Fitch's primary credit concern for CNP is high consolidated balance sheet leverage. In addition, capital spending is expected to require external funding to supplement cash generation in 2008 as CEHE invests in the TX electric transmission system and CERC completes the Southeast Supply Header interstate pipeline expansion and invests in gas gathering and processing capacity to serve growing gas production.

Ratings of CEHE are supported by credit ratios consistent with a 'BBB' lower risk utility as a transmission and distribution utility that has no commodity price risk or provider of last resort obligations. Rating concerns include rising operating costs during a base rate freeze that extends to mid-2010 and regulatory and political risk.

While year to date only four small retail electric providers (REPs) have ceased operations as a result of price spikes in the energy balancing markets that made their power purchases unaffordable, the spikes increase risk that additional REPs will go out of business and lead to growing receivables for CEHE. The high power costs also raise the likelihood that Texas law or regulations may be changed to help consumers manage power bills. Fitch notes that CEHE's largest REP counter-parties, formed when vertically integrated utilities were separated in TX, have mostly hedged expected generation supply needs and are not significantly exposed to recent volatility in the Texas spot energy markets.

CERC's ratings are supported by contractual cash flows from interstate pipelines and improving cash flows from regulated gas local distribution utilities (LDCs). Fitch's rating concerns include the potential for cost over-runs of capital projects and/or disproportionate growth of CERC's higher risk non-regulated operations.

The Stable Rating Outlook assumes that the electric and gas utilities and the pipelines will perform well and that operating and maintenance costs will be effectively controlled during the base rate freeze. The Stable Outlook also assumes risk regulated operations will continue to contribute more than 80% of consolidated operating income. Fitch's Outlook incorporates the expectation that capital spending needs will reduce to a level that is funded with internal cash flow beyond 2008. Improvement in leverage and coverage ratios through cash flow growth or other means is the key to any improvement in CNP's current ratings or Outlook.

CNP, through its subsidiaries, operates as a public utility company. CEHE provides regulated electric transmission and distribution services to REPs, municipalities, electric cooperatives, and other distribution companies that provide service to approximately two million customers in and around Houston, Texas. CERC owns and operates LDCs that serve 3.2 million customers in six states, 8,200 miles of interstate natural gas pipelines, gas gathering lines, processing and storage facilities, and engages in gas marketing to commercial and industrial customers.

Fitch has affirmed the following ratings with a Stable Outlook:

CenterPoint Energy, Inc. (CNP)

--IDR 'BBB-';

--Senior unsecured 'BBB-';

--Trust preferred/Zens 'BB+';

--Short-term IDR 'F3';

--Commercial paper 'F3'.

CenterPoint Energy Resources Corp. (CERC)

--IDR 'BBB';

--Senior unsecured 'BBB';

--Convertible subordinated notes 'BBB-';

--Short-term IDR 'F2';

--Commercial paper 'F2'.

CenterPoint Energy Houston Electric LLC (CEHE)

--IDR 'BBB';

--First mortgage bonds 'A-';

--General mortgage bonds 'BBB+';

--Unsecured credit Facility 'BBB';

--Short-term IDR 'F2'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

SOURCE: Fitch Ratings

Fitch Ratings
Sharon Bonelli, +1-212-908-0581 (New York)
Justin Bowersock, CFA, +1-312-368-3151 (Chicago)
Media Relations
Brian Bertsch, +1-212-908-0549 (New York)

CenterPoint Energy, Inc., headquartered in Houston, Texas, is a domestic energy delivery company that includes electric transmission & distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services operations. The company serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas. Assets total over $17 billion. With about 8,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 130 years. For more information, visit the Web site at http://www.CenterPointEnergy.com.

SOURCE CenterPoint Energy, Inc.

http://www.CenterPointEnergy.com

Docket Numbers: RP96-200-192.

Applicants: CenterPoint Energy Gas Transmission Co.

Description: CenterPoint Energy Gas Transmission Co. submits two negotiated rate agreements with Connect Energy Services, LLC.

Filed Date: 06/13/2008.

Accession Number: 20080613-0074.

Comment Date: 5 p.m. Eastern Time on Wednesday, June 25, 2008.

Docket Numbers: RP08-358-001.

Applicants: CenterPoint Energy Gas Transmission Co.

Description: CenterPoint Energy Gas Transmission Co. submits Substitute Thirteenth Revised Sheet 32 et al. to FERC Gas Tariff, Sixth Revised Volume 1 to comply with the Commission's Letter Order issued on 5/29/08, effective 6/1/08.

Filed Date: 06/13/2008.

Accession Number: 20080616-0001.

Comment Date: 5 p.m. Eastern Time on Wednesday, June 25, 2008.

Docket Numbers: RP08-360-001.

Applicants: Northern Natural Gas Company.

Description: Northern Natural Gas Co. submits supportive information in compliance with FERC's 5/29/08 Order.

Filed Date: 06/11/2008.

Accession Number: 20080612-0201.

Comment Date: 5 p.m. Eastern Time on Monday, June 23, 2008.

Docket Numbers: RP08-340-001.

Applicants: Cheyenne Plains Gas Pipeline Company LLC.

Description: Cheyenne Plains Gas Pipeline Company, LLC's compliance filing of workpapers in support of the fuel gas and lost and unaccounted for gas reimbursement percentages.

Filed Date: 06/12/2008.

Accession Number: 20080613-0075.

Comment Date: 5 p.m. Eastern Time on Tuesday, June 24, 2008.

Docket Numbers: RP08-404-000.

Applicants: Williston Basin Interstate Pipeline Co.

Description: Williston Basin Interstate Pipeline Co. submits Fourteenth Revised Sheet 376 and 376A to FERC Gas Tariff, Second Revised Volume 1, to become effective 6/10/08.

Filed Date: 06/10/2008.

Accession Number: 20080611-0128.

Comment Date: 5 p.m. Eastern Time on Monday, June 23, 2008.

Docket Numbers: RP08-405-000.

Applicants: National Fuel Gas Supply Corporation.

Description: Petition of National Fuel Gas Supply Corp. for Waiver of Tariff Provisions.

Filed Date: 06/10/2008.

Accession Number: 20080611-0129.

Comment Date: 5 p.m. Eastern Time on Monday, June 23, 2008.

Docket Numbers: RP08-406-000.

Applicants: El Paso Natural Gas Company.

Description: El Paso Natural Gas Co submits a request for waiver of Section 5.1(a) of the General Terms and Conditions re FERC Gas Tariff, Second Revised Volume 1A.

Filed Date: 06/11/2008.

Accession Number: 20080612-0202.

Comment Date: 5 p.m. Eastern Time on Monday, June 23, 2008.

Docket Numbers: RP08-407-000.

Applicants: El Paso Natural Gas Company.

Description: El Paso Natural Gas Co submits Fifth Revised Sheet 226 to FERC Gas Tariff, Second Revised Volume 1A, to become effective on 7/14/08.

Filed Date: 06/11/2008.

Accession Number: 20080612-0203.

Comment Date: 5 p.m. Eastern Time on Monday, June 23, 2008.

Docket Numbers: RP08-408-000.

Applicants: Saltville Gas Storage Company L.L.C.

[Page Number 35131]

Description: Saltville Gas Storage Company, LLC submits First Revised Sheet 3 to FERC Gas Tariff, Original Volume 1, to become effective 7/12/08.

Filed Date: 06/12/2008.

Accession Number: 20080613-0007.

Comment Date: 5 p.m. Eastern Time on Tuesday, June 24, 2008.

Docket Numbers: RP08-358-001.

Applicants: CenterPoint Energy Gas Transmission Co.

Description: CenterPoint Energy Gas Transmission Co submits Substitute Thirteenth Revised Sheet 32 et al to FERC Gas Tariff, Sixth Revised Volume 1 to comply with the Commission's Letter Order issued on 5/29/08, effective 6/1/08.

Filed Date: 06/13/2008.

Accession Number: 20080616-0001.

Comment Date: 5 p.m. Eastern Time on Wednesday, June 25, 2008.

Any person desiring to intervene or to protest in any of the above proceedings must file in accordance with Rules 211 and 214 of the Commission's Rules of Practice and Procedure (18 CFR 385.211 and 385.214) on or before 5 p.m. Eastern time on the specified comment date. It is not necessary to separately intervene again in a subdocket related to a compliance filing if you have previously intervened in the same docket. Protests will be considered by the Commission in determining the appropriate action to be taken, but will not serve to make protestants parties to the proceeding. Anyone filing a motion to intervene or protest must serve a copy of that document on the Applicant. In reference to filings initiating a new proceeding, interventions or protests submitted on or before the comment deadline need not be served on persons other than the Applicant.

The Commission encourages electronic submission of protests and interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with Internet access who will eFile a document and/or be listed as a contact for an intervenor must create and validate an eRegistration account using the eRegistration link. Select the eFiling link to log on and submit the intervention or protests.

Persons unable to file electronically should submit an original and 14 copies of the intervention or protest to the Federal Energy Regulatory Commission, 888 First St. NE., Washington, DC 20426.

The filings in the above proceedings are accessible in the Commission's eLibrary system by clicking on the appropriate link in the above list. They are also available for review in the Commission's Public Reference Room in Washington, DC. There is an eSubscription link on the Web site that enables subscribers to receive e-mail notification when a document is added to a subscribed dockets(s). For assistance with any FERC Online service, please e- mail FERCOnlineSupport@ferc.gov. or call (866) 208-3676 (toll free). For TTY, call (202) 502-8659.

Nathaniel J. Davis, Sr.,

Deputy Secretary.

[FR Doc. E8-13904 Filed 6-19-08; 8:45 am]

BILLING CODE 6717-01-P

Vol. 73, No. 120

Notices

The salt dome storage development project, Perryville Gas Storage, is expected to consist of up to 22.5 billion cubic feet (Bcf) of high-deliverability working gas storage capacity with multiple interconnects, including CenterPoint Energy Gas Transmission's (CEGT) Perryville Hub header system near Delhi, Louisiana.

Cardinal expects commencement of operations in 2012 and has recently announced that a non-binding open season will begin on June 23, 2008.

The depleted reservoir storage development project, Cadeville Gas Storage, is expected to consist of up to 16.5Bcf of working gas capacity with three major interconnects and potential for up to four turn capability. Cardinal expects commencement of operations in 2011.

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