
      	 
      	
                3,744,485.00

              	 
      	
                0.00

              	 
      	 
      


      

       

      
        
          	
                  4.
      Allocation of Remittances as of Current Payment Date Pursuant to Section
      8.02(d) of Indenture:

                	 
      
	 
      	
                  i.

                	
                  Trustee
      Fees and Expenses

                	 
      	 
      	
                  2,530.00

                	 
      	 
      	 
      	 
      
	 
      	
                  ii.

                	
                  Servicing
      Fee

                	 
      	 
      	
                  187,224.25

                	
                  (1)

                	 
      	 
      
	 
      	
                  iii.

                	
                  Administration
      Fee and Independent Managers Fee

                	
                  53,500.00

                	
                  (2)

                	 
      	 
      
	 
      	
                  iv.

                	
                  Operating
      Expenses

                	 
      	 
      	
                  46,547.80

                	
                  (3)

                	 
      	 
      
	 
      	
                  v.

                	
                  Semiannual
      Interest (including any past-due Semiannual Interest for prior
      periods)

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                  Per
      1,000

                	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 of
      Original	
                   

                	 
      
	 
      	 
      	
                  Series 2001-1

                	 
      	 
      	Aggregate	
                   

                	 Principal Amount	 	
                   

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  1.
      Class A-1 Interest Payment

                	 
      	 
      	
                  0.00

                	 
      	
                  0.00

                	 
      	 
      
	 
      	 
      	
                  2.
      Class A-2 Interest Payment

                	 
      	 
      	
                  0.00

                	 
      	
                  0.00

                	 
      	 
      
	 
      	 
      	
                  3.
      Class A-3 Interest Payment

                	 
      	 
      	
                  0.00

                	 
      	
                  0.00

                	 
      	 
      
	 
      	 
      	
                  4.
      Class A-4 Interest Payment

                	 
      	 
      	
                  10,593,428.86

                	 
      	
                  27.45

                	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      


        

        
          
            	 
      	
                    vi.

                  	
                    Principal
      Due and Payable as a result of Event of Default or on Final Maturity
      Date

                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                    Per
      1,000

                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 of
      Original	
                     

                  	 
      
	 
      	 
      	
                    Series 2001-1

                  	 
      	 
      	 Aggregate	
                     

                  	 Principal Amount	 	
                     

                  
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                    1.
      Class A-1 Principal Payment

                  	 
      	 
      	
                    0.00

                  	 
      	
                    0.00

                  	 
      	 
      
	 
      	 
      	
                    2.
      Class A-2 Principal Payment

                  	 
      	 
      	
                    0.00

                  	 
      	
                    0.00

                  	 
      	 
      
	 
      	 
      	
                    3.
      Class A-3 Principal Payment

                  	 
      	 
      	
                    0.00

                  	 
      	
                    0.00

                  	 
      	 
      
	 
      	 
      	
                    4.
      Class A-4 Principal Payment

                  	 
      	 
      	
                    0.00

                  	 
      	
                    0.00

                  	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      


          

           

          
            
              	 
      	
                      vii.

                    	
                      Semiannual
      Principal

                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                      Per
      1,000

                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	of
      Original	
                       

                    	 
      
	 
      	 
      	
                      Series 2001-1

                    	 
      	 
      	Aggregate	
                       

                    	Principal Amount	 	
                       

                    
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                      1.
      Class A-1 Principal Payment

                    	 
      	 
      	
                      0.00

                    	 
      	
                      0.00

                    	 
      	 
      
	 
      	 
      	
                      2.
      Class A-2 Principal Payment

                    	 
      	 
      	
                      0.00

                    	 
      	
                      0.00

                    	 
      	 
      
	 
      	 
      	
                      3.
      Class A-3 Principal Payment

                    	 
      	 
      	
                      0.00

                    	 
      	
                      0.00

                    	 
      	 
      
	 
      	 
      	
                      4.
      Class A-4 Principal Payment

                    	 
      	 
      	
                      27,372,186.00

                    	 
      	
                      70.93

                    	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                      viii.

                    	
                      Amounts
      Payable to Credit Enhancement Providers (if applicable)

                    	
                      N/A

                    	 
      	 
      	 
      	 
      
	 
      	
                      ix.

                    	
                      Operating
      Expenses not Paid under Clause (iv) above

                    	
                      0.00

                    	 
      	 
      	 
      	 
      
	 
      	
                      x.

                    	
                      Funding
      of Capital Subaccount

                    	 
      	 
      	
                      5,969.01

                    	 
      	 
      	 
      	 
      
	 
      	
                      xi.

                    	
                      Funding
      of Overcollateralization Subaccount

                    	
                      1,082,901.55

                    	 
      	 
      	 
      	 
      
	 
      	
                      xii.

                    	
                      Net
      Earnings in Capital Subaccount Released to Issuer

                    	
                      2,705.06

                    	 
      	 
      	 
      	 
      
	 
      	
                      xiii.

                    	
                      Deposit
      to Reserve Subaccount

                    	 
      	 
      	
                      11,330,563.04

                    	 
      	 
      	 
      	 
      
	 
      	
                      xiv.

                    	
                      Released
      to Issuer upon Series Retirement: Collection Account

                    	
                      0.00

                    	 
      	 
      	 
      	 
      
	 
      	
                      xv.

                    	
                      Aggregate
      Remittances as of Current Payment Date

                    	
                      50,677,555.57

                    	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                      (1)
      Servicing fee: $748,897,000 x .05% x 180/360 = $187,224.25

                    	 
      	 
      	 
      
	 
      	 
      	
                      (2)
      Administration fee: $50,000 x 180/180 = $50,000.00; Independent Managers
      fee: $3,500.00

                    
	 
      	 
      	
                      (3)
      Reimbursement to Administrator for fees/expenses paid to outside legal
      counsel ($7,547.80),

                    
	 
      	 
      	
                            rating
      agencies ($15,000.00) and independent accountants
      ($24,000.00).

                    	 
      


            

          

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                5.
      Subaccount Withdrawals as of Current Payment Date

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                    (if
      applicable, pursuant to Section 8.02(d) of Indenture):

              	 
      	 
      	 
      	 
      	 
      
	 
      	
                i.

              	
                Reserve
      Subaccount (available for 4.i. through 4.xii.)

              	
                0.00

              	 
      	 
      	 
      	 
      
	 
      	
                ii.

              	
                Overcollateralization
      Subaccount (available for 4.i. through 4.ix.)

              	
                0.00

              	 
      	 
      	 
      	 
      
	 
      	
                iii.

              	
                Capital
      Subaccount (available for 4.i. through 4.ix.)

              	
                0.00

              	 
      	 
      	 
      	 
      
	 
      	
                iv.

              	
                Total
      Withdrawals

              	 
      	 
      	
                0.00

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      


      

      
        
          	
                  6.
      Outstanding Amounts and Collection Account Balance as of Current Payment
      Date

                	 
      	 
      	 
      
	
                  (after
      giving effect to payments to be made on such Payment
Date):

                	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  Series 2001-1

                	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                  i.

                	
                  Class
      A-1 Principal Balance

                	 
      	 
      	
                  0.00

                	 
      	 
      	 
      	 
      
	 
      	
                  ii.

                	
                  Class
      A-2 Principal Balance

                	 
      	 
      	
                  0.00

                	 
      	 
      	 
      	 
      
	 
      	
                  iii.

                	
                  Class
      A-3 Principal Balance

                	 
      	 
      	
                  0.00

                	 
      	 
      	 
      	 
      
	 
      	
                  iv.

                	
                  Class
      A-4 Principal Balance

                	 
      	 
      	
                  348,948,555.00

                	 
      	 
      	 
      	 
      
	 
      	
                  v.

                	
                  Aggregate
      Principal Balance for all Series 2001-1 Transition Bonds

                	
                  348,948,555.00

                	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                  vi.

                	
                  Reserve
      Subaccount Balance

                	 
      	 
      	
                  11,330,563.04

                	 
      	 
      	 
      	 
      
	 
      	
                  vii.

                	
                  Overcollateralization
      Subaccount Balance

                	 
      	
                  2,652,343.54

                	 
      	 
      	 
      	 
      
	 
      	
                  viii.

                	
                  Capital
      Subaccount Balance

                	 
      	 
      	
                  3,750,454.01

                	 
      	 
      	 
      	 
      
	 
      	
                  ix.

                	
                  Aggregate
      Collection Account Balance

                	 
      	 
      	
                  17,733,360.59

                	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      


        

        
          
            	
                    7.
      Shortfalls In Interest and Principal Payments as of Current Payment
      Date

                  	 
      	 
      	 
      	 
      
	
                    (after
      giving effect to payments to be made on such Payment
Date):

                  	 
      	 
      	 
      	 
      
	 
      	
                    i.

                  	
                    Semiannual
      Interest

                  	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                    Series 2001-1

                  	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                    1.
      Class A-1 Bond Interest Payment

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	 
      	
                    2.
      Class A-2 Bond Interest Payment

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	 
      	
                    3.
      Class A-3 Bond Interest Payment

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	 
      	
                    4.
      Class A-4 Bond Interest Payment

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                    ii.

                  	
                    Semiannual
      Principal

                  	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                    Series 2001-1

                  	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                    1.
      Class A-1 Principal Payment

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	 
      	
                    2.
      Class A-2 Principal Payment

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	 
      	
                    3.
      Class A-3 Principal Payment

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	 
      	
                    4.
      Class A-4 Principal Payment

                  	 
      	 
      	
                    0.00

                  	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      


          

          
            
              	
                      8.
      Shortfalls in Required Subaccount Levels as of Current Payment
      Date

                    	 
      	 
      	 
      	 
      	 
      
	
                      (after
      giving effect to payments to be made on such Payment
Date):

                    	 
      	 
      	 
      	 
      
	 
      	
                      i.

                    	
                      Overcollateralization
      Subaccount

                    	 
      	 
      	
                      0.00

                    	 
      	 
      	 
      	 
      
	 
      	
                      ii.

                    	
                      Capital
      Subaccount

                    	 
      	 
      	
                      0.00

                    	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      


            

            
              
                	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                        IN
      WITNESS HEREOF, the undersigned has duly executed and delivered
      this

                      	 
      
	 
      	
                        Semiannual
      Servicer's Certificate this 11th day of March, 2010.

                      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                        CENTERPOINT
      ENERGY HOUSTON ELECTRIC, LLC

                      	 
      	 
      	 
      	 
      	 
      
	 
      	
                        (formerly
      RELIANT ENERGY, INCORPORATED), as Servicer

                      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                        by:

                      	
                        /s/
      Linda Geiger

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        Linda
      Geiger

                      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        Assistant
      Treasurer