EXHIBIT D
TAX SHARING AGREEMENT
This Agreement by and between each of CenterPoint Energy, Inc.
("CenterPoint"), Utility Holding LLC, and each of its subsidiaries listed on
Exhibit A (collectively the "Parties"):
WITNESSETH:
WHEREAS, for federal income tax purposes, the Parties and
others are members of a group of companies of which CenterPoint is the common
parent (the "CenterPoint Group");
WHEREAS, CenterPoint files a consolidated federal income tax
return on behalf of the CenterPoint Group and pays the federal income tax owed
by the CenterPoint Group;
WHEREAS, the parties desire to set forth their agreement
regarding how the federal income tax liability and tax benefits of the
CenterPoint Group will be allocated among and shared by the members of the
CenterPoint Group.
NOW THEREFORE, the parties agree as follows:
1. Definitions.
a. "Act" means the Public Utility Holding Company Act of 1935.
b. "CenterPoint Affiliated Group" means the group of
corporations that are members of the affiliated group, as
defined under Section 1504(a) of the Internal Revenue Code of
1986, as amended (the "Code"), with CenterPoint as the common
parent.
c. "CenterPoint Tax Benefit" means a benefit in Consolidated
Tax that is attributable to the operations, activities or
holdings of CenterPoint.
d. "Consolidated Tax" has the meaning of consolidated tax set
forth in Reg. Section 250.45(c)(1) to Rule 45 under the Act.
e. "Intercompany Tax Policy" refers to the Intercompany Tax
Benefit Allocation and Income Tax Accounting Policies attached
hereto and made a part of Exhibit B.
f. "Member" means (i) any member of the CenterPoint Affiliated
Group and (ii) any partnership, limited liability company or
trust that would have been a member of the CenterPoint
Affiliated Group if such entity were treated as a corporation
under the Code unless such entity is wholly owned by an entity
that is subject to tax under subchapter C of the Code that is
not CenterPoint.
g. "Separate Return Tax" has the meaning of separate return
tax set forth in Reg. Section 250.45(c)(1) to Rule 45 under
the Act.
2. General. The tax liability and tax benefits of the CenterPoint Group
shall be shared in accordance with the Intercompany Tax Policy. For purposes of
applying the Intercompany Tax Policy, CenterPoint is the successor to Houston
Industries Incorporated, referred to as "HII" in the Intercompany Tax Policy.
3. Rule 45 Compliance. Notwithstanding anything in this Agreement
(including the Intercompany Tax Policy) to the contrary,
a. the Consolidated Tax of the CenterPoint Group shall be
allocated among the Members in proportion to the Separate
Return Tax of each
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Member of the CenterPoint Group, provided that the tax
apportioned to any Member shall not exceed the Separate Return
Tax of such Member, and
b. CenterPoint shall not retain, and shall not be reimbursed
by any of the Members for, any CenterPoint Tax Benefit. Any
CenterPoint Tax Benefit shall be allocated among the Members
(other than CenterPoint) in proportion to the Separate Return
Tax of each such Member.
4. Amendments. This Agreement (including the Intercompany Tax Policy)
shall be amended only with the written consent of all parties to be charged with
such amendment.
5. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original and all of which
together shall constitute but one and the same agreement.
6. Binding Effect. This Agreement shall be binding on and inure to the
benefit of the Parties, their successors and assigns. Each Party to this
Agreement shall ensure that any subsidiary of such Party which is also a Member
shall agree to and be bound by the terms of this Agreement.
7. Governing Law. This Agreement shall be governed by the laws of the
State of Texas.
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IN WITNESS WHEREOF, the parties have executed this Agreement.
CENTERPOINT ENERGY, INCORPORATED
By
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UTILITY HOLDING LLC
By
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TEXAS GENCO HOLDINGS, INC.
By
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CENTERPOINT ENERGY HOUSTON
ELECTRIC LLC
By
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CENTERPOINT ENERGY RESOURCES
CORPORATION
By
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CENTERPOINT ENERGY INTERNATIONAL, INC.
By
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HOUSTON INDUSTRIES FUNDING COMPANY
By
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HL&P CAPITAL TRUST I
By
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HL&P CAPITAL TRUST II
By
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REI TRUST I
By
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REI TRUST II
By
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HL&P RECEIVABLES, INC.
By
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RELIANT ENERGY INVESTMENT MANAGEMENT, INC.
By
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RELIANT ENERGY POWER SYSTEMS, INC.
By
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RELIANT ENERGY PROPERTIES, INC.
By
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RELIANT ENERGY PRODUCTS, INC.
By
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RELIANT ENERGY WATER, INC.
By
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NORAM ENERGY CORP.
By
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UTILITY RAIL SERVICES, INC.
By
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UFI SERVICES, INC.
By
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HOUSTON INDUSTRIES ENERGY (UK), INC.
By
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RELIANT ENERGY THERMAL SYSTEMS, INC.
By
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RELIANT ENERGY THERMAL SYSTEMS
(DELAWARE), INC.
By
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RELIANT ▇▇▇▇▇▇.▇▇▇. INC.
By
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EXHIBIT A
Texas Genco Holdings, Inc.
CenterPoint Energy Houston Electric LLC
CenterPoint Energy Resources Corporation
CenterPoint Energy International, Inc.
Houston Industries Funding Company
HL&P Capital Trust I
HL&P Capital Trust II
REI Trust I
REI Trust II
HL&P Receivables, Inc.
Reliant Energy Investment Management, Inc.
Reliant Energy Power Systems, Inc.
Reliant Energy Properties, Inc.
Reliant Energy Products, Inc.
Reliant Energy Water, Inc.
NorAm Energy Corp.
Utility Rail Services, Inc.
UFI Services, Inc.
Houston Industries Energy (UK), Inc.
Reliant Energy Thermal Systems, Inc.
Reliant Energy Thermal Systems (Delaware), Inc.
Reliant ▇▇▇▇▇▇.▇▇▇. Inc.
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