Texas Genco Reports Improved First Quarter 2004 Results

Texas Genco Reports Improved First Quarter 2004 Results 


HOUSTON, April 22  /PRNewswire-FirstCall/ -- Texas Genco Holdings, Inc. , an 81
percent-owned subsidiary of CenterPoint Energy, Inc. , today reported net
income of $61 million, or $0.76 per share, for the first quarter of 2004
compared to a loss of $11 million, or $0.14 per share, for the same period of
2003 before the effect of an accounting change in that period.  Net income for
the first quarter of 2003 was $88 million, or $1.10 per share, including a
non-cash gain of $99 million ($1.24 per share) from the adoption of Statement
of Financial Accounting Standards No. 143, "Accounting for Asset Retirement
Obligations".

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"Our first quarter earnings were significantly better than the first quarter of
last year," said David Tees, president and chief executive officer of Texas
Genco.  "We continue to benefit from higher wholesale electricity prices which
are driven by high natural gas prices.  In addition, our solid fuel baseload
generating units operated well, which when combined with the higher electricity
prices, produced a significant improvement in our financial performance for the
quarter."

Texas Genco reported increased revenues compared to the same period of 2003,
continuing to benefit from increased prices for baseload products. Operation
and maintenance expenses for the first quarter of 2004 were lower than the
prior year.  The first quarter of 2004 had lower expenses associated with
planned and unplanned outages compared to the same quarter of 2003.

2004 OUTLOOK

The company reiterated its full year 2004 earnings estimate of $3.35 - $3.75
per share.  This estimate reflects over $1 billion of capacity revenues under
contract for 2004, including approximately 94 percent of its available baseload
capacity.  Earnings for 2004 will be highly dependent on the operating
performance of the company's baseload generating units.

WEBCAST OF EARNINGS CONFERENCE CALL

The management of Texas Genco will host an earnings conference call on
Thursday, April 22, 2004, at 9 a.m. Central time.  Interested parties may
listen to a live, audio broadcast of the conference call at
http://www.txgenco.com/investor.html .  A replay can be accessed approximately
two hours after the completion of the call, and will be archived on the Web
site for at least one year.

Texas Genco Holdings, Inc., based in Houston, Texas, is one of the largest
wholesale electric power generating companies in the United States with over
14,000 megawatts of generation capacity, of which nearly 3,000 megawatts are
currently in mothball status.  It sells electric generation capacity, energy
and ancillary services in one of the nation's largest power markets, the
Electric Reliability Council of Texas (ERCOT).  Texas Genco has one of the most
diversified generation portfolios in Texas, using natural gas, oil, coal,
lignite, and uranium fuels.  The company owns and operates 60 generating units
at 11 electric power-generating facilities and owns a 30.8 percent interest in
a nuclear generating plant.  Texas Genco currently is a majority-owned
subsidiary of CenterPoint Energy, Inc.  For more information, visit our web
site at http://www.txgenco.com/ .

This news release includes forward-looking statements.  Actual events and
results may differ materially from those projected.  The statements in this
news release regarding future financial performance and results of operations
and other statements that are not historical facts are forward-looking
statements.  Factors that could affect actual results include the timing and
impact of future regulatory and legislative decisions, effects of competition,
weather variations, changes in Texas Genco's business plans, financial market
conditions, the timing and extent of changes in commodity prices, particularly
natural gas, the impact of unplanned plant outages and other factors discussed
in Texas Genco's Form 10-K for the period ended December 31, 2003 and other
filings with the Securities and Exchange Commission.

                        Texas Genco Holdings, Inc.
                    Statements of Consolidated Income
                          (Thousands of Dollars)
                               (Unaudited)

                                                  Quarter Ended March 31,
                                                  2004               2003

   Revenues                                       439,129           358,587

   Expenses:
     Fuel                                         186,315           207,989
     Purchased power                                8,270            11,994
     Operation and maintenance                    101,327           105,350
     Depreciation and amortization                 40,369            39,079
     Taxes other than income taxes                 12,256            11,291
       Total                                      348,537           375,703
   Operating Income (Loss)                         90,592           (17,116)

   Other Income                                       388               200
   Interest Expense                                   (26)           (2,803)

   Income (Loss) Before Income Taxes
    and Cumulative Effect of
    Accounting Change                              90,954           (19,719)

   Income Tax Benefit (Expense)                   (30,062)            8,837

   Income (Loss) Before Cumulative
    Effect of Accounting Change                    60,892           (10,882)

   Cumulative Effect of Accounting
    Change, net of tax                                ---            98,910

   Net Income Attributable to Common
    Shareholders                                  $60,892           $88,028


   Basic and Diluted Earnings Per
    Common Share:
     Income (Loss) Before Cumulative
      Effect of Accounting Change                   $0.76            $(0.14)
     Cumulative Effect of Accounting
      Change, net of tax                              ---              1.24
     Net Income Attributable to Common
      Shareholders                                  $0.76             $1.10

   Dividends Declared per Common Share              $0.25             $0.25

   Weighted Average Common Shares
    Outstanding (000):
     - Basic                                       80,000            80,000
     - Diluted                                     80,000            80,000

   Capital Expenditures                           $24,060           $44,662

   Operating Data:
     Sales (MWH)                               10,720,778         9,276,344
     Generation (MWH)                          10,149,190         8,994,753



Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of Texas Genco Holdings, Inc.

                        Texas Genco Holdings, Inc.
                  Condensed Consolidated Balance Sheets
                          (Thousands of Dollars)
                               (Unaudited)

                                               March 31,       December 31,
                                                  2004              2003

                ASSETS
  Current Assets:
    Cash                                            $309               $33
    Short-term investments                           ---            44,525
    Short-term note receivable-affiliate          52,155               ---
    Inventory                                    168,850           169,692
    Other current assets                          68,915            84,142
        Total current assets                     290,229           298,392

  Property, Plant and Equipment, net           4,101,621         4,125,595

  Other Assets:
    Nuclear decommissioning trust                201,310           189,182
    Other non-current assets                      26,198            26,462
        Total other assets                       227,508           215,644
          Total Assets                        $4,619,358        $4,639,631

     LIABILITIES AND SHAREHOLDERS' EQUITY

  Current Liabilities:
    Accounts payable and other accrued
     liabilities                                $164,381          $224,319
    Deferred capacity auction revenue             82,318            86,853
    Other current liabilities                     16,289            17,579
        Total current liabilities                262,988           328,751

  Other Liabilities:
    Accumulated deferred income taxes,
     net and investment tax credit               986,366           995,078
    Nuclear decommissioning reserve              190,394           187,997
    Other non-current liabilities                105,557            94,644
        Total other liabilities                1,282,317         1,277,719

  Shareholders' Equity                         3,074,053         3,033,161
        Total Liabilities and
         Shareholders' Equity                 $4,619,358        $4,639,631



Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of Texas Genco Holdings, Inc.

                        Texas Genco Holdings, Inc.
             Condensed Statements of Consolidated Cash Flows
                          (Thousands of Dollars)
                               (Unaudited)

                                               Three Months Ended March 31,
                                                  2004              2003

  Cash Flows from Operating Activities:
    Net income attributable to common
     shareholders                                $60,892           $88,028
    Adjustments to reconcile net income
     to net cash provided by (used in)
     operating activities:
      Depreciation and amortization,
       including fuel-related
       amortization                               47,559            45,614
      Deferred income taxes and
       investment tax credit                      (6,226)           (8,008)
      Cumulative effect of accounting
       change, net                                   ---           (98,910)
      Changes in other assets and
       liabilities                               (51,162)          (63,654)
  Net Cash Provided by (Used in)
   Operating Activities                           51,063           (36,930)

  Cash Flows from Investing Activities:
    Capital expenditures and other               (23,051)          (44,340)
    Increase in notes receivable-
     affiliate                                   (52,155)              ---
  Net Cash Used in Investing Activities          (75,206)          (44,340)

  Net Cash Provided by (Used in)
   Financing Activities                          (20,106)           82,099

  Net Increase (Decrease) in Cash and
   Cash Equivalents                              (44,249)              829

  Cash and Cash Equivalents at
   Beginning of Period                            44,558               578

  Cash and Cash Equivalents at End of
   Period                                           $309            $1,407



Reference is made to the Notes to the Consolidated Financial Statements
contained in the Annual Report on Form 10-K of Texas Genco Holdings, Inc. 

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DATASOURCE: Texas Genco Holdings, Inc.



CONTACT:  media, Leticia Lowe, [phone], or investors, Marianne

Paulsen, [phone], both of Texas Genco Holdings, Inc.



Web site:  http://www.txgenco.com/

http://www.txgenco.com/investor.html 

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