Texas Genco Reports Strong Fourth Quarter and Full Year 2003 Results; Company Raises 2004 Earnings Guidance

Texas Genco Reports Strong Fourth Quarter and Full Year 2003 Results; Company
Raises 2004 Earnings Guidance 


HOUSTON, Feb. 12  /PRNewswire-FirstCall/ -- Texas Genco Holdings, Inc. , an 81
percent-owned subsidiary of CenterPoint Energy, Inc. , today reported net income
of $46 million, or $0.58 per share, for the quarter ended December 31, 2003,
compared to a net loss of $43 million, or $0.54 per share, for the same period
of 2002.

For the year ended December 31, 2003, the company reported $151 million, or
$1.89 per share, of income before cumulative effect of accounting change
compared to a loss of $93 million, or $1.16 per share, for the same period of
2002.  Net income for 2003 was $250 million, or $3.13 per share, which reflects
the benefit from the cumulative effect of accounting change of $99 million, or
$1.24 per share, from the implementation of SFAS No. 143, "Accounting for Asset
Retirement Obligations", compared to a net loss of $93 million, or $1.16 per
share, for 2002.

"Our improved quarterly earnings were impacted by higher wholesale electricity
prices which were driven by increased natural gas prices," said David Tees,
president and chief executive officer of Texas Genco.  "These higher prices,
coupled with our large fleet of solid fuel baseload generating capacity,
produced a significant turnaround in our financial performance for the entire
year," stated Tees.  "I'm very proud of our employees who worked diligently
throughout the year focusing on doing what they do best -- running efficient,
safe and reliable plants."

For the fourth quarter of 2003, Texas Genco reported increased revenues compared
to the same period of 2002.  Capacity and other revenues were bolstered by
increased prices for its baseload products due primarily to strong wholesale
electricity prices and revenues from the sales of surplus air emission
allowances ($10 million).  Energy revenues also increased and more than offset
increased fuel and purchased power costs.  Operation and maintenance expenses
for the fourth quarter of 2003 were lower than the prior year primarily related
to expenses incurred in the fourth quarter of 2002 which did not recur in the
fourth quarter of 2003, the most significant of which was an early retirement
program.  Taxes other than income taxes increased in the fourth quarter of 2003
compared to the same period of 2002 due primarily to higher property taxes in
2003 and to reduced state franchise taxes in the fourth quarter of 2002.

For the full year 2003, Texas Genco reported significantly increased revenues
compared to 2002.  Consistent with the fourth quarter, revenues increased due to
higher capacity revenue for baseload products, the sales of surplus air emission
allowances ($16 million) and higher energy revenueswhich more than offset
higher fuel and purchased power costs.  Operation and maintenance expenses
increased due to higher pension expenses, as well as higher costs associated
with planned and several unplanned unit outages. These increases were partially
offset by expenses incurred in the fourth quarter of 2002, which did not recur
in 2003, as noted above.

2004 OUTLOOK

The company raised its full year 2004 earnings per share estimate to $3.35 -
$3.75 from its initial earnings estimate of $2.75 - $3.25 per share.  The
revised estimate reflects the forward sales of over $850 million of capacity
revenues under contract for 2004, including approximately 83 percent of its
available baseload capacity.  Earnings for 2004 will be highly dependent on the
operating performance of the company's baseload generating units, as well as the
continuation of strong wholesale electricity prices.

WEBCAST OF EARNINGS CONFERENCE CALL

The management of Texas Genco will host an earnings conference call on Thursday,
Feb. 12, 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 maydiffer 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-Q for the quarterly period ended September 30, 2003 and
other filings with the Securities and Exchange Commission.

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

                                  Quarter Ended        Twelve Months Ended
                                   December 31,            December 31,
                                  2003       2002        2003        2002

   Revenues:
     Energy revenues            $214,629   $200,050  $1,221,348  $1,093,714
     Capacity
      and other revenues         193,278     75,242     781,020     447,261
        Total                    407,907    275,292   2,002,368   1,540,975

   Expenses:
     Fuel costs                  175,049    175,755   1,098,269     989,560
     Purchased power              17,282      6,624      72,509      93,841
     Operation and maintenance   100,506    119,246     411,940     391,465
     Depreciation and
      amortization                39,762     38,972     159,010     156,740
     Taxes other than income
      taxes                       10,823     (5,910)     38,681      42,930
        Total                    343,422    334,687   1,780,409   1,674,536
   Operating Income (Loss)        64,485    (59,395)    221,959    (133,561)

   Other Income (Expense)          5,308         85       2,176       3,423
   Interest Expense                  ---     (1,355)     (1,583)    (25,637)

   Income (Loss) Before Income
    Taxes and Cumulative Effect
     of Accounting Change    69,793    (60,665)    222,552    (155,775)

   Income Tax Benefit
    (Expense)                    (23,344)    17,410     (71,286)     62,832

   Income (Loss) Before
    Cumulative Effect of
     Accounting Change            46,449    (43,255)    151,266     (92,943)

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

   Net Income (Loss)
    Attributable to Common
     Shareholders                $46,449   $(43,255)$250,176    $(92,943)


   Basic and Diluted Earnings
    Per Common Share:
     Income (Loss) Before
      Cumulative Effect of
       Accounting Change           $0.58     $(0.54)      $1.89      $(1.16)
     Cumulative Effect of
      Accounting Change,
       net of tax                    ---        ---        1.24         ---
     Net Income (Loss)
      Attributable to Common
       Shareholders                $0.58     $(0.54)      $3.13      $(1.16)

   Dividends Declared per
    Common Share                   $0.25       $---       $1.00        $---

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

   Electric Generation Power
    Sales (MWH)               11,047,141  9,539,888  47,374,490  51,462,581

  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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