Document and Entity Supplementa
Document and Entity Supplemental Information Document - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Jul. 29, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | CENTERPOINT ENERGY INC. | ||
Entity Central Index Key | 1,130,310 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q2 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 430,681,744 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 8,146,639,191 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,574 | $ 1,532 | $ 3,558 | $ 3,965 |
Expenses: | ||||
Natural gas | 496 | 529 | 1,348 | 1,883 |
Operation and maintenance | 513 | 488 | 1,034 | 986 |
Depreciation and amortization | 289 | 239 | 549 | 456 |
Taxes other than income taxes | 94 | 90 | 195 | 198 |
Total | 1,392 | 1,346 | 3,126 | 3,523 |
Operating Income | 182 | 186 | 432 | 442 |
Other Income (Expense): | ||||
Gain on marketable securities | 20 | 79 | 110 | 62 |
Loss on indexed debt securities | (130) | (91) | (186) | (67) |
Interest and other finance charges | (86) | (89) | (173) | (178) |
Interest on securitization bonds | (23) | (27) | (47) | (55) |
Equity in earnings of unconsolidated affiliate, net | 31 | 43 | 91 | 95 |
Other, net | 14 | 13 | 21 | 24 |
Total | (174) | (72) | (184) | (119) |
Income Before Income Taxes | 8 | 114 | 248 | 323 |
Income tax expense | 10 | 37 | 96 | 115 |
Net Income (Loss) | $ (2) | $ 77 | $ 152 | $ 208 |
Basic Earnings (Loss) Per Share | $ (0.01) | $ 0.18 | $ 0.35 | $ 0.48 |
Diluted Earnings (Loss) Per Share | (0.01) | 0.18 | 0.35 | 0.48 |
Dividends Declared Per Share | $ 0.2575 | $ 0.2475 | $ 0.5150 | $ 0.4950 |
Weighted Average Shares Outstanding, Basic | 430,653,000 | 430,235,000 | 430,530,000 | 430,096,000 |
Weighted Average Shares Outstanding, Diluted | 430,653,000 | 431,733,000 | 432,973,000 | 431,594,000 |
Condensed Statements of Consol3
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (2) | $ 77 | $ 152 | $ 208 |
Other comprehensive income (loss): | ||||
Adjustment related to pension and other postretirement plans (net of tax of $2, $-0-, $1 and $2) | (1) | 2 | 0 | 4 |
Net deferred loss from cash flow hedges (net of tax of $1, $-0-, $1, $-0-) | (1) | 0 | (1) | 0 |
Total | (2) | 2 | (1) | 4 |
Comprehensive income (loss) | $ (4) | $ 79 | $ 151 | $ 212 |
Comprehensive Income Parentheti
Comprehensive Income Parentheticals - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax benefit (expense) on adjustment related to pension and postretirement plans | $ 2 | $ 0 | $ 1 | $ (2) |
Tax benefit on net deferred loss from cash flow hedges | $ (1) | $ 0 | $ (1) | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents ($246 and $264 related to VIEs, respectively) | $ 271 | $ 264 |
Investment in marketable securities | 737 | 805 |
Accounts receivable ($92 and $64 related to VIEs, respectively), less bad debt reserve of $24 and $20, respectively | 605 | 593 |
Accrued unbilled revenues | 178 | 279 |
Natural gas inventory | 96 | 168 |
Materials and supplies | 187 | 179 |
Non-trading derivative assets | 47 | 89 |
Taxes receivable | 16 | 172 |
Prepaid expenses and other current assets ($37 and $35 related to VIEs, respectively) | 135 | 140 |
Total current assets | 2,272 | 2,689 |
Property, Plant and Equipment: | ||
Property, plant and equipment | 17,218 | 16,650 |
Less: accumulated depreciation and amortization | 5,320 | 5,113 |
Property, plant and equipment, net | 11,898 | 11,537 |
Other Assets: | ||
Goodwill | 861 | 840 |
Regulatory assets ($2,156 and $2,373 related to VIEs, respectively) | 2,913 | 3,129 |
Notes receivable – unconsolidated affiliate | 0 | 363 |
Non-trading derivative assets | 22 | 36 |
Investment in unconsolidated affiliate | 2,536 | 2,594 |
Preferred units – unconsolidated affiliate | 363 | 0 |
Other | 147 | 102 |
Total other assets | 6,842 | 7,064 |
Total Assets | 21,012 | 21,290 |
Current Liabilities: | ||
Short-term borrowings | 17 | 40 |
Current portion of VIE securitization bonds long-term debt | 402 | 391 |
Indexed debt | 111 | 145 |
Current portion of other long-term debt | 250 | 328 |
Indexed debt securities derivative | 490 | 442 |
Accounts payable | 407 | 483 |
Taxes accrued | 92 | 158 |
Interest accrued | 119 | 117 |
Non-trading derivative liabilities | 19 | 11 |
Other | 334 | 343 |
Total current liabilities | 2,241 | 2,458 |
Other Liabilities: | ||
Deferred income taxes, net | 5,121 | 5,047 |
Non-trading derivative liabilities | 6 | 5 |
Benefit obligations | 904 | 904 |
Regulatory liabilities | 1,284 | 1,276 |
Other | 279 | 273 |
Total other liabilities | 7,594 | 7,505 |
Long-term Debt: | ||
VIE securitization bonds | 2,059 | 2,276 |
Other long-term debt | 5,721 | 5,590 |
Total long-term debt | 7,780 | 7,866 |
Commitments and Contingencies (Note 14) | ||
Shareholders’ Equity: | ||
Common stock (430,681,491 shares and 430,262,703 shares outstanding, respectively) | 4 | 4 |
Additional paid-in capital | 4,186 | 4,180 |
Accumulated deficit | (726) | (657) |
Accumulated other comprehensive loss | (67) | (66) |
Total shareholders’ equity | 3,397 | 3,461 |
Total Liabilities and Shareholders’ Equity | $ 21,012 | $ 21,290 |
Balance Sheets Parentheticals
Balance Sheets Parentheticals - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | $ 271 | $ 264 |
Bad debt reserve | 24 | 20 |
Accounts receivable, net | 605 | 593 |
Prepaid expenses and other current assets | 135 | 140 |
Regulatory assets | $ 2,913 | $ 3,129 |
Total common stock outstanding (in shares) | 430,681,491 | 430,262,703 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash and cash equivalents | $ 246 | $ 264 |
Accounts receivable, net | 92 | 64 |
Prepaid expenses and other current assets | 37 | 35 |
Regulatory assets | $ 2,156 | $ 2,373 |
Condensed Statements of Consol7
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 152 | $ 208 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 549 | 456 |
Amortization of deferred financing costs | 13 | 14 |
Deferred income taxes | 69 | 4 |
Unrealized gain on marketable securities | (110) | (62) |
Loss on indexed debt securities | 186 | 67 |
Write-down of natural gas inventory | 1 | 2 |
Equity in (earnings) losses of unconsolidated affiliate, net of distributions | (91) | 50 |
Pension contributions | (5) | (25) |
Changes in other assets and liabilities, excluding acquisitions: | ||
Accounts receivable and unbilled revenues, net | 147 | 367 |
Inventory | 63 | 103 |
Taxes receivable | 156 | 152 |
Accounts payable | (109) | (327) |
Fuel cost recovery | (17) | 86 |
Non-trading derivatives, net | 22 | 2 |
Margin deposits, net | 65 | 25 |
Interest and taxes accrued | (64) | (66) |
Net regulatory assets and liabilities | (21) | 78 |
Other current assets | 4 | 23 |
Other current liabilities | 21 | (38) |
Other liabilities | 17 | (3) |
Other, net | 10 | 6 |
Net cash provided by operating activities | 1,058 | 1,122 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (682) | (712) |
Acquisitions, net of cash acquired | (98) | 0 |
Decrease in notes receivable – unconsolidated affiliate | 363 | 0 |
Investment in preferred units – unconsolidated affiliate | (363) | 0 |
Distributions from unconsolidated affiliate in excess of cumulative earnings | 149 | 0 |
Decrease (increase) in restricted cash of Bond Companies | (2) | 13 |
Proceeds from sale of marketable securities | 178 | 32 |
Other, net | (12) | (4) |
Net cash used in investing activities | (467) | (671) |
Cash Flows from Financing Activities: | ||
Decrease in short-term borrowings, net | (23) | (29) |
Proceeds of commercial paper, net | 278 | 137 |
Proceeds from long-term debt | 300 | 0 |
Payments of long-term debt | (735) | (400) |
Debt issuance costs | (7) | 0 |
Payment of common stock dividends | (221) | (213) |
Distribution to ZENS note holders | (178) | 0 |
Other, net | 2 | 1 |
Net cash used in financing activities | (584) | (504) |
Net Increase (Decrease) in Cash and Cash Equivalents | 7 | (53) |
Cash and Cash Equivalents at Beginning of Period | 264 | 298 |
Cash and Cash Equivalents at End of Period | 271 | 245 |
Cash Payments: | ||
Interest, net of capitalized interest | 200 | 209 |
Income tax refunds, net | (126) | (38) |
Non-cash transactions: | ||
Accounts payable related to capital expenditures | $ 79 | $ 81 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation [Text Block] | Background and Basis of Presentation General. Included in this Form 10-Q are the Interim Condensed Financial Statements of CenterPoint Energy. The Interim Condensed Financial Statements are unaudited, omit certain financial statement disclosures and should be read with the 2015 Form 10-K. Background. CenterPoint Energy, Inc. is a public utility holding company. CenterPoint Energy’s operating subsidiaries own and operate electric transmission and distribution facilities and natural gas distribution facilities, and both CenterPoint Energy and its operating subsidiaries own interests in Enable as described in Note 8 . As of June 30, 2016 , CenterPoint Energy’s indirect, wholly-owned subsidiaries included: • Houston Electric, which engages in the electric transmission and distribution business in the Texas Gulf Coast area that includes the city of Houston; and • CERC Corp. (together with its subsidiaries), which owns and operates natural gas distribution systems. A wholly-owned subsidiary of CERC Corp. offers variable and fixed-price physical natural gas supplies primarily to commercial and industrial customers and electric and natural gas utilities. As of June 30, 2016 , CERC Corp. also owned approximately 55.4% of the limited partner interests in Enable, which owns, operates and develops natural gas and crude oil infrastructure assets. As of June 30, 2016 , CenterPoint Energy had VIEs consisting of Bond Companies, which it consolidates. The consolidated VIEs are wholly-owned, bankruptcy-remote, special purpose entities that were formed specifically for the purpose of securitizing transition and system restoration-related property. Creditors of CenterPoint Energy have no recourse to any assets or revenues of Bond Companies. The bonds issued by these VIEs are payable only from and secured by transition and system restoration property, and the bondholders have no recourse to the general credit of CenterPoint Energy. Basis of Presentation. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. CenterPoint Energy’s Interim Condensed Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the respective periods. Amounts reported in CenterPoint Energy’s Condensed Statements of Consolidated Income are not necessarily indicative of amounts expected for a full-year period due to the effects of, among other things, (a) seasonal fluctuations in demand for energy and energy services, (b) changes in energy commodity prices, (c) timing of maintenance and other expenditures and (d) acquisitions and dispositions of businesses, assets and other interests. For a description of CenterPoint Energy’s reportable business segments, see Note 16 . |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements [Text Block] | New Accounting Pronouncements In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02). ASU 2015 -02 changes the analysis that reporting organizations must perform to evaluate whether they should consolidate certain legal entities, such as limited partnerships. The changes include, among others, modification of the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities and elimination of the presumption that a general partner should consolidate a limited partnership. ASU 2015-02 does not amend the related party guidance for situations in which power is shared between two or more entities that hold interests in a VIE. CenterPoint Energy adopted ASU 2015-02 on January 1, 2016, which CenterPoint Energy determined did not have a material impact on its financial position, results of operations, cash flows and disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost (ASU 2015-03) . ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. CenterPoint Energy adopted ASU 2015-03 retrospectively on January 1, 2016, which resulted in a reduction of other long-term assets, indexed debt and total long-term debt on its Condensed Consolidated Balance Sheets. CenterPoint Energy had debt issuance costs, excluding amounts related to credit facility arrangements, of $43 million and $44 million as of June 30, 2016 and December 31, 2015, respectively. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (ASU 2015-07). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy investments for which fair values are measured at NAV using the practical expedient. Entities will be required to disclose the fair value of investments measured using the NAV practical expedient so that financial statement users can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. CenterPoint Energy adopted ASU 2015-07 on January 1, 2016, which will have an impact on its employee benefit plan disclosures, beginning with its annual report on Form 10-K for the year ended December 31, 2016. This standard did not have an impact on CenterPoint Energy’s financial position, results of operations or cash flows. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (ASU 2015-16). ASU 2015-16 eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, an acquirer would recognize a measurement-period adjustment during the period in which the amount of the adjustment is determined. CenterPoint Energy adopted ASU 2015-16 on January 1, 2016, which did not have an impact on its financial position, results of operations or cash flows. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). ASU 2016-01 requires equity investments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value and to recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. It does not change the guidance for classifying and measuring investments in debt securities and loans. ASU 2016-01 also changes certain disclosure requirements and other aspects related to recognition and measurement of financial assets and financial liabilities. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. CenterPoint Energy is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 provides a comprehensive new lease model that requires lessees to recognize assets and liabilities for most leases and would change certain aspects of lessor accounting. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. CenterPoint Energy is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novation on Existing Hedge Accounting Relationships (ASU 2016-05). ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in an existing hedging relationship would not, in and of itself, be considered a termination of the derivative instrument or a change in a critical term of the hedging relationship. This clarification applies to both cash flow and fair value hedging relationships. CenterPoint Energy adopted ASU 2016-05 prospectively in the first quarter of 2016, which did not have an impact on its financial position, results of operations, cash flows and disclosures. In March, April, and May 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (ASU 2016-08), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (ASU 2016-10), and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (ASU 2016-12), respectively. ASU 2016-08, ASU 2016-10, and ASU 2016-12 clarify certain aspects of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which supersedes most current revenue recognition guidance. CenterPoint Energy is currently evaluating the impact that ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2014-09 will have on its financial position, results of operations, cash flows and disclosures and expects to adopt these ASUs on January 1, 2018. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 will change the accounting for certain aspects of share-based payments to employees, including the recognition of income tax effects of vested or settled awards in the income statement, instead of within additional paid-in capital. It will also increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligations. ASU 2016-09 will allow companies to elect between two different methods to account for forfeitures of share-based payments. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. CenterPoint Energy is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires a new model called the CECL model to estimate credit losses for financial assets subject to credit losses and measured at amortized cost and certain off-balance sheet credit exposures. This includes loans, held-to-maturity debt securities, loan commitments, financial guarantees, and net investments in leases, as well as reinsurance and trade receivables. Upon initial recognition of the exposure, the CECL model requires an entity to estimate the credit losses expected over the life of an exposure based on historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. The update also amends the other-than-temporary impairment model for debt securities classified as available-for-sale. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted beginning after December 15, 2018. CenterPoint Energy is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. Management believes that other recently issued standards, which are not yet effective, will not have a material impact on CenterPoint Energy’s consolidated financial position, results of operations or cash flows upon adoption. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition [Text Block] | Acquisition On April 1, 2016, CES, an indirect, wholly-owned subsidiary of CenterPoint Energy, closed the previously announced agreement to acquire the retail energy services business and natural gas wholesale assets of Continuum for $98 million . The purchase price was allocated to identifiable assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. As additional information becomes available, the preliminary purchase price allocation may be revised during the remainder of the measurement period (which will not exceed 12 months from the acquisition date). Any such revisions or changes are not expected to be material. The following table summarizes the total preliminary purchase price allocation and the fair value amounts recognized for the assets acquired and liabilities assumed related to the acquisition: (in millions) Total purchase price consideration $ 98 Receivables $ 75 Derivative assets 38 Property and equipment 1 Identifiable intangibles 36 Total assets acquired 150 Accounts payable 49 Derivative liabilities 24 Total liabilities assumed 73 Identifiable net assets acquired 77 Goodwill 21 Net assets acquired $ 98 The goodwill of $21 million resulting from the acquisition reflects the excess of the purchase price over the fair value of the net identifiable assets acquired. The goodwill recorded as part of the acquisition primarily reflects the value of th e complementary operational and geographic footprints provided, along with the scale, geographic reach and expanded capabilities. Identifiable intangible assets were recorded at estimated fair value as determined by management based on available information, which includes a preliminary valuation prepared by an independent third party. The significant assumptions used in arriving at the estimated identifiable intangible asset values included management’s estimates of future cash flows, the discount rate which is based on the weighted average cost of capital for comparable publicly traded guideline companies and projected customer attrition rates. The useful lives for the identifiable intangible assets were determined using methods that approximate the pattern of economic benefit provided by the utilization of the assets. The estimated fair value of the identifiable intangible assets and related useful lives as included in the preliminary purchase price allocation include: Estimate Fair Value Estimate Useful Life (in millions) (in years) Customer relationships $ 32 15 Covenants not to compete 4 4 Total identifiable intangibles $ 36 Amortization expense related to the above identifiable intangible assets was $1 million for the three and six months ended June 30, 2016 and is expected to be $2 million for 2016. Revenues of $108 million and operating income of less than $1 million attributable to the acquisition are included in CenterPoint Energy’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2016. As Continuum was a non-public company that did not prepare interim financial information, the historical financial information for the businesses and assets acquired was impracticable to obtain. As a result, pro forma results of the acquired businesses and assets are not presented. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans [Text Block] | Employee Benefit Plans CenterPoint Energy’s net periodic cost includes the following components relating to pension and postretirement benefits: Three Months Ended June 30, 2016 2015 Pension Postretirement Pension Postretirement (in millions) Service cost $ 9 $ — $ 10 $ — Interest cost 24 5 23 5 Expected return on plan assets (25 ) (1 ) (30 ) (1 ) Amortization of prior service cost (credit) 2 (1 ) 2 (1 ) Amortization of net loss 16 — 15 1 Curtailment gain (3) — (3 ) — — Net periodic cost $ 26 $ — $ 20 $ 4 Six Months Ended June 30, 2016 2015 Pension Postretirement Pension Postretirement (in millions) Service cost $ 18 $ 1 $ 20 $ 1 Interest cost 47 9 46 10 Expected return on plan assets (50 ) (3 ) (60 ) (3 ) Amortization of prior service cost (credit) 4 (1 ) 5 (1 ) Amortization of net loss 32 — 29 2 Settlement cost (2) — — 9 — Curtailment gain (3) — (3 ) — — Net periodic cost $ 51 $ 3 $ 49 $ 9 (1) Net periodic cost in these tables is before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes. (2) A one-time, non-cash settlement charge is required when lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of net periodic cost for that year. Due to the amount of lump sum payment distributions from the non-qualified pension plan during the six months ended June 30, 2015 , CenterPoint Energy recognized a non-cash settlement charge of $9 million . This charge is an acceleration of costs that would otherwise be recognized in future periods. (3) A curtailment gain or loss is required when the expected future services of a significant number of current employees are reduced or eliminated for the accrual of benefits. In May 2016, Houston Electric entered into a renegotiated collective bargaining agreement with the IBEW Local Union 66 that provides that for Houston Electric union employees covered under the agreement who retire on or after January 1, 2017, retiree medical and prescription drug coverage will be provided exclusively through the NECA/IBEW Family Medical Care Plan in exchange for the payment of monthly premiums as determined under the agreement. As a result, the accrued postretirement benefits related to such future Houston Electric union retirees were eliminated. Houston Electric recognized a curtailment gain of $3 million as an accelerated recognition of the prior service credit that would otherwise be recognized in future periods. CenterPoint Energy’s changes in accumulated comprehensive loss related to defined benefit and postretirement plans are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Pension and Postretirement Plans Pension and Postretirement Plans (in millions) Beginning Balance $ (64 ) $ (83 ) $ (65 ) $ (85 ) Other comprehensive income (loss) before reclassifications (1) (4 ) — (4 ) — Amounts reclassified from accumulated other comprehensive loss: Actuarial losses (2) 1 2 3 6 Tax benefit (expense) 2 — 1 (2 ) Net current period other comprehensive income (loss) (1 ) 2 — 4 Ending Balance $ (65 ) $ (81 ) $ (65 ) $ (81 ) (1) Total other comprehensive income (loss) related to the remeasurement of the postretirement plan. (2) These accumulated other comprehensive components are included in the computation of net periodic cost. CenterPoint Energy expects to contribute a total of approximately $8 million to its pension plans in 2016 , of which approximately $2 million and $5 million were contributed during the three and six months ended June 30, 2016 , respectively. CenterPoint Energy expects to contribute a total of approximately $16 million to its postretirement benefit plan in 2016 , of which approximately $4 million and $8 million were contributed during the three and six months ended June 30, 2016 , respectively. |
Regulatory Accounting
Regulatory Accounting | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Assets and Liabilities, Other Disclosures [Abstract] | |
Regulatory Accounting [Text Block] | Regulatory Accounting As of June 30, 2016 , Houston Electric has not recognized an allowed equity return of $363 million because such return will be recognized as it is recovered in rates. During the three months ended June 30, 2016 and 2015 , Houston Electric recognized approximately $17 million and $12 million , respectively, of the allowed equity return not previously recognized. During the six months ended June 30, 2016 and 2015 , Houston Electric recognized approximately $30 million and $21 million , respectively, of the allowed equity return not previously recognized. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments [Text Block] | Derivative Instruments CenterPoint Energy is exposed to various market risks. These risks arise from transactions entered into in the normal course of business. CenterPoint Energy utilizes derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices and weather on its operating results and cash flows. Such derivatives are recognized in CenterPoint Energy’s Condensed Consolidated Balance Sheets at their fair value unless CenterPoint Energy elects the normal purchase and sales exemption for qualified physical transactions. A derivative may be designated as a normal purchase or sale if the intent is to physically receive or deliver the product for use or sale in the normal course of business. CenterPoint Energy has a Risk Oversight Committee composed of corporate and business segment officers that oversees commodity price, weather and credit risk activities, including CenterPoint Energy’s marketing, risk management services and hedging activities. The committee’s duties are to establish CenterPoint Energy’s commodity risk policies, allocate board-approved commercial risk limits, approve the use of new products and commodities, monitor positions and ensure compliance with CenterPoint Energy’s risk management policies, procedures and limits established by CenterPoint Energy’s board of directors. CenterPoint Energy’s policies prohibit the use of leveraged financial instruments. A leveraged financial instrument, for this purpose, is a transaction involving a derivative whose financial impact will be based on an amount other than the notional amount or volume of the instrument. (a) Non-Trading Activities Derivative Instruments. CenterPoint Energy enters into certain derivative instruments to manage physical commodity price risk and does not engage in proprietary or speculative commodity trading. These financial instruments do not qualify or are not designated as cash flow or fair value hedges. Weather Hedges. CenterPoint Energy has weather normalization or other rate mechanisms that mitigate the impact of weather on NGD in Arkansas, Louisiana, Mississippi, Minnesota and Oklahoma. NGD and electric operations in Texas do not have such mechanisms, although fixed customer charges are historically higher in Texas for NGD compared to CenterPoint Energy’s other jurisdictions. As a result, fluctuations from normal weather may have a positive or negative effect on NGD’s results in Texas and on Houston Electric’s results in its service territory. CenterPoint Energy has historically entered into heating-degree day swaps for certain NGD jurisdictions to mitigate the effect of fluctuations from normal weather on its results of operations and cash flows for the winter heating season, which contained a bilateral dollar cap of $16 million in 2014–2015. However, NGD did not enter into heating-degree day swaps for the 2015–2016 winter season as a result of NGD’s Minnesota division implementing a full decoupling pilot in July 2015. CenterPoint Energy also entered into weather hedges for the Houston Electric service territory, which contained a bilateral dollar cap of $8 million for the 2014–2015 winter season and a bilateral dollar cap of $7 million for the 2015–2016 winter season. The swaps are based on 10 -year normal weather. During the three months ended June 30, 2016 and 2015 , CenterPoint Energy recognized gains of $-0- and $1 million , respectively, related to these swaps. During the six months ended June 30, 2016 and 2015 , CenterPoint Energy recognized gains of $3 million and losses of $9 million , respectively, related to these swaps. Weather hedge gains and losses are included in revenues in the Condensed Statements of Consolidated Income. Hedging of Interest Expense for Future Debt Issuances. In April 2016, Houston Electric entered into forward interest rate agreements with several counterparties, having an aggregate notional amount of $150 million . These agreements were executed to hedge, in part, volatility in the 5-year U.S. treasury rate by reducing Houston Electric’s exposure to variability in cash flows related to interest payments of Houston Electric’s $300 million issuance of fixed rate debt in May 2016. These forward interest rate agreements were designated as cash flow hedges. Accordingly, the ineffective portion of unrealized gains and losses associated with the agreements was recorded in income and was immaterial. In June and July 2016, Houston Electric entered into forward interest rate agreements with several counterparties, having an aggregate notional amount of $300 million . These agreements were executed to hedge, in part, volatility in the 10-year U.S. treasury rate by reducing Houston Electric’s exposure to variability in cash flows relating to interest payments on a forecasted issuance of fixed rate debt in 2016. These forward interest rate agreements were designated as cash flow hedges. As of June 30, 2016 , a $2 million current non-trading derivative liability was recorded on the Condensed Consolidated Balance Sheets related to these agreements. Accordingly, the effective portion of unrealized gains and losses associated with the agreements would be recorded as a component of accumulated other comprehensive income and the ineffective portion would be recorded in income. (b) Derivative Fair Values and Income Statement Impacts The following tables present information about CenterPoint Energy’s derivative instruments and hedging activities. The first four tables provide a balance sheet overview of CenterPoint Energy’s Derivative Assets and Liabilities as of June 30, 2016 and December 31, 2015 , while the last table provides a breakdown of the related income statement impacts for the three and six months ended June 30, 2016 and 2015 . Fair Value of Derivative Instruments June 30, 2016 Total derivatives not designated as hedging instruments Balance Sheet Location Derivative Assets Fair Value Derivative Liabilities Fair Value (in millions) Natural gas derivatives (1) (2) (3) Current Assets: Non-trading derivative assets $ 49 $ 2 Natural gas derivatives (1) (2) (3) Other Assets: Non-trading derivative assets 28 6 Natural gas derivatives (1) (2) (3) Current Liabilities: Non-trading derivative liabilities 28 45 Natural gas derivatives (1) (2) (3) Other Liabilities: Non-trading derivative liabilities — 6 Indexed debt securities derivative Current Liabilities — 490 Total $ 105 $ 549 (1) The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 1,085 Bcf or a net 6 Bcf short position. Of the net short position, basis swaps constitute a net 136 Bcf long position. (2) Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $46 million asset, excluding a $2 million interest rate derivative liability, as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, offset by collateral netting of less than $1 million . (3) Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. Offsetting of Natural Gas Derivative Assets and Liabilities June 30, 2016 Gross Amounts Recognized (1) Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets (2) (in millions) Current Assets: Non-trading derivative assets $ 77 $ (30 ) $ 47 Other Assets: Non-trading derivative assets 28 (6 ) 22 Current Liabilities: Non-trading derivative liabilities (47 ) 30 (17 ) Other Liabilities: Non-trading derivative liabilities (12 ) 6 (6 ) Total $ 46 $ — $ 46 (1) Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. (2) The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. Fair Value of Derivative Instruments December 31, 2015 Total derivatives not designated as hedging instruments Balance Sheet Location Derivative Assets Fair Value Derivative Liabilities Fair Value (in millions) Natural gas derivatives (1) (2) (3) Current Assets: Non-trading derivative assets $ 90 $ 2 Natural gas derivatives (1) (2) (3) Other Assets: Non-trading derivative assets 36 — Natural gas derivatives (1) (2) (3) Current Liabilities: Non-trading derivative liabilities 10 60 Natural gas derivatives (1) (2) (3) Other Liabilities: Non-trading derivative liabilities 4 25 Indexed debt securities derivative Current Liabilities — 442 Total $ 140 $ 529 (1) The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 767 Bcf or a net 112 Bcf long position. Of the net long position, basis swaps constitute 133 Bcf. (2) Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $109 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, offset by collateral netting of $56 million . (3) Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. Offsetting of Natural Gas Derivative Assets and Liabilities December 31, 2015 Gross Amounts Recognized (1) Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets (2) (in millions) Current Assets: Non-trading derivative assets $ 100 $ (11 ) $ 89 Other Assets: Non-trading derivative assets 40 (4 ) 36 Current Liabilities: Non-trading derivative liabilities (62 ) 51 (11 ) Other Liabilities: Non-trading derivative liabilities (25 ) 20 (5 ) Total $ 53 $ 56 $ 109 (1) Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. (2) The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. Realized and unrealized gains and losses on natural gas derivatives are recognized in the Condensed Statements of Consolidated Income as revenue for retail sales derivative contracts and as natural gas expense for financial natural gas derivatives and non-retail related physical natural gas derivatives. Realized and unrealized gains and losses on indexed debt securities are recorded as Other Income (Expense) in the Condensed Statements of Consolidated Income. Income Statement Impact of Derivative Activity Three Months Ended June 30, Total derivatives not designated Income Statement Location 2016 2015 (in millions) Natural gas derivatives Gains (Losses) in Revenues $ (50 ) $ 7 Natural gas derivatives Gains (Losses) in Expenses: Natural Gas 59 1 Indexed debt securities derivative Gains (Losses) in Other Income (Expense) (130 ) (91 ) Total $ (121 ) $ (83 ) Income Statement Impact of Derivative Activity Six Months Ended June 30, Total derivatives not designated as hedging instruments Income Statement Location 2016 2015 (in millions) Natural gas derivatives Gains (Losses) in Revenues $ (30 ) $ 49 Natural gas derivatives Gains (Losses) in Expenses: Natural Gas 48 (42 ) Indexed debt securities derivative Gains (Losses) in Other Income (Expense) (186 ) (67 ) Total $ (168 ) $ (60 ) (c) Credit Risk Contingent Features CenterPoint Energy enters into financial derivative contracts containing material adverse change provisions. These provisions could require CenterPoint Energy to post additional collateral if the S&P or Moody’s credit ratings of CenterPoint Energy, Inc. or its subsidiaries are downgraded. The total fair value of the derivative instruments that contain credit risk contingent features that are in a net liability position as of both June 30, 2016 and December 31, 2015 was $3 million . CenterPoint Energy posted no assets as collateral towards derivative instruments that contain credit risk contingent features as of either June 30, 2016 or December 31, 2015 . If all derivative contracts (in a net liability position) containing credit risk contingent features were triggered as of both June 30, 2016 and December 31, 2015 , $2 million of additional assets would be required to be posted as collateral. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements [Text Block] | Fair Value Measurements Assets and liabilities that are recorded at fair value in the Condensed Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined below and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are exchange-traded derivatives and equity securities. Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value CenterPoint Energy’s Level 2 assets or liabilities. Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Unobservable inputs reflect CenterPoint Energy’s judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. CenterPoint Energy develops these inputs based on the best information available, including CenterPoint Energy’s own data. A market approach is utilized to value CenterPoint Energy’s Level 3 assets or liabilities. As of June 30, 2016 , CenterPoint Energy’s Level 3 assets and liabilities are comprised of physical forward contracts and options. Level 3 physical forward contracts are valued using a discounted cash flow model which includes illiquid forward price curve locations (ranging from $1.92 to $3.72 per one million British thermal units) as an unobservable input. Level 3 options are valued through Black-Scholes (including forward start) option models which include option volatilities (ranging from 0% to 85% ) as an unobservable input. CenterPoint Energy’s Level 3 derivative assets and liabilities consist of both long and short positions (forwards and options) and their fair value is sensitive to forward prices and volatilities. If forward prices decrease, CenterPoint Energy’s long forwards lose value whereas its short forwards gain in value. If volatility decreases, CenterPoint Energy’s long options lose value whereas its short options gain in value. CenterPoint Energy determines the appropriate level for each financial asset and liability on a quarterly basis and recognizes transfers between levels at the end of the reporting period. For the six months ended June 30, 2016 , there were no transfers between Level 1 and 2. CenterPoint Energy also recognizes purchases of Level 3 financial assets and liabilities at their fair market value at the end of the reporting period. The following tables present information about CenterPoint Energy’s assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 , and indicate the fair value hierarchy of the valuation techniques utilized by CenterPoint Energy to determine such fair value. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustments (1) Balance as of June 30, 2016 (in millions) Assets Corporate equities $ 739 $ — $ — $ — $ 739 Investments, including money market funds (2) 55 — — — 55 Natural gas derivatives (3) 7 77 21 (36 ) 69 Total assets $ 801 $ 77 $ 21 $ (36 ) $ 863 Liabilities Indexed debt securities derivative $ — $ 490 $ — $ — $ 490 Interest rate derivatives — 2 — — 2 Natural gas derivatives (3) 5 49 5 (36 ) 23 Total liabilities $ 5 $ 541 $ 5 $ (36 ) $ 515 (1) Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of less than $1 million posted with the same counterparties. (2) Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. (3) Natural gas derivatives include no material amounts related to physical forward transactions with Enable. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustments (1) Balance as of December 31, 2015 (in millions) Assets Corporate equities $ 807 $ — $ — $ — $ 807 Investments, including money market funds (2) 53 — — — 53 Natural gas derivatives (3) 4 115 21 (15 ) 125 Total assets $ 864 $ 115 $ 21 $ (15 ) $ 985 Liabilities Indexed debt securities derivative $ — $ 442 $ — $ — $ 442 Natural gas derivatives (3) 13 65 9 (71 ) 16 Total liabilities $ 13 $ 507 $ 9 $ (71 ) $ 458 (1) Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $56 million posted with the same counterparties. (2) Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. (3) Natural gas derivatives include no material amounts related to physical forward transactions with Enable. The following table presents additional information about assets or liabilities, including derivatives that are measured at fair value on a recurring basis for which CenterPoint Energy has utilized Level 3 inputs to determine fair value: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Derivative assets and liabilities, net Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Beginning balance $ 15 $ 13 $ 12 $ 17 Purchases 12 — 12 — Total gains — — 4 — Total settlements (11 ) (3 ) (16 ) (6 ) Transfers into Level 3 — — 5 — Transfers out of Level 3 — — (1 ) (1 ) Ending balance (1) $ 16 $ 10 $ 16 $ 10 The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 3 $ — $ 11 $ 2 (1) CenterPoint Energy did not have significant Level 3 sales during either of the three or six months ended June 30, 2016 or 2015 . Estimated Fair Value of Financial Instruments The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by the market price. These assets and liabilities, which are not measured at fair value in the Condensed Consolidated Balance Sheets but for which the fair value is disclosed, would be classified as Level 1 or Level 2 in the fair value hierarchy. June 30, 2016 December 31, 2015 Carrying Fair Carrying Amount Fair Value (in millions) Financial assets: Notes receivable – unconsolidated affiliate $ — $ — $ 363 $ 356 Financial liabilities: Long-term debt $ 8,432 $ 9,207 $ 8,585 $ 9,067 |
Unconsolidated Affiliates
Unconsolidated Affiliates | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Affiliates [Text Block] | Unconsolidated Affiliate On May 1, 2013 (the Formation Date) CERC Corp., OGE and ArcLight closed on the formation of Enable. CenterPoint Energy has the ability to significantly influence the operating and financial policies of Enable and, accordingly, accounts for its investment in Enable’s common and subordinated units using the equity method of accounting. CenterPoint Energy’s maximum exposure to loss related to Enable, a VIE in which CenterPoint Energy is not the primary beneficiary, is limited to its equity investment and preferred unit investment as presented in the Condensed Consolidated Balance Sheets as of June 30, 2016 , the guarantees discussed in Note 14 , and outstanding current accounts receivable from Enable. On February 18, 2016, CenterPoint Energy purchased in a Private Placement an aggregate of 14,520,000 Series A Preferred Units from Enable for a total purchase price of $363 million , which is accounted for as a cost method investment. During the three months ended June 30, 2016, CenterPoint Energy received a cash distribution of approximately $4 million for the partial period from February 18, 2016 through March 31, 2016 with respect to its investment in Series A Preferred Units. In connection with the Private Placement, Enable redeemed $363 million of notes owed to a wholly-owned subsidiary of CERC Corp., which bore interest at an annual rate of 2.10% to 2.45% . CenterPoint Energy recorded interest income of $-0- and $2 million during the three months ended June 30, 2016 and 2015 , respectively, and $1 million and $4 million during the six months ended June 30, 2016 and 2015 , respectively, and had interest receivable from Enable of $-0- and $4 million as of June 30, 2016 and December 31, 2015 , respectively, on its notes receivable. Effective on the Formation Date, CenterPoint Energy and Enable entered into the Transition Agreements. Under the Services Agreement, CenterPoint Energy agreed to provide certain support services to Enable such as accounting, legal, risk management and treasury functions for an initial term, which ended on April 30, 2016. CenterPoint Energy is providing certain services to Enable on a year-to-year basis. Enable may terminate (i) the entire Services Agreement with at least 90 days’ notice prior to the end of any extension term, or (ii) either any service provided under the Services Agreement, or the entire Services Agreement, at any time upon approval by its board of directors and with at least 180 days’ notice. CenterPoint Energy billed Enable for reimbursement of transition services of $2 million during both the three months ended June 30, 2016 and 2015 , and $5 million and $7 million during the six months ended June 30, 2016 and 2015 , respectively, under the Transition Agreements. Actual transition services costs are recorded net of reimbursements received from Enable. CenterPoint Energy had accounts receivable from Enable of $1 million and $3 million as of June 30, 2016 and December 31, 2015 , respectively, for amounts billed for transition services. CenterPoint Energy incurred natural gas expenses, including transportation and storage costs, of $24 million and $26 million during the three months ended June 30, 2016 and 2015 , respectively, and $57 million and $65 million during the six months ended June 30, 2016 and 2015 , respectively, for transactions with Enable. CenterPoint Energy had accounts payable to Enable of $8 million and $11 million as of June 30, 2016 and December 31, 2015 , respectively, from such transactions. As of June 30, 2016 , CenterPoint Energy held an approximate 55.4% limited partner interest in Enable, consisting of 94,151,707 common units and 139,704,916 subordinated units. As of June 30, 2016 , CenterPoint Energy and OGE each own a 50% management interest in the general partner of Enable and a 40% and 60% interest, respectively, in the incentive distribution rights held by the general partner. Additionally, as of June 30, 2016 , CenterPoint Energy held 14,520,000 Series A Preferred Units in Enable. CenterPoint Energy evaluates its equity method investments and cost method investments for impairment when factors indicate that a decrease in value of its investment has occurred and the carrying amount of its investment may not be recoverable. An impairment loss, based on the excess of the carrying value over the best estimate of fair value of the investment, is recognized in earnings when an impairment is deemed to be other than temporary. Considerable judgment is used in determining if an impairment loss is other than temporary and the amount of any impairment. As of June 30, 2016 , the carrying value of CenterPoint Energy’s equity method investment in Enable was $10.85 per unit, which includes limited partner common and subordinated units, a general partner interest and incentive distribution rights. On June 30, 2016 , Enable’s common unit price closed at $13.51 . As there were no identified events or changes in circumstances that may have a significant adverse effect on the fair value of CenterPoint Energy’s cost method investment in Enable’s Series A Preferred Units as of June 30, 2016 , and the investment’s fair value is not readily determinable, an estimate of the fair value of the cost method investment was not performed. Summarized unaudited consolidated income information for Enable is as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Operating revenues $ 529 $ 590 $ 1,038 $ 1,206 Cost of sales, excluding depreciation and amortization 254 277 449 569 Operating income 57 93 160 197 Net income attributable to Enable 35 77 121 168 Reconciliation of Equity in Earnings, net: CenterPoint Energy’s interest $ 19 $ 42 $ 67 $ 93 Basis difference amortization 12 1 24 2 CenterPoint Energy’s equity in earnings, net $ 31 $ 43 $ 91 $ 95 Summarized unaudited consolidated balance sheet information for Enable is as follows: June 30, December 31, 2015 (in millions) Current assets $ 349 $ 381 Non-current assets 10,851 10,857 Current liabilities 301 615 Non-current liabilities 3,150 3,092 Non-controlling interest 11 12 Preferred equity 362 — Enable partners’ equity 7,376 7,519 Reconciliation of Equity Method Investment in Enable: CenterPoint Energy’s ownership interest in Enable partners’ capital $ 4,084 $ 4,163 CenterPoint Energy’s basis difference (1,548 ) (1,569 ) CenterPoint Energy’s equity method investment in Enable $ 2,536 $ 2,594 Distributions Received from Unconsolidated Affiliate: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Enable $ 75 $ 73 $ 149 $ 145 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill [Text Block] | Goodwill Goodwill by reportable business segment as of December 31, 2015 and changes in the carrying amount of goodwill as of June 30, 2016 are as follows: December 31, 2015 Continuum Acquisition (1) June 30, (in millions) Natural Gas Distribution $ 746 $ — $ 746 Energy Services 83 (2) 21 104 Other Operations 11 — 11 Total $ 840 $ 21 $ 861 (1) See Note 3. (2) Amount presented is net of accumulated goodwill impairment charge of $252 million . |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2016 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock [Text Block] | Capital Stock CenterPoint Energy, Inc. has 1,020,000,000 authorized shares of capital stock, comprised of 1,000,000,000 shares of $0.01 par value common stock and 20,000,000 shares of $0.01 par value cumulative preferred stock. As of June 30, 2016 , 430,681,657 shares of CenterPoint Energy, Inc. common stock were issued and 430,681,491 shares were outstanding. As of December 31, 2015 , 430,262,869 shares of CenterPoint Energy, Inc. common stock were issued and 430,262,703 shares were outstanding. Outstanding common shares exclude 166 treasury shares as of both June 30, 2016 and December 31, 2015 . |
Indexed Debt Securities (ZENS)
Indexed Debt Securities (ZENS) and Securities Related to ZENS | 6 Months Ended |
Jun. 30, 2016 | |
Indexed Debt Securities [Text Block] | Indexed Debt Securities (ZENS) and Securities Related to ZENS (a) Investment in Securities Related to ZENS In 1995, CenterPoint Energy sold a cable television subsidiary to TW and received TW securities as partial consideration. A subsidiary of CenterPoint Energy now holds 7.1 million shares of TW Common, 0.9 million shares of Time Common and 0.9 million shares of Charter Common, which are classified as trading securities and are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. Unrealized gains and losses resulting from changes in the market value of the TW Securities are recorded in CenterPoint Energy’s Statements of Consolidated Income. (b) ZENS In September 1999, CenterPoint Energy issued ZENS having an original principal amount of $1 billion of which $828 million remain outstanding at June 30, 2016 . Each ZENS note was originally exchangeable at the holder’s option at any time for an amount of cash equal to 95% of the market value of the reference shares of TW Common attributable to such note. The number and identity of the reference shares attributable to each ZENS note are adjusted for certain corporate events. Prior to the merger described below, the reference shares for each ZENS note consisted of 0.5 share of TW Common, 0.125505 share of TWC Common and 0.0625 share of Time Common. On May 26, 2015, Charter announced that it had entered into a definitive merger agreement with TWC. On September 21, 2015, Charter shareholders approved the announced transaction with TWC. Pursuant to the merger agreement, upon closing of the merger, TWC Common would be exchanged for cash and Charter Common and as a result, reference shares for the ZENS would consist of Charter Common, TW Common and Time Common. The merger closed on May 18, 2016. CenterPoint Energy received $100 and 0.4891 shares of Charter Common for each share of TWC Common held, resulting in cash proceeds of $178 million and 872,531 shares of Charter Common. In accordance with the terms of the ZENS, CenterPoint Energy remitted $178 million to ZENS note holders in June 2016, which reduced contingent principal. As a result, CenterPoint Energy recorded the following: (in millions) Cash payment to ZENS note holders $ 178 Indexed debt – reduction (40 ) Indexed debt securities derivative – reduction (21 ) Loss on indexed debt securities $ 117 As of June 30, 2016 , the reference shares for each ZENS note consisted of 0.5 share of TW Common, 0.0625 share of Time Common and 0.061382 share of Charter Common, and the contingent principal balance was $519 million . |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Long-term Debt [Text Block] | Short-term Borrowings and Long-term Debt (a) Short-term Borrowings Inventory Financing . NGD has asset management agreements associated with its utility distribution service in Arkansas, north Louisiana and Oklahoma that extend through 2019. Pursuant to the provisions of the agreements, NGD sells natural gas and agrees to repurchase an equivalent amount of natural gas during the winter heating seasons at the same cost, plus a financing charge. These transactions are accounted for as a financing and had an associated principal obligation of $17 million and $40 million as of June 30, 2016 and December 31, 2015 , respectively. (b) Long-term Debt Debt Repayments. In May 2016, CERC retired approximately $325 million aggregate principal amount of its 6.15% senior notes at their maturity. The retirement of senior notes was financed by the issuance of commercial paper. Houston Electric General Mortgage Bonds. In May 2016, Houston Electric issued $300 million aggregate principal amount of 1.85% general mortgage bonds due 2021. The proceeds from the issuance of the bonds were used to repay short-term debt and for general corporate purposes. Credit Facilities. On March 4, 2016, CenterPoint Energy announced that it had refinanced its existing $2.1 billion revolving credit facilities, which would have expired in 2019, with new revolving credit facilities totaling an aggregate $2.5 billion . The credit agreements evidencing the new revolving credit facilities provide for five -year senior unsecured revolving credit facilities in amounts of $1.6 billion for CenterPoint Energy, $300 million for Houston Electric and $600 million for CERC Corp. As of June 30, 2016 and December 31, 2015 , CenterPoint Energy, Houston Electric and CERC Corp. had the following revolving credit facilities and utilization of such facilities: June 30, 2016 December 31, 2015 Size of Loans Letters Commercial Size of Loans Letters Commercial (in millions) CenterPoint Energy $ 1,600 $ — $ 6 $ 1,037 (1) $ 1,200 $ — $ 6 $ 716 (1) Houston Electric 300 — 4 — 300 200 (2) 4 — CERC Corp. 600 — 3 176 (3) 600 — 2 219 (3) Total $ 2,500 $ — $ 13 $ 1,213 $ 2,100 $ 200 $ 12 $ 935 (1) Weighted average interest rate was 0.82% and 0.79% as of June 30, 2016 and December 31, 2015 , respectively. (2) Weighted average interest rate was 1.637% as of December 31, 2015 . (3) Weighted average interest rate was 0.68% and 0.81% as of June 30, 2016 and December 31, 2015 , respectively. CenterPoint Energy’s $1.6 billion revolving credit facility, which is scheduled to terminate on March 3, 2021 , can be drawn at LIBOR plus 1.25% based on CenterPoint Energy’s current credit ratings. The revolving credit facility contains a financial covenant which limits CenterPoint Energy’s consolidated debt (with certain exceptions, including but not limited to Securitization Bonds) to an amount not to exceed 65% of CenterPoint Energy’s consolidated capitalization. As of June 30, 2016 , CenterPoint Energy’s debt (excluding Securitization Bonds) to capital ratio, as defined in its credit facility agreement, was 55.5% . The financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive twelve -month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification. Houston Electric’s $300 million revolving credit facility, which is scheduled to terminate on March 3, 2021 , can be drawn at LIBOR plus 1.125% based on Houston Electric’s current credit ratings. The revolving credit facility contains a financial covenant which limits Houston Electric’s consolidated debt (with certain exceptions, including but not limited to Securitization Bonds) to an amount not to exceed 65% of Houston Electric’s consolidated capitalization. As of June 30, 2016 , Houston Electric’s debt (excluding Securitization Bonds) to capital ratio, as defined in its credit facility agreement, was 52.7% . The financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and Houston Electric certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive twelve -month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date Houston Electric delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of Houston Electric’s certification or (iii) the revocation of such certification. CERC Corp.’s $600 million revolving credit facility, which is scheduled to terminate on March 3, 2021 , can be drawn at LIBOR plus 1.25% based on CERC Corp.’s current credit ratings. The revolving credit facility contains a financial covenant which limits CERC’s consolidated debt to an amount not to exceed 65% of CERC’s consolidated capitalization. As of June 30, 2016 , CERC’s debt to capital ratio, as defined in its credit facility agreement, was 30.7% . CenterPoint Energy, Houston Electric and CERC Corp. were in compliance with all financial covenants as of June 30, 2016 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Income Taxes The effective tax rate reported for the three months ended June 30, 2016 was 125% compared to 32% for the same period in 2015. The higher effective tax rate for the three months ended June 30, 2016 is due to a Louisiana state tax law change resulting in an increase to CenterPoint Energy’s deferred tax liability, the effect of which was compounded by lower earnings. The effective tax rate reported for the six months ended June 30, 2016 was 39% compared to 36% for the same period in 2015. The higher effective tax rate for the six months ended June 30, 2016 is due to a Louisiana state tax law change discussed above. CenterPoint Energy reported no uncertain tax liability as of June 30, 2016 and expects no significant change to the uncertain tax liability over the next twelve months. CenterPoint Energy’s consolidated federal income tax returns have been audited and settled through 2014. CenterPoint Energy is under examination by the IRS for 2015 and 2016. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies (a) Natural Gas Supply Commitments Natural gas supply commitments include natural gas contracts related to CenterPoint Energy’s Natural Gas Distribution and Energy Services business segments, which have various quantity requirements and durations, that are not classified as non-trading derivative assets and liabilities in CenterPoint Energy’s Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015 as these contracts meet an exception as “normal purchases contracts” or do not meet the definition of a derivative. Natural gas supply commitments also include natural gas transportation contracts that do not meet the definition of a derivative. As of June 30, 2016 , minimum payment obligations for natural gas supply commitments are approximately $190 million for the remaining six months in 2016, $473 million in 2017, $456 million in 2018, $270 million in 2019, $132 million in 2020 and $127 million after 2020. (b) Legal, Environmental and Other Matters Legal Matters Gas Market Manipulation Cases . CenterPoint Energy, Houston Electric or their predecessor, Reliant Energy, and certain of their former subsidiaries have been named as defendants in certain lawsuits described below. Under a master separation agreement between CenterPoint Energy and a former subsidiary, RRI, CenterPoint Energy and its subsidiaries are entitled to be indemnified by RRI and its successors for any losses, including certain attorneys’ fees and other costs, arising out of these lawsuits. In May 2009, RRI sold its Texas retail business to a subsidiary of NRG and RRI changed its name to RRI Energy, Inc. In December 2010, Mirant Corporation merged with and became a wholly-owned subsidiary of RRI, and RRI changed its name to GenOn. In December 2012, NRG acquired GenOn through a merger in which GenOn became a wholly-owned subsidiary of NRG. None of the sale of the retail business, the merger with Mirant Corporation, or the acquisition of GenOn by NRG alters RRI’s (now GenOn’s) contractual obligations to indemnify CenterPoint Energy and its subsidiaries, including Houston Electric, for certain liabilities, including their indemnification obligations regarding the gas market manipulation litigation, nor does it affect the terms of existing guarantee arrangements for certain GenOn gas transportation contracts discussed below. A large number of lawsuits were filed against numerous gas market participants in a number of federal and western state courts in connection with the operation of the natural gas markets in 2000–2002. CenterPoint Energy and its affiliates have since been released or dismissed from all such cases. CES, a subsidiary of CERC Corp., was a defendant in a case now pending in federal court in Nevada alleging a conspiracy to inflate Wisconsin natural gas prices in 2000–2002. On May 24, 2016, the district court granted CES’s motion for summary judgment, dismissing CES from the case. That ruling is subject to appeal. CenterPoint Energy and CES intend to continue vigorously defending against the plaintiffs’ claims. CenterPoint Energy does not expect the ultimate outcome of this matter to have a material adverse effect on its financial condition, results of operations or cash flows. Environmental Matters Manufactured Gas Plant Sites. CERC and its predecessors operated MGPs in the past. With respect to certain Minnesota MGP sites, CERC has completed state-ordered remediation and continues state-ordered monitoring and water treatment. As of June 30, 2016 , CERC had a recorded liability of $7 million for continued monitoring and any future remediation required by regulators in Minnesota. The estimated range of possible remediation costs for the sites for which CERC believes it may have responsibility was $4 million to $30 million based on remediation continuing for 30 to 50 years. The cost estimates are based on studies of a site or industry average costs for remediation of sites of similar size. The actual remediation costs will depend on the number of sites to be remediated, the participation of other PRPs, if any, and the remediation methods used. In addition to the Minnesota sites, the Environmental Protection Agency and other regulators have investigated MGP sites that were owned or operated by CERC or may have been owned by one of its former affiliates. CenterPoint Energy does not expect the ultimate outcome of these matters to have a material adverse effect on the financial condition, results of operations or cash flows of either CenterPoint Energy or CERC. Asbestos. Some facilities owned by CenterPoint Energy or its predecessors contain or have contained asbestos insulation and other asbestos-containing materials. CenterPoint Energy and its subsidiaries are from time to time named, along with numerous others, as defendants in lawsuits filed by a number of individuals who claim injury due to exposure to asbestos, and CenterPoint Energy anticipates that additional claims may be asserted in the future. Although their ultimate outcome cannot be predicted at this time, CenterPoint Energy does not expect these matters, either individually or in the aggregate, to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows. Other Environmental. From time to time CenterPoint Energy identifies the presence of environmental contaminants during its operations or on property where its predecessor companies have conducted operations. Other such sites involving contaminants may be identified in the future. CenterPoint Energy has and expects to continue to remediate identified sites consistent with its legal obligations. From time to time CenterPoint Energy has received notices from regulatory authorities or others regarding its status as a PRP in connection with sites found to require remediation due to the presence of environmental contaminants. In addition, CenterPoint Energy has been named from time to time as a defendant in litigation related to such sites. Although the ultimate outcome of such matters cannot be predicted at this time, CenterPoint Energy does not expect these matters, either individually or in the aggregate, to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows. Other Proceedings CenterPoint Energy is involved in other legal, environmental, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies regarding matters arising in the ordinary course of business. From time to time, CenterPoint Energy is also a defendant in legal proceedings with respect to claims brought by various plaintiffs against broad groups of participants in the energy industry. Some of these proceedings involve substantial amounts. CenterPoint Energy regularly analyzes current information and, as necessary, provides accruals for probable and reasonably estimable liabilities on the eventual disposition of these matters. CenterPoint Energy does not expect the disposition of these matters to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows. (c) Guarantees Prior to the distribution of CenterPoint Energy’s ownership in RRI to its shareholders, CERC had guaranteed certain contractual obligations of what became RRI’s trading subsidiary. When the companies separated, RRI agreed to secure CERC against obligations under the guarantees RRI had been unable to extinguish by the time of separation. Pursuant to such agreement, as amended in December 2007, RRI (now GenOn) agreed to provide to CERC cash or letters of credit as security against CERC’s obligations under its remaining guarantees for demand charges under certain gas transportation agreements if and to the extent changes in market conditions expose CERC to a risk of loss on those guarantees based on an annual calculation, with any required collateral to be posted each December. The undiscounted maximum potential payout of the demand charges under these transportation contracts, which will be in effect until 2018, was approximately $20 million as of June 30, 2016 . Based on market conditions in the fourth quarter of 2015 at the time the most recent annual calculation was made under the agreement, GenOn was not obligated to post any security. If GenOn should fail to perform the contractual obligations, CERC could have to honor its guarantee and, in such event, any collateral then provided as security may be insufficient to satisfy CERC’s obligations. In 2010, CenterPoint Energy provided a guarantee (the CenterPoint Midstream Guarantee) with respect to the performance of certain obligations of Enable under a long-term gas gathering and treating agreement with an indirect, wholly-owned subsidiary of Royal Dutch Shell plc. Under the terms of the omnibus agreement entered into in connection with the closing of the formation of Enable, Enable and CenterPoint Energy have agreed to use commercially reasonable efforts and cooperate with each other to terminate the CenterPoint Midstream Guarantee and to release CenterPoint Energy from such guarantee. As of June 30, 2016 , CenterPoint Energy had guaranteed Enable’s obligations up to an aggregate amount of $50 million under the CenterPoint Midstream Guarantee. CERC Corp. had also provided a guarantee of collection of $1.1 billion of Enable’s senior notes due 2019 and 2024. This guarantee was subordinated to all senior debt of CERC Corp. and was automatically released on May 1, 2016. The fair value of these guarantees is not material. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per share calculations: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions, except share and per share amounts) Net income (loss) $ (2 ) $ 77 $ 152 $ 208 Basic weighted average shares outstanding 430,653,000 430,235,000 430,530,000 430,096,000 Plus: Incremental shares from assumed conversions: Restricted stock — (1) 1,498,000 2,443,000 1,498,000 Diluted weighted average shares 430,653,000 431,733,000 432,973,000 431,594,000 Basic earnings (loss) per share Net income (loss) $ (0.01 ) $ 0.18 $ 0.35 $ 0.48 Diluted earnings (loss) per share Net income (loss) $ (0.01 ) $ 0.18 $ 0.35 $ 0.48 (1) 2,443,000 incremental shares from assumed conversions of restricted stock have not been included in the computation of diluted earnings (loss) per share for the three months months ended June 30, 2016, as their inclusion would be anti-dilutive. |
Reportable Business Segments
Reportable Business Segments | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Reportable Business Segments [Text Block] | Reportable Business Segments CenterPoint Energy’s determination of reportable business segments considers the strategic operating units under which CenterPoint Energy manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. CenterPoint Energy uses operating income as the measure of profit or loss for its business segments. CenterPoint Energy’s reportable business segments include the following: Electric Transmission & Distribution, Natural Gas Distribution, Energy Services, Midstream Investments and Other Operations. The electric transmission and distribution function is reported in the Electric Transmission & Distribution business segment. Natural Gas Distribution consists of intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers. Energy Services represents CenterPoint Energy’s non-rate regulated gas sales and services operations. Midstream Investments consists of CenterPoint Energy’s investment in Enable. Other Operations consists primarily of other corporate operations which support all of CenterPoint Energy’s business operations. Financial data for business segments is as follows: For the Three Months Ended June 30, 2016 Revenues from Net Operating (in millions) Electric Transmission & Distribution $ 763 (1) $ — $ 158 Natural Gas Distribution 414 7 20 Energy Services 393 4 — Midstream Investments (2) — — — Other Operations 4 — 4 Eliminations — (11 ) — Consolidated $ 1,574 $ — $ 182 For the Three Months Ended June 30, 2015 Revenues from Net Operating (in millions) Electric Transmission & Distribution $ 705 (1) $ — $ 158 Natural Gas Distribution 420 7 19 Energy Services 404 4 9 Midstream Investments (2) — — — Other Operations 3 — — Eliminations — (11 ) — Consolidated $ 1,532 $ — $ 186 For the Six Months Ended June 30, 2016 Revenues from External Customers Net Intersegment Revenues Operating Income Total Assets as of June 30, 2016 (in millions) Electric Transmission & Distribution $ 1,423 (1) $ — $ 241 $ 10,065 Natural Gas Distribution 1,302 14 180 5,585 Energy Services 825 11 6 973 Midstream Investments (2) — — — 2,536 Other Operations 8 — 5 2,771 (3) Eliminations — (25 ) — (918 ) Consolidated $ 3,558 $ — $ 432 $ 21,012 For the Six Months Ended June 30, 2015 Revenues from Net Operating Total Assets as of December 31, 2015 (in millions) Electric Transmission & Distribution $ 1,317 (1) $ — $ 254 $ 10,028 Natural Gas Distribution 1,605 15 165 5,657 Energy Services 1,036 22 22 857 Midstream Investments (2) — — — 2,594 Other Operations 7 — 1 2,879 (3) Eliminations — (37 ) — (725 ) Consolidated $ 3,965 $ — $ 442 $ 21,290 (1) Electric Transmission & Distribution revenues from major customers are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Affiliates of NRG $ 159 $ 172 $ 304 $ 356 Affiliates of Energy Future Holdings Corp. $ 50 $ 51 $ 95 $ 103 (2) Midstream Investments’ equity earnings are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Enable $ 31 $ 43 $ 91 $ 95 Midstream Investments’ total assets are as follows: June 30, 2016 December 31, 2015 (in millions) Enable $ 2,536 $ 2,594 (3) Included in total assets of Other Operations as of June 30, 2016 and December 31, 2015 are pension and other postemployment-related regulatory assets of $791 million and $814 million , respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On July 28, 2016 , CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2575 per share of common stock payable on September 9, 2016 , to shareholders of record as of the close of business on August 16, 2016 . On August 2, 2016 , Enable declared a quarterly cash distribution of $0.318 per unit on all of its outstanding common and subordinated units for the quarter ended June 30, 2016 . Accordingly, CERC Corp. expects to receive a cash distribution of approximately $74 million from Enable in the third quarter of 2016 to be made with respect to CERC Corp.’s investment in common and subordinated units in Enable for the second quarter of 2016. On August 2, 2016 , Enable declared a quarterly cash distribution of $0.625 per Series A Preferred Unit for the quarter ended June 30, 2016 . Accordingly, CenterPoint Energy expects to receive a cash distribution of approximately $9 million from Enable in the third quarter of 2016 to be made with respect to CenterPoint Energy’s investment in Series A Preferred Units of Enable for the second quarter of 2016. |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the total preliminary purchase price allocation and the fair value amounts recognized for the assets acquired and liabilities assumed related to the acquisition: (in millions) Total purchase price consideration $ 98 Receivables $ 75 Derivative assets 38 Property and equipment 1 Identifiable intangibles 36 Total assets acquired 150 Accounts payable 49 Derivative liabilities 24 Total liabilities assumed 73 Identifiable net assets acquired 77 Goodwill 21 Net assets acquired $ 98 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The estimated fair value of the identifiable intangible assets and related useful lives as included in the preliminary purchase price allocation include: Estimate Fair Value Estimate Useful Life (in millions) (in years) Customer relationships $ 32 15 Covenants not to compete 4 4 Total identifiable intangibles $ 36 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | CenterPoint Energy’s net periodic cost includes the following components relating to pension and postretirement benefits: Three Months Ended June 30, 2016 2015 Pension Postretirement Pension Postretirement (in millions) Service cost $ 9 $ — $ 10 $ — Interest cost 24 5 23 5 Expected return on plan assets (25 ) (1 ) (30 ) (1 ) Amortization of prior service cost (credit) 2 (1 ) 2 (1 ) Amortization of net loss 16 — 15 1 Curtailment gain (3) — (3 ) — — Net periodic cost $ 26 $ — $ 20 $ 4 Six Months Ended June 30, 2016 2015 Pension Postretirement Pension Postretirement (in millions) Service cost $ 18 $ 1 $ 20 $ 1 Interest cost 47 9 46 10 Expected return on plan assets (50 ) (3 ) (60 ) (3 ) Amortization of prior service cost (credit) 4 (1 ) 5 (1 ) Amortization of net loss 32 — 29 2 Settlement cost (2) — — 9 — Curtailment gain (3) — (3 ) — — Net periodic cost $ 51 $ 3 $ 49 $ 9 (1) Net periodic cost in these tables is before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes. (2) A one-time, non-cash settlement charge is required when lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of net periodic cost for that year. Due to the amount of lump sum payment distributions from the non-qualified pension plan during the six months ended June 30, 2015 , CenterPoint Energy recognized a non-cash settlement charge of $9 million . This charge is an acceleration of costs that would otherwise be recognized in future periods. (3) A curtailment gain or loss is required when the expected future services of a significant number of current employees are reduced or eliminated for the accrual of benefits. In May 2016, Houston Electric entered into a renegotiated collective bargaining agreement with the IBEW Local Union 66 that provides that for Houston Electric union employees covered under the agreement who retire on or after January 1, 2017, retiree medical and prescription drug coverage will be provided exclusively through the NECA/IBEW Family Medical Care Plan in exchange for the payment of monthly premiums as determined under the agreement. As a result, the accrued postretirement benefits related to such future Houston Electric union retirees were eliminated. Houston Electric recognized a curtailment gain of $3 million as an accelerated recognition of the prior service credit that would otherwise be recognized in future periods. |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | CenterPoint Energy’s changes in accumulated comprehensive loss related to defined benefit and postretirement plans are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Pension and Postretirement Plans Pension and Postretirement Plans (in millions) Beginning Balance $ (64 ) $ (83 ) $ (65 ) $ (85 ) Other comprehensive income (loss) before reclassifications (1) (4 ) — (4 ) — Amounts reclassified from accumulated other comprehensive loss: Actuarial losses (2) 1 2 3 6 Tax benefit (expense) 2 — 1 (2 ) Net current period other comprehensive income (loss) (1 ) 2 — 4 Ending Balance $ (65 ) $ (81 ) $ (65 ) $ (81 ) (1) Total other comprehensive income (loss) related to the remeasurement of the postretirement plan. (2) These accumulated other comprehensive components are included in the computation of net periodic cost. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments [Table Text Block] | The following tables present information about CenterPoint Energy’s derivative instruments and hedging activities. The first four tables provide a balance sheet overview of CenterPoint Energy’s Derivative Assets and Liabilities as of June 30, 2016 and December 31, 2015 , while the last table provides a breakdown of the related income statement impacts for the three and six months ended June 30, 2016 and 2015 . Fair Value of Derivative Instruments June 30, 2016 Total derivatives not designated as hedging instruments Balance Sheet Location Derivative Assets Fair Value Derivative Liabilities Fair Value (in millions) Natural gas derivatives (1) (2) (3) Current Assets: Non-trading derivative assets $ 49 $ 2 Natural gas derivatives (1) (2) (3) Other Assets: Non-trading derivative assets 28 6 Natural gas derivatives (1) (2) (3) Current Liabilities: Non-trading derivative liabilities 28 45 Natural gas derivatives (1) (2) (3) Other Liabilities: Non-trading derivative liabilities — 6 Indexed debt securities derivative Current Liabilities — 490 Total $ 105 $ 549 (1) The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 1,085 Bcf or a net 6 Bcf short position. Of the net short position, basis swaps constitute a net 136 Bcf long position. (2) Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $46 million asset, excluding a $2 million interest rate derivative liability, as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, offset by collateral netting of less than $1 million . (3) Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. Fair Value of Derivative Instruments December 31, 2015 Total derivatives not designated as hedging instruments Balance Sheet Location Derivative Assets Fair Value Derivative Liabilities Fair Value (in millions) Natural gas derivatives (1) (2) (3) Current Assets: Non-trading derivative assets $ 90 $ 2 Natural gas derivatives (1) (2) (3) Other Assets: Non-trading derivative assets 36 — Natural gas derivatives (1) (2) (3) Current Liabilities: Non-trading derivative liabilities 10 60 Natural gas derivatives (1) (2) (3) Other Liabilities: Non-trading derivative liabilities 4 25 Indexed debt securities derivative Current Liabilities — 442 Total $ 140 $ 529 (1) The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 767 Bcf or a net 112 Bcf long position. Of the net long position, basis swaps constitute 133 Bcf. (2) Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $109 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, offset by collateral netting of $56 million . (3) Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. |
Offsetting of Natural Gas Derivative Assets and Liabilities [Table Text Block] | Offsetting of Natural Gas Derivative Assets and Liabilities June 30, 2016 Gross Amounts Recognized (1) Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets (2) (in millions) Current Assets: Non-trading derivative assets $ 77 $ (30 ) $ 47 Other Assets: Non-trading derivative assets 28 (6 ) 22 Current Liabilities: Non-trading derivative liabilities (47 ) 30 (17 ) Other Liabilities: Non-trading derivative liabilities (12 ) 6 (6 ) Total $ 46 $ — $ 46 (1) Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. (2) The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. Offsetting of Natural Gas Derivative Assets and Liabilities December 31, 2015 Gross Amounts Recognized (1) Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets (2) (in millions) Current Assets: Non-trading derivative assets $ 100 $ (11 ) $ 89 Other Assets: Non-trading derivative assets 40 (4 ) 36 Current Liabilities: Non-trading derivative liabilities (62 ) 51 (11 ) Other Liabilities: Non-trading derivative liabilities (25 ) 20 (5 ) Total $ 53 $ 56 $ 109 (1) Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. (2) The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. |
Income Statement Impact of Derivative Activity [Table Text Block] | Realized and unrealized gains and losses on natural gas derivatives are recognized in the Condensed Statements of Consolidated Income as revenue for retail sales derivative contracts and as natural gas expense for financial natural gas derivatives and non-retail related physical natural gas derivatives. Realized and unrealized gains and losses on indexed debt securities are recorded as Other Income (Expense) in the Condensed Statements of Consolidated Income. Income Statement Impact of Derivative Activity Three Months Ended June 30, Total derivatives not designated Income Statement Location 2016 2015 (in millions) Natural gas derivatives Gains (Losses) in Revenues $ (50 ) $ 7 Natural gas derivatives Gains (Losses) in Expenses: Natural Gas 59 1 Indexed debt securities derivative Gains (Losses) in Other Income (Expense) (130 ) (91 ) Total $ (121 ) $ (83 ) Income Statement Impact of Derivative Activity Six Months Ended June 30, Total derivatives not designated as hedging instruments Income Statement Location 2016 2015 (in millions) Natural gas derivatives Gains (Losses) in Revenues $ (30 ) $ 49 Natural gas derivatives Gains (Losses) in Expenses: Natural Gas 48 (42 ) Indexed debt securities derivative Gains (Losses) in Other Income (Expense) (186 ) (67 ) Total $ (168 ) $ (60 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets measured on a recurring basis [Table Text Block] | The following tables present information about CenterPoint Energy’s assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 , and indicate the fair value hierarchy of the valuation techniques utilized by CenterPoint Energy to determine such fair value. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustments (1) Balance as of June 30, 2016 (in millions) Assets Corporate equities $ 739 $ — $ — $ — $ 739 Investments, including money market funds (2) 55 — — — 55 Natural gas derivatives (3) 7 77 21 (36 ) 69 Total assets $ 801 $ 77 $ 21 $ (36 ) $ 863 Liabilities Indexed debt securities derivative $ — $ 490 $ — $ — $ 490 Interest rate derivatives — 2 — — 2 Natural gas derivatives (3) 5 49 5 (36 ) 23 Total liabilities $ 5 $ 541 $ 5 $ (36 ) $ 515 (1) Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of less than $1 million posted with the same counterparties. (2) Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. (3) Natural gas derivatives include no material amounts related to physical forward transactions with Enable. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustments (1) Balance as of December 31, 2015 (in millions) Assets Corporate equities $ 807 $ — $ — $ — $ 807 Investments, including money market funds (2) 53 — — — 53 Natural gas derivatives (3) 4 115 21 (15 ) 125 Total assets $ 864 $ 115 $ 21 $ (15 ) $ 985 Liabilities Indexed debt securities derivative $ — $ 442 $ — $ — $ 442 Natural gas derivatives (3) 13 65 9 (71 ) 16 Total liabilities $ 13 $ 507 $ 9 $ (71 ) $ 458 (1) Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $56 million posted with the same counterparties. (2) Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. (3) Natural gas derivatives include no material amounts related to physical forward transactions with Enable. |
Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs [Table Text Block] | The following table presents additional information about assets or liabilities, including derivatives that are measured at fair value on a recurring basis for which CenterPoint Energy has utilized Level 3 inputs to determine fair value: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Derivative assets and liabilities, net Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Beginning balance $ 15 $ 13 $ 12 $ 17 Purchases 12 — 12 — Total gains — — 4 — Total settlements (11 ) (3 ) (16 ) (6 ) Transfers into Level 3 — — 5 — Transfers out of Level 3 — — (1 ) (1 ) Ending balance (1) $ 16 $ 10 $ 16 $ 10 The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 3 $ — $ 11 $ 2 (1) CenterPoint Energy did not have significant Level 3 sales during either of the three or six months ended June 30, 2016 or 2015 . |
Estimated fair value of financial instruments, debt instruments [Table Text Block] | Estimated Fair Value of Financial Instruments The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by the market price. These assets and liabilities, which are not measured at fair value in the Condensed Consolidated Balance Sheets but for which the fair value is disclosed, would be classified as Level 1 or Level 2 in the fair value hierarchy. June 30, 2016 December 31, 2015 Carrying Fair Carrying Amount Fair Value (in millions) Financial assets: Notes receivable – unconsolidated affiliate $ — $ — $ 363 $ 356 Financial liabilities: Long-term debt $ 8,432 $ 9,207 $ 8,585 $ 9,067 |
Unconsolidated Affiliates (Tabl
Unconsolidated Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | Summarized unaudited consolidated income information for Enable is as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Operating revenues $ 529 $ 590 $ 1,038 $ 1,206 Cost of sales, excluding depreciation and amortization 254 277 449 569 Operating income 57 93 160 197 Net income attributable to Enable 35 77 121 168 Reconciliation of Equity in Earnings, net: CenterPoint Energy’s interest $ 19 $ 42 $ 67 $ 93 Basis difference amortization 12 1 24 2 CenterPoint Energy’s equity in earnings, net $ 31 $ 43 $ 91 $ 95 Summarized unaudited consolidated balance sheet information for Enable is as follows: June 30, December 31, 2015 (in millions) Current assets $ 349 $ 381 Non-current assets 10,851 10,857 Current liabilities 301 615 Non-current liabilities 3,150 3,092 Non-controlling interest 11 12 Preferred equity 362 — Enable partners’ equity 7,376 7,519 Reconciliation of Equity Method Investment in Enable: CenterPoint Energy’s ownership interest in Enable partners’ capital $ 4,084 $ 4,163 CenterPoint Energy’s basis difference (1,548 ) (1,569 ) CenterPoint Energy’s equity method investment in Enable $ 2,536 $ 2,594 Distributions Received from Unconsolidated Affiliate: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Enable $ 75 $ 73 $ 149 $ 145 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Goodwill by reportable business segment as of December 31, 2015 and changes in the carrying amount of goodwill as of June 30, 2016 are as follows: December 31, 2015 Continuum Acquisition (1) June 30, (in millions) Natural Gas Distribution $ 746 $ — $ 746 Energy Services 83 (2) 21 104 Other Operations 11 — 11 Total $ 840 $ 21 $ 861 (1) See Note 3. (2) Amount presented is net of accumulated goodwill impairment charge of $252 million . |
Indexed Debt Securities (ZENS31
Indexed Debt Securities (ZENS) and Securities Related to ZENS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Indexed Debt Securities and Marketable Securities [Table Text Block] | On May 26, 2015, Charter announced that it had entered into a definitive merger agreement with TWC. On September 21, 2015, Charter shareholders approved the announced transaction with TWC. Pursuant to the merger agreement, upon closing of the merger, TWC Common would be exchanged for cash and Charter Common and as a result, reference shares for the ZENS would consist of Charter Common, TW Common and Time Common. The merger closed on May 18, 2016. CenterPoint Energy received $100 and 0.4891 shares of Charter Common for each share of TWC Common held, resulting in cash proceeds of $178 million and 872,531 shares of Charter Common. In accordance with the terms of the ZENS, CenterPoint Energy remitted $178 million to ZENS note holders in June 2016, which reduced contingent principal. As a result, CenterPoint Energy recorded the following: (in millions) Cash payment to ZENS note holders $ 178 Indexed debt – reduction (40 ) Indexed debt securities derivative – reduction (21 ) Loss on indexed debt securities $ 117 |
Short-Term Borrowings and Lon32
Short-Term Borrowings and Long-term Debt Credit Facilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | Credit Facilities. On March 4, 2016, CenterPoint Energy announced that it had refinanced its existing $2.1 billion revolving credit facilities, which would have expired in 2019, with new revolving credit facilities totaling an aggregate $2.5 billion . The credit agreements evidencing the new revolving credit facilities provide for five -year senior unsecured revolving credit facilities in amounts of $1.6 billion for CenterPoint Energy, $300 million for Houston Electric and $600 million for CERC Corp. As of June 30, 2016 and December 31, 2015 , CenterPoint Energy, Houston Electric and CERC Corp. had the following revolving credit facilities and utilization of such facilities: June 30, 2016 December 31, 2015 Size of Loans Letters Commercial Size of Loans Letters Commercial (in millions) CenterPoint Energy $ 1,600 $ — $ 6 $ 1,037 (1) $ 1,200 $ — $ 6 $ 716 (1) Houston Electric 300 — 4 — 300 200 (2) 4 — CERC Corp. 600 — 3 176 (3) 600 — 2 219 (3) Total $ 2,500 $ — $ 13 $ 1,213 $ 2,100 $ 200 $ 12 $ 935 (1) Weighted average interest rate was 0.82% and 0.79% as of June 30, 2016 and December 31, 2015 , respectively. (2) Weighted average interest rate was 1.637% as of December 31, 2015 . (3) Weighted average interest rate was 0.68% and 0.81% as of June 30, 2016 and December 31, 2015 , respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per share calculations: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions, except share and per share amounts) Net income (loss) $ (2 ) $ 77 $ 152 $ 208 Basic weighted average shares outstanding 430,653,000 430,235,000 430,530,000 430,096,000 Plus: Incremental shares from assumed conversions: Restricted stock — (1) 1,498,000 2,443,000 1,498,000 Diluted weighted average shares 430,653,000 431,733,000 432,973,000 431,594,000 Basic earnings (loss) per share Net income (loss) $ (0.01 ) $ 0.18 $ 0.35 $ 0.48 Diluted earnings (loss) per share Net income (loss) $ (0.01 ) $ 0.18 $ 0.35 $ 0.48 (1) 2,443,000 incremental shares from assumed conversions of restricted stock have not been included in the computation of diluted earnings (loss) per share for the three months months ended June 30, 2016, as their inclusion would be anti-dilutive. |
Reportable Business Segments (T
Reportable Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial data for business segments is as follows: For the Three Months Ended June 30, 2016 Revenues from Net Operating (in millions) Electric Transmission & Distribution $ 763 (1) $ — $ 158 Natural Gas Distribution 414 7 20 Energy Services 393 4 — Midstream Investments (2) — — — Other Operations 4 — 4 Eliminations — (11 ) — Consolidated $ 1,574 $ — $ 182 For the Three Months Ended June 30, 2015 Revenues from Net Operating (in millions) Electric Transmission & Distribution $ 705 (1) $ — $ 158 Natural Gas Distribution 420 7 19 Energy Services 404 4 9 Midstream Investments (2) — — — Other Operations 3 — — Eliminations — (11 ) — Consolidated $ 1,532 $ — $ 186 For the Six Months Ended June 30, 2016 Revenues from External Customers Net Intersegment Revenues Operating Income Total Assets as of June 30, 2016 (in millions) Electric Transmission & Distribution $ 1,423 (1) $ — $ 241 $ 10,065 Natural Gas Distribution 1,302 14 180 5,585 Energy Services 825 11 6 973 Midstream Investments (2) — — — 2,536 Other Operations 8 — 5 2,771 (3) Eliminations — (25 ) — (918 ) Consolidated $ 3,558 $ — $ 432 $ 21,012 For the Six Months Ended June 30, 2015 Revenues from Net Operating Total Assets as of December 31, 2015 (in millions) Electric Transmission & Distribution $ 1,317 (1) $ — $ 254 $ 10,028 Natural Gas Distribution 1,605 15 165 5,657 Energy Services 1,036 22 22 857 Midstream Investments (2) — — — 2,594 Other Operations 7 — 1 2,879 (3) Eliminations — (37 ) — (725 ) Consolidated $ 3,965 $ — $ 442 $ 21,290 (1) Electric Transmission & Distribution revenues from major customers are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Affiliates of NRG $ 159 $ 172 $ 304 $ 356 Affiliates of Energy Future Holdings Corp. $ 50 $ 51 $ 95 $ 103 (2) Midstream Investments’ equity earnings are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Enable $ 31 $ 43 $ 91 $ 95 Midstream Investments’ total assets are as follows: June 30, 2016 December 31, 2015 (in millions) Enable $ 2,536 $ 2,594 (3) Included in total assets of Other Operations as of June 30, 2016 and December 31, 2015 are pension and other postemployment-related regulatory assets of $791 million and $814 million , respectively. |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Electric Transmission & Distribution revenues from major customers are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Affiliates of NRG $ 159 $ 172 $ 304 $ 356 Affiliates of Energy Future Holdings Corp. $ 50 $ 51 $ 95 $ 103 |
Midstream Investments [Table Text Block] | Midstream Investments’ equity earnings are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions) Enable $ 31 $ 43 $ 91 $ 95 Midstream Investments’ total assets are as follows: June 30, 2016 December 31, 2015 (in millions) Enable $ 2,536 $ 2,594 |
Background and Basis of Prese35
Background and Basis of Presentation (Details) | Jun. 30, 2016 |
Enable Midstream Partners [Member] | |
Equity Method Investment, Ownership Percentage | 55.40% |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Unamortized Debt Issuance Expense | $ 43 | $ 44 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Millions | Apr. 01, 2016 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Total Acquisition Cost | $ 98 | $ 0 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Total Acquisition Cost | 98 | $ 0 | |||
Goodwill | $ 861 | 861 | $ 840 | ||
Continuum Energy Services [Member] | |||||
Business Acquisition [Line Items] | |||||
Total Acquisition Cost | $ 98 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Total Acquisition Cost | 98 | ||||
Receivables | 75 | ||||
Derivative assets | 38 | ||||
Property and equipment | 1 | ||||
Identifiable intangibles | 36 | ||||
Total assets acquired | 150 | ||||
Accounts payable | 49 | ||||
Derivative liabilities | 24 | ||||
Total liabilities assumed | 73 | ||||
Identifiable net assets acquired | 77 | ||||
Goodwill | 21 | ||||
Net assets acquired | 98 | ||||
Amortization of Intangible Assets | 1 | 1 | |||
Expected Amortization Of Intangible Assets in 2016 | 2 | ||||
Revenue of Acquiree since Acquisition Date | $ 108 | $ 108 | |||
Operating Income of Acquiree since Acquisition Date | less than $1 million | less than $1 million | |||
Continuum Energy Services [Member] | Customer Relationships [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Finite-lived Identifiable Intangible Assets Acquired, Fair Value | $ 32 | ||||
Finite-lived Identifiable Intangible Assets Acquired, Estimated Useful Life | 15 years | ||||
Continuum Energy Services [Member] | Noncompete Agreements [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Finite-lived Identifiable Intangible Assets Acquired, Fair Value | $ 4 | ||||
Finite-lived Identifiable Intangible Assets Acquired, Estimated Useful Life | 4 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Defined Benefit Plan, Change in Accumulated Comprehensive Loss [Roll Forward] | |||||
Beginning Balance | $ (64) | $ (83) | $ (65) | $ (85) | |
Other comprehensive income (loss) before reclassifications (1) | [1] | (4) | 0 | (4) | 0 |
Amounts reclassified from accumulated other comprehensive loss: | |||||
Actuarial losses (2) | [2] | 1 | 2 | 3 | 6 |
Tax benefit (expense) | 2 | 0 | 1 | (2) | |
Net current period other comprehensive income (loss) | (1) | 2 | 0 | 4 | |
Ending Balance | (65) | (81) | (65) | (81) | |
Pension Plans, Defined Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | [3] | 9 | 10 | 18 | 20 |
Interest cost | [3] | 24 | 23 | 47 | 46 |
Expected return on plan assets | [3] | (25) | (30) | (50) | (60) |
Amortization of prior service cost (credit) | [3] | 2 | 2 | 4 | 5 |
Amortization of net loss | [3] | 16 | 15 | 32 | 29 |
Settlement cost (2) | [3],[4] | 0 | 9 | ||
Curtailment gain (3) | [3],[5] | 0 | 0 | 0 | 0 |
Net periodic cost | [3] | 26 | 20 | 51 | 49 |
Total contributions expected in current year | 8 | ||||
Total contributions to the plans during the period | 2 | 5 | |||
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | [3] | 0 | 0 | 1 | 1 |
Interest cost | [3] | 5 | 5 | 9 | 10 |
Expected return on plan assets | [3] | (1) | (1) | (3) | (3) |
Amortization of prior service cost (credit) | [3] | (1) | (1) | (1) | (1) |
Amortization of net loss | [3] | 0 | 1 | 0 | 2 |
Settlement cost (2) | [3],[4] | 0 | 0 | ||
Curtailment gain (3) | [3],[5] | (3) | 0 | (3) | 0 |
Net periodic cost | [3] | 0 | $ 4 | 3 | $ 9 |
Total contributions expected in current year | 16 | ||||
Total contributions to the plans during the period | $ 4 | $ 8 | |||
[1] | Total other comprehensive income (loss) related to the remeasurement of the postretirement plan. | ||||
[2] | These accumulated other comprehensive components are included in the computation of net periodic cost. | ||||
[3] | Net periodic cost in these tables is before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes. | ||||
[4] | A one-time, non-cash settlement charge is required when lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of net periodic cost for that year. Due to the amount of lump sum payment distributions from the non-qualified pension plan during the six months ended June 30, 2015, CenterPoint Energy recognized a non-cash settlement charge of $9 million. This charge is an acceleration of costs that would otherwise be recognized in future periods. | ||||
[5] | A curtailment gain or loss is required when the expected future services of a significant number of current employees are reduced or eliminated for the accrual of benefits. In May 2016, Houston Electric entered into a renegotiated collective bargaining agreement with the IBEW Local Union 66 that provides that for Houston Electric union employees covered under the agreement who retire on or after January 1, 2017, retiree medical and prescription drug coverage will be provided exclusively through the NECA/IBEW Family Medical Care Plan in exchange for the payment of monthly premiums as determined under the agreement. As a result, the accrued postretirement benefits related to such future Houston Electric union retirees were eliminated. Houston Electric recognized a curtailment gain of $3 million as an accelerated recognition of the prior service credit that would otherwise be recognized in future periods. |
Regulatory Accounting (Details)
Regulatory Accounting (Details) - CenterPoint Houston [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Amount of allowed equity return on the true-up balance that has not been recognized | $ 363 | $ 363 | ||
Amount of allowed equity return on the true-up balance that was recognized in the period | $ 17 | $ 12 | $ 30 | $ 21 |
Derivative Instruments Derivati
Derivative Instruments Derivatives and hedging (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | May 13, 2016 | |
Derivatives, Fair Value [Line Items] | |||||
Weather Hedges Term | 10 years | ||||
Gains (Losses) in Revenue [Member] | Weather Hedge Swaps [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 1 | $ 3 | $ (9) | |
2014 To 2015 [Member] | Electric Transmission and Distribution [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Weather Hedge, Bilateral Cap Amount | 8 | ||||
2014 To 2015 [Member] | Natural Gas Distribution [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Weather Hedge, Bilateral Cap Amount | 16 | ||||
2015 To 2016 [Member] | Electric Transmission and Distribution [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Weather Hedge, Bilateral Cap Amount | 7 | ||||
CenterPoint Houston [Member] | Bonds General Mortgage Due 2021 [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Debt Instrument, Face Amount | $ 300 | ||||
April [Member] | Treasury Lock [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Aggregate Notional Amount | 150 | 150 | |||
June and July [Member] | Treasury Lock [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Aggregate Notional Amount | 300 | 300 | |||
Current Liabilities [Member] | Interest Rate Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest Rate Derivative Liabilities, at Fair Value | $ 2 | $ 2 |
Derivative Instruments Deriva41
Derivative Instruments Derivative Fair Values (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Bcf | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)Bcf | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative Asset, Fair Value | $ 105,000,000 | $ 105,000,000 | $ 140,000,000 | ||||||
Indexed debt securities derivative | 549,000,000 | 549,000,000 | 529,000,000 | ||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (121,000,000) | $ (83,000,000) | (168,000,000) | $ (60,000,000) | |||||
Derivative, Fair Value, Net [Abstract] | |||||||||
Total fair value of the derivative instruments that contain credit risk contingent features that are in a net liability position | 3,000,000 | 3,000,000 | 3,000,000 | ||||||
The aggregate fair value of assets already posted as collateral | 0 | 0 | 0 | ||||||
Credit Risk Contingent Features assets | 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||
Natural gas derivatives [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 1,085 | 767 | |||||||
Derivative, Fair Value, Net [Abstract] | |||||||||
Gross Amounts Recognized | [1] | 46,000,000 | $ 46,000,000 | $ 53,000,000 | |||||
Gross amounts offset, Net | 0 | 0 | 56,000,000 | ||||||
Net Amount Presented in the Consolidated Balance Sheets | [2] | 46,000,000 | 46,000,000 | 109,000,000 | |||||
Collateral Netting | 1,000,000 | 1,000,000 | 56,000,000 | ||||||
Natural gas derivatives [Member] | Gains (Losses) in Revenue [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (50,000,000) | 7,000,000 | (30,000,000) | 49,000,000 | |||||
Natural gas derivatives [Member] | Gains (Losses) in Expense: Natural Gas [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 59,000,000 | 1,000,000 | 48,000,000 | (42,000,000) | |||||
Natural gas derivatives [Member] | Current Assets [Member] | |||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||
Gross Amounts Recognized | [1] | 77,000,000 | 77,000,000 | 100,000,000 | |||||
Gross amounts offset | (30,000,000) | (30,000,000) | (11,000,000) | ||||||
Derivative Asset | [2] | 47,000,000 | 47,000,000 | 89,000,000 | |||||
Natural gas derivatives [Member] | Other Assets [Member] | |||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||
Gross Amounts Recognized | [1] | 28,000,000 | 28,000,000 | 40,000,000 | |||||
Gross amounts offset | (6,000,000) | (6,000,000) | (4,000,000) | ||||||
Derivative Asset | [2] | 22,000,000 | 22,000,000 | 36,000,000 | |||||
Natural gas derivatives [Member] | Current Liabilities [Member] | |||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||
Gross Amounts Recognized | [1] | (47,000,000) | (47,000,000) | (62,000,000) | |||||
Gross amounts offset | 30,000,000 | 30,000,000 | 51,000,000 | ||||||
Derivative Liability | [2] | (17,000,000) | (17,000,000) | (11,000,000) | |||||
Natural gas derivatives [Member] | Other Liabilities [Member] | |||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||
Gross Amounts Recognized | [1] | (12,000,000) | (12,000,000) | (25,000,000) | |||||
Gross amounts offset | 6,000,000 | 6,000,000 | 20,000,000 | ||||||
Derivative Liability | [2] | (6,000,000) | (6,000,000) | (5,000,000) | |||||
Interest Rate Contract [Member] | Current Liabilities [Member] | |||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||
Interest Rate Derivative Liabilities, at Fair Value | 2,000,000 | 2,000,000 | |||||||
Indexed debt securities derivative | Gains (losses) in Other Income (Expense) [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (130,000,000) | $ (91,000,000) | (186,000,000) | $ (67,000,000) | |||||
Not Designated as Hedging Instrument [Member] | Natural gas derivatives [Member] | Current Assets [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative Asset, Fair Value | [3] | 49,000,000 | [4],[5] | 49,000,000 | [4],[5] | 90,000,000 | [6],[7] | ||
Indexed debt securities derivative | [3] | 2,000,000 | [4],[5] | 2,000,000 | [4],[5] | 2,000,000 | [6],[7] | ||
Not Designated as Hedging Instrument [Member] | Natural gas derivatives [Member] | Other Assets [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative Asset, Fair Value | [3] | 28,000,000 | [4],[5] | 28,000,000 | [4],[5] | 36,000,000 | [6],[7] | ||
Indexed debt securities derivative | [3] | 6,000,000 | [4],[5] | 6,000,000 | [4],[5] | 0 | [6],[7] | ||
Not Designated as Hedging Instrument [Member] | Natural gas derivatives [Member] | Current Liabilities [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative Asset, Fair Value | [3] | 28,000,000 | [4],[5] | 28,000,000 | [4],[5] | 10,000,000 | [6],[7] | ||
Indexed debt securities derivative | [3] | 45,000,000 | [4],[5] | 45,000,000 | [4],[5] | 60,000,000 | [6],[7] | ||
Not Designated as Hedging Instrument [Member] | Natural gas derivatives [Member] | Other Liabilities [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative Asset, Fair Value | [3] | 0 | [4],[5] | 0 | [4],[5] | 4,000,000 | [6],[7] | ||
Indexed debt securities derivative | [3] | 6,000,000 | [4],[5] | 6,000,000 | [4],[5] | 25,000,000 | [6],[7] | ||
Not Designated as Hedging Instrument [Member] | Indexed debt securities derivative | Current Liabilities [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative Asset, Fair Value | 0 | 0 | 0 | ||||||
Indexed debt securities derivative | $ 490,000,000 | $ 490,000,000 | $ 442,000,000 | ||||||
Short [Member] | Natural gas derivatives [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 6 | ||||||||
Long [Member] | Natural gas derivatives [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 112 | ||||||||
Swap [Member] | Long [Member] | Natural gas derivatives [Member] | |||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 136 | 133 | |||||||
[1] | Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. | ||||||||
[2] | The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. | ||||||||
[3] | Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. | ||||||||
[4] | Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $46 million asset, excluding a $2 million interest rate derivative liability, as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, offset by collateral netting of less than $1 million. | ||||||||
[5] | The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 1,085 Bcf or a net 6 Bcf short position. Of the net short position, basis swaps constitute a net 136 Bcf long position. | ||||||||
[6] | Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $109 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, offset by collateral netting of $56 million. | ||||||||
[7] | The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 767 Bcf or a net 112 Bcf long position. Of the net long position, basis swaps constitute 133 Bcf. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 | |||||||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | |||||||
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | |||||||
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | |||||||
Assets | |||||||||
Natural gas derivatives, netting adjustment | (36,000,000) | [1] | (36,000,000) | [1] | $ (15,000,000) | [2] | |||
Total assets | 863,000,000 | 863,000,000 | 985,000,000 | ||||||
Liabilities | |||||||||
Natural gas derivatives, netting adjustment | (36,000,000) | [1] | (36,000,000) | [1] | (71,000,000) | [2] | |||
Total liabilities | 515,000,000 | 515,000,000 | 458,000,000 | ||||||
Cash collateral posted with counterparties | 1,000,000 | 1,000,000 | 56,000,000 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Beginning balance | 15,000,000 | $ 13,000,000 | 12,000,000 | $ 17,000,000 | |||||
Purchases | 12,000,000 | 0 | 12,000,000 | 0 | |||||
Total gains | 0 | 0 | 4,000,000 | 0 | |||||
Total settlements | (11,000,000) | (3,000,000) | (16,000,000) | (6,000,000) | |||||
Transfers into Level 3 | 0 | 0 | 5,000,000 | 0 | |||||
Transfers out of Level 3 | 0 | 0 | (1,000,000) | (1,000,000) | |||||
Ending balance (1) | [3] | 16,000,000 | 10,000,000 | 16,000,000 | 10,000,000 | ||||
The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | 3,000,000 | $ 0 | 11,000,000 | $ 2,000,000 | |||||
Fair Value, Inputs, Level 1 [Member] | |||||||||
Assets | |||||||||
Total assets | 801,000,000 | 801,000,000 | 864,000,000 | ||||||
Liabilities | |||||||||
Total liabilities | 5,000,000 | 5,000,000 | 13,000,000 | ||||||
Fair Value, Inputs, Level 2 [Member] | |||||||||
Assets | |||||||||
Total assets | 77,000,000 | 77,000,000 | 115,000,000 | ||||||
Liabilities | |||||||||
Total liabilities | 541,000,000 | 541,000,000 | 507,000,000 | ||||||
Fair Value, Inputs, Level 3 [Member] | |||||||||
Assets | |||||||||
Total assets | 21,000,000 | 21,000,000 | 21,000,000 | ||||||
Liabilities | |||||||||
Total liabilities | 5,000,000 | $ 5,000,000 | 9,000,000 | ||||||
Forward Contracts [Member] | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair Value Inputs, Price Per MMBtu | 1.92 | ||||||||
Forward Contracts [Member] | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair Value Inputs, Price Per MMBtu | 3.72 | ||||||||
Options Held [Member] | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair Value Assumptions, Expected Volatility Rate | 0.00% | ||||||||
Options Held [Member] | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair Value Assumptions, Expected Volatility Rate | 85.00% | ||||||||
Estimate of Fair Value Measurement [Member] | |||||||||
Estimated Fair Value of Financial Instruments | |||||||||
Notes receivable – unconsolidated affiliate | 0 | $ 0 | 356,000,000 | ||||||
Long-term debt | 9,207,000,000 | 9,207,000,000 | 9,067,000,000 | ||||||
Reported Value Measurement [Member] | |||||||||
Estimated Fair Value of Financial Instruments | |||||||||
Notes receivable – unconsolidated affiliate | 0 | 0 | 363,000,000 | ||||||
Long-term debt | 8,432,000,000 | 8,432,000,000 | 8,585,000,000 | ||||||
Fair Value, Measurements, Recurring [Member] | |||||||||
Assets | |||||||||
Corporate equities | 739,000,000 | 739,000,000 | 807,000,000 | ||||||
Investments, including money market funds (2) | [4] | 55,000,000 | 55,000,000 | 53,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||
Assets | |||||||||
Corporate equities | 739,000,000 | 739,000,000 | 807,000,000 | ||||||
Investments, including money market funds (2) | [4] | 55,000,000 | 55,000,000 | 53,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||
Assets | |||||||||
Corporate equities | 0 | 0 | 0 | ||||||
Investments, including money market funds (2) | [4] | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Assets | |||||||||
Corporate equities | 0 | 0 | 0 | ||||||
Investments, including money market funds (2) | [4] | 0 | 0 | 0 | |||||
Fair Value, Measurements, Recurring [Member] | Natural gas derivatives [Member] | |||||||||
Assets | |||||||||
Natural gas derivatives, netting adjustment | [5] | (36,000,000) | [1] | (36,000,000) | [1] | (15,000,000) | [2] | ||
Derivative Asset | [5] | 69,000,000 | 69,000,000 | 125,000,000 | |||||
Liabilities | |||||||||
Natural gas derivatives, netting adjustment | [5] | (36,000,000) | [1] | (36,000,000) | [1] | (71,000,000) | [2] | ||
Derivative Liabilities | [5] | 23,000,000 | 23,000,000 | 16,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Natural gas derivatives [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||
Assets | |||||||||
Natural gas derivatives (3) | [5] | 7,000,000 | 7,000,000 | 4,000,000 | |||||
Liabilities | |||||||||
Derivative Liability, Fair Value | [5] | 5,000,000 | 5,000,000 | 13,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Natural gas derivatives [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||
Assets | |||||||||
Natural gas derivatives (3) | [5] | 77,000,000 | 77,000,000 | 115,000,000 | |||||
Liabilities | |||||||||
Derivative Liability, Fair Value | [5] | 49,000,000 | 49,000,000 | 65,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Natural gas derivatives [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Assets | |||||||||
Natural gas derivatives (3) | [5] | 21,000,000 | 21,000,000 | 21,000,000 | |||||
Liabilities | |||||||||
Derivative Liability, Fair Value | [5] | 5,000,000 | 5,000,000 | 9,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | IDS Derivative [Member] | |||||||||
Liabilities | |||||||||
Natural gas derivatives, netting adjustment | 0 | [1] | 0 | [1] | 0 | [2] | |||
Derivative Liabilities | 490,000,000 | 490,000,000 | 442,000,000 | ||||||
Fair Value, Measurements, Recurring [Member] | IDS Derivative [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||
Liabilities | |||||||||
Derivative Liability, Fair Value | 0 | 0 | 0 | ||||||
Fair Value, Measurements, Recurring [Member] | IDS Derivative [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||
Liabilities | |||||||||
Derivative Liability, Fair Value | 490,000,000 | 490,000,000 | 442,000,000 | ||||||
Fair Value, Measurements, Recurring [Member] | IDS Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Liabilities | |||||||||
Derivative Liability, Fair Value | 0 | 0 | $ 0 | ||||||
Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | |||||||||
Liabilities | |||||||||
Natural gas derivatives, netting adjustment | [1] | 0 | 0 | ||||||
Interest Rate Derivative Liabilities, at Fair Value | 2,000,000 | 2,000,000 | |||||||
Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||
Liabilities | |||||||||
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||
Liabilities | |||||||||
Interest Rate Derivative Liabilities, at Fair Value | 2,000,000 | 2,000,000 | |||||||
Fair Value, Measurements, Recurring [Member] | Interest Rate Contract [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Liabilities | |||||||||
Interest Rate Derivative Liabilities, at Fair Value | $ 0 | $ 0 | |||||||
[1] | Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of less than $1 million posted with the same counterparties. | ||||||||
[2] | Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $56 million posted with the same counterparties. | ||||||||
[3] | CenterPoint Energy did not have significant Level 3 sales during either of the three or six months ended June 30, 2016 or 2015. | ||||||||
[4] | Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. | ||||||||
[5] | Natural gas derivatives include no material amounts related to physical forward transactions with Enable. |
Unconsolidated Affiliates Descr
Unconsolidated Affiliates Description (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 18, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Preferred units – unconsolidated affiliate | $ 363 | $ 363 | $ 0 | ||||
Service Agreement Notice For Termination At Term End, Number of Days | 90 days | ||||||
Service Agreement Notice For Termination At Will, Number Of Days | 180 days | ||||||
Enable Midstream Partners [Member] | |||||||
Equity Method Investment, Ownership Percentage | 55.40% | 55.40% | |||||
Equity Method Investment, Carrying Value Per Unit | $ 10.85 | $ 10.85 | |||||
Enable Midstream Partners [Member] | |||||||
Share Price | $ 13.51 | $ 13.51 | |||||
Series A Preferred Stock [Member] | Enable Midstream Partners [Member] | |||||||
Purchase of Preferred Units, Price Per Unit | 14,520,000 | ||||||
Preferred units – unconsolidated affiliate | $ 363 | $ 363 | |||||
Purchase of Preferred Units, Number of Units Purchased | 14,520,000 | 14,520,000 | |||||
Redeemable Preferred Stock [Member] | Enable Midstream Partners [Member] | |||||||
Proceeds from Cost Method Investment, Dividends or Distributions | $ 4 | ||||||
Common Stock [Member] | Enable Midstream Partners [Member] | |||||||
Equity Method Investment, Ownership, Shares | 94,151,707 | 94,151,707 | |||||
Subordinated Units [Member] | Enable Midstream Partners [Member] | |||||||
Equity Method Investment, Ownership, Shares | 139,704,916 | 139,704,916 | |||||
Enable Midstream Partners [Member] | |||||||
Extinguishment of Debt, Amount | $ 363 | ||||||
Interest Income (Expense), Net | $ 0 | $ 2 | $ 1 | $ 4 | |||
Interest Receivable | 0 | 0 | 4 | ||||
Transitional Service [Member] | Enable Midstream Partners [Member] | |||||||
Reimbursement for Transitional Services | 2 | 2 | 5 | 7 | |||
Transitional Service cost receivable | 1 | 1 | 3 | ||||
Natural Gas Expenses [Member] | Enable Midstream Partners [Member] | |||||||
Cost of natural gas purchases, affiliates | 24 | $ 26 | 57 | $ 65 | |||
Due to Affiliate | $ 8 | $ 8 | $ 11 | ||||
Enable Midstream Partners [Member] | CERC Corp [Member] | |||||||
Management Rights Ownership Percentage | 50.00% | ||||||
Incentive Distribution Right | 40.00% | ||||||
Enable Midstream Partners [Member] | OGE [Member] | |||||||
Management Rights Ownership Percentage | 50.00% | ||||||
Incentive Distribution Right | 60.00% | ||||||
Indebtedness to CERC Corp. [Member] | Enable Midstream Partners [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 2.10% | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.45% |
Unconsolidated Affiliates Finan
Unconsolidated Affiliates Financial Data (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||||
CenterPoint Energy’s equity method investment in Enable | $ 2,536,000,000 | $ 2,536,000,000 | $ 2,594,000,000 | ||
Enable Midstream Partners [Member] | |||||
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) [Abstract] | |||||
Operating revenues | 529,000,000 | $ 590,000,000 | 1,038,000,000 | $ 1,206,000,000 | |
Cost of sales, excluding depreciation and amortization | 254,000,000 | 277,000,000 | 449,000,000 | 569,000,000 | |
Operating income | 57,000,000 | 93,000,000 | 160,000,000 | 197,000,000 | |
Net income attributable to Enable | 35,000,000 | 77,000,000 | 121,000,000 | 168,000,000 | |
CenterPoint Energy’s interest | 19,000,000 | 42,000,000 | 67,000,000 | 93,000,000 | |
Basis difference amortization | 12,000,000 | 1,000,000 | 24,000,000 | 2,000,000 | |
CenterPoint Energy’s equity in earnings, net | 31,000,000 | 43,000,000 | 91,000,000 | 95,000,000 | |
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||||
Current assets | 349,000,000 | 349,000,000 | 381,000,000 | ||
Non-current assets | 10,851,000,000 | 10,851,000,000 | 10,857,000,000 | ||
Current liabilities | 301,000,000 | 301,000,000 | 615,000,000 | ||
Non-current liabilities | 3,150,000,000 | 3,150,000,000 | 3,092,000,000 | ||
Non-controlling interest | 11,000,000 | 11,000,000 | 12,000,000 | ||
Preferred equity | 362,000,000 | 362,000,000 | 0 | ||
Enable partners’ equity | 7,376,000,000 | 7,376,000,000 | 7,519,000,000 | ||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||||
CenterPoint Energy’s ownership interest in Enable partners’ capital | 4,084,000,000 | 4,084,000,000 | 4,163,000,000 | ||
CenterPoint Energy’s basis difference | (1,548,000,000) | (1,548,000,000) | (1,569,000,000) | ||
CenterPoint Energy’s equity method investment in Enable | 2,536,000,000 | 2,536,000,000 | $ 2,594,000,000 | ||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 75,000,000 | $ 73,000,000 | $ 149,000,000 | $ 145,000,000 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | ||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | $ 840 | ||
Goodwill, Acquired During Period | [1] | 21 | |
Goodwill, Ending Balance | 861 | ||
Natural Gas Distribution [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 746 | ||
Goodwill, Acquired During Period | [1] | 0 | |
Goodwill, Ending Balance | 746 | ||
Energy Services [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | [2] | 83 | |
Goodwill, Acquired During Period | [1] | 21 | |
Goodwill, Ending Balance | 104 | ||
Goodwill, Impaired, Accumulated Impairment Loss | $ 252 | ||
Corporate and Other [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 11 | ||
Goodwill, Acquired During Period | [1] | 0 | |
Goodwill, Ending Balance | $ 11 | ||
[1] | See Note 3. | ||
[2] | Amount presented is net of accumulated goodwill impairment charge of $252 million. |
Capital Stock (Details)
Capital Stock (Details) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Capital stock shares authorized (in shares) | 1,020,000,000 | |
Common stock shares authorized (in shares) | 1,000,000,000 | |
Common stock shares par value (in dollars per share) | $ 0.01 | |
Cumulative preferred stock shares authorized (in shares) | 20,000,000 | |
Cumulative preferred stock par value (in dollars per share) | $ 0.01 | |
Total common stock issued (in shares) | 430,681,657 | 430,262,869 |
Total common stock outstanding (in shares) | 430,681,491 | 430,262,703 |
Treasury stock (in shares) | 166 | 166 |
Indexed Debt Securities (ZENS47
Indexed Debt Securities (ZENS) and Securities Related to ZENS (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)shares | Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($) | May 18, 2016$ / sharesshares | May 17, 2016 | |
Cash payment to ZENS note holders | $ 178 | $ 178 | $ 0 | ||
Indexed debt – reduction | (40) | ||||
Indexed debt securities derivative – reduction | (21) | ||||
Loss on indexed debt securities | 117 | ||||
Subordinated Debt ZENS [Member] | |||||
Debt Instrument, Face Amount | 1,000 | 1,000 | |||
Long-term Debt, Gross | 828 | $ 828 | |||
Subordinated Note Cash Exchangeable Percentage Of Fair Value | 95.00% | ||||
Debt Instrument Contingent Principal Amount Outstanding | $ 519 | $ 519 | |||
TW Common [Member] | |||||
Investment Owned, Balance, Shares | shares | 7,100,000 | 7,100,000 | |||
TW Common [Member] | Subordinated Debt ZENS [Member] | |||||
Number Of Shares Referenced In Exchangeable Subordinated Note | 0.5 | 0.5 | 0.5 | ||
TWC Common [Member] | |||||
Cash received per share of TWC Common held | $ / shares | $ 100 | ||||
Fractional Shares Exchanged for each TWC Common Shares Held | shares | 0.4891 | ||||
TWC Common [Member] | Subordinated Debt ZENS [Member] | |||||
Number Of Shares Referenced In Exchangeable Subordinated Note | 0.125505 | ||||
Time Common [Member] | |||||
Investment Owned, Balance, Shares | shares | 900,000 | 900,000 | |||
Time Common [Member] | Subordinated Debt ZENS [Member] | |||||
Number Of Shares Referenced In Exchangeable Subordinated Note | 0.0625 | 0.0625 | 0.0625 | ||
Charter Common [Member] | |||||
Investment Owned, Balance, Shares | shares | 900,000 | 900,000 | |||
Cash Proceeds Received | $ 178 | ||||
Total Charter Common Shares Received in Exchange for TWC Common Shares Held | shares | 872,531 | ||||
Charter Common [Member] | Subordinated Debt ZENS [Member] | |||||
Number Of Shares Referenced In Exchangeable Subordinated Note | 0.061382 | 0.061382 |
Short-Term Borrowings and Lon48
Short-Term Borrowings and Long-term Debt (Details) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2016USD ($) | May 13, 2016USD ($) | May 01, 2016USD ($) | Dec. 31, 2015USD ($) | |||
Short-term Debt [Line Items] | ||||||
Total short term borrowings | $ 17 | $ 40 | ||||
Line of Credit Facility [Abstract] | ||||||
Total credit facility amount | 2,500 | 2,100 | ||||
CenterPoint Houston [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Total credit facility amount | $ 300 | 300 | ||||
Debt Instrument, Term | 5 years | |||||
CERC Corp [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Total credit facility amount | $ 600 | 600 | ||||
Debt Instrument, Term | 5 years | |||||
Parent Company [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Total credit facility amount | $ 1,600 | 1,200 | ||||
Debt Instrument, Term | 5 years | |||||
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | $ 0 | 200 | ||||
Revolving Credit Facility [Member] | CenterPoint Houston [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | 0 | $ 200 | [1] | |||
Debt, Weighted Average Interest Rate | 1.637% | |||||
Revolving Credit Facility [Member] | CERC Corp [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | 0 | $ 0 | ||||
Revolving Credit Facility [Member] | Parent Company [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | $ 0 | 0 | ||||
Line of Credit [Member] | CenterPoint Houston [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Percentage on limitation of debt to total capitalization under covenant | 65.00% | |||||
Ratio of Indebtedness to Net Capital | 0.527 | |||||
Percentage on limitation of debt to total capitalization under covenant amended | 70.00% | |||||
System restoration costs threshold for increase in permitted debt to EBITDA covenant ratio | $ 100 | |||||
Consecutive Period for System Restoration Costs to Exceed $100 million (in months) | 12 | |||||
Line of Credit [Member] | CenterPoint Houston [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis Spread on LIBOR | 1.125% | |||||
Line of Credit [Member] | CERC Corp [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Percentage on limitation of debt to total capitalization under covenant | 65.00% | |||||
Ratio of Indebtedness to Net Capital | 0.307 | |||||
Line of Credit [Member] | CERC Corp [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis Spread on LIBOR | 1.25% | |||||
Line of Credit [Member] | Parent Company [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Percentage on limitation of debt to total capitalization under covenant | 65.00% | |||||
Ratio of Indebtedness to Net Capital | 0.555 | |||||
Percentage on limitation of debt to total capitalization under covenant amended | 70.00% | |||||
System restoration costs threshold for increase in permitted debt to EBITDA covenant ratio | $ 100 | |||||
Consecutive Period for System Restoration Costs to Exceed $100 million (in months) | 12 | |||||
Line of Credit [Member] | Parent Company [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis Spread on LIBOR | 1.25% | |||||
Letter of Credit [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | $ 13 | 12 | ||||
Letter of Credit [Member] | CenterPoint Houston [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | 4 | 4 | ||||
Letter of Credit [Member] | CERC Corp [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | 3 | 2 | ||||
Letter of Credit [Member] | Parent Company [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | 6 | 6 | ||||
Commercial Paper [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | 1,213 | 935 | ||||
Commercial Paper [Member] | CenterPoint Houston [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | 0 | 0 | ||||
Commercial Paper [Member] | CERC Corp [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | [2] | $ 176 | $ 219 | |||
Debt, Weighted Average Interest Rate | 0.68% | 0.81% | ||||
Commercial Paper [Member] | Parent Company [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term Line of Credit | [3] | $ 1,037 | $ 716 | |||
Debt, Weighted Average Interest Rate | 0.82% | 0.79% | ||||
Product Financing Arrangement [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Total short term borrowings | $ 17 | $ 40 | ||||
Senior Notes [Member] | CERC Corp [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Debt Instrument, Face Amount | $ 325 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.15% | |||||
Bonds General Mortgage Due 2021 [Member] | CenterPoint Houston [Member] | ||||||
Debt Instruments [Abstract] | ||||||
Debt Instrument, Face Amount | $ 300 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.85% | |||||
[1] | Weighted average interest rate was 1.637% as of December 31, 2015. | |||||
[2] | Weighted average interest rate was 0.68% and 0.81% as of June 30, 2016 and December 31, 2015, respectively. | |||||
[3] | Weighted average interest rate was 0.82% and 0.79% as of June 30, 2016 and December 31, 2015, respectively. |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Effective Income Tax Rate Reconciliation, Percent | 125.00% | 32.00% | 39.00% | 36.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
GenOn Demand Charges Transportation Contracts [Member] | CERC Corp [Member] | |
Guarantees | |
Approximate amount of undiscounted maximum obligation under guarantee | $ 20 |
CenterPoint Midstream Guarantees [Member] | |
Guarantees | |
Approximate amount of undiscounted maximum obligation under guarantee | 50 |
Enable Guaranteed Senior Notes [Member] | CERC Corp [Member] | |
Guarantees | |
Approximate amount of undiscounted maximum obligation under guarantee | 1,100 |
Minnesota Service Territory [Member] | CERC Corp [Member] | |
Environmental Matters | |
Liability recorded for remediation of Minnesota sites | 7 |
Minnesota Service Territory [Member] | CERC Corp [Member] | Minimum [Member] | |
Environmental Matters | |
Estimated remediation costs for the Minnesota sites | $ 4 |
Site Contingency, Years to Resolve Contingency | 30 years |
Minnesota Service Territory [Member] | CERC Corp [Member] | Maximum [Member] | |
Environmental Matters | |
Estimated remediation costs for the Minnesota sites | $ 30 |
Site Contingency, Years to Resolve Contingency | 50 years |
Natural Gas Supply Commitments [Member] | |
Natural Gas Supply Commitments | |
2,016 | $ 190 |
2,017 | 473 |
2,018 | 456 |
2,019 | 270 |
2,020 | 132 |
After 2,020 | $ 127 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Net income (loss) | $ (2) | $ 77 | $ 152 | $ 208 | |
Basic weighted average shares outstanding | 430,653,000 | 430,235,000 | 430,530,000 | 430,096,000 | |
Plus: Incremental shares from assumed conversions: | |||||
Diluted weighted average shares | 430,653,000 | 431,733,000 | 432,973,000 | 431,594,000 | |
Basic earnings (loss) per share | |||||
Net income (loss) | $ (0.01) | $ 0.18 | $ 0.35 | $ 0.48 | |
Diluted earnings (loss) per share | |||||
Net income (loss) | $ (0.01) | $ 0.18 | $ 0.35 | $ 0.48 | |
Restricted Stock [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,443,000 | ||||
Plus: Incremental shares from assumed conversions: | |||||
Restricted stock | 0 | [1] | 1,498,000 | 2,443,000 | 1,498,000 |
[1] | 2,443,000 incremental shares from assumed conversions of restricted stock have not been included in the computation of diluted earnings (loss) per share for the three months months ended June 30, 2016, as their inclusion would be anti-dilutive. |
Reportable Business Segments (D
Reportable Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 1,574 | $ 1,532 | $ 3,558 | $ 3,965 | ||
Operating Income | 182 | 186 | 432 | 442 | ||
Assets | 21,012 | 21,012 | $ 21,290 | |||
Equity in earnings of unconsolidated affiliate, net | 31 | 43 | 91 | 95 | ||
Investment in unconsolidated affiliate | 2,536 | 2,536 | 2,594 | |||
Electric Transmission and Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 763 | 705 | 1,423 | 1,317 | |
Operating Income | 158 | 158 | 241 | 254 | ||
Electric Transmission and Distribution [Member] | Affiliates of NRG Energy, Inc. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 159 | 172 | 304 | 356 | ||
Electric Transmission and Distribution [Member] | Affiliates of Energy Future Holdings Corp. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 50 | 51 | 95 | 103 | ||
Natural Gas Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 414 | 420 | 1,302 | 1,605 | ||
Operating Income | 20 | 19 | 180 | 165 | ||
Energy Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 393 | 404 | 825 | 1,036 | ||
Operating Income | 0 | 9 | 6 | 22 | ||
Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [2] | 0 | 0 | 0 | 0 | |
Operating Income | [2] | 0 | 0 | 0 | 0 | |
Other Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 4 | 3 | 8 | 7 | ||
Operating Income | 4 | 0 | 5 | 1 | ||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | (11) | (11) | (25) | (37) | ||
Assets | (918) | (918) | (725) | |||
Intersegment Eliminations [Member] | Electric Transmission and Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Intersegment Eliminations [Member] | Natural Gas Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | (7) | (7) | (14) | (15) | ||
Intersegment Eliminations [Member] | Energy Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | (4) | (4) | (11) | (22) | ||
Intersegment Eliminations [Member] | Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [2] | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Other Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | Electric Transmission and Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 10,065 | 10,065 | 10,028 | |||
Operating Segments [Member] | Natural Gas Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 5,585 | 5,585 | 5,657 | |||
Operating Segments [Member] | Energy Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 973 | 973 | 857 | |||
Operating Segments [Member] | Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [2] | 2,536 | 2,536 | 2,594 | ||
Operating Segments [Member] | Other Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [3] | 2,771 | 2,771 | 2,879 | ||
Enable Midstream Partners [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Investment in unconsolidated affiliate | 2,536 | 2,536 | 2,594 | |||
Enable Midstream Partners [Member] | Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity in earnings of unconsolidated affiliate, net | 31 | $ 43 | 91 | $ 95 | ||
Investment in unconsolidated affiliate | 2,536 | 2,536 | 2,594 | |||
Pension and Other Postretirement Plans Costs [Member] | Other Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Regulatory Assets | $ 791 | $ 791 | $ 814 | |||
[1] | (1)Electric Transmission & Distribution revenues from major customers are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions)Affiliates of NRG $159 $172 $304 $356Affiliates of Energy Future Holdings Corp. $50 $51 $95 $103 | |||||
[2] | (2)Midstream Investments’ equity earnings are as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in millions)Enable $31 $43 $91 $95Midstream Investments’ total assets are as follows: June 30, 2016 December 31, 2015 (in millions)Enable $2,536 $2,594 | |||||
[3] | Included in total assets of Other Operations as of June 30, 2016 and December 31, 2015 are pension and other postemployment-related regulatory assets of $791 million and $814 million, respectively. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 02, 2016 | Jul. 28, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Subsequent Event [Line Items] | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.2575 | $ 0.2475 | $ 0.5150 | $ 0.4950 | ||
Enable Midstream Partners [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 75 | $ 73 | $ 149 | $ 145 | ||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends Payable, Date Declared | Jul. 28, 2016 | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.2575 | |||||
Dividends Payable, Date to be Paid, Day, Month and Year | Sep. 9, 2016 | |||||
Dividends Payable, Date of Record, Day, Month and Year | Aug. 16, 2016 | |||||
Subsequent Event [Member] | Enable Midstream Partners [Member] | Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends Payable, Date Declared | Aug. 2, 2016 | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.318 | |||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 74 | |||||
Subsequent Event [Member] | Enable Midstream Partners [Member] | Redeemable Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends Payable, Date Declared | Aug. 2, 2016 | |||||
Preferred Stock, Dividends Per Share, Declared | $ 0.625 | |||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 9 |