Semiannual Servicer's Certificate for CenterPoint Energy Transition Bond Company II, LLC Series A Transition Bonds

Summary

This certificate, issued by CenterPoint Energy Houston Electric, LLC as Servicer to CenterPoint Energy Transition Bond Company II, LLC as Issuer, reports on the collections, payments, and account balances related to the $1,851,000,000 Series A Transition Bonds for the period from December 16, 2005 to July 31, 2006. It details the amounts collected, payments made to bondholders and service providers, and confirms that all required payments and account balances have been met as of the payment date, August 1, 2006.

EX-10.1 2 h38176exv10w1.txt SEMIANNUAL SERVICER'S CERTIFICATE EXHIBIT 10.1 Schedule 2 to Indenture SEMIANNUAL SERVICER'S CERTIFICATE CENTERPOINT ENERGY TRANSITION BOND COMPANY II, LLC $1,851,000,000 SERIES A TRANSITION BONDS Pursuant to Section 6 of Annex 1 to the Transition Property Servicing Agreement (the "Agreement"), dated as of December 16, 2005, between CenterPoint Energy Houston Electric, LLC, as Servicer, and CenterPoint Energy Transition Bond Company II, 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: December 16, 2005 through July 31, 2006 Payment Date: August 1, 2006 Today's Date: July 31, 2006 1. COLLECTIONS ALLOCABLE AND AGGREGATE AMOUNTS AVAILABLE FOR CURRENT PAYMENT DATE: i. Remittances for the December 16 through 31, 2005 Collection Period 0.00 ii. Remittances for the January 1 through 31, 2006 Collection Period 402,331.87 iii. Remittances for the February 1 through 28, 2006 Collection Period 8,525,308.39 iv. Remittances for the March 1 through 31, 2006 Collection Period 13,256,556.72 v. Remittances for the April 1 through 30, 2006 Collection Period 11,861,743.19 vi. Remittances for the May 1 through 31, 2006 Collection Period 12,588,621.39 vii. Remittances for the June 1 through 30, 2006 Collection Period 16,704,170.09 viii. Remittances for the July 1 through 31, 2006 Collection Period 16,301,727.85 ix. Net Earnings on Collection Account 805,287.33 [12/16/05 through ---------------- 6/30/06] x. General Subaccount Balance (sum of i through ix above) 80,445,746.83 xi. Excess Funds Subaccount Balance as of Closing Date 0.00 xii Capital Subaccount Balance as of Closing Date 9,255,000.00 ---------------- xiii. Collection Account Balance (sum of x through xii above) 89,700,746.83 ================ 2. OUTSTANDING AMOUNTS AS OF CLOSING DATE: i. Tranche A-1 Principal Balance 250,000,000.00 ii. Tranche A-2 Principal Balance 368,000,000.00 iii. Tranche A-3 Principal Balance 252,000,000.00 iv. Tranche A-4 Principal Balance 519,000,000.00 v. Tranche A-5 Principal Balance 462,000,000.00 ---------------- vi. Aggregate Principal Balance of all Series A Transition Bonds 1,851,000,000.00 ================ 3. REQUIRED FUNDING/PAYMENTS AS OF CURRENT PAYMENT DATE:

Funding Required Level Required -------------- -------- xii. Capital Subaccount 9,255,000.00 0.00 4. ALLOCATION OF REMITTANCES AS OF CURRENT PAYMENT DATE PURSUANT TO SECTION 8.02(d) OF INDENTURE: i. Trustee Fees and Expenses 2,500.00 ii. Servicing Fee 578,437.50(1) iii. Administration Fee and Independent Managers Fee 62,500.00(2) iv. Operating Expenses 40,323.76(3) v. Semiannual Interest (including any past-due Semiannual Interest for prior periods) Per $1,000 of Original Series A Aggregate Principal Amount -------- --------- ---------------- 1. Tranche A-1 Interest Payment 7,562,500.00 30.25 2. Tranche A-2 Interest Payment 11,431,000.00 31.06 3. Tranche A-3 Interest Payment 8,016,750.00 31.81 4. Tranche A-4 Interest Payment 16,770,187.50 32.31 5. Tranche A-5 Interest Payment 15,309,525.00 33.14 vi. Principal Due and Payable as a result of Event of Default or on Final Maturity Date Per $1,000 of Original Series A Aggregate Principal Amount -------- --------- ---------------- 1. Tranche A-1 Principal Payment 0.00 0.00 2. Tranche A-2 Principal Payment 0.00 0.00 3. Tranche A-3 Principal Payment 0.00 0.00 4. Tranche A-4 Principal Payment 0.00 0.00 5. Tranche A-5 Principal Payment 0.00 0.00 vii. Semiannual Principal Per $1,000 of Original Series A Aggregate Principal Amount -------- --------- ---------------- 1. Tranche A-1 Principal Payment 18,564,683.00 74.26 2. Tranche A-2 Principal Payment 0.00 0.00 3. Tranche A-3 Principal Payment 0.00 0.00 4. Tranche A-4 Principal Payment 0.00 0.00 5. Tranche A-5 Principal Payment 0.00 0.00 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 (to required level) 0.00 xi. Net Earnings in Capital Subaccount Released to Issuer 224,170.06 xii. Deposit to Excess Funds Subaccount 1,883,170.01 xiii. Released to Issuer upon Series Retirement: Collection Account 0.00 (1) Servicing fee: $1,851,000,000 x .05% x 225/360 = $578,437.50 (2) Administration fee: $100,000 x 225/360 = $62,500.00 (3) Reimbursement to Administrator for fees/expenses paid to independent accountant ($15,000.00), rating agency ($10,000.00) and L/C issuing bank ($15,323.76)
5. SUBACCOUNT WITHDRAWALS AS OF CURRENT PAYMENT DATE (IF APPLICABLE, PURSUANT TO SECTION 8.02(d) OF INDENTURE): i. Excess Funds Subaccount (available for 4.i. through 4.xi.) 0.00 ii. Capital Subaccount (available for 4.i. through 4.ix.) 0.00 ---- iii. 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 A -------- i. Tranche A-1 Principal Balance 231,435,317.00 ii. Tranche A-2 Principal Balance 368,000,000.00 iii. Tranche A-3 Principal Balance 252,000,000.00 iv. Tranche A-4 Principal Balance 519,000,000.00 v. Tranche A-5 Principal Balance 462,000,000.00 -------------- vi. Aggregate Principal Balance for all Series A Transition Bonds 1,832,435,317.00 ================ vii. Excess Funds Subaccount Balance 1,883,170.01 viii. Capital Subaccount Balance 9,255,000.00 ------------ ix. Aggregate Collection Account Balance 11,138,170.01 ============= 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 A -------- 1. Tranche A-1 Bond Interest Payment 0.00 2. Tranche A-2 Bond Interest Payment 0.00 3. Tranche A-3 Bond Interest Payment 0.00 4. Tranche A-4 Bond Interest Payment 0.00 5. Tranche A-5 Bond Interest Payment 0.00 ii. Semiannual Principal Series A -------- 1. Tranche A-1 Principal Payment 0.00 2. Tranche A-2 Principal Payment 0.00 3. Tranche A-3 Principal Payment 0.00 4. Tranche A-4 Principal Payment 0.00 5. Tranche A-5 Principal Payment 0.00 8. SHORTFALL IN REQUIRED SUBACCOUNT LEVEL AS OF CURRENT PAYMENT DATE (AFTER GIVING EFFECT TO PAYMENTS TO BE MADE ON SUCH PAYMENT DATE): i. Capital Subaccount 0.00

IN WITNESS HEREOF, the undersigned has duly executed and delivered this Semiannual Servicer's Certificate this 31st day of July, 2006. CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC, as Servicer by: /s/ Marc Kilbride ----------------------------------------------------- Marc Kilbride Vice President and Treasurer