Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 09, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-31447 | ||
Entity Registrant Name | CenterPoint Energy, Inc. | ||
Entity Tax Identification Number | 74-0694415 | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Address, Address Line One | 1111 Louisiana | ||
Entity Address, City or Town | Houston, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77002 | ||
City Area Code | (713) | ||
Local Phone Number | 207-1111 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 18,490,009,390 | ||
Entity Common Stock, Shares Outstanding | 629,788,724 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement relating to the 2023 Annual Meeting of Shareholders of CenterPoint Energy, which will be filed with the Securities and Exchange Commission within 120 days of December 31, 2022, are incorporated by reference in Item 10, Item 11, Item 12, Item 13 and Item 14 of Part III of this Form 10-K. | ||
Entity Central Index Key | 0001130310 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, $0.01 par value | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | CNP | ||
Security Exchange Name | NYSE | ||
Common Stock, $0.01 par value | NYSE Chicago | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | CNP | ||
Security Exchange Name | CHX | ||
CenterPoint Energy Houston Electric, LLC | |||
Entity Information [Line Items] | |||
Entity File Number | 1-3187 | ||
Entity Registrant Name | CenterPoint Energy Houston Electric, LLC | ||
Entity Tax Identification Number | 22-3865106 | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Address, Address Line One | 1111 Louisiana | ||
Entity Address, City or Town | Houston, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77002 | ||
City Area Code | (713) | ||
Local Phone Number | 207-1111 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | 0 | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Entity Central Index Key | 0000048732 | ||
CenterPoint Energy Houston Electric, LLC | 6.95% General Mortgage Bonds due 2033 | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.95% General Mortgage Bonds due 2033 | ||
Security Exchange Name | NYSE | ||
No Trading Symbol Flag | true | ||
CenterPoint Energy Resources Corp. | |||
Entity Information [Line Items] | |||
Entity File Number | 1-13265 | ||
Entity Registrant Name | CenterPoint Energy Resources Corp. | ||
Entity Tax Identification Number | 76-0511406 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 1111 Louisiana | ||
Entity Address, City or Town | Houston, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77002 | ||
City Area Code | (713) | ||
Local Phone Number | 207-1111 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Entity Central Index Key | 0001042773 | ||
CenterPoint Energy Resources Corp. | 6.625% Senior Notes due 2037 | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.625% Senior Notes due 2037 | ||
Security Exchange Name | NYSE | ||
No Trading Symbol Flag | true |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor [Line Items] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 34 |
Houston Electric | |
Auditor [Line Items] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 34 |
CERC Corp | |
Auditor [Line Items] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 34 |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) shares in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||||
Utility revenues | $ 9,018,000,000 | $ 8,042,000,000 | $ 7,049,000,000 | ||
Non-utility revenues | 303,000,000 | 310,000,000 | 369,000,000 | ||
Total | 9,321,000,000 | 8,352,000,000 | 7,418,000,000 | ||
Expenses: | |||||
Utility natural gas, fuel and purchased power | 2,887,000,000 | 2,127,000,000 | 1,488,000,000 | ||
Non-utility cost of revenues, including natural gas | 204,000,000 | 208,000,000 | 257,000,000 | ||
Operation and maintenance | 2,833,000,000 | 2,810,000,000 | 2,744,000,000 | ||
Depreciation and amortization | 1,288,000,000 | 1,316,000,000 | 1,189,000,000 | ||
Taxes other than income taxes | 543,000,000 | 528,000,000 | 516,000,000 | ||
Goodwill impairment | $ 0 | $ 0 | 0 | 0 | 185,000,000 |
Total | 7,755,000,000 | 6,989,000,000 | 6,379,000,000 | ||
Operating Income | 1,566,000,000 | 1,363,000,000 | 1,039,000,000 | ||
Other Income (Expense): | |||||
Gain (loss) on equity securities | (227,000,000) | (172,000,000) | 49,000,000 | ||
Gain (loss) on indexed debt securities | 325,000,000 | 50,000,000 | (60,000,000) | ||
Gain on sale | 303,000,000 | 8,000,000 | 0 | ||
Interest expense and other finance charges | (511,000,000) | (508,000,000) | (501,000,000) | ||
Interest expense on Securitization Bonds | (13,000,000) | (21,000,000) | (28,000,000) | ||
Other income (expense), net | (26,000,000) | 58,000,000 | 64,000,000 | ||
Total | (149,000,000) | (585,000,000) | (476,000,000) | ||
Income from Continuing Operations Before Income Taxes | 1,417,000,000 | 778,000,000 | 563,000,000 | ||
Income tax expense | 360,000,000 | 110,000,000 | 80,000,000 | ||
Income From Continuing Operations | 1,057,000,000 | 668,000,000 | 483,000,000 | ||
Net Income (Loss) | 1,057,000,000 | 1,486,000,000 | (773,000,000) | ||
Income allocated to preferred shareholders | 49,000,000 | 95,000,000 | 176,000,000 | ||
Income (Loss) Available to Common Shareholders | $ 1,008,000,000 | $ 1,391,000,000 | $ (949,000,000) | ||
Earnings (loss) per common share: | |||||
Basic earnings per common share - continuing operations (in dollars per share) | $ 1.60 | $ 0.97 | $ 0.58 | ||
Basic earnings (loss) per common share - discontinued operations (in dollars per share) | 0 | 1.38 | (2.37) | ||
Basic Earnings (Loss) Per Common Share (in dollars per share) | 1.60 | 2.35 | (1.79) | ||
Basic Earnings (Loss) Per Common Share | |||||
Diluted earnings per common share - continuing operations (in dollars per share) | 1.59 | 0.94 | 0.58 | ||
Diluted earnings (loss) per common share - discontinued operations (in dollars per share) | 0 | 1.34 | (2.37) | ||
Diluted Earnings (Loss) Per Common Share (in dollars per share) | $ 1.59 | $ 2.28 | $ (1.79) | ||
Weighted Average Common Shares Outstanding, Basic | 629,415 | 592,933 | 531,031 | ||
Weighted Average Common Shares Outstanding, Diluted | 632,346 | 609,938 | 531,031 |
STATEMENTS OF CONSOLIDATED IN_2
STATEMENTS OF CONSOLIDATED INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Income tax expense (benefit) from discontinued operations | $ 0 | $ 201 | $ (333) |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Other Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,057 | $ 1,486 | $ (773) |
Other comprehensive income (loss): | |||
Adjustment to pension and other postemployment plans (net of tax expense of $2, $7 and $-0-, respectively) | 32 | 21 | (5) |
Reclassification of net deferred losses from cash flow hedges, tax | 1 | 2 | 0 |
Reclassification of net deferred losses from cash flow hedges (net of tax expense of $-0-, $-0-, and $4, respectively) | 0 | 0 | 15 |
Other comprehensive income (loss) from unconsolidated affiliates (net of tax of $-0-, $-0-, and $-0-, respectively) | 0 | 3 | (2) |
Total | 33 | 26 | 8 |
Comprehensive income (loss) | 1,090 | 1,512 | (765) |
Income allocated to preferred shareholders | 49 | 95 | 176 |
Comprehensive income (loss) available to common shareholders | $ 1,041 | $ 1,417 | $ (941) |
STATEMENTS OF CONSOLIDATED CO_2
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Other Comprehensive Income [Abstract] | |||
Adjustment to pension and other postemployment plans, tax | $ 2 | $ 7 | $ 0 |
Reclassification of deferred loss from cash flow hedges realized in net income, tax | 0 | 0 | 0 |
Reclassification of net deferred losses from cash flow hedge, tax | 0 | 0 | 4 |
Other comprehensive income (loss) from unconsolidated affiliates, tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Restricted cash included in Prepaid expenses and other current assets | $ 74 | $ 230 |
Investment in equity securities | 510 | 1,439 |
Accounts receivable, less allowance for credit losses | 889 | 690 |
Accrued unbilled revenue, less allowance for credit losses | 764 | 513 |
Natural gas and coal inventory | 241 | 186 |
Materials and supplies | 635 | 422 |
Non-trading derivative assets | 10 | 9 |
Taxes receivable | 20 | 1 |
Current assets held for sale | 0 | 2,338 |
Regulatory assets | 1,385 | 1,395 |
Prepaid expenses and other current assets | 171 | 132 |
Total current assets | 4,699 | 7,355 |
Property, Plant and Equipment, net | 27,143 | 23,484 |
Other Assets: | ||
Goodwill | 4,294 | 4,294 |
Total Non-Current Regulatory Assets | 2,193 | 2,321 |
Non-trading derivative assets | 2 | 5 |
Other non-current assets | 215 | 220 |
Total other assets | 6,704 | 6,840 |
Total Assets | 38,546 | 37,679 |
Current Liabilities: | ||
Short-term borrowings | 511 | 7 |
Current portion of VIE Securitization Bonds long-term debt | 156 | 220 |
Indexed debt, net | 7 | 10 |
Current portion of other long-term debt | 1,346 | 308 |
Indexed debt securities derivative | 578 | 903 |
Accounts payable | 1,352 | 1,196 |
Taxes accrued | 298 | 378 |
Interest accrued | 159 | 136 |
Dividends accrued | 144 | 131 |
Customer deposits | 110 | 111 |
Non-trading derivative liabilities | 0 | 2 |
Current liabilities held for sale | 0 | 562 |
Other | 452 | 323 |
Total current liabilities | 5,113 | 4,287 |
Other Liabilities: | ||
Deferred income taxes, net | 3,986 | 3,904 |
Non-trading derivative liabilities | 0 | 12 |
Benefit obligations | 547 | 511 |
Regulatory liabilities | 3,245 | 3,153 |
Other | 774 | 836 |
Total other liabilities | 8,552 | 8,416 |
Long-term Debt, net: | ||
VIE Securitization Bonds, net | 161 | 317 |
Other long-term debt, net | 14,675 | 15,241 |
Total long-term debt, net | 14,836 | 15,558 |
Commitments and Contingencies (Note 15) | ||
Temporary Equity (Note 12) | 3 | 3 |
Shareholders’ Equity: | ||
Cumulative preferred stock | 790 | 790 |
Common stock | 6 | 6 |
Additional paid-in capital | 8,568 | 8,529 |
Retained earnings | 709 | 154 |
Accumulated other comprehensive loss | (31) | (64) |
Total shareholders’ equity | 10,042 | 9,415 |
Total Liabilities and Shareholders’ Equity | $ 38,546 | $ 37,679 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | |||
Cash and cash equivalents | $ 74,000,000 | $ 230,000,000 | |
Accounts receivable, less allowance for credit losses | 889,000,000 | 690,000,000 | |
Allowance for credit losses | 38,000,000 | 44,000,000 | |
Accrued unbilled revenues, allowance for credit loss | 4,000,000 | 6,000,000 | |
Prepaid expenses and other current assets | 171,000,000 | 132,000,000 | |
Other Assets: | |||
Total Non-Current Regulatory Assets | $ 2,193,000,000 | $ 2,321,000,000 | |
Shareholders’ Equity: | |||
Cumulative preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Cumulative preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 |
Cumulative preferred stock, outstanding (in shares) | 800,000 | 800,000 | 2,402,400 |
Cumulative preferred stock, aggregate liquidation preference | $ 800 | $ 800 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, outstanding (in shares) | 629,535,631 | 628,923,534 | |
Variable Interest Entity, Primary Beneficiary | |||
Current Assets: | |||
Cash and cash equivalents | $ 75,000,000 | $ 92,000,000 | |
Accounts receivable, less allowance for credit losses | 22,000,000 | 29,000,000 | |
Prepaid expenses and other current assets | 13,000,000 | 19,000,000 | |
Other Assets: | |||
Total Non-Current Regulatory Assets | $ 229,000,000 | $ 420,000,000 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 1,057,000,000 | $ 1,486,000,000 | $ (773,000,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 1,288,000,000 | 1,316,000,000 | 1,189,000,000 |
Deferred income taxes | 20,000,000 | 213,000,000 | (429,000,000) |
Goodwill impairment and loss from reclassification to held for sale | 0 | 0 | 175,000,000 |
Goodwill impairment | 0 | 0 | 185,000,000 |
Gain on Enable Merger | (303,000,000) | (681,000,000) | 0 |
Loss (gain) on equity securities | 227,000,000 | 172,000,000 | (49,000,000) |
Loss (gain) on indexed debt securities | (325,000,000) | (50,000,000) | 60,000,000 |
Equity in (earnings) losses of unconsolidated affiliates | 0 | (339,000,000) | 1,428,000,000 |
Distributions from unconsolidated affiliates | 0 | 155,000,000 | 113,000,000 |
Pension contributions | (35,000,000) | (61,000,000) | (86,000,000) |
Changes in other assets and liabilities: | |||
Accounts receivable and unbilled revenues, net | (461,000,000) | (98,000,000) | 90,000,000 |
Inventory | (259,000,000) | (140,000,000) | 9,000,000 |
Taxes receivable | (19,000,000) | 81,000,000 | 24,000,000 |
Accounts payable | 203,000,000 | 175,000,000 | 2,000,000 |
Net regulatory assets and liabilities | 234,000,000 | (2,295,000,000) | (107,000,000) |
Other current assets and liabilities | (5,000,000) | 56,000,000 | 104,000,000 |
Other non-current assets and liabilities | 109,000,000 | (53,000,000) | 25,000,000 |
Other operating activities, net | 79,000,000 | 85,000,000 | 35,000,000 |
Net cash provided by operating activities | 1,810,000,000 | 22,000,000 | 1,995,000,000 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (4,419,000,000) | (3,164,000,000) | (2,596,000,000) |
Transaction costs related to Enable Merger (Note 4) | 0 | (49,000,000) | 0 |
Cash received related to Enable Merger | 0 | 5,000,000 | 0 |
Distributions from unconsolidated affiliates in excess of cumulative earnings | 0 | 0 | 80,000,000 |
Proceeds from sale of equity securities, net of transaction costs | 702,000,000 | 1,320,000,000 | 0 |
Proceeds from divestitures (Note 4) | 2,075,000,000 | 22,000,000 | 1,215,000,000 |
Other investing activities, net | 14,000,000 | 15,000,000 | 36,000,000 |
Net cash used in investing activities | (1,628,000,000) | (1,851,000,000) | (1,265,000,000) |
Cash Flows from Financing Activities: | |||
Increase (decrease) in short-term borrowings, net | 452,000,000 | ||
Increase (decrease) in short-term borrowings, net | (27,000,000) | 0 | |
Payment of obligation for finance lease | (485,000,000) | (179,000,000) | 0 |
Borrowings from revolving credit facilities | 0 | 0 | 1,050,000,000 |
Repayments of revolving credit facilities | 0 | 0 | (1,050,000,000) |
Proceeds from (payments of) commercial paper, net | (74,000,000) | 1,132,000,000 | (761,000,000) |
Proceeds from long-term debt | 2,089,000,000 | 4,493,000,000 | 799,000,000 |
Payments of long-term debt, including make-whole premiums | (1,795,000,000) | (2,968,000,000) | (1,724,000,000) |
Payment of debt issuance costs | (36,000,000) | (38,000,000) | (8,000,000) |
Payment of dividends on Common Stock | (440,000,000) | (385,000,000) | (392,000,000) |
Payment of dividends on Preferred Stock | (49,000,000) | (107,000,000) | (137,000,000) |
Proceeds from issuance of Common Stock, net | 0 | 0 | 672,000,000 |
Proceeds from issuance of Series C Preferred stock, net | 0 | 0 | 723,000,000 |
Other financing activities, net | (7,000,000) | (5,000,000) | (6,000,000) |
Net cash provided by (used in) financing activities | (345,000,000) | 1,916,000,000 | (834,000,000) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (163,000,000) | 87,000,000 | (104,000,000) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 254,000,000 | 167,000,000 | 271,000,000 |
Cash, Cash Equivalents and Restricted Cash at End of Year | $ 91,000,000 | $ 254,000,000 | $ 167,000,000 |
STATEMENTS OF CONSOLIDATED CHAN
STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY - USD ($) $ in Millions | Total | Series C Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Cumulative Preferred Stock | Cumulative Preferred Stock Series C Preferred Stock | Cumulative Preferred Stock Series B and Series C Preferred Stock | Common Stock | Additional Paid-in-Capital | Additional Paid-in-Capital Series B and Series C Preferred Stock | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Accumulated Deficit) Series C Preferred Stock | Retained Earnings (Accumulated Deficit) Series A Preferred Stock | Retained Earnings (Accumulated Deficit) Series B Preferred Stock | Accumulated Other Comprehensive Loss |
Balance, beginning of period (in shares) at Dec. 31, 2019 | 2,000,000 | |||||||||||||||
Balance, beginning of year at Dec. 31, 2019 | $ 1,740 | $ 5 | $ 6,080 | $ 632 | $ (7) | $ (98) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Stock issued (in shares) | 1,000,000 | 48,000,000 | ||||||||||||||
Stock issued | $ 723 | $ 1 | 672 | |||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock (in shares) | 0 | |||||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock | $ (100) | $ 100 | ||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2020 | 2,402,400 | 625,000 | 800,000 | 977,400 | 3,000,000 | |||||||||||
Balance, beginning of year (in shares) at Dec. 31, 2019 | 502,000,000 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance related to benefit and investment plans (in shares) | 1,000,000 | |||||||||||||||
Issuances related to benefit and investment plans | $ 0 | 30 | ||||||||||||||
Recognition of beneficial conversion feature | $ 32 | 32 | ||||||||||||||
Net income (loss) | (773) | (773) | ||||||||||||||
Common Stock dividends declared (see Note 12) | (480) | |||||||||||||||
Preferred stock dividends declared | $ (27) | $ (73) | $ (85) | |||||||||||||
Amortization of beneficial conversion feature | (32) | (32) | ||||||||||||||
Other comprehensive income | 8 | |||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2020 | 551,000,000 | |||||||||||||||
Balance, end of year at Dec. 31, 2020 | $ 8,348 | $ 2,363 | $ 6 | 6,914 | (845) | (90) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Stock issued (in shares) | 0 | 77,000,000 | ||||||||||||||
Stock issued | $ 0 | $ 0 | 1 | |||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock (in shares) | (2,000,000) | |||||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock | $ (1,573) | 1,573 | ||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2021 | 800,000 | 0 | 800,000 | 0 | 1,000,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance related to benefit and investment plans (in shares) | 1,000,000 | |||||||||||||||
Issuances related to benefit and investment plans | $ 0 | 41 | ||||||||||||||
Recognition of beneficial conversion feature | $ 0 | 0 | ||||||||||||||
Net income (loss) | 1,486 | 1,486 | ||||||||||||||
Common Stock dividends declared (see Note 12) | (404) | |||||||||||||||
Preferred stock dividends declared | 0 | (49) | (34) | |||||||||||||
Amortization of beneficial conversion feature | $ 0 | 0 | ||||||||||||||
Other comprehensive income | 26 | |||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2021 | 628,923,534 | 629,000,000 | ||||||||||||||
Balance, end of year at Dec. 31, 2021 | $ 9,415 | $ 790 | $ 6 | 8,529 | 154 | (64) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Stock issued (in shares) | 0 | 0 | ||||||||||||||
Stock issued | $ 0 | $ 0 | 0 | |||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock (in shares) | 0 | |||||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock | $ 0 | $ 0 | ||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2022 | 800,000 | 0 | 800,000 | 0 | 1,000,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance related to benefit and investment plans (in shares) | 1,000,000 | |||||||||||||||
Issuances related to benefit and investment plans | $ 0 | 39 | ||||||||||||||
Recognition of beneficial conversion feature | $ 0 | 0 | ||||||||||||||
Net income (loss) | 1,057 | 1,057 | ||||||||||||||
Common Stock dividends declared (see Note 12) | (453) | |||||||||||||||
Preferred stock dividends declared | $ 0 | $ (49) | $ 0 | |||||||||||||
Amortization of beneficial conversion feature | $ 0 | 0 | ||||||||||||||
Other comprehensive income | 33 | |||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2022 | 629,535,631 | 630,000,000 | ||||||||||||||
Balance, end of year at Dec. 31, 2022 | $ 10,042 | $ 790 | $ 6 | $ 8,568 | $ 709 | $ (31) |
STATEMENTS OF CONSOLIDATED CH_2
STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cumulative preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Cumulative preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
STATEMENTS OF CONSOLIDATED IN_3
STATEMENTS OF CONSOLIDATED INCOME - HOUSTON ELECTRIC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | $ 9,321 | $ 8,352 | $ 7,418 |
Expenses: | |||
Operation and maintenance | 2,833 | 2,810 | 2,744 |
Depreciation and amortization | 1,288 | 1,316 | 1,189 |
Taxes other than income taxes | 543 | 528 | 516 |
Total | 7,755 | 6,989 | 6,379 |
Operating Income | 1,566 | 1,363 | 1,039 |
Other Income (Expense): | |||
Interest expense and other finance charges | (511) | (508) | (501) |
Interest expense on Securitization Bonds | (13) | (21) | (28) |
Other income (expense), net | (26) | 58 | 64 |
Total | (149) | (585) | (476) |
Income from Continuing Operations Before Income Taxes | 1,417 | 778 | 563 |
Income tax expense | 360 | 110 | 80 |
Net income (loss) | 1,057 | 1,486 | (773) |
Houston Electric | |||
Revenues | 3,412 | 3,134 | 2,911 |
Expenses: | |||
Operation and maintenance | 1,650 | 1,597 | 1,523 |
Depreciation and amortization | 670 | 642 | 560 |
Taxes other than income taxes | 261 | 251 | 252 |
Total | 2,581 | 2,490 | 2,335 |
Operating Income | 831 | 644 | 576 |
Other Income (Expense): | |||
Interest expense and other finance charges | (202) | (183) | (171) |
Interest expense on Securitization Bonds | (13) | (21) | (28) |
Other income (expense), net | 19 | 17 | 10 |
Total | (196) | (187) | (189) |
Income from Continuing Operations Before Income Taxes | 635 | 457 | 387 |
Income tax expense | 125 | 76 | 53 |
Net income (loss) | $ 510 | $ 381 | $ 334 |
STATEMENTS OF CONSOLIDATED CO_3
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - HOUSTON ELECTRIC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income (loss) | $ 1,057 | $ 1,486 | $ (773) |
Other comprehensive income (loss): | |||
Reclassification of net deferred losses from cash flow hedges, tax | 1 | 2 | 0 |
Total | 33 | 26 | 8 |
Houston Electric | |||
Net income (loss) | 510 | 381 | 334 |
Other comprehensive income (loss): | |||
Reclassification of net deferred losses from cash flow hedges, tax | 0 | 0 | 15 |
Total | 0 | 0 | 15 |
Comprehensive income (loss) available to common shareholders | $ 510 | $ 381 | $ 349 |
STATEMENTS OF CONSOLIDATED CO_4
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - HOUSTON ELECTRIC (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification of net deferred losses from cash flow hedge, tax | $ 0 | $ 0 | $ 4 |
Houston Electric | |||
Reclassification of net deferred losses from cash flow hedge, tax | $ 0 | $ 0 | $ 4 |
CONSOLIDATED BALANCE SHEETS - H
CONSOLIDATED BALANCE SHEETS - HOUSTON ELECTRIC - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Restricted cash included in Prepaid expenses and other current assets | $ 74 | $ 230 |
Accrued unbilled revenue, less allowance for credit losses | 764 | 513 |
Prepaid expenses and other current assets | 171 | 132 |
Total current assets | 4,699 | 7,355 |
Property, Plant and Equipment, net | 27,143 | 23,484 |
Other Assets: | ||
Total Non-Current Regulatory Assets | 2,193 | 2,321 |
Other non-current assets | 215 | 220 |
Total other assets | 6,704 | 6,840 |
Total Assets | 38,546 | 37,679 |
Current Liabilities: | ||
Current portion of VIE Securitization Bonds long-term debt | 156 | 220 |
Current portion of other long-term debt | 1,346 | 308 |
Accounts payable | 1,352 | 1,196 |
Taxes accrued | 298 | 378 |
Interest accrued | 159 | 136 |
Other current liabilities | 452 | 323 |
Total current liabilities | 5,113 | 4,287 |
Other Liabilities: | ||
Deferred income taxes, net | 3,986 | 3,904 |
Benefit obligations | 547 | 511 |
Regulatory liabilities | 3,245 | 3,153 |
Other | 774 | 836 |
Total other liabilities | 8,552 | 8,416 |
Long-term Debt, net: | ||
VIE Securitization Bonds, net | 161 | 317 |
Other long-term debt, net | 14,675 | 15,241 |
Total long-term debt, net | 14,836 | 15,558 |
Commitments and Contingencies (Note 15) | ||
Shareholders’ Equity: | ||
Common stock | 6 | 6 |
Additional paid-in capital | 8,568 | 8,529 |
Retained earnings | 709 | 154 |
Total shareholders’ equity | 10,042 | 9,415 |
Total Liabilities and Shareholders’ Equity | 38,546 | 37,679 |
Houston Electric | ||
Current Assets: | ||
Restricted cash included in Prepaid expenses and other current assets | 75 | 214 |
Accounts and notes receivable, net | 311 | 263 |
Accounts and notes receivable—affiliated companies | 21 | 11 |
Accrued unbilled revenue, less allowance for credit losses | 142 | 127 |
Materials and supplies | 471 | 292 |
Prepaid expenses and other current assets | 41 | 49 |
Total current assets | 1,061 | 956 |
Property, Plant and Equipment, net | 13,461 | 11,203 |
Other Assets: | ||
Total Non-Current Regulatory Assets | 778 | 789 |
Other non-current assets | 39 | 32 |
Total other assets | 817 | 821 |
Total Assets | 15,339 | 12,980 |
Current Liabilities: | ||
Current portion of VIE Securitization Bonds long-term debt | 156 | 220 |
Current portion of other long-term debt | 0 | 300 |
Accounts payable | 413 | 510 |
Accounts payable - affiliated companies | 755 | 568 |
Taxes accrued | 150 | 193 |
Interest accrued | 83 | 74 |
Other current liabilities | 88 | 91 |
Total current liabilities | 1,645 | 1,956 |
Other Liabilities: | ||
Deferred income taxes, net | 1,229 | 1,122 |
Benefit obligations | 38 | 55 |
Regulatory liabilities | 1,155 | 1,152 |
Other | 77 | 98 |
Total other liabilities | 2,499 | 2,427 |
Long-term Debt, net: | ||
VIE Securitization Bonds, net | 161 | 317 |
Other long-term debt, net | 6,036 | 4,658 |
Total long-term debt, net | 6,197 | 4,975 |
Commitments and Contingencies (Note 15) | ||
Shareholders’ Equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 3,860 | 2,678 |
Retained earnings | 1,138 | 944 |
Total shareholders’ equity | 4,998 | 3,622 |
Total Liabilities and Shareholders’ Equity | $ 15,339 | $ 12,980 |
CONSOLIDATED BALANCE SHEETS -_2
CONSOLIDATED BALANCE SHEETS - HOUSTON ELECTRIC (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents | $ 74 | $ 230 |
Accounts receivable | 889 | 690 |
Allowance for credit losses | 38 | 44 |
Prepaid expenses and other current assets | 171 | 132 |
Total Non-Current Regulatory Assets | 2,193 | 2,321 |
Houston Electric | ||
Cash and cash equivalents | 75 | 214 |
Allowance for credit losses | 1 | 1 |
Prepaid expenses and other current assets | 41 | 49 |
Total Non-Current Regulatory Assets | 778 | 789 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | 75 | 92 |
Accounts receivable | 22 | 29 |
Prepaid expenses and other current assets | 13 | 19 |
Total Non-Current Regulatory Assets | 229 | 420 |
Variable Interest Entity, Primary Beneficiary | Houston Electric | ||
Cash and cash equivalents | 75 | 92 |
Accounts receivable | 22 | 29 |
Prepaid expenses and other current assets | 13 | 19 |
Total Non-Current Regulatory Assets | $ 229 | $ 420 |
STATEMENTS OF CONSOLIDATED CA_2
STATEMENTS OF CONSOLIDATED CASH FLOWS - HOUSTON ELECTRIC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 1,057 | $ 1,486 | $ (773) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 1,288 | 1,316 | 1,189 |
Deferred income taxes | 20 | 213 | (429) |
Changes in other assets and liabilities: | |||
Accounts receivable and unbilled revenues, net | (461) | (98) | 90 |
Inventory | (259) | (140) | 9 |
Accounts payable | 203 | 175 | 2 |
Net regulatory assets and liabilities | 234 | (2,295) | (107) |
Other operating activities, net | 79 | 85 | 35 |
Net cash provided by operating activities | 1,810 | 22 | 1,995 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (4,419) | (3,164) | (2,596) |
Other investing activities, net | 14 | 15 | 36 |
Net cash used in investing activities | (1,628) | (1,851) | (1,265) |
Cash Flows from Financing Activities: | |||
Proceeds from long-term debt | 2,089 | 4,493 | 799 |
Payments of long-term debt, including make-whole premiums | (1,795) | (2,968) | (1,724) |
Payment of obligation for finance lease | (485) | (179) | 0 |
Net cash provided by (used in) financing activities | (345) | 1,916 | (834) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (163) | 87 | (104) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 254 | 167 | 271 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 91 | 254 | 167 |
Houston Electric | |||
Cash Flows from Operating Activities: | |||
Net income (loss) | 510 | 381 | 334 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 670 | 642 | 560 |
Deferred income taxes | 86 | 32 | (42) |
Changes in other assets and liabilities: | |||
Accounts receivable and unbilled revenues, net | (63) | (17) | (26) |
Accounts receivable/payable–affiliated companies | 47 | (36) | 47 |
Inventory | (179) | (97) | (48) |
Accounts payable | (7) | 66 | 28 |
Net regulatory assets and liabilities | (41) | (237) | (11) |
Other current assets and liabilities | (20) | 39 | 55 |
Other non-current assets and liabilities | (25) | 6 | 4 |
Other operating activities, net | (12) | (9) | (2) |
Net cash provided by operating activities | 966 | 770 | 899 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (2,436) | (1,619) | (1,058) |
Increase in notes receivable–affiliated companies | 0 | 0 | 481 |
Other investing activities, net | 1 | 2 | 13 |
Net cash used in investing activities | (2,435) | (1,617) | (564) |
Cash Flows from Financing Activities: | |||
Proceeds from long-term debt | 1,589 | 1,096 | 299 |
Payments of long-term debt, including make-whole premiums | (720) | (613) | (231) |
Dividend to parent | (316) | 0 | (551) |
Increase in notes payable–affiliated companies | 130 | 504 | 8 |
Payment of debt issuance costs | (17) | (12) | (3) |
Contribution from parent | 1,143 | 130 | 62 |
Payment of obligation for finance lease | (485) | (179) | 0 |
Net cash provided by (used in) financing activities | 1,324 | 926 | (416) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (145) | 79 | (81) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 233 | 154 | 235 |
Cash, Cash Equivalents and Restricted Cash at End of Year | $ 88 | $ 233 | $ 154 |
STATEMENTS OF CONSOLIDATED CH_3
STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY - HOUSTON ELECTRIC - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Houston Electric | Houston Electric Common Stock | Houston Electric Additional Paid-in-Capital | Houston Electric Retained Earnings (Accumulated Deficit) | Houston Electric Accumulated Other Comprehensive Loss |
Balance, beginning of year (in shares) at Dec. 31, 2019 | 502,000,000 | 1,000 | ||||||||
Balance, end of year (in shares) at Dec. 31, 2020 | 551,000,000 | 1,000 | ||||||||
Balance, beginning of year at Dec. 31, 2019 | $ 5 | $ 6,080 | $ 632 | $ (98) | $ 0 | $ 2,486 | $ 780 | $ (15) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cash contribution from parent | 62 | |||||||||
Other | 0 | |||||||||
Net income (loss) | $ (773) | (773) | $ 334 | 334 | ||||||
Dividend to parent | (551) | |||||||||
Other comprehensive income | 8 | 15 | ||||||||
Balance, end of year at Dec. 31, 2020 | $ 8,348 | $ 6 | 6,914 | (845) | (90) | 3,111 | $ 0 | 2,548 | 563 | 0 |
Balance, end of year (in shares) at Dec. 31, 2021 | 628,923,534 | 629,000,000 | 1,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cash contribution from parent | 130 | |||||||||
Other | 0 | |||||||||
Net income (loss) | $ 1,486 | 1,486 | 381 | 381 | ||||||
Dividend to parent | 0 | |||||||||
Other comprehensive income | 26 | 0 | ||||||||
Balance, end of year at Dec. 31, 2021 | $ 9,415 | $ 6 | 8,529 | 154 | (64) | 3,622 | $ 0 | 2,678 | 944 | 0 |
Balance, end of year (in shares) at Dec. 31, 2022 | 629,535,631 | 630,000,000 | 1,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Contribution from parent | 38 | |||||||||
Cash contribution from parent | 1,143 | |||||||||
Other | 1 | |||||||||
Net income (loss) | $ 1,057 | 1,057 | 510 | 510 | ||||||
Dividend to parent | (316) | |||||||||
Other comprehensive income | 33 | 0 | ||||||||
Balance, end of year at Dec. 31, 2022 | $ 10,042 | $ 6 | $ 8,568 | $ 709 | $ (31) | $ 4,998 | $ 0 | $ 3,860 | $ 1,138 | $ 0 |
STATEMENTS OF CONSOLIDATED IN_4
STATEMENTS OF CONSOLIDATED INCOME - CERC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Utility revenues | $ 9,018 | $ 8,042 | $ 7,049 |
Non-utility revenues | 303 | 310 | 369 |
Total | 9,321 | 8,352 | 7,418 |
Expenses: | |||
Utility natural gas | 2,887 | 2,127 | 1,488 |
Non-utility cost of revenues, including natural gas | 204 | 208 | 257 |
Operation and maintenance | 2,833 | 2,810 | 2,744 |
Depreciation and amortization | 1,288 | 1,316 | 1,189 |
Taxes other than income taxes | 543 | 528 | 516 |
Total | 7,755 | 6,989 | 6,379 |
Operating Income | 1,566 | 1,363 | 1,039 |
Other Income (Expense): | |||
Gain on sale | 303 | 8 | 0 |
Interest expense and other finance charges | (511) | (508) | (501) |
Other income (expense), net | (26) | 58 | 64 |
Total | (149) | (585) | (476) |
Income from Continuing Operations Before Income Taxes | 1,417 | 778 | 563 |
Income tax expense | 360 | 110 | 80 |
Income From Continuing Operations | 1,057 | 668 | 483 |
Net Income (Loss) | 1,057 | 1,486 | (773) |
CERC Corp | |||
Revenues: | |||
Utility revenues | 4,764 | 4,143 | 3,479 |
Non-utility revenues | 36 | 57 | 52 |
Total | 4,800 | 4,200 | 3,531 |
Expenses: | |||
Utility natural gas | 2,607 | 1,885 | 1,313 |
Non-utility cost of revenues, including natural gas | 4 | 17 | 17 |
Operation and maintenance | 886 | 973 | 997 |
Depreciation and amortization | 448 | 483 | 441 |
Taxes other than income taxes | 257 | 249 | 234 |
Total | 4,202 | 3,607 | 3,002 |
Operating Income | 598 | 593 | 529 |
Other Income (Expense): | |||
Gain on sale | 557 | 11 | 0 |
Interest expense and other finance charges | (130) | (134) | (143) |
Other income (expense), net | (64) | (4) | (4) |
Total | 363 | (127) | (147) |
Income from Continuing Operations Before Income Taxes | 961 | 466 | 382 |
Income tax expense | 236 | 76 | 117 |
Income From Continuing Operations | 725 | 390 | 265 |
Net income (loss) from Discontinued Operations | 0 | 0 | (66) |
Net Income (Loss) | $ 725 | $ 390 | $ 199 |
STATEMENTS OF CONSOLIDATED IN_5
STATEMENTS OF CONSOLIDATED INCOME - CERC (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income tax expense (benefit) from discontinued operations | $ 0 | $ 201 | $ (333) |
CERC Corp | |||
Income tax expense (benefit) from discontinued operations | $ 0 | $ 0 | $ (2) |
STATEMENTS OF CONSOLIDATED CO_5
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - CERC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income (loss) | $ 1,057 | $ 1,486 | $ (773) |
Other comprehensive income (loss): | |||
Adjustment to pension and other postemployment plans (net of tax expense of $2, $7 and $-0-, respectively) | 32 | 21 | (5) |
Total | 33 | 26 | 8 |
CERC Corp | |||
Net income (loss) | 725 | 390 | 199 |
Other comprehensive income (loss): | |||
Adjustment to pension and other postemployment plans (net of tax expense of $2, $7 and $-0-, respectively) | 6 | 0 | 0 |
Total | 6 | 0 | 0 |
Comprehensive income (loss) available to common shareholders | $ 731 | $ 390 | $ 199 |
STATEMENTS OF CONSOLIDATED CO_6
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - CERC (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Adjustment to pension and other postemployment plans, tax | $ 2 | $ 7 | $ 0 |
CERC Corp | |||
Adjustment to pension and other postemployment plans, tax | $ 4 | $ 1 | $ 1 |
CONSOLIDATED BALANCE SHEETS - C
CONSOLIDATED BALANCE SHEETS - CERC - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Restricted cash included in Prepaid expenses and other current assets | $ 74 | $ 230 |
Accounts receivable, less allowance for credit losses | 889 | 690 |
Accrued unbilled revenue, less allowance for credit losses | 764 | 513 |
Materials and supplies | 635 | 422 |
Natural gas and coal inventory | 241 | 186 |
Non-trading derivative assets | 10 | 9 |
Taxes receivable | 20 | 1 |
Current assets held for sale | 0 | 2,338 |
Regulatory assets | 1,385 | 1,395 |
Prepaid expenses and other current assets | 171 | 132 |
Total current assets | 4,699 | 7,355 |
Property, Plant and Equipment, net | 27,143 | 23,484 |
Other Assets: | ||
Goodwill | 4,294 | 4,294 |
Total Non-Current Regulatory Assets | 2,193 | 2,321 |
Non-trading derivative assets | 2 | 5 |
Other non-current assets | 215 | 220 |
Total other assets | 6,704 | 6,840 |
Total Assets | 38,546 | 37,679 |
Current Liabilities: | ||
Short-term borrowings | 511 | 7 |
Accounts payable | 1,352 | 1,196 |
Taxes accrued | 298 | 378 |
Interest accrued | 159 | 136 |
Customer deposits | 110 | 111 |
Current liabilities held for sale | 0 | 562 |
Other | 452 | 323 |
Total current liabilities | 5,113 | 4,287 |
Other Liabilities: | ||
Deferred income taxes, net | 3,986 | 3,904 |
Benefit obligations | 547 | 511 |
Regulatory liabilities | 3,245 | 3,153 |
Other non-current liabilities | 774 | 836 |
Total other liabilities | 8,552 | 8,416 |
Long-Term Debt, net | 14,836 | 15,558 |
Commitments and Contingencies (Note 15) | ||
Shareholders’ Equity: | ||
Common stock | 6 | 6 |
Additional paid-in capital | 8,568 | 8,529 |
Retained earnings | 709 | 154 |
Accumulated other comprehensive income | (31) | (64) |
Total shareholders’ equity | 10,042 | 9,415 |
Total Liabilities and Shareholders’ Equity | 38,546 | 37,679 |
CERC Corp | ||
Current Assets: | ||
Restricted cash included in Prepaid expenses and other current assets | 0 | 15 |
Accounts receivable, less allowance for credit losses | 463 | 336 |
Accrued unbilled revenue, less allowance for credit losses | 573 | 335 |
Accounts and notes receivable—affiliated companies | 52 | 28 |
Materials and supplies | 98 | 82 |
Natural gas and coal inventory | 195 | 151 |
Non-trading derivative assets | 7 | 8 |
Taxes receivable | 12 | 28 |
Current assets held for sale | 0 | 2,084 |
Regulatory assets | 1,336 | 1,371 |
Prepaid expenses and other current assets | 78 | 48 |
Total current assets | 2,814 | 4,486 |
Property, Plant and Equipment, net | 10,406 | 9,108 |
Other Assets: | ||
Goodwill | 1,583 | 1,583 |
Total Non-Current Regulatory Assets | 844 | 938 |
Non-trading derivative assets | 2 | 4 |
Other non-current assets | 55 | 34 |
Total other assets | 2,484 | 2,559 |
Total Assets | 15,704 | 16,153 |
Current Liabilities: | ||
Short-term borrowings | 511 | 7 |
Current portion of long-term debt | 1,331 | 0 |
Accounts payable | 690 | 503 |
Accounts and notes payable–affiliated companies | 190 | 566 |
Taxes accrued | 140 | 143 |
Interest accrued | 50 | 30 |
Customer deposits | 94 | 92 |
Current liabilities held for sale | 0 | 562 |
Other | 200 | 151 |
Total current liabilities | 3,206 | 2,054 |
Other Liabilities: | ||
Deferred income taxes, net | 1,262 | 1,028 |
Benefit obligations | 76 | 100 |
Regulatory liabilities | 1,801 | 1,715 |
Other non-current liabilities | 501 | 571 |
Total other liabilities | 3,640 | 3,414 |
Long-Term Debt, net | 3,495 | 5,552 |
Commitments and Contingencies (Note 15) | ||
Shareholders’ Equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 3,729 | 4,106 |
Retained earnings | 1,618 | 1,017 |
Accumulated other comprehensive income | 16 | 10 |
Total shareholders’ equity | 5,363 | 5,133 |
Total Liabilities and Shareholders’ Equity | $ 15,704 | $ 16,153 |
CONSOLIDATED BALANCE SHEETS -_3
CONSOLIDATED BALANCE SHEETS - CERC (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Allowance for credit losses | $ 38 | $ 44 |
Accrued unbilled revenues, allowance for credit loss | 4 | 6 |
CERC Corp | ||
Allowance for credit losses | 34 | 40 |
Accrued unbilled revenues, allowance for credit loss | $ 4 | $ 6 |
STATEMENTS OF CONSOLIDATED CA_3
STATEMENTS OF CONSOLIDATED CASH FLOWS - CERC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 1,057 | $ 1,486 | $ (773) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 1,288 | 1,316 | 1,189 |
Deferred income taxes | 20 | 213 | (429) |
Goodwill impairment and loss from reclassification to held for sale | 0 | 0 | 175 |
Changes in other assets and liabilities: | |||
Accounts receivable and unbilled revenues, net | (461) | (98) | 90 |
Inventory | (259) | (140) | 9 |
Taxes receivable | (19) | 81 | 24 |
Accounts payable | 203 | 175 | 2 |
Net regulatory assets and liabilities | 234 | (2,295) | (107) |
Other operating activities, net | 79 | 85 | 35 |
Net cash provided by operating activities | 1,810 | 22 | 1,995 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (4,419) | (3,164) | (2,596) |
Proceeds from divestitures (Note 4) | 2,075 | 22 | 1,215 |
Other investing activities, net | 14 | 15 | 36 |
Net cash used in investing activities | (1,628) | (1,851) | (1,265) |
Cash Flows from Financing Activities: | |||
Proceeds from (payments of) commercial paper, net | (74) | 1,132 | (761) |
Proceeds from long-term debt | 2,089 | 4,493 | 799 |
Payments of long-term debt, including make-whole premiums | (1,795) | (2,968) | (1,724) |
Other financing activities, net | (7) | (5) | (6) |
Net cash provided by (used in) financing activities | (345) | 1,916 | (834) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (163) | 87 | (104) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 254 | 167 | 271 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 91 | 254 | 167 |
CERC Corp | |||
Cash Flows from Operating Activities: | |||
Net income (loss) | 725 | 390 | 199 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 448 | 483 | 441 |
Deferred income taxes | 178 | 101 | 113 |
Goodwill impairment and loss from reclassification to held for sale | 0 | 0 | 93 |
Gain on divestitures | (557) | (11) | 0 |
Changes in other assets and liabilities: | |||
Accounts receivable and unbilled revenues, net | (376) | (68) | 104 |
Accounts receivable/payable–affiliated companies | 41 | 27 | 0 |
Inventory | (50) | (62) | 64 |
Taxes receivable | 0 | (28) | 0 |
Accounts payable | 190 | 95 | (40) |
Net regulatory assets and liabilities | 244 | (2,095) | (78) |
Other current assets and liabilities | 13 | (39) | 33 |
Other non-current assets and liabilities | (2) | (31) | 56 |
Other operating activities, net | 2 | 19 | 5 |
Net cash provided by operating activities | 856 | (1,219) | 990 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (1,661) | (1,324) | (1,146) |
Increase in notes receivable–affiliated companies | 0 | 0 | (9) |
Proceeds from divestitures (Note 4) | 2,075 | 22 | 365 |
Other investing activities, net | (8) | 15 | 20 |
Net cash used in investing activities | 406 | (1,287) | (770) |
Cash Flows from Financing Activities: | |||
Increase (decrease) in short-term borrowings, net | 452 | (27) | 0 |
Proceeds from (payments of) commercial paper, net | (94) | 552 | (30) |
Proceeds from long-term debt | 927 | 1,699 | 500 |
Payments of long-term debt, including make-whole premiums | (475) | (311) | (593) |
Payment of debt issuance costs | (14) | (10) | (4) |
Dividend to parent | (844) | (17) | (128) |
Contribution from parent | 289 | 140 | 337 |
Capital distribution to parent associated with the sale of CES | 0 | 0 | (286) |
Increase in notes payable–affiliated companies | (1,517) | 490 | (18) |
Other financing activities, net | (1) | (1) | (1) |
Net cash provided by (used in) financing activities | (1,277) | 2,515 | (223) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (15) | 9 | (3) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 15 | 6 | 9 |
Cash, Cash Equivalents and Restricted Cash at End of Year | $ 0 | $ 15 | $ 6 |
STATEMENTS OF CONSOLIDATED CH_4
STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY - CERC - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | CERC Corp | CERC Corp Common Stock | CERC Corp Additional Paid-in-Capital | CERC Corp Additional Paid-in-Capital Discontinued Operations | CERC Corp Retained Earnings (Accumulated Deficit) | CERC Corp Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment | CERC Corp Accumulated Other Comprehensive Loss |
Balance, beginning of year (in shares) at Dec. 31, 2019 | 502,000,000 | 1,000 | |||||||||||
Balance, end of year (in shares) at Dec. 31, 2020 | 551,000,000 | 1,000 | |||||||||||
Balance, beginning of year at Dec. 31, 2019 | $ 5 | $ 6,080 | $ 632 | $ (7) | $ (98) | $ 0 | $ 3,915 | $ 578 | $ (5) | $ 10 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cash contribution from parent | 337 | ||||||||||||
Capital distribution to parent associated with the sale of CES | $ 0 | $ (286) | |||||||||||
Net income (loss) | $ (773) | (773) | 199 | 199 | |||||||||
Dividend to parent | (128) | ||||||||||||
Other comprehensive income | 8 | 0 | |||||||||||
Balance, end of year at Dec. 31, 2020 | $ 8,348 | $ 6 | 6,914 | (845) | (90) | 4,620 | $ 0 | 3,966 | 644 | 10 | |||
Balance, end of year (in shares) at Dec. 31, 2021 | 628,923,534 | 629,000,000 | 1,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cash contribution from parent | 140 | ||||||||||||
Capital distribution to parent associated with the sale of CES | 0 | 0 | |||||||||||
Net income (loss) | $ 1,486 | 1,486 | 390 | 390 | |||||||||
Dividend to parent | (17) | ||||||||||||
Other comprehensive income | 26 | 0 | |||||||||||
Balance, end of year at Dec. 31, 2021 | $ 9,415 | $ 6 | 8,529 | 154 | (64) | 5,133 | $ 0 | 4,106 | 1,017 | 10 | |||
Balance, end of year (in shares) at Dec. 31, 2022 | 629,535,631 | 630,000,000 | 1,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Contribution from parent | 54 | ||||||||||||
Cash contribution from parent | 289 | ||||||||||||
Contribution to parent for sale of Arkansas and Oklahoma Natural Gas businesses | (720) | ||||||||||||
Capital distribution to parent associated with the sale of CES | (720) | $ 0 | |||||||||||
Net income (loss) | $ 1,057 | 1,057 | 725 | 725 | |||||||||
Dividend to parent | (124) | ||||||||||||
Other comprehensive income | 33 | 6 | |||||||||||
Balance, end of year at Dec. 31, 2022 | $ 10,042 | $ 6 | $ 8,568 | $ 709 | $ (31) | $ 5,363 | $ 0 | $ 3,729 | $ 1,618 | $ 16 |
Background
Background | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | Background General. This combined Form 10-K is filed separately by three registrants: CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp. Information contained herein relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other Registrants or the subsidiaries of CenterPoint Energy other than itself or its subsidiaries. Except as discussed in Note 13 to the Registrants’ Consolidated Financial Statements, no registrant has an obligation in respect of any other Registrant’s debt securities, and holders of such debt securities should not consider the financial resources or results of operations of any Registrant other than the obligor in making a decision with respect to such securities. Included in this combined Form 10-K are the Financial Statements of CenterPoint Energy, Houston Electric and CERC, which are referred to collectively as the Registrants. The Combined Notes to the Consolidated Financial Statements apply to all Registrants and specific references to Houston Electric and CERC herein also pertain to CenterPoint Energy, unless otherwise indicated. Background. CenterPoint Energy, Inc. is a public utility holding company. CenterPoint Energy completed the Restructuring on June 30, 2022, whereby the equity interests in Indiana Gas and VEDO, both subsidiaries CenterPoint Energy acquired in its acquisition of Vectren on February 1, 2019, were transferred from VUH to CERC Corp. As a result, Indiana Gas and VEDO became wholly owned subsidiaries of CERC Corp., to better align CenterPoint Energy’s organizational structure with management and financial reporting and to fund future capital investments more efficiently. The Restructuring was a non-cash common control acquisition by CERC. As a result, CERC acquired these businesses at CenterPoint Energy’s historical basis in these entities and prior year amounts were recast to reflect the Restructuring as if it occurred at the earliest period presented for which CenterPoint Energy had common control. The Restructuring did not impact CenterPoint Energy’s carrying basis in any entity, its allocation of goodwill to its reporting units, or its segment presentation. Neither CenterPoint Energy nor CERC recognized any gains or losses in connection with the Restructuring. SIGECO was not acquired by CERC and remains a subsidiary of VUH. See Note 6 for a discussion of the goodwill recorded at CERC as a result of this transaction. IURC and PUCO approvals necessary for the Restructuring were received in December 2021 (IURC) and January 2022 (PUCO). On January 10, 2022, CERC Corp. completed the sale of its Arkansas and Oklahoma Natural Gas businesses. For additional information regarding discontinued operations and divestitures, see Note 4. As of December 31, 2022, CenterPoint Energy’s operating subsidiaries were as follows: • Houston Electric owns and operates electric transmission and distribution facilities in the Texas gulf coast area that includes the city of Houston; and • CERC Corp. (i) directly owns and operates natural gas distribution systems in Louisiana, Minnesota, Mississippi and Texas, (ii) indirectly, through Indiana Gas and VEDO, owns and operates natural gas distribution systems in Indiana and Ohio, respectively, and (iii) owns and operates permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP. • SIGECO provides energy delivery services to electric and natural gas customers located in and near Evansville in southwestern Indiana and owns and operates electric generation assets to serve its electric customers and optimizes those assets in the wholesale power market; and • Energy Systems Group provides energy performance contracting and sustainable infrastructure services, such as renewables, distributed generation and combined heat and power projects. For a description of CenterPoint Energy’s reportable segments, see Note 17. Houston Electric and CERC each consist of a single reportable segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Use of Estimates 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. (b) Principles of Consolidation The accounts of the Registrants and their wholly-owned and majority-owned and controlled subsidiaries are included in the consolidated financial statements. All intercompany transactions and balances are eliminated in consolidation, except as described below. As of December 31, 2022, CenterPoint Energy and Houston Electric had VIEs consisting of the Bond Companies, which are consolidated. The consolidated VIEs are wholly-owned, bankruptcy remote special purpose entities that were formed solely for the purpose of securitizing transition and system restoration related property. Creditors of CenterPoint Energy and Houston Electric have no recourse to any assets or revenues of the 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 or Houston Electric. (c) Equity Method and Investments without a Readily Determinable Fair Value (CenterPoint Energy) CenterPoint Energy uses the equity method for investments in entities when it exercises significant influence, does not have control and is not considered the primary beneficiary, if applicable. Generally, equity investments in limited partnerships with interest greater than approximately 3-5% is accounted for under the equity method. Under the equity method, CenterPoint Energy adjusts its investments each period for contributions made, distributions received, respective shares of comprehensive income and amortization of basis differences, as appropriate. CenterPoint Energy evaluates its equity method investments for impairment when events or changes in circumstances indicate there is a loss in value of the investment that is other than a temporary decline. CenterPoint Energy considers distributions received from equity method investments which do not exceed cumulative equity in earnings subsequent to the date of investment to be a return on investment and classifies these distributions as operating activities in its Statements of Consolidated Cash Flows. CenterPoint Energy considers distributions received from equity method investments in excess of cumulative equity in earnings subsequent to the date of investment to be a return of investment and classifies these distributions as investing activities in its Statements of Consolidated Cash Flows. Investments without a readily determinable fair value will be measured at cost, less impairment, plus or minus observable prices changes of an identical or similar investment of the same issuer. (d) Revenues The Registrants record revenue for electricity delivery and natural gas sales and services under the accrual method and these revenues are recognized upon delivery to customers. Electricity deliveries not billed by month-end are accrued based on actual AMS/AMI data, supply volumes, estimated line loss and applicable tariff rates. Natural gas sales not billed by month-end are accrued based upon estimated purchased gas volumes, estimated lost and unaccounted for gas and currently effective tariff rates. For further discussion, see Note 5. (e) MISO Transactions Indiana Electric is a member of the MISO. MISO-related purchase and sale transactions are recorded using settlement information provided by the MISO. These purchase and sale transactions are accounted for on at least a net hourly position, meaning net purchases within that interval are recorded on CenterPoint Energy’s Statements of Consolidated Income in Utility natural gas, fuel and purchased power, and net sales within that interval are recorded on CenterPoint Energy’s Statements of Consolidated Income in Utility revenues. On occasion, prior period transactions are resettled outside the routine process due to a change in the MISO’s tariff or a material interpretation thereof. Expenses associated with resettlements are recorded once the resettlement is probable and the resettlement amount can be estimated. Revenues associated with resettlements are recognized when the amount is determinable and collectability is reasonably assured. (f) Guarantees CenterPoint Energy recognizes guarantee obligations at fair value. CenterPoint Energy discloses parent company guarantees of a subsidiary’s obligation when that guarantee results in the exposure of a material obligation of the parent company even if the probability of fulfilling such obligation is considered remote. See Note 15(c) and (d). (g) Long-lived Assets, Goodwill and Intangibles The Registrants record property, plant and equipment at historical cost and expense repair and maintenance costs as incurred. The Registrants periodically evaluate long-lived assets, including property, plant and equipment, and specifically identifiable intangibles subject to amortization, when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. For rate regulated businesses, recoverability of long-lived assets is assessed by determining if a capital disallowance from a regulator is probable through monitoring the outcome of rate cases and other proceedings. For non-rate regulated businesses, recoverability is assessed based on an estimate of undiscounted cash flows attributable to the assets compared to the carrying value of the assets. No long-lived asset or intangible asset impairments were recorded in 2022, 2021 or 2020. CenterPoint Energy and CERC perform goodwill impairment tests at least annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. CenterPoint Energy and CERC recognize a goodwill impairment by the amount a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill within that reporting unit. CenterPoint Energy includes deferred tax assets and liabilities within its reporting unit’s carrying value for the purposes of annual and interim impairment tests, regardless of whether the estimated fair value reflects the disposition of such assets and liabilities. For further information about the goodwill impairment tests, see Note 6. (h) Assets Held for Sale and Discontinued Operations Generally, a long-lived asset to be sold is classified as held for sale in the period in which management, with approval from the Board of Directors, as applicable, commits to a plan to sell and a sale is expected to be completed within one year. The Registrants record assets and liabilities held for sale at the lower of their carrying value or their estimated fair value less cost to sell. If the disposal group reflects a component of a reporting unit and meets the definition of a business, the goodwill within that reporting unit is allocated to the disposal group based on the relative fair value of the components representing a business that will be retained and disposed. Goodwill is not allocated to a portion of a reporting unit that does not meet the definition of a business. A disposal group that meets the held for sale criteria and also represents a strategic shift to the Registrant, is also reflected as discontinued operations on the Statements of Consolidated Income, and prior periods are recast to reflect the earnings or losses from such businesses as income from discontinued operations, net of tax. (i) Regulatory Assets and Liabilities The Registrants apply the guidance for accounting for regulated operations within the Electric reportable segment and the Natural Gas reportable segment. The Registrants’ rate-regulated subsidiaries may collect revenues subject to refund pending final determination in rate proceedings. In connection with such revenues, estimated rate refund liabilities are recorded which reflect management’s current judgment of the ultimate outcomes of the proceedings. The Registrants’ rate-regulated businesses recognize removal costs as a component of depreciation expense in accordance with regulatory treatment. In addition, a portion of the amount of removal costs collected from customers that relate to AROs has been reflected as an asset retirement liability in accordance with accounting guidance for AROs. For further detail on the Registrants’ regulatory assets and liabilities, see Note 7. (j) Depreciation and Amortization Expense The Registrants compute depreciation and amortization using the straight-line method based on economic lives or regulatory-mandated recovery periods. Amortization expense includes amortization of certain regulatory assets and other intangibles. (k) Capitalization and Deferral of Interest, including AFUDC The Registrants capitalize interest and AFUDC as a component of projects under construction and amortize it over the assets’ estimated useful lives once the assets are placed in service. Additionally, the Registrants defer interest costs into a regulatory asset when amounts are probable of recovery. Deferred debt interest is amortized over the recovery period for rate-making purposes. AFUDC represents the composite interest cost of borrowed funds and a reasonable return on the equity funds used for construction for subsidiaries that apply the guidance for accounting for regulated operations. Although AFUDC increases both utility plant and earnings, it is realized in cash when the assets are included in rates. The table below includes interest capitalized or deferred during the periods. Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Interest and AFUDC debt (1) (2) $ 44 $ 14 $ 22 $ 34 $ 13 $ 16 $ 27 $ 8 $ 13 AFUDC equity (3) 37 24 5 28 20 5 25 14 3 Other deferred debt interest (4) 33 12 21 10 1 9 3 — 3 (1) Included in Interest and other finance charges on CenterPoint Energy’s Statements of Consolidated Income, inclusive of $18 million, $16 million and $13 million of debt post in-service carrying costs on property, plant and equipment, primarily in Indiana, deferred into a regulatory asset in the years ended December 31, 2022, 2021 and 2020, respectively. (2) Included in Interest and other finance charges on CERC’s Statements of Consolidated Income, inclusive of $15 million, $13 million and $10 million of debt post in-service carrying costs on property, plant and equipment, primarily in Indiana, deferred into a regulatory asset in the years ended December 31, 2022, 2021 and 2020, respectively. (3) Included in Other Income (Expense) on the Registrants’ respective Statements of Consolidated Income. (4) Represents the amount of deferred debt interest on certain regulatory assets that are authorized to earn a return, such as gas costs, storm restoration costs, and TEEEF (including returns on both regulatory and lease assets). (l) Income Taxes Houston Electric and CERC are included in CenterPoint Energy’s U.S. federal consolidated income tax return. Houston Electric and CERC report their income tax provision on a separate entity basis pursuant to a tax sharing policy with CenterPoint Energy. Current federal and certain state income taxes are payable to or receivable from CenterPoint Energy. The Registrants use the asset and liability method of accounting for deferred income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is established against deferred tax assets for which management believes realization is not considered to be more likely than not. The Registrants recognize interest and penalties as a component of income tax expense (benefit), as applicable, in their respective Statements of Consolidated Income. CenterPoint Energy reports the income tax provision associated with its interest in Enable in discontinued operations, net of tax in its Statements of Consolidated Income. For further information, see Note 4. To the extent certain EDIT of the Registrants’ rate-regulated subsidiaries may be recoverable or payable through future rates, regulatory assets and liabilities have been recorded, respectively. See Note 14 for further discussion. The Registrants use the portfolio approach to recognize income tax effects on other comprehensive income from accumulated other comprehensive income. Investment tax credits are deferred and amortized to income over the approximate lives of the related property. (m) Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the invoiced amount and do not bear interest. Management reviews historical write-offs, current available information, and reasonable and supportable forecasts to estimate and establish allowance for credit losses. Account balances are charged off against the allowance when management determines it is probable the receivable will not be recovered. See Note 7 for further information about regulatory deferrals of bad debt expense, including those related to COVID-19 and the February 2021 Winter Storm Event. (n) Inventory The Registrants’ inventory consists principally of materials and supplies, and for CERC, natural gas, and for CenterPoint Energy, coal inventory. Materials and supplies are valued at the lower of average cost or market. Materials and supplies are recorded to inventory when purchased and subsequently charged to expense or capitalized to plant when installed. Certain natural gas in storage at CenterPoint Energy’s and CERC’s utilities are recorded using the LIFO method. CenterPoint Energy’s and CERC’s balances in inventory that were valued using LIFO method were as follows: Year Ended December 31, 2022 (1) 2021 2022 (1) 2021 CenterPoint Energy CERC (in millions) LIFO inventory $ 101 $ 101 $ 82 $ 79 (1) Based on the average cost of gas purchased during December 2022, both CenterPoint Energy’s and CERC’s cost of replacing inventories carried at LIFO cost was more than the carrying value at December 31, 2022 by $101 million. (o) Derivative Instruments The Registrants are exposed to various market risks. These risks arise from transactions entered into in the normal course of business. The Registrants, from time to time, utilize derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices, weather and interest rates on operating results and cash flows. Such derivatives are recognized in the Registrants’ Consolidated Balance Sheets at their fair value unless the Registrant elects the normal purchase and sales exemption for qualified physical transactions. A derivative may be designated as a normal purchase or normal sale if the intent is to physically receive or deliver the product for use or sale in the normal course of business. CenterPoint Energy elected to record changes in the fair value of amounts excluded from the assessment of effectiveness immediately in its Statements of Consolidated Income, and such amounts will be captured in a regulatory asset or regulatory liability if they are recoverable or refundable to customers. (p) Investments in Equity Securities (CenterPoint Energy) CenterPoint Energy reports equity securities at estimated fair value in the Consolidated Balance Sheets, and any gains and losses, net of any transaction costs, are recorded as Gain (Loss) on Equity Securities in the Statements of Consolidated Income. (q) Environmental Costs The Registrants expense or capitalize environmental expenditures, as appropriate, depending on their future economic benefit. The Registrants expense amounts that relate to an existing condition caused by past operations that do not have future economic benefit. The Registrants record undiscounted liabilities related to these future costs when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated. (r) Cash and Cash Equivalents and Restricted Cash For purposes of reporting cash flows, the Registrants consider cash equivalents to be short-term, highly-liquid investments with maturities of three months or less from the date of purchase. Cash and cash equivalents held by the Bond Companies (VIEs) solely to support servicing the Securitization Bonds as of December 31, 2022 and 2021 are reflected on CenterPoint Energy’s and Houston Electric’s Consolidated Balance Sheets. In connection with the issuance of Securitization Bonds, CenterPoint Energy and Houston Electric were required to establish restricted cash accounts to collateralize the bonds that were issued in these financing transactions. These restricted cash accounts are not available for withdrawal until the maturity of the bonds and are not included in cash and cash equivalents. For more information on restricted cash see Note 18. (s) Preferred Stock and Dividends Preferred stock is evaluated to determine balance sheet classification, and all conversion and redemption features are evaluated for bifurcation treatment. Proceeds received net of issuance costs are recognized on the settlement date. Cash dividends become a liability once declared. Income available to common stockholders is computed by deducting from net income the dividends accumulated and earned during the period on cumulative preferred stock. (t) Purchase Accounting The Registrants evaluate acquisitions to determine when a set of acquired activities and assets represent a business. When control of a business is obtained, the Registrants apply the acquisition method of accounting and record the assets acquired, liabilities assumed and any non-controlling interest obtained based on fair value at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the net assets acquired is recorded as goodwill. The results of operations of the acquired business are included in the Registrants’ respective Statements of Consolidated Income beginning on the date of the acquisition. (u) New Accounting Pronouncements The following table provides an overview of certain recently adopted accounting pronouncements applicable to all the Registrants. Recently Adopted Accounting Standards ASU Number and Name Description Date of Adoption Financial Statement Impact ASU 2021-10: Government Assistance (Topic 832) Disclosures by Business Entities about Government Assistance This standard requires additional disclosure requirements when a business receives government assistance and uses a grant or contribution accounting model by analogy to other accounting guidance such as the grant model under International Accounting Standards (IAS) 20 Accounting for Government Grants and Disclosures of Government Assistance and GAAP ASC 958-605 Not for Profit. Transition method: Prospective or retrospective January 1, 2022 The prospective adoption of this standard resulted in additional annual disclosures related to the recovery of Texas natural gas costs associated with the February 2021 Winter Storm Event through the state securitization, which is accounted for as a government grant by analogy to IAS 20. The adoption of this standard did not have a material impact on the Registrants’ financial position, results of operations or cash flows. Management believes that other recently adopted and recently issued accounting standards that are not yet effective will not have a material impact on the Registrants’ financial position, results of operations or cash flows upon adoption. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (a) Property, Plant and Equipment Property, plant and equipment includes the following: December 31, 2022 December 31, 2021 Weighted Average Useful Lives Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net (in years) (in millions) CenterPoint Energy Electric transmission and distribution 36 $ 19,154 $ 5,317 $ 13,837 $ 17,156 $ 4,658 $ 12,498 Electric generation (1) 26 2,120 813 1,307 1,807 1,179 628 Natural gas distribution 32 15,097 4,135 10,962 13,578 3,981 9,597 Finance ROU asset mobile generation 6.5 662 41 621 179 — 179 Other property 23 695 279 416 953 371 582 Total $ 37,728 $ 10,585 $ 27,143 $ 33,673 $ 10,189 $ 23,484 December 31, 2022 December 31, 2021 Weighted Average Useful Lives Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net (in years) (in millions) Houston Electric Electric transmission and distribution 38 $ 14,791 $ 3,556 $ 11,235 $ 13,321 $ 3,502 $ 9,819 Finance ROU asset mobile generation 6.5 662 41 621 179 — 179 Other property 20 2,300 695 1,605 1,773 568 1,205 Total $ 17,753 $ 4,292 $ 13,461 $ 15,273 $ 4,070 $ 11,203 CERC Natural gas distribution 32 $ 14,316 $ 3,946 $ 10,370 $ 12,885 $ 3,800 $ 9,085 Other property 17 63 27 36 49 26 23 Total $ 14,379 $ 3,973 $ 10,406 $ 12,934 $ 3,826 $ 9,108 (1) SIGECO and AGC own a 300 MW unit at the Warrick Power Plant (Warrick Unit 4) as tenants in common. SIGECO’s share of the cost of this unit as of December 31, 2022, is $198 million with accumulated depreciation totaling $162 million. AGC and SIGECO share equally in the cost of operation and output of the unit. SIGECO’s share of operating costs is included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income. (b) Depreciation and Amortization The following table presents depreciation and amortization expense for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Depreciation $ 1,013 $ 434 $ 420 $ 1,024 $ 391 $ 466 $ 961 $ 368 $ 426 Amortization of securitized regulatory assets 191 191 — 213 213 — 155 155 — Other amortization 84 45 28 79 38 17 73 37 15 Total $ 1,288 $ 670 $ 448 $ 1,316 $ 642 $ 483 $ 1,189 $ 560 $ 441 (c) AROs The Registrants recorded AROs associated with the removal of asbestos and asbestos-containing material in its buildings, including substation building structures. CenterPoint Energy recorded AROs relating to the closure of the ash ponds at A.B. Brown and F.B. Culley. CenterPoint Energy and Houston Electric also recorded AROs relating to treated wood poles for electric distribution, distribution transformers containing PCB (also known as Polychlorinated Biphenyl), and underground fuel storage tanks. CenterPoint Energy and CERC also recorded AROs relating to gas pipelines abandoned in place. The estimates of future liabilities were developed using historical information, and where available, quoted prices from outside contractors. A reconciliation of the changes in the ARO liability recorded in Other non-current liabilities on each of the Registrants’ respective Consolidated Balance Sheets is as follows: December 31, 2022 December 31, 2021 CenterPoint Energy (1) Houston Electric CERC (1) CenterPoint Energy (1) Houston Electric CERC (1) (in millions) Beginning balance $ 659 $ 42 $ 479 $ 664 $ 43 $ 514 Accretion expense (2) 20 1 15 19 1 13 Revisions in estimates (3) (69) (7) (74) (24) (2) (48) Ending balance $ 610 $ 36 $ 420 $ 659 $ 42 $ 479 (1) Excludes ARO activity of Arkansas and Oklahoma Natural Gas businesses that were sold in January 2022 and are reflected as held for sale as of December 31, 2021. For further information, see Note 4. (2) Reflected in Regulatory assets on each of the Registrants’ respective Consolidated Balance Sheets. |
Held for Sale and Divestitures
Held for Sale and Divestitures (CenterPoint Energy and CERC) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Held for Sale and Divestitures (CenterPoint Energy and CERC) | (4) Held for Sale and Divestitures (CenterPoint Energy and CERC) Divestiture of Arkansas and Oklahoma Natural Gas Businesses (CenterPoint Energy and CERC). On April 29, 2021, CenterPoint Energy, through its subsidiary CERC Corp., entered into an Asset Purchase Agreement to sell its Arkansas and Oklahoma Natural Gas businesses for $2.15 billion in cash, including recovery of approximately $425 million in natural gas costs, including storm-related incremental natural gas costs associated with the February 2021 Winter Storm Event, subject to certain adjustments set forth in the Asset Purchase Agreement. The assets included approximately 17,000 miles of main pipeline in Arkansas, Oklahoma and certain portions of Bowie County, Texas serving more than half a million customers. The transaction closed on January 10, 2022. The sale was considered an asset sale for tax purposes, requiring net deferred tax liabilities to be excluded from held for sale balances. The deferred taxes associated with the businesses were recognized as a deferred income tax benefit by CenterPoint Energy and CERC upon closing of the sale in 2022. Although the Arkansas and Oklahoma Natural Gas businesses met the held for sale criteria as of December 31, 2021, their disposals did not represent a strategic shift to CenterPoint Energy and CERC, as both retained significant operations in, and continued to invest in, their natural gas businesses. Therefore, the income and expenses associated with the disposed businesses were not reflected as discontinued operations on CenterPoint Energy’s and CERC’s Condensed Statements of Consolidated Income, as applicable. Since the depreciation on the Arkansas and Oklahoma Natural Gas assets continued to be reflected in revenues through customer rates until the closing of the transaction and will be reflected in the carryover basis of the rate-regulated assets, CenterPoint Energy and CERC continued to record depreciation on those assets through the closing of the transaction. The Registrants record assets and liabilities held for sale at the lower of their carrying value or their estimated fair value less cost to sell. CenterPoint Energy and CERC recognized gains of $303 million and $557 million, respectively, net of transaction costs of $59 million, in connection with the closing of the disposition of the Arkansas and Oklahoma Natural Gas businesses during the year ended December 31, 2022. CenterPoint Energy and CERC collected a receivable of $15 million in May 2022 for full and final settlement of the working capital adjustment under the Asset Purchase Agreement. Neither CenterPoint Energy nor CERC recognized any gains or losses on the measurement of assets held for sale during the year ended December 31, 2021. See Note 6 for further information about the allocation of goodwill to the businesses to be disposed. As a result of the completion of the sale of the Arkansas and Oklahoma Natural Gas businesses, there were no assets or liabilities classified as held for sale as of December 31, 2022. The assets and liabilities of the Arkansas and Oklahoma Natural Gas businesses classified as held for sale in CenterPoint Energy’s and CERC’s Consolidated Balance Sheets, as applicable, as of December 31, 2021 included the following: December 31, 2021 CenterPoint Energy CERC (in millions) Receivables, net $ 46 $ 46 Accrued unbilled revenues 48 48 Natural gas inventory 46 46 Materials and supplies 9 9 Property, plant and equipment, net 1,314 1,314 Goodwill (1) 398 144 Regulatory assets 471 471 Other 6 6 Total current assets held for sale $ 2,338 $ 2,084 December 31, 2021 CenterPoint Energy CERC (in millions) Short term borrowings (2) $ 36 $ 36 Accounts payable 40 40 Taxes accrued 7 7 Customer deposits 12 12 Regulatory liabilities 365 365 Other 102 102 Total current liabilities held for sale $ 562 $ 562 (1) See Note 6 for further information about the allocation of goodwill to the disposed businesses. (2) Represents third-party AMAs associated with utility distribution service in Arkansas and Oklahoma. These transactions are accounted for as an inventory financing. For further information, see Notes 13 and 15. The pre-tax income for the Arkansas and Oklahoma Natural Gas businesses, excluding interest and corporate allocations, included in CenterPoint Energy’s and CERC’s Statements of Consolidated Income is as follows: Year Ended December 31, 2022 (1) 2021 2020 (in millions) Income from Continuing Operations Before Income Taxes $ 9 $ 78 $ 73 (1) Reflects January 1, 2022 to January 9, 2022 results only due to of the sale of the Arkansas and Oklahoma Natural Gas businesses. Effective on the date of the closing of the disposition of the Arkansas and Oklahoma Natural Gas businesses, a subsidiary of CenterPoint Energy entered into the Transition Services Agreement, whereby that subsidiary agreed to provide certain transition services such as accounting, customer operations, procurement, and technology functions for a term of up to twelve months. In November 2022, a significant majority of all services under the Transition Services Agreement were terminated, and on January 10, 2023, all remaining services were terminated. CenterPoint Energy’s charges to Southern Col Midco for reimbursement of transition services was $40 million during the year ended December 31, 2022. Actual transitional services costs incurred are recorded net of amounts charged to Southern Col Midco. CenterPoint Energy had accounts receivable from Southern Col Midco of $1 million as of December 31, 2022 for transition services. Divestiture of MES (CenterPoint Energy and CERC). CenterPoint Energy, through its subsidiary CERC Corp., completed the sale of MES on August 31, 2021 to Last Mile Energy. Prior to the transaction, MES provided temporary delivery of LNG and CNG throughout the contiguous 48 states and MES was reflected in CenterPoint Energy’s Natural Gas reportable segment and CERC’s single reportable segment, as applicable. The MES disposal did not represent a strategic shift to CenterPoint Energy and CERC, as both retained significant operations in, and continued to invest in, their natural gas businesses. Therefore, the income and expenses associated with MES are not reflected as discontinued operations on CenterPoint Energy’s and CERC’s Statements of Consolidated Income, as applicable. CenterPoint Energy and CERC recognized a pre-tax gain on the sale of $8 million and $11 million, respectively, during year ended December 31, 2021. See Note 6 for further information about the allocation of goodwill to the MES disposal. Discontinued Operations (CenterPoint Energy and CERC) CenterPoint Energy’s and CERC’s discontinued operations reflect the disposals of interests in Enable, Infrastructure Services and Energy Services, as applicable. CenterPoint Energy’s disposal of its interests in Enable, discussed further below, represented a strategic shift that will have a major effect on CenterPoint Energy’s operations or financial results, and as such, the equity in earnings of unconsolidated affiliates, net of tax, associated with CenterPoint Energy’s equity investment in Enable was reflected as discontinued operations on CenterPoint Energy’s Statements of Consolidated Income. The Infrastructure Services and Energy Services Disposal Groups disposals, discussed further below, also represent a strategic shift to CenterPoint Energy and CERC, as applicable, and as such, the earnings and expenses directly associated with these dispositions, including operating results of the businesses through the date of sale, are reflected as discontinued operations on CenterPoint Energy’s and CERC’s Statements of Consolidated Income, as applicable. As a result, prior periods have also been recast to reflect the earnings or losses from such businesses as income from discontinued operations, net of tax. A summary of discontinued operations presented in CenterPoint Energy’s Statements of Consolidated Income is as follows: Year Ended December 31, 2021 Equity Method Investment in Enable (in millions) Equity in earnings of unconsolidated affiliate, net $ 1,019 Income from discontinued operations before income taxes 1,019 Income tax expense 201 Net income from discontinued operations $ 818 Year Ended December 31, 2020 Equity Method Investment in Enable Infrastructure Services Disposal Group Energy Services Disposal Group Total (in millions) Revenues $ — $ 250 $ 1,167 $ 1,417 Expenses: Non-utility cost of revenues — 50 1,108 1,158 Operation and maintenance — 184 34 218 Taxes other than income taxes — 1 3 4 Total — 235 1,145 1,380 Operating income — 15 22 37 Equity in losses of unconsolidated affiliate, net (1) (1,428) — — (1,428) Income (loss) from discontinued operations before income taxes (1,428) 15 22 (1,391) Loss on classification to held for sale, net (2) — (102) (96) (198) Income tax expense (benefit) (354) 24 (3) (333) Net loss from discontinued operations $ (1,074) $ (111) $ (71) $ (1,256) (1) CenterPoint Energy recognized a loss of $1,428 million from its investment in Enable for the year ended December 31, 2020. This loss included an impairment charge on CenterPoint Energy’s investment in Enable of $1,541 million and CenterPoint Energy’s interest in Enable’s $225 million impairment on an equity method investment. (2) Loss from classification to held for sale is inclusive of goodwill impairments, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. A summary of the Energy Services Disposal Group presented as discontinued operations in CERC’s Statements of Consolidated Income, as applicable, is as follows: Year Ended December 31, 2020 CERC (in millions) Revenues $ 1,167 Expenses: Non-utility cost of revenues 1,108 Operation and maintenance 34 Taxes other than income taxes 3 Total 1,145 Income from Discontinued Operations before income taxes 22 Loss on classification to held for sale, net (1) (90) Income tax expense (benefit) (2) Net income (loss) from Discontinued Operations $ (66) (1) Loss from classification to held for sale is inclusive of goodwill impairment, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. CenterPoint Energy and CERC have elected not to separately disclose discontinued operations on their respective Condensed Statements of Consolidated Cash Flows. Except as discussed in Note 2, l ong-lived assets are not depreciated or amortized once they are classified as held for sale. The following table summarizes CenterPoint Energy’s and CERC’s cash flows from discontinued operations and certain supplemental cash flow disclosures as applicable: Year Ended December 31, 2021 CenterPoint Energy Equity Method Investment in Enable (in millions) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Gain on Enable Merger $ (681) Equity in earnings of unconsolidated affiliate (339) Distributions from unconsolidated affiliate 155 Cash flows from investing activities: Transaction costs related to the Enable Merger (49) Cash received related to Enable Merger 5 Year Ended December 31, 2020 CenterPoint Energy Equity Method Investment in Enable Infrastructure Services Disposal Group Energy Services Disposal Group (in millions) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Write-down of natural gas inventory $ — $ — $ 3 Equity in losses of unconsolidated affiliate 1,428 — — Distributions from unconsolidated affiliate 113 — — Cash flows from investing activities: Capital expenditures — 18 3 Distributions from unconsolidated affiliate in excess of cumulative earnings 80 — — Year Ended December 31, 2020 CERC Energy Services Disposal Group (in millions) Cash flows from operating activities: Write-down of natural gas inventory $ 3 Cash flows from investing activities: Capital expenditures 3 Disposal of Investment in Enable (CenterPoint Energy). On December 2, 2021, Enable, completed the previously announced Enable Merger pursuant to the Enable Merger Agreement entered into on February 16, 2021. At the closing of the Enable Merger on December 2, 2021, Energy Transfer acquired 100% of Enable’s outstanding common and preferred units, and, as a result, Enable Common Units owned by CenterPoint Energy were exchanged for Energy Transfer Common Units and Enable Series A Preferred Units owned by CenterPoint Energy were exchanged for Energy Transfer Series G Preferred Units. During the year ended December 31, 2022, CenterPoint Energy sold all of its remaining Energy Transfer Common Units and Energy Transfer Series G Preferred Units. See Note 11 for further information regarding Energy Transfer equity securities. CenterPoint Energy evaluates its equity method investments, when not reflected as held for sale, for impairment when factors indicate that a decrease in the 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 estimated 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. Based on the severity of the decline in the price of Enable Common Units during the three months ended March 31, 2020 primarily due to the macroeconomic conditions related in part to the COVID-19 pandemic, combined with Enable’s announcement on April 1, 2020 to reduce its quarterly distributions per Enable Common Unit by 50%, and the market outlook indicating excess supply and continued depressed crude oil and natural gas prices impacting the midstream oil and gas industry, CenterPoint Energy determined, in connection with its preparation of the financial statements, that an other than temporary decrease in the value of its investment in Enable had occurred. The impairment analysis compared the estimated fair value of CenterPoint Energy’s investment in Enable to its carrying value. The fair value of the investment was determined using multiple valuation methodologies under both the market and income approaches. Both of these approaches incorporate significant estimates and assumptions, including: Market Approach • quoted price of Enable Common Units; • recent market transactions of comparable companies; and • EBITDA to total enterprise multiples for comparable companies. Income Approach • Enable’s forecasted cash distributions; • projected cash flows of incentive distribution rights; • forecasted growth rate of Enable’s cash distributions; and • determination of the cost of equity, including market risk premiums. Weighting of the Different Approaches Significant unobservable inputs used include the growth rate applied to the projected cash distributions beyond 2020 and the discount rate used to determine the present value of the estimated future cash flows. Based on the significant unobservable estimates and assumptions required, CenterPoint Energy concluded that the fair value estimate should be classified as a Level 3 measurement within the fair value hierarchy. As a result of this analysis, CenterPoint Energy recorded an other than temporary impairment on its investment in Enable of $1,541 million during the year ended December 31, 2020, reducing the carrying value of the investment to its estimated fair value of $848 million as of March 31, 2020. Distributions Received from Enable (CenterPoint Energy): Year Ended December 31, 2021 2020 Per Unit Cash Distribution Per Unit Cash Distribution (in millions, except per unit amounts) Enable Common Units $ 0.6610 $ 155 $ 0.8263 $ 193 Enable Series A Preferred Units (1) 2.2965 34 2.5000 36 Total $ 189 $ 229 (1) As of December 31, 2020, the Enable Series A Preferred Units annual distribution rate was 10%. On February 18, 2021, five years after the issue date, the Enable Series A Preferred Units annual distribution rate changed to a percentage of the Stated Series A Liquidation Preference per Enable Series A Preferred Unit equal to the sum of (a) Three-Month LIBOR, as calculated on each applicable date of determination, and (b) 8.5%. Transactions with Enable (CenterPoint Energy and CERC): The transactions with Enable through December 2, 2021 in the following tables exclude transactions with the Energy Services Disposal Group. CenterPoint Energy and CERC Year Ended December 31, 2021 2020 (in millions) Natural gas expenses, including transportation and storage costs (1) $ 85 $ 86 (1) Included in Non-utility costs of revenues, including natural gas on CenterPoint Energy’s and CERC’s respective Statements of Consolidated Income. Summarized Financial Information for Enable (CenterPoint Energy) As a result of the closing of the Enable Merger in 2021, there were no assets classified as held for sale as of December 31, 2021. Summarized consolidated balance sheet information for Enable on the closing of the Enable Merger is as follows: December 2, 2021 (1) (in millions) Current assets $ 594 Non-current assets 11,227 Current liabilities 1,254 Non-current liabilities 3,281 Non-controlling interest 26 Preferred equity 362 Accumulated other comprehensive loss (1) Enable partners’ equity 6,899 Reconciliation of Investment in Enable: CenterPoint Energy’s ownership interest in Enable partners’ equity $ 3,701 CenterPoint Energy’s basis difference (2,732) CenterPoint Energy’s equity method investment in Enable $ 969 (1) Reflects balances as of the closing of the Enable Merger on December 2, 2021. Summarized consolidated income (loss) information for Enable is as follows: Year Ended December 31, 2021 (1) 2020 (in millions) Operating revenues $ 3,466 $ 2,463 Cost of sales, excluding depreciation and amortization 1,959 965 Depreciation and amortization 382 420 Goodwill impairment — 28 Operating income 634 465 Net income attributable to Enable Common Units 461 52 Reconciliation of Equity in Earnings (Losses), net before income taxes: CenterPoint Energy’s interest $ 248 $ 28 Basis difference amortization (2) 92 87 Loss on dilution, net of proportional basis difference recognition (1) (2) Impairment of CenterPoint Energy’s equity method investment in Enable — (1,541) Gain on Enable Merger 680 — CenterPoint Energy’s equity in earnings (losses), net before income taxes (3) $ 1,019 $ (1,428) (1) Reflects January 1, 2021 to December 2, 2021 results only due to the closing of the Enable Merger. (2) Equity in earnings of unconsolidated affiliate includes CenterPoint Energy’s share of Enable earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference was being amortized through the year 2048 and ceased upon closing of the Enable Merger. (3) Reported as discontinued operations on CenterPoint Energy’s Statements of Consolidated Income. Divestiture of Infrastructure Services (CenterPoint Energy). On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group to PowerTeam Services. Subject to the terms and conditions of the Securities Purchase Agreement, PowerTeam Services agreed to purchase all of the outstanding equity interests of VISCO for approximately $850 million, subject to customary adjustments set forth in the Securities Purchase Agreement, including adjustments based on VISCO’s net working capital at closing, indebtedness, cash and cash equivalents and transaction expenses. The transaction closed on April 9, 2020 for $850 million in cash, subject to the working capital adjustment. Additionally, as of December 31, 2020, CenterPoint Energy had a receivable from PowerTeam Services for working capital and other adjustments set forth in the Security Purchase Agreement. CenterPoint Energy collected a receivable of $4 million from PowerTeam Services in January 2021 for full and final settlement of the working capital adjustment under the Securities Purchase Agreement. In February 2020, certain assets and liabilities representing the Infrastructure Services Disposal Group met the held for sale criteria and represented all of the businesses within the reporting unit. In accordance with the Securities Purchase Agreement, VISCO was converted from a wholly-owned corporation to a limited liability company that was disregarded for federal income tax purposes immediately prior to the closing of the transaction resulting in the sale of membership units. The sale was considered an asset sale for tax purposes, requiring net deferred tax liabilities of approximately $129 million as of April 9, 2020, the date the transaction closed, to be recognized as a deferred income tax benefit by CenterPoint Energy. Additionally, CenterPoint Energy recognized a current tax expense of $158 million during the year ended December 31, 2020, as a result of the cash taxes payable upon sale. Upon classifying the Infrastructure Services Disposal Group as held for sale and in connection with the preparation of CenterPoint Energy’s financial statements as of March 31, 2020, CenterPoint Energy recorded a goodwill impairment of approximately $82 million, plus an additional loss of $14 million for cost to sell, during the year ended December 31, 2020. CenterPoint Energy used the contractual sales price adjusted for estimated working capital and other contractual purchase price adjustments to determine fair value, which are Level 2 inputs. Using this market approach, the fair value of the Infrastructure Services Disposal Group as of March 31, 2020, was determined to be approximately $864 million. The same methodology was applied to estimate the fair value of the Infrastructure Services Disposal Group on the closing date and through the settlement of the net working capital adjustment. CenterPoint Energy recognized a net pre-tax loss of $6 million in connection with the closing of the disposition of the Infrastructure Services Disposal Group during the year ended December 31, 2020, respectively. In the Securities Purchase Agreement, CenterPoint Energy agreed to a mechanism to reimburse PowerTeam Services subsequent to closing of the sale for certain amounts of specifically identified change orders that may have been ultimately rejected by one of VISCO’s customers as part of on-going audits. CenterPoint Energy’s maximum contractual exposure under the Securities Purchase Agreement, in addition to the amount reflected in the working capital adjustment, for these change orders was $21 million. This matter was resolved in 2022 with no amounts reimbursed by CenterPoint Energy. Divestiture of Energy Services (CenterPoint Energy and CERC). On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group to Symmetry Energy Solutions Acquisition. This transaction did not include CEIP and its assets or MES. Symmetry Energy Solutions Acquisition agreed to purchase all of the outstanding equity interests of the Energy Services Disposal Group for approximately $400 million, subject to customary adjustments set forth in the Equity Purchase Agreement, and inclusive of an estimate of the cash adjustment for the Energy Services Disposal Group’s net working capital at closing, indebtedness and transaction expenses. The transaction closed on June 1, 2020 for approximately $286 million in cash, subject to the working capital adjustment. CenterPoint Energy collected a receivable of $79 million from Symmetry Energy Solutions Acquisition in October 2020 for full and final settlement of the working capital adjustment under the Equity Purchase Agreement. In February 2020, certain assets and liabilities representing the Energy Services Disposal Group met the criteria to be classified as held for sale and represented substantially all of the businesses within the reporting unit. In accordance with the Equity Purchase Agreement, CES was converted from a wholly-owned corporation to a limited liability company that was disregarded for federal income tax purposes immediately prior to the closing of the transaction resulting in the sale of membership units. The sale was considered an asset sale for tax purposes, requiring the net deferred tax liability of approximately $4 million as of June 1, 2020, the date the transaction closed, to be recognized as a deferred tax benefit by CenterPoint Energy and CERC upon closing. Additionally, CenterPoint Energy and CERC recognized current tax expense of $4 million during the year ended December 31, 2020, respectively, as a result of the cash taxes payable upon sale. Upon classifying the Energy Services Disposal Group as held for sale and in connection with the preparation of CenterPoint Energy’s and CERC’s respective financial statements as of March 31, 2020, CenterPoint Energy and CERC recorded a goodwill impairment of approximately $62 million during the year ended December 31, 2020. CenterPoint Energy and CERC used the contractual sales price adjusted for estimated working capital and other contractual purchase price adjustments to determine fair value, which are Level 2 inputs. Using this market approach, the fair value of the Energy Services Disposal Group as of March 31, 2020, was determined to be approximately $402 million. The same methodology was applied to estimate the fair value of the Energy Services Disposal Group on the closing date and through the settlement of the net working capital adjustment. Additionally, CenterPoint Energy recognized a loss on assets held for sale of approximately $31 million, plus an additional loss $6 million for cost to sell, recorded only at CenterPoint Energy during the year ended December 31, 2020. CenterPoint Energy and CERC recognized a gain on sale of $3 million during the year ended December 31, 2020. Other Sale Related Matters of Infrastructure Services and Energy Services (CenterPoint Energy and CERC). CES provided natural gas supply to CenterPoint Energy’s and CERC’s Natural Gas under contracts executed in a competitive bidding process, with the duration of some contracts extending into 2021. In addition, CERC is the natural gas transportation provider for a portion of CES’s customer base and will continue to be the transportation provider for these customers as long as these customers retain a relationship with the divested CES business. Transactions between CES and CenterPoint Energy’s and CERC’s Natural Gas that were previously eliminated in consolidation have been reflected in continuing operations until the closing of the sale of the Energy Services Disposal Group. Revenues and expenses included in continuing operations were as follows: Year Ended December 31, 2020 (1) CenterPoint Energy CERC (in millions) Transportation revenue $ 34 $ 34 Natural gas expense 48 47 (1) Represents charges for the period January 1, 2020 until the closing of the sale of the Energy Services Disposal Group. In the normal course of business prior to June 1, 2020, the Energy Services Disposal Group through CES traded natural gas under supply contracts and entered into natural gas related transactions under transportation, storage and other contracts. In connection with the Energy Services Disposal Group’s business activities prior to the closing of the sale of the Energy Services Disposal Group on June 1, 2020, CERC Corp. issued guarantees to certain of CES’s counterparties to guarantee the payment of CES’s obligations. CenterPoint Energy’s and CERC’s Natural Gas businesses had AMAs associated with their utility distribution service in Arkansas, Louisiana and Oklahoma with the Energy Services Disposal Group that expired in March 2021. See Note 15 for further information. The Infrastructure Services Disposal Group provided pipeline construction and repair services to CenterPoint Energy’s and CERC’s Natural Gas. In accordance with consolidation guidance in ASC 980—Regulated Operations, costs incurred by Natural Gas utilities for these pipeline construction and repair services are not eliminated in consolidation when capitalized and included in rate base by the Natural Gas utility. Amounts charged for these services that are not capitalized are included primarily in Operation and maintenance expenses. Fees incurred by CenterPoint Energy’s and CERC’s Natural Gas reportable segment for pipeline construction and repair services are as follows: Year Ended December 31, 2020 (1) CenterPoint Energy CERC (in millions) Pipeline construction and repair services capitalized $ 34 $ — Pipeline construction and repair service charges in operations and maintenance expense 1 1 (1) Represents charges for the period January 1, 2020 until the closing of the sale of the Infrastructure Services Disposal Group. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Registrants expect to be entitled to receive in exchange for these goods or services. The following tables disaggregate revenues by reportable segment and major source and exclude operating revenues from the Energy Services and Infrastructure Services Disposal Groups, which are reflected as discontinued operations prior to the date of closing of each transaction. See Note 4 for further information. CenterPoint Energy Year Ended December 31, 2022 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts $ 4,095 $ 4,969 $ 263 $ 9,327 Other (1) 13 (23) 4 (6) Total revenues $ 4,108 $ 4,946 $ 267 $ 9,321 Year Ended December 31, 2021 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts $ 3,726 $ 4,281 $ 249 $ 8,256 Other (1) 37 55 4 96 Total revenues $ 3,763 $ 4,336 $ 253 $ 8,352 Year Ended December 31, 2020 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts $ 3,451 $ 3,586 $ 313 $ 7,350 Other (1) 19 45 4 68 Total revenues $ 3,470 $ 3,631 $ 317 $ 7,418 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Total lease income was $7 million, $7 million and $6 million for each of the years ended December 31, 2022, 2021 and 2020, respectively. Houston Electric Year Ended December 31, 2022 2021 2020 (in millions) Revenue from contracts $ 3,417 $ 3,117 $ 2,896 Other (1) (5) 17 15 Total revenues $ 3,412 $ 3,134 $ 2,911 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was not significant for the years ended December 31, 2022, 2021, and 2020. CERC Year Ended December 31, 2022 2021 2020 (in millions) Revenue from contracts $ 4,816 $ 4,148 $ 3,480 Other (1) (16) 52 51 Total revenues $ 4,800 $ 4,200 $ 3,531 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was $3 million, $3 million and less than $2 million, respectively, for the years ended December 31, 2022, 2021 and 2020. Revenues from Contracts with Customers Electric (CenterPoint Energy and Houston Electric). Houston Electric distributes electricity to customers over time and customers consume the electricity when delivered. Indiana Electric generates, distributes and transmits electricity to customers over time, and customers consume the electricity when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by state regulators, such as the PUCT and the IURC, is recognized as electricity is delivered and represents amounts both billed and unbilled. Discretionary services requested by customers are provided at a point in time with control transferring upon the completion of the service. Revenue for discretionary services provided by Houston Electric is recognized upon completion of service based on the tariff rates set by the PUCT. Payments for electricity distribution and discretionary services are aggregated and received on a monthly basis. Houston Electric performs transmission services over time as a stand-ready obligation to provide a reliable network of transmission systems. Revenue is recognized upon time elapsed, and the monthly tariff rate set by the regulator. Payments are received on a monthly basis. Indiana Electric customers are billed monthly and payment terms, set by the regulator, require payment within a month of billing. Natural Gas (CenterPoint Energy and CERC). CenterPoint Energy and CERC distribute and transport natural gas to customers over time, and customers consume the natural gas when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by the state governing agency for that service area, is recognized as natural gas is delivered and represents amounts both billed and unbilled. Discretionary services requested by the customer are satisfied at a point in time and revenue is recognized upon completion of service and the tariff rates set by the applicable state regulator. Payments of natural gas distribution, transportation and discretionary services are aggregated and received on a monthly basis. Contract Balances. When the timing of delivery of service is different from the timing of the payments made by customers and when the right to consideration is conditioned on something other than the passage of time, the Registrants recognize either a contract asset (performance precedes billing) or a contract liability (customer payment precedes performance). Those customers that prepay are represented by contract liabilities until the performance obligations are satisfied. The Registrants’ contract assets are included in Accrued unbilled revenues in their Consolidated Balance Sheets. As of December 31, 2022, CenterPoint Energy’s contract assets primarily relate to Energy Systems Group contracts where revenue is recognized using the input method. The Registrants’ contract liabilities are included in Accounts payable and Other current liabilities in their Consolidated Balance Sheets. On an aggregate basis as of December 31, 2022, CenterPoint Energy’s contract liabilities primarily relate to Energy Systems Group contracts where revenue is recognized using the input method. The opening and closing balances of accounts receivable, other accrued unbilled revenue, contract assets and contract liabilities from contracts with customers are as follows: CenterPoint Energy Accounts Receivable Other Accrued Unbilled Revenues Contract Contract Liabilities (in millions) Opening balance as of December 31, 2021 $ 627 $ 513 $ 15 $ 16 Closing balance as of December 31, 2022 858 764 4 45 Increase (decrease) $ 231 $ 251 $ (11) $ 29 The amount of revenue recognized in the year ended December 31, 2022 that was included in the opening contract liability was $15 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between CenterPoint Energy’s performance and the customer’s payment. Houston Electric Accounts Receivable Other Accrued Unbilled Revenues Contract Liabilities (in millions) Opening balance as of December 31, 2021 $ 225 $ 127 $ 4 Closing balance as of December 31, 2022 271 142 2 Increase (decrease) $ 46 $ 15 $ (2) The amount of revenue recognized in the year ended December 31, 2022 that was included in the opening contract liability was $4 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between Houston Electric’s performance and the customer’s payment. CERC Accounts Receivable Other Accrued (in millions) Opening balance as of December 31, 2021 $ 319 $ 335 Closing balance as of December 31, 2022 478 573 Increase $ 159 $ 238 CERC does not have any opening or closing contract asset or contract liability balances. Remaining Performance Obligations (CenterPoint Energy). The table below discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts and (2) when CenterPoint Energy expects to recognize this revenue. Such contracts include energy performance and sustainable infrastructure services contracts of Energy Systems Group, which are included in Corporate and Other. Rolling 12 Months Thereafter Total (in millions) Revenue expected to be recognized on contracts in place as of December 31, 2022: Corporate and Other $ 288 $ 562 $ 850 $ 288 $ 562 $ 850 Practical Expedients and Exemption. Sales taxes and other similar taxes collected from customers are excluded from the transaction price. For contracts for which revenue from the satisfaction of the performance obligations is recognized in the amount invoiced, the practical expedient was elected and revenue expected to be recognized on these contracts has not been disclosed. Allowance for Credit Losses and Bad Debt Expense CenterPoint Energy and CERC segregate financial assets that fall under the scope of Topic 326, primarily trade receivables due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, among others. Houston Electric had no material changes in its methodology to recognize losses on financial assets that fall under the scope of Topic 326, primarily due to the nature of its customers and regulatory environment. For a discussion of regulatory deferrals, including those related to COVID-19, see Note 7. The table below summarizes the Registrants’ bad debt expense amounts for 2022, 2021 and 2020, net of regulatory deferrals, including those related to COVID-19: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Bad debt expense $ 20 $ — $ 17 $ 12 $ — $ 10 $ 24 $ — $ 21 Bad debt expense deferred as regulatory asset $ — $ — $ — $ 16 $ 8 $ 8 $ 17 $ — $ 16 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (CenterPoint Energy and CERC) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles (CenterPoint Energy and CERC) | Goodwill and Other Intangibles (CenterPoint Energy and CERC) CenterPoint Energy’s goodwill by reportable segment as of both December 31, 2022 and December 31, 2021 is as follows: (in millions) Electric (1) $ 936 Natural Gas (2) 2,920 Corporate and Other 438 Total $ 4,294 CERC’s goodwill has been recast to reflect the Restructuring and as of both December 31, 2022 and December 31, 2021 is as follows: (in millions) Goodwill (2) (3) $ 1,583 (1) Amount presented is net of the accumulated goodwill impairment charge of $185 million recorded in 2020. (2) Excludes $398 million and $144 million, respectively, of goodwill attributable to the Arkansas and Oklahoma Natural Gas businesses which was reflected on CenterPoint Energy’s and CERC’s respective Condensed Consolidated Balance Sheets in Current assets held for sale as of December 31, 2021 and disposed following the completion of the sale in January 2022. For further information, see Note 4. (3) Includes $972 million of goodwill attributable to the businesses transferred in the Restructuring as of both December 31, 2022 and December 31, 2021. See below for a discussion of the goodwill valuation determination. When the net assets or equity interest transferred in a common-control transaction constitute a business, goodwill is included with the net assets transferred at the parent company’s historical basis. CenterPoint Energy applied a relative fair value methodology to determine the amount of goodwill to allocate to CERC from its natural gas reporting unit as part of the Restructuring. When a disposal group reflects a component of a reporting unit and meets the definition of a business, the goodwill within that reporting unit is allocated to the disposal group based on the relative fair value of the components representing a business that will be retained and disposed. As a result, goodwill attributable to the Natural Gas businesses to be disposed is classified as held for sale as of December 31, 2021, and excluded from the table above. Goodwill attributable to MES was reflected in the gain on sale during the year ended December 31, 2021. See Note 4 for goodwill impairments included within discontinued operations. CenterPoint Energy and CERC perform goodwill impairment tests at least annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. The impairment evaluation for goodwill is performed by comparing the fair value of each reporting unit with the carrying amount of the reporting unit, including goodwill. The reporting units approximate the reportable segments, with the exception of Energy Systems Group, which is a separate reporting unit but included in Corporate and Other at CenterPoint Energy. The estimated fair value of the reporting unit is primarily determined based on an income approach or a weighted combination of income and market approaches. If the carrying amount is in excess of the estimated fair value of the reporting unit, then the excess amount is recorded as an impairment charge, not to exceed the carrying amount of goodwill. See Note 2(g) for further discussion. CenterPoint Energy and CERC performed the annual goodwill impairment tests in the third quarter of each of 2022 and 2021 and determined that no goodwill impairment charge was required for any reporting unit as a result of those tests. In connection with their preparation of the financial statements for the three months ended March 31, 2020, CenterPoint Energy and CERC identified triggering events to perform interim goodwill impairment tests for each of their reporting units due to the macroeconomic conditions related in part to the COVID-19 pandemic and the resulting decrease in CenterPoint Energy’s enterprise market capitalization below book value from the decline in CenterPoint Energy’s Common Stock price. The interim impairment test resulted in a non-cash goodwill impairment charge in the amount of $185 million for a reporting unit, Indiana Electric, within the Electric reportable segment. The fair value analysis resulted in an implied fair value of goodwill of $936 million for this reporting unit as of March 31, 2020, and as a result, the non-cash impairment charge was recorded in the year ended December 31, 2020. CenterPoint Energy estimated the fair value of the Indiana Electric reporting unit using primarily an income approach. Under the income approach, the fair value of the reporting unit is determined by using the present value of future expected cash flows, which include management’s projections of the amount and timing of future capital expenditures and the cash inflows from the related regulatory recovery. These estimated future cash flows are then discounted using a rate that approximates the weighted average cost of capital of a market participant. The selection of the discount rate requires significant judgment. The tables below present information on CenterPoint Energy’s other intangible assets recorded in Other Assets on the Consolidated Balance Sheets and the related amortization expense included in Depreciation and amortization on CenterPoint Energy’s Statements of Consolidated Income, unless otherwise indicated in the tables below. December 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance (in millions) Customer relationships $ 33 $ (16) $ 17 $ 33 $ (12) $ 21 Trade names 16 (6) 10 16 (5) 11 Operation and maintenance agreements (1) 12 (2) 10 12 (1) 11 Other 2 (1) 1 2 (1) 1 Total $ 63 $ (25) $ 38 $ 63 $ (19) $ 44 (1) Amortization expense related to the operation and maintenance agreements and construction backlog is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Statements of Consolidated Income. Year Ended December 31, 2022 2021 2020 (in millions) Amortization expense of intangible assets recorded in Depreciation and amortization (1) $ 6 $ 6 $ 6 Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas (2) 1 1 2 (1) Assets held for sale are not amortized. The table reflects amortization on continuing operations. For further information on discontinued operations, see Note 4. CenterPoint Energy estimates that amortization expense of intangible assets with finite lives for the next five years will be as follows: Amortization Expense (in millions) 2023 $ 6 2024 5 2025 5 2026 5 2027 4 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters The following is a list of regulatory assets and liabilities, excluding amounts related to the Arkansas and Oklahoma Natural Gas businesses classified as held for sale as of December 31, 2021, reflected on the Registrants’ respective Consolidated Balance Sheets as of December 31, 2022 and 2021. For information about regulatory assets and liabilities in held for sale, see Note 4. December 31, 2022 CenterPoint Energy Houston Electric CERC (in millions) Regulatory Assets: Future amounts recoverable from ratepayers related to: Benefit obligations (1) $ 392 $ — $ 5 Asset retirement obligations & other 237 64 155 Net deferred income taxes 83 34 40 Total future amounts recoverable from ratepayers 712 98 200 Amounts deferred for future recovery related to: Extraordinary gas costs 1,073 — 1,073 Cost recovery riders 133 — 57 Hurricane and February 2021 Winter Storm Event restoration costs 129 113 16 Other regulatory assets 129 46 67 Gas recovery costs 108 — 108 Decoupling 3 — 3 COVID-19 incremental costs 13 8 5 TEEEF costs 182 182 — Unrecognized equity return (2) (54) (27) (5) Total amounts deferred for future recovery 1,716 322 1,324 Amounts currently recovered in customer rates related to: Authorized trackers and cost deferrals 499 25 369 Securitized regulatory assets 229 229 — Unamortized loss on reacquired debt and hedging 88 64 12 Gas recovery costs 79 — 30 Extraordinary gas costs 294 — 294 Regulatory assets related to TCJA 47 47 — Hurricane Harvey restoration costs 30 30 — Benefit obligations 18 18 — Unrecognized equity return (3) (134) (55) (49) Total amounts recovered in customer rates (4) 1,150 358 656 Total Regulatory Assets $ 3,578 $ 778 $ 2,180 Total Current Regulatory Assets (5) $ 1,385 $ — $ 1,336 Total Non-Current Regulatory Assets $ 2,193 $ 778 $ 844 Regulatory Liabilities: Regulatory liabilities related to TCJA $ 1,436 $ 716 $ 536 Estimated removal costs 1,338 158 1,097 Other regulatory liabilities 496 281 193 Total Regulatory Liabilities $ 3,270 $ 1,155 $ 1,826 Total Current Regulatory Liabilities (6) $ 25 $ — $ 25 Total Non-Current Regulatory Liabilities $ 3,245 $ 1,155 $ 1,801 December 31, 2021 CenterPoint Energy Houston Electric CERC (in millions) Regulatory Assets: Future amounts recoverable from ratepayers related to: Benefit obligations (1) $ 412 $ — $ 5 Asset retirement obligations & other 240 45 171 Net deferred income taxes 41 29 5 Total future amounts recoverable from ratepayers 693 74 181 Amounts deferred for future recovery related to: Extraordinary gas costs 1,528 — 1,517 Cost recovery riders 124 — 51 Hurricane and February 2021 Winter Storm Event restoration costs 105 105 — Other regulatory assets 94 57 37 Gas recovery costs 29 — 29 Decoupling 25 — 25 COVID-19 incremental costs 23 8 15 TEEEF costs 21 21 — Unrecognized equity return (28) (3) (4) Total amounts deferred for future recovery 1,921 188 1,670 Amounts currently recovered in customer rates related to: Authorized trackers and cost deferrals 504 24 363 Securitized regulatory assets 420 420 — Unamortized loss on reacquired debt and hedging 92 67 11 Gas recovery costs 72 — 59 Extraordinary gas costs 66 — 66 Regulatory assets related to TCJA 48 46 2 Hurricane Harvey restoration costs 43 43 — Benefit obligations 28 24 4 Unrecognized equity return (3) (171) (97) (47) Total amounts recovered in customer rates 1,102 527 458 Total Regulatory Assets $ 3,716 $ 789 $ 2,309 Total Current Regulatory Assets (5) $ 1,395 $ — $ 1,371 Total Non-Current Regulatory Assets $ 2,321 $ 789 $ 938 Regulatory Liabilities: Regulatory liabilities related to TCJA $ 1,389 $ 738 $ 573 Estimated removal costs 1,304 229 994 Other regulatory liabilities 481 205 149 Total Regulatory Liabilities $ 3,174 $ 1,172 $ 1,716 Total Current Regulatory Liabilities (6) $ 21 $ 20 $ 1 Total Non-Current Regulatory Liabilities $ 3,153 $ 1,152 $ 1,715 (1) Pension and postretirement-related regulatory assets balances are measured annually, and the ending amortization period may change based on the actuarial valuation. (2) Represents the following: (a) CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments in Indiana; (b) Houston Electric’s allowed equity return on TEEEF costs and storm restoration costs; and (c) CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacements expenditures in Texas. (3) Represents the following: (a) CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments in Indiana; (b) Houston Electric’s allowed equity return on its true-up balance of stranded costs, other changes and related interest resulting from the formerly integrated electric utilities prior to Texas deregulation to be recovered in rates through 2024 and certain storm restoration balances; and (c) CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacements expenditures in Texas. (4) Of the $1.2 billion, $358 million and $656 million currently being recovered in customer rates related to CenterPoint Energy, Houston Electric and CERC, respectively, $390 million, $294 million and $96 million is earning a return, respectively. The weighted average recovery period of regulatory assets currently being recovered in base rates, not earning a return, which totals $531 million, $64 million and $424 million for CenterPoint Energy, Houston Electric and CERC, respectively, is 11 years, 28 years and 7 years, respectively. Regulatory assets not earning a return with perpetual or undeterminable lives have been excluded from the weighted average recovery period calculation. (5) Current regulatory assets for both CenterPoint Energy and CERC include extraordinary gas costs of $1,175 million as of December 31, 2022 and $1,256 million and $1,245 million, respectively, as of December 31, 2021. (6) Current regulatory liabilities are included in Other current liabilities in each of the Registrants’ respective Consolidated Balance Sheets. The table below reflects the amount of allowed equity return recognized by each Registrant in its Statements of Consolidated Income: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Allowed equity return recognized $ 45 $ 42 $ 2 $ 40 $ 37 $ 2 $ 31 $ 31 $ — Indiana Electric Securitization of Planned Generation Retirements (CenterPoint Energy) The State of Indiana has enacted legislation, Senate Bill 386, that would enable CenterPoint Energy to request approval from the IURC to securitize the remaining book value and removal costs associated with certain generating facilities not more than twenty-four months before the unit is retired. The Governor of Indiana signed the legislation on April 19, 2021. On May 10, 2022, CenterPoint Energy (Indiana Electric) filed an application with the IURC to securitize qualified costs associated with its planned retirements of coal generation facilities. Total qualified costs are estimated at $359 million, of which $350 million would be financed and $9 million are estimated total ongoing costs. A hearing was held before the IURC on September 7, 2022 and a final order was received on January 4, 2023 authorizing the issuance of up to $350 million in securitization bonds. As a result of this order, CenterPoint Energy will reclassify property, plant and equipment to be recovered through securitization to a regulatory asset during the first quarter of 2023. February 2021 Winter Storm Event In February 2021, certain of the Registrants’ jurisdictions experienced an extreme and unprecedented winter weather event that resulted in prolonged freezing temperatures, which impacted their businesses. In Texas, the February 2021 Winter Storm Event caused an electricity generation shortage that was severely disruptive to Houston Electric’s service territory and the wholesale generation market. While demand for electricity reached extraordinary levels due to the extreme cold, the supply of electricity significantly decreased in part because of the inability of certain power generation facilities to supply electric power to the grid. Houston Electric does not own or operate any electric generation facilities other than TEEEF. Houston Electric transmits and distributes to customers of REPs electric power that the REPs obtain from power generation facilities owned by third parties. ERCOT serves as the independent system operator and regional reliability coordinator for member electric power systems in most of Texas. To comply with ERCOT’s orders, Houston Electric implemented controlled outages across its service territory, resulting in a substantial number of businesses and residents being without power, many for extended periods of time, in compliance with ERCOT’s directives as an emergency procedure to avoid prolonged large-scale state-wide blackouts and long-term damage to the electric system in Texas. In anticipation of this weather event, Houston Electric implemented its emergency operations plan’s processes and procedures necessary to respond to such events, including establishing an incident command center and calling for mutual assistance from other utilities where needed, among other measures. Throughout the February 2021 Winter Storm Event, Houston Electric remained in contact with its regulators and stakeholders, including federal, state and local officials, as well as the PUCT and ERCOT. The February 2021 Winter Storm Event also impacted wholesale prices of CenterPoint Energy’s and CERC’s natural gas purchases and their ability to serve customers in their Natural Gas service territories, including due to the reduction in available natural gas capacity and impacts to CenterPoint Energy’s and CERC’s natural gas supply portfolio activities, and the effects of weather on their systems and their ability to transport natural gas, among other things. The overall natural gas market, including the markets from which CenterPoint Energy and CERC sourced a significant portion of their natural gas for their operations, experienced significant impacts caused by the February 2021 Winter Storm Event, resulting in extraordinary increases in the price of natural gas purchased by CenterPoint Energy and CERC. On February 13, 2021, the Railroad Commission authorized each Texas natural gas distribution utility to record in a regulatory asset the extraordinary expenses associated with the February 2021 Winter Storm Event, including, but not limited to, natural gas cost and other costs related to the procurement and transportation of natural gas supply, subject to recovery in future regulatory proceedings. The Texas governor signed legislation in June 2021 that authorizes the Railroad Commission to use securitization financing and the issuance of customer rate relief bonds for recovery of extraordinary natural gas costs incurred by natural gas utilities as a result of the February 2021 Winter Storm Event. On November 12, 2021, the RRC issued a Regulatory Asset Determination Order which authorized CERC to include $1.1 billion in a regulatory asset which should be included for recovery through customer rate relief bond financing. In addition, CenterPoint Energy’s and CERC’s Natural Gas utilities in jurisdictions outside of Texas deferred under-recovered natural gas cost as regulatory assets under existing recovery mechanisms and are seeking recovery of the increased cost of natural gas. As of December 31, 2022, both CenterPoint Energy and CERC have recorded current regulatory assets of $1,175 million and non-current regulatory assets of $202 million associated with the February 2021 Winter Storm Event. As of December 31, 2021, CenterPoint Energy and CERC have recorded current regulatory assets of $1,410 million and $1,399 million, respectively, of which $154 million related to Arkansas and Oklahoma are reflected as held for sale at both CenterPoint Energy and CERC, and non-current regulatory assets of $583 million and $583 million respectively, of which $244 million related to Arkansas and Oklahoma are reflected as held for sale at both CenterPoint Energy and CERC, associated with the February 2021 Winter Storm Event. See Note 4 for further information. Amounts for the under recovery of natural gas costs associated with the February 2021 Winter Storm Event are reflected in current and non-current regulatory assets on CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets. Recovery of natural gas costs within the regulatory assets as of December 31, 2022 is probable and may be subject to customary regulatory prudence reviews in all jurisdictions that may impact the amounts ultimately recovered. CenterPoint Energy and CERC has approximately $75 million of the total $2 billion of natural gas costs incurred during the February 2021 Winter Storm Event remaining under prudence review. CenterPoint Energy and CERC have begun recovery of natural gas costs in Louisiana and Minnesota, and recovery of natural gas costs in Indiana and Mississippi is complete. CenterPoint Energy and CERC have filed for securitization of natural gas costs in Texas, received commission approval and issuance of a financing order in 2022, and expect the Texas Public Financing Authority to issue customer rate relief bonds in first half of 2023. As part of the closing of the sale of CenterPoint Energy’s and CERC’s Natural Gas businesses in Arkansas and Oklahoma, CERC received as part of the purchase price $398 million for unrecovered natural gas costs associated with the February 2021 Winter Storm Event. In Minnesota, testimonies were filed in CERC’s high gas cost prudency review case by intervenors proposing significant disallowances for all natural gas utilities and for CERC, ranging from $45 million to $409 million. The natural gas costs in Minnesota were incurred in accordance with the plan on file with the MPUC and CenterPoint Energy believes the costs were prudently incurred and are eligible for recovery. In May 2022, the administrative law judges reviewing the gas prudency case concluded that CERC acted prudently in connection with the February 2021 Winter Storm Event and recommended no disallowance of CERC’s jurisdictional gas costs incurred during the event. The commissioners of the MPUC heard oral arguments on the administrative law judges’ report and held deliberations in August 2022. At the deliberations, the MPUC generally found that CERC acted prudently, but it determined that CERC could have done more to offset costs with natural gas storage, peak shaving resources (LNG and propane-air) and curtailment of service to interruptible commercial/industrial customers. As a result, the MPUC disallowed recovery of approximately $36 million of the $409 million originally requested and CERC’s regulatory asset balance as of September 30, 2022 was reduced to reflect the disallowance. Other natural gas utilities in Minnesota received disallowances related to similar topics in a similar proportion to their gas costs. Further, the MPUC required all regulated natural gas utilities to make a filing explaining how they can improve or modify their practices to protect ratepayers from extraordinary natural gas price spikes in the future. CERC made its compliance filing on September 15, 2022. On October 19, 2022, the MPUC issued its written order. CERC filed a petition for reconsideration on November 8, 2022 and a written order denying the petition for reconsideration was issued on January 6, 2023. As of both December 31, 2022 and 2021, as authorized by the PUCT, CenterPoint Energy and Houston Electric recorded a regulatory asset of $8 million for bad debt expenses resulting from REPs’ default on their obligation to pay delivery charges to Houston Electric net of collateral. Additionally, as of December 31, 2022 and 2021, CenterPoint Energy and Houston Electric recorded a regulatory asset of $16 million and $15 million, respectively, to defer operations and maintenance costs associated with the February 2021 Winter Storm Event. See Note 15(d) for further information regarding litigation related to the February 2021 Winter Storm Event. Houston Electric TEEEF Pursuant to legislation passed in 2021, Houston Electric entered into two leases for TEEEF (mobile generation) which are detailed in Note 20. Houston Electric sought initial recovery of the lease costs for the TEEEF and the operational costs for transportation, mobilization and demobilization, labor and materials for interconnections, fuel for commissioning, testing and operation, purchase and lease of auxiliary equipment, and labor and materials for operations in its 2022 DCRF application. Houston Electric filed its DCRF application with the PUCT on April 5, 2022, and subsequently amended such filing on July 1, 2022 to show mobile generation in a separate Rider TEEEF, seeking recovery of deferred costs and the applicable return as of December 31, 2021 under these lease agreements of approximately $200 million. The annual revenue increase requested for these lease agreements is approximately $57 million. Intervenors in the proceeding filed testimony on September 16, 2022 challenging the acquisition and deployment of TEEEF and have recommended disallowances based on the overall contractual obligations. Houston Electric’s rebuttal testimony was filed on October 5, 2022 responding to intervenor positions, including estimating a financial loss impact ranging from $335 million to $354 million if the PUCT disallows recovery of TEEEF costs and the termination clause under the long-term lease is exercised. The termination clause in the long-term lease agreement, as amended, contains certain provisions that allow Houston Electric to terminate the lease within a specific window effective between October 1, 2022, and December 31, 2023 based upon a material adverse regulatory action. Houston Electric’s exposure to loss in the event of a full disallowance of TEEEF related investments, and assuming Houston Electric is unable to exercise the termination clause prior to its expiration, includes the lease costs deferred as a regulatory asset and finance ROU assets further discussed in Note 20, in addition to the allowed return and other related costs incurred through the date of disallowance. On October 13, 2022, the PUCT staff filed a statement of position recommending a longer amortization period for the short-term lease, deferral of associated rate case expenses to the next base rate proceeding and exclusion of the retail transmission rate class from allocation of TEEEF costs. Houston Electric indicated to the PUCT staff that it did not oppose their recommendations. The PUCT staff also reserved the right to take positions on additional issues after consideration of the evidence admitted into the record at the hearing. A hearing was held on October 18 through 20, 2022. Briefs were filed on November 16, 2022 and reply briefs were filed on December 2, 2022. On January 27, 2023, the administrative law judges issued a proposal for decision recommending that the leasing of the TEEEF was not prudent or reasonable and necessary and that the PUCT deny recovery of all of the TEEEF costs. The PUCT is expected to consider the proposal for decision on March 9, 2023. Houston Electric defers costs associated with the short-term and long-term leases that are probable of recovery and would otherwise be charged to expense in a regulatory asset, including allowed returns, and determined that such regulatory assets remain probable of recovery as of December 31, 2022. ROU finance lease assets, such as assets acquired under the long-term leases, are evaluated for impairment under the long-lived asset impairment model by assessing if a capital disallowance from a regulator is probable through monitoring the outcome of rate cases and other proceedings. Houston Electric continues to monitor the on-going proceedings and did not record any impairments on its right of use assets in the year ended December 31, 2022 or 2021. See Note 20 for further information. COVID-19 Regulatory Matters Governors, public utility commissions and other authorities in the states in which the Registrants operate have issued a number of different orders related to the COVID-19 pandemic, including orders addressing customer non-payment and disconnection. Although the disconnect moratoriums have expired in the Registrants’ service territories, CenterPoint Energy continues to support those customers who may need payment assistance, arrangements or extensions. On March 26, 2020, the PUCT issued an order related to accrual of regulatory assets granting authority for utilities to record as a regulatory asset expenses resulting from the effects of COVID-19. In the order, the PUCT noted that it will consider whether a utility’s request for recovery of the regulatory asset is reasonable and necessary in a future proceeding. Commissions in all of Indiana Electric’s and CenterPoint Energy’s and CERC’s Natural Gas service territories have either (1) issued orders to record a regulatory asset for incremental bad debt expenses related to COVID-19, including costs associated with the suspension of disconnections and payment plans or (2) provided authority to recover bad debt expense through an existing tracking mechanism. Both CenterPoint Energy and CERC have recorded estimated incremental uncollectible receivables to the associated regulatory asset of $17 million as of December 31, 2022, and $29 million and $28 million, respectively, as of December 31, 2021. In some of the states in which the Registrants operate, public utility commissions have authorized utilities to employ deferred accounting authority for certain COVID-19 related costs which ensure the safety and health of customers, employees, and contractors, that would not have been incurred in the normal course of business. CERC’s Natural Gas service territory in Minnesota will include any offsetting savings in the deferral. Other jurisdictions where the Registrants operate may require |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Stock-Based Incentive Compensation Plans and Employee Benefit Plans [Abstract] | |
Stock-Based Incentive Compensation Plans and Employee Benefit Plans | Stock-Based Incentive Compensation Plans and Employee Benefit Plans (a) Stock-Based Incentive Compensation Plans (CenterPoint Energy) CenterPoint Energy has LTIPs that provide for the issuance of stock-based incentives, including stock options, performance awards, restricted stock unit awards and restricted and unrestricted stock awards to officers, employees and non-employee directors. Approximately 30 million shares of Common Stock are authorized under these plans for awards. CenterPoint Energy issues new shares of its Common Stock to satisfy stock-based payments related to LTIPs. Equity awards are granted to employees without cost to the participants. Compensation costs for the performance and stock unit awards granted under LTIPs are measured using fair value and expected achievement levels on the grant date. For performance awards with operational goals, the achievement levels are revised as goals are evaluated. The fair value of awards granted to employees is based on the closing stock price of CenterPoint Energy’s Common Stock on the grant date. The compensation expense is recorded on a straight-line basis over the vesting period. Forfeitures are estimated on the date of grant based on historical averages and estimates are updated periodically throughout the vesting period. The performance awards granted in 2022, 2021 and 2020 are distributed based upon the achievement of certain objectives over a three-year performance cycle. The stock unit awards granted in 2020 are service based, and the stock unit awards granted in 2022 and 2021 are service based, subject to the achievement of a performance goal. The stock unit awards generally vest at the end of a three-year period, provided, however, that stock unit awards granted to non-employee directors vested immediately upon grant. Upon vesting, shares under the performance and stock unit awards are issued to the participants along with the value of dividend equivalents earned over the performance cycle or vesting period. The following table summarizes CenterPoint Energy’s expenses related to LTIPs for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (in millions) LTIP compensation expense (1) $ 51 $ 48 $ 38 Income tax benefit recognized 12 11 9 Actual tax benefit realized for tax deductions 6 4 5 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income and shown prior to any amounts capitalized. The following tables summarize CenterPoint Energy’s LTIP activity for 2022 Year Ended December 31, 2022 Shares Weighted-Average Remaining Average Aggregate Intrinsic Value (2) (Millions) Performance Awards (1) Outstanding and nonvested as of December 31, 2021 4,663 $ 24.48 Granted 1,781 28.12 Forfeited or canceled (856) 29.92 Vested and released to participants (431) 31.20 Outstanding and nonvested as of December 31, 2022 5,157 $ 24.26 1.0 $ 106 Stock Unit Awards Outstanding and nonvested as of December 31, 2021 2,367 $ 24.75 Granted 441 28.44 Forfeited or canceled (60) 24.98 Vested and released to participants (452) 28.35 Outstanding and nonvested as of December 31, 2022 2,296 $ 25.03 0.9 $ 69 (1) Reflects maximum performance achievement. (2) Reflects the impact of current expectations of achievement and stock price. The weighted average grant date fair values per unit of awards granted were as follows for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (in millions, except for per unit amounts) Performance Awards Weighted-average grant date fair value per unit of awards granted $ 28.12 $ 21.89 $ 23.82 Total intrinsic value of awards received by participants 13 7 9 Vested grant date fair value 13 8 9 Stock Unit Awards Weighted-average grant date fair value per unit of awards granted $ 28.44 $ 24.20 $ 21.53 Total intrinsic value of awards received by participants 14 11 12 Vested grant date fair value 13 11 12 As of December 31, 2022, there was $50 million of total unrecognized compensation cost related to nonvested performance and stock unit awards which is expected to be recognized over a weighted-average period of 1.6 years. (b) Pension Benefits (CenterPoint Energy) CenterPoint Energy maintains a non-contributory qualified defined benefit pension plan covering eligible employees, with benefits determined using a cash balance formula. In addition to the non-contributory qualified defined benefit pension plan, CenterPoint Energy maintains unfunded non-qualified benefit restoration plans which allow participants to receive the benefits to which they would have been entitled under CenterPoint Energy’s non-contributory qualified pension plan except for federally mandated limits on qualified plan benefits or on the level of compensation on which qualified plan benefits may be calculated. As a result of the Merger, CenterPoint Energy now also maintains three additional qualified defined benefit pension plans, two of which are closed to new participants and one of which is completely frozen, and a non-qualified supplemental retirement plan. The defined benefit pension plans cover eligible full-time regular employees and retirees of Vectren and are primarily non-contributory. In December 2022, the CenterPoint Energy pension plan completed an annuity lift-out, a transaction that provided for the purchase of an irrevocable group annuity contract to fund pension plan annuities of retirees from previously divested businesses, as part of a de-risking strategy. This annuity lift-out reduced the plan’s pension obligation by $138 million and plan assets by $136 million which were transferred to an insurance company. The $138 million transferred benefit obligation represented 9.4% of CenterPoint Energy’s total benefit obligation as of its last remeasurement prior to the transaction. As a result of this transaction: CenterPoint Energy incurred a settlement charge of $47 million; CenterPoint Energy was relieved of all responsibility for these pension obligations’ and an insurance company is now required to pay and administer the retirement benefits owed to 1,119 retirees and beneficiaries, with no changes to the amount, timing or form of retirement benefit payments. CenterPoint Energy’s net periodic cost includes the following components relating to pension, including the non-qualified benefit plans: Year Ended December 31, 2022 2021 2020 (in millions) Service cost (1) $ 29 $ 39 $ 43 Interest cost (2) 73 59 75 Expected return on plan assets (2) (87) (103) (112) Amortization of net loss (2) 31 36 41 Settlement cost (2) (3) 126 38 2 Net periodic cost $ 172 $ 69 $ 49 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. (2) Amounts presented in the table above are included in Other, net (3) A one-time, non-cash settlement cost is required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. In 2022, 2021 and 2020, CenterPoint Energy recognized non-cash settlement cost due to lump sum settlement payments. The transfer of assets related to the 2022 Annuity Lift-Out is considered a lump sum settlement payment. CenterPoint Energy used the following assumptions to determine net periodic cost relating to pension benefits: Year Ended December 31, 2022 2021 2020 Discount rate 2.80 % 2.45 % 3.20 % Expected return on plan assets 5.00 5.00 5.75 Rate of increase in compensation levels 4.95 5.05 4.95 In determining net periodic benefit cost, CenterPoint Energy uses fair value, as of the beginning of the year, as its basis for determining expected return on plan assets. The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in the Consolidated Balance Sheets as well as the key assumptions of CenterPoint Energy’s pension plans. The measurement dates for plan assets and obligations were December 31, 2022 and 2021. December 31, 2022 2021 (in millions, except for actuarial assumptions) Change in Benefit Obligation Benefit obligation, beginning of year $ 2,298 $ 2,507 Service cost 29 38 Interest cost 73 59 Benefits paid (4) (509) (285) Actuarial (gain) loss (1) (338) (22) Plan amendment — 1 Benefit obligation, end of year 1,553 2,298 Change in Plan Assets Fair value of plan assets, beginning of year 2,072 2,135 Employer contributions 35 61 Benefits paid (4) (509) (285) Actual investment return (386) 161 Fair value of plan assets, end of year 1,212 2,072 Funded status, end of year $ (341) $ (226) Amounts Recognized in Balance Sheets Non-current assets $ — $ 6 Current liabilities-other (7) (7) Other liabilities-benefit obligations (334) (225) Net liability, end of year $ (341) $ (226) Actuarial Assumptions Discount rate (2) 5.15 % 2.80 % Expected return on plan assets (3) 6.50 5.00 Rate of increase in compensation levels 4.99 4.95 Interest crediting rate 3.00 2.25 (1) Significant sources of gain for 2022 include the increase in discount rate from 2.80% to 5.15%, partially offset by significant sources of loss that include expected return on assets exceeding actual return on plan assets during 2022. (2) The discount rate assumption was determined by matching the projected cash flows of CenterPoint Energy’s plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. (3) The expected rate of return assumption was developed using the targeted asset allocation of CenterPoint Energy’s plans and the expected return for each asset class. (4) Benefits paid for 2022 includes $136 million related to the 2022 Annuity Lift-Out. The following table displays pension benefits related to CenterPoint Energy’s pension plans that have accumulated benefit obligations in excess of plan assets: December 31, 2022 2021 Pension Pension Pension Pension (in millions) Accumulated benefit obligation $ 1,497 $ 51 $ 2,216 $ 62 Projected benefit obligation 1,502 51 2,237 62 Fair value of plan assets 1,212 — 2,072 — The accumulated benefit obligation for all defined benefit pension plans on CenterPoint Energy’s Consolidated Balance Sheets was $1,548 million and $2,278 million as of December 31, 2022 and 2021, respectively. (c) Postretirement Benefits CenterPoint Energy provides certain healthcare and life insurance benefits for eligible retired employees on both a contributory and non-contributory basis. The Registrants’ employees (other than employees of Vectren and its subsidiaries) who were hired before January 1, 2018 and who have met certain age and service requirements at retirement, as defined in the plans, are eligible to participate in these benefit plans, provided, however, that life insurance benefits are available only for eligible retired employees who retired before January 1, 2022. Employees hired on or after January 1, 2018 are not eligible for these benefits, except that such employees represented by IBEW Local Union 66 are eligible to participate in certain of the benefits, subject to the applicable age and service requirements. With respect to retiree medical and prescription drug benefits, and, effective January 1, 2021, dental and vision benefits, employees represented by the IBEW Local Union 66 who retire on or after January 1, 2017, and their dependents, receive any such benefits exclusively through the NECA/IBEW Family Medical Care Plan pursuant to the terms of the applicable collective bargaining agreement. Houston Electric and CERC are required to fund a portion of their obligations in accordance with rate orders. All other obligations are funded on a pay-as-you-go basis. CenterPoint Energy, through Vectren, also maintains a postretirement benefit plan that provides health care and life insurance benefits, which are a combination of self-insured and fully insured programs, to eligible Vectren retirees on both a contributory and non-contributory basis. Postretirement benefits are accrued over the active service period of employees. The net postretirement benefit cost includes the following components: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 2 $ — $ 1 $ 2 $ — $ 1 $ 2 $ — $ 1 Interest cost (2) 9 4 3 9 4 3 11 5 4 Expected return on plan assets (2) (5) (4) (1) (4) (3) (1) (5) (4) (1) Amortization of prior service cost (credit) (2) (3) (4) 2 (4) (5) 1 (4) (5) 1 Amortization of net loss (2) (4) (2) (1) — — — — — — Net postretirement benefit cost (credit) $ (1) $ (6) $ 4 $ 3 $ (4) $ 4 $ 4 $ (4) $ 5 (1) Amounts presented in the table above are included in Operation and maintenance expense in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. (2) Amounts presented in the table above are included in Other, net in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals. The following assumptions were used to determine net periodic cost relating to postretirement benefits: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC Discount rate 2.85 % 2.85 % 2.85 % 2.50 % 2.50 % 2.50 % 3.25 % 3.25 % 3.25 % Expected return on plan assets 3.22 3.32 2.86 3.20 3.30 2.85 3.95 4.05 3.35 The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in consolidated balance sheets and the key assumptions of the postretirement plans. The measurement dates for plan assets and benefit obligations were December 31, 2022 and 2021. December 31, 2022 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions, except for actuarial assumptions) Change in Benefit Obligation Benefit obligation, beginning of year $ 336 $ 148 $ 118 $ 366 $ 168 $ 122 Service cost 2 — 1 2 — 1 Interest cost 9 4 3 9 4 3 Participant contributions 6 2 3 7 2 3 Benefits paid (20) (7) (8) (21) (9) (8) Early Retiree Reinsurance Program — — — 20 — 11 Plan amendment 3 — 2 — 5 — Actuarial (gain) loss (1) (73) (32) (27) (47) (22) (14) Benefit obligation, end of year 263 115 92 336 148 118 Change in Plan Assets Fair value of plan assets, beginning of year 132 104 29 134 106 28 Employer contributions 8 1 4 7 1 4 Participant contributions 6 2 3 7 2 3 Benefits paid (20) (7) (8) (21) (9) (8) Actual investment return (17) (16) (3) 5 4 2 Fair value of plan assets, end of year 109 84 25 132 104 29 Funded status, end of year $ (154) $ (31) $ (67) $ (204) $ (44) $ (89) Amounts Recognized in Balance Sheets Current liabilities — other $ (7) $ — $ (4) $ (7) $ — $ (4) Other liabilities — benefit obligations (147) (31) (64) (197) (44) (85) Net liability, end of year $ (154) $ (31) $ (68) $ (204) $ (44) $ (89) Actuarial Assumptions Discount rate (2) 5.15 % 5.15 % 5.15 % 2.85 % 2.85 % 2.85 % Expected return on plan assets (3) 3.66 3.75 3.35 3.22 3.32 2.86 Medical cost trend rate assumed for the next year - Pre-65 6.50 6.50 6.50 6.00 6.00 6.00 Medical/prescription drug cost trend rate assumed for the next year - Post-65 23.66 23.66 23.66 18.71 18.71 18.71 Prescription drug cost trend rate assumed for the next year - Pre-65 8.00 8.00 8.00 8.00 8.00 8.00 Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 4.50 4.50 4.50 4.50 4.50 Year that the cost trend rates reach the ultimate trend rate - Pre-65 2032 2032 2032 2029 2029 2029 Year that the cost trend rates reach the ultimate trend rate - Post-65 2032 2032 2032 2030 2030 2030 (1) Significant sources of gain for 2022 include updated life insurance rates and the increase in discount rate from 2.85% to 5.15%, offset by significant sources of loss including an increase in crediting rate and updated claims. (2) The discount rate assumption was determined by matching the projected cash flows of the plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. (3) The expected rate of return assumption was developed using the targeted asset allocation of the plans and the expected return for each asset class. (d) Accumulated Other Comprehensive Income (Loss) (CenterPoint Energy and CERC) CenterPoint Energy recognizes the funded status of its pension and other postretirement plans on its Consolidated Balance Sheets. To the extent this obligation exceeds amounts previously recognized in the Statements of Consolidated Income, CenterPoint Energy records a regulatory asset for that portion related to its rate regulated utilities. To the extent that excess liability does not relate to a rate regulated utility, the offset is recorded as a reduction to equity in accumulated other comprehensive income. Amounts recognized in accumulated other comprehensive loss (gain) consist of the following: December 31, 2022 2021 Pension Postretirement Pension Postretirement CenterPoint Energy CenterPoint Energy CERC CenterPoint Energy CenterPoint Energy CERC (in millions) Unrecognized actuarial loss (gain) $ 70 $ (36) $ (28) $ 99 $ (23) $ (18) Unrecognized prior service cost — 13 11 — 13 12 Net amount recognized in accumulated other comprehensive loss (gain) $ 70 $ (23) $ (17) $ 99 $ (10) $ (6) The changes in plan assets and benefit obligations recognized in other comprehensive income during 2022 are as follows: Pension Postretirement CenterPoint Energy CenterPoint Energy CERC (in millions) Net loss (gain) $ 45 $ (13) $ (16) Amortization of net loss (7) (1) (1) Amortization of prior service cost — 1 1 Settlement (67) — — Total recognized in comprehensive income $ (29) $ (13) $ (16) Total recognized in net periodic costs and Other comprehensive income $ 142 $ (19) $ (15) (e) Pension Plan Assets (CenterPoint Energy) In managing the investments associated with the benefit plans, CenterPoint Energy’s objective is to achieve and maintain a fully funded plan. This objective is expected to be achieved through an investment strategy that manages liquidity requirements while maintaining a long-term horizon in making investment decisions and efficient and effective management of plan assets. As part of the investment strategy discussed above, CenterPoint Energy maintained the following weighted average allocation targets for its pension plans as of December 31, 2022: Minimum Maximum U.S. equity 17 % 27 % International equity 9 % 19 % Real estate 2 % 11 % Fixed income 54 % 64 % Cash — % 2 % The following tables set forth by level, within the fair value hierarchy (see Note 10), CenterPoint Energy’s pension plan assets at fair value as of December 31, 2022 and 2021: Fair Value Measurements as of December 31, 2022 2021 (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total (in millions) Cash $ 7 $ — $ — $ 7 $ 26 $ — $ — $ 26 Corporate bonds: Investment grade or above — 467 — 467 — 833 — 833 Equity securities: U.S. companies 29 — — 29 89 — — 89 Cash received as collateral from securities lending 47 — — 47 80 — — 80 U.S. treasuries and government agencies 163 — — 163 285 — — 285 Mortgage backed securities — 6 — 6 — 7 — 7 Asset backed securities — 2 — 2 — 3 — 3 Municipal bonds — 24 — 24 — 40 — 40 Mutual funds (2) — — — — — — — — International government bonds — 10 — 10 — 20 — 20 Obligation to return cash received as collateral from securities lending (47) — — (47) (80) — — (80) Total investments at fair value $ 199 $ 509 $ — $ 708 $ 400 $ 903 $ — $ 1,303 Investments measured by net asset value per share or its equivalent (1) (2) 504 769 Total Investments $ 1,212 $ 2,072 (1) Represents investments in pooled investment funds and common collective trust funds. (2) The amounts invested in pooled investment funds were allocated to real estate. The amounts invested common collective trust funds were allocated as follows: As of December 31, 2022 2021 Common Collective Trust Funds Common Collective Trust Funds International equities 40 % 41 % U.S. equities 56 % 58 % Fixed income 4 % 1 % Level 2 investments, which do not have a quoted price in active market, are valued using the market data provided by independent pricing services or major market makers, to arrive at a price a dealer would pay for the security. The pension plans utilized both exchange traded and over-the-counter financial instruments such as futures, interest rate options and swaps that were marked to market daily with the gains/losses settled in the cash accounts. The pension plans did not include any holdings of CenterPoint Energy Common Stock as of December 31, 2022 or 2021. (f) Postretirement Plan Assets In managing the investments associated with the postretirement plans, the Registrants’ primary objective is to preserve and improve the funded status of the plan, while minimizing volatility. This objective is expected to be achieved through an investment strategy that manages liquidity requirements while maintaining a long-term horizon in making investment decisions and efficient and effective management of plan assets. As part of the investment strategy discussed above, the Registrants maintained the following weighted average allocation targets for the postretirement plans as of December 31, 2022: CenterPoint Energy Houston Electric CERC Minimum Maximum Minimum Maximum Minimum Maximum U.S. equities 13 % 23 % 13 % 23 % 15 % 25 % International equities 3 % 13 % 3 % 13 % 2 % 12 % Fixed income 69 % 79 % 69 % 79 % 68 % 78 % Cash — % 2 % — % 2 % — % 2 % The following table presents mutual funds by level, within the fair value hierarchy, the Registrants’ postretirement plan assets at fair value as of December 31, 2022 and 2021: Fair Value Measurements as of December 31, 2022 2021 Mutual Funds (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total (in millions) CenterPoint Energy $ 109 $ — $ — $ 109 $ 133 $ — $ — $ 133 Houston Electric 84 — — 84 105 — — 105 CERC 25 — — 25 28 — — 28 The amounts invested in mutual funds were allocated as follows: As of December 31, 2022 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC Fixed income 74 % 74 % 74 % 72 % 73 % 71 % U.S. equities 18 % 17 % 20 % 20 % 19 % 22 % International equities 8 % 8 % 6 % 8 % 8 % 7 % (g) Benefit Plan Contributions The Registrants made the following contributions in 2022 and are required to make the following minimum contributions in 2023 to the indicated benefit plans below: Contributions in 2022 Expected Minimum Contributions in 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Qualified pension plans $ 27 $ — $ — $ — $ — $ — Non-qualified pension plans 8 — — 7 — — Postretirement benefit plans 8 1 4 8 1 4 The following benefit payments are expected to be paid by the pension and postretirement benefit plans: Pension Postretirement Benefits CenterPoint CenterPoint Houston Electric CERC (in millions) 2023 $ 134 $ 15 $ 6 $ 6 2024 138 17 7 6 2025 137 18 8 6 2026 134 19 9 7 2027 134 20 9 7 2028-2032 608 106 49 35 (h) Savings Plan CenterPoint Energy maintains the CenterPoint Energy Savings Plan, a tax-qualified employee savings plan that includes a cash or deferred arrangement under Section 401(k) of the Code, and an employee stock ownership plan under Section 4975(e)(7) of the Code. Under the plan, participating employees may make pre-tax or Roth contributions and, if eligible, after-tax contributions up to certain federally mandated limits. Participating Registrants provide matching contributions and, as of January 1, 2020, for certain eligible employees, nonelective contributions up to certain limits. CenterPoint Energy, through the Merger, also acquired additional defined contribution retirement savings plans sponsored by Vectren and its subsidiaries that are qualified under sections 401(a) and 401(k) of the Code, one of which merged into the CenterPoint Energy Savings Plan as of January 1, 2020 and one of which merged into the CenterPoint Energy Savings Plan as of January 1, 2022. As of January 1, 2022, the CenterPoint Energy Savings Plan is the only remaining qualified defined contribution retirement savings plan maintained by CenterPoint Energy. The CenterPoint Energy Savings Plan has significant holdings of Common Stock. As of December 31, 2022, 7,335,725 shares of Common Stock were held by the savings plan, which represented approximately 9% of its investments. Given the concentration of the investments in Common Stock, the savings plan and its participants have market risk related to this investment. The savings plan limits the percentage of future contributions that can be invested in Common Stock to 25% and prohibits transfers of account balances where the transfer would result in more than 25% of a participant’s total account balance invested in Common Stock. CenterPoint Energy allocates the savings plan benefit expense to Houston Electric and CERC related to their respective employees. The following table summarizes the Registrants’ savings plan benefit expense for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Savings plan benefit expenses (1) $ 72 $ 23 $ 22 $ 58 $ 20 $ 23 $ 58 $ 18 $ 25 (1) Amounts presented in the table above are included in Operation and maintenance expense in the Registrants’ respective Statements of Consolidated Income and shown prior to any amounts capitalized. (i) Other Benefits Plans The Registrants participate in CenterPoint Energy’s plans that provide postemployment benefits for certain former or inactive employees, their beneficiaries and covered dependents, after employment but before retirement (primarily healthcare and life insurance benefits for participants in the long-term disability plan). CenterPoint Energy maintains non-qualified deferred compensation plans that provide benefits payable to eligible directors, officers and select employees or their designated beneficiaries at specified future dates or upon termination, retirement or death. Benefit payments are made from the general assets of the participating Registrants or, in the case of certain plans, from a rabbi trust that is a grantor trust and remains subject to the claims of general creditors under applicable state and federal law. Expenses related to other benefit plans were recorded as follows: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Postemployment benefits $ 4 $ 1 $ 1 $ 3 $ 1 $ 2 $ 1 $ 1 $ — Deferred compensation plans 1 — — 3 — — 4 1 — Amounts related to other benefit plans were included in Benefit Obligations in the Registrants’ accompanying Consolidated Balance Sheets as follows: December 31, 2022 December 31, 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Postemployment benefits $ 9 $ 3 $ 4 $ 8 $ 3 $ 5 Deferred compensation plans 28 4 1 40 6 4 Split-dollar life insurance arrangements 22 1 — 29 1 — (j) Change in Control Agreements and Other Employee Matters CenterPoint Energy has a change in control plan, which was amended and restated on May 1, 2017. The plan generally provides, to the extent applicable, in the case of a change in control of CenterPoint Energy and covered termination of employment, for severance benefits of up to three times annual base salary plus bonus, and other benefits. Certain CenterPoint Energy officers are participants under the plan. Certain key employees of a subsidiary of Vectren have employment agreements that provide payments and other benefits upon a covered termination of employment. As of December 31, 2022, the Registrants’ employees were covered by collective bargaining agreements as follows: Percentage of Employees Covered Agreement Expiration CenterPoint Energy Houston Electric CERC IBEW Local 66 May 2023 16 % 54 % — % OPEIU Local 12 December 2025 2 % — % 2 % Gas Workers Union Local 340 April 2025 5 % — % 13 % IBEW Locals 1393 and USW Locals 12213 & 7441 December 2023 3 % — % 8 % IBEW Locals 949 December 2025 3 % — % 8 % USW Locals 13-227 June 2027 6 % — % 14 % USW Locals 13-1 July 2027 — % — % 1 % IBEW Local 702 June 2025 3 % — % — % Teamsters Local 135/215 September 2024 — % — % — % UWUA Local 175 October 2024 1 % — % 4 % Total 39 % 54 % 50 % The collective bargaining agreements with IBEW 1393, USW 12213, USW 7441 related to Natural Gas employees are scheduled to expire in December 2023 and the collective bargaining agreement with IBEW 66 related to Houston Electric employees is scheduled to expire in May 2023; negotiations of these agreements are expected to be completed before the respective expirations. Board of Directors Actions . On July 22, 2021, CenterPoint Energy announced the decision of the independent directors of the Board to implement a new independent Board leadership and governance structure and appointed a new independent chair of the Board. To implement this new governance structure, the independent directors of the Board eliminated the Executive Chairman position that was formerly held by Milton Carroll. On the approval and recommendation of the Compensation Committee and approval of the Board (acting solely through its independent directors), CenterPoint Energy entered into a separation agreement between CenterPoint Energy and Mr. Carroll, dated July 21, 2021. Under the terms of the separation agreement, Mr. Carroll exited the positions of Executive Chairman on July 21, 2021 and Board member on September 30, 2021. Under the terms of the separation agreement, Mr. Carroll received a lump sum cash payment of $28 million and his separation was treated as an “enhanced retirement” for purposes of his outstanding 2019, 2020 and 2021 equity award agreements. On the approval and recommendation of the Compensation Committee and approval of the Board (acting solely through its independent directors), CenterPoint Energy has entered into a retention incentive agreement with David J. Lesar, President and Chief Executive Officer of CenterPoint Energy, dated July 20, 2021. For information about the classification of this award, see Note 12. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Registrants are exposed to various market risks. These risks arise from transactions entered into in the normal course of business. The Registrants utilize derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices, weather and interest rates on operating results and cash flows. (a) Non-Trading Activities Commodity Derivative Instruments (CenterPoint Energy and CERC). CenterPoint Energy and CERC, through their Indiana utilities, enter into certain derivative instruments to mitigate the effects of commodity price movements. Outstanding derivative instruments designated as economic hedges at the Indiana Utilities hedge long-term variable rate natural gas purchases. The Indiana Utilities have authority to refund and recover mark-to-market gains and losses associated with hedging natural gas purchases, and thus the gains and losses on derivatives are deferred in a regulatory liability or asset. All other financial instruments do not qualify or are not designated as cash flow or fair value hedges. Interest Rate Risk Derivative Instruments. From time to time, the Registrants may enter into interest rate derivatives that are designated as economic or cash flow hedges. The objective of these hedges is to offset risk associated with interest rates borne by the Registrants in connection with an anticipated future fixed rate debt offering or other exposure to variable rate debt. The Indiana Utilities have authority to refund and recover mark-to-market gains and losses associated with hedging financing activity, and thus the gains and losses on derivatives are deferred in a regulatory liability or asset. For the impacts of cash flow hedges to Accumulated other comprehensive income, see Note 12. The table below summarizes CenterPoint Energy’s outstanding interest rate hedging activity: December 31, 2022 December 31, 2021 Hedging Classification Notional Principal (in millions) Economic hedge (1) $ 84 $ 84 (1) Relates to interest rate derivative instruments at SIGECO. Weather Hedges (CenterPoint Energy and CERC). As of December 31, 2022, CenterPoint Energy and CERC had weather normalization or other rate mechanisms that largely mitigate the impact of weather on Natural Gas in Indiana, Louisiana, Mississippi, Minnesota and Ohio, as applicable. CenterPoint Energy’s and CERC’s Natural Gas in Texas and CenterPoint Energy’s electric operations in Texas and Indiana do not have such mechanisms, although fixed customer charges are historically higher in Texas for Natural Gas compared to its other jurisdictions. As a result, fluctuations from normal weather may have a positive or negative effect on CenterPoint Energy’s and CERC’s Natural Gas’ results in Texas and on CenterPoint Energy’s electric operations’ results in its Texas and Indiana service territories. Houston Electric and Indiana Electric do not enter into weather hedges. CenterPoint Energy and CERC did not enter into any weather hedges during the year ended December 31, 2022. (b) Derivative Fair Values and Income Statement Impacts (CenterPoint Energy and CERC) The following tables present information about derivative instruments and hedging activities. The first table provides a balance sheet overview of Derivative Assets and Liabilities as of December 31, 2022 and 2021, while the last table provides a breakdown of the related income statement impacts for the years ending December 31, 2022, 2021 and 2020. Fair Value of Derivative Instruments and Hedged Items (CenterPoint Energy and CERC) CenterPoint Energy December 31, 2022 December 31, 2021 Balance Sheet Location Derivative Derivative Derivative Derivative (in millions) Derivatives not designated as hedging instruments: Natural gas derivatives (1) Current Assets: Non-trading derivative assets $ 9 $ — $ 9 $ — Interest rate derivatives Current Assets: Non-trading derivative assets 1 — — — Natural gas derivatives (1) Other Assets: Non-trading derivative assets 2 — 5 — Interest rate derivatives Current Liabilities: Non-trading derivative liabilities — — — 2 Interest rate derivatives Other Liabilities: Non-trading derivative liabilities — — — 12 Indexed debt securities derivative (2) Current Liabilities — 578 — 903 Total $ 12 $ 578 $ 14 $ 917 CERC December 31, 2022 December 31, 2021 Balance Sheet Location Derivative Derivative Liabilities Derivative Derivative Liabilities Derivatives not designated as hedging instruments: (in millions) Natural gas derivatives (1) Current Assets: Non-trading derivative assets $ 7 $ — $ 8 $ — Natural gas derivatives (1) Other Assets: Non-trading derivative assets 2 — 4 — Total $ 9 $ — $ 12 $ — (1) Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract is in an asset position with no offsetting amount. (2) Derivative component of the ZENS obligation that represents the ZENS holder’s option to receive the appreciated value of the reference shares at maturity. See Note 11 for further information. Income Statement Impact of Hedge Accounting Activity (CenterPoint Energy) Year Ended December 31, Income Statement Location 2022 2021 2020 (in millions) Effects of derivatives not designated as hedging instruments on the income statement: Indexed debt securities derivative Gain (loss) on indexed debt securities $ 325 $ 50 $ (60) Total CenterPoint Energy $ 325 $ 50 $ (60) (c) Credit Risk Contingent Features (CenterPoint Energy) Certain of CenterPoint Energy’s derivative instruments contain provisions that require CenterPoint Energy’s debt to maintain an investment grade credit rating on its long-term unsecured unsubordinated debt from S&P and Moody’s. If CenterPoint Energy’s debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment. As of December 31, 2022 2021 (in millions) Aggregate fair value of derivatives with credit-risk-related contingent features in a liability position $ — $ 14 Fair value of collateral already posted — 7 Additional collateral required to be posted if credit risk contingent features triggered (1) — 7 (1) The maximum collateral required if further escalating collateral is triggered would equal the net liability position. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities that are recorded at fair value in the Registrants’ 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, as well as natural gas inventory that has been designated as the hedged item in a fair value hedge. 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 the Registrants’ Level 2 natural gas derivative assets or liabilities. CenterPoint Energy’s Level 2 indexed debt securities derivative is valued using an option model and a discounted cash flow model, which uses projected dividends on the ZENS-Related Securities and a discount rate as observable inputs. 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 the Registrants’ judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Registrants develop these inputs based on the best information available, including the Registrants’ own data. The Registrants determine the appropriate level for each financial asset and liability on a quarterly basis and recognize transfers between levels at the end of the reporting period. The following tables present information about the Registrants’ assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2022 and December 31, 2021, and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value. CenterPoint Energy December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Equity securities $ 510 $ — $ — $ 510 $ 1,439 $ — $ — $ 1,439 Investments, including money market funds (1) 32 — — 32 42 — — 42 Interest rate derivatives — 1 — 1 — — — — Natural gas derivatives — 11 — 11 — 14 — 14 Total assets $ 542 $ 12 $ — $ 554 $ 1,481 $ 14 $ — $ 1,495 Liabilities Indexed debt securities derivative $ — $ 578 $ — $ 578 $ — $ 903 $ — $ 903 Interest rate derivatives — — — — — 14 — 14 Total liabilities $ — $ 578 $ — $ 578 $ — $ 917 $ — $ 917 Houston Electric December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 17 $ — $ — $ 17 $ 27 $ — $ — $ 27 Total assets $ 17 $ — $ — $ 17 $ 27 $ — $ — $ 27 CERC December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 14 $ — $ — $ 14 $ 14 $ — $ — $ 14 Natural gas derivatives — 9 — 9 — 12 — 12 Total assets $ 14 $ 9 $ — $ 23 $ 14 $ 12 $ — $ 26 (1) Amounts are included in Prepaid and Other Current Assets in the respective Consolidated Balance Sheets. During 2022 and 2021, CenterPoint Energy did not have any assets or liabilities designated as Level 3. Items Measured at Fair Value on a Nonrecurring Basis For a discussion of the valuation of the Arkansas and Oklahoma Natural Gas businesses in 2021, CenterPoint Energy’s investment in Enable and the Infrastructure Services and Energy Services Disposal Groups in 2020, see Note 4. For a discussion of goodwill impairment charges, see Note 6. 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 equity securities, including ZENS related derivative liabilities, 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 a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy. December 31, 2022 December 31, 2021 CenterPoint Energy (1) Houston Electric (1) CERC CenterPoint Energy (1) Houston Electric (1) CERC Long-term debt, including current maturities (in millions) Carrying amount $ 16,338 $ 6,353 $ 4,826 $ 16,086 $ 5,495 $ 5,552 Fair value 14,990 5,504 4,637 17,385 6,230 5,999 (1) Includes Securitization Bond debt. |
Equity Securities and Indexed D
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) | 12 Months Ended |
Dec. 31, 2022 | |
Indexed Debt Securities [Abstract] | |
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) | Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) (a) Equity Securities During February and March 2022, CenterPoint Energy completed the execution of its previously announced plan to exit the midstream sector by selling the remaining Energy Transfer Common Units and Energy Transfer Series G Preferred Units it held as discussed below. CenterPoint Energy used the proceeds from these sales to redeem outstanding debt and pay incurred expenses associated with the early redemptions. See Note 13 for further information. CenterPoint Energy’s sales of equity securities during the year ended December 31, 2022 are as follows: Equity Security/Date Sold Units Sold Proceeds (1) (in millions) Energy Transfer Common Units February and March 2022 50,999,768 $ 515 Energy Transfer Series G Preferred Units March 2022 192,390 $ 187 (1) Proceeds are net of transaction costs. Gains and losses on equity securities, net of transaction costs, are recorded as Gain (Loss) on Equity Securities in CenterPoint Energy’s Statements of Consolidated Income. Gains (Losses) on Equity Securities Year Ended December 31, 2022 2021 2020 (in millions) AT&T Common $ (63) $ (43) $ (105) Charter Common (273) (8) 154 WBD Common 23 — — Energy Transfer Common Units 95 (124) — Energy Transfer Series G Preferred Units (9) 2 — Other — 1 — $ (227) $ (172) $ 49 CenterPoint Energy recorded unrealized gains (losses) of $(313) million, $(52) million, and $49 million for the years ended December 31, 2022, 2021, and 2020, respectively, for equity securities held as of December 31, 2022, 2021, and 2020. CenterPoint Energy and its subsidiaries hold shares of certain securities detailed in the table below, which are classified as trading securities. Shares of AT&T Common, Charter Common and WBD Common are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. Shares Held at December 31, Carrying Value at December 31, 2022 2021 2022 2021 (in millions) AT&T Common 10,212,945 10,212,945 188 $ 251 Charter Common 872,503 872,503 296 569 WBD Common 2,470,685 — 23 — Energy Transfer Common Units — 50,999,768 — 420 Energy Transfer Series G Preferred Units — 192,390 — 196 Other 3 3 $ 510 $ 1,439 (b) ZENS In September 1999, CenterPoint Energy issued ZENS having an original principal amount of $1.0 billion of which $828 million remained outstanding as of December 31, 2022. Each ZENS is 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 attributable to such note. The number and identity of the reference shares attributable to each ZENS are adjusted for certain corporate events. CenterPoint Energy’s reference shares for each ZENS consisted of the following: December 31, 2022 2021 (in shares) AT&T Common 0.7185 0.7185 Charter Common 0.061382 0.061382 WBD Common 0.173817 — CenterPoint Energy pays interest on the ZENS at an annual rate of 2% plus the amount of any quarterly cash dividends paid in respect of the reference shares attributable to the ZENS. The principal amount of the ZENS is subject to increases or decreases to the extent that the annual yield from interest and cash dividends on the reference shares is less than or more than 2.309%. The adjusted principal amount is defined in the ZENS instrument as “contingent principal.” As of December 31, 2022, the ZENS, having an original principal amount of $828 million and a contingent principal amount of $26 million, were outstanding and were exchangeable, at the option of the holders, for cash equal to 95% of the market value of the reference shares attributable to the ZENS. As of December 31, 2022, the market value of such shares was approximately $507 million, which would provide an exchange amount of $582 for each $1,000 original principal amount of ZENS. At maturity of the ZENS in 2029, CenterPoint Energy will be obligated to pay in cash the higher of the contingent principal amount of the ZENS or an amount based on the then-current market value of the reference shares, which will include any additional publicly-traded securities distributed with respect to the current reference shares prior to maturity. The ZENS obligation is bifurcated into a debt component and a derivative component (the holder’s option to receive the appreciated value of the reference shares at maturity). The bifurcated debt component accretes through interest charges annually up to the contingent principal amount of the ZENS in 2029. Such accretion will be reduced by annual cash interest payments, as described above. The derivative component is recorded at fair value and changes in the fair value of the derivative component are recorded in CenterPoint Energy’s Statements of Consolidated Income. Changes in the fair value of the ZENS-Related Securities held by CenterPoint Energy are expected to substantially offset changes in the fair value of the derivative component of the ZENS. The following table sets forth summarized financial information regarding CenterPoint Energy’s investment in ZENS-Related Securities and each component of CenterPoint Energy’s ZENS obligation. ZENS-Related Debt Derivative (in millions) Balance as of December 31, 2019 $ 822 $ 19 $ 893 Accretion of debt component of ZENS — 17 — 2% interest paid — (16) — Distribution to ZENS holders — (5) — Loss on indexed debt securities — — 60 Gain on ZENS-Related Securities 49 — — Balance as of December 31, 2020 871 15 953 Accretion of debt component of ZENS — 17 — 2% interest paid — (17) — Distribution to ZENS holders — (5) — Gain on indexed debt securities — — (50) Loss on ZENS-Related Securities (51) — — Balance as of December 31, 2021 820 10 903 Accretion of debt component of ZENS — 17 — 2% interest paid — (17) — Distribution to ZENS holders — (3) — Gain on indexed debt securities — — (325) Loss on ZENS-Related Securities (313) — — Balance as of December 31, 2022 $ 507 $ 7 $ 578 On May 17, 2021, AT&T announced that it had entered into a definitive agreement with Discovery, Inc. to combine their media assets into a new publicly traded company to be called Warner Bros. Discovery. The transaction closed on April 8, 2022. Pursuant to the definitive agreement, AT&T shareholders received 0.241917 shares of WBD Common for each share of AT&T Common owned, representing 71% of the new company. Upon the closing of the transaction, reference shares attributable to ZENS now consist of 0.7185 shares of AT&T Common, 0.061382 shares of Charter Common and 0.173817 shares of WBD Common. |
Equity (CenterPoint Energy)
Equity (CenterPoint Energy) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Equity (CenterPoint Energy) | Equity (CenterPoint Energy) Dividends Declared and Paid (CenterPoint Energy) CenterPoint Energy declared and paid dividends on its Common Stock during 2022, 2021 and 2020 as presented in the table below: Dividends Declared Per Share Dividends Paid Per Share 2022 2021 2020 (2) 2022 2021 2020 (2) Common Stock $ 0.7200 $ 0.6600 $ 0.9000 $ 0.7000 $ 0.6500 $ 0.7400 Series A Preferred Stock 61.2500 61.2500 91.8750 61.2500 61.2500 61.2500 Series B Preferred Stock — 35.0000 87.5000 — 52.5000 70.0000 Series C Preferred Stock (1) — — 0.6100 — 0.1600 0.4500 (1) The Series C Preferred Stock was entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. The per share amount reflects the dividend per share of Common Stock as if the Series C Preferred Stock were converted into Common Stock. All of the outstanding Series C Preferred Stock was converted to Common Stock during 2021 as described below. (2) On April 1, 2020, in response to the reduction in cash flow related to the reduction in Enable quarterly common unit distributions announced by Enable on April 1, 2020, CenterPoint Energy announced a reduction of its quarterly Common Stock dividend per share from $0.2900 to $0.1500. Preferred Stock (CenterPoint Energy) Liquidation Preference Per Share Shares Outstanding as of December 31, Outstanding Value as of December 31, 2022 2021 2020 2022 2021 2020 (in millions, except shares and per share amount) Series A Preferred Stock $ 1,000 800,000 800,000 800,000 $ 790 $ 790 $ 790 Series B Preferred Stock 1,000 — — 977,400 — — 950 Series C Preferred Stock 1,000 — — 625,000 — — 623 800,000 800,000 2,402,400 $ 790 $ 790 $ 2,363 Dividend Requirement on Preferred Stock Year Ended December 31, 2022 2021 2020 (in millions) Series A Preferred Stock $ 49 $ 49 $ 49 Series B Preferred Stock — 46 68 Series C Preferred Stock — — 27 Preferred dividend requirement 49 95 144 Amortization of beneficial conversion feature — — 32 Total income allocated to preferred shareholders $ 49 $ 95 $ 176 Series A Preferred Stock On August 22, 2018, CenterPoint Energy completed the issuance of 800,000 shares of its Series A Preferred Stock, at a price of $1,000 per share, resulting in net proceeds of $790 million after issuance costs. The aggregate liquidation value of the Series A Preferred Stock is $800 million with a per share liquidation value of $1,000. CenterPoint Energy used the net proceeds from the Series A Preferred Stock offering to fund a portion of the Merger and to pay related fees and expenses. Dividends. The Series A Preferred Stock accrue cumulative dividends, calculated as a percentage of the stated amount per share, at a fixed annual rate of 6.125% per annum to, but excluding, September 1, 2023, and at an annual rate of three-month LIBOR plus a spread of 3.270% thereafter to be paid in cash if, when and as declared. If declared, prior to September 1, 2023, dividends are payable semi-annually in arrears on each March 1 and September 1, beginning on March 1, 2019, and, for the period commencing on September 1, 2023, dividends are payable quarterly in arrears each March 1, June 1, September 1 and December 1, beginning on December 1, 2023. Cumulative dividends earned during the applicable periods are presented on CenterPoint Energy’s Statements of Consolidated Income as Preferred stock dividend requirement. Optional Redemption. On or after September 1, 2023, CenterPoint Energy may, at its option, redeem the Series A Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $1,000 per share, plus any accumulated and unpaid dividends thereon to, but excluding, the redemption date. At any time within 120 days after the conclusion of any review or appeal process instituted by CenterPoint Energy, if any, following the occurrence of a ratings event, CenterPoint Energy may, at its option, redeem the Series A Preferred Stock in whole, but not in part, at a redemption price in cash per share equal to $1,020 (102% of the liquidation value of $1,000) plus an amount equal to all accumulated and unpaid dividends thereon to, but excluding, the redemption date, whether or not declared. Ranking. The Series A Preferred Stock, with respect to anticipated dividends and distributions upon CenterPoint Energy’s liquidation or dissolution, or winding-up of CenterPoint Energy’s affairs, ranks or will rank: • senior to Common Stock and to each other class or series of capital stock established after the initial issue date of the Series A Preferred Stock that is expressly made subordinated to the Series A Preferred Stock; • on a parity with any class or series of capital stock established after the initial issue date of the Series A Preferred Stock that is not expressly made senior or subordinated to the Series A Preferred Stock; • junior to any class or series of capital stock established after the initial issue date of the Series A Preferred Stock that is expressly made senior to the Series A Preferred Stock; • junior to all existing and future indebtedness (including indebtedness outstanding under CenterPoint Energy’s credit facilities, senior notes and commercial paper) and other liabilities with respect to assets available to satisfy claims against CenterPoint Energy; and • structurally subordinated to any existing and future indebtedness and other liabilities of CenterPoint Energy’s subsidiaries and capital stock of CenterPoint Energy’s subsidiaries held by third parties. Voting Rights. Holders of the Series A Preferred Stock generally will not have voting rights. Whenever dividends on shares of Series A Preferred Stock have not been declared and paid for the equivalent of three or more semi-annual or six or more quarterly dividend periods (including, for the avoidance of doubt, the dividend period beginning on, and including, the original issue date and ending on, but excluding, March 1, 2019), whether or not consecutive, the holders of such shares of Series A Preferred Stock, voting together as a single class with holders of any and all other series of voting preferred stock (as defined in the Statement of Resolution for the Series A Preferred Stock) then outstanding, will be entitled at CenterPoint Energy’s next annual or special meeting of shareholders to vote for the election of a total of two additional members of CenterPoint Energy’s Board of Directors, subject to certain limitations. This right will terminate if and when all accumulated dividends have been paid in full and, upon such termination, the term of office of each director so elected will terminate at such time and the number of directors on CenterPoint Energy’s Board of Directors will automatically decrease by two, subject to the revesting of such rights in the event of each subsequent nonpayment. Series B Preferred Stock On October 1, 2018, CenterPoint Energy completed the issuance of 19,550,000 depositary shares, each representing a 1/20th interest in a share of its Series B Preferred Stock, at a price of $50 per depositary share, resulting in net proceeds of $950 million after issuance costs. The aggregate liquidation value of Series B Preferred Stock is $978 million with a per share liquidation value of $1,000. The amount issued included 2,550,000 depositary shares issued pursuant to the exercise in full of the option granted to the underwriters to purchase additional depositary shares. Dividends. Dividends on the Series B Preferred Stock were payable on a cumulative basis when, as and if declared at an annual rate of 7.00% on the liquidation value of $1,000 per share. CenterPoint Energy paid declared dividends in cash or, subject to certain limitations, in shares of Common Stock, or in any combination of cash and shares of Common Stock on March 1, June 1, September 1 and December 1 of each year, commencing on December 1, 2018 and ending on, and including, September 1, 2021. Cumulative dividends earned during the applicable periods were presented on CenterPoint Energy’s Statements of Consolidated Income as Preferred stock dividend requirement. Mandatory Conversion. Each remaining outstanding share of the Series B Preferred Stock was converted on the mandatory conversion date, September 1, 2021, into 36.7677 shares of Common Stock. The conversion rate was determined based on a preceding 20-day volume-weighted-average-price of Common Stock. Conversion of Series B Preferred Stock. During 2021, 977,400 shares of Series B Preferred Stock were converted into 35,921,441 shares of Common Stock. As of December 31, 2021, all shares of Series B Preferred Stock had been converted into shares of Common Stock. Series C Preferred Stock Private Placement (CenterPoint Energy) On May 6, 2020, CenterPoint Energy entered into agreements for the private placement of 725,000 shares of its Series C Preferred Stock, at a price of $1,000 share, resulting in net proceeds of $724 million after issuance costs. The Series C Preferred Stock was entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. Each remaining outstanding share of the Series C Preferred Stock was converted on May 7, 2021 into the number of Common Stock equal to the quotient of $1,000 divided by the prevailing conversion price, which was $15.31. Conversion of Series C Preferred Stock . During 2021, 625,000 shares of Series C Preferred Stock were converted into 40,822,990 shares of Common Stock. As of December 31, 2021, all shares of Series C Preferred Stock had been converted into shares of Common Stock. Common Stock Private Placement (CenterPoint Energy) On May 6, 2020, CenterPoint Energy entered into agreements for the private placement of 41,977,612 shares of its Common Stock, at a price of $16.08 share, resulting in net proceeds of $673 million after issuance costs. On June 1, 2020, CenterPoint Energy filed a shelf registration statement with the SEC registering these 41,977,612 shares of Common Stock. Temporary Equity (CenterPoint Energy) On the approval and recommendation of the Compensation Committee and approval of the Board (acting solely through its independent directors), CenterPoint Energy entered into a retention incentive agreement with David J. Lesar, then President and Chief Executive Officer of CenterPoint Energy, dated July 20, 2021. Pursuant to the retention incentive agreement, Mr. Lesar received equity-based awards under CenterPoint Energy’s LTIP covering a total of 1 million shares of Common Stock (Total Stock Award), which were granted in multiple annual awards. Mr. Lesar received 400 thousand restricted stock units in July 2021 that vested in December 2022 and 400 thousand restricted stock units and 200 thousand restricted stock units in February 2022 and February 2023, respectively, that will vest in December 2023. For accounting purposes, the 1 million shares under the Total Stock Award, consisting of the equity-based awards described above, were considered granted in July 2021. In the event that death, disability, termination without cause or resignation for good reason, as defined in the retention incentive agreement, had occurred prior to the full Total Stock Award being awarded, CenterPoint Energy would have paid a lump sum cash payment equal to the value of the unawarded equity-based awards, based on the closing trading price of Common Stock on the date of the event’s occurrence. Because the equity-based awards would have been redeemable for cash prior to being awarded upon events that were not probable at the grant date, the equity associated with any unawarded equity-based awards are classified as Temporary Equity on CenterPoint Energy’s Condensed Consolidated Balance Sheets. Accumulated Other Comprehensive Income (Loss) Changes in accumulated comprehensive income (loss) are as follows: Year Ended December 31, 2022 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning Balance $ (64) $ — $ 10 $ (90) $ — $ 10 Other comprehensive income (loss) before reclassifications: Remeasurement of pension and other postretirement plans (40) — 10 16 — — Other comprehensive income (loss) from unconsolidated affiliates — — — 3 — — Amounts reclassified from accumulated other comprehensive loss: Prior service cost (1) (1) — (1) 1 — 1 Actuarial losses (1) 8 — 1 7 — — Settlement (2) 67 — — 4 — — Reclassification of deferred loss from cash flow hedges realized in net income 1 — — 2 — — Tax benefit (expense) (2) — (4) (7) — (1) Net current period other comprehensive income (loss) 33 — 6 26 — — Ending Balance $ (31) $ — $ 16 $ (64) $ — $ 10 (1) Amounts are included in the computation of net periodic cost and are reflected in Other, net in each of the Registrants’ respective Statements of Consolidated Income. (2) Amounts presented represent a one-time, non-cash settlement cost (benefit), prior to regulatory deferrals, which are required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. Amounts presented in the table above are included in Other income (expense), net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals. |
Short-term Borrowings and Long-
Short-term Borrowings and Long-term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Long-term Debt | Short-term Borrowings and Long-term Debt December 31, December 31, Long-Term Current (1) Long-Term Current (1) (in millions) CenterPoint Energy: ZENS due 2029 (2) $ — $ 7 $ — $ 10 CenterPoint Energy senior notes 1.45% to 4.61% due 2024 to 2049 3,050 — 3,650 — CenterPoint Energy pollution control bonds 5.125% due 2028 (3) 68 — 68 — CenterPoint Energy commercial paper (4) (5) 1,770 — 1,400 — VUH senior notes (see Debt Exchange below) — — 377 — VUH commercial paper (4) (5) — — 350 — SIGECO first mortgage bonds 0.875% to 6.72% due 2024 to 2055 (6) 277 11 288 5 Other debt — 4 4 3 Unamortized debt issuance costs (15) — (23) — Unamortized discount and premium, net (6) — (7) — Houston Electric debt (see details below) 6,197 156 4,975 520 CERC third party debt (see details below) 3,495 1,842 4,476 7 Total CenterPoint Energy debt $ 14,836 $ 2,020 $ 15,558 $ 545 Houston Electric: General mortgage bonds 2.35% to 6.95% due 2026 to 2052 (8) $ 6,112 $ — $ 4,712 $ 300 Other 1 — — — Restoration Bond Company: System restoration bonds 4.243% due 2022 — — — 70 Bond Company IV: Transition bonds 3.028% due 2024 161 156 317 150 Unamortized debt issuance costs (50) — (36) — Unamortized discount and premium, net (27) — (18) — Total Houston Electric debt $ 6,197 $ 156 $ 4,975 $ 520 CERC (7) : Short-term borrowings: Inventory financing (9) $ — $ 11 $ — $ 7 Term loan — 500 — — Total CERC short-term borrowings — 511 — 7 Long-term debt: Senior notes 0.70% to 6.625% due 2023 to 2047 $ 2,620 $ 1,331 $ 3,500 $ — Indiana Gas senior notes 6.34% to 7.08% due 2025 to 2029 96 — 96 — Commercial paper (4) (5) 805 — 899 — Unamortized debt issuance costs (22) — (15) — Unamortized discount and premium, net (4) — (4) — Total CERC third-party long-term debt 3,495 1,331 4,476 — Indiana Gas and VEDO notes payable to CenterPoint Energy — — 1,076 — Total CERC debt $ 3,495 $ 1,842 $ 5,552 $ 7 (1) Includes amounts due or exchangeable within one year of the date noted. (2) CenterPoint Energy’s ZENS obligation is bifurcated into a debt component and an embedded derivative component. For additional information regarding ZENS, see Note 11(b). As ZENS are exchangeable for cash at any time at the option of the holders, these notes are classified as a current portion of long-term debt. (3) These pollution control bonds were secured by general mortgage bonds of Houston Electric as of December 31, 2022 and 2021 and are not reflected in Houston Electric’s consolidated financial statements because of the contingent nature of the obligations. (4) Classified as long-term debt because the termination date of the facility that backstops the commercial paper is more than one year from the date noted. (5) Commercial paper issued by CenterPoint Energy and CERC Corp. has maturities up to 60 days and 30 days, respectively, and are backstopped by the respective issuer’s long-term revolving credit facility. The VUH credit facility was terminated in connection with the Restructuring, as discussed below, and VUH no longer issues commercial paper. (6) The first mortgage bonds issued by SIGECO subject SIGECO’s properties to a lien under the related mortgage indenture as further discussed below. (7) Issued by CERC Corp. (8) The general mortgage bonds issued by Houston Electric subject Houston Electric’s properties to a lien under the General Mortgage as further discussed below. (9) Represents AMA transactions accounted for as an inventory financing. Outstanding obligations related to third-party AMAs associated with utility distribution service in Arkansas and Oklahoma of $36 million as of December 31, 2021 are reflected in current liabilities held for sale on CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets. For further information about AMAs, see Notes 4 and 15. Debt Transactions Debt Issuances. During 2022, the following debt instruments were issued or incurred: Registrant Issuance Date Debt Instrument Aggregate Principal Amount Interest Rate Maturity Date (in millions) Houston Electric February 2022 General Mortgage Bonds (1) $ 300 3.00% 2032 Houston Electric February 2022 General Mortgage Bonds (1) 500 3.60% 2052 Houston Electric September 2022 General Mortgage Bonds (2) 500 4.45% 2032 Houston Electric September 2022 General Mortgage Bonds (2) 300 4.85% 2052 Total Houston Electric (1) 1,600 CERC June 2022 Senior Notes (3) 500 4.40% 2032 CERC August 2022 Term Loan (4) 500 SOFR (5) + 0.70% 2023 Total CERC 1,000 Total CenterPoint Energy $ 2,600 (1) Total proceeds, net of discounts and issuance expenses and fees, of approximately $784 million were used for general limited liability company purposes, including capital expenditures and the repayment of all or a portion of Houston Electric’s borrowings under the CenterPoint Energy money pool. (2) Total proceeds, net of discounts and issuance expenses and fees, of approximately $789 million were used for general limited liability company purposes, including capital expenditures, the repayment of all or a portion of Houston Electric’s borrowings under the CenterPoint Energy money pool and the redemption of outstanding general mortgage bonds discussed below. (3) Total proceeds, net of discounts and issuance expenses and fees, of approximately $495 million were used for general corporate purposes, including the issuance by CERC Corp.’s current subsidiaries, Indiana Gas and VEDO, of intercompany notes to CERC Corp. in June 2022; these subsidiaries used the funds to repay intercompany debt owed to VUH in connection with the Restructuring in June 2022. (4) Total proceeds, net of discounts and issuance expenses and fees, of approximately $500 million were used for general corporate purposes, including the repayment of CERC’s outstanding commercial paper balances. The term loan is reflected in short-term borrowings on CenterPoint Energy’s and CERC’s Consolidated Balance Sheets. (5) As defined in the term loan agreement, which includes an adjustment of 0.10% per annum. On February 16, 2023, CERC Corp. entered into a $500 million term loan agreement. Borrowings under the term loan agreement bear interest at CERC Corp.’s option, at a rate equal to either (i) Term SOFR (as defined in the term loan agreement), which includes an adjustment of 0.10% per annum plus a margin of 0.85% or (ii) the alternate base rate (as defined in the term loan agreement). CERC Corp. borrowed the full $500 million at closing and intends to use the proceeds thereof for general corporate purposes, including the repayment of a portion of its outstanding commercial paper. The maturity date for the borrowings under the term loan agreement is February 15, 2024. Debt Exchange. As a part of the Restructuring, on May 27, 2022, CERC Corp. and VUH completed an exchange with holders of VUH PPNs whereby CERC Corp. issued new senior notes with an aggregate principal amount of $302 million to such holders in exchange for all of their outstanding VUH PPNs with an aggregate principal amount of $302 million. The new CERC Corp. senior notes have the same principal amount, interest rate, and payment and maturity dates as the VUH PPNs for which they were exchanged. As a result of the exchange, CERC Corp. became the creditor for the PPNs originally issued by VUH, and CERC Corp. received $302 million of cash from VUH on June 30, 2022 in full repayment of the VUH PPNs. Orders received from the IURC and PUCO allowed for the reissuance of existing debt of Indiana Gas and VEDO to CERC, the continued amortization of existing issuance expenses and discounts, and the treatment of any potential exchange fees as discounts to be amortized over the life of the debt. On September 6, 2022, CERC Corp. and VUH announced that CERC Corp. had commenced an offer to eligible holders to exchange any and all outstanding 6.10% senior notes due 2035 issued by Vectren Utility Holdings, Inc. (predecessor of VUH) for (1) up to $75 million aggregate principal amount of new senior notes issued by CERC Corp. and (2) cash. On October 5, 2022, in connection with the settlement of the exchange offer, CERC Corp. issued $75 million aggregate principal amount of 6.10% senior notes due 2035 in exchange for all outstanding VUH senior notes. The new CERC Corp. senior notes issued in the exchange offer have the same interest rate and payment and maturity dates as the VUH notes for which they were exchanged. Debt Repayments and Redemptions. During 2022, the following debt instruments were repaid at maturity or redeemed, excluding scheduled principal payments of $220 million on the Securitization bonds: Registrant Repayment/Redemption Date Debt Instrument Aggregate Principal Interest Rate Maturity Date (in millions) CERC (1) January 2022 Floating Rate Senior Notes $ 425 Three-month LIBOR plus 0.5% 2023 Total CERC 425 Houston Electric August 2022 General Mortgage Bonds 300 2.25% 2022 Houston Electric (2) October 2022 General Mortgage Bonds 200 5.60% 2023 Total Houston Electric 500 CenterPoint Energy (3) January 2022 First Mortgage Bonds 5 0.82% 2022 CenterPoint Energy (4) March 2022 Senior Notes 250 3.85% 2024 CenterPoint Energy (5) March 2022 Senior Notes 350 4.25% 2028 Total CenterPoint Energy $ 1,530 (1) In January 2022, CERC provided notice of partial redemption, and on January 31, 2022, CERC redeemed a portion ($425 million) of the outstanding $1 billion aggregate principal amount of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest on the principal amount being redeemed. (2) In September 2022, Houston Electric provided notice of redemption, and on October 17, 2022, Houston Electric redeemed $200 million aggregate principal amount, plus accrued and unpaid interest of approximately $3 million and an applicable make-whole premium of approximately $2 million, for a total redemption price of $205 million. (3) First Mortgage Bonds issued by SIGECO. (4) In March 2022, CenterPoint Energy provided notice of redemption, and on March 30, 2022, CenterPoint Energy redeemed all of the remaining outstanding senior notes of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest of approximately $2 million, the write off of issuance costs of $1 million and an applicable make-whole premium of approximately $7 million for a total redemption price of $260 million. (5) In March 2022, CenterPoint Energy provided notice of partial redemption, and on March 30, 2022, CenterPoint Energy redeemed a portion ($350 million) of the outstanding $500 million aggregate principal amount of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest of approximately $6 million, the write off of issuance costs of $3 million and an applicable make-whole premium of approximately $34 million for a total redemption price of $393 million. CenterPoint Energy and CERC recorded losses on early extinguishment of debt, including make-whole premiums and recognition of deferred debt related costs, in Interest expense and other finance charges on their respective Statements of Consolidated Income, of $47 million and $-0-, respectively, during the year ended December 31, 2022, and $53 million and $11 million, respectively for the year ended December 31, 2021, and $2 million for both for the year ended December 31, 2020. Houston Electric recorded a loss on early extinguishment of debt of $2 million during the year ended December 31, 2022, which was recorded as a regulatory asset. On December 16, 2022, SIGECO provided notice of redemption and on January 17, 2023, SIGECO redeemed $11 million aggregate principal amount of SIGECO’s outstanding first mortgage bonds due 2044 at a redemption price equal to 100% of the principal amount of the first mortgage bonds to be redeemed plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. Securitization Bonds. As of December 31, 2022, CenterPoint Energy and Houston Electric had special purpose subsidiaries consisting of the Bond Companies, which they consolidate. The consolidated special purpose subsidiaries are wholly-owned, bankruptcy remote entities that were formed solely for the purpose of purchasing and owning transition or system restoration property through the issuance of transition bonds or system restoration bonds and activities incidental thereto. These Securitization Bonds are payable only through the imposition and collection of “transition” or “system restoration” charges, as defined in the Texas Public Utility Regulatory Act, which are irrevocable, non-bypassable charges to provide recovery of authorized qualified costs. On August 15, 2022, Restoration Bond Company repaid in full its last outstanding system restoration bonds. CenterPoint Energy and Houston Electric have no payment obligations in respect of the Securitization Bonds other than to remit the applicable transition or system restoration charges they collect as set forth in servicing agreements among Houston Electric, the Bond Companies and other parties. Each special purpose entity is the sole owner of the right to impose, collect and receive the applicable transition or system restoration charges securing the bonds issued by that entity. Creditors of CenterPoint Energy or Houston Electric have no recourse to any assets or revenues of the Bond Companies (including the transition charges), and the holders of Securitization Bonds have no recourse to the assets or revenues of CenterPoint Energy or Houston Electric. Credit Facilities. On June 30, 2022, in connection with the Restructuring, VUH repaid in full all outstanding indebtedness and terminated all remaining commitments and other obligations under its $400 million amended and restated credit agreement dated as of February 4, 2021. VUH did not incur any penalties in connection with the early termination. On December 6, 2022, CenterPoint Energy, Inc. and its wholly owned subsidiaries, Houston Electric and CERC, replaced their existing revolving credit facilities with three revolving credit facilities totaling $3.75 billion in aggregate commitments. In addition, SIGECO entered into a new revolving credit facility totaling an additional $250 million in aggregate commitments. The aggregate amount of commitments among the four credit facilities total $4.0 billion. The Registrants had the following revolving credit facilities as of December 31, 2022: Execution Registrant Size of Draw Rate of SOFR plus (1) Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio Debt for Borrowed Money to Capital Ratio as of December 31, 2022 (2) Termination (in millions) December 6, 2022 CenterPoint Energy $ 2,400 1.500% 65% (3) 61.8% December 6, 2027 December 6, 2022 CenterPoint Energy (4) 250 1.125% 65% 45.2% December 6, 2027 December 6, 2022 Houston Electric 300 1.250% 67.5% (3) 54.4% December 6, 2027 December 6, 2022 CERC 1,050 1.125% 65% 49.9% December 6, 2027 Total $ 4,000 (1) Based on credit ratings as of December 31, 2022. (2) As defined in the revolving credit facility agreement, excluding Securitization Bonds. (3) For CenterPoint Energy and Houston Electric, the financial covenant limit will temporarily increase 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 12-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. (4) This credit facility was issued by SIGECO. The Registrants, as well as the subsidiaries of CenterPoint Energy discussed above, were in compliance with all financial debt covenants as of December 31, 2022. As of December 31, 2022 and 2021, the Registrants had the following revolving credit facilities and utilization of such facilities: December 31, 2022 December 31, 2021 Registrant Size of Loans Letters Commercial Weighted Average Interest Rate Size of Loans Letters Commercial Weighted Average Interest Rate (in millions, except weighted average interest rate) CenterPoint Energy (1) $ 2,400 $ — $ 11 $ 1,770 4.71 % $ 2,400 $ — $ 11 $ 1,400 0.34 % CenterPoint Energy (2) — — — — — % 400 — — 350 0.21 % Houston Electric 300 — — — — % 300 — — — — % CERC 1,050 — — 805 4.67 % 900 — — 899 0.26 % SIGECO 250 — — — — % — — — — — % Total $ 4,000 $ — $ 11 $ 2,575 $ 4,000 $ — $ 11 $ 2,649 (1) CenterPoint Energy’s outstanding commercial paper generally has maturities of 60 days or less. (2) This credit facility was issued by VUH and was terminated in connection with the Restructuring, as discussed above. Maturities. As of December 31, 2022, maturities of long-term debt through 2027, excluding the ZENS obligation and unamortized discounts, premiums and issuance costs, were as follows: CenterPoint Energy (1) Houston Electric (1) CERC Securitization Bonds (in millions) 2023 $ 1,999 $ 156 $ 1,832 $ 156 2024 1,384 161 — 161 2025 51 — 10 — 2026 860 300 60 — 2027 2,901 300 831 — (1) These maturities include Securitization Bonds principal repayments on scheduled payment dates. Liens. As of December 31, 2022, Houston Electric’s assets were subject to liens securing approximately $6.2 billion of general mortgage bonds outstanding under the General Mortgage, including approximately $68 million held in trust to secure pollution control bonds that mature in 2028 for which CenterPoint Energy is obligated. The general mortgage bonds that are held in trust to secure pollution control bonds are not reflected in Houston Electric’s consolidated financial statements because of the contingent nature of the obligations. Houston Electric may issue additional general mortgage bonds on the basis of retired bonds, 70% of property additions or cash deposited with the trustee. Houston Electric could issue approximately $4.9 billion of additional general mortgage bonds on the basis of retired bonds and 70% of property additions as of December 31, 2022. No first mortgage bonds are outstanding under the M&DOT, and Houston Electric is contractually obligated to not issue any additional first mortgage bonds under the M&DOT and is undertaking actions to release the lien of the M&DOT and terminate the M&DOT. As of December 31, 2022, SIGECO had approximately $288 million aggregate principal amount of first mortgage bonds outstanding. Generally, all of SIGECO’s real and tangible property is subject to the lien of SIGECO’s mortgage indenture. As of December 31, 2022, SIGECO was permitted to issue additional bonds under its mortgage indenture up to 60% of then currently unfunded property additions and approximately $1.4 billion of additional first mortgage bonds could be issued on this basis. The mortgage indenture was amended and restated effective as of January 1, 2023 which, among other things, permits SIGECO to issue additional bonds up to 70% of currently unfunded property additions. Other. As of December 31, 2022, certain financial institutions agreed to issue, from time to time, up to $20 million of letters of credit on behalf of certain of Vectren’s subsidiaries in exchange for customary fees. These agreements to issue letters of credit expire on February 1, 2024. As of December 31, 2022, such financial institutions had issued less than $1 million of letters of credit on behalf of these subsidiaries. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the Registrant’s income tax expense (benefit) were as follows: Year Ended December 31, 2022 2021 2020 (in millions) CenterPoint Energy - Continuing Operations Current income tax expense (benefit): Federal $ 294 $ — $ (36) State 46 (28) 32 Total current expense (benefit) 340 (28) (4) Deferred income tax expense (benefit): Federal 16 78 63 State 4 60 21 Total deferred expense 20 138 84 Total income tax expense $ 360 $ 110 $ 80 CenterPoint Energy - Discontinued Operations Current income tax expense: Federal $ — $ 91 $ 152 State — 35 28 Total current expense — 126 180 Deferred income tax expense (benefit): Federal — 127 (422) State — (52) (91) Total deferred expense (benefit) — 75 (513) Total income tax expense (benefit) $ — $ 201 $ (333) Houston Electric Current income tax expense: Federal $ 23 $ 22 $ 76 State 16 22 19 Total current expense 39 44 95 Deferred income tax expense (benefit): Federal 86 31 (42) State — 1 — Total deferred expense (benefit) 86 32 (42) Total income tax expense $ 125 $ 76 $ 53 CERC - Continuing Operations Current income tax expense (benefit): Federal $ 30 $ — $ — State 28 (25) 2 Total current expense (benefit) 58 (25) 2 Deferred income tax expense (benefit): Federal 164 67 42 State 14 34 73 Total deferred expense (benefit) 178 101 115 Total income tax expense (benefit) $ 236 $ 76 $ 117 Year Ended December 31, 2022 2021 2020 (in millions) CERC - Discontinued Operations Current income tax expense: Federal $ — $ — $ — State — — — Total current expense — — — Deferred income tax expense (benefit): Federal — — — State — — (2) Total deferred expense (benefit) — — (2) Total income tax expense (benefit) $ — $ — $ (2) A reconciliation of income tax expense (benefit) using the federal statutory income tax rate to the actual income tax expense and resulting effective income tax rate is as follows: Year Ended December 31, 2022 2021 2020 (in millions) CenterPoint Energy - Continuing Operations (1) (2) (3) Income before income taxes $ 1,417 $ 778 $ 563 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 298 163 118 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 46 63 40 State valuation allowance, net of federal income tax — (15) 1 State law change, net of federal income tax — (23) — Excess deferred income tax amortization (51) (75) (76) Goodwill impairment 84 — 39 Net operating loss carryback — — (37) Other, net (17) (3) (5) Total 62 (53) (38) Total income tax expense $ 360 $ 110 $ 80 Effective tax rate 25 % 14 % 14 % CenterPoint Energy - Discontinued Operations (4)(5) Income (loss) before income taxes $ — $ 1,019 $ (1,589) Federal statutory income tax rate — % 21 % 21 % Expected federal income tax expense (benefit) — 214 (334) Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax — 14 (60) State law change, net of federal income tax — (27) — Goodwill impairment — — 25 Tax impact of sale of Energy Services and Infrastructure Services Disposal Groups — — 30 Other, net — — 6 Total — (13) 1 Total income tax expense (benefit) $ — $ 201 $ (333) Effective tax rate — % 20 % 21 % Year Ended December 31, 2022 2021 2020 (in millions) Houston Electric (6) (7) (8) Income before income taxes $ 635 $ 457 $ 387 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 133 96 81 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 13 18 15 Excess deferred income tax amortization (18) (41) (42) Other, net (3) 3 (1) Total (8) (20) (28) Total income tax expense $ 125 $ 76 $ 53 Effective tax rate 20 % 17 % 14 % CERC - Continuing Operations (9) (10) (11) Income before income taxes $ 961 $ 466 $ 382 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 202 98 80 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 35 31 59 State law change, net of federal income tax — (9) — State valuation allowance, net of federal income tax — (15) 1 Excess deferred income tax amortization (28) (30) (29) Goodwill Impairment 30 — — Other, net (3) 1 6 Total 34 (22) 37 Total income tax expense (benefit) $ 236 $ 76 $ 117 Effective tax rate 25 % 16 % 31 % CERC - Discontinued Operations (12) Income (loss) before income taxes $ — $ — $ (68) Federal statutory income tax rate — % — % 21 % Expected federal income tax expense (benefit) — — (14) Increase in tax expense resulting from: State income tax expense, net of federal income tax — — (2) Goodwill impairment — — 10 Other, net — — 4 Total — — 12 Total income tax expense (benefit) $ — $ — $ (2) Effective tax rate — % — % 3 % (1) Recognized a $51 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, and a $84 million expense for the goodwill impairment on the Arkansas and Oklahoma Natural Gas business sale. (2) Recognized a $75 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $23 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, and a $15 million benefit for the impact of a change in the NOL carryforward period in Louisiana from 20 years to an indefinite period allowing for the release of the valuation allowance on certain Louisiana NOLs. (3) Recognized a $76 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $39 million deferred tax expense for the non-deductible portion of the goodwill impairment on SIGECO, and a $37 million benefit for the NOL carryback claim allowed by the CARES Act. (4) Recognized a $27 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions. (5) Recognized a $25 million deferred tax expense for the non-deductible portion of the goodwill impairment on both the Energy Services and Infrastructure Services Disposal Groups. Also, recognized a $30 million net tax expense on both the sale of the Energy Services and Infrastructure Services Disposal Groups. (6) Recognized a $18 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (7) Recognized a $41 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (8) Recognized a $42 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (9) Recognized a $28 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, and a $30 million expense for the goodwill impairment on the Arkansas and Oklahoma Natural Gas business sale. (10) Recognized a $9 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, a $30 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, and a $15 million benefit for the impact of a change in the NOL carryforward period in Louisiana from 20 years to an indefinite period allowing for the release of the valuation allowance on certain Louisiana NOLs. (11) Recognized a $29 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulatory in certain jurisdictions. (12) Recognized a $10 million deferred tax expense for the non-deductible portion of the goodwill impairment on the Energy Services Disposal Group. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows: December 31, 2022 2021 (in millions) CenterPoint Energy Deferred tax assets: Benefits and compensation $ 121 $ 120 Regulatory liabilities 378 396 Loss and credit carryforwards 84 76 Asset retirement obligations 95 130 Indexed debt securities derivative — 36 Investment in unconsolidated affiliates — 1 Other 49 50 Valuation allowance (10) (11) Total deferred tax assets 717 798 Deferred tax liabilities: Property, plant and equipment 3,228 2,912 Regulatory assets 601 741 Investment in ZENS and equity securities related to ZENS 722 693 Investment in equity securities — 195 Other 152 161 Total deferred tax liabilities 4,703 4,702 Net deferred tax liabilities $ 3,986 $ 3,904 December 31, 2022 2021 (in millions) Houston Electric Deferred tax assets: Regulatory liabilities $ 184 $ 175 Benefits and compensation 10 13 Asset retirement obligations 6 9 Other 13 10 Total deferred tax assets 213 207 Deferred tax liabilities: Property, plant and equipment 1,330 1,215 Regulatory assets 112 114 Total deferred tax liabilities 1,442 1,329 Net deferred tax liabilities $ 1,229 $ 1,122 CERC Deferred tax assets: Benefits and compensation $ 9 $ 17 Regulatory liabilities 151 181 Loss and credit carryforwards 466 585 Asset retirement obligations 86 118 Other 25 30 Total deferred tax assets 737 931 Deferred tax liabilities: Property, plant and equipment 1,427 1,264 Regulatory assets 381 536 Other 191 159 Total deferred tax liabilities 1,999 1,959 Net deferred tax liabilities $ 1,262 $ 1,028 Tax Attribute Carryforwards and Valuation Allowance . CenterPoint Energy has no federal NOL carryforwards and no federal charitable contribution carryforwards as of December 31, 2022. As of December 31, 2022, CenterPoint Energy had $1.1 billion of state NOL carryforwards that expire between 2023 and 2042, and $17 million of state tax credits that do not expire. CenterPoint Energy reported a valuation allowance of $10 million because it is more likely than not that the benefit from certain state NOL carryforwards will not be realized. CERC has $1.8 billion of federal NOL carryforwards which have an indefinite carryforward period. CERC has $827 million of gross state NOL carryforwards which expire between 2023 and 2042 and $17 million of state tax credits which do not expire. A reconciliation of CenterPoint Energy’s beginning and ending balance of unrecognized tax benefits, excluding interest and penalties, for 2022 and 2021 are as follows: Year Ended December 31, 2022 2021 (in millions) Balance, beginning of year $ 3 $ 7 Increases related to tax positions of prior years 26 — Decreases related to tax positions of prior years (3) (4) Balance, end of year $ 26 $ 3 CenterPoint Energy’s net unrecognized tax benefits, including penalties and interest, were $28 million as of December 31, 2022 and are included in other non-current liabilities in the Consolidated Financial Statements. Included in the balance of uncertain tax positions as of December 31, 2022 are $26 million of tax benefits that, if recognized, would affect the effective |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Purchase Obligations (CenterPoint Energy and CERC) Commitments include minimum purchase obligations related to CenterPoint Energy’s and CERC’s Natural Gas reportable segment and CenterPoint Energy’s Electric reportable segment. A purchase obligation is defined as an agreement to purchase goods or services that is enforceable and legally binding on the registrant and that specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Contracts with minimum payment provisions have various quantity requirements and durations and are not classified as non-trading derivative assets and liabilities in CenterPoint Energy’s and CERC’s Consolidated Balance Sheets as of December 31, 2022 and 2021. These contracts meet an exception as “normal purchases contracts” or do not meet the definition of a derivative. Natural gas and coal supply commitments also include transportation contracts that do not meet the definition of a derivative. On October 27, 2021, the IURC issued an order approving the CPCN, authorizing Indiana Electric to purchase the Posey solar project through a BTA to acquire its solar array assets for a fixed purchase price and approved recovery of costs via a levelized rate over the anticipated 35-year life. Due to community feedback and rising project costs caused by inflation and supply chain issues affecting the energy industry, Indiana Electric, along with Arevon, the developer, announced plans in January 2022 to downsize the Posey solar project to 191 MW. Indiana Electric collaboratively agreed to the scope change, and on February 1, 2023, Indiana Electric entered into an amended and restated BTA that is contingent on further IURC review and approval. On February 7, 2023, Indiana Electric filed a CPCN with the IURC to approve the amended BTA. With the passage of the IRA, Indiana Electric can now pursue PTCs for solar projects. Indiana Electric will request that project costs, net of PTCs, be recovered in rate base rather than a levelized rate, through base rates or the CECA mechanism, depending on which provides more timely recovery. The Posey solar project is expected to be placed in service in 2025. On July 5, 2022, Indiana Electric entered into a BTA to acquire a 130 MW solar array in Pike County, Indiana through a special purpose entity for a capped purchase price. A CPCN for the project was filed with the IURC on July 29, 2022. On September 21, 2022, an agreement in principle was reached resolving all the issues between Indiana Electric and OUCC. The Stipulation and Settlement agreement was filed on October 6, 2022 and a settlement hearing was held on November 1, 2022. On January 11, 2023, the IURC issued an order approving the settlement agreement granting Indiana Electric to purchase and acquire the Pike County solar project through a BTA and approved the estimated cost. The IURC also designated the project as a clean energy project under Ind. Code Ch. 8-1-8.8, approved the proposed levelized rate and associated ratemaking and accounting treatment. The project is expected to be placed in service by 2025. As of December 31, 2022, other than discussed below, undiscounted minimum purchase obligations are approximately: CenterPoint Energy CERC Natural Gas and Coal Supply Other (1) Natural Gas Supply (in millions) 2023 $ 1,014 $ 151 $ 894 2024 887 208 827 2025 648 681 599 2026 488 45 445 2027 421 86 377 2028 and beyond 2,070 453 1,954 (1) CenterPoint Energy’s undiscounted minimum payment obligations related to PPAs with commitments ranging from 15 to 25 years and its purchase commitment under its BTA in Posey County, Indiana at the original contracted amount, prior to any renegotiation, and its BTA in Pike County, Indiana, are included above. The remaining undiscounted payment obligations relate primarily to technology hardware and software agreements. Excluded from the table above are estimates for cash outlays from other PPAs through Indiana Electric that do not have minimum thresholds but do require payment when energy is generated by the provider. Costs arising from certain of these commitments are pass-through costs, generally collected dollar-for-dollar from retail customers through regulator-approved cost recovery mechanisms. (b) AMAs (CenterPoint Energy and CERC) CenterPoint Energy’s and CERC’s Natural Gas businesses continue to utilize AMAs associated with their utility distribution service in Indiana, Louisiana, Minnesota, Mississippi and Texas. The AMAs have varying terms, the longest of which expires in 2027. Pursuant to the provisions of the agreements, CenterPoint Energy’s and CERC’s Natural Gas either sells natural gas to the asset manager and agrees to repurchase an equivalent amount of natural gas throughout the year at the same cost, or simply purchases its full natural gas requirements at each delivery point from the asset manager. Generally, AMAs are contracts between CenterPoint Energy’s and CERC’s Natural Gas and an asset manager that are intended to transfer the working capital obligation and maximize the utilization of the assets. In these agreements, CenterPoint Energy’s and CERC’s Natural Gas agrees to release transportation and storage capacity to other parties to manage natural gas storage, supply and delivery arrangements for CenterPoint Energy’s and CERC’s Natural Gas and to use the released capacity for other purposes when it is not needed for CenterPoint Energy’s and CERC’s Natural Gas. CenterPoint Energy’s and CERC’s Natural Gas may receive compensation from the asset manager through payments made over the life of the AMAs. CenterPoint Energy’s and CERC’s Natural Gas has an obligation to purchase their winter storage requirements that have been released to the asset manager under these AMAs. For amounts outstanding under these AMAs and AMAs with the Energy Services Disposal Group, see Notes 4 and 13. (c) Guarantees and Product Warranties (CenterPoint Energy) In the normal course of business, Energy Systems Group enters into contracts requiring it to timely install infrastructure, operate facilities, pay vendors and subcontractors and support warranty obligations and, at times, issue payment and performance bonds and other forms of assurance in connection with these contracts. Specific to Energy Systems Group’s role as a general contractor in the performance contracting industry, as of December 31, 2022, there were 66 open surety bonds supporting future performance with an aggregate face amount of approximately $646 million. Energy Systems Group’s exposure is less than the face amount of the surety bonds and is limited to the level of uncompleted work under the contracts. As of December 31, 2022, approximately 37% of the work was yet to be completed on projects with open surety bonds. Further, various subcontractors issue surety bonds to Energy Systems Group. In addition to these performance obligations, Energy Systems Group also warrants the functionality of certain installed infrastructure generally for one year and the associated energy savings over a specified number of years. As of December 31, 2022, there were 34 warranties totaling $521 million and an additional $1.4 billion in energy savings commitments not guaranteed by Vectren Corp. Since Energy Systems Group’s inception in 1994, CenterPoint Energy believes Energy Systems Group has had a history of generally meeting its performance obligations and energy savings guarantees and its installed products operating effectively. CenterPoint Energy assessed the fair value of its obligation for such guarantees as of December 31, 2022 and no amounts were recorded on CenterPoint Energy’s Consolidated Balance Sheets. CenterPoint Energy issues parent company level guarantees to certain vendors, customers and other commercial counterparties of Energy Systems Group. These guarantees do not represent incremental consolidated obligations, but rather, represent guarantees of subsidiary obligations to allow those subsidiaries to conduct business without posting other forms of assurance. As of December 31, 2022, CenterPoint Energy, primarily through Vectren, has issued parent company level guarantees supporting Energy Systems Group’s obligations. For those obligations where potential exposure can be estimated, management estimates the maximum exposure under these guarantees to be approximately $527 million as of December 31, 2022. This exposure primarily relates to energy savings guarantees on federal energy savings performance contracts. Other parent company level guarantees, certain of which do not contain a cap on potential liability, have been issued in support of federal operations and maintenance projects for which a maximum exposure cannot be estimated based on the nature of the projects. While there can be no assurance that performance under any of these parent company guarantees will not be required in the future, CenterPoint Energy considers the likelihood of a material amount being incurred as remote. (d) Legal, Environmental and Other Matters Legal Matters Litigation Related to the February 2021 Winter Storm Event. Various legal proceedings are still pending and new legal matters are being filed against numerous entities with respect to the February 2021 Winter Storm Event, including against CenterPoint Energy, Utility Holding, LLC, Houston Electric, and CERC. Like other Texas energy companies and TDUs, CenterPoint Energy and Houston Electric have become involved in certain investigations, litigation and other regulatory and legal proceedings regarding their efforts to restore power during the storm and their compliance with NERC, ERCOT and PUCT rules and directives. Additionally, like other natural gas market participants, CERC has recently been named in litigation alleging gas market manipulation. CenterPoint Energy, Utility Holding, LLC, and Houston Electric, along with hundreds of other defendants (including ERCOT, power generation companies, other TDUs, natural gas producers, REPs, and other entities) have received, and may continue to receive, claims and lawsuits filed by plaintiffs alleging wrongful death, personal injury, property damage and other injuries and damages. The litigation is consolidated in Texas state court in Harris County, Texas, as part of a multi-district litigation proceeding. The judge overseeing the multi-district litigation issued an initial case management order and stayed all proceedings and discovery. Per the case management order, the judge entertained dispositive motions in five representative or “bellwether” cases and, in late January 2023, issued rulings on them. The judge ruled that ERCOT has sovereign immunity as a governmental entity and dismissed the suits against it. The judge also dismissed all claims against the natural gas defendants (which incorrectly included Utility Holding, LLC), and the REP defendants and some causes of action against the other defendants. As to the TDU and generator defendants, the judge dismissed some causes of action but denied the motions to dismiss claims for negligence, gross negligence, and nuisance, which denial the TDU defendants and generator defendants are asking the court of appeals to overturn. The judge allowed plaintiffs to file amended petitions, but otherwise the cases remain stayed for now as the judge addresses additional preliminary issues. Following the initial rulings and around the two-year anniversary of the February 2021 Winter Storm Event, there have been voluminous amendments, non-suits, re-filings, and new filings of lawsuits, such that the pleadings are still being settled and the precise number of cases and claims against particular defendants and in total is still being determined. As of February 15, 2023, there are approximately 250 pending lawsuits that are in or will be added to the multi-district litigation proceeding related to the February 2021 Winter Storm Event, and CenterPoint Energy and Houston Electric, along with numerous other entities, have been named as defendants in approximately 160 of those. One of the newly filed lawsuits is a putative class action on behalf of everyone who received electric power via the ERCOT grid and sustained a power outage between February 10, 2021 and February 28, 2021. Additionally, Utility Holding, LLC has been named as a defendant in approximately 20 lawsuits, but those claims are being dismissed in light of the judge’s rulings. CenterPoint Energy, Utility Holding, LLC, and Houston Electric intend to vigorously defend themselves against the claims raised. CenterPoint Energy and Houston Electric have also responded to inquiries from the Texas Attorney General and the Galveston County District Attorney’s Office, and various other regulatory and governmental entities also conducted inquiries, investigations and other reviews of the February 2021 Winter Storm Event and the efforts made by various entities to prepare for, and respond to, the event, including the electric generation shortfall issues. In February 2023, several lawsuits were filed in state district court in Harris County and Tom Green County, Texas, against dozens of gas market participants in Texas, including natural gas producers, processors, pipelines, marketers, sellers, traders, gas utilities, and financial institutions. Plaintiffs named CERC as one such defendant, along with “CenterPoint Energy Services, Inc.,” incorrectly identifying it as CERC’s parent company (CenterPoint Energy previously divested CES). One lawsuit is a putative class action on behalf of two classes of electric and natural gas customers (those who experienced a loss of electricity and/or natural gas, and those who were charged securitization-related surcharges on a utility bill or were otherwise charged higher rates for electricity and/or gas during the February 2021 Winter Storm Event), potentially including millions of class members. The other lawsuits are brought by an entity that purports to be an assignee of claims by tens of thousands of persons and entities that have assigned claims to the plaintiff. Together, the lawsuits allege that the defendants engaged in gas market manipulation and price gouging, including by intentionally withholding, suppressing, or diverting supplies of natural gas in connection with the February 2021 Winter Storm Event, Winter Storm Elliott, and other severe weather conditions, and through financial market manipulation. Plaintiffs allege that this manipulation impacted gas supply and prices as well as the market, supply, and price of electricity in Texas and caused blackouts and other damage. Plaintiffs assert claims for tortious interference with existing contract, private nuisance, and unjust enrichment, and allege a broad array of injuries and damages, including personal injury, property damage, and harm from certain costs being securitized and passed on to ratepayers. The lawsuits do not specify the amount of damages sought, but seek broad categories of actual, compensatory, statutory, consequential economic, and punitive damages; restitution and disgorgement; pre- and post-judgment interest; costs and attorneys’ fees; and other relief. CERC intends to vigorously defend itself against the claims raised. To date, there have not been demands, quantification, disclosure or discovery of damages by any party to any of the above legal matters that are sufficient to enable CenterPoint Energy and its subsidiaries to estimate exposure. Given that, as well as the preliminary nature of the proceedings, the numerosity of parties and complexity of issues involved, and the uncertainties of litigation, CenterPoint Energy and its subsidiaries are unable to predict the outcome or consequences of any of the foregoing matters or to estimate a range of potential losses. CenterPoint Energy and its subsidiaries have general and excess liability insurance policies that provide coverage for third party bodily injury and property damage claims. Given the nature of certain of the recent allegations, however, it is possible that the insurers for third party bodily injury and property damage claims could dispute coverage for other types of damage that may be alleged by plaintiffs. CenterPoint Energy and its subsidiaries intend to continue to pursue any and all available insurance coverage for all of the litigation related to the February 2021 Winter Storm Event. Environmental Matters MGP Sites. CenterPoint Energy, CERC and their predecessors, including predecessors of Vectren, operated MGPs in the past. The costs CenterPoint Energy or CERC, as applicable, expect to incur to fulfill their respective obligations are estimated by management using assumptions based on actual costs incurred, the timing of expected future payments and inflation factors, among others. While CenterPoint Energy and CERC have recorded obligations for all costs which are probable and estimable, including amounts they are presently obligated to incur in connection with activities at these sites, it is possible that future events may require remedial activities which are not presently foreseen, and those costs may not be subject to PRP or insurance recovery. (i) Minnesota MGPs (CenterPoint Energy and CERC) . With respect to certain Minnesota MGP sites, CenterPoint Energy and CERC have completed state-ordered remediation and continue state-ordered monitoring and water treatment. CenterPoint Energy and CERC recorded a liability as reflected in the table below for continued monitoring and any future remediation required by regulators in Minnesota. (ii) Indiana MGPs (CenterPoint Energy and CERC) . In the Indiana Gas service territory, the existence, location and certain general characteristics of 26 gas manufacturing and storage sites have been identified for which CenterPoint Energy and CERC may have some remedial responsibility. A remedial investigation/feasibility study was completed at one of the sites under an agreed upon order between Indiana Gas and the IDEM, and a Record of Decision was issued by the IDEM in January 2000. The remaining sites have been submitted to the IDEM’s VRP. CenterPoint Energy has also identified its involvement in 5 manufactured gas plant sites in SIGECO’s service territory, all of which are currently enrolled in the IDEM’s VRP. CenterPoint Energy is currently conducting some level of remedial activities, including groundwater monitoring at certain sites. (iii) Other MGPs (CenterPoint Energy and CERC). In addition to the Minnesota and Indiana sites, the EPA and other regulators have investigated MGP sites that were owned or operated by CenterPoint Energy or CERC or may have been owned by one of their former affiliates. Total costs that may be incurred in connection with addressing these sites cannot be determined at this time. The estimated accrued costs are limited to CenterPoint Energy’s and CERC’s share of the remediation efforts and are therefore net of exposures of other PRPs. The estimated range of possible remediation costs for the sites for which CenterPoint Energy and CERC believe they may have responsibility was based on remediation continuing for the minimum time frame given in the table below. December 31, 2022 CenterPoint Energy CERC (in millions, except years) Amount accrued for remediation $ 16 $ 14 Minimum estimated remediation costs 12 11 Maximum estimated remediation costs 51 44 Minimum years of remediation 5 5 Maximum years of remediation 50 50 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. CenterPoint Energy and CERC do 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 the Registrants or their predecessors contain or have contained asbestos insulation and other asbestos-containing materials. The Registrants 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 the Registrants anticipate that additional claims may be asserted in the future. Although their ultimate outcome cannot be predicted at this time, the Registrants do not expect these matters, either individually or in the aggregate, to have a material adverse effect on their financial condition, results of operations or cash flows. CCR Rule (CenterPoint Energy). In April 2015, the EPA finalized its CCR Rule, which regulates ash as non-hazardous material under the RCRA. The final rule allows beneficial reuse of ash, and the majority of the ash generated by Indiana Electric’s generating plants will continue to be reused. In July 2018, the EPA released its final CCR Rule Phase I Reconsideration which extended the deadline to October 31, 2020 for ceasing placement of ash in ponds that exceed groundwater protections standards or that fail to meet location restrictions. In August 2019, the EPA proposed additional “Part A” amendments to its CCR Rule with respect to beneficial reuse of ash and other materials. Further “Part B” amendments, which related to alternate liners for CCR surface impoundments and the surface impoundment closure process, were published in March 2020. The Part A amendments were finalized in August 2020 and extended the deadline to cease placement of ash in ponds to April 11, 2021, discussed further below. The Part A amendments do not restrict Indiana Electric’s current beneficial reuse of its fly ash. CenterPoint Energy evaluated the Part B amendments to determine potential impacts and determined that the Part B amendments did not have an impact on its current plans. Indiana Electric has three ash ponds, two at the F.B. Culley facility (Culley East and Culley West) and one at the A.B. Brown facility. Under the existing CCR Rule, Indiana Electric is required to perform integrity assessments, including ground water monitoring, at its F.B. Culley and A.B. Brown generating stations. The ground water studies are necessary to determine the remaining service life of the ponds and whether a pond must be retrofitted with liners or closed in place. Indiana Electric’s Warrick generating unit is not included in the scope of the CCR Rule as this unit has historically been part of a larger generating station that predominantly serves an adjacent industrial facility. Preliminary groundwater monitoring indicates potential groundwater impacts very close to Indiana Electric’s ash impoundments, and further analysis is ongoing. The CCR Rule required companies to complete location restriction determinations by October 18, 2018. Indiana Electric completed its evaluation and determined that one F.B. Culley pond (Culley East) and the A.B. Brown pond fail the aquifer placement location restriction. As a result of this failure, Indiana Electric was required to cease disposal of new ash in the ponds and commence closure of the ponds by April 11, 2021, unless approved for an extension. CenterPoint Energy filed timely extension requests available under the CCR Rule that would allow Indiana Electric to continue to use the ponds through October 15, 2023. The EPA is still reviewing industry extension requests, including CenterPoint Energy’s extension request for the Culley East pond. Companies can continue to operate ponds pending completion of the EPA’s evaluation of the requests for extension. If the EPA denies a full extension request, that denial may result in increased and potentially significant operational costs in connection with the accelerated implementation of an alternative ash disposal system or may adversely impact Indiana Electric’s future operations. Failure to comply with a cease waste receipt could also result in an enforcement proceeding, resulting in the imposition of fines and penalties. On October 5, 2022, EPA issued a proposed conditional approval of the Part A extension request for the A.B. Brown pond. On April 24, 2019, Indiana Electric received an order from the IURC approving recovery in rates of costs associated with the closure of the Culley West pond, which has already completed closure activities. On August 14, 2019, Indiana Electric filed its petition with the IURC for recovery of costs associated with the closure of the A.B. Brown ash pond, which would include costs associated with the excavation and recycling of ponded ash. This petition was subsequently approved by the IURC on May 13, 2020. On October 28, 2020, the IURC approved Indiana Electric’s ECA proceeding, which included the initiation of recovery of the federally mandated project costs. In July 2018, Indiana Electric filed a Complaint for Damages and Declaratory Relief against its insurers seeking reimbursement of defense, investigation and pond closure costs incurred to comply with the CCR Rule, and has since reached confidential settlement agreements with its insurers. The proceeds of these settlements will offset costs that have been and will be incurred to close the ponds. On November 1, 2022, Indiana Electric filed for a CPCN to recover federally mandated costs associated with closure of the Culley East Pond, its third and final ash pond. Indiana Electric is also seeking accounting and ratemaking relief for the project. The project costs are estimated to be approximately $50 million, inclusive of overheads. OUCC and intervenor testimony is due February 10, 2023 and Indiana Electric’s rebuttal testimony is due on February 24, 2023. A hearing is currently scheduled for March 14, 2023. As of December 31, 2022, CenterPoint Energy has recorded an approximate $104 million ARO, which represents the discounted value of future cash flow estimates to close the ponds at A.B. Brown and F.B. Culley. This estimate is subject to change due to the contractual arrangements; continued assessments of the ash, closure methods, and the timing of closure; implications of Indiana Electric’s generation transition plan; changing environmental regulations; and proceeds received from the settlements in the aforementioned insurance proceeding. In addition to these AROs, Indiana Electric also anticipates equipment purchases of between $60 million and $80 million to complete the A.B. Brown closure project. Clean Water Act Permitting of Groundwater Discharges . In April 2020, the U.S. Supreme Court issued an opinion providing that indirect discharges via groundwater or other non-point sources are subject to permitting and liability under the Clean Water Act when they are the functional equivalent of a direct discharge. The Registrants are evaluating the extent to which this decision will affect Clean Water Act permitting requirements and/or liability for their operations. Other Environmental. From time to time, the Registrants identify the presence of environmental contaminants during operations or on property where their predecessors have conducted operations. Other such sites involving contaminants may be identified in the future. The Registrants have and expect to continue to remediate any identified sites consistent with state and federal legal obligations. From time to time, the Registrants have received notices, and may receive notices in the future, from regulatory authorities or others regarding status as a PRP in connection with sites found to require remediation due to the presence of environmental contaminants. In addition, the Registrants have been, or may be, named from time to time as defendants in litigation related to such sites. Although the ultimate outcome of such matters cannot be predicted at this time, the Registrants do not expect these matters, either individually or in the aggregate, to have a material adverse effect on their financial condition, results of operations or cash flows. Other Proceedings The Registrants are 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, the Registrants are also defendants 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. The Registrants regularly analyze current information and, as necessary, provide accruals for probable and reasonably estimable liabilities on the eventual disposition of these matters. The Registrants do not expect the disposition of these matters to have a material adverse effect on the Registrants’ financial condition, results of operations or cash flows. |
Earnings Per Share (CenterPoint
Earnings Per Share (CenterPoint Energy) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (CenterPoint Energy) | Earnings Per Share (CenterPoint Energy) The Series C Preferred Stock issued in May 2020 were considered participating securities since these shares participated in dividends on Common Stock on a pari passu, pro rata, as-converted basis. As a result, beginning June 30, 2020, earnings per share on Common Stock was computed using the two-class method required for participating securities during the periods the Series C Preferred Stock was outstanding. As of May 7, 2021, all of the remaining outstanding Series C Preferred Stock were converted into shares of Common Stock and earnings per share on Common Stock and, as such, the two-class method was no longer applicable beginning June 30, 2021. The two-class method uses an earnings allocation formula that treats participating securities as having rights to earnings that otherwise would have been available only to common shareholders. Under the two-class method, income (loss) available to common shareholders from continuing operations is derived by subtracting the following from income (loss) from continuing operations: • preferred share dividend requirement; • deemed dividends for the amortization of the beneficial conversion feature recognized at issuance of the Series C Preferred Stock; and • an allocation of undistributed earnings to preferred shareholders of participating securities (Series C Preferred Stock) based on the securities’ right to receive dividends. Undistributed earnings are calculated by subtracting dividends declared on Common Stock, the preferred share dividend requirement and deemed dividends for the amortization of the beneficial conversion feature from net income. Net losses are not allocated to the Series C Preferred Stock as it does not have a contractual obligation to share in the losses of CenterPoint Energy. The Series C Preferred Stock included conversion features at a price that were below the fair value of the Common Stock on the commitment date. This beneficial conversion feature, which was approximately $32 million, represents the difference between the fair value per share of the Common Stock as of the commitment date and the conversion price, multiplied by the number of common shares issuable upon conversion. The beneficial conversion feature was recognized as a discount to Series C Preferred Stock and was amortized as a deemed dividend over the period from the issue date to the first allowable conversion date, which was November 6, 2020. Basic earnings per common share is computed by dividing income available to common shareholders from continuing operations by the basic weighted average number of common shares outstanding during the period. Participating securities are excluded from basic weighted average number of common shares outstanding. Diluted earnings per common share is computed by dividing income available to common shareholders from continuing operations by the weighted average number of common shares outstanding, including all potentially dilutive common shares, if the effect of such common shares is dilutive. Diluted earnings per share reflects the dilutive effect of potential common shares from share-based awards and convertible preferred shares. The dilutive effect of the restricted stock, Series B Preferred Stock and Series C Preferred Stock is computed using the if-converted method, which assumes conversion of the restricted stock, Series B Preferred Stock and Series C Preferred Stock at the beginning of the period, giving income recognition for the add-back of the preferred share dividends, amortization of beneficial conversion feature, and undistributed earnings allocated to preferred shareholders. The dilutive effect of restricted stock is computed using the treasury stock method, as applicable, which includes the incremental shares that would be hypothetically vested in excess of the number of shares assumed to be hypothetically repurchased with the assumed proceeds. The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share. Basic earnings per common share is determined by dividing Income available to common shareholders - basic by the Weighted average common shares outstanding - basic for the applicable period. Diluted earnings per common share is determined by the inclusion of potentially dilutive common stock equivalent shares that may occur if securities to issue Common Stock were exercised or converted into Common Stock. For the Year Ended December 31, 2022 2021 2020 (in millions, except per share and share amounts) Numerator: Income from continuing operations $ 1,057 $ 668 $ 483 Less: Preferred stock dividend requirement (Note 12) 49 95 144 Less: Amortization of beneficial conversion feature (Note 12) — — 32 Income available to common shareholders from continuing operations - basic and diluted 1,008 573 307 Income (loss) available to common shareholders from discontinued operations - basic and diluted — 818 (1,256) Income (loss) available to common shareholders - basic and diluted $ 1,008 $ 1,391 $ (949) Denominator: Weighted average common shares outstanding - basic 629,415,000 592,933,000 531,031,000 Plus: Incremental shares from assumed conversions: Restricted stock 2,931,000 5,181,000 — Series C Preferred Stock (3) — 11,824,000 — Weighted average common shares outstanding - diluted 632,346,000 609,938,000 531,031,000 Anti-dilutive Incremental Shares Excluded from Denominator for Diluted Earnings (Loss) Computation: Restricted stock — — 3,690,000 Series B Preferred Stock (2) — 23,906,000 35,922,000 Series C Preferred Stock (3) — — 23,807,000 For the Year Ended December 31, 2022 2021 2020 (in millions, except per share and share amounts) Earnings (loss) per common share: Basic earnings per common share - continuing operations $ 1.60 $ 0.97 $ 0.58 Basic earnings (loss) per common share - discontinued operations — 1.38 (2.37) Basic Earnings (Loss) Per Common Share $ 1.60 $ 2.35 $ (1.79) Diluted earnings per common share - continuing operations $ 1.59 $ 0.94 $ 0.58 Diluted earnings (loss) per common share - discontinued operations — 1.34 (2.37) Diluted Earnings (Loss) Per Common Share $ 1.59 $ 2.28 $ (1.79) (1) There were no undistributed earnings to be allocated to participating securities for the years ended December 31, 2021 and 2020. (2) As of December 31, 2021, all of the outstanding Series B Preferred Stock has been converted into Common Stock. For further information, see Note 12. (3) As of December 31, 2021, all of the outstanding Series C Preferred Stock has been converted into Common Stock. For further information, see Note 12. |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segments | (17) Reportable Segments The Registrants’ determination of reportable segments considers the strategic operating units under which its CODM manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. Each Registrant’s CODM views net income as the measure of profit or loss for the reportable segments. Certain prior year amounts have been reclassified for assets held for sale, discontinued operations, or the Restructuring as described below. Additionally, in 2022 CenterPoint Energy sold certain assets previously owned by entities within Corporate and Other to businesses within the Electric and Natural Gas reportable segments, and prior year amounts were reclassified. As of December 31, 2022, reportable segments by Registrant are as follows: CenterPoint Energy • CenterPoint Energy’s Electric reportable segment consisted of electric transmission and distribution services in the Texas gulf coast area in the ERCOT region and electric transmission and distribution services primarily to southwestern Indiana and includes power generation and wholesale power operations in the MISO region. • CenterPoint Energy’s Natural Gas reportable segment consists of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas; and (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP. • CenterPoint Energy’s Corporate and Other reportable segment consists of energy performance contracting and sustainable infrastructure services through Energy Systems Group and other corporate operations which support all of the business operations of CenterPoint Energy. Houston Electric • Houston Electric’s single reportable segment consisted of electric transmission services to transmission service customers in the ERCOT region and distribution services to REPs in the Texas gulf coast area. CERC • CERC’s single reportable segment following the Restructuring consisted of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas; and (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP. Expenditures for long-lived assets include property, plant and equipment. Intersegment sales are eliminated in consolidation, except as described in Note 4. Financial data for reportable segments is as follows, including Discontinued Operations for reconciliation purposes: CenterPoint Energy Revenues Depreciation Interest Income (1) Interest Expense Income Tax Expense Net Income (Loss) (in millions) For the year ended December 31, 2022: Electric $ 4,108 $ 793 $ 4 $ (235) $ 147 $ 603 Natural Gas 4,946 466 2 (137) 243 492 Corporate and Other 267 29 59 (214) (30) (38) Eliminations — — (62) 62 — — Continuing Operations $ 9,321 $ 1,288 $ 3 $ (524) $ 360 1,057 Discontinued Operations, net — Consolidated $ 1,057 For the year ended December 31, 2021: Electric $ 3,763 $ 775 $ — $ (226) $ 95 $ 475 Natural Gas 4,336 527 1 (141) 80 403 Corporate and Other 253 14 118 (278) (65) (210) Eliminations — — (116) 116 — — Continuing Operations $ 8,352 $ 1,316 $ 3 $ (529) $ 110 668 Discontinued Operations, net 818 Consolidated $ 1,486 For the year ended December 31, 2020: Electric $ 3,470 $ 684 $ 3 $ (220) $ 72 $ 230 Natural Gas 3,631 491 8 (153) 125 278 Corporate and Other 317 14 104 (267) (117) (25) Eliminations — — (111) 111 — — Continuing Operations $ 7,418 $ 1,189 $ 4 $ (529) $ 80 483 Discontinued Operations, net (1,256) Consolidated $ (773) (1) Interest income from Securitization Bonds of less than $1 million, $1 million and $1 million for the years ended December 31, 2022, 2021 and 2020, respectively, is included in Other income, net on CenterPoint Energy’s and Houston Electric’s respective Statements of Consolidated Income. Total Assets Expenditures for Long-lived Assets December 31, December 31, 2022 2021 2022 2021 2020 (in millions) Electric $ 19,024 $ 16,548 $ 2,611 $ 2,008 $ 1,281 Natural Gas 18,043 16,270 1,697 1,178 1,139 Corporate and Other, net of eliminations (1) 1,479 2,523 107 42 95 Continuing Operations 38,546 35,341 4,415 3,228 2,515 Assets Held for Sale/Discontinued Operations — 2,338 3 171 21 Consolidated $ 38,546 $ 37,679 $ 4,418 $ 3,399 $ 2,536 (1) Total assets included pension and other postemployment-related regulatory assets of $405 million and $427 million as of December 31, 2022 and 2021, respectively. Assets Held for Sale and Discontinued Operations (CenterPoint Energy and CERC) For further information regarding CenterPoint Energy’s and CERC’s assets held for sale, discontinued operations and disposals, see Note 4. Houston Electric Houston Electric consists of a single reportable segment; therefore, a tabular reportable segment presentation has not been included. CERC CERC consists of a single reportable segment; therefore, a tabular reportable segment presentation has not been included. Major Customers (CenterPoint Energy and Houston Electric) Houston Electric’s revenues from major external customers are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Affiliates of NRG $ 1,046 $ 905 $ 749 Affiliates of Vistra Energy Corp. 489 410 404 Revenues by Products and Services Year Ended December 31, 2022 2021 2020 Revenues by Products and Services: CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (1) CenterPoint Energy Houston Electric CERC (1) (in millions) Electric delivery $ 3,438 $ 3,412 $ — $ 3,158 $ 3,134 $ — $ 2,941 $ 2,911 $ — Retail electric sales 630 — — 559 — — 515 — — Wholesale electric sales 40 — — 46 — — 14 — — Retail gas sales 4,759 — 4,613 4,157 — 4,021 3,462 — 3,362 Gas transportation and processing 12 — 12 12 — 12 15 — 15 Energy products and services 442 — 175 420 — 167 471 — 154 Total $ 9,321 $ 3,412 $ 4,800 $ 8,352 $ 3,134 $ 4,200 $ 7,418 $ 2,911 $ 3,531 |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information | (18) Supplemental Disclosure of Cash Flow Information CenterPoint Energy and CERC elected not to separately disclose discontinued operations on their respective Condensed Statements of Consolidated Cash Flows. The table below provides supplemental disclosure of cash flow information and does not exclude the Infrastructure Services and Energy Services Disposal Groups prior to the closing of the respective transactions. The tables below provide supplemental disclosure of cash flow information: 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash Payments/Receipts: Interest, net of capitalized interest $ 480 $ 223 $ 104 $ 489 $ 208 $ 130 $ 471 $ 201 $ 143 Income tax payments (refunds), net 421 142 37 (46) 20 (7) 143 65 (5) Non-cash transactions: Accounts payable related to capital expenditures 335 168 139 370 261 128 153 102 66 Fair Value of Energy Transfer Common Units received for Enable Merger — — — 1,672 — — — — — Fair Value of Energy Transfer Series G Preferred Units received for Enable Merger — — — 385 — — — — — ROU assets obtained in exchange for lease liabilities 7 6 — 2 — — 15 1 5 Beneficial conversion feature — — — — — — 32 — — Amortization of beneficial conversion feature — — — — — — (32) — — The table below provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the amount reported in the Statements of Consolidated Cash Flows: December 31, 2022 December 31, 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash and cash equivalents (1) $ 74 $ 75 $ — $ 230 $ 214 $ 15 Restricted cash included in Prepaid expenses and other current assets 17 13 — 24 19 — Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows $ 91 $ 88 $ — $ 254 $ 233 $ 15 |
Related Party Transactions (Hou
Related Party Transactions (Houston Electric and CERC) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions (Houston Electric and CERC) | Related Party Transactions (Houston Electric and CERC) Houston Electric and CERC participate in a money pool through which they can borrow or invest on a short-term basis. Funding needs are aggregated and external borrowing or investing is based on the net cash position. The net funding requirements of the money pool are expected to be met with borrowings under CenterPoint Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper. The table below summarizes money pool activity: December 31, 2022 December 31, 2021 Houston Electric CERC Houston Electric CERC (in millions, except interest rates) Money pool investments (borrowings) (1) $ (642) $ — $ (512) $ (224) Weighted average interest rate 4.75 % 4.75 % 0.34 % 0.34 % (1) Included in Accounts and notes receivable (payable)–affiliated companies in Houston Electric’s and CERC’s Consolidated Balance Sheets. Houston Electric and CERC affiliate-related net interest income (expense) were as follows: Year Ended December 31, 2022 2021 2020 Houston Electric CERC Houston Electric CERC (1) Houston Electric CERC (1) (in millions) Interest income (expense), net (2) $ — $ (18) $ — $ (38) $ — $ (35) (1) Includes affiliate-related net interest expense of Indiana Gas and VEDO to reflect the Restructuring. (2) Interest income is included in Other, net and interest expense is included in Interest and other finance charges on Houston Electric’s and CERC’s respective Statements of Consolidated Income. CenterPoint Energy provides some corporate services to Houston Electric and CERC. The costs of services have been charged directly to Houston Electric and CERC using methods that management believes are reasonable. These methods include negotiated usage rates, dedicated asset assignment and proportionate corporate formulas based on operating expenses, assets, gross margin, employees and a composite of assets, gross margin and employees. Houston Electric provides certain services to CERC. These services are billed at actual cost, either directly or as an allocation and include fleet services, shop services, geographic services, surveying and right-of-way services, radio communications, data circuit management and field operations. Additionally, CERC provides certain services to Houston Electric. These services are billed at actual cost, either directly or as an allocation and include line locating and other miscellaneous services. These charges are not necessarily indicative of what would have been incurred had Houston Electric and CERC not been affiliates. Amounts charged for these services are included primarily in Operation and maintenance expenses: Year Ended December 31, 2022 2021 2020 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Corporate service charges $ 167 $ 237 $ 189 $ 257 $ 197 $ 232 Net affiliate service charges (billings) 15 (15) (7) 7 (16) 16 The table below presents transactions among Houston Electric, CERC and their parent, Utility Holding. Year Ended December 31, 2022 2021 2020 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Cash dividends paid to parent $ 316 $ 124 $ — $ — $ 551 $ 128 Cash dividend paid to parent related to the sale of the Arkansas and Oklahoma Natural Gas businesses — 720 — — — — Cash contribution from parent 1,143 289 130 140 62 337 Net assets acquired in the Restructuring (1) — 2,345 — — — — Capital distribution to parent associated with the sale of CES — — — — — 286 Non-cash capital contribution from parent in payment for property, plant and equipment below 38 54 — — — — Cash paid to parent for property, plant and equipment below 65 61 — — — — Property, plant and equipment from parent (2) 103 115 — — 36 23 (1) The Restructuring was a common control transaction that required the recasting of financial information to the earliest period presented. Therefore, the net asset transfer is not reflected during the current period on CERC’s Condensed Statements of Consolidated Changes in Equity. (2) Property, plant and equipment purchased from CenterPoint Energy at its net carrying value on the date of purchase. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | (20) Leases An arrangement is determined to be a lease at inception based on whether the Registrant has the right to control the use of an identified asset. ROU assets represent the Registrants’ right to use the underlying asset for the lease term and lease liabilities represent the Registrants’ obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Registrants are the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. Each Registrant uses the implicit rate for agreements in which it is a lessor. Lease income and expense for operating leases and ROU amortization for finance leases are recognized on a straight-line basis over the lease term. The Registrants have lease agreements with lease and non-lease components and have elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings and mobile generators. For classes of leases in which lease and non-lease components are not combined, consideration is allocated between components based on the stand-alone prices. Sublease income is not significant to the Registrants. The Registrants’ lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. There are no lease transactions with related parties. Agreements in which the Registrants are lessors do not include provisions for the lessee to purchase the assets. Because risk is minimal, the Registrants do not take any significant actions to manage risk associated with the residual value of their leased assets. The Registrants’ operating lease agreements are primarily equipment and real property leases, including land and office facility leases. CenterPoint Energy and Houston Electric also have finance lease agreements for mobile generators. The Registrants’ lease terms may include options to extend or terminate a lease when it is reasonably certain that those options will be exercised. The Registrants have elected an accounting policy that exempts leases with terms of one year or less from the recognition requirements of ASC 842. In 2021, Houston Electric entered into a temporary short-term lease and long-term leases for mobile generation. The short-term lease agreement allows Houston Electric to take delivery of TEEEF assets on a short-term basis with an initial term ending on September 30, 2022 and extended until December 31, 2022. As of December 31, 2022, the short-term lease agreement has expired and all mobile generation assets are leased under the long-term lease agreement. Per Houston Electric’s short-term lease accounting policy election, a ROU asset and lease liability are not reflected on Houston Electric’s Condensed Consolidated Balance Sheets. Expenses associated with the short-term lease, including carrying costs, are deferred to a regulatory asset and totaled $103 million and $20 million as of December 31, 2022 and 2021, respectively. The long-term lease agreement includes up to 505 MW of TEEEF of which 380 MW and 125 MW was delivered as of December 31, 2022 and 2021, respectively, triggering lease commencement at delivery, and has an initial term ending in 2029 for all TEEEF leases. The total cash payments under the long-term lease totaled $664 million, with $179 million paid in 2021 and the remaining $485 million paid in 2022. These assets were previously available under the short-term lease agreement. Houston Electric derecognized the finance lease liability when the extinguishment criteria in Topic 405 - Liabilities was achieved. Per the terms of the agreement, lease payments are due and made in full by Houston Electric upon taking possession of the asset, relieving substantially all of the associated finance lease liability at that time. The remaining finance lease liability associated with the commenced long-term TEEEF agreement was not significant as of December 31, 2022 and 2021 and relates to removal costs that will be incurred at the end of the lease term. As of December 31, 2022, Houston Electric has secured a first lien on the assets leased under the prepayment agreement, except for assets with lease payments totaling $113 million. The $113 million prepayment is being held in an escrow account, not controlled by Houston Electric, and the funds will be released when a first lien can be secured by Houston Electric. Expenses associated with the long-term lease, including depreciation expense on the right of use asset and carrying costs, are deferred to a regulatory asset and totaled $60 million and $1 million as of December 31, 2022 and 2021, respectively. The long-term lease agreement contains a termination clause that can be exercised in the event of material adverse regulatory actions. If the right to terminate is elected, subject to the satisfaction of certain conditions, 75% of Houston Electric’s prepaid lease costs that is attributable to the period from the effective date of termination to the end of the lease term would be refunded. In December 2022, the long-term lease agreement was amended to include a disallowance reimbursement clause that can be exercised in the event that any regulatory proceeding or settlement agreement results in a disallowance of Houston Electric’s recovery of deferred costs under either the long-term lease agreement, short-term lease agreement or any other quantifiable adverse financial impact to Houston Electric. If the disallowance reimbursement clause is exercised, 85% of such disallowance up to $53 million would be paid to Houston Electric. Any disallowance greater than $53 million would remain subject to the 75% limit set forth in the termination clause. For further discussion of the regulatory impacts, see Note 7. Houston Electric will also incur variable costs throughout the lease term for the operation and maintenance of the generators. Lease costs, including variable and ROU asset amortization costs, are deferred to Regulatory assets as incurred as a recoverable cost under the 2021 Texas legislation. See Note 7 for further information regarding recovery of these deferred costs. The components of lease cost, included in Operation and maintenance expense on the Registrants’ respective Statements of Consolidated Income, are as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease cost $ 6 $ 1 $ 2 $ 8 $ 1 $ 4 Short-term lease cost 167 166 1 119 118 — Total lease cost (1) $ 173 $ 167 $ 3 $ 127 $ 119 $ 4 (1) CenterPoint Energy and Houston Electric defer finance lease costs for TEEEF to Regulatory assets for recovery rather than to Depreciation and Amortization in the Statements of Consolidated Income. The components of lease income were as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease income $ 5 $ 1 $ 3 $ 6 $ 1 $ 3 Variable lease income 2 — — 1 — — Total lease income $ 7 $ 1 $ 3 $ 7 $ 1 $ 3 Supplemental balance sheet information related to leases was as follows: December 31, 2022 December 31, 2021 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions, except lease term and discount rate) Assets: Operating ROU assets (1) $ 19 $ 6 $ 5 $ 22 $ 1 $ 12 Finance ROU assets (2) 621 621 — 179 179 — Total leased assets $ 640 $ 627 $ 5 $ 201 $ 180 $ 12 Liabilities: Current operating lease liability (3) $ 5 $ 1 $ 2 $ 6 $ 1 $ 2 Non-current operating lease liability (4) 14 5 4 17 — 11 Total leased liabilities (5) $ 19 $ 6 $ 6 $ 23 $ 1 $ 13 Weighted-average remaining lease term (in years) - operating leases 4.3 4.8 3.9 6.2 4.1 6.5 Weighted-average discount rate - operating leases 3.80 % 4.01 % 3.58 % 3.10 % 2.86 % 3.20 % Weighted-average remaining lease term (in years) - finance leases 6.5 6.5 — 7.5 7.5 — Weighted-average discount rate - finance leases 3.60 % 3.60 % — 2.21 % 2.21 % — (1) Reported within Other assets (2) Reported within Property, Plant and Equipment (3) Reported within Current other liabilities (4) Reported within Other liabilities (5) Finance lease liabilities were not material as of December 31, 2022 or 2021 and are reported within Other long-term debt in the Registrants’ respective Consolidated Balance Sheets when applicable. As of December 31, 2022, finance lease liabilities were not significant to the Registrants. As of December 31, 2022, maturities of operating lease liabilities were as follows: CenterPoint Houston CERC (in millions) 2023 $ 5 $ 1 $ 2 2024 5 2 1 2025 4 2 1 2026 4 1 2 2027 2 1 — 2028 and beyond 1 — — Total lease payments 21 7 6 Less: Interest 2 1 — Present value of lease liabilities $ 19 $ 6 $ 6 As of December 31, 2022, future minimum finance lease payments were not significant to the Registrants. As of December 31, 2022, maturities of undiscounted operating lease payments to be received are as follows: CenterPoint Houston CERC (in millions) 2023 $ 7 $ 1 $ 4 2024 7 1 4 2025 7 1 4 2026 7 — 4 2027 7 — 4 2028 and beyond 159 — 156 Total lease payments to be received $ 194 $ 3 $ 176 Other information related to leases is as follows: Year Ended December 31, 2022 CenterPoint Houston CERC (in millions) Operating cash flows from operating leases included in the measurement of lease liabilities $ 6 $ 1 $ 2 Financing cash flows from finance leases included in the measurement of lease liabilities 485 485 — See Note 18 for information on ROU assets obtained in exchange for operating lease liabilities. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of EstimatesThe 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. |
Principles of Consolidation | Principles of ConsolidationThe accounts of the Registrants and their wholly-owned and majority-owned and controlled subsidiaries are included in the consolidated financial statements. All intercompany transactions and balances are eliminated in consolidation, except as described below. As of December 31, 2022, CenterPoint Energy and Houston Electric had VIEs consisting of the Bond Companies, which are consolidated. The consolidated VIEs are wholly-owned, bankruptcy remote special purpose entities that were formed solely for the purpose of securitizing transition and system restoration related property. Creditors of CenterPoint Energy and Houston Electric have no recourse to any assets or revenues of the 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 or Houston Electric. |
Equity Method and Investments Without a Readily Determinable Fair Value (CenterPoint Energy) | Equity Method and Investments without a Readily Determinable Fair Value (CenterPoint Energy) CenterPoint Energy uses the equity method for investments in entities when it exercises significant influence, does not have control and is not considered the primary beneficiary, if applicable. Generally, equity investments in limited partnerships with interest greater than approximately 3-5% is accounted for under the equity method. Under the equity method, CenterPoint Energy adjusts its investments each period for contributions made, distributions received, respective shares of comprehensive income and amortization of basis differences, as appropriate. CenterPoint Energy evaluates its equity method investments for impairment when events or changes in circumstances indicate there is a loss in value of the investment that is other than a temporary decline. CenterPoint Energy considers distributions received from equity method investments which do not exceed cumulative equity in earnings subsequent to the date of investment to be a return on investment and classifies these distributions as operating activities in its Statements of Consolidated Cash Flows. CenterPoint Energy considers distributions received from equity method investments in excess of cumulative equity in earnings subsequent to the date of investment to be a return of investment and classifies these distributions as investing activities in its Statements of Consolidated Cash Flows. Investments without a readily determinable fair value will be measured at cost, less impairment, plus or minus observable prices changes of an identical or similar investment of the same issuer. |
Revenues | RevenuesThe Registrants record revenue for electricity delivery and natural gas sales and services under the accrual method and these revenues are recognized upon delivery to customers. Electricity deliveries not billed by month-end are accrued based on actual AMS/AMI data, supply volumes, estimated line loss and applicable tariff rates. Natural gas sales not billed by month-end are accrued based upon estimated purchased gas volumes, estimated lost and unaccounted for gas and currently effective tariff rates. For further discussion, see Note 5. |
MISO Transactions | MISO TransactionsIndiana Electric is a member of the MISO. MISO-related purchase and sale transactions are recorded using settlement information provided by the MISO. These purchase and sale transactions are accounted for on at least a net hourly position, meaning net purchases within that interval are recorded on CenterPoint Energy’s Statements of Consolidated Income in Utility natural gas, fuel and purchased power, and net sales within that interval are recorded on CenterPoint Energy’s Statements of Consolidated Income in Utility revenues. On occasion, prior period transactions are resettled outside the routine process due to a change in the MISO’s tariff or a material interpretation thereof. Expenses associated with resettlements are recorded once the resettlement is probable and the resettlement amount can be estimated. Revenues associated with resettlements are recognized when the amount is determinable and collectability is reasonably assured. |
Guarantees | GuaranteesCenterPoint Energy recognizes guarantee obligations at fair value. CenterPoint Energy discloses parent company guarantees of a subsidiary’s obligation when that guarantee results in the exposure of a material obligation of the parent company even if the probability of fulfilling such obligation is considered remote. See Note 15(c) and (d). |
Long-lived Assets, Goodwill and Intangibles | Long-lived Assets, Goodwill and Intangibles The Registrants record property, plant and equipment at historical cost and expense repair and maintenance costs as incurred. The Registrants periodically evaluate long-lived assets, including property, plant and equipment, and specifically identifiable intangibles subject to amortization, when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. For rate regulated businesses, recoverability of long-lived assets is assessed by determining if a capital disallowance from a regulator is probable through monitoring the outcome of rate cases and other proceedings. For non-rate regulated businesses, recoverability is assessed based on an estimate of undiscounted cash flows attributable to the assets compared to the carrying value of the assets. No long-lived asset or intangible asset impairments were recorded in 2022, 2021 or 2020. |
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued OperationsGenerally, a long-lived asset to be sold is classified as held for sale in the period in which management, with approval from the Board of Directors, as applicable, commits to a plan to sell and a sale is expected to be completed within one year. The Registrants record assets and liabilities held for sale at the lower of their carrying value or their estimated fair value less cost to sell. If the disposal group reflects a component of a reporting unit and meets the definition of a business, the goodwill within that reporting unit is allocated to the disposal group based on the relative fair value of the components representing a business that will be retained and disposed. Goodwill is not allocated to a portion of a reporting unit that does not meet the definition of a business. A disposal group that meets the held for sale criteria and also represents a strategic shift to the Registrant, is also reflected as discontinued operations on the Statements of Consolidated Income, and prior periods are recast to reflect the earnings or losses from such businesses as income from discontinued operations, net of tax. |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities The Registrants apply the guidance for accounting for regulated operations within the Electric reportable segment and the Natural Gas reportable segment. The Registrants’ rate-regulated subsidiaries may collect revenues subject to refund pending final determination in rate proceedings. In connection with such revenues, estimated rate refund liabilities are recorded which reflect management’s current judgment of the ultimate outcomes of the proceedings. The Registrants’ rate-regulated businesses recognize removal costs as a component of depreciation expense in accordance with regulatory treatment. In addition, a portion of the amount of removal costs collected from customers that relate to AROs has been reflected as an asset retirement liability in accordance with accounting guidance for AROs. |
Depreciation and Amortization Expense | Depreciation and Amortization ExpenseThe Registrants compute depreciation and amortization using the straight-line method based on economic lives or regulatory-mandated recovery periods. Amortization expense includes amortization of certain regulatory assets and other intangibles. |
Capitalization of Interest and AFUDC | Capitalization and Deferral of Interest, including AFUDC The Registrants capitalize interest and AFUDC as a component of projects under construction and amortize it over the assets’ estimated useful lives once the assets are placed in service. Additionally, the Registrants defer interest costs into a regulatory asset when amounts are probable of recovery. Deferred debt interest is amortized over the recovery period for rate-making purposes. AFUDC represents the composite interest cost of borrowed funds and a reasonable return on the equity funds used for construction for subsidiaries that apply the guidance for accounting for regulated operations. Although AFUDC increases both utility plant and earnings, it is realized in cash when the assets are included in rates. The table below includes interest capitalized or deferred during the periods. Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Interest and AFUDC debt (1) (2) $ 44 $ 14 $ 22 $ 34 $ 13 $ 16 $ 27 $ 8 $ 13 AFUDC equity (3) 37 24 5 28 20 5 25 14 3 Other deferred debt interest (4) 33 12 21 10 1 9 3 — 3 (1) Included in Interest and other finance charges on CenterPoint Energy’s Statements of Consolidated Income, inclusive of $18 million, $16 million and $13 million of debt post in-service carrying costs on property, plant and equipment, primarily in Indiana, deferred into a regulatory asset in the years ended December 31, 2022, 2021 and 2020, respectively. (2) Included in Interest and other finance charges on CERC’s Statements of Consolidated Income, inclusive of $15 million, $13 million and $10 million of debt post in-service carrying costs on property, plant and equipment, primarily in Indiana, deferred into a regulatory asset in the years ended December 31, 2022, 2021 and 2020, respectively. (3) Included in Other Income (Expense) on the Registrants’ respective Statements of Consolidated Income. |
Income Taxes | Income Taxes Houston Electric and CERC are included in CenterPoint Energy’s U.S. federal consolidated income tax return. Houston Electric and CERC report their income tax provision on a separate entity basis pursuant to a tax sharing policy with CenterPoint Energy. Current federal and certain state income taxes are payable to or receivable from CenterPoint Energy. The Registrants use the asset and liability method of accounting for deferred income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is established against deferred tax assets for which management believes realization is not considered to be more likely than not. The Registrants recognize interest and penalties as a component of income tax expense (benefit), as applicable, in their respective Statements of Consolidated Income. CenterPoint Energy reports the income tax provision associated with its interest in Enable in discontinued operations, net of tax in its Statements of Consolidated Income. For further information, see Note 4. To the extent certain EDIT of the Registrants’ rate-regulated subsidiaries may be recoverable or payable through future rates, regulatory assets and liabilities have been recorded, respectively. See Note 14 for further discussion. The Registrants use the portfolio approach to recognize income tax effects on other comprehensive income from accumulated other comprehensive income. Investment tax credits are deferred and amortized to income over the approximate lives of the related property. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit LossesAccounts receivable are recorded at the invoiced amount and do not bear interest. Management reviews historical write-offs, current available information, and reasonable and supportable forecasts to estimate and establish allowance for credit losses. Account balances are charged off against the allowance when management determines it is probable the receivable will not be recovered. See Note 7 for further information about regulatory deferrals of bad debt expense, including those related to COVID-19 and the February 2021 Winter Storm Event. |
Inventory | Inventory The Registrants’ inventory consists principally of materials and supplies, and for CERC, natural gas, and for CenterPoint Energy, coal inventory. Materials and supplies are valued at the lower of average cost or market. Materials and supplies are recorded to inventory when purchased and subsequently charged to expense or capitalized to plant when installed. Certain natural gas in storage at CenterPoint Energy’s and CERC’s utilities are recorded using the LIFO method. CenterPoint Energy’s and CERC’s balances in inventory that were valued using LIFO method were as follows: Year Ended December 31, 2022 (1) 2021 2022 (1) 2021 CenterPoint Energy CERC (in millions) LIFO inventory $ 101 $ 101 $ 82 $ 79 (1) Based on the average cost of gas purchased during December 2022, both CenterPoint Energy’s and CERC’s cost of replacing inventories carried at LIFO cost was more than the carrying value at December 31, 2022 by $101 million. |
Derivative Instruments | Derivative InstrumentsThe Registrants are exposed to various market risks. These risks arise from transactions entered into in the normal course of business. The Registrants, from time to time, utilize derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices, weather and interest rates on operating results and cash flows. Such derivatives are recognized in the Registrants’ Consolidated Balance Sheets at their fair value unless the Registrant elects the normal purchase and sales exemption for qualified physical transactions. A derivative may be designated as a normal purchase or normal sale if the intent is to physically receive or deliver the product for use or sale in the normal course of business. CenterPoint Energy elected to record changes in the fair value of amounts excluded from the assessment of effectiveness immediately in its Statements of Consolidated Income, and such amounts will be captured in a regulatory asset or regulatory liability if they are recoverable or refundable to customers. |
Investments in Equity Securities (CenterPoint Energy) | Investments in Equity Securities (CenterPoint Energy)CenterPoint Energy reports equity securities at estimated fair value in the Consolidated Balance Sheets, and any gains and losses, net of any transaction costs, are recorded as Gain (Loss) on Equity Securities in the Statements of Consolidated Income. |
Environmental Costs | Environmental CostsThe Registrants expense or capitalize environmental expenditures, as appropriate, depending on their future economic benefit. The Registrants expense amounts that relate to an existing condition caused by past operations that do not have future economic benefit. The Registrants record undiscounted liabilities related to these future costs when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted CashFor purposes of reporting cash flows, the Registrants consider cash equivalents to be short-term, highly-liquid investments with maturities of three months or less from the date of purchase. Cash and cash equivalents held by the Bond Companies (VIEs) solely to support servicing the Securitization Bonds as of December 31, 2022 and 2021 are reflected on CenterPoint Energy’s and Houston Electric’s Consolidated Balance Sheets.In connection with the issuance of Securitization Bonds, CenterPoint Energy and Houston Electric were required to establish restricted cash accounts to collateralize the bonds that were issued in these financing transactions. These restricted cash accounts are not available for withdrawal until the maturity of the bonds and are not included in cash and cash equivalents. |
Preferred Stock Dividends | Preferred Stock and Dividends Preferred stock is evaluated to determine balance sheet classification, and all conversion and redemption features are evaluated for bifurcation treatment. Proceeds received net of issuance costs are recognized on the settlement date. Cash dividends become a liability once declared. Income available to common stockholders is computed by deducting from net income the dividends accumulated and earned during the period on cumulative preferred stock. |
Purchase Accounting | Purchase AccountingThe Registrants evaluate acquisitions to determine when a set of acquired activities and assets represent a business. When control of a business is obtained, the Registrants apply the acquisition method of accounting and record the assets acquired, liabilities assumed and any non-controlling interest obtained based on fair value at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the net assets acquired is recorded as goodwill. The results of operations of the acquired business are included in the Registrants’ respective Statements of Consolidated Income beginning on the date of the acquisition. |
New Accounting Pronouncements | New Accounting Pronouncements The following table provides an overview of certain recently adopted accounting pronouncements applicable to all the Registrants. Recently Adopted Accounting Standards ASU Number and Name Description Date of Adoption Financial Statement Impact ASU 2021-10: Government Assistance (Topic 832) Disclosures by Business Entities about Government Assistance This standard requires additional disclosure requirements when a business receives government assistance and uses a grant or contribution accounting model by analogy to other accounting guidance such as the grant model under International Accounting Standards (IAS) 20 Accounting for Government Grants and Disclosures of Government Assistance and GAAP ASC 958-605 Not for Profit. Transition method: Prospective or retrospective January 1, 2022 The prospective adoption of this standard resulted in additional annual disclosures related to the recovery of Texas natural gas costs associated with the February 2021 Winter Storm Event through the state securitization, which is accounted for as a government grant by analogy to IAS 20. The adoption of this standard did not have a material impact on the Registrants’ financial position, results of operations or cash flows. Management believes that other recently adopted and recently issued accounting standards that are not yet effective will not have a material impact on the Registrants’ financial position, results of operations or cash flows upon adoption. |
Leases | An arrangement is determined to be a lease at inception based on whether the Registrant has the right to control the use of an identified asset. ROU assets represent the Registrants’ right to use the underlying asset for the lease term and lease liabilities represent the Registrants’ obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Registrants are the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. Each Registrant uses the implicit rate for agreements in which it is a lessor. Lease income and expense for operating leases and ROU amortization for finance leases are recognized on a straight-line basis over the lease term. The Registrants have lease agreements with lease and non-lease components and have elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings and mobile generators. For classes of leases in which lease and non-lease components are not combined, consideration is allocated between components based on the stand-alone prices. Sublease income is not significant to the Registrants. The Registrants’ lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. There are no lease transactions with related parties. Agreements in which the Registrants are lessors do not include provisions for the lessee to purchase the assets. Because risk is minimal, the Registrants do not take any significant actions to manage risk associated with the residual value of their leased assets. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Public Utilities General Disclosures | The Registrants capitalize interest and AFUDC as a component of projects under construction and amortize it over the assets’ estimated useful lives once the assets are placed in service. Additionally, the Registrants defer interest costs into a regulatory asset when amounts are probable of recovery. Deferred debt interest is amortized over the recovery period for rate-making purposes. AFUDC represents the composite interest cost of borrowed funds and a reasonable return on the equity funds used for construction for subsidiaries that apply the guidance for accounting for regulated operations. Although AFUDC increases both utility plant and earnings, it is realized in cash when the assets are included in rates. The table below includes interest capitalized or deferred during the periods. Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Interest and AFUDC debt (1) (2) $ 44 $ 14 $ 22 $ 34 $ 13 $ 16 $ 27 $ 8 $ 13 AFUDC equity (3) 37 24 5 28 20 5 25 14 3 Other deferred debt interest (4) 33 12 21 10 1 9 3 — 3 (1) Included in Interest and other finance charges on CenterPoint Energy’s Statements of Consolidated Income, inclusive of $18 million, $16 million and $13 million of debt post in-service carrying costs on property, plant and equipment, primarily in Indiana, deferred into a regulatory asset in the years ended December 31, 2022, 2021 and 2020, respectively. (2) Included in Interest and other finance charges on CERC’s Statements of Consolidated Income, inclusive of $15 million, $13 million and $10 million of debt post in-service carrying costs on property, plant and equipment, primarily in Indiana, deferred into a regulatory asset in the years ended December 31, 2022, 2021 and 2020, respectively. (3) Included in Other Income (Expense) on the Registrants’ respective Statements of Consolidated Income. |
LIFO Inventory | The Registrants’ inventory consists principally of materials and supplies, and for CERC, natural gas, and for CenterPoint Energy, coal inventory. Materials and supplies are valued at the lower of average cost or market. Materials and supplies are recorded to inventory when purchased and subsequently charged to expense or capitalized to plant when installed. Certain natural gas in storage at CenterPoint Energy’s and CERC’s utilities are recorded using the LIFO method. CenterPoint Energy’s and CERC’s balances in inventory that were valued using LIFO method were as follows: Year Ended December 31, 2022 (1) 2021 2022 (1) 2021 CenterPoint Energy CERC (in millions) LIFO inventory $ 101 $ 101 $ 82 $ 79 (1) Based on the average cost of gas purchased during December 2022, both CenterPoint Energy’s and CERC’s cost of replacing inventories carried at LIFO cost was more than the carrying value at December 31, 2022 by $101 million. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table provides an overview of certain recently adopted accounting pronouncements applicable to all the Registrants. Recently Adopted Accounting Standards ASU Number and Name Description Date of Adoption Financial Statement Impact ASU 2021-10: Government Assistance (Topic 832) Disclosures by Business Entities about Government Assistance This standard requires additional disclosure requirements when a business receives government assistance and uses a grant or contribution accounting model by analogy to other accounting guidance such as the grant model under International Accounting Standards (IAS) 20 Accounting for Government Grants and Disclosures of Government Assistance and GAAP ASC 958-605 Not for Profit. Transition method: Prospective or retrospective January 1, 2022 The prospective adoption of this standard resulted in additional annual disclosures related to the recovery of Texas natural gas costs associated with the February 2021 Winter Storm Event through the state securitization, which is accounted for as a government grant by analogy to IAS 20. The adoption of this standard did not have a material impact on the Registrants’ financial position, results of operations or cash flows. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment includes the following: December 31, 2022 December 31, 2021 Weighted Average Useful Lives Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net (in years) (in millions) CenterPoint Energy Electric transmission and distribution 36 $ 19,154 $ 5,317 $ 13,837 $ 17,156 $ 4,658 $ 12,498 Electric generation (1) 26 2,120 813 1,307 1,807 1,179 628 Natural gas distribution 32 15,097 4,135 10,962 13,578 3,981 9,597 Finance ROU asset mobile generation 6.5 662 41 621 179 — 179 Other property 23 695 279 416 953 371 582 Total $ 37,728 $ 10,585 $ 27,143 $ 33,673 $ 10,189 $ 23,484 December 31, 2022 December 31, 2021 Weighted Average Useful Lives Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net (in years) (in millions) Houston Electric Electric transmission and distribution 38 $ 14,791 $ 3,556 $ 11,235 $ 13,321 $ 3,502 $ 9,819 Finance ROU asset mobile generation 6.5 662 41 621 179 — 179 Other property 20 2,300 695 1,605 1,773 568 1,205 Total $ 17,753 $ 4,292 $ 13,461 $ 15,273 $ 4,070 $ 11,203 CERC Natural gas distribution 32 $ 14,316 $ 3,946 $ 10,370 $ 12,885 $ 3,800 $ 9,085 Other property 17 63 27 36 49 26 23 Total $ 14,379 $ 3,973 $ 10,406 $ 12,934 $ 3,826 $ 9,108 (1) SIGECO and AGC own a 300 MW unit at the Warrick Power Plant (Warrick Unit 4) as tenants in common. SIGECO’s share of the cost of this unit as of December 31, 2022, is $198 million with accumulated depreciation totaling $162 million. AGC and SIGECO share equally in the cost of operation and output of the unit. SIGECO’s share of operating costs is included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income. |
Depreciation and Amortization | The following table presents depreciation and amortization expense for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Depreciation $ 1,013 $ 434 $ 420 $ 1,024 $ 391 $ 466 $ 961 $ 368 $ 426 Amortization of securitized regulatory assets 191 191 — 213 213 — 155 155 — Other amortization 84 45 28 79 38 17 73 37 15 Total $ 1,288 $ 670 $ 448 $ 1,316 $ 642 $ 483 $ 1,189 $ 560 $ 441 |
Asset Retirement Obligation | A reconciliation of the changes in the ARO liability recorded in Other non-current liabilities on each of the Registrants’ respective Consolidated Balance Sheets is as follows: December 31, 2022 December 31, 2021 CenterPoint Energy (1) Houston Electric CERC (1) CenterPoint Energy (1) Houston Electric CERC (1) (in millions) Beginning balance $ 659 $ 42 $ 479 $ 664 $ 43 $ 514 Accretion expense (2) 20 1 15 19 1 13 Revisions in estimates (3) (69) (7) (74) (24) (2) (48) Ending balance $ 610 $ 36 $ 420 $ 659 $ 42 $ 479 (1) Excludes ARO activity of Arkansas and Oklahoma Natural Gas businesses that were sold in January 2022 and are reflected as held for sale as of December 31, 2021. For further information, see Note 4. (2) Reflected in Regulatory assets on each of the Registrants’ respective Consolidated Balance Sheets. |
Held for Sale and Divestiture_2
Held for Sale and Divestitures (CenterPoint Energy and CERC) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale | The assets and liabilities of the Arkansas and Oklahoma Natural Gas businesses classified as held for sale in CenterPoint Energy’s and CERC’s Consolidated Balance Sheets, as applicable, as of December 31, 2021 included the following: December 31, 2021 CenterPoint Energy CERC (in millions) Receivables, net $ 46 $ 46 Accrued unbilled revenues 48 48 Natural gas inventory 46 46 Materials and supplies 9 9 Property, plant and equipment, net 1,314 1,314 Goodwill (1) 398 144 Regulatory assets 471 471 Other 6 6 Total current assets held for sale $ 2,338 $ 2,084 December 31, 2021 CenterPoint Energy CERC (in millions) Short term borrowings (2) $ 36 $ 36 Accounts payable 40 40 Taxes accrued 7 7 Customer deposits 12 12 Regulatory liabilities 365 365 Other 102 102 Total current liabilities held for sale $ 562 $ 562 (1) See Note 6 for further information about the allocation of goodwill to the disposed businesses. (2) Represents third-party AMAs associated with utility distribution service in Arkansas and Oklahoma. These transactions are accounted for as an inventory financing. For further information, see Notes 13 and 15. The pre-tax income for the Arkansas and Oklahoma Natural Gas businesses, excluding interest and corporate allocations, included in CenterPoint Energy’s and CERC’s Statements of Consolidated Income is as follows: Year Ended December 31, 2022 (1) 2021 2020 (in millions) Income from Continuing Operations Before Income Taxes $ 9 $ 78 $ 73 (1) Reflects January 1, 2022 to January 9, 2022 results only due to of the sale of the Arkansas and Oklahoma Natural Gas businesses. A summary of discontinued operations presented in CenterPoint Energy’s Statements of Consolidated Income is as follows: Year Ended December 31, 2021 Equity Method Investment in Enable (in millions) Equity in earnings of unconsolidated affiliate, net $ 1,019 Income from discontinued operations before income taxes 1,019 Income tax expense 201 Net income from discontinued operations $ 818 Year Ended December 31, 2020 Equity Method Investment in Enable Infrastructure Services Disposal Group Energy Services Disposal Group Total (in millions) Revenues $ — $ 250 $ 1,167 $ 1,417 Expenses: Non-utility cost of revenues — 50 1,108 1,158 Operation and maintenance — 184 34 218 Taxes other than income taxes — 1 3 4 Total — 235 1,145 1,380 Operating income — 15 22 37 Equity in losses of unconsolidated affiliate, net (1) (1,428) — — (1,428) Income (loss) from discontinued operations before income taxes (1,428) 15 22 (1,391) Loss on classification to held for sale, net (2) — (102) (96) (198) Income tax expense (benefit) (354) 24 (3) (333) Net loss from discontinued operations $ (1,074) $ (111) $ (71) $ (1,256) (1) CenterPoint Energy recognized a loss of $1,428 million from its investment in Enable for the year ended December 31, 2020. This loss included an impairment charge on CenterPoint Energy’s investment in Enable of $1,541 million and CenterPoint Energy’s interest in Enable’s $225 million impairment on an equity method investment. (2) Loss from classification to held for sale is inclusive of goodwill impairments, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. A summary of the Energy Services Disposal Group presented as discontinued operations in CERC’s Statements of Consolidated Income, as applicable, is as follows: Year Ended December 31, 2020 CERC (in millions) Revenues $ 1,167 Expenses: Non-utility cost of revenues 1,108 Operation and maintenance 34 Taxes other than income taxes 3 Total 1,145 Income from Discontinued Operations before income taxes 22 Loss on classification to held for sale, net (1) (90) Income tax expense (benefit) (2) Net income (loss) from Discontinued Operations $ (66) (1) Loss from classification to held for sale is inclusive of goodwill impairment, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. CenterPoint Energy and CERC have elected not to separately disclose discontinued operations on their respective Condensed Statements of Consolidated Cash Flows. Except as discussed in Note 2, l ong-lived assets are not depreciated or amortized once they are classified as held for sale. The following table summarizes CenterPoint Energy’s and CERC’s cash flows from discontinued operations and certain supplemental cash flow disclosures as applicable: Year Ended December 31, 2021 CenterPoint Energy Equity Method Investment in Enable (in millions) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Gain on Enable Merger $ (681) Equity in earnings of unconsolidated affiliate (339) Distributions from unconsolidated affiliate 155 Cash flows from investing activities: Transaction costs related to the Enable Merger (49) Cash received related to Enable Merger 5 Year Ended December 31, 2020 CenterPoint Energy Equity Method Investment in Enable Infrastructure Services Disposal Group Energy Services Disposal Group (in millions) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Write-down of natural gas inventory $ — $ — $ 3 Equity in losses of unconsolidated affiliate 1,428 — — Distributions from unconsolidated affiliate 113 — — Cash flows from investing activities: Capital expenditures — 18 3 Distributions from unconsolidated affiliate in excess of cumulative earnings 80 — — Year Ended December 31, 2020 CERC Energy Services Disposal Group (in millions) Cash flows from operating activities: Write-down of natural gas inventory $ 3 Cash flows from investing activities: Capital expenditures 3 |
Disposal Groups, Including Discontinued Operations | Distributions Received from Enable (CenterPoint Energy): Year Ended December 31, 2021 2020 Per Unit Cash Distribution Per Unit Cash Distribution (in millions, except per unit amounts) Enable Common Units $ 0.6610 $ 155 $ 0.8263 $ 193 Enable Series A Preferred Units (1) 2.2965 34 2.5000 36 Total $ 189 $ 229 (1) As of December 31, 2020, the Enable Series A Preferred Units annual distribution rate was 10%. On February 18, 2021, five years after the issue date, the Enable Series A Preferred Units annual distribution rate changed to a percentage of the Stated Series A Liquidation Preference per Enable Series A Preferred Unit equal to the sum of (a) Three-Month LIBOR, as calculated on each applicable date of determination, and (b) 8.5%. Transactions with Enable (CenterPoint Energy and CERC): The transactions with Enable through December 2, 2021 in the following tables exclude transactions with the Energy Services Disposal Group. CenterPoint Energy and CERC Year Ended December 31, 2021 2020 (in millions) Natural gas expenses, including transportation and storage costs (1) $ 85 $ 86 (1) Included in Non-utility costs of revenues, including natural gas on CenterPoint Energy’s and CERC’s respective Statements of Consolidated Income. Summarized Financial Information for Enable (CenterPoint Energy) As a result of the closing of the Enable Merger in 2021, there were no assets classified as held for sale as of December 31, 2021. Summarized consolidated balance sheet information for Enable on the closing of the Enable Merger is as follows: December 2, 2021 (1) (in millions) Current assets $ 594 Non-current assets 11,227 Current liabilities 1,254 Non-current liabilities 3,281 Non-controlling interest 26 Preferred equity 362 Accumulated other comprehensive loss (1) Enable partners’ equity 6,899 Reconciliation of Investment in Enable: CenterPoint Energy’s ownership interest in Enable partners’ equity $ 3,701 CenterPoint Energy’s basis difference (2,732) CenterPoint Energy’s equity method investment in Enable $ 969 (1) Reflects balances as of the closing of the Enable Merger on December 2, 2021. Summarized consolidated income (loss) information for Enable is as follows: Year Ended December 31, 2021 (1) 2020 (in millions) Operating revenues $ 3,466 $ 2,463 Cost of sales, excluding depreciation and amortization 1,959 965 Depreciation and amortization 382 420 Goodwill impairment — 28 Operating income 634 465 Net income attributable to Enable Common Units 461 52 Reconciliation of Equity in Earnings (Losses), net before income taxes: CenterPoint Energy’s interest $ 248 $ 28 Basis difference amortization (2) 92 87 Loss on dilution, net of proportional basis difference recognition (1) (2) Impairment of CenterPoint Energy’s equity method investment in Enable — (1,541) Gain on Enable Merger 680 — CenterPoint Energy’s equity in earnings (losses), net before income taxes (3) $ 1,019 $ (1,428) (1) Reflects January 1, 2021 to December 2, 2021 results only due to the closing of the Enable Merger. (2) Equity in earnings of unconsolidated affiliate includes CenterPoint Energy’s share of Enable earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference was being amortized through the year 2048 and ceased upon closing of the Enable Merger. (3) Reported as discontinued operations on CenterPoint Energy’s Statements of Consolidated Income. Year Ended December 31, 2020 (1) CenterPoint Energy CERC (in millions) Transportation revenue $ 34 $ 34 Natural gas expense 48 47 Fees incurred by CenterPoint Energy’s and CERC’s Natural Gas reportable segment for pipeline construction and repair services are as follows: Year Ended December 31, 2020 (1) CenterPoint Energy CERC (in millions) Pipeline construction and repair services capitalized $ 34 $ — Pipeline construction and repair service charges in operations and maintenance expense 1 1 (1) Represents charges for the period January 1, 2020 until the closing of the sale of the Infrastructure Services Disposal Group. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate revenues by reportable segment and major source and exclude operating revenues from the Energy Services and Infrastructure Services Disposal Groups, which are reflected as discontinued operations prior to the date of closing of each transaction. See Note 4 for further information. CenterPoint Energy Year Ended December 31, 2022 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts $ 4,095 $ 4,969 $ 263 $ 9,327 Other (1) 13 (23) 4 (6) Total revenues $ 4,108 $ 4,946 $ 267 $ 9,321 Year Ended December 31, 2021 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts $ 3,726 $ 4,281 $ 249 $ 8,256 Other (1) 37 55 4 96 Total revenues $ 3,763 $ 4,336 $ 253 $ 8,352 Year Ended December 31, 2020 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts $ 3,451 $ 3,586 $ 313 $ 7,350 Other (1) 19 45 4 68 Total revenues $ 3,470 $ 3,631 $ 317 $ 7,418 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Total lease income was $7 million, $7 million and $6 million for each of the years ended December 31, 2022, 2021 and 2020, respectively. Houston Electric Year Ended December 31, 2022 2021 2020 (in millions) Revenue from contracts $ 3,417 $ 3,117 $ 2,896 Other (1) (5) 17 15 Total revenues $ 3,412 $ 3,134 $ 2,911 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was not significant for the years ended December 31, 2022, 2021, and 2020. CERC Year Ended December 31, 2022 2021 2020 (in millions) Revenue from contracts $ 4,816 $ 4,148 $ 3,480 Other (1) (16) 52 51 Total revenues $ 4,800 $ 4,200 $ 3,531 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was $3 million, $3 million and less than $2 million, respectively, for the years ended December 31, 2022, 2021 and 2020. |
Contract with Customer, Asset and Liability | The opening and closing balances of accounts receivable, other accrued unbilled revenue, contract assets and contract liabilities from contracts with customers are as follows: CenterPoint Energy Accounts Receivable Other Accrued Unbilled Revenues Contract Contract Liabilities (in millions) Opening balance as of December 31, 2021 $ 627 $ 513 $ 15 $ 16 Closing balance as of December 31, 2022 858 764 4 45 Increase (decrease) $ 231 $ 251 $ (11) $ 29 The amount of revenue recognized in the year ended December 31, 2022 that was included in the opening contract liability was $15 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between CenterPoint Energy’s performance and the customer’s payment. Houston Electric Accounts Receivable Other Accrued Unbilled Revenues Contract Liabilities (in millions) Opening balance as of December 31, 2021 $ 225 $ 127 $ 4 Closing balance as of December 31, 2022 271 142 2 Increase (decrease) $ 46 $ 15 $ (2) The amount of revenue recognized in the year ended December 31, 2022 that was included in the opening contract liability was $4 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between Houston Electric’s performance and the customer’s payment. CERC Accounts Receivable Other Accrued (in millions) Opening balance as of December 31, 2021 $ 319 $ 335 Closing balance as of December 31, 2022 478 573 Increase $ 159 $ 238 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Remaining Performance Obligations (CenterPoint Energy). The table below discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts and (2) when CenterPoint Energy expects to recognize this revenue. Such contracts include energy performance and sustainable infrastructure services contracts of Energy Systems Group, which are included in Corporate and Other. Rolling 12 Months Thereafter Total (in millions) Revenue expected to be recognized on contracts in place as of December 31, 2022: Corporate and Other $ 288 $ 562 $ 850 $ 288 $ 562 $ 850 |
Accounts Receivable, Allowance for Credit Loss | The table below summarizes the Registrants’ bad debt expense amounts for 2022, 2021 and 2020, net of regulatory deferrals, including those related to COVID-19: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Bad debt expense $ 20 $ — $ 17 $ 12 $ — $ 10 $ 24 $ — $ 21 Bad debt expense deferred as regulatory asset $ — $ — $ — $ 16 $ 8 $ 8 $ 17 $ — $ 16 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (CenterPoint Energy and CERC) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Segments | CenterPoint Energy’s goodwill by reportable segment as of both December 31, 2022 and December 31, 2021 is as follows: (in millions) Electric (1) $ 936 Natural Gas (2) 2,920 Corporate and Other 438 Total $ 4,294 CERC’s goodwill has been recast to reflect the Restructuring and as of both December 31, 2022 and December 31, 2021 is as follows: (in millions) Goodwill (2) (3) $ 1,583 (1) Amount presented is net of the accumulated goodwill impairment charge of $185 million recorded in 2020. (2) Excludes $398 million and $144 million, respectively, of goodwill attributable to the Arkansas and Oklahoma Natural Gas businesses which was reflected on CenterPoint Energy’s and CERC’s respective Condensed Consolidated Balance Sheets in Current assets held for sale as of December 31, 2021 and disposed following the completion of the sale in January 2022. For further information, see Note 4. (3) Includes $972 million of goodwill attributable to the businesses transferred in the Restructuring as of both December 31, 2022 and December 31, 2021. See below for a discussion of the goodwill valuation determination. |
Schedule of Finite-Lived Intangible Assets | The tables below present information on CenterPoint Energy’s other intangible assets recorded in Other Assets on the Consolidated Balance Sheets and the related amortization expense included in Depreciation and amortization on CenterPoint Energy’s Statements of Consolidated Income, unless otherwise indicated in the tables below. December 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance (in millions) Customer relationships $ 33 $ (16) $ 17 $ 33 $ (12) $ 21 Trade names 16 (6) 10 16 (5) 11 Operation and maintenance agreements (1) 12 (2) 10 12 (1) 11 Other 2 (1) 1 2 (1) 1 Total $ 63 $ (25) $ 38 $ 63 $ (19) $ 44 (1) Amortization expense related to the operation and maintenance agreements and construction backlog is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Statements of Consolidated Income. |
Finite-lived Intangible Assets Amortization Expense | Year Ended December 31, 2022 2021 2020 (in millions) Amortization expense of intangible assets recorded in Depreciation and amortization (1) $ 6 $ 6 $ 6 Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas (2) 1 1 2 (1) Assets held for sale are not amortized. The table reflects amortization on continuing operations. For further information on discontinued operations, see Note 4. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | CenterPoint Energy estimates that amortization expense of intangible assets with finite lives for the next five years will be as follows: Amortization Expense (in millions) 2023 $ 6 2024 5 2025 5 2026 5 2027 4 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | The following is a list of regulatory assets and liabilities, excluding amounts related to the Arkansas and Oklahoma Natural Gas businesses classified as held for sale as of December 31, 2021, reflected on the Registrants’ respective Consolidated Balance Sheets as of December 31, 2022 and 2021. For information about regulatory assets and liabilities in held for sale, see Note 4. December 31, 2022 CenterPoint Energy Houston Electric CERC (in millions) Regulatory Assets: Future amounts recoverable from ratepayers related to: Benefit obligations (1) $ 392 $ — $ 5 Asset retirement obligations & other 237 64 155 Net deferred income taxes 83 34 40 Total future amounts recoverable from ratepayers 712 98 200 Amounts deferred for future recovery related to: Extraordinary gas costs 1,073 — 1,073 Cost recovery riders 133 — 57 Hurricane and February 2021 Winter Storm Event restoration costs 129 113 16 Other regulatory assets 129 46 67 Gas recovery costs 108 — 108 Decoupling 3 — 3 COVID-19 incremental costs 13 8 5 TEEEF costs 182 182 — Unrecognized equity return (2) (54) (27) (5) Total amounts deferred for future recovery 1,716 322 1,324 Amounts currently recovered in customer rates related to: Authorized trackers and cost deferrals 499 25 369 Securitized regulatory assets 229 229 — Unamortized loss on reacquired debt and hedging 88 64 12 Gas recovery costs 79 — 30 Extraordinary gas costs 294 — 294 Regulatory assets related to TCJA 47 47 — Hurricane Harvey restoration costs 30 30 — Benefit obligations 18 18 — Unrecognized equity return (3) (134) (55) (49) Total amounts recovered in customer rates (4) 1,150 358 656 Total Regulatory Assets $ 3,578 $ 778 $ 2,180 Total Current Regulatory Assets (5) $ 1,385 $ — $ 1,336 Total Non-Current Regulatory Assets $ 2,193 $ 778 $ 844 Regulatory Liabilities: Regulatory liabilities related to TCJA $ 1,436 $ 716 $ 536 Estimated removal costs 1,338 158 1,097 Other regulatory liabilities 496 281 193 Total Regulatory Liabilities $ 3,270 $ 1,155 $ 1,826 Total Current Regulatory Liabilities (6) $ 25 $ — $ 25 Total Non-Current Regulatory Liabilities $ 3,245 $ 1,155 $ 1,801 December 31, 2021 CenterPoint Energy Houston Electric CERC (in millions) Regulatory Assets: Future amounts recoverable from ratepayers related to: Benefit obligations (1) $ 412 $ — $ 5 Asset retirement obligations & other 240 45 171 Net deferred income taxes 41 29 5 Total future amounts recoverable from ratepayers 693 74 181 Amounts deferred for future recovery related to: Extraordinary gas costs 1,528 — 1,517 Cost recovery riders 124 — 51 Hurricane and February 2021 Winter Storm Event restoration costs 105 105 — Other regulatory assets 94 57 37 Gas recovery costs 29 — 29 Decoupling 25 — 25 COVID-19 incremental costs 23 8 15 TEEEF costs 21 21 — Unrecognized equity return (28) (3) (4) Total amounts deferred for future recovery 1,921 188 1,670 Amounts currently recovered in customer rates related to: Authorized trackers and cost deferrals 504 24 363 Securitized regulatory assets 420 420 — Unamortized loss on reacquired debt and hedging 92 67 11 Gas recovery costs 72 — 59 Extraordinary gas costs 66 — 66 Regulatory assets related to TCJA 48 46 2 Hurricane Harvey restoration costs 43 43 — Benefit obligations 28 24 4 Unrecognized equity return (3) (171) (97) (47) Total amounts recovered in customer rates 1,102 527 458 Total Regulatory Assets $ 3,716 $ 789 $ 2,309 Total Current Regulatory Assets (5) $ 1,395 $ — $ 1,371 Total Non-Current Regulatory Assets $ 2,321 $ 789 $ 938 Regulatory Liabilities: Regulatory liabilities related to TCJA $ 1,389 $ 738 $ 573 Estimated removal costs 1,304 229 994 Other regulatory liabilities 481 205 149 Total Regulatory Liabilities $ 3,174 $ 1,172 $ 1,716 Total Current Regulatory Liabilities (6) $ 21 $ 20 $ 1 Total Non-Current Regulatory Liabilities $ 3,153 $ 1,152 $ 1,715 (1) Pension and postretirement-related regulatory assets balances are measured annually, and the ending amortization period may change based on the actuarial valuation. (2) Represents the following: (a) CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments in Indiana; (b) Houston Electric’s allowed equity return on TEEEF costs and storm restoration costs; and (c) CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacements expenditures in Texas. (3) Represents the following: (a) CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments in Indiana; (b) Houston Electric’s allowed equity return on its true-up balance of stranded costs, other changes and related interest resulting from the formerly integrated electric utilities prior to Texas deregulation to be recovered in rates through 2024 and certain storm restoration balances; and (c) CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacements expenditures in Texas. (4) Of the $1.2 billion, $358 million and $656 million currently being recovered in customer rates related to CenterPoint Energy, Houston Electric and CERC, respectively, $390 million, $294 million and $96 million is earning a return, respectively. The weighted average recovery period of regulatory assets currently being recovered in base rates, not earning a return, which totals $531 million, $64 million and $424 million for CenterPoint Energy, Houston Electric and CERC, respectively, is 11 years, 28 years and 7 years, respectively. Regulatory assets not earning a return with perpetual or undeterminable lives have been excluded from the weighted average recovery period calculation. (5) Current regulatory assets for both CenterPoint Energy and CERC include extraordinary gas costs of $1,175 million as of December 31, 2022 and $1,256 million and $1,245 million, respectively, as of December 31, 2021. (6) Current regulatory liabilities are included in Other current liabilities in each of the Registrants’ respective Consolidated Balance Sheets. The table below reflects the amount of allowed equity return recognized by each Registrant in its Statements of Consolidated Income: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Allowed equity return recognized $ 45 $ 42 $ 2 $ 40 $ 37 $ 2 $ 31 $ 31 $ — |
Stock-Based Incentive Compens_2
Stock-Based Incentive Compensation Plans and Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Stock-Based Incentive Compensation Plans and Employee Benefit Plans [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes CenterPoint Energy’s expenses related to LTIPs for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (in millions) LTIP compensation expense (1) $ 51 $ 48 $ 38 Income tax benefit recognized 12 11 9 Actual tax benefit realized for tax deductions 6 4 5 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income and shown prior to any amounts capitalized. |
Share-Based Compensation, Activity | The following tables summarize CenterPoint Energy’s LTIP activity for 2022 Year Ended December 31, 2022 Shares Weighted-Average Remaining Average Aggregate Intrinsic Value (2) (Millions) Performance Awards (1) Outstanding and nonvested as of December 31, 2021 4,663 $ 24.48 Granted 1,781 28.12 Forfeited or canceled (856) 29.92 Vested and released to participants (431) 31.20 Outstanding and nonvested as of December 31, 2022 5,157 $ 24.26 1.0 $ 106 Stock Unit Awards Outstanding and nonvested as of December 31, 2021 2,367 $ 24.75 Granted 441 28.44 Forfeited or canceled (60) 24.98 Vested and released to participants (452) 28.35 Outstanding and nonvested as of December 31, 2022 2,296 $ 25.03 0.9 $ 69 (1) Reflects maximum performance achievement. (2) Reflects the impact of current expectations of achievement and stock price. |
Share-Based Compensation Arrangement By Award, Weighted Average Grant Date Fair Value, Grant Date Intrinsic Value, and Vested Grant Date Fair Value | The weighted average grant date fair values per unit of awards granted were as follows for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 (in millions, except for per unit amounts) Performance Awards Weighted-average grant date fair value per unit of awards granted $ 28.12 $ 21.89 $ 23.82 Total intrinsic value of awards received by participants 13 7 9 Vested grant date fair value 13 8 9 Stock Unit Awards Weighted-average grant date fair value per unit of awards granted $ 28.44 $ 24.20 $ 21.53 Total intrinsic value of awards received by participants 14 11 12 Vested grant date fair value 13 11 12 |
Schedule of Net Benefit Costs | CenterPoint Energy’s net periodic cost includes the following components relating to pension, including the non-qualified benefit plans: Year Ended December 31, 2022 2021 2020 (in millions) Service cost (1) $ 29 $ 39 $ 43 Interest cost (2) 73 59 75 Expected return on plan assets (2) (87) (103) (112) Amortization of net loss (2) 31 36 41 Settlement cost (2) (3) 126 38 2 Net periodic cost $ 172 $ 69 $ 49 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. (2) Amounts presented in the table above are included in Other, net (3) A one-time, non-cash settlement cost is required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. In 2022, 2021 and 2020, CenterPoint Energy recognized non-cash settlement cost due to lump sum settlement payments. The transfer of assets related to the 2022 Annuity Lift-Out is considered a lump sum settlement payment. Postretirement benefits are accrued over the active service period of employees. The net postretirement benefit cost includes the following components: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 2 $ — $ 1 $ 2 $ — $ 1 $ 2 $ — $ 1 Interest cost (2) 9 4 3 9 4 3 11 5 4 Expected return on plan assets (2) (5) (4) (1) (4) (3) (1) (5) (4) (1) Amortization of prior service cost (credit) (2) (3) (4) 2 (4) (5) 1 (4) (5) 1 Amortization of net loss (2) (4) (2) (1) — — — — — — Net postretirement benefit cost (credit) $ (1) $ (6) $ 4 $ 3 $ (4) $ 4 $ 4 $ (4) $ 5 (1) Amounts presented in the table above are included in Operation and maintenance expense in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. (2) Amounts presented in the table above are included in Other, net in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals. |
Schedule of Assumptions Used | CenterPoint Energy used the following assumptions to determine net periodic cost relating to pension benefits: Year Ended December 31, 2022 2021 2020 Discount rate 2.80 % 2.45 % 3.20 % Expected return on plan assets 5.00 5.00 5.75 Rate of increase in compensation levels 4.95 5.05 4.95 The following assumptions were used to determine net periodic cost relating to postretirement benefits: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC Discount rate 2.85 % 2.85 % 2.85 % 2.50 % 2.50 % 2.50 % 3.25 % 3.25 % 3.25 % Expected return on plan assets 3.22 3.32 2.86 3.20 3.30 2.85 3.95 4.05 3.35 |
Schedule of Net Pension and Post-retirement Benefit Costs | The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in the Consolidated Balance Sheets as well as the key assumptions of CenterPoint Energy’s pension plans. The measurement dates for plan assets and obligations were December 31, 2022 and 2021. December 31, 2022 2021 (in millions, except for actuarial assumptions) Change in Benefit Obligation Benefit obligation, beginning of year $ 2,298 $ 2,507 Service cost 29 38 Interest cost 73 59 Benefits paid (4) (509) (285) Actuarial (gain) loss (1) (338) (22) Plan amendment — 1 Benefit obligation, end of year 1,553 2,298 Change in Plan Assets Fair value of plan assets, beginning of year 2,072 2,135 Employer contributions 35 61 Benefits paid (4) (509) (285) Actual investment return (386) 161 Fair value of plan assets, end of year 1,212 2,072 Funded status, end of year $ (341) $ (226) Amounts Recognized in Balance Sheets Non-current assets $ — $ 6 Current liabilities-other (7) (7) Other liabilities-benefit obligations (334) (225) Net liability, end of year $ (341) $ (226) Actuarial Assumptions Discount rate (2) 5.15 % 2.80 % Expected return on plan assets (3) 6.50 5.00 Rate of increase in compensation levels 4.99 4.95 Interest crediting rate 3.00 2.25 (1) Significant sources of gain for 2022 include the increase in discount rate from 2.80% to 5.15%, partially offset by significant sources of loss that include expected return on assets exceeding actual return on plan assets during 2022. (2) The discount rate assumption was determined by matching the projected cash flows of CenterPoint Energy’s plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. (3) The expected rate of return assumption was developed using the targeted asset allocation of CenterPoint Energy’s plans and the expected return for each asset class. (4) Benefits paid for 2022 includes $136 million related to the 2022 Annuity Lift-Out. The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in consolidated balance sheets and the key assumptions of the postretirement plans. The measurement dates for plan assets and benefit obligations were December 31, 2022 and 2021. December 31, 2022 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions, except for actuarial assumptions) Change in Benefit Obligation Benefit obligation, beginning of year $ 336 $ 148 $ 118 $ 366 $ 168 $ 122 Service cost 2 — 1 2 — 1 Interest cost 9 4 3 9 4 3 Participant contributions 6 2 3 7 2 3 Benefits paid (20) (7) (8) (21) (9) (8) Early Retiree Reinsurance Program — — — 20 — 11 Plan amendment 3 — 2 — 5 — Actuarial (gain) loss (1) (73) (32) (27) (47) (22) (14) Benefit obligation, end of year 263 115 92 336 148 118 Change in Plan Assets Fair value of plan assets, beginning of year 132 104 29 134 106 28 Employer contributions 8 1 4 7 1 4 Participant contributions 6 2 3 7 2 3 Benefits paid (20) (7) (8) (21) (9) (8) Actual investment return (17) (16) (3) 5 4 2 Fair value of plan assets, end of year 109 84 25 132 104 29 Funded status, end of year $ (154) $ (31) $ (67) $ (204) $ (44) $ (89) Amounts Recognized in Balance Sheets Current liabilities — other $ (7) $ — $ (4) $ (7) $ — $ (4) Other liabilities — benefit obligations (147) (31) (64) (197) (44) (85) Net liability, end of year $ (154) $ (31) $ (68) $ (204) $ (44) $ (89) Actuarial Assumptions Discount rate (2) 5.15 % 5.15 % 5.15 % 2.85 % 2.85 % 2.85 % Expected return on plan assets (3) 3.66 3.75 3.35 3.22 3.32 2.86 Medical cost trend rate assumed for the next year - Pre-65 6.50 6.50 6.50 6.00 6.00 6.00 Medical/prescription drug cost trend rate assumed for the next year - Post-65 23.66 23.66 23.66 18.71 18.71 18.71 Prescription drug cost trend rate assumed for the next year - Pre-65 8.00 8.00 8.00 8.00 8.00 8.00 Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 4.50 4.50 4.50 4.50 4.50 Year that the cost trend rates reach the ultimate trend rate - Pre-65 2032 2032 2032 2029 2029 2029 Year that the cost trend rates reach the ultimate trend rate - Post-65 2032 2032 2032 2030 2030 2030 (1) Significant sources of gain for 2022 include updated life insurance rates and the increase in discount rate from 2.85% to 5.15%, offset by significant sources of loss including an increase in crediting rate and updated claims. (2) The discount rate assumption was determined by matching the projected cash flows of the plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table displays pension benefits related to CenterPoint Energy’s pension plans that have accumulated benefit obligations in excess of plan assets: December 31, 2022 2021 Pension Pension Pension Pension (in millions) Accumulated benefit obligation $ 1,497 $ 51 $ 2,216 $ 62 Projected benefit obligation 1,502 51 2,237 62 Fair value of plan assets 1,212 — 2,072 — |
Schedule of Accumulated Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss (gain) consist of the following: December 31, 2022 2021 Pension Postretirement Pension Postretirement CenterPoint Energy CenterPoint Energy CERC CenterPoint Energy CenterPoint Energy CERC (in millions) Unrecognized actuarial loss (gain) $ 70 $ (36) $ (28) $ 99 $ (23) $ (18) Unrecognized prior service cost — 13 11 — 13 12 Net amount recognized in accumulated other comprehensive loss (gain) $ 70 $ (23) $ (17) $ 99 $ (10) $ (6) Changes in accumulated comprehensive income (loss) are as follows: Year Ended December 31, 2022 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning Balance $ (64) $ — $ 10 $ (90) $ — $ 10 Other comprehensive income (loss) before reclassifications: Remeasurement of pension and other postretirement plans (40) — 10 16 — — Other comprehensive income (loss) from unconsolidated affiliates — — — 3 — — Amounts reclassified from accumulated other comprehensive loss: Prior service cost (1) (1) — (1) 1 — 1 Actuarial losses (1) 8 — 1 7 — — Settlement (2) 67 — — 4 — — Reclassification of deferred loss from cash flow hedges realized in net income 1 — — 2 — — Tax benefit (expense) (2) — (4) (7) — (1) Net current period other comprehensive income (loss) 33 — 6 26 — — Ending Balance $ (31) $ — $ 16 $ (64) $ — $ 10 (1) Amounts are included in the computation of net periodic cost and are reflected in Other, net in each of the Registrants’ respective Statements of Consolidated Income. (2) Amounts presented represent a one-time, non-cash settlement cost (benefit), prior to regulatory deferrals, which are required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. Amounts presented in the table above are included in Other income (expense), net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals. |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The changes in plan assets and benefit obligations recognized in other comprehensive income during 2022 are as follows: Pension Postretirement CenterPoint Energy CenterPoint Energy CERC (in millions) Net loss (gain) $ 45 $ (13) $ (16) Amortization of net loss (7) (1) (1) Amortization of prior service cost — 1 1 Settlement (67) — — Total recognized in comprehensive income $ (29) $ (13) $ (16) Total recognized in net periodic costs and Other comprehensive income $ 142 $ (19) $ (15) |
Target Allocation of Plan Assets | As part of the investment strategy discussed above, CenterPoint Energy maintained the following weighted average allocation targets for its pension plans as of December 31, 2022: Minimum Maximum U.S. equity 17 % 27 % International equity 9 % 19 % Real estate 2 % 11 % Fixed income 54 % 64 % Cash — % 2 % As part of the investment strategy discussed above, the Registrants maintained the following weighted average allocation targets for the postretirement plans as of December 31, 2022: CenterPoint Energy Houston Electric CERC Minimum Maximum Minimum Maximum Minimum Maximum U.S. equities 13 % 23 % 13 % 23 % 15 % 25 % International equities 3 % 13 % 3 % 13 % 2 % 12 % Fixed income 69 % 79 % 69 % 79 % 68 % 78 % Cash — % 2 % — % 2 % — % 2 % |
Schedule of Allocation of Plan Assets | The following tables set forth by level, within the fair value hierarchy (see Note 10), CenterPoint Energy’s pension plan assets at fair value as of December 31, 2022 and 2021: Fair Value Measurements as of December 31, 2022 2021 (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total (in millions) Cash $ 7 $ — $ — $ 7 $ 26 $ — $ — $ 26 Corporate bonds: Investment grade or above — 467 — 467 — 833 — 833 Equity securities: U.S. companies 29 — — 29 89 — — 89 Cash received as collateral from securities lending 47 — — 47 80 — — 80 U.S. treasuries and government agencies 163 — — 163 285 — — 285 Mortgage backed securities — 6 — 6 — 7 — 7 Asset backed securities — 2 — 2 — 3 — 3 Municipal bonds — 24 — 24 — 40 — 40 Mutual funds (2) — — — — — — — — International government bonds — 10 — 10 — 20 — 20 Obligation to return cash received as collateral from securities lending (47) — — (47) (80) — — (80) Total investments at fair value $ 199 $ 509 $ — $ 708 $ 400 $ 903 $ — $ 1,303 Investments measured by net asset value per share or its equivalent (1) (2) 504 769 Total Investments $ 1,212 $ 2,072 (1) Represents investments in pooled investment funds and common collective trust funds. (2) The amounts invested in pooled investment funds were allocated to real estate. The amounts invested common collective trust funds were allocated as follows: As of December 31, 2022 2021 Common Collective Trust Funds Common Collective Trust Funds International equities 40 % 41 % U.S. equities 56 % 58 % Fixed income 4 % 1 % The following table presents mutual funds by level, within the fair value hierarchy, the Registrants’ postretirement plan assets at fair value as of December 31, 2022 and 2021: Fair Value Measurements as of December 31, 2022 2021 Mutual Funds (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total (in millions) CenterPoint Energy $ 109 $ — $ — $ 109 $ 133 $ — $ — $ 133 Houston Electric 84 — — 84 105 — — 105 CERC 25 — — 25 28 — — 28 The amounts invested in mutual funds were allocated as follows: As of December 31, 2022 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC Fixed income 74 % 74 % 74 % 72 % 73 % 71 % U.S. equities 18 % 17 % 20 % 20 % 19 % 22 % International equities 8 % 8 % 6 % 8 % 8 % 7 % |
Benefit Plan Contributions | The Registrants made the following contributions in 2022 and are required to make the following minimum contributions in 2023 to the indicated benefit plans below: Contributions in 2022 Expected Minimum Contributions in 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Qualified pension plans $ 27 $ — $ — $ — $ — $ — Non-qualified pension plans 8 — — 7 — — Postretirement benefit plans 8 1 4 8 1 4 |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid by the pension and postretirement benefit plans: Pension Postretirement Benefits CenterPoint CenterPoint Houston Electric CERC (in millions) 2023 $ 134 $ 15 $ 6 $ 6 2024 138 17 7 6 2025 137 18 8 6 2026 134 19 9 7 2027 134 20 9 7 2028-2032 608 106 49 35 |
Defined Contribution Plan Disclosures | CenterPoint Energy allocates the savings plan benefit expense to Houston Electric and CERC related to their respective employees. The following table summarizes the Registrants’ savings plan benefit expense for 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Savings plan benefit expenses (1) $ 72 $ 23 $ 22 $ 58 $ 20 $ 23 $ 58 $ 18 $ 25 (1) Amounts presented in the table above are included in Operation and maintenance expense in the Registrants’ respective Statements of Consolidated Income and shown prior to any amounts capitalized. |
Other Benefit Plans | Expenses related to other benefit plans were recorded as follows: Year Ended December 31, 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Postemployment benefits $ 4 $ 1 $ 1 $ 3 $ 1 $ 2 $ 1 $ 1 $ — Deferred compensation plans 1 — — 3 — — 4 1 — Amounts related to other benefit plans were included in Benefit Obligations in the Registrants’ accompanying Consolidated Balance Sheets as follows: December 31, 2022 December 31, 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Postemployment benefits $ 9 $ 3 $ 4 $ 8 $ 3 $ 5 Deferred compensation plans 28 4 1 40 6 4 Split-dollar life insurance arrangements 22 1 — 29 1 — |
Other Employee Matters | As of December 31, 2022, the Registrants’ employees were covered by collective bargaining agreements as follows: Percentage of Employees Covered Agreement Expiration CenterPoint Energy Houston Electric CERC IBEW Local 66 May 2023 16 % 54 % — % OPEIU Local 12 December 2025 2 % — % 2 % Gas Workers Union Local 340 April 2025 5 % — % 13 % IBEW Locals 1393 and USW Locals 12213 & 7441 December 2023 3 % — % 8 % IBEW Locals 949 December 2025 3 % — % 8 % USW Locals 13-227 June 2027 6 % — % 14 % USW Locals 13-1 July 2027 — % — % 1 % IBEW Local 702 June 2025 3 % — % — % Teamsters Local 135/215 September 2024 — % — % — % UWUA Local 175 October 2024 1 % — % 4 % Total 39 % 54 % 50 % The collective bargaining agreements with IBEW 1393, USW 12213, USW 7441 related to Natural Gas employees are scheduled to expire in December 2023 and the collective bargaining agreement with IBEW 66 related to Houston Electric employees is scheduled to expire in May 2023; negotiations of these agreements are expected to be completed before the respective expirations. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The table below summarizes CenterPoint Energy’s outstanding interest rate hedging activity: December 31, 2022 December 31, 2021 Hedging Classification Notional Principal (in millions) Economic hedge (1) $ 84 $ 84 (1) Relates to interest rate derivative instruments at SIGECO. |
Fair Value of Derivative Instruments | The following tables present information about derivative instruments and hedging activities. The first table provides a balance sheet overview of Derivative Assets and Liabilities as of December 31, 2022 and 2021, while the last table provides a breakdown of the related income statement impacts for the years ending December 31, 2022, 2021 and 2020. Fair Value of Derivative Instruments and Hedged Items (CenterPoint Energy and CERC) CenterPoint Energy December 31, 2022 December 31, 2021 Balance Sheet Location Derivative Derivative Derivative Derivative (in millions) Derivatives not designated as hedging instruments: Natural gas derivatives (1) Current Assets: Non-trading derivative assets $ 9 $ — $ 9 $ — Interest rate derivatives Current Assets: Non-trading derivative assets 1 — — — Natural gas derivatives (1) Other Assets: Non-trading derivative assets 2 — 5 — Interest rate derivatives Current Liabilities: Non-trading derivative liabilities — — — 2 Interest rate derivatives Other Liabilities: Non-trading derivative liabilities — — — 12 Indexed debt securities derivative (2) Current Liabilities — 578 — 903 Total $ 12 $ 578 $ 14 $ 917 CERC December 31, 2022 December 31, 2021 Balance Sheet Location Derivative Derivative Liabilities Derivative Derivative Liabilities Derivatives not designated as hedging instruments: (in millions) Natural gas derivatives (1) Current Assets: Non-trading derivative assets $ 7 $ — $ 8 $ — Natural gas derivatives (1) Other Assets: Non-trading derivative assets 2 — 4 — Total $ 9 $ — $ 12 $ — (1) Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract is in an asset position with no offsetting amount. (2) Derivative component of the ZENS obligation that represents the ZENS holder’s option to receive the appreciated value of the reference shares at maturity. See Note 11 for further information. |
Income Statement Impact of Derivative Activity | Income Statement Impact of Hedge Accounting Activity (CenterPoint Energy) Year Ended December 31, Income Statement Location 2022 2021 2020 (in millions) Effects of derivatives not designated as hedging instruments on the income statement: Indexed debt securities derivative Gain (loss) on indexed debt securities $ 325 $ 50 $ (60) Total CenterPoint Energy $ 325 $ 50 $ (60) (c) Credit Risk Contingent Features (CenterPoint Energy) Certain of CenterPoint Energy’s derivative instruments contain provisions that require CenterPoint Energy’s debt to maintain an investment grade credit rating on its long-term unsecured unsubordinated debt from S&P and Moody’s. If CenterPoint Energy’s debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment. As of December 31, 2022 2021 (in millions) Aggregate fair value of derivatives with credit-risk-related contingent features in a liability position $ — $ 14 Fair value of collateral already posted — 7 Additional collateral required to be posted if credit risk contingent features triggered (1) — 7 (1) The maximum collateral required if further escalating collateral is triggered would equal the net liability position. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on a Recurring Basis | The following tables present information about the Registrants’ assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2022 and December 31, 2021, and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value. CenterPoint Energy December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Equity securities $ 510 $ — $ — $ 510 $ 1,439 $ — $ — $ 1,439 Investments, including money market funds (1) 32 — — 32 42 — — 42 Interest rate derivatives — 1 — 1 — — — — Natural gas derivatives — 11 — 11 — 14 — 14 Total assets $ 542 $ 12 $ — $ 554 $ 1,481 $ 14 $ — $ 1,495 Liabilities Indexed debt securities derivative $ — $ 578 $ — $ 578 $ — $ 903 $ — $ 903 Interest rate derivatives — — — — — 14 — 14 Total liabilities $ — $ 578 $ — $ 578 $ — $ 917 $ — $ 917 Houston Electric December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 17 $ — $ — $ 17 $ 27 $ — $ — $ 27 Total assets $ 17 $ — $ — $ 17 $ 27 $ — $ — $ 27 CERC December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 14 $ — $ — $ 14 $ 14 $ — $ — $ 14 Natural gas derivatives — 9 — 9 — 12 — 12 Total assets $ 14 $ 9 $ — $ 23 $ 14 $ 12 $ — $ 26 (1) Amounts are included in Prepaid and Other Current Assets in the respective Consolidated Balance Sheets. |
Estimated Fair Value of Financial Instruments, Debt 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 equity securities, including ZENS related derivative liabilities, 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 a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy. December 31, 2022 December 31, 2021 CenterPoint Energy (1) Houston Electric (1) CERC CenterPoint Energy (1) Houston Electric (1) CERC Long-term debt, including current maturities (in millions) Carrying amount $ 16,338 $ 6,353 $ 4,826 $ 16,086 $ 5,495 $ 5,552 Fair value 14,990 5,504 4,637 17,385 6,230 5,999 (1) Includes Securitization Bond debt. |
Equity Securities and Indexed_2
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Indexed Debt Securities [Abstract] | |
Summarized Financial Information on Investment in Time Warner Securities and Indexed Debt Security Obligation | CenterPoint Energy’s sales of equity securities during the year ended December 31, 2022 are as follows: Equity Security/Date Sold Units Sold Proceeds (1) (in millions) Energy Transfer Common Units February and March 2022 50,999,768 $ 515 Energy Transfer Series G Preferred Units March 2022 192,390 $ 187 (1) Proceeds are net of transaction costs. CenterPoint Energy’s reference shares for each ZENS consisted of the following: December 31, 2022 2021 (in shares) AT&T Common 0.7185 0.7185 Charter Common 0.061382 0.061382 WBD Common 0.173817 — The following table sets forth summarized financial information regarding CenterPoint Energy’s investment in ZENS-Related Securities and each component of CenterPoint Energy’s ZENS obligation. ZENS-Related Debt Derivative (in millions) Balance as of December 31, 2019 $ 822 $ 19 $ 893 Accretion of debt component of ZENS — 17 — 2% interest paid — (16) — Distribution to ZENS holders — (5) — Loss on indexed debt securities — — 60 Gain on ZENS-Related Securities 49 — — Balance as of December 31, 2020 871 15 953 Accretion of debt component of ZENS — 17 — 2% interest paid — (17) — Distribution to ZENS holders — (5) — Gain on indexed debt securities — — (50) Loss on ZENS-Related Securities (51) — — Balance as of December 31, 2021 820 10 903 Accretion of debt component of ZENS — 17 — 2% interest paid — (17) — Distribution to ZENS holders — (3) — Gain on indexed debt securities — — (325) Loss on ZENS-Related Securities (313) — — Balance as of December 31, 2022 $ 507 $ 7 $ 578 |
Gain (Loss) on Securities | Gains and losses on equity securities, net of transaction costs, are recorded as Gain (Loss) on Equity Securities in CenterPoint Energy’s Statements of Consolidated Income. Gains (Losses) on Equity Securities Year Ended December 31, 2022 2021 2020 (in millions) AT&T Common $ (63) $ (43) $ (105) Charter Common (273) (8) 154 WBD Common 23 — — Energy Transfer Common Units 95 (124) — Energy Transfer Series G Preferred Units (9) 2 — Other — 1 — $ (227) $ (172) $ 49 |
Debt Securities, Trading, and Equity Securities, FV-NI | CenterPoint Energy and its subsidiaries hold shares of certain securities detailed in the table below, which are classified as trading securities. Shares of AT&T Common, Charter Common and WBD Common are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. Shares Held at December 31, Carrying Value at December 31, 2022 2021 2022 2021 (in millions) AT&T Common 10,212,945 10,212,945 188 $ 251 Charter Common 872,503 872,503 296 569 WBD Common 2,470,685 — 23 — Energy Transfer Common Units — 50,999,768 — 420 Energy Transfer Series G Preferred Units — 192,390 — 196 Other 3 3 $ 510 $ 1,439 |
Equity (CenterPoint Energy) (Ta
Equity (CenterPoint Energy) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Dividends Declared | CenterPoint Energy declared and paid dividends on its Common Stock during 2022, 2021 and 2020 as presented in the table below: Dividends Declared Per Share Dividends Paid Per Share 2022 2021 2020 (2) 2022 2021 2020 (2) Common Stock $ 0.7200 $ 0.6600 $ 0.9000 $ 0.7000 $ 0.6500 $ 0.7400 Series A Preferred Stock 61.2500 61.2500 91.8750 61.2500 61.2500 61.2500 Series B Preferred Stock — 35.0000 87.5000 — 52.5000 70.0000 Series C Preferred Stock (1) — — 0.6100 — 0.1600 0.4500 (1) The Series C Preferred Stock was entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. The per share amount reflects the dividend per share of Common Stock as if the Series C Preferred Stock were converted into Common Stock. All of the outstanding Series C Preferred Stock was converted to Common Stock during 2021 as described below. (2) On April 1, 2020, in response to the reduction in cash flow related to the reduction in Enable quarterly common unit distributions announced by Enable on April 1, 2020, CenterPoint Energy announced a reduction of its quarterly Common Stock dividend per share from $0.2900 to $0.1500. Preferred Stock (CenterPoint Energy) Liquidation Preference Per Share Shares Outstanding as of December 31, Outstanding Value as of December 31, 2022 2021 2020 2022 2021 2020 (in millions, except shares and per share amount) Series A Preferred Stock $ 1,000 800,000 800,000 800,000 $ 790 $ 790 $ 790 Series B Preferred Stock 1,000 — — 977,400 — — 950 Series C Preferred Stock 1,000 — — 625,000 — — 623 800,000 800,000 2,402,400 $ 790 $ 790 $ 2,363 Dividend Requirement on Preferred Stock Year Ended December 31, 2022 2021 2020 (in millions) Series A Preferred Stock $ 49 $ 49 $ 49 Series B Preferred Stock — 46 68 Series C Preferred Stock — — 27 Preferred dividend requirement 49 95 144 Amortization of beneficial conversion feature — — 32 Total income allocated to preferred shareholders $ 49 $ 95 $ 176 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss (gain) consist of the following: December 31, 2022 2021 Pension Postretirement Pension Postretirement CenterPoint Energy CenterPoint Energy CERC CenterPoint Energy CenterPoint Energy CERC (in millions) Unrecognized actuarial loss (gain) $ 70 $ (36) $ (28) $ 99 $ (23) $ (18) Unrecognized prior service cost — 13 11 — 13 12 Net amount recognized in accumulated other comprehensive loss (gain) $ 70 $ (23) $ (17) $ 99 $ (10) $ (6) Changes in accumulated comprehensive income (loss) are as follows: Year Ended December 31, 2022 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning Balance $ (64) $ — $ 10 $ (90) $ — $ 10 Other comprehensive income (loss) before reclassifications: Remeasurement of pension and other postretirement plans (40) — 10 16 — — Other comprehensive income (loss) from unconsolidated affiliates — — — 3 — — Amounts reclassified from accumulated other comprehensive loss: Prior service cost (1) (1) — (1) 1 — 1 Actuarial losses (1) 8 — 1 7 — — Settlement (2) 67 — — 4 — — Reclassification of deferred loss from cash flow hedges realized in net income 1 — — 2 — — Tax benefit (expense) (2) — (4) (7) — (1) Net current period other comprehensive income (loss) 33 — 6 26 — — Ending Balance $ (31) $ — $ 16 $ (64) $ — $ 10 (1) Amounts are included in the computation of net periodic cost and are reflected in Other, net in each of the Registrants’ respective Statements of Consolidated Income. (2) Amounts presented represent a one-time, non-cash settlement cost (benefit), prior to regulatory deferrals, which are required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. Amounts presented in the table above are included in Other income (expense), net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals. |
Short-term Borrowings and Lon_2
Short-term Borrowings and Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | December 31, December 31, Long-Term Current (1) Long-Term Current (1) (in millions) CenterPoint Energy: ZENS due 2029 (2) $ — $ 7 $ — $ 10 CenterPoint Energy senior notes 1.45% to 4.61% due 2024 to 2049 3,050 — 3,650 — CenterPoint Energy pollution control bonds 5.125% due 2028 (3) 68 — 68 — CenterPoint Energy commercial paper (4) (5) 1,770 — 1,400 — VUH senior notes (see Debt Exchange below) — — 377 — VUH commercial paper (4) (5) — — 350 — SIGECO first mortgage bonds 0.875% to 6.72% due 2024 to 2055 (6) 277 11 288 5 Other debt — 4 4 3 Unamortized debt issuance costs (15) — (23) — Unamortized discount and premium, net (6) — (7) — Houston Electric debt (see details below) 6,197 156 4,975 520 CERC third party debt (see details below) 3,495 1,842 4,476 7 Total CenterPoint Energy debt $ 14,836 $ 2,020 $ 15,558 $ 545 Houston Electric: General mortgage bonds 2.35% to 6.95% due 2026 to 2052 (8) $ 6,112 $ — $ 4,712 $ 300 Other 1 — — — Restoration Bond Company: System restoration bonds 4.243% due 2022 — — — 70 Bond Company IV: Transition bonds 3.028% due 2024 161 156 317 150 Unamortized debt issuance costs (50) — (36) — Unamortized discount and premium, net (27) — (18) — Total Houston Electric debt $ 6,197 $ 156 $ 4,975 $ 520 CERC (7) : Short-term borrowings: Inventory financing (9) $ — $ 11 $ — $ 7 Term loan — 500 — — Total CERC short-term borrowings — 511 — 7 Long-term debt: Senior notes 0.70% to 6.625% due 2023 to 2047 $ 2,620 $ 1,331 $ 3,500 $ — Indiana Gas senior notes 6.34% to 7.08% due 2025 to 2029 96 — 96 — Commercial paper (4) (5) 805 — 899 — Unamortized debt issuance costs (22) — (15) — Unamortized discount and premium, net (4) — (4) — Total CERC third-party long-term debt 3,495 1,331 4,476 — Indiana Gas and VEDO notes payable to CenterPoint Energy — — 1,076 — Total CERC debt $ 3,495 $ 1,842 $ 5,552 $ 7 (1) Includes amounts due or exchangeable within one year of the date noted. (2) CenterPoint Energy’s ZENS obligation is bifurcated into a debt component and an embedded derivative component. For additional information regarding ZENS, see Note 11(b). As ZENS are exchangeable for cash at any time at the option of the holders, these notes are classified as a current portion of long-term debt. (3) These pollution control bonds were secured by general mortgage bonds of Houston Electric as of December 31, 2022 and 2021 and are not reflected in Houston Electric’s consolidated financial statements because of the contingent nature of the obligations. (4) Classified as long-term debt because the termination date of the facility that backstops the commercial paper is more than one year from the date noted. (5) Commercial paper issued by CenterPoint Energy and CERC Corp. has maturities up to 60 days and 30 days, respectively, and are backstopped by the respective issuer’s long-term revolving credit facility. The VUH credit facility was terminated in connection with the Restructuring, as discussed below, and VUH no longer issues commercial paper. (6) The first mortgage bonds issued by SIGECO subject SIGECO’s properties to a lien under the related mortgage indenture as further discussed below. (7) Issued by CERC Corp. (8) The general mortgage bonds issued by Houston Electric subject Houston Electric’s properties to a lien under the General Mortgage as further discussed below. (9) Represents AMA transactions accounted for as an inventory financing. Outstanding obligations related to third-party AMAs associated with utility distribution service in Arkansas and Oklahoma of $36 million as of December 31, 2021 are reflected in current liabilities held for sale on CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets. For further information about AMAs, see Notes 4 and 15. |
Schedule of Revolving Credit Facilities and Utilization of Such Facilities | During 2022, the following debt instruments were issued or incurred: Registrant Issuance Date Debt Instrument Aggregate Principal Amount Interest Rate Maturity Date (in millions) Houston Electric February 2022 General Mortgage Bonds (1) $ 300 3.00% 2032 Houston Electric February 2022 General Mortgage Bonds (1) 500 3.60% 2052 Houston Electric September 2022 General Mortgage Bonds (2) 500 4.45% 2032 Houston Electric September 2022 General Mortgage Bonds (2) 300 4.85% 2052 Total Houston Electric (1) 1,600 CERC June 2022 Senior Notes (3) 500 4.40% 2032 CERC August 2022 Term Loan (4) 500 SOFR (5) + 0.70% 2023 Total CERC 1,000 Total CenterPoint Energy $ 2,600 (1) Total proceeds, net of discounts and issuance expenses and fees, of approximately $784 million were used for general limited liability company purposes, including capital expenditures and the repayment of all or a portion of Houston Electric’s borrowings under the CenterPoint Energy money pool. (2) Total proceeds, net of discounts and issuance expenses and fees, of approximately $789 million were used for general limited liability company purposes, including capital expenditures, the repayment of all or a portion of Houston Electric’s borrowings under the CenterPoint Energy money pool and the redemption of outstanding general mortgage bonds discussed below. (3) Total proceeds, net of discounts and issuance expenses and fees, of approximately $495 million were used for general corporate purposes, including the issuance by CERC Corp.’s current subsidiaries, Indiana Gas and VEDO, of intercompany notes to CERC Corp. in June 2022; these subsidiaries used the funds to repay intercompany debt owed to VUH in connection with the Restructuring in June 2022. (4) Total proceeds, net of discounts and issuance expenses and fees, of approximately $500 million were used for general corporate purposes, including the repayment of CERC’s outstanding commercial paper balances. The term loan is reflected in short-term borrowings on CenterPoint Energy’s and CERC’s Consolidated Balance Sheets. (5) As defined in the term loan agreement, which includes an adjustment of 0.10% per annum. Registrant Repayment/Redemption Date Debt Instrument Aggregate Principal Interest Rate Maturity Date (in millions) CERC (1) January 2022 Floating Rate Senior Notes $ 425 Three-month LIBOR plus 0.5% 2023 Total CERC 425 Houston Electric August 2022 General Mortgage Bonds 300 2.25% 2022 Houston Electric (2) October 2022 General Mortgage Bonds 200 5.60% 2023 Total Houston Electric 500 CenterPoint Energy (3) January 2022 First Mortgage Bonds 5 0.82% 2022 CenterPoint Energy (4) March 2022 Senior Notes 250 3.85% 2024 CenterPoint Energy (5) March 2022 Senior Notes 350 4.25% 2028 Total CenterPoint Energy $ 1,530 (1) In January 2022, CERC provided notice of partial redemption, and on January 31, 2022, CERC redeemed a portion ($425 million) of the outstanding $1 billion aggregate principal amount of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest on the principal amount being redeemed. (2) In September 2022, Houston Electric provided notice of redemption, and on October 17, 2022, Houston Electric redeemed $200 million aggregate principal amount, plus accrued and unpaid interest of approximately $3 million and an applicable make-whole premium of approximately $2 million, for a total redemption price of $205 million. (3) First Mortgage Bonds issued by SIGECO. (4) In March 2022, CenterPoint Energy provided notice of redemption, and on March 30, 2022, CenterPoint Energy redeemed all of the remaining outstanding senior notes of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest of approximately $2 million, the write off of issuance costs of $1 million and an applicable make-whole premium of approximately $7 million for a total redemption price of $260 million. (5) In March 2022, CenterPoint Energy provided notice of partial redemption, and on March 30, 2022, CenterPoint Energy redeemed a portion ($350 million) of the outstanding $500 million aggregate principal amount of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest of approximately $6 million, the write off of issuance costs of $3 million and an applicable make-whole premium of approximately $34 million for a total redemption price of $393 million. The Registrants had the following revolving credit facilities as of December 31, 2022: Execution Registrant Size of Draw Rate of SOFR plus (1) Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio Debt for Borrowed Money to Capital Ratio as of December 31, 2022 (2) Termination (in millions) December 6, 2022 CenterPoint Energy $ 2,400 1.500% 65% (3) 61.8% December 6, 2027 December 6, 2022 CenterPoint Energy (4) 250 1.125% 65% 45.2% December 6, 2027 December 6, 2022 Houston Electric 300 1.250% 67.5% (3) 54.4% December 6, 2027 December 6, 2022 CERC 1,050 1.125% 65% 49.9% December 6, 2027 Total $ 4,000 (1) Based on credit ratings as of December 31, 2022. (2) As defined in the revolving credit facility agreement, excluding Securitization Bonds. (3) For CenterPoint Energy and Houston Electric, the financial covenant limit will temporarily increase 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 12-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. (4) This credit facility was issued by SIGECO. The Registrants, as well as the subsidiaries of CenterPoint Energy discussed above, were in compliance with all financial debt covenants as of December 31, 2022. As of December 31, 2022 and 2021, the Registrants had the following revolving credit facilities and utilization of such facilities: December 31, 2022 December 31, 2021 Registrant Size of Loans Letters Commercial Weighted Average Interest Rate Size of Loans Letters Commercial Weighted Average Interest Rate (in millions, except weighted average interest rate) CenterPoint Energy (1) $ 2,400 $ — $ 11 $ 1,770 4.71 % $ 2,400 $ — $ 11 $ 1,400 0.34 % CenterPoint Energy (2) — — — — — % 400 — — 350 0.21 % Houston Electric 300 — — — — % 300 — — — — % CERC 1,050 — — 805 4.67 % 900 — — 899 0.26 % SIGECO 250 — — — — % — — — — — % Total $ 4,000 $ — $ 11 $ 2,575 $ 4,000 $ — $ 11 $ 2,649 (1) CenterPoint Energy’s outstanding commercial paper generally has maturities of 60 days or less. (2) This credit facility was issued by VUH and was terminated in connection with the Restructuring, as discussed above. |
Schedule of Maturities of Long-term Debt | Maturities. As of December 31, 2022, maturities of long-term debt through 2027, excluding the ZENS obligation and unamortized discounts, premiums and issuance costs, were as follows: CenterPoint Energy (1) Houston Electric (1) CERC Securitization Bonds (in millions) 2023 $ 1,999 $ 156 $ 1,832 $ 156 2024 1,384 161 — 161 2025 51 — 10 — 2026 860 300 60 — 2027 2,901 300 831 — (1) These maturities include Securitization Bonds principal repayments on scheduled payment dates. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | The components of the Registrant’s income tax expense (benefit) were as follows: Year Ended December 31, 2022 2021 2020 (in millions) CenterPoint Energy - Continuing Operations Current income tax expense (benefit): Federal $ 294 $ — $ (36) State 46 (28) 32 Total current expense (benefit) 340 (28) (4) Deferred income tax expense (benefit): Federal 16 78 63 State 4 60 21 Total deferred expense 20 138 84 Total income tax expense $ 360 $ 110 $ 80 CenterPoint Energy - Discontinued Operations Current income tax expense: Federal $ — $ 91 $ 152 State — 35 28 Total current expense — 126 180 Deferred income tax expense (benefit): Federal — 127 (422) State — (52) (91) Total deferred expense (benefit) — 75 (513) Total income tax expense (benefit) $ — $ 201 $ (333) Houston Electric Current income tax expense: Federal $ 23 $ 22 $ 76 State 16 22 19 Total current expense 39 44 95 Deferred income tax expense (benefit): Federal 86 31 (42) State — 1 — Total deferred expense (benefit) 86 32 (42) Total income tax expense $ 125 $ 76 $ 53 CERC - Continuing Operations Current income tax expense (benefit): Federal $ 30 $ — $ — State 28 (25) 2 Total current expense (benefit) 58 (25) 2 Deferred income tax expense (benefit): Federal 164 67 42 State 14 34 73 Total deferred expense (benefit) 178 101 115 Total income tax expense (benefit) $ 236 $ 76 $ 117 Year Ended December 31, 2022 2021 2020 (in millions) CERC - Discontinued Operations Current income tax expense: Federal $ — $ — $ — State — — — Total current expense — — — Deferred income tax expense (benefit): Federal — — — State — — (2) Total deferred expense (benefit) — — (2) Total income tax expense (benefit) $ — $ — $ (2) |
Reconciliation of Expected Federal Income Tax Expense to Actual | A reconciliation of income tax expense (benefit) using the federal statutory income tax rate to the actual income tax expense and resulting effective income tax rate is as follows: Year Ended December 31, 2022 2021 2020 (in millions) CenterPoint Energy - Continuing Operations (1) (2) (3) Income before income taxes $ 1,417 $ 778 $ 563 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 298 163 118 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 46 63 40 State valuation allowance, net of federal income tax — (15) 1 State law change, net of federal income tax — (23) — Excess deferred income tax amortization (51) (75) (76) Goodwill impairment 84 — 39 Net operating loss carryback — — (37) Other, net (17) (3) (5) Total 62 (53) (38) Total income tax expense $ 360 $ 110 $ 80 Effective tax rate 25 % 14 % 14 % CenterPoint Energy - Discontinued Operations (4)(5) Income (loss) before income taxes $ — $ 1,019 $ (1,589) Federal statutory income tax rate — % 21 % 21 % Expected federal income tax expense (benefit) — 214 (334) Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax — 14 (60) State law change, net of federal income tax — (27) — Goodwill impairment — — 25 Tax impact of sale of Energy Services and Infrastructure Services Disposal Groups — — 30 Other, net — — 6 Total — (13) 1 Total income tax expense (benefit) $ — $ 201 $ (333) Effective tax rate — % 20 % 21 % Year Ended December 31, 2022 2021 2020 (in millions) Houston Electric (6) (7) (8) Income before income taxes $ 635 $ 457 $ 387 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 133 96 81 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 13 18 15 Excess deferred income tax amortization (18) (41) (42) Other, net (3) 3 (1) Total (8) (20) (28) Total income tax expense $ 125 $ 76 $ 53 Effective tax rate 20 % 17 % 14 % CERC - Continuing Operations (9) (10) (11) Income before income taxes $ 961 $ 466 $ 382 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 202 98 80 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 35 31 59 State law change, net of federal income tax — (9) — State valuation allowance, net of federal income tax — (15) 1 Excess deferred income tax amortization (28) (30) (29) Goodwill Impairment 30 — — Other, net (3) 1 6 Total 34 (22) 37 Total income tax expense (benefit) $ 236 $ 76 $ 117 Effective tax rate 25 % 16 % 31 % CERC - Discontinued Operations (12) Income (loss) before income taxes $ — $ — $ (68) Federal statutory income tax rate — % — % 21 % Expected federal income tax expense (benefit) — — (14) Increase in tax expense resulting from: State income tax expense, net of federal income tax — — (2) Goodwill impairment — — 10 Other, net — — 4 Total — — 12 Total income tax expense (benefit) $ — $ — $ (2) Effective tax rate — % — % 3 % (1) Recognized a $51 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, and a $84 million expense for the goodwill impairment on the Arkansas and Oklahoma Natural Gas business sale. (2) Recognized a $75 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $23 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, and a $15 million benefit for the impact of a change in the NOL carryforward period in Louisiana from 20 years to an indefinite period allowing for the release of the valuation allowance on certain Louisiana NOLs. (3) Recognized a $76 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $39 million deferred tax expense for the non-deductible portion of the goodwill impairment on SIGECO, and a $37 million benefit for the NOL carryback claim allowed by the CARES Act. (4) Recognized a $27 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions. (5) Recognized a $25 million deferred tax expense for the non-deductible portion of the goodwill impairment on both the Energy Services and Infrastructure Services Disposal Groups. Also, recognized a $30 million net tax expense on both the sale of the Energy Services and Infrastructure Services Disposal Groups. (6) Recognized a $18 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (7) Recognized a $41 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (8) Recognized a $42 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (9) Recognized a $28 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, and a $30 million expense for the goodwill impairment on the Arkansas and Oklahoma Natural Gas business sale. (10) Recognized a $9 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, a $30 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, and a $15 million benefit for the impact of a change in the NOL carryforward period in Louisiana from 20 years to an indefinite period allowing for the release of the valuation allowance on certain Louisiana NOLs. (11) Recognized a $29 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulatory in certain jurisdictions. (12) Recognized a $10 million deferred tax expense for the non-deductible portion of the goodwill impairment on the Energy Services Disposal Group. |
Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows: December 31, 2022 2021 (in millions) CenterPoint Energy Deferred tax assets: Benefits and compensation $ 121 $ 120 Regulatory liabilities 378 396 Loss and credit carryforwards 84 76 Asset retirement obligations 95 130 Indexed debt securities derivative — 36 Investment in unconsolidated affiliates — 1 Other 49 50 Valuation allowance (10) (11) Total deferred tax assets 717 798 Deferred tax liabilities: Property, plant and equipment 3,228 2,912 Regulatory assets 601 741 Investment in ZENS and equity securities related to ZENS 722 693 Investment in equity securities — 195 Other 152 161 Total deferred tax liabilities 4,703 4,702 Net deferred tax liabilities $ 3,986 $ 3,904 December 31, 2022 2021 (in millions) Houston Electric Deferred tax assets: Regulatory liabilities $ 184 $ 175 Benefits and compensation 10 13 Asset retirement obligations 6 9 Other 13 10 Total deferred tax assets 213 207 Deferred tax liabilities: Property, plant and equipment 1,330 1,215 Regulatory assets 112 114 Total deferred tax liabilities 1,442 1,329 Net deferred tax liabilities $ 1,229 $ 1,122 CERC Deferred tax assets: Benefits and compensation $ 9 $ 17 Regulatory liabilities 151 181 Loss and credit carryforwards 466 585 Asset retirement obligations 86 118 Other 25 30 Total deferred tax assets 737 931 Deferred tax liabilities: Property, plant and equipment 1,427 1,264 Regulatory assets 381 536 Other 191 159 Total deferred tax liabilities 1,999 1,959 Net deferred tax liabilities $ 1,262 $ 1,028 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of CenterPoint Energy’s beginning and ending balance of unrecognized tax benefits, excluding interest and penalties, for 2022 and 2021 are as follows: Year Ended December 31, 2022 2021 (in millions) Balance, beginning of year $ 3 $ 7 Increases related to tax positions of prior years 26 — Decreases related to tax positions of prior years (3) (4) Balance, end of year $ 26 $ 3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | As of December 31, 2022, other than discussed below, undiscounted minimum purchase obligations are approximately: CenterPoint Energy CERC Natural Gas and Coal Supply Other (1) Natural Gas Supply (in millions) 2023 $ 1,014 $ 151 $ 894 2024 887 208 827 2025 648 681 599 2026 488 45 445 2027 421 86 377 2028 and beyond 2,070 453 1,954 (1) CenterPoint Energy’s undiscounted minimum payment obligations related to PPAs with commitments ranging from 15 to 25 years and its purchase commitment under its BTA in Posey County, Indiana at the original contracted amount, prior to any renegotiation, and its BTA in Pike County, Indiana, are included above. The remaining undiscounted payment obligations relate primarily to technology hardware and software agreements. |
Schedule of Environmental Loss Contingencies by Site | Total costs that may be incurred in connection with addressing these sites cannot be determined at this time. The estimated accrued costs are limited to CenterPoint Energy’s and CERC’s share of the remediation efforts and are therefore net of exposures of other PRPs. The estimated range of possible remediation costs for the sites for which CenterPoint Energy and CERC believe they may have responsibility was based on remediation continuing for the minimum time frame given in the table below. December 31, 2022 CenterPoint Energy CERC (in millions, except years) Amount accrued for remediation $ 16 $ 14 Minimum estimated remediation costs 12 11 Maximum estimated remediation costs 51 44 Minimum years of remediation 5 5 Maximum years of remediation 50 50 |
Earnings Per Share (CenterPoi_2
Earnings Per Share (CenterPoint Energy) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share. Basic earnings per common share is determined by dividing Income available to common shareholders - basic by the Weighted average common shares outstanding - basic for the applicable period. Diluted earnings per common share is determined by the inclusion of potentially dilutive common stock equivalent shares that may occur if securities to issue Common Stock were exercised or converted into Common Stock. For the Year Ended December 31, 2022 2021 2020 (in millions, except per share and share amounts) Numerator: Income from continuing operations $ 1,057 $ 668 $ 483 Less: Preferred stock dividend requirement (Note 12) 49 95 144 Less: Amortization of beneficial conversion feature (Note 12) — — 32 Income available to common shareholders from continuing operations - basic and diluted 1,008 573 307 Income (loss) available to common shareholders from discontinued operations - basic and diluted — 818 (1,256) Income (loss) available to common shareholders - basic and diluted $ 1,008 $ 1,391 $ (949) Denominator: Weighted average common shares outstanding - basic 629,415,000 592,933,000 531,031,000 Plus: Incremental shares from assumed conversions: Restricted stock 2,931,000 5,181,000 — Series C Preferred Stock (3) — 11,824,000 — Weighted average common shares outstanding - diluted 632,346,000 609,938,000 531,031,000 Anti-dilutive Incremental Shares Excluded from Denominator for Diluted Earnings (Loss) Computation: Restricted stock — — 3,690,000 Series B Preferred Stock (2) — 23,906,000 35,922,000 Series C Preferred Stock (3) — — 23,807,000 For the Year Ended December 31, 2022 2021 2020 (in millions, except per share and share amounts) Earnings (loss) per common share: Basic earnings per common share - continuing operations $ 1.60 $ 0.97 $ 0.58 Basic earnings (loss) per common share - discontinued operations — 1.38 (2.37) Basic Earnings (Loss) Per Common Share $ 1.60 $ 2.35 $ (1.79) Diluted earnings per common share - continuing operations $ 1.59 $ 0.94 $ 0.58 Diluted earnings (loss) per common share - discontinued operations — 1.34 (2.37) Diluted Earnings (Loss) Per Common Share $ 1.59 $ 2.28 $ (1.79) (1) There were no undistributed earnings to be allocated to participating securities for the years ended December 31, 2021 and 2020. (2) As of December 31, 2021, all of the outstanding Series B Preferred Stock has been converted into Common Stock. For further information, see Note 12. (3) As of December 31, 2021, all of the outstanding Series C Preferred Stock has been converted into Common Stock. For further information, see Note 12. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Financial Data for Business Segments | Financial data for reportable segments is as follows, including Discontinued Operations for reconciliation purposes: CenterPoint Energy Revenues Depreciation Interest Income (1) Interest Expense Income Tax Expense Net Income (Loss) (in millions) For the year ended December 31, 2022: Electric $ 4,108 $ 793 $ 4 $ (235) $ 147 $ 603 Natural Gas 4,946 466 2 (137) 243 492 Corporate and Other 267 29 59 (214) (30) (38) Eliminations — — (62) 62 — — Continuing Operations $ 9,321 $ 1,288 $ 3 $ (524) $ 360 1,057 Discontinued Operations, net — Consolidated $ 1,057 For the year ended December 31, 2021: Electric $ 3,763 $ 775 $ — $ (226) $ 95 $ 475 Natural Gas 4,336 527 1 (141) 80 403 Corporate and Other 253 14 118 (278) (65) (210) Eliminations — — (116) 116 — — Continuing Operations $ 8,352 $ 1,316 $ 3 $ (529) $ 110 668 Discontinued Operations, net 818 Consolidated $ 1,486 For the year ended December 31, 2020: Electric $ 3,470 $ 684 $ 3 $ (220) $ 72 $ 230 Natural Gas 3,631 491 8 (153) 125 278 Corporate and Other 317 14 104 (267) (117) (25) Eliminations — — (111) 111 — — Continuing Operations $ 7,418 $ 1,189 $ 4 $ (529) $ 80 483 Discontinued Operations, net (1,256) Consolidated $ (773) (1) Interest income from Securitization Bonds of less than $1 million, $1 million and $1 million for the years ended December 31, 2022, 2021 and 2020, respectively, is included in Other income, net on CenterPoint Energy’s and Houston Electric’s respective Statements of Consolidated Income. Total Assets Expenditures for Long-lived Assets December 31, December 31, 2022 2021 2022 2021 2020 (in millions) Electric $ 19,024 $ 16,548 $ 2,611 $ 2,008 $ 1,281 Natural Gas 18,043 16,270 1,697 1,178 1,139 Corporate and Other, net of eliminations (1) 1,479 2,523 107 42 95 Continuing Operations 38,546 35,341 4,415 3,228 2,515 Assets Held for Sale/Discontinued Operations — 2,338 3 171 21 Consolidated $ 38,546 $ 37,679 $ 4,418 $ 3,399 $ 2,536 |
Schedule of Revenue by Major Customers by Reporting Segments | Houston Electric’s revenues from major external customers are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Affiliates of NRG $ 1,046 $ 905 $ 749 Affiliates of Vistra Energy Corp. 489 410 404 |
Revenues by Products and Services | Revenues by Products and Services Year Ended December 31, 2022 2021 2020 Revenues by Products and Services: CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (1) CenterPoint Energy Houston Electric CERC (1) (in millions) Electric delivery $ 3,438 $ 3,412 $ — $ 3,158 $ 3,134 $ — $ 2,941 $ 2,911 $ — Retail electric sales 630 — — 559 — — 515 — — Wholesale electric sales 40 — — 46 — — 14 — — Retail gas sales 4,759 — 4,613 4,157 — 4,021 3,462 — 3,362 Gas transportation and processing 12 — 12 12 — 12 15 — 15 Energy products and services 442 — 175 420 — 167 471 — 154 Total $ 9,321 $ 3,412 $ 4,800 $ 8,352 $ 3,134 $ 4,200 $ 7,418 $ 2,911 $ 3,531 (1) Includes revenues of Indiana Gas and VEDO to reflect the recast from the Restructuring. |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The tables below provide supplemental disclosure of cash flow information: 2022 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash Payments/Receipts: Interest, net of capitalized interest $ 480 $ 223 $ 104 $ 489 $ 208 $ 130 $ 471 $ 201 $ 143 Income tax payments (refunds), net 421 142 37 (46) 20 (7) 143 65 (5) Non-cash transactions: Accounts payable related to capital expenditures 335 168 139 370 261 128 153 102 66 Fair Value of Energy Transfer Common Units received for Enable Merger — — — 1,672 — — — — — Fair Value of Energy Transfer Series G Preferred Units received for Enable Merger — — — 385 — — — — — ROU assets obtained in exchange for lease liabilities 7 6 — 2 — — 15 1 5 Beneficial conversion feature — — — — — — 32 — — Amortization of beneficial conversion feature — — — — — — (32) — — The table below provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the amount reported in the Statements of Consolidated Cash Flows: December 31, 2022 December 31, 2021 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash and cash equivalents (1) $ 74 $ 75 $ — $ 230 $ 214 $ 15 Restricted cash included in Prepaid expenses and other current assets 17 13 — 24 19 — Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows $ 91 $ 88 $ — $ 254 $ 233 $ 15 |
Related Party Transactions (H_2
Related Party Transactions (Houston Electric and CERC) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Money Pool Investment and Borrowing | Houston Electric and CERC participate in a money pool through which they can borrow or invest on a short-term basis. Funding needs are aggregated and external borrowing or investing is based on the net cash position. The net funding requirements of the money pool are expected to be met with borrowings under CenterPoint Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper. The table below summarizes money pool activity: December 31, 2022 December 31, 2021 Houston Electric CERC Houston Electric CERC (in millions, except interest rates) Money pool investments (borrowings) (1) $ (642) $ — $ (512) $ (224) Weighted average interest rate 4.75 % 4.75 % 0.34 % 0.34 % (1) Included in Accounts and notes receivable (payable)–affiliated companies in Houston Electric’s and CERC’s Consolidated Balance Sheets. |
Schedule of Related Party Transactions | Houston Electric and CERC affiliate-related net interest income (expense) were as follows: Year Ended December 31, 2022 2021 2020 Houston Electric CERC Houston Electric CERC (1) Houston Electric CERC (1) (in millions) Interest income (expense), net (2) $ — $ (18) $ — $ (38) $ — $ (35) (1) Includes affiliate-related net interest expense of Indiana Gas and VEDO to reflect the Restructuring. (2) Interest income is included in Other, net and interest expense is included in Interest and other finance charges on Houston Electric’s and CERC’s respective Statements of Consolidated Income. Amounts charged for these services are included primarily in Operation and maintenance expenses: Year Ended December 31, 2022 2021 2020 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Corporate service charges $ 167 $ 237 $ 189 $ 257 $ 197 $ 232 Net affiliate service charges (billings) 15 (15) (7) 7 (16) 16 The table below presents transactions among Houston Electric, CERC and their parent, Utility Holding. Year Ended December 31, 2022 2021 2020 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Cash dividends paid to parent $ 316 $ 124 $ — $ — $ 551 $ 128 Cash dividend paid to parent related to the sale of the Arkansas and Oklahoma Natural Gas businesses — 720 — — — — Cash contribution from parent 1,143 289 130 140 62 337 Net assets acquired in the Restructuring (1) — 2,345 — — — — Capital distribution to parent associated with the sale of CES — — — — — 286 Non-cash capital contribution from parent in payment for property, plant and equipment below 38 54 — — — — Cash paid to parent for property, plant and equipment below 65 61 — — — — Property, plant and equipment from parent (2) 103 115 — — 36 23 (1) The Restructuring was a common control transaction that required the recasting of financial information to the earliest period presented. Therefore, the net asset transfer is not reflected during the current period on CERC’s Condensed Statements of Consolidated Changes in Equity. (2) Property, plant and equipment purchased from CenterPoint Energy at its net carrying value on the date of purchase. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The components of lease cost, included in Operation and maintenance expense on the Registrants’ respective Statements of Consolidated Income, are as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease cost $ 6 $ 1 $ 2 $ 8 $ 1 $ 4 Short-term lease cost 167 166 1 119 118 — Total lease cost (1) $ 173 $ 167 $ 3 $ 127 $ 119 $ 4 (1) CenterPoint Energy and Houston Electric defer finance lease costs for TEEEF to Regulatory assets for recovery rather than to Depreciation and Amortization in the Statements of Consolidated Income. |
Operating Lease, Lease Income | The components of lease income were as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease income $ 5 $ 1 $ 3 $ 6 $ 1 $ 3 Variable lease income 2 — — 1 — — Total lease income $ 7 $ 1 $ 3 $ 7 $ 1 $ 3 |
Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to leases was as follows: December 31, 2022 December 31, 2021 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions, except lease term and discount rate) Assets: Operating ROU assets (1) $ 19 $ 6 $ 5 $ 22 $ 1 $ 12 Finance ROU assets (2) 621 621 — 179 179 — Total leased assets $ 640 $ 627 $ 5 $ 201 $ 180 $ 12 Liabilities: Current operating lease liability (3) $ 5 $ 1 $ 2 $ 6 $ 1 $ 2 Non-current operating lease liability (4) 14 5 4 17 — 11 Total leased liabilities (5) $ 19 $ 6 $ 6 $ 23 $ 1 $ 13 Weighted-average remaining lease term (in years) - operating leases 4.3 4.8 3.9 6.2 4.1 6.5 Weighted-average discount rate - operating leases 3.80 % 4.01 % 3.58 % 3.10 % 2.86 % 3.20 % Weighted-average remaining lease term (in years) - finance leases 6.5 6.5 — 7.5 7.5 — Weighted-average discount rate - finance leases 3.60 % 3.60 % — 2.21 % 2.21 % — (1) Reported within Other assets (2) Reported within Property, Plant and Equipment (3) Reported within Current other liabilities (4) Reported within Other liabilities (5) Finance lease liabilities were not material as of December 31, 2022 or 2021 and are reported within Other long-term debt in the Registrants’ respective Consolidated Balance Sheets when applicable. |
Lessee, Operating Lease, Liability, Maturity | As of December 31, 2022, maturities of operating lease liabilities were as follows: CenterPoint Houston CERC (in millions) 2023 $ 5 $ 1 $ 2 2024 5 2 1 2025 4 2 1 2026 4 1 2 2027 2 1 — 2028 and beyond 1 — — Total lease payments 21 7 6 Less: Interest 2 1 — Present value of lease liabilities $ 19 $ 6 $ 6 |
Lessor, Operating Lease, Payments to be Received, Maturity | As of December 31, 2022, maturities of undiscounted operating lease payments to be received are as follows: CenterPoint Houston CERC (in millions) 2023 $ 7 $ 1 $ 4 2024 7 1 4 2025 7 1 4 2026 7 — 4 2027 7 — 4 2028 and beyond 159 — 156 Total lease payments to be received $ 194 $ 3 $ 176 |
Other Information Related To Leases | Other information related to leases is as follows: Year Ended December 31, 2022 CenterPoint Houston CERC (in millions) Operating cash flows from operating leases included in the measurement of lease liabilities $ 6 $ 1 $ 2 Financing cash flows from finance leases included in the measurement of lease liabilities 485 485 — |
Background (Details)
Background (Details) | Dec. 31, 2022 registrant |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of registrants | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | |||
Other deferred interest | $ 33 | $ 10 | $ 3 |
LIFO Inventory Amount | 101 | 101 | |
Cost of replacing inventories carried at LIFO cost less than carrying value | 101 | ||
Interest Expense | |||
Significant Accounting Policies [Line Items] | |||
Interest and AFUDC debt | 44 | 34 | 27 |
Interest Expense | Indiana | |||
Significant Accounting Policies [Line Items] | |||
Interest and AFUDC debt | 18 | 16 | 13 |
Other Income (Expense) | |||
Significant Accounting Policies [Line Items] | |||
AFUDC equity | 37 | 28 | 25 |
Houston Electric | |||
Significant Accounting Policies [Line Items] | |||
Other deferred interest | 12 | 1 | 0 |
Houston Electric | Interest Expense | |||
Significant Accounting Policies [Line Items] | |||
Interest and AFUDC debt | 14 | 13 | 8 |
Houston Electric | Other Income (Expense) | |||
Significant Accounting Policies [Line Items] | |||
AFUDC equity | 24 | 20 | 14 |
CERC Corp | |||
Significant Accounting Policies [Line Items] | |||
Other deferred interest | 21 | 9 | 3 |
LIFO Inventory Amount | 82 | 79 | |
CERC Corp | Interest Expense | |||
Significant Accounting Policies [Line Items] | |||
Interest and AFUDC debt | 22 | 16 | 13 |
CERC Corp | Other Income (Expense) | |||
Significant Accounting Policies [Line Items] | |||
AFUDC equity | 5 | 5 | 3 |
CERC Corp | Other Income (Expense) | Indiana | |||
Significant Accounting Policies [Line Items] | |||
Interest and AFUDC debt | $ 15 | $ 13 | $ 10 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) MW | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted-average remaining lease term (in years) - finance leases | 6 years 6 months | 7 years 6 months | |
Finance lease right of use assets, gross | $ 662 | $ 179 | |
Property plant and equipment and finance lease assets, gross | 37,728 | 33,673 | |
Finance lease right of use assets, accumulated amortization | 41 | 0 | |
Property plant and equipment and finance lease assets, accumulated depreciation and amortization | 10,585 | 10,189 | |
Property, Plant and Equipment, net | 27,143 | 23,484 | |
Finance ROU assets | 621 | 179 | |
Property plant and equipment and finance lease assets, net | 27,143 | 23,484 | |
Depreciation and Amortization [Abstract] | |||
Depreciation | 1,013 | 1,024 | $ 961 |
Amortization of securitized regulatory assets | 191 | 213 | 155 |
Other amortization | 84 | 79 | 73 |
Total | 1,288 | 1,316 | 1,189 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | 659 | 664 | |
Accretion expense | 20 | 19 | |
Revisions in estimate | (69) | (24) | |
Ending balance | $ 610 | $ 659 | 664 |
Houston Electric | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted-average remaining lease term (in years) - finance leases | 6 years 6 months | 7 years 6 months | |
Finance lease right of use assets, gross | $ 662 | $ 179 | |
Property plant and equipment and finance lease assets, gross | 17,753 | 15,273 | |
Finance lease right of use assets, accumulated amortization | 41 | 0 | |
Property plant and equipment and finance lease assets, accumulated depreciation and amortization | 4,292 | 4,070 | |
Property, Plant and Equipment, net | 13,461 | 11,203 | |
Finance ROU assets | 621 | 179 | |
Property plant and equipment and finance lease assets, net | 13,461 | 11,203 | |
Depreciation and Amortization [Abstract] | |||
Depreciation | 434 | 391 | 368 |
Amortization of securitized regulatory assets | 191 | 213 | 155 |
Other amortization | 45 | 38 | 37 |
Total | 670 | 642 | 560 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | 42 | 43 | |
Accretion expense | 1 | 1 | |
Revisions in estimate | (7) | (2) | |
Ending balance | 36 | 42 | 43 |
CERC Corp | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property plant and equipment and finance lease assets, gross | 14,379 | 12,934 | |
Property plant and equipment and finance lease assets, accumulated depreciation and amortization | 3,973 | 3,826 | |
Property, Plant and Equipment, net | 10,406 | 9,108 | |
Finance ROU assets | 0 | 0 | |
Property plant and equipment and finance lease assets, net | 10,406 | 9,108 | |
Depreciation and Amortization [Abstract] | |||
Depreciation | 420 | 466 | 426 |
Amortization of securitized regulatory assets | 0 | 0 | 0 |
Other amortization | 28 | 17 | 15 |
Total | 448 | 483 | 441 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | 479 | 514 | |
Accretion expense | 15 | 13 | |
Revisions in estimate | (74) | (48) | |
Ending balance | $ 420 | 479 | $ 514 |
Electric transmission and distribution | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 36 years | ||
Property, Plant and Equipment, Gross | $ 19,154 | 17,156 | |
Accumulated Depreciation & Amortization | 5,317 | 4,658 | |
Property, Plant and Equipment, net | $ 13,837 | 12,498 | |
Electric transmission and distribution | Houston Electric | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 38 years | ||
Property, Plant and Equipment, Gross | $ 14,791 | 13,321 | |
Accumulated Depreciation & Amortization | 3,556 | 3,502 | |
Property, Plant and Equipment, net | $ 11,235 | 9,819 | |
Electric generation | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 26 years | ||
Property, Plant and Equipment, Gross | $ 2,120 | 1,807 | |
Accumulated Depreciation & Amortization | 813 | 1,179 | |
Property, Plant and Equipment, net | $ 1,307 | 628 | |
Natural gas distribution | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 32 years | ||
Property, Plant and Equipment, Gross | $ 15,097 | 13,578 | |
Accumulated Depreciation & Amortization | 4,135 | 3,981 | |
Property, Plant and Equipment, net | $ 10,962 | 9,597 | |
Natural gas distribution | CERC Corp | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 32 years | ||
Property, Plant and Equipment, Gross | $ 14,316 | 12,885 | |
Accumulated Depreciation & Amortization | 3,946 | 3,800 | |
Property, Plant and Equipment, net | $ 10,370 | 9,085 | |
Other property | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 23 years | ||
Property, Plant and Equipment, Gross | $ 695 | 953 | |
Accumulated Depreciation & Amortization | 279 | 371 | |
Property, Plant and Equipment, net | $ 416 | 582 | |
Other property | Houston Electric | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 20 years | ||
Property, Plant and Equipment, Gross | $ 2,300 | 1,773 | |
Accumulated Depreciation & Amortization | 695 | 568 | |
Property, Plant and Equipment, net | $ 1,605 | 1,205 | |
Other property | CERC Corp | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 17 years | ||
Property, Plant and Equipment, Gross | $ 63 | 49 | |
Accumulated Depreciation & Amortization | 27 | 26 | |
Property, Plant and Equipment, net | $ 36 | $ 23 | |
SIGECO | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Number of megawatts (in MW) | MW | 300 | ||
SIGECO's share of cost of Warrick Unit 4 | $ 198 | ||
SIGECO's share of accumulated depreciation of Warrick Unit 4 | $ 162 |
Held for Sale and Divestiture_3
Held for Sale and Divestitures (CenterPoint Energy and CERC) - Divestitures Narrative (Details) mi in Thousands, $ in Millions | 12 Months Ended | ||||
Apr. 29, 2021 USD ($) mi | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 31, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestitures (Note 4) | $ 2,075 | $ 22 | $ 1,215 | ||
Miles of pipeline | mi | 17 | ||||
Gain on sale | 303 | 8 | 0 | ||
Reimbursement of transition services | 40 | ||||
Transition services receivables | 1 | ||||
CERC Corp | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestitures (Note 4) | 2,075 | 22 | 365 | ||
Gain on sale | 557 | 11 | $ 0 | ||
Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestitures (Note 4) | $ 2,150 | ||||
Recovery of costs | $ 425 | ||||
Gain on sale | 303 | ||||
Disposal group, not discontinued operations, transaction costs | 59 | ||||
Receivables, net | 46 | $ 15 | |||
Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | CERC Corp | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale | 557 | ||||
Disposal group, not discontinued operations, transaction costs | $ 59 | ||||
Receivables, net | 46 | $ 15 | |||
MES | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale | 8 | ||||
MES | CERC Corp | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on sale | $ 11 |
Held for Sale and Divestiture_4
Held for Sale and Divestitures (CenterPoint Energy and CERC) - Schedule of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | May 31, 2022 | Dec. 31, 2021 |
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Total current assets held for sale | $ 0 | $ 2,338 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Total current liabilities held for sale | 0 | 562 | |
Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Receivables, net | $ 15 | 46 | |
Accrued unbilled revenues | 48 | ||
Natural gas inventory | 46 | ||
Materials and supplies | 9 | ||
Property, plant and equipment, net | 1,314 | ||
Goodwill | 398 | ||
Regulatory assets | 471 | ||
Other | 6 | ||
Total current assets held for sale | 2,338 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Short term borrowings | 36 | ||
Accounts payable | 40 | ||
Taxes accrued | 7 | ||
Customer deposits | 12 | ||
Regulatory liabilities | 365 | ||
Other | 102 | ||
Total current liabilities held for sale | 562 | ||
CERC Corp | |||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Total current assets held for sale | 0 | 2,084 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Total current liabilities held for sale | $ 0 | 562 | |
CERC Corp | Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | |||
Receivables, net | $ 15 | 46 | |
Accrued unbilled revenues | 48 | ||
Natural gas inventory | 46 | ||
Materials and supplies | 9 | ||
Property, plant and equipment, net | 1,314 | ||
Goodwill | 144 | ||
Regulatory assets | 471 | ||
Other | 6 | ||
Total current assets held for sale | 2,084 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | |||
Short term borrowings | 36 | ||
Accounts payable | 40 | ||
Taxes accrued | 7 | ||
Customer deposits | 12 | ||
Regulatory liabilities | 365 | ||
Other | 102 | ||
Total current liabilities held for sale | $ 562 |
Held for Sale and Divestiture_5
Held for Sale and Divestitures (CenterPoint Energy and CERC) - Summary of Income (Loss) From Continuing Operations, Before Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income before income taxes | $ 1,417 | $ 778 | $ 563 |
Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income before income taxes | 9 | 78 | 73 |
CERC Corp | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income before income taxes | 961 | 466 | 382 |
CERC Corp | Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income before income taxes | $ 9 | $ 78 | $ 73 |
Held for Sale and Divestiture_6
Held for Sale and Divestitures (CenterPoint Energy and CERC) - Discontinued Operations Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 01, 2020 | Apr. 09, 2020 | Feb. 03, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 02, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Common and preferred units acquired (as a percent) | 100% | |||||||||||
Proceeds from divestitures (Note 4) | $ 2,075,000,000 | $ 22,000,000 | $ 1,215,000,000 | |||||||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | 0 | 185,000,000 | |||||||
Enable Midstream Partners | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Reduction in quarterly distribution (as a percent) | 50% | |||||||||||
Enable Midstream Partners | Level 3 | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Impairment of CenterPoint Energy’s equity method investment in Enable | 1,541,000,000 | |||||||||||
Equity method investment, fair value | $ 848,000,000 | |||||||||||
CERC Corp | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from divestitures (Note 4) | $ 2,075,000,000 | $ 22,000,000 | 365,000,000 | |||||||||
Infrastructure Services Disposal Group | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Sales price of outstanding equity interests | $ 850,000,000 | |||||||||||
Proceeds from divestitures (Note 4) | $ 850,000,000 | |||||||||||
Receivable from sale of disposal group | $ 4,000,000 | |||||||||||
Net deferred tax liabilities on sale recognized as deferred income tax benefit by CenterPoint Energy | $ 129,000,000 | |||||||||||
Current tax expense (benefit) of cash taxes payable upon sale | 158,000,000 | |||||||||||
Goodwill impairment | 82,000,000 | |||||||||||
Cost to sell | 14,000,000 | |||||||||||
Pretax gain (loss) | (6,000,000) | |||||||||||
Maximum contractual exposure under securities purchase agreement | 21,000,000 | |||||||||||
Infrastructure Services Disposal Group | Level 2 | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Fair value of disposal group | 864,000,000 | |||||||||||
Energy Services Disposal Group | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Sales price of outstanding equity interests | $ 400,000,000 | |||||||||||
Proceeds from divestitures (Note 4) | $ 286,000,000 | |||||||||||
Receivable from sale of disposal group | $ 79,000,000 | |||||||||||
Net deferred tax liabilities on sale recognized as deferred income tax benefit by CenterPoint Energy | 4,000,000 | |||||||||||
Goodwill impairment | 62,000,000 | |||||||||||
Cost to sell | 6,000,000 | |||||||||||
Current tax expense of cash taxes payable upon sale | 4,000,000 | |||||||||||
Loss from reclassification to held for sale | 31,000,000 | |||||||||||
Energy Services Disposal Group | Level 2 | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Fair value of disposal group | $ 402,000,000 | |||||||||||
Energy Services Disposal Group | CERC Corp | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Net deferred tax liabilities on sale recognized as deferred income tax benefit by CenterPoint Energy | $ 4,000,000 | |||||||||||
Goodwill impairment | 62,000,000 | |||||||||||
Pretax gain (loss) | 3,000,000 | |||||||||||
Current tax expense of cash taxes payable upon sale | $ 4,000,000 |
Held for Sale and Divestiture_7
Held for Sale and Divestitures (CenterPoint Energy and CERC) - Summary of Discontinued Operations (Details) | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Feb. 18, 2022 | Jun. 01, 2020 USD ($) | Apr. 09, 2020 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 02, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) $ / shares | Aug. 31, 2021 state | Mar. 31, 2020 USD ($) | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
Income tax expense (benefit) | $ 0 | $ 201,000,000 | $ (333,000,000) | ||||||||
CenterPoint Energy’s equity in earnings (losses), net before income taxes | 0 | 339,000,000 | (1,428,000,000) | ||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Gain on Enable Merger | 303,000,000 | 681,000,000 | 0 | ||||||||
Distributions from unconsolidated affiliates | 0 | 155,000,000 | 113,000,000 | ||||||||
Proceeds from Divestiture of Businesses | 2,075,000,000 | 22,000,000 | 1,215,000,000 | ||||||||
Distributions from unconsolidated affiliates in excess of cumulative earnings | 0 | 0 | 80,000,000 | ||||||||
Current assets | 0 | 2,338,000,000 | |||||||||
Current liabilities | 0 | 562,000,000 | |||||||||
Revenues | 9,321,000,000 | 8,352,000,000 | 7,418,000,000 | ||||||||
Goodwill impairment | $ 0 | $ 0 | 0 | 0 | 185,000,000 | ||||||
Net income attributable to Enable Common Units | 1,008,000,000 | 1,391,000,000 | (949,000,000) | ||||||||
CERC Corp | |||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
Income tax expense (benefit) | 0 | 0 | (2,000,000) | ||||||||
Net income (loss) from Discontinued Operations | 0 | 0 | (66,000,000) | ||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Proceeds from Divestiture of Businesses | 2,075,000,000 | 22,000,000 | 365,000,000 | ||||||||
Natural gas expenses, including transportation and storage costs | 115,000,000 | 0 | 23,000,000 | ||||||||
Current assets | 0 | 2,084,000,000 | |||||||||
Current liabilities | 0 | 562,000,000 | |||||||||
Revenues | $ 4,800,000,000 | 4,200,000,000 | 3,531,000,000 | ||||||||
Infrastructure Services Disposal Group | |||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Proceeds from Divestiture of Businesses | $ 850,000,000 | ||||||||||
Goodwill impairment | 82,000,000 | ||||||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||||||
Pipeline construction and repair services capitalized | 34,000,000 | ||||||||||
Pipeline construction and repair service charges in operations and maintenance expense | 1,000,000 | ||||||||||
Infrastructure Services Disposal Group | Level 2 | |||||||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||||||
Fair value of disposal group | $ 864,000,000 | ||||||||||
Infrastructure Services Disposal Group | CERC Corp | |||||||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||||||
Pipeline construction and repair services capitalized | 0 | ||||||||||
Pipeline construction and repair service charges in operations and maintenance expense | 1,000,000 | ||||||||||
Energy Services Disposal Group | |||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Proceeds from Divestiture of Businesses | $ 286,000,000 | ||||||||||
Goodwill impairment | 62,000,000 | ||||||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||||||
Transportation revenue | 34,000,000 | ||||||||||
Natural gas expense | 48,000,000 | ||||||||||
Energy Services Disposal Group | Level 2 | |||||||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||||||
Fair value of disposal group | $ 402,000,000 | ||||||||||
Energy Services Disposal Group | CERC Corp | |||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Goodwill impairment | 62,000,000 | ||||||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||||||
Transportation revenue | 34,000,000 | ||||||||||
Natural gas expense | 47,000,000 | ||||||||||
MES | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Number of states | state | 48 | ||||||||||
Discontinued Operations | |||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
Income (loss) from discontinued operations before income taxes | (1,391,000,000) | ||||||||||
Income tax expense (benefit) | (333,000,000) | ||||||||||
Net income (loss) from Discontinued Operations | (1,256,000,000) | ||||||||||
Revenues | 1,417,000,000 | ||||||||||
Non-utility cost of revenues | 1,158,000,000 | ||||||||||
Operation and maintenance | 218,000,000 | ||||||||||
Taxes other than income taxes | 4,000,000 | ||||||||||
Total | 1,380,000,000 | ||||||||||
Operating income | 37,000,000 | ||||||||||
CenterPoint Energy’s equity in earnings (losses), net before income taxes | (1,428,000,000) | ||||||||||
Loss on classification to held for sale, net | (198,000,000) | ||||||||||
Discontinued Operations | Enable Midstream Partners | |||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
Equity in earnings of unconsolidated affiliate, net | 1,019,000,000 | ||||||||||
Income (loss) from discontinued operations before income taxes | 1,019,000,000 | (1,428,000,000) | |||||||||
Income tax expense (benefit) | 201,000,000 | (354,000,000) | |||||||||
Net income (loss) from Discontinued Operations | 818,000,000 | (1,074,000,000) | |||||||||
Revenues | 0 | ||||||||||
Non-utility cost of revenues | 0 | ||||||||||
Operation and maintenance | 0 | ||||||||||
Taxes other than income taxes | 0 | ||||||||||
Total | 0 | ||||||||||
Operating income | 0 | ||||||||||
CenterPoint Energy’s equity in earnings (losses), net before income taxes | $ 1,019,000,000 | 339,000,000 | (1,428,000,000) | ||||||||
Loss on classification to held for sale, net | 0 | ||||||||||
Impairment charge on investment | 1,541,000,000 | ||||||||||
Impairment on equity method investment | 225,000,000 | ||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Gain on Enable Merger | 680,000,000 | 681,000,000 | 0 | ||||||||
Distributions from unconsolidated affiliates | 155,000,000 | 113,000,000 | |||||||||
Transaction costs related to the Enable Merger | (49,000,000) | ||||||||||
Proceeds from Divestiture of Businesses | 5,000,000 | ||||||||||
Write-down of natural gas inventory | 0 | ||||||||||
Capital expenditures | 0 | ||||||||||
Distributions from unconsolidated affiliates in excess of cumulative earnings | 80,000,000 | ||||||||||
Cash Distribution | 189,000,000 | $ 229,000,000 | |||||||||
Disposal Group, Including Discontinued Operations, Annual Distribution Rate | 10% | ||||||||||
Natural gas expenses, including transportation and storage costs | 85,000,000 | $ 86,000,000 | |||||||||
Current assets | 594,000,000 | ||||||||||
Non-current assets | 11,227,000,000 | ||||||||||
Current liabilities | 1,254,000,000 | ||||||||||
Non-current liabilities | 3,281,000,000 | ||||||||||
Non-controlling interest | 26,000,000 | ||||||||||
Preferred equity | 362,000,000 | ||||||||||
Accumulated other comprehensive loss | (1,000,000) | ||||||||||
Enable partners’ equity | 6,899,000,000 | ||||||||||
CenterPoint Energy’s ownership interest in Enable partners’ equity | 3,701,000,000 | ||||||||||
CenterPoint Energy’s basis difference | (2,732,000,000) | ||||||||||
CenterPoint energy’s equity method investment in enable | 969,000,000 | ||||||||||
Revenues | 3,466,000,000 | 2,463,000,000 | |||||||||
Cost of sales, excluding depreciation and amortization | 1,959,000,000 | 965,000,000 | |||||||||
Depreciation and amortization | 382,000,000 | 420,000,000 | |||||||||
Goodwill impairment | 0 | 28,000,000 | |||||||||
Operating income | 634,000,000 | 465,000,000 | |||||||||
Net income attributable to Enable Common Units | 461,000,000 | 52,000,000 | |||||||||
CenterPoint Energy’s interest | 248,000,000 | 28,000,000 | |||||||||
Basis difference amortization | 92,000,000 | 87,000,000 | |||||||||
Loss on dilution, net of proportional basis difference recognition | (1,000,000) | (2,000,000) | |||||||||
Impairment of CenterPoint Energy’s equity method investment in Enable | $ 0 | (1,541,000,000) | |||||||||
Discontinued Operations | Enable Midstream Partners | London Interbank Offered Rate (LIBOR) | |||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Basis spread (as a percent) | 8.50% | ||||||||||
Discontinued Operations | Enable Midstream Partners | CERC Corp | |||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Natural gas expenses, including transportation and storage costs | $ 85,000,000 | $ 86,000,000 | |||||||||
Discontinued Operations | Enable Midstream Partners | Enable Common Units | |||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Distribution received (in dollars per unit) | $ / shares | $ 0.6610 | $ 0.8263 | |||||||||
Cash Distribution | $ 155,000,000 | $ 193,000,000 | |||||||||
Discontinued Operations | Enable Midstream Partners | Enable Series A Preferred Units | |||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Distribution received (in dollars per unit) | $ / shares | $ 2.2965 | $ 2.5000 | |||||||||
Cash Distribution | $ 34,000,000 | $ 36,000,000 | |||||||||
Discontinued Operations | Infrastructure Services Disposal Group | |||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
Income (loss) from discontinued operations before income taxes | 15,000,000 | ||||||||||
Income tax expense (benefit) | 24,000,000 | ||||||||||
Net income (loss) from Discontinued Operations | (111,000,000) | ||||||||||
Revenues | 250,000,000 | ||||||||||
Non-utility cost of revenues | 50,000,000 | ||||||||||
Operation and maintenance | 184,000,000 | ||||||||||
Taxes other than income taxes | 1,000,000 | ||||||||||
Total | 235,000,000 | ||||||||||
Operating income | 15,000,000 | ||||||||||
CenterPoint Energy’s equity in earnings (losses), net before income taxes | 0 | ||||||||||
Loss on classification to held for sale, net | (102,000,000) | ||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Distributions from unconsolidated affiliates | 0 | ||||||||||
Write-down of natural gas inventory | 0 | ||||||||||
Capital expenditures | 18,000,000 | ||||||||||
Distributions from unconsolidated affiliates in excess of cumulative earnings | 0 | ||||||||||
Discontinued Operations | Energy Services Disposal Group | |||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
Income (loss) from discontinued operations before income taxes | 22,000,000 | ||||||||||
Income tax expense (benefit) | (3,000,000) | ||||||||||
Net income (loss) from Discontinued Operations | (71,000,000) | ||||||||||
Revenues | 1,167,000,000 | ||||||||||
Non-utility cost of revenues | 1,108,000,000 | ||||||||||
Operation and maintenance | 34,000,000 | ||||||||||
Taxes other than income taxes | 3,000,000 | ||||||||||
Total | 1,145,000,000 | ||||||||||
Operating income | 22,000,000 | ||||||||||
CenterPoint Energy’s equity in earnings (losses), net before income taxes | 0 | ||||||||||
Loss on classification to held for sale, net | (96,000,000) | ||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Distributions from unconsolidated affiliates | 0 | ||||||||||
Write-down of natural gas inventory | 3,000,000 | ||||||||||
Capital expenditures | 3,000,000 | ||||||||||
Distributions from unconsolidated affiliates in excess of cumulative earnings | 0 | ||||||||||
Discontinued Operations | Energy Services Disposal Group | CERC Corp | |||||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||||
Income (loss) from discontinued operations before income taxes | 22,000,000 | ||||||||||
Income tax expense (benefit) | (2,000,000) | ||||||||||
Net income (loss) from Discontinued Operations | (66,000,000) | ||||||||||
Revenues | 1,167,000,000 | ||||||||||
Non-utility cost of revenues | 1,108,000,000 | ||||||||||
Operation and maintenance | 34,000,000 | ||||||||||
Taxes other than income taxes | 3,000,000 | ||||||||||
Total | 1,145,000,000 | ||||||||||
Loss on classification to held for sale, net | (90,000,000) | ||||||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||||
Write-down of natural gas inventory | 3,000,000 | ||||||||||
Capital expenditures | $ 3,000,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | $ 9,327 | $ 8,256 | $ 7,350 |
Other | (6) | 96 | 68 |
Revenues | 9,321 | 8,352 | 7,418 |
Lease income | 7 | 7 | 6 |
Electric | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | 4,095 | 3,726 | 3,451 |
Other | 13 | 37 | 19 |
Revenues | 4,108 | 3,763 | 3,470 |
Natural Gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | 4,969 | 4,281 | 3,586 |
Other | (23) | 55 | 45 |
Revenues | 4,946 | 4,336 | 3,631 |
Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | 263 | 249 | 313 |
Other | 4 | 4 | 4 |
Revenues | 267 | 253 | 317 |
Houston Electric | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | 3,417 | 3,117 | 2,896 |
Other | (5) | 17 | 15 |
Revenues | 3,412 | 3,134 | 2,911 |
CERC Corp | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | 4,816 | 4,148 | 3,480 |
Other | (16) | 52 | 51 |
Revenues | 4,800 | 4,200 | 3,531 |
Lease income | $ 3 | $ 3 | $ 2 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Assets and Liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accounts Receivable | |
Opening balance as of December 31, 2021 | $ 627 |
Closing balance as of December 31, 2022 | 858 |
Increase (decrease) in accounts receivable | 231 |
Other Accrued Unbilled Revenues | |
Opening balance as of December 31, 2021 | 513 |
Closing balance as of December 31, 2022 | 764 |
Increase (decrease) in other accrued unbilled revenues | 251 |
Contract Assets | |
Opening balance as of December 31, 2021 | 15 |
Closing balance as of December 31, 2022 | 4 |
Increase (decrease) in contract with customer, asset | (11) |
Contract Liabilities | |
Opening balance as of December 31, 2021 | 16 |
Closing balance as of December 31, 2022 | 45 |
Increase (decrease) in contract with customer, liability | 29 |
Revenue recognized included in the opening contract liability for the period | 15 |
Houston Electric | |
Accounts Receivable | |
Opening balance as of December 31, 2021 | 225 |
Closing balance as of December 31, 2022 | 271 |
Increase (decrease) in accounts receivable | 46 |
Other Accrued Unbilled Revenues | |
Opening balance as of December 31, 2021 | 127 |
Closing balance as of December 31, 2022 | 142 |
Increase (decrease) in other accrued unbilled revenues | 15 |
Contract Liabilities | |
Opening balance as of December 31, 2021 | 4 |
Closing balance as of December 31, 2022 | 2 |
Increase (decrease) in contract with customer, liability | (2) |
Revenue recognized included in the opening contract liability for the period | 4 |
CERC Corp | |
Accounts Receivable | |
Opening balance as of December 31, 2021 | 319 |
Closing balance as of December 31, 2022 | 478 |
Increase (decrease) in accounts receivable | 159 |
Other Accrued Unbilled Revenues | |
Opening balance as of December 31, 2021 | 335 |
Closing balance as of December 31, 2022 | 573 |
Increase (decrease) in other accrued unbilled revenues | $ 238 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 850 |
Corporate and Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 850 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue expected to be recognized | $ 288 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Corporate and Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue expected to be recognized | $ 288 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | |
Revenue expected to be recognized | $ 562 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Corporate and Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | |
Revenue expected to be recognized | $ 562 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Bad Debt Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Bad debt expense | $ 20 | $ 12 | $ 24 |
Bad debt expense deferred as regulatory asset | 0 | 16 | 17 |
Houston Electric | |||
Bad debt expense | 0 | 0 | 0 |
Bad debt expense deferred as regulatory asset | 0 | 8 | 0 |
CERC Corp | |||
Bad debt expense | 17 | 10 | 21 |
Bad debt expense deferred as regulatory asset | $ 0 | $ 8 | $ 16 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (CenterPoint Energy and CERC ) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 4,294,000,000 | $ 4,294,000,000 | ||||
Goodwill transferred | 972,000,000 | 972,000,000 | ||||
Goodwill impairment | $ 0 | $ 0 | 0 | 0 | $ 185,000,000 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 63,000,000 | 63,000,000 | ||||
Accumulated Amortization | (25,000,000) | (19,000,000) | ||||
Net Balance | 38,000,000 | 44,000,000 | ||||
2023 | 6,000,000 | |||||
2024 | 5,000,000 | |||||
2025 | 5,000,000 | |||||
2026 | 5,000,000 | |||||
2027 | 4,000,000 | |||||
Indiana Electric Integrated | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment | $ 185,000,000 | |||||
Fair value of goodwill | $ 936,000,000 | |||||
Customer Relationships | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 33,000,000 | 33,000,000 | ||||
Accumulated Amortization | (16,000,000) | (12,000,000) | ||||
Net Balance | 17,000,000 | 21,000,000 | ||||
Trade Names | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 16,000,000 | 16,000,000 | ||||
Accumulated Amortization | (6,000,000) | (5,000,000) | ||||
Net Balance | 10,000,000 | 11,000,000 | ||||
Operation and maintenance agreements | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 12,000,000 | 12,000,000 | ||||
Accumulated Amortization | (2,000,000) | (1,000,000) | ||||
Net Balance | 10,000,000 | 11,000,000 | ||||
Other | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 2,000,000 | 2,000,000 | ||||
Accumulated Amortization | (1,000,000) | (1,000,000) | ||||
Net Balance | 1,000,000 | 1,000,000 | ||||
Electric | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 936,000,000 | 936,000,000 | ||||
Accumulated goodwill impairment charge | 185,000,000 | |||||
Natural Gas | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 2,920,000,000 | 2,920,000,000 | ||||
Held for Sale | 398,000,000 | |||||
Corporate and Other | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 438,000,000 | 438,000,000 | ||||
Depreciation and amortization expense | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Amortization of intangible assets in Non-utility cost of revenues | 6,000,000 | 6,000,000 | 6,000,000 | |||
Non-utility cost of revenues | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Amortization of intangible assets in Non-utility cost of revenues | 1,000,000 | 1,000,000 | $ 2,000,000 | |||
CERC Corp | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 1,583,000,000 | 1,583,000,000 | ||||
CERC Corp | Natural Gas | ||||||
Goodwill [Line Items] | ||||||
Held for Sale | $ 144,000,000 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 3,578 | $ 3,716 |
Total current regulatory assets | 1,385 | 1,395 |
Total Non-Current Regulatory Assets | 2,193 | 2,321 |
Total Regulatory Liabilities | 3,270 | 3,174 |
Total current regulatory liabilities | 25 | 21 |
Total Non-Current Regulatory Liabilities | 3,245 | 3,153 |
Regulatory liabilities related to TCJA | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,436 | 1,389 |
Estimated removal costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,338 | 1,304 |
Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 496 | 481 |
Extraordinary gas costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total current regulatory assets | 1,175 | 1,256 |
Future Amounts Recoverable From Ratepayers | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 712 | 693 |
Future Amounts Recoverable From Ratepayers | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 392 | 412 |
Future Amounts Recoverable From Ratepayers | Asset retirement obligations & other | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 237 | 240 |
Future Amounts Recoverable From Ratepayers | Net deferred income taxes | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 83 | 41 |
Amounts Deferred For Future Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 1,716 | 1,921 |
Amounts Deferred For Future Recovery | Extraordinary gas costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 1,073 | 1,528 |
Amounts Deferred For Future Recovery | Cost recovery riders | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 133 | 124 |
Amounts Deferred For Future Recovery | Hurricane and February 2021 Winter Storm Event restoration costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 129 | 105 |
Amounts Deferred For Future Recovery | Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 129 | 94 |
Amounts Deferred For Future Recovery | Gas recovery costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 108 | 29 |
Amounts Deferred For Future Recovery | Decoupling | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 3 | 25 |
Amounts Deferred For Future Recovery | COVID-19 incremental costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 13 | 23 |
Amounts Deferred For Future Recovery | TEEEF costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 182 | 21 |
Amounts Deferred For Future Recovery | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (54) | (28) |
Amounts Currently Recovered In Customer Rates | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 1,150 | 1,102 |
Amounts Currently Recovered In Customer Rates | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 18 | 28 |
Amounts Currently Recovered In Customer Rates | Extraordinary gas costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 294 | 66 |
Amounts Currently Recovered In Customer Rates | Hurricane and February 2021 Winter Storm Event restoration costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 30 | 43 |
Amounts Currently Recovered In Customer Rates | Gas recovery costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 79 | 72 |
Amounts Currently Recovered In Customer Rates | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (134) | (171) |
Amounts Currently Recovered In Customer Rates | Regulatory assets related to TCJA | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 47 | 48 |
Amounts Currently Recovered In Customer Rates | Authorized trackers and cost deferrals | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 499 | 504 |
Amounts Currently Recovered In Customer Rates | Securitized regulatory assets | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 229 | 420 |
Amounts Currently Recovered In Customer Rates | Unamortized loss on reacquired debt and hedging | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 88 | 92 |
Amounts Currently Recovered In Customer Rates, Earning Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 390 | |
Amounts Currently Recovered In Customer Rates, Not Earning A Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 531 | |
Remaining weighted average period for which no return on investment during recovery period is provided | 11 years | |
Houston Electric | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 778 | 789 |
Total current regulatory assets | 0 | 0 |
Total Non-Current Regulatory Assets | 778 | 789 |
Total Regulatory Liabilities | 1,155 | 1,172 |
Total current regulatory liabilities | 0 | 20 |
Total Non-Current Regulatory Liabilities | 1,155 | 1,152 |
Houston Electric | Regulatory liabilities related to TCJA | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 716 | 738 |
Houston Electric | Estimated removal costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 158 | 229 |
Houston Electric | Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 281 | 205 |
Houston Electric | Future Amounts Recoverable From Ratepayers | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 98 | 74 |
Houston Electric | Future Amounts Recoverable From Ratepayers | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Future Amounts Recoverable From Ratepayers | Asset retirement obligations & other | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 64 | 45 |
Houston Electric | Future Amounts Recoverable From Ratepayers | Net deferred income taxes | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 34 | 29 |
Houston Electric | Amounts Deferred For Future Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 322 | 188 |
Houston Electric | Amounts Deferred For Future Recovery | Extraordinary gas costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Amounts Deferred For Future Recovery | Cost recovery riders | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Amounts Deferred For Future Recovery | Hurricane and February 2021 Winter Storm Event restoration costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 113 | 105 |
Houston Electric | Amounts Deferred For Future Recovery | Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 46 | 57 |
Houston Electric | Amounts Deferred For Future Recovery | Gas recovery costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Amounts Deferred For Future Recovery | Decoupling | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Amounts Deferred For Future Recovery | COVID-19 incremental costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 8 | 8 |
Houston Electric | Amounts Deferred For Future Recovery | TEEEF costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 182 | 21 |
Houston Electric | Amounts Deferred For Future Recovery | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (27) | (3) |
Houston Electric | Amounts Currently Recovered In Customer Rates | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 358 | 527 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 18 | 24 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Extraordinary gas costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Hurricane and February 2021 Winter Storm Event restoration costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 30 | 43 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Gas recovery costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (55) | (97) |
Houston Electric | Amounts Currently Recovered In Customer Rates | Regulatory assets related to TCJA | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 47 | 46 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Authorized trackers and cost deferrals | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 25 | 24 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Securitized regulatory assets | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 229 | 420 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Unamortized loss on reacquired debt and hedging | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 64 | 67 |
Houston Electric | Amounts Currently Recovered In Customer Rates, Earning Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 294 | |
Houston Electric | Amounts Currently Recovered In Customer Rates, Not Earning A Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 64 | |
Remaining weighted average period for which no return on investment during recovery period is provided | 28 years | |
CERC Corp | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 2,180 | 2,309 |
Total current regulatory assets | 1,336 | 1,371 |
Total Non-Current Regulatory Assets | 844 | 938 |
Total Regulatory Liabilities | 1,826 | 1,716 |
Total current regulatory liabilities | 25 | 1 |
Total Non-Current Regulatory Liabilities | 1,801 | 1,715 |
CERC Corp | Regulatory liabilities related to TCJA | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 536 | 573 |
CERC Corp | Estimated removal costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,097 | 994 |
CERC Corp | Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 193 | 149 |
CERC Corp | Extraordinary gas costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total current regulatory assets | 1,175 | 1,245 |
CERC Corp | Future Amounts Recoverable From Ratepayers | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 200 | 181 |
CERC Corp | Future Amounts Recoverable From Ratepayers | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 5 | 5 |
CERC Corp | Future Amounts Recoverable From Ratepayers | Asset retirement obligations & other | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 155 | 171 |
CERC Corp | Future Amounts Recoverable From Ratepayers | Net deferred income taxes | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 40 | 5 |
CERC Corp | Amounts Deferred For Future Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 1,324 | 1,670 |
CERC Corp | Amounts Deferred For Future Recovery | Extraordinary gas costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 1,073 | 1,517 |
CERC Corp | Amounts Deferred For Future Recovery | Cost recovery riders | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 57 | 51 |
CERC Corp | Amounts Deferred For Future Recovery | Hurricane and February 2021 Winter Storm Event restoration costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 16 | 0 |
CERC Corp | Amounts Deferred For Future Recovery | Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 67 | 37 |
CERC Corp | Amounts Deferred For Future Recovery | Gas recovery costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 108 | 29 |
CERC Corp | Amounts Deferred For Future Recovery | Decoupling | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 3 | 25 |
CERC Corp | Amounts Deferred For Future Recovery | COVID-19 incremental costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 5 | 15 |
CERC Corp | Amounts Deferred For Future Recovery | TEEEF costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
CERC Corp | Amounts Deferred For Future Recovery | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (5) | (4) |
CERC Corp | Amounts Currently Recovered In Customer Rates | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 656 | 458 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 4 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Extraordinary gas costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 294 | 66 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Hurricane and February 2021 Winter Storm Event restoration costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Gas recovery costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 30 | 59 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (49) | (47) |
CERC Corp | Amounts Currently Recovered In Customer Rates | Regulatory assets related to TCJA | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 2 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Authorized trackers and cost deferrals | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 369 | 363 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Securitized regulatory assets | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Unamortized loss on reacquired debt and hedging | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 12 | $ 11 |
CERC Corp | Amounts Currently Recovered In Customer Rates, Earning Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 96 | |
CERC Corp | Amounts Currently Recovered In Customer Rates, Not Earning A Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 424 | |
Remaining weighted average period for which no return on investment during recovery period is provided | 7 years |
Regulatory Matters - Schedule_2
Regulatory Matters - Schedule of Allowed Equity Return Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Public Utilities, General Disclosures [Line Items] | |||
Allowed equity return recognized | $ 45 | $ 40 | $ 31 |
Houston Electric | |||
Public Utilities, General Disclosures [Line Items] | |||
Allowed equity return recognized | 42 | 37 | 31 |
CERC Corp | |||
Public Utilities, General Disclosures [Line Items] | |||
Allowed equity return recognized | $ 2 | $ 2 | $ 0 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) $ in Millions | 12 Months Ended | ||||||||
Oct. 05, 2022 USD ($) | Jul. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) lease | Jan. 04, 2023 USD ($) | Dec. 31, 2022 USD ($) | Aug. 11, 2022 USD ($) | May 10, 2022 USD ($) | Dec. 22, 2021 USD ($) | Nov. 12, 2021 USD ($) | |
Public Utilities, General Disclosures [Line Items] | |||||||||
Total Regulatory Assets | $ 3,716 | $ 3,578 | |||||||
Total current regulatory assets | 1,395 | 1,385 | |||||||
Total Non-Current Regulatory Assets | 2,321 | 2,193 | |||||||
Total Regulatory Liabilities | 3,174 | 3,270 | |||||||
Disallowance of regulatory asset | 53 | ||||||||
February 2021 Winter Storm Event | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total current regulatory assets | 1,410 | 1,175 | |||||||
Total Non-Current Regulatory Assets | 583 | 202 | |||||||
Regulatory Liability, Amount Remaining Under Prudence Review | 75 | ||||||||
Regulatory Liability, Approximate Total Gas Cost | 2,000 | ||||||||
February 2021 Winter Storm Event | Arkansas and Oklahoma Natural Gas Businesses | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total current regulatory assets | 154 | ||||||||
Total Non-Current Regulatory Assets | 244 | ||||||||
February 2021 Winter Storm Event | Customer Rate Relief Bond Financing | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total Regulatory Assets | $ 1,100 | ||||||||
February 2021 Winter Storm Event | Authorized trackers and cost deferrals | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total Regulatory Assets | 15 | 16 | |||||||
Natural Gas | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Incremental uncollectible receivables, regulatory asset | 29 | 17 | |||||||
CERC Corp | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total Regulatory Assets | 2,309 | 2,180 | |||||||
Total current regulatory assets | 1,371 | 1,336 | |||||||
Total Non-Current Regulatory Assets | 938 | 844 | |||||||
Total Regulatory Liabilities | 1,716 | 1,826 | |||||||
Incremental uncollectible receivables, regulatory asset | 28 | ||||||||
CERC Corp | Minimum | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Proposed disallowance of regulatory asset | $ 45 | ||||||||
CERC Corp | Maximum | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Proposed disallowance of regulatory asset | $ 409 | ||||||||
CERC Corp | February 2021 Winter Storm Event | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total current regulatory assets | 1,399 | 1,175 | |||||||
Total Non-Current Regulatory Assets | 583 | 202 | |||||||
CERC Corp | February 2021 Winter Storm Event | Arkansas and Oklahoma Natural Gas Businesses | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total Regulatory Assets | 398 | ||||||||
Total current regulatory assets | 154 | ||||||||
Total Non-Current Regulatory Assets | 244 | ||||||||
Houston Electric | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total Regulatory Assets | 789 | 778 | |||||||
Total current regulatory assets | 0 | 0 | |||||||
Total Non-Current Regulatory Assets | 789 | 778 | |||||||
Total Regulatory Liabilities | $ 1,172 | 1,155 | |||||||
Disallowance of regulatory asset | 53 | ||||||||
Number of leases entered into | lease | 2 | ||||||||
Houston Electric | February 2021 Winter Storm Event | Authorized trackers and cost deferrals | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total Regulatory Assets | $ 15 | $ 16 | |||||||
IURC | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Estimated qualified costs | $ 359 | ||||||||
Financed qualified costs | 350 | ||||||||
Eatimated ongoing costs | $ 9 | ||||||||
Public Utility Commission of Texas | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total Regulatory Assets | 8 | ||||||||
Public Utility Commission of Texas | Houston Electric | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Total Regulatory Assets | $ 8 | ||||||||
Minnesota Public Utility Commission | CERC Corp | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Disallowance of regulatory asset | $ 36 | ||||||||
Public Utility Commission Of Texas | Houston Electric | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Recovery of deferred costs sought | $ 200 | ||||||||
Annual revenue increase from lease agreements | $ 57 | ||||||||
Public Utility Commission Of Texas | Houston Electric | Minimum | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Estimated financial impact | $ 335 | ||||||||
Public Utility Commission Of Texas | Houston Electric | Maximum | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Estimated financial impact | $ 354 | ||||||||
Subsequent Event | IURC | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Authorised issuance costs (up to) | $ 350 |
Stock-Based Incentive Compens_3
Stock-Based Incentive Compensation Plans and Employee Benefit Plans - Stock Based Incentive Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Income tax benefit recognized | $ 12 | $ 11 | $ 9 |
Actual tax benefit realized for tax deductions | $ 6 | $ 4 | $ 5 |
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Shares | |||
Nonvested, beginning of period (in shares) | 4,663,000,000 | ||
Granted (in shares) | 1,781,000,000 | ||
Forfeited or cancelled (in shares) | (856,000,000) | ||
Vested and released to participants (in shares) | (431,000,000) | ||
Nonvested, end of period (in shares) | 5,157,000,000 | 4,663,000,000 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested, beginning of period (in dollars per share) | $ 24.48 | ||
Granted (in dollars per share) | 28.12 | $ 21.89 | $ 23.82 |
Forfeited or cancelled (in dollars per share) | 29.92 | ||
Vested and released to participants (in dollars per share) | 31.20 | ||
Nonvested, end of period (in dollars per share) | $ 24.26 | $ 24.48 | |
Remaining average contractual life of nonvested shares outstanding (in years) | 1 year | ||
Aggregate intrinsic value | $ 106 | ||
Total intrinsic value of awards received by participants | 13 | $ 7 | $ 9 |
Total grant date fair values of performance and stock awards which vested during the period | $ 13 | $ 8 | $ 9 |
Stock Awards | |||
Shares | |||
Nonvested, beginning of period (in shares) | 2,367,000,000 | ||
Granted (in shares) | 441,000,000 | ||
Forfeited or cancelled (in shares) | (60,000,000) | ||
Vested and released to participants (in shares) | (452,000,000) | ||
Nonvested, end of period (in shares) | 2,296,000,000 | 2,367,000,000 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested, beginning of period (in dollars per share) | $ 24.75 | ||
Granted (in dollars per share) | 28.44 | $ 24.20 | $ 21.53 |
Forfeited or cancelled (in dollars per share) | 24.98 | ||
Vested and released to participants (in dollars per share) | 28.35 | ||
Nonvested, end of period (in dollars per share) | $ 25.03 | $ 24.75 | |
Remaining average contractual life of nonvested shares outstanding (in years) | 10 months 24 days | ||
Aggregate intrinsic value | $ 69 | ||
Total intrinsic value of awards received by participants | 14 | $ 11 | $ 12 |
Total grant date fair values of performance and stock awards which vested during the period | 13 | 11 | 12 |
Performance and Stock Awards | |||
Weighted-Average Grant Date Fair Value | |||
Unrecognized compensation cost related to non-vested performance and stock awards | $ 50 | ||
Weighted average period of recognition (in years) | 1 year 7 months 6 days | ||
Operation And Maintenance Expense | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
LTIP compensation expense | $ 51 | $ 48 | $ 38 |
Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance under long-term incentive plans (in shares) | 30,000,000 |
Stock-Based Incentive Compens_4
Stock-Based Incentive Compensation Plans and Employee Benefit Plans - Pension and Postretirement Benefits (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) beneficiary defined_benefit_plan | Dec. 31, 2022 USD ($) defined_benefit_plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Number Of Additional Plans | defined_benefit_plan | 3 | 3 | ||
Components of net periodic costs [Abstract] | ||||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | Other income (expense), net | Other income (expense), net | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | Other income (expense), net | Other income (expense), net | |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | Other income (expense), net | Other income (expense), net | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | Other income (expense), net | Other income (expense), net | |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | Other income (expense), net | Other income (expense), net | |
Amounts Recognized in Balance Sheets | ||||
Other liabilities — benefit obligations | $ (547) | $ (547) | $ (511) | |
Discount rate period | 99 years | |||
Annuity purchase | $ 136 | |||
Changes in plan assets and benefit obligations recognized in other comprehensive income | ||||
Amortization of net loss | (8) | (7) | ||
Amortization of prior service cost | 1 | (1) | ||
Settlement | $ (67) | (4) | ||
Defined Benefit Plan, Funded Plan, Closed | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Number Of Additional Plans | defined_benefit_plan | 2 | 2 | ||
Defined Benefit Plan, Funded Plan, Frozen | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Number Of Additional Plans | defined_benefit_plan | 1 | 1 | ||
Pension Plan | ||||
Components of net periodic costs [Abstract] | ||||
Service cost | $ 29 | 38 | ||
Interest cost | 73 | 59 | $ 75 | |
Expected return on plan assets | (87) | (103) | (112) | |
Amortization of net loss | 31 | 36 | 41 | |
Settlement cost | 126 | 38 | 2 | |
Net periodic cost (credit) | $ 172 | $ 69 | 49 | |
Assumptions used to determine net periodic benefit (income) cost | ||||
Expected return on plan assets (as a percent) | 6.50% | 5% | ||
Change in benefit obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | $ 2,298 | $ 2,507 | ||
Service cost | 29 | 38 | ||
Interest cost | 73 | 59 | 75 | |
Benefits paid | (509) | (285) | ||
Actuarial (gain) loss | (338) | (22) | ||
Plan amendment | 0 | 1 | ||
Benefit obligation, end of year | $ 1,553 | 1,553 | 2,298 | 2,507 |
Change in plan assets [Rollforward] | ||||
Fair value of plan assets, beginning of year | 2,072 | 2,135 | ||
Employer contributions | 35 | 61 | ||
Benefits paid | (509) | (285) | ||
Actual investment return | (386) | 161 | ||
Fair value of plan assets, end of year | 1,212 | 1,212 | 2,072 | $ 2,135 |
Funded status, end of year | (341) | (341) | (226) | |
Amounts Recognized in Balance Sheets | ||||
Non-current assets | 0 | 0 | 6 | |
Current liabilities — other | (7) | (7) | (7) | |
Other liabilities — benefit obligations | (334) | (334) | (225) | |
Net liability, end of year | $ (341) | $ (341) | $ (226) | |
Discount rate (as a percent) | 5.15% | 5.15% | 2.80% | |
Rate of increase in compensation levels (as a percent) | 4.99% | 4.99% | 4.95% | |
Interest crediting rate (as a percent) | 3% | 3% | 2.25% | |
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Accumulated benefit obligation for all defined benefit pension plans | $ 1,548 | $ 1,548 | $ 2,278 | |
Amounts recognized in accumulated other comprehensive loss | ||||
Unrecognized actuarial loss (gain) | 70 | 70 | 99 | |
Unrecognized prior service cost | 0 | 0 | 0 | |
Net amount recognized in accumulated other comprehensive loss (gain) | 70 | 70 | 99 | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | ||||
Net loss (gain) | 45 | |||
Amortization of net loss | (7) | |||
Amortization of prior service cost | 0 | |||
Settlement | (67) | |||
Total recognized in comprehensive income | (29) | |||
Total expense recognized in net periodic cost and other comprehensive income | 142 | |||
Pension Plan | Qualified Plan | ||||
Change in plan assets [Rollforward] | ||||
Employer contributions | 27 | |||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Accumulated benefit obligation | 1,497 | 1,497 | 2,216 | |
Projected benefit obligation | 1,502 | 1,502 | 2,237 | |
Fair value of plan assets | 1,212 | 1,212 | 2,072 | |
Pension Plan | Nonqualified Plan | ||||
Change in plan assets [Rollforward] | ||||
Employer contributions | 8 | |||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Accumulated benefit obligation | 51 | 51 | 62 | |
Projected benefit obligation | 51 | 51 | 62 | |
Fair value of plan assets | 0 | $ 0 | $ 0 | |
Pension Plan | CenterPoint Energy | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Decrease in benefit obligation from transfer | 138 | |||
Decrease in plan assets | $ 136 | |||
Change in benefit obligation (as a percent) | 9.40% | |||
Number of beneficiaries | beneficiary | 1,119 | |||
Assumptions used to determine net periodic benefit (income) cost | ||||
Discount rate (as a percent) | 2.80% | 2.45% | 3.20% | |
Expected return on plan assets (as a percent) | 5% | 5% | 5.75% | |
Rate of increase in compensation levels (as a percent) | 4.95% | 5.05% | 4.95% | |
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Settlement charge | $ 47 | |||
Other Postretirement Benefits Plan | ||||
Components of net periodic costs [Abstract] | ||||
Service cost | $ 2 | $ 2 | $ 2 | |
Interest cost | 9 | 9 | 11 | |
Expected return on plan assets | (5) | (4) | (5) | |
Amortization of prior service cost | (3) | (4) | (4) | |
Amortization of net loss | 4 | 0 | 0 | |
Net periodic cost (credit) | $ (1) | $ 3 | $ 4 | |
Assumptions used to determine net periodic benefit (income) cost | ||||
Discount rate (as a percent) | 2.85% | 2.50% | 3.25% | |
Expected return on plan assets (as a percent) | 3.22% | 3.20% | 3.95% | |
Change in benefit obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | $ 336 | $ 366 | ||
Service cost | 2 | 2 | $ 2 | |
Interest cost | 9 | 9 | 11 | |
Participant contributions | 6 | 7 | ||
Benefits paid | (20) | (21) | ||
Early Retiree Reinsurance Program | 0 | 20 | ||
Actuarial (gain) loss | (73) | (47) | ||
Plan amendment | 3 | 0 | ||
Benefit obligation, end of year | 263 | 263 | 336 | 366 |
Change in plan assets [Rollforward] | ||||
Fair value of plan assets, beginning of year | 132 | 134 | ||
Employer contributions | 8 | 7 | ||
Participant contributions | 6 | 7 | ||
Benefits paid | (20) | (21) | ||
Actual investment return | (17) | 5 | ||
Fair value of plan assets, end of year | 109 | 109 | 132 | 134 |
Funded status, end of year | (154) | (154) | (204) | |
Amounts Recognized in Balance Sheets | ||||
Current liabilities — other | (7) | (7) | (7) | |
Other liabilities — benefit obligations | (147) | (147) | (197) | |
Net liability, end of year | $ (154) | $ (154) | $ (204) | |
Discount rate (as a percent) | 5.15% | 5.15% | 2.85% | |
Expected return on plan assets (as a percent) | 3.66% | 3.22% | ||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Prescription drug cost trend rate assumed for the next year - Pre-65 | 8% | 8% | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | 4.50% | |
Amounts recognized in accumulated other comprehensive loss | ||||
Unrecognized actuarial loss (gain) | $ (36) | $ (36) | $ (23) | |
Unrecognized prior service cost | 13 | 13 | 13 | |
Net amount recognized in accumulated other comprehensive loss (gain) | $ (23) | (23) | $ (10) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | ||||
Net loss (gain) | (13) | |||
Amortization of net loss | (1) | |||
Amortization of prior service cost | 1 | |||
Settlement | 0 | |||
Total recognized in comprehensive income | (13) | |||
Total expense recognized in net periodic cost and other comprehensive income | $ (19) | |||
Minimum | Other Postretirement Benefits Plan | ||||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Health care cost trend rate assumed for the next year | 6.50% | 6.50% | 6% | |
Maximum | Other Postretirement Benefits Plan | ||||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Health care cost trend rate assumed for the next year | 23.66% | 23.66% | 18.71% | |
Houston Electric | ||||
Amounts Recognized in Balance Sheets | ||||
Other liabilities — benefit obligations | $ (38) | $ (38) | $ (55) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | ||||
Amortization of net loss | 0 | 0 | ||
Amortization of prior service cost | 0 | 0 | ||
Settlement | 0 | 0 | ||
Houston Electric | Pension Plan | Qualified Plan | ||||
Change in plan assets [Rollforward] | ||||
Employer contributions | 0 | |||
Houston Electric | Pension Plan | Nonqualified Plan | ||||
Change in plan assets [Rollforward] | ||||
Employer contributions | 0 | |||
Houston Electric | Other Postretirement Benefits Plan | ||||
Components of net periodic costs [Abstract] | ||||
Service cost | 0 | 0 | 0 | |
Interest cost | 4 | 4 | 5 | |
Expected return on plan assets | (4) | (3) | (4) | |
Amortization of prior service cost | (4) | (5) | (5) | |
Amortization of net loss | 2 | 0 | 0 | |
Net periodic cost (credit) | $ (6) | $ (4) | $ (4) | |
Assumptions used to determine net periodic benefit (income) cost | ||||
Discount rate (as a percent) | 2.85% | 2.50% | 3.25% | |
Expected return on plan assets (as a percent) | 3.32% | 3.30% | 4.05% | |
Change in benefit obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | $ 148 | $ 168 | ||
Service cost | 0 | 0 | $ 0 | |
Interest cost | 4 | 4 | 5 | |
Participant contributions | 2 | 2 | ||
Benefits paid | (7) | (9) | ||
Early Retiree Reinsurance Program | 0 | 0 | ||
Actuarial (gain) loss | (32) | (22) | ||
Plan amendment | 0 | 5 | ||
Benefit obligation, end of year | 115 | 115 | 148 | 168 |
Change in plan assets [Rollforward] | ||||
Fair value of plan assets, beginning of year | 104 | 106 | ||
Employer contributions | 1 | 1 | ||
Participant contributions | 2 | 2 | ||
Benefits paid | (7) | (9) | ||
Actual investment return | (16) | 4 | ||
Fair value of plan assets, end of year | 84 | 84 | 104 | 106 |
Funded status, end of year | (31) | (31) | (44) | |
Amounts Recognized in Balance Sheets | ||||
Current liabilities — other | 0 | 0 | 0 | |
Other liabilities — benefit obligations | (31) | (31) | (44) | |
Net liability, end of year | $ (31) | $ (31) | $ (44) | |
Discount rate (as a percent) | 5.15% | 5.15% | 2.85% | |
Expected return on plan assets (as a percent) | 3.75% | 3.32% | ||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Prescription drug cost trend rate assumed for the next year - Pre-65 | 8% | 8% | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | 4.50% | |
Houston Electric | Minimum | Other Postretirement Benefits Plan | ||||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Health care cost trend rate assumed for the next year | 6.50% | 6.50% | 6% | |
Houston Electric | Maximum | Other Postretirement Benefits Plan | ||||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Health care cost trend rate assumed for the next year | 23.66% | 23.66% | 18.71% | |
CERC Corp | ||||
Amounts Recognized in Balance Sheets | ||||
Other liabilities — benefit obligations | $ (76) | $ (76) | $ (100) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | ||||
Amortization of net loss | (1) | 0 | ||
Amortization of prior service cost | 1 | (1) | ||
Settlement | 0 | 0 | ||
CERC Corp | Pension Plan | Qualified Plan | ||||
Change in plan assets [Rollforward] | ||||
Employer contributions | 0 | |||
CERC Corp | Pension Plan | Nonqualified Plan | ||||
Change in plan assets [Rollforward] | ||||
Employer contributions | 0 | |||
CERC Corp | Other Postretirement Benefits Plan | ||||
Components of net periodic costs [Abstract] | ||||
Service cost | 1 | 1 | 1 | |
Interest cost | 3 | 3 | 4 | |
Expected return on plan assets | (1) | (1) | (1) | |
Amortization of prior service cost | 2 | 1 | 1 | |
Amortization of net loss | 1 | 0 | 0 | |
Net periodic cost (credit) | $ 4 | $ 4 | $ 5 | |
Assumptions used to determine net periodic benefit (income) cost | ||||
Discount rate (as a percent) | 2.85% | 2.50% | 3.25% | |
Expected return on plan assets (as a percent) | 2.86% | 2.85% | 3.35% | |
Change in benefit obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | $ 118 | $ 122 | ||
Service cost | 1 | 1 | $ 1 | |
Interest cost | 3 | 3 | 4 | |
Participant contributions | 3 | 3 | ||
Benefits paid | (8) | (8) | ||
Early Retiree Reinsurance Program | 0 | 11 | ||
Actuarial (gain) loss | (27) | (14) | ||
Plan amendment | 2 | 0 | ||
Benefit obligation, end of year | 92 | 92 | 118 | 122 |
Change in plan assets [Rollforward] | ||||
Fair value of plan assets, beginning of year | 29 | 28 | ||
Employer contributions | 4 | 4 | ||
Participant contributions | 3 | 3 | ||
Benefits paid | (8) | (8) | ||
Actual investment return | (3) | 2 | ||
Fair value of plan assets, end of year | 25 | 25 | 29 | 28 |
Funded status, end of year | (67) | (67) | (89) | |
Amounts Recognized in Balance Sheets | ||||
Current liabilities — other | (4) | (4) | (4) | |
Other liabilities — benefit obligations | (64) | (64) | (85) | |
Net liability, end of year | $ (68) | $ (68) | $ (89) | |
Discount rate (as a percent) | 5.15% | 5.15% | 2.85% | |
Expected return on plan assets (as a percent) | 3.35% | 2.86% | ||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Prescription drug cost trend rate assumed for the next year - Pre-65 | 8% | 8% | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | 4.50% | |
Amounts recognized in accumulated other comprehensive loss | ||||
Unrecognized actuarial loss (gain) | $ (28) | $ (28) | $ (18) | |
Unrecognized prior service cost | 11 | 11 | 12 | |
Net amount recognized in accumulated other comprehensive loss (gain) | $ (17) | (17) | $ (6) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | ||||
Net loss (gain) | (16) | |||
Amortization of net loss | (1) | |||
Amortization of prior service cost | 1 | |||
Settlement | 0 | |||
Total recognized in comprehensive income | (16) | |||
Total expense recognized in net periodic cost and other comprehensive income | $ (15) | |||
CERC Corp | Minimum | Other Postretirement Benefits Plan | ||||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Health care cost trend rate assumed for the next year | 6.50% | 6.50% | 6% | |
CERC Corp | Maximum | Other Postretirement Benefits Plan | ||||
Pension benefits that have accumulated benefit obligations in excess of plan assets | ||||
Health care cost trend rate assumed for the next year | 23.66% | 23.66% | 18.71% | |
Operation And Maintenance Expense | Pension Plan | ||||
Components of net periodic costs [Abstract] | ||||
Service cost | $ 29 | $ 39 | 43 | |
Change in benefit obligation [Roll Forward] | ||||
Service cost | $ 29 | $ 39 | $ 43 |
Stock-Based Incentive Compens_5
Stock-Based Incentive Compensation Plans and Employee Benefit Plans - Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Savings Plan [Abstract] | |||
Number of Common stock held by the savings plan (in shares) | 7,335,725 | ||
Percentage of investment in common stocks (in hundredths) | 9% | ||
Defined contribution plan cost | $ 72 | $ 58 | $ 58 |
Postemployment Benefits [Abstract] | |||
Postemployment Benefits, Period Expense | 4 | 3 | 1 |
Benefit expense related to deferred compensation plans | 1 | 3 | 4 |
Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 1,212 | 2,072 | 2,135 |
Obligation to return cash received as collateral from securities lending | (47) | (80) | |
Defined benefits plan, fair value of plan assets, excluding investments measured at net asset value | $ 708 | $ 1,303 | |
Discount rate (as a percent) | 5.15% | 2.80% | |
Contributions in 2022 | $ 35 | $ 61 | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
2023 | 134 | ||
2024 | 138 | ||
2025 | 137 | ||
2026 | 134 | ||
2027 | 134 | ||
2028-2032 | 608 | ||
Pension Plan | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2022 | 27 | ||
Expected Minimum Contributions in 2023 | 0 | ||
Pension Plan | Nonqualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2022 | 8 | ||
Expected Minimum Contributions in 2023 | 7 | ||
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 109 | $ 132 | 134 |
Discount rate (as a percent) | 5.15% | 2.85% | |
Contributions in 2022 | $ 8 | $ 7 | |
Expected Minimum Contributions in 2023 | 8 | ||
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
2023 | 15 | ||
2024 | 17 | ||
2025 | 18 | ||
2026 | 19 | ||
2027 | 20 | ||
2028-2032 | 106 | ||
Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 199 | 400 | |
Obligation to return cash received as collateral from securities lending | (47) | (80) | |
Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 509 | 903 | |
Obligation to return cash received as collateral from securities lending | 0 | 0 | |
Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Obligation to return cash received as collateral from securities lending | 0 | 0 | |
U.S. equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 29 | 89 | |
U.S. equity | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 29 | 89 | |
U.S. equity | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
U.S. equity | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Cash | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 7 | 26 | |
Cash | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 7 | 26 | |
Cash | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Cash | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Investment grade or above | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 467 | 833 | |
Investment grade or above | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Investment grade or above | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 467 | 833 | |
Investment grade or above | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Cash received as collateral from securities lending | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 47 | 80 | |
Cash received as collateral from securities lending | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 47 | 80 | |
Cash received as collateral from securities lending | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Cash received as collateral from securities lending | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
U.S. treasuries and government agencies | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 163 | 285 | |
U.S. treasuries and government agencies | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 163 | 285 | |
U.S. treasuries and government agencies | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
U.S. treasuries and government agencies | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mortgage backed securities | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 6 | 7 | |
Mortgage backed securities | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mortgage backed securities | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 6 | 7 | |
Mortgage backed securities | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Asset backed securities | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 2 | 3 | |
Asset backed securities | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Asset backed securities | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 2 | 3 | |
Asset backed securities | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Municipal bonds | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 24 | 40 | |
Municipal bonds | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Municipal bonds | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 24 | 40 | |
Municipal bonds | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual funds | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual funds | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 109 | $ 133 | |
Mutual funds | International equities | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 8% | 8% | |
Mutual funds | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 18% | 20% | |
Mutual funds | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 74% | 72% | |
Mutual funds | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 0 | $ 0 | |
Mutual funds | Level 1 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 109 | 133 | |
Mutual funds | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual funds | Level 2 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual funds | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual funds | Level 3 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
International government bonds | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 10 | 20 | |
International government bonds | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
International government bonds | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 10 | 20 | |
International government bonds | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Common Collective Trust Funds | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 504 | $ 769 | |
Common Collective Trust Funds | International equities | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 40% | 41% | |
Common Collective Trust Funds | U.S. equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 56% | 58% | |
Common Collective Trust Funds | Fixed income | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 4% | 1% | |
Benefit Obligation | |||
Postemployment Benefits [Abstract] | |||
Postemployment benefit obligations | $ 9 | $ 8 | |
Other non-qualified plans benefit obligations deferred compensation | 28 | 40 | |
Benefit obligations related to split-dollar life insurance arrangements | $ 22 | 29 | |
Minimum | U.S. equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 17% | ||
Minimum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 13% | ||
Minimum | International equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 9% | ||
Minimum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 3% | ||
Minimum | Real estate | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2% | ||
Minimum | Fixed income | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 54% | ||
Minimum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 69% | ||
Minimum | Cash | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 0% | ||
Minimum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 0% | ||
Maximum | U.S. equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 27% | ||
Maximum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 23% | ||
Maximum | International equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 19% | ||
Maximum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 13% | ||
Maximum | Real estate | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 11% | ||
Maximum | Fixed income | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 64% | ||
Maximum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 79% | ||
Maximum | Cash | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2% | ||
Maximum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2% | ||
Common Stock | CenterPoint Energy | |||
Savings Plan [Abstract] | |||
Maximum limit of account balance in company stock (as a percent) | 25% | ||
Houston Electric | |||
Savings Plan [Abstract] | |||
Defined contribution plan cost | $ 23 | 20 | 18 |
Postemployment Benefits [Abstract] | |||
Postemployment Benefits, Period Expense | 1 | 1 | 1 |
Benefit expense related to deferred compensation plans | 0 | 0 | 1 |
Houston Electric | Pension Plan | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2022 | 0 | ||
Expected Minimum Contributions in 2023 | 0 | ||
Houston Electric | Pension Plan | Nonqualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2022 | 0 | ||
Expected Minimum Contributions in 2023 | 0 | ||
Houston Electric | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 84 | $ 104 | 106 |
Discount rate (as a percent) | 5.15% | 2.85% | |
Contributions in 2022 | $ 1 | $ 1 | |
Expected Minimum Contributions in 2023 | 1 | ||
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
2023 | 6 | ||
2024 | 7 | ||
2025 | 8 | ||
2026 | 9 | ||
2027 | 9 | ||
2028-2032 | 49 | ||
Houston Electric | Mutual funds | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 84 | $ 105 | |
Houston Electric | Mutual funds | International equities | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 8% | 8% | |
Houston Electric | Mutual funds | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 17% | 19% | |
Houston Electric | Mutual funds | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 74% | 73% | |
Houston Electric | Mutual funds | Level 1 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 84 | $ 105 | |
Houston Electric | Mutual funds | Level 2 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Houston Electric | Mutual funds | Level 3 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Houston Electric | Benefit Obligation | |||
Postemployment Benefits [Abstract] | |||
Postemployment benefit obligations | 3 | 3 | |
Other non-qualified plans benefit obligations deferred compensation | 4 | 6 | |
Benefit obligations related to split-dollar life insurance arrangements | $ 1 | 1 | |
Houston Electric | Minimum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 13% | ||
Houston Electric | Minimum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 3% | ||
Houston Electric | Minimum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 69% | ||
Houston Electric | Minimum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 0% | ||
Houston Electric | Maximum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 23% | ||
Houston Electric | Maximum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 13% | ||
Houston Electric | Maximum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 79% | ||
Houston Electric | Maximum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2% | ||
CERC Corp | |||
Savings Plan [Abstract] | |||
Defined contribution plan cost | $ 22 | 23 | 25 |
Postemployment Benefits [Abstract] | |||
Postemployment Benefits, Period Expense | 1 | 2 | 0 |
Benefit expense related to deferred compensation plans | 0 | 0 | 0 |
CERC Corp | Pension Plan | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2022 | 0 | ||
Expected Minimum Contributions in 2023 | 0 | ||
CERC Corp | Pension Plan | Nonqualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2022 | 0 | ||
Expected Minimum Contributions in 2023 | 0 | ||
CERC Corp | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 25 | $ 29 | $ 28 |
Discount rate (as a percent) | 5.15% | 2.85% | |
Contributions in 2022 | $ 4 | $ 4 | |
Expected Minimum Contributions in 2023 | 4 | ||
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
2023 | 6 | ||
2024 | 6 | ||
2025 | 6 | ||
2026 | 7 | ||
2027 | 7 | ||
2028-2032 | 35 | ||
CERC Corp | Mutual funds | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 25 | $ 28 | |
CERC Corp | Mutual funds | International equities | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 6% | 7% | |
CERC Corp | Mutual funds | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 20% | 22% | |
CERC Corp | Mutual funds | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 74% | 71% | |
CERC Corp | Mutual funds | Level 1 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 25 | $ 28 | |
CERC Corp | Mutual funds | Level 2 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
CERC Corp | Mutual funds | Level 3 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
CERC Corp | Benefit Obligation | |||
Postemployment Benefits [Abstract] | |||
Postemployment benefit obligations | 4 | 5 | |
Other non-qualified plans benefit obligations deferred compensation | 1 | 4 | |
Benefit obligations related to split-dollar life insurance arrangements | $ 0 | $ 0 | |
CERC Corp | Minimum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 15% | ||
CERC Corp | Minimum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2% | ||
CERC Corp | Minimum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 68% | ||
CERC Corp | Minimum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 0% | ||
CERC Corp | Maximum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 25% | ||
CERC Corp | Maximum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 12% | ||
CERC Corp | Maximum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 78% | ||
CERC Corp | Maximum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2% |
Stock-Based Incentive Compens_6
Stock-Based Incentive Compensation Plans and Employee Benefit Plans - Change in Control Agreements and Other Employee Matters (Details) $ in Millions | 12 Months Ended | |
Jul. 21, 2021 USD ($) | Dec. 31, 2022 salary_severance_benefits | |
Concentration Risk [Line Items] | ||
Maximum number of times annual salary included in severance benefits | salary_severance_benefits | 3 | |
Board of Directors Chairman | ||
Concentration Risk [Line Items] | ||
Lump sum cash payment for separation | $ | $ 28 | |
Workforce Subject to Collective Bargaining Arrangements Expiring in May 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 16% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in May 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 2% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in April 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 5% | |
Workforce Subject to Collective Bargaining Arrangements Expiring December 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 3% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in December 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 3% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in June 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 6% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in July 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Workforce Subject to Collective Bargaining Arrangements Expiring June 2022, Additional | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 3% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in September 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in October 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 1% | |
Workforce Subject to Collective Bargaining Arrangements | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 39% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in May 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 54% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in May 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in April 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring December 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in December 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in June 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in July 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring June 2022, Additional | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in September 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in October 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 54% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in May 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in May 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 2% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in April 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 13% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring December 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 8% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in December 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 8% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in June 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 14% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in July 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 1% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring June 2022, Additional | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in September 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in October 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 4% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 50% |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Hedging and Weather Hedges (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Not Designated as Hedging Instrument, Economic Hedge | Interest rate derivatives | ||
Economic hedge | $ 84 | $ 84 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Derivative Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement Impact of Derivative Activity [Abstract] | |||
Gain (loss) on derivative instruments not designated as hedging instruments | $ 325 | $ 50 | $ (60) |
Derivative, Credit Risk Related Contingent Features [Abstract] | |||
Aggregate fair value of derivatives with credit-risk-related contingent features in a liability position | 0 | 14 | |
Fair value of collateral already posted | 0 | 7 | |
Additional collateral required to be posted if credit risk contingent features triggered | 0 | 7 | |
Gains (Losses) in Other Income (Expense) | Indexed debt securities derivative | |||
Income Statement Impact of Derivative Activity [Abstract] | |||
Gain (loss) on derivative instruments not designated as hedging instruments | 325 | 50 | $ (60) |
Not Designated as Hedging Instrument | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 12 | 14 | |
Derivative Liabilities Fair Value | 578 | 917 | |
Not Designated as Hedging Instrument | CERC Corp | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 9 | 12 | |
Derivative Liabilities Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Current Assets | Natural gas derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 9 | 9 | |
Derivative Liabilities Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Current Assets | Natural gas derivatives | CERC Corp | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 7 | 8 | |
Derivative Liabilities Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Current Assets | Interest rate derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 1 | 0 | |
Derivative Liabilities Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Other Noncurrent Assets | Natural gas derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 2 | 5 | |
Derivative Liabilities Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Other Noncurrent Assets | Natural gas derivatives | CERC Corp | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 2 | 4 | |
Derivative Liabilities Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Current Liabilities | Interest rate derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 0 | 0 | |
Derivative Liabilities Fair Value | 0 | 2 | |
Not Designated as Hedging Instrument | Current Liabilities | Indexed debt securities derivative | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 0 | 0 | |
Derivative Liabilities Fair Value | 578 | 903 | |
Not Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest rate derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 0 | 0 | |
Derivative Liabilities Fair Value | $ 0 | $ 12 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured On Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Equity securities | $ 510 | $ 1,439 |
Investments, including money market funds | 32 | 42 |
Interest rate derivatives | 1 | 0 |
Total assets | 554 | 1,495 |
Liabilities | ||
Total liabilities | 578 | 917 |
Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 578 | 903 |
Interest rate derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 14 |
Natural gas derivatives | ||
Assets | ||
Natural gas derivatives | 11 | 14 |
Level 1 | ||
Assets | ||
Equity securities | 510 | 1,439 |
Investments, including money market funds | 32 | 42 |
Interest rate derivatives | 0 | 0 |
Total assets | 542 | 1,481 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 1 | Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 1 | Interest rate derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 1 | Natural gas derivatives | ||
Assets | ||
Natural gas derivatives | 0 | 0 |
Level 2 | ||
Assets | ||
Equity securities | 0 | 0 |
Investments, including money market funds | 0 | 0 |
Interest rate derivatives | 1 | 0 |
Total assets | 12 | 14 |
Liabilities | ||
Total liabilities | 578 | 917 |
Level 2 | Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 578 | 903 |
Level 2 | Interest rate derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 14 |
Level 2 | Natural gas derivatives | ||
Assets | ||
Natural gas derivatives | 11 | 14 |
Level 3 | ||
Assets | ||
Equity securities | 0 | 0 |
Investments, including money market funds | 0 | 0 |
Interest rate derivatives | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 3 | Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 3 | Interest rate derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 3 | Natural gas derivatives | ||
Assets | ||
Natural gas derivatives | 0 | 0 |
Houston Electric | ||
Assets | ||
Investments, including money market funds | 17 | 27 |
Total assets | 17 | 27 |
Houston Electric | Level 1 | ||
Assets | ||
Investments, including money market funds | 17 | 27 |
Total assets | 17 | 27 |
Houston Electric | Level 2 | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
Houston Electric | Level 3 | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
CERC Corp | ||
Assets | ||
Investments, including money market funds | 14 | 14 |
Total assets | 23 | 26 |
CERC Corp | Natural gas derivatives | ||
Assets | ||
Natural gas derivatives | 9 | 12 |
CERC Corp | Level 1 | ||
Assets | ||
Investments, including money market funds | 14 | 14 |
Total assets | 14 | 14 |
CERC Corp | Level 1 | Natural gas derivatives | ||
Assets | ||
Natural gas derivatives | 0 | 0 |
CERC Corp | Level 2 | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 9 | 12 |
CERC Corp | Level 2 | Natural gas derivatives | ||
Assets | ||
Natural gas derivatives | 9 | 12 |
CERC Corp | Level 3 | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
CERC Corp | Level 3 | Natural gas derivatives | ||
Assets | ||
Natural gas derivatives | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 0 | $ 185,000,000 | |
Infrastructure Services Disposal Group | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill impairment | 82,000,000 | |||||
Energy Services Disposal Group | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill impairment | 62,000,000 | |||||
Indiana Electric Integrated | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill impairment | $ 185,000,000 | |||||
Level 2 | Infrastructure Services Disposal Group | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of disposal group | 864,000,000 | |||||
Level 2 | Energy Services Disposal Group | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of disposal group | 402,000,000 | |||||
Enable Midstream Partners | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment of CenterPoint Energy’s equity method investment in Enable | $ 1,541,000,000 | |||||
Equity method investment, fair value | $ 848,000,000 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 16,338 | $ 16,086 |
Carrying amount | Houston Electric | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 6,353 | 5,495 |
Carrying amount | CERC Corp | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 4,826 | 5,552 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 14,990 | 17,385 |
Fair value | Houston Electric | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 5,504 | 6,230 |
Fair value | CERC Corp | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 4,637 | $ 5,999 |
Equity Securities and Indexed_3
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Sale of Equity Securities (Details) - Energy Transfer Common Units - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended |
Mar. 31, 2022 | Mar. 31, 2022 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Units sold (in shares) | 50,999,768 | |
Proceeds from sale of units | $ 515 | |
Energy Transfer Series G Preferred Units | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Units sold (in shares) | 192,390 | |
Proceeds from sale of units | $ 187 |
Equity Securities and Indexed_4
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Gain (Loss) On Equity Securities (CenterPoint Energy) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | $ (227) | $ (172) | $ 49 |
AT&T Common | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | (63) | (43) | (105) |
Charter Common | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | (273) | (8) | 154 |
WBD Common | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | 23 | 0 | 0 |
Energy Transfer Common Units | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | 95 | (124) | 0 |
Energy Transfer Series G Preferred Units | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | (9) | 2 | 0 |
Other | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | $ 0 | $ 1 | $ 0 |
Equity Securities and Indexed_5
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Narrative (Details) | 12 Months Ended | ||||
Apr. 08, 2022 shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Unrealized gains (loss) on equity securities | $ (313,000,000) | $ (52,000,000) | $ 49,000,000 | ||
Target annual yield on reference shares | 2.309% | ||||
Investment in equity securities | $ 510,000,000 | 1,439,000,000 | |||
AT&T | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Shares expected to be received | shares | 0.241917 | ||||
Ownership (percentage) | 71% | ||||
ZENS-Related Securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Investment in equity securities | 507,000,000 | $ 820,000,000 | $ 871,000,000 | $ 822,000,000 | |
ZENS debt | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Principal amount of debt issued | 1,000,000,000 | ||||
Long-term debt, gross | $ 828,000,000 | ||||
Subordinated note cash exchangeable percentage of fair value | 95% | ||||
Debt instrument interest rate (as a percent) | 2% | ||||
Contingent principal amount | $ 26,000,000 | ||||
The cash exchange amount from referenced shares per $1,000 face amount of individual notes | 582 | ||||
Face amount of each indexed debt security notes issued by CenterPoint Energy in September 1999 | $ 1,000 | ||||
ZENS debt | AT&T Common | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Number of shares referenced in exchangeable subordinated note | shares | 0.7185 | 0.7185 | 0.7185 | ||
ZENS debt | Charter Common | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Number of shares referenced in exchangeable subordinated note | shares | 0.061382 | 0.061382 | 0.061382 | ||
ZENS debt | WBD Common | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Number of shares referenced in exchangeable subordinated note | shares | 0.173817 |
Equity Securities and Indexed_6
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Securities Classified as Trading (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Carrying value | $ 510 | $ 1,439 |
AT&T Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 10,212,945 | 10,212,945 |
Carrying value | $ 188 | $ 251 |
Charter Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 872,503 | 872,503 |
Carrying value | $ 296 | $ 569 |
WBD Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 2,470,685 | 0 |
Carrying value | $ 23 | $ 0 |
Energy Transfer Common Units | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 0 | 50,999,768 |
Carrying value | $ 0 | $ 420 |
Energy Transfer Series G Preferred Units | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 0 | 192,390 |
Carrying value | $ 0 | $ 196 |
Other | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Carrying value | $ 3 | $ 3 |
Equity Securities and Indexed_7
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Reference Shares (Details) - shares | Dec. 31, 2022 | Apr. 08, 2022 | Dec. 31, 2021 |
AT&T Common | ZENS debt | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of shares referenced in exchangeable subordinated note | 0.7185 | 0.7185 | 0.7185 |
Charter Common | ZENS debt | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of shares referenced in exchangeable subordinated note | 0.061382 | 0.061382 | 0.061382 |
WBD Common | ZENS debt | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of shares referenced in exchangeable subordinated note | 0.173817 | 0 | |
WBD Common | ZENS debt | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of shares referenced in exchangeable subordinated note | 0.173817 |
Equity Securities and Indexed_8
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Summarized Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Beginning balance | $ 1,439 | |||
Indexed debt, net | 7 | $ 10 | ||
Indexed debt securities derivative | 578 | 903 | ||
Gain (loss) on indexed debt securities | (325) | (50) | $ 60 | |
Gain (loss) on ZENS-related securities | (227) | (172) | 49 | |
Ending balance | 510 | 1,439 | ||
ZENS-Related Securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Beginning balance | 820 | 871 | 822 | |
Accretion of debt component of ZENS | 0 | 0 | 0 | |
2% interest paid | 0 | 0 | 0 | |
Distribution to ZENS holders | 0 | 0 | 0 | |
Gain (loss) on indexed debt securities | 0 | 0 | 0 | |
Gain (loss) on ZENS-related securities | (313) | (51) | 49 | |
Ending balance | 507 | 820 | 871 | |
Debt Component Of ZENS | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Indexed debt, net | 7 | 10 | 15 | $ 19 |
Accretion of debt component of ZENS | 17 | 17 | 17 | |
2% interest paid | (17) | (17) | (16) | |
Distribution to ZENS holders | (3) | (5) | (5) | |
Gain (loss) on indexed debt securities | 0 | 0 | 0 | |
Gain (loss) on ZENS-related securities | 0 | 0 | 0 | |
Derivative Component Of ZENS | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Indexed debt securities derivative | 578 | 903 | 953 | $ 893 |
Accretion of debt component of ZENS | 0 | 0 | 0 | |
2% interest paid | 0 | 0 | 0 | |
Distribution to ZENS holders | 0 | 0 | 0 | |
Gain (loss) on indexed debt securities | (325) | (50) | 60 | |
Gain (loss) on ZENS-related securities | $ 0 | $ 0 | $ 0 |
Equity (CenterPoint Energy) (De
Equity (CenterPoint Energy) (Details) | 1 Months Ended | 12 Months Ended | |||||||||||
May 06, 2020 USD ($) $ / shares shares | Apr. 01, 2020 $ / shares | Oct. 01, 2018 USD ($) $ / shares shares | Aug. 22, 2018 USD ($) $ / shares shares | Feb. 28, 2023 shares | Feb. 28, 2022 shares | Jul. 31, 2021 shares | Dec. 31, 2022 USD ($) day $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Sep. 01, 2021 shares | Jul. 20, 2021 shares | May 07, 2021 $ / shares | |
Cumulative preferred stock, outstanding (in shares) | shares | 800,000 | 800,000 | 2,402,400 | ||||||||||
Preferred stock, value outstanding | $ 790,000,000 | $ 790,000,000 | $ 2,363,000,000 | ||||||||||
Income allocated to preferred shareholders | 49,000,000 | 95,000,000 | 144,000,000 | ||||||||||
Amortization of beneficial conversion feature | 0 | 0 | 32,000,000 | ||||||||||
Income allocated to preferred shareholders | 49,000,000 | 95,000,000 | 176,000,000 | ||||||||||
Cumulative preferred stock, aggregate liquidation preference | 800 | 800 | |||||||||||
Proceeds from issuance of Common Stock, net | 0 | 0 | 672,000,000 | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||||||||
Beginning Balance | (64,000,000) | (90,000,000) | |||||||||||
Other comprehensive income (loss) from unconsolidated affiliates | 0 | 3,000,000 | |||||||||||
Prior service cost | (1,000,000) | 1,000,000 | |||||||||||
Actuarial losses | 8,000,000 | 7,000,000 | |||||||||||
Settlement | 67,000,000 | 4,000,000 | |||||||||||
Reclassification of deferred loss from cash flow hedges realized in net income | 1,000,000 | 2,000,000 | |||||||||||
Tax benefit (expense) | (2,000,000) | (7,000,000) | |||||||||||
Net current period other comprehensive income (loss) | 33,000,000 | 26,000,000 | 8,000,000 | ||||||||||
Ending Balance | (31,000,000) | (64,000,000) | (90,000,000) | ||||||||||
Chief Executive Officer | |||||||||||||
Shares authorized for issuance under long-term incentive plans (in shares) | shares | 1,000,000 | ||||||||||||
Chief Executive Officer | Restricted Stock Units (RSUs) | |||||||||||||
RSUs granted (in shares) | shares | 400,000 | 400,000 | |||||||||||
Chief Executive Officer | Restricted Stock Units (RSUs) | Subsequent Event | Forecast | |||||||||||||
RSUs granted (in shares) | shares | 200,000 | ||||||||||||
Houston Electric | |||||||||||||
Amortization of beneficial conversion feature | 0 | 0 | 0 | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||||||||
Beginning Balance | 0 | 0 | |||||||||||
Other comprehensive income (loss) from unconsolidated affiliates | 0 | 0 | |||||||||||
Prior service cost | 0 | 0 | |||||||||||
Actuarial losses | 0 | 0 | |||||||||||
Settlement | 0 | 0 | |||||||||||
Reclassification of deferred loss from cash flow hedges realized in net income | 0 | 0 | |||||||||||
Tax benefit (expense) | 0 | 0 | |||||||||||
Net current period other comprehensive income (loss) | 0 | 0 | 15,000,000 | ||||||||||
Ending Balance | 0 | 0 | 0 | ||||||||||
CERC Corp | |||||||||||||
Amortization of beneficial conversion feature | 0 | 0 | 0 | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||||||||
Beginning Balance | 10,000,000 | 10,000,000 | |||||||||||
Other comprehensive income (loss) from unconsolidated affiliates | 0 | 0 | |||||||||||
Prior service cost | (1,000,000) | 1,000,000 | |||||||||||
Actuarial losses | 1,000,000 | 0 | |||||||||||
Settlement | 0 | 0 | |||||||||||
Reclassification of deferred loss from cash flow hedges realized in net income | 0 | 0 | |||||||||||
Tax benefit (expense) | (4,000,000) | (1,000,000) | |||||||||||
Net current period other comprehensive income (loss) | 6,000,000 | 0 | 0 | ||||||||||
Ending Balance | 16,000,000 | 10,000,000 | $ 10,000,000 | ||||||||||
Pension and Other Postretirement Plans | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||||||||
Remeasurement of pension and other postretirement plans | (40,000,000) | 16,000,000 | |||||||||||
Pension and Other Postretirement Plans | Houston Electric | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||||||||
Remeasurement of pension and other postretirement plans | 0 | 0 | |||||||||||
Pension and Other Postretirement Plans | CERC Corp | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||||||||
Remeasurement of pension and other postretirement plans | $ 10,000,000 | $ 0 | |||||||||||
Common Stock | |||||||||||||
Stub cash dividend (in dollars per share) | $ / shares | $ 0.7200 | $ 0.6600 | $ 0.9000 | ||||||||||
Common stock, dividends paid per share (in dollars per share) | $ / shares | $ 0.7000 | $ 0.6500 | 0.7400 | ||||||||||
Stock issued (in shares) | shares | 41,977,612 | ||||||||||||
Common stock issued upon conversion (in shares) | shares | 35,921,441 | ||||||||||||
Common stock issued per share price | $ / shares | $ 16.08 | ||||||||||||
Proceeds from issuance of Common Stock, net | $ 673,000,000 | ||||||||||||
Shares authorized for issuance under long-term incentive plans (in shares) | shares | 30,000,000 | ||||||||||||
Common Stock | Previous Dividend or Distribution | |||||||||||||
Stub cash dividend (in dollars per share) | $ / shares | $ 0.2900 | ||||||||||||
Common Stock | Revised Dividend or Distribution | |||||||||||||
Stub cash dividend (in dollars per share) | $ / shares | $ 0.1500 | ||||||||||||
Series A Preferred Stock | |||||||||||||
Preferred stock dividends declared per share | $ / shares | $ 61.2500 | $ 61.2500 | 91.8750 | ||||||||||
Preferred stock, dividends paid per share (in dollars per share) | $ / shares | 61.2500 | $ 61.2500 | $ 61.2500 | ||||||||||
Preferred stock liquidation preference (per share) | $ / shares | $ 1,000 | $ 1,000 | |||||||||||
Cumulative preferred stock, outstanding (in shares) | shares | 800,000 | 800,000 | 800,000 | ||||||||||
Preferred stock, value outstanding | $ 790,000,000 | $ 790,000,000 | $ 790,000,000 | ||||||||||
Income allocated to preferred shareholders | $ 49,000,000 | $ 49,000,000 | $ 49,000,000 | ||||||||||
Stock issued (in shares) | shares | 800,000 | ||||||||||||
Proceeds from the issuance of convertible stock | $ 790,000,000 | ||||||||||||
Cumulative preferred stock, aggregate liquidation preference | $ 800,000,000 | ||||||||||||
Preferred stock dividend rate | 6.125% | ||||||||||||
Preferred stock redemption price (per share) | $ / shares | $ 1,000 | ||||||||||||
Preferred stock convertible threshold (in days) | day | 120 | ||||||||||||
Series A Preferred Stock | London Interbank Offered Rate (LIBOR) | |||||||||||||
Preferred stock, basis spread (as a percent) | 3.27% | ||||||||||||
Series A Preferred Stock | 120 Days After Conclusion of Review or Appeal | |||||||||||||
Preferred stock redemption price (per share) | $ / shares | $ 1,020 | ||||||||||||
Preferred stock redemption percentage liquidation value | 102% | ||||||||||||
Series B Preferred Stock | |||||||||||||
Preferred stock dividends declared per share | $ / shares | $ 0 | $ 35 | $ 87.5000 | ||||||||||
Preferred stock, dividends paid per share (in dollars per share) | $ / shares | 0 | $ 52.5000 | $ 70 | ||||||||||
Preferred stock liquidation preference (per share) | $ / shares | $ 1,000 | $ 1,000 | |||||||||||
Cumulative preferred stock, outstanding (in shares) | shares | 0 | 0 | 977,400 | ||||||||||
Preferred stock, value outstanding | $ 0 | $ 0 | $ 950,000,000 | ||||||||||
Income allocated to preferred shareholders | 0 | 46,000,000 | 68,000,000 | ||||||||||
Income allocated to preferred shareholders | $ 49,000,000 | $ 95,000,000 | $ 144,000,000 | ||||||||||
Stock issued (in shares) | shares | 2,550,000 | ||||||||||||
Ownership (percentage) | 5% | ||||||||||||
Cumulative preferred stock, aggregate liquidation preference | $ 978,000,000 | ||||||||||||
Preferred stock dividend rate | 7% | ||||||||||||
Conversion rate per share (in shares) | shares | 36.7677 | ||||||||||||
Preferred stock converted to common stock (in shares) | shares | 977,400 | ||||||||||||
Series C Preferred Stock | |||||||||||||
Preferred stock dividends declared per share | $ / shares | $ 0 | $ 0 | $ 0.6100 | ||||||||||
Preferred stock, dividends paid per share (in dollars per share) | $ / shares | 0 | $ 0.1600 | $ 0.4500 | ||||||||||
Preferred stock liquidation preference (per share) | $ / shares | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||||
Cumulative preferred stock, outstanding (in shares) | shares | 0 | 0 | 625,000 | ||||||||||
Preferred stock, value outstanding | $ 0 | $ 0 | $ 623,000,000 | ||||||||||
Income allocated to preferred shareholders | $ 0 | $ 0 | $ 27,000,000 | ||||||||||
Stock issued (in shares) | shares | 725,000 | ||||||||||||
Proceeds from the issuance of convertible stock | $ 724,000,000 | ||||||||||||
Preferred stock converted to common stock (in shares) | shares | 625,000 | ||||||||||||
Common stock issued upon conversion (in shares) | shares | 40,822,990 | ||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 15.31 | ||||||||||||
Depositary Shares | |||||||||||||
Stock issued (in shares) | shares | 19,550,000 | ||||||||||||
Proceeds from the issuance of convertible stock | $ 950,000,000 | ||||||||||||
Depositary share par value (in dollars per share) | $ / shares | $ 50 |
Short-term Borrowings and Lon_3
Short-term Borrowings and Long-term Debt - Schedule of Debt (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) day | Dec. 31, 2021 USD ($) | |
Long-term debt: | ||
Unamortized debt issuance costs | $ (15) | $ (23) |
Unamortized discount and premium, net | (6) | (7) |
Long-term debt | 14,836 | 15,558 |
Current debt | $ 2,020 | 545 |
Number of days until commercial paper maturity | day | 60 | |
Third Party | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Arkansas and Oklahoma Natural Gas Businesses | ||
Long-term debt: | ||
Outstanding obligations related to third party AMAs | 36 | |
CenterPoint Energy | ||
Long-term debt: | ||
Number of days until commercial paper maturity | day | 60 | |
Houston Electric | ||
Long-term debt: | ||
Unamortized debt issuance costs | $ (50) | (36) |
Unamortized discount and premium, net | (27) | (18) |
Long-term debt | 6,197 | 4,975 |
Current debt | 156 | 520 |
CERC Corp | ||
Long-term debt: | ||
Current | 1,331 | |
Unamortized debt issuance costs | (22) | (15) |
Unamortized discount and premium, net | (4) | (4) |
Long-term debt | 3,495 | 5,552 |
Current debt | $ 1,842 | 7 |
Number of days until commercial paper maturity | day | 30 | |
CERC Corp | Term Loan | ||
Long-term debt: | ||
Current debt | $ 500 | |
CERC Corp | Inventory Financing | ||
Long-term debt: | ||
Current debt | 11 | 7 |
CERC Corp | Third Party | ||
Long-term debt: | ||
Current debt | 511 | 7 |
CERC Corp | Third Party | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Arkansas and Oklahoma Natural Gas Businesses | ||
Long-term debt: | ||
Outstanding obligations related to third party AMAs | 36 | |
IGC and VEDO | ||
Long-term debt: | ||
Long-term debt | $ 1,076 | |
Subordinated Debt ZENS Member | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 2% | |
Long-term debt: | ||
Long-Term | $ 0 | 0 |
Current | 7 | 10 |
CenterPoint Energy senior notes 1.45% to 4.61% due 2024 to 2049 | ||
Long-term debt: | ||
Long-Term | 3,050 | 3,650 |
Current | $ 0 | 0 |
CenterPoint Energy senior notes 1.45% to 4.61% due 2024 to 2049 | CenterPoint Energy | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 1.45% | |
CenterPoint Energy senior notes 1.45% to 4.61% due 2024 to 2049 | CenterPoint Energy | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 4.61% | |
Bonds Pollution Control Due | ||
Long-term debt: | ||
Long-Term | $ 68 | 68 |
Current | $ 0 | 0 |
Bonds Pollution Control Due | CenterPoint Energy | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 5.125% | |
Commercial paper | ||
Long-term debt: | ||
Long-Term | $ 1,770 | 1,400 |
Current | 0 | 0 |
Commercial paper | VUHI | ||
Long-term debt: | ||
Long-Term | 0 | 350 |
Current | 0 | 0 |
Commercial paper | CERC Corp | ||
Long-term debt: | ||
Long-Term | 805 | 899 |
VUHI Senior Notes | VUHI | ||
Long-term debt: | ||
Long-Term | 0 | 377 |
Current | 0 | 0 |
VUHI Senior Notes | CERC Corp | ||
Long-term debt: | ||
Long-Term | 2,620 | 3,500 |
Current | $ 1,331 | |
VUHI Senior Notes | CERC Corp | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 0.70% | |
VUHI Senior Notes | CERC Corp | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 6.625% | |
SIGECO first mortgage bonds | ||
Long-term debt: | ||
Long-Term | $ 277 | 288 |
Current | $ 11 | 5 |
SIGECO first mortgage bonds | SIGECO | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 0.875% | |
SIGECO first mortgage bonds | SIGECO | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 6.72% | |
Other Debt | ||
Long-term debt: | ||
Long-Term | $ 0 | 4 |
Current | 4 | 3 |
Third Party | CERC Corp | ||
Long-term debt: | ||
Long-term debt | 3,495 | 4,476 |
General mortgage bonds | Houston Electric | ||
Long-term debt: | ||
Long-Term | 6,112 | 4,712 |
Current | $ 0 | 300 |
General mortgage bonds | Houston Electric | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 2.35% | |
General mortgage bonds | Houston Electric | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 6.95% | |
Other | Houston Electric | ||
Long-term debt: | ||
Long-Term | $ 1 | 0 |
Current | $ 0 | 0 |
System restoration bonds | Houston Electric | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 4.243% | |
Long-term debt: | ||
Long-Term | $ 0 | 0 |
Current | 0 | 70 |
Transition bonds | Houston Electric | ||
Long-term debt: | ||
Long-Term | 161 | 317 |
Current | $ 156 | 150 |
Transition bonds | Houston Electric | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 3.028% | |
Senior Notes | IGC | ||
Long-term debt: | ||
Long-Term | $ 96 | 96 |
Current | $ 0 | $ 0 |
Senior Notes | IGC | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 6.34% | |
Senior Notes | IGC | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 7.08% |
Short-term Borrowings and Lon_4
Short-term Borrowings and Long-term Debt - Debt Transactions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
General Mortgage Bonds | Houston Electric | |
Debt Instrument [Line Items] | |
Principal amount of debt issued | $ 1,600 |
Senior Notes and Term Loan | CERC Corp | |
Debt Instrument [Line Items] | |
Principal amount of debt issued | 1,000 |
Senior Note and GMBs | |
Debt Instrument [Line Items] | |
Principal amount of debt issued | 2,600 |
General Mortgage Bonds 3.00% Due 2032 | General Mortgage Bonds | Houston Electric | |
Debt Instrument [Line Items] | |
Principal amount of debt issued | $ 300 |
Debt instrument interest rate (as a percent) | 3% |
General Mortgage Bonds 3.60% Due 2052 | General Mortgage Bonds | Houston Electric | |
Debt Instrument [Line Items] | |
Principal amount of debt issued | $ 500 |
Debt instrument interest rate (as a percent) | 3.60% |
General Mortgage Bonds 4.45% Due 2032 | General Mortgage Bonds | Houston Electric | |
Debt Instrument [Line Items] | |
Principal amount of debt issued | $ 500 |
Debt instrument interest rate (as a percent) | 4.45% |
General Mortgage Bonds 4.85% Due 2052 | General Mortgage Bonds | Houston Electric | |
Debt Instrument [Line Items] | |
Principal amount of debt issued | $ 300 |
Debt instrument interest rate (as a percent) | 4.85% |
CERC Senior notes 4.40% due 2032 | Senior Notes | CERC Corp | |
Debt Instrument [Line Items] | |
Principal amount of debt issued | $ 500 |
Debt instrument interest rate (as a percent) | 4.40% |
Proceeds from issuance of long-term debt, net of discounts and issuance expenses and fees | $ 495 |
CERC Term Loan due 2023 | Term Loan | CERC Corp | |
Debt Instrument [Line Items] | |
Principal amount of debt issued | 500 |
Proceeds from issuance of long-term debt, net of discounts and issuance expenses and fees | $ 500 |
CERC Term Loan due 2023 | Term Loan | CERC Corp | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Adjustment to basis spread (as a percent) | 0.10% |
CERC Term Loan due 2023 | Term Loan | CERC Corp | Secured Overnight Financing Rate | |
Debt Instrument [Line Items] | |
Basis spread (as a percent) | 0.70% |
General Mortgage Bonds Issued In February 2022 | General Mortgage Bonds | Houston Electric | |
Debt Instrument [Line Items] | |
Proceeds from issuance of long-term debt, net of discounts and issuance expenses and fees | $ 784 |
General Mortgage Bonds Issued In September 2022 | General Mortgage Bonds | Houston Electric | |
Debt Instrument [Line Items] | |
Proceeds from issuance of long-term debt, net of discounts and issuance expenses and fees | $ 789 |
Short-term Borrowings and Lon_5
Short-term Borrowings and Long-term Debt - Narrative (Details) | 12 Months Ended | |||||||||
Feb. 16, 2023 USD ($) | Jan. 17, 2023 USD ($) | Dec. 06, 2022 USD ($) credit_facility | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) credit_facility | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 05, 2022 USD ($) | Sep. 06, 2022 USD ($) | May 27, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Gain (loss) on early extinguishment of debt | $ 47,000,000 | $ 53,000,000 | $ 2,000,000 | |||||||
Number of credit facilities | credit_facility | 3 | 4 | ||||||||
Long-term debt | $ 14,836,000,000 | 15,558,000,000 | ||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans | 0 | 0 | ||||||||
Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans | 11,000,000 | 11,000,000 | ||||||||
Vectren | Maximum | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans | 20,000,000 | |||||||||
SIGECO | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans | 1,000,000 | |||||||||
CERC Corp | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gain (loss) on early extinguishment of debt | 0 | 11,000,000 | $ 2,000,000 | |||||||
Long-term debt | 3,495,000,000 | 5,552,000,000 | ||||||||
CERC Corp | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans | 0 | 0 | ||||||||
CERC Corp | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans | 0 | 0 | ||||||||
VUH | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility restated amount | $ 400,000,000 | |||||||||
Houston Electric | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gain (loss) on early extinguishment of debt | (2,000,000) | |||||||||
Long-term debt | 6,197,000,000 | 4,975,000,000 | ||||||||
Additional first mortgage bonds and general mortgage bonds that could be issued | 4,900,000,000 | |||||||||
Houston Electric | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans | 0 | 0 | ||||||||
Houston Electric | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans | 0 | 0 | ||||||||
Houston Electric | Bonds General Mortgage Due Range 1 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Secured debt amount with asset liens | $ 6,200,000,000 | |||||||||
Houston Electric | Bonds General Mortgage Due Range 1 | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate (as a percent) | 6.95% | |||||||||
Houston Electric | Bonds Pollution Control Due | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Secured debt amount with asset liens | $ 68,000,000 | |||||||||
Percentage of property additions | 70% | |||||||||
Southern Indiana Gas and Electric | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 11,000,000 | |||||||||
Debt instrument, redemption price (as a percent) | 100% | |||||||||
SIGECO | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of property additions | 60% | |||||||||
Long-term debt, gross | $ 288,000,000 | |||||||||
Additional debt issuable | 1,400,000,000 | |||||||||
SIGECO | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans | 0 | 0 | ||||||||
SIGECO | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loans | 0 | $ 0 | ||||||||
Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 3,750,000,000 | $ 4,000,000,000 | ||||||||
Credit Facility | Southern Indiana Gas and Electric | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 250,000,000 | |||||||||
CERC Corp. Senior Notes | CERC Corp | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount of debt issued | $ 302,000,000 | |||||||||
VUH PPNs | VUH | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount of debt issued | $ 302,000,000 | |||||||||
Debt instrument interest rate (as a percent) | 6.10% | |||||||||
VUHI PPNs | VUH | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 302,000,000 | |||||||||
CERC Senior Notes 6.10% due 2035 | CERC Corp | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount of debt issued | $ 75,000,000 | $ 75,000,000 | ||||||||
Debt instrument interest rate (as a percent) | 6.10% | |||||||||
CERC Term Loan Due 2024 | CERC Corp | Term Loan | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount of debt issued | $ 500,000,000 | |||||||||
Proceeds from issuance of debt | $ 500,000,000 | |||||||||
CERC Term Loan Due 2024 | CERC Corp | Term Loan | Subsequent Event | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread (as a percent) | 0.85% | |||||||||
Adjustment to basis spread (as a percent) | 0.10% |
Short-term Borrowings and Lon_6
Short-term Borrowings and Long-term Debt - Debt Repayments and Redemptions (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Jan. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | |||||
Principal payments | $ 220 | ||||
Senior Notes | CERC Corp | CERC Senior Notes Floating Rate due 2023 | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread (as a percent) | 0.50% | ||||
General Mortgage Bonds | Houston Electric | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 1,600 | ||||
Long-term Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | 1,530 | ||||
Long-term Debt | CERC Corp | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | 425 | ||||
Long-term Debt | Houston Electric | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | 500 | ||||
Long-term Debt | Senior Notes | CNP Senior Note 3.85% Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 250 | ||||
Debt instrument interest rate (as a percent) | 3.85% | ||||
Debt instrument, redemption price (as a percent) | 100% | ||||
Debt, accrued and unpaid interest | $ 2 | ||||
Debt instrument, unamortized premium | 7 | ||||
Repayments of senior debt | $ 260 | ||||
Write off of deferred debt issuance cost | 1 | ||||
Long-term Debt | Senior Notes | CNP Senior Notes 4.25% Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 350 | 350 | |||
Debt instrument interest rate (as a percent) | 4.25% | ||||
Outstanding debt balance | 500 | ||||
Debt instrument, redemption price (as a percent) | 100% | ||||
Debt, accrued and unpaid interest | 6 | ||||
Debt instrument, unamortized premium | 34 | ||||
Repayments of senior debt | $ 393 | ||||
Write off of deferred debt issuance cost | $ 3 | ||||
Long-term Debt | Senior Notes | CERC Corp | CERC Senior Notes Floating Rate due 2023 | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 425 | ||||
Outstanding debt balance | $ 1,000 | ||||
Debt instrument, redemption price (as a percent) | 100% | ||||
Long-term Debt | General Mortgage Bonds | Houston Electric | General Mortgage Bonds 2.25% Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 300 | ||||
Debt instrument interest rate (as a percent) | 2.25% | ||||
Long-term Debt | General Mortgage Bonds | Houston Electric | General Mortgage Bonds 5.60% Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 200 | ||||
Debt instrument interest rate (as a percent) | 5.60% | ||||
Outstanding debt balance | 200 | ||||
Debt, accrued and unpaid interest | 3 | ||||
Debt instrument, unamortized premium | $ 2 | ||||
Repayments of senior debt | $ 205 | ||||
Long-term Debt | First Mortgage Bonds | CNP First Mortgage Bonds 0.82% Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 5 | ||||
Debt instrument interest rate (as a percent) | 0.82% |
Short-term Borrowings and Lon_7
Short-term Borrowings and Long-term Debt - Schedule of Revolving Credit Facilities (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) day | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||
Size of credit facility | $ 4,000 | $ 4,000 |
Number of days until commercial paper maturity | day | 60 | |
Houston Electric | ||
Debt Instrument [Line Items] | ||
Size of credit facility | $ 300 | 300 |
CERC Corp | ||
Debt Instrument [Line Items] | ||
Size of credit facility | $ 1,050 | 900 |
Number of days until commercial paper maturity | day | 30 | |
SIGECO | ||
Debt Instrument [Line Items] | ||
Size of credit facility | $ 250 | 0 |
Line of Credit | Houston Electric | ||
Debt Instrument [Line Items] | ||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | 67.50% | |
Ratio of indebtedness to net capital | 0.544 | |
Line of Credit | CERC Corp | ||
Debt Instrument [Line Items] | ||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | 65% | |
Ratio of indebtedness to net capital | 0.499 | |
Line of Credit | SIGECO | ||
Debt Instrument [Line Items] | ||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | 65% | |
Ratio of indebtedness to net capital | 0.452 | |
Line of Credit | London Interbank Offered Rate (LIBOR) | Houston Electric | ||
Debt Instrument [Line Items] | ||
Basis spread (as a percent) | 1.25% | |
Line of Credit | London Interbank Offered Rate (LIBOR) | CERC Corp | ||
Debt Instrument [Line Items] | ||
Basis spread (as a percent) | 1.125% | |
Line of Credit | London Interbank Offered Rate (LIBOR) | SIGECO | ||
Debt Instrument [Line Items] | ||
Basis spread (as a percent) | 1.125% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Loans | $ 0 | 0 |
Revolving Credit Facility | Houston Electric | ||
Debt Instrument [Line Items] | ||
Loans | 0 | 0 |
Revolving Credit Facility | CERC Corp | ||
Debt Instrument [Line Items] | ||
Loans | 0 | 0 |
Revolving Credit Facility | SIGECO | ||
Debt Instrument [Line Items] | ||
Loans | 0 | 0 |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Loans | 11 | 11 |
Letter of Credit | Houston Electric | ||
Debt Instrument [Line Items] | ||
Loans | 0 | 0 |
Letter of Credit | CERC Corp | ||
Debt Instrument [Line Items] | ||
Loans | 0 | 0 |
Letter of Credit | SIGECO | ||
Debt Instrument [Line Items] | ||
Loans | 0 | 0 |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Loans | 2,575 | 2,649 |
Commercial paper | Houston Electric | ||
Debt Instrument [Line Items] | ||
Loans | $ 0 | $ 0 |
Weighted average interest rate (as a percent) | 0% | 0% |
Commercial paper | CERC Corp | ||
Debt Instrument [Line Items] | ||
Loans | $ 805 | $ 899 |
Weighted average interest rate (as a percent) | 4.67% | 0.26% |
Commercial paper | SIGECO | ||
Debt Instrument [Line Items] | ||
Loans | $ 0 | $ 0 |
Weighted average interest rate (as a percent) | 0% | 0% |
Parent Company | ||
Debt Instrument [Line Items] | ||
Size of credit facility | $ 2,400 | $ 2,400 |
Parent Company | Line of Credit | ||
Debt Instrument [Line Items] | ||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | 65% | |
Ratio of indebtedness to net capital | 0.618 | |
Percentage on limitation of debt to total capitalization under covenant amended (in hundredths) | 70% | |
Expected restoration costs | $ 100 | |
Consecutive period for system restoration costs to exceed $100 million (in months) | 12 | |
Parent Company | Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread (as a percent) | 1.50% | |
Parent Company | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Loans | $ 0 | 0 |
Parent Company | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Loans | 11 | 11 |
Parent Company | Commercial paper | ||
Debt Instrument [Line Items] | ||
Loans | $ 1,770 | $ 1,400 |
Weighted average interest rate (as a percent) | 4.71% | 0.34% |
VUH | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Size of credit facility | $ 0 | $ 400 |
Loans | 0 | 0 |
VUH | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Loans | 0 | 0 |
VUH | Commercial paper | ||
Debt Instrument [Line Items] | ||
Loans | $ 0 | $ 350 |
Weighted average interest rate (as a percent) | 0% | 0.21% |
Short-term Borrowings and Lon_8
Short-term Borrowings and Long-term Debt - Schedule of Maturities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Houston Electric | |
Debt Instrument [Line Items] | |
2023 | $ 156 |
2024 | 161 |
2025 | 0 |
2026 | 300 |
2027 | 300 |
CERC Corp | |
Debt Instrument [Line Items] | |
2023 | 1,832 |
2024 | 0 |
2025 | 10 |
2026 | 60 |
2027 | 831 |
Long term Debt Excluding ZENS | |
Debt Instrument [Line Items] | |
2023 | 1,999 |
2024 | 1,384 |
2025 | 51 |
2026 | 860 |
2027 | 2,901 |
Securitization Bonds | |
Debt Instrument [Line Items] | |
2023 | 156 |
2024 | 161 |
2025 | 0 |
2026 | 0 |
2027 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred income tax expense (benefit): | |||
Total deferred expense (benefit) | $ 20 | $ 213 | $ (429) |
Total income tax expense (benefit) | 360 | 110 | 80 |
Houston Electric | |||
Current income tax expense (benefit): | |||
Federal | 23 | 22 | 76 |
State | 16 | 22 | 19 |
Total current expense (benefit) | 39 | 44 | 95 |
Deferred income tax expense (benefit): | |||
Federal | 86 | 31 | (42) |
Federal | 23 | 22 | 76 |
State | 0 | 1 | 0 |
Total deferred expense (benefit) | 86 | 32 | (42) |
Total income tax expense (benefit) | 125 | 76 | 53 |
CERC Corp | |||
Deferred income tax expense (benefit): | |||
Total deferred expense (benefit) | 178 | 101 | 113 |
Total income tax expense (benefit) | 236 | 76 | 117 |
Continuing Operations | |||
Current income tax expense (benefit): | |||
Federal | 294 | 0 | (36) |
State | 46 | (28) | 32 |
Total current expense (benefit) | 340 | (28) | (4) |
Deferred income tax expense (benefit): | |||
Federal | 16 | 78 | 63 |
Federal | 294 | 0 | (36) |
State | 4 | 60 | 21 |
Total deferred expense (benefit) | 20 | 138 | 84 |
Total income tax expense (benefit) | 360 | 110 | 80 |
Continuing Operations | CERC Corp | |||
Current income tax expense (benefit): | |||
Federal | 30 | 0 | 0 |
State | 28 | (25) | 2 |
Total current expense (benefit) | 58 | (25) | 2 |
Deferred income tax expense (benefit): | |||
Federal | 164 | 67 | 42 |
Federal | 30 | 0 | 0 |
State | 14 | 34 | 73 |
Total deferred expense (benefit) | 178 | 101 | 115 |
Total income tax expense (benefit) | 236 | 76 | 117 |
Discontinued Operations | |||
Current income tax expense (benefit): | |||
Federal | 0 | 91 | 152 |
State | 0 | 35 | 28 |
Total current expense (benefit) | 0 | 126 | 180 |
Deferred income tax expense (benefit): | |||
Federal | 0 | 127 | (422) |
Federal | 0 | 91 | 152 |
State | 0 | (52) | (91) |
Total deferred expense (benefit) | 0 | 75 | (513) |
Total income tax expense (benefit) | 0 | 201 | (333) |
Discontinued Operations | CERC Corp | |||
Current income tax expense (benefit): | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Total current expense (benefit) | 0 | 0 | 0 |
Deferred income tax expense (benefit): | |||
Federal | 0 | 0 | 0 |
Federal | 0 | 0 | 0 |
State | 0 | 0 | (2) |
Total deferred expense (benefit) | 0 | 0 | (2) |
Total income tax expense (benefit) | $ 0 | $ 0 | $ (2) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 1,417 | $ 778 | $ 563 |
Increase (decrease) in tax expense resulting from: | |||
Total income tax expense (benefit) | $ 360 | $ 110 | $ 80 |
Houston Electric | |||
Other Tax Carryforward [Line Items] | |||
Effective tax rate (as a percent) | 20% | 17% | 14% |
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 635 | $ 457 | $ 387 |
Federal statutory income tax rate (as a percent) | 21% | 21% | 21% |
Expected federal income tax expense | $ 133 | $ 96 | $ 81 |
Increase (decrease) in tax expense resulting from: | |||
State income tax expense, net of federal income tax | 13 | 18 | 15 |
Excess deferred income tax amortization | (18) | (41) | (42) |
Other, net | (3) | 3 | (1) |
Total | (8) | (20) | (28) |
Total income tax expense (benefit) | $ 125 | $ 76 | $ 53 |
Effective tax rate (as a percent) | 20% | 17% | 14% |
CERC Corp | |||
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 961 | $ 466 | $ 382 |
Increase (decrease) in tax expense resulting from: | |||
Total income tax expense (benefit) | $ 236 | $ 76 | $ 117 |
Continuing Operations | |||
Other Tax Carryforward [Line Items] | |||
Effective tax rate (as a percent) | 25% | 14% | 14% |
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 1,417 | $ 778 | $ 563 |
Federal statutory income tax rate (as a percent) | 21% | 21% | 21% |
Expected federal income tax expense | $ 298 | $ 163 | $ 118 |
Increase (decrease) in tax expense resulting from: | |||
State income tax expense, net of federal income tax | 46 | 63 | 40 |
State law change, net of federal income tax | 0 | 23 | 0 |
State valuation allowance, net of federal income tax | 0 | (15) | 1 |
Excess deferred income tax amortization | (51) | (75) | (76) |
Goodwill Impairment | 84 | 0 | 39 |
Net operating loss carryback | 0 | 0 | (37) |
Other, net | (17) | (3) | (5) |
Total | 62 | (53) | (38) |
Total income tax expense (benefit) | $ 360 | $ 110 | $ 80 |
Effective tax rate (as a percent) | 25% | 14% | 14% |
Continuing Operations | CERC Corp | |||
Other Tax Carryforward [Line Items] | |||
Effective tax rate (as a percent) | 25% | 16% | 31% |
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 961 | $ 466 | $ 382 |
Federal statutory income tax rate (as a percent) | 21% | 21% | 21% |
Expected federal income tax expense | $ 202 | $ 98 | $ 80 |
Increase (decrease) in tax expense resulting from: | |||
State income tax expense, net of federal income tax | 35 | 31 | 59 |
State law change, net of federal income tax | 0 | 9 | 0 |
State valuation allowance, net of federal income tax | 0 | (15) | 1 |
Excess deferred income tax amortization | (28) | (30) | (29) |
Goodwill Impairment | 30 | 0 | 0 |
Other, net | (3) | 1 | 6 |
Total | 34 | (22) | 37 |
Total income tax expense (benefit) | $ 236 | $ 76 | $ 117 |
Effective tax rate (as a percent) | 25% | 16% | 31% |
Discontinued Operations | |||
Other Tax Carryforward [Line Items] | |||
Effective tax rate (as a percent) | 0% | 20% | 21% |
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 0 | $ 1,019 | $ (1,589) |
Federal statutory income tax rate (as a percent) | 0% | 21% | 21% |
Expected federal income tax expense | $ 0 | $ 214 | $ (334) |
Increase (decrease) in tax expense resulting from: | |||
State income tax expense, net of federal income tax | 0 | 14 | (60) |
State law change, net of federal income tax | 0 | 27 | 0 |
Goodwill Impairment | 0 | 0 | 25 |
Tax impact of sale of Energy Services and Infrastructure Services Disposal Groups | 0 | 0 | 30 |
Other, net | 0 | 0 | 6 |
Total | 0 | (13) | 1 |
Total income tax expense (benefit) | $ 0 | $ 201 | $ (333) |
Effective tax rate (as a percent) | 0% | 20% | 21% |
Discontinued Operations | CERC Corp | |||
Other Tax Carryforward [Line Items] | |||
Effective tax rate (as a percent) | 0% | 0% | 3% |
Income tax reconciliation [Abstract] | |||
Income (loss) before income taxes | $ 0 | $ 0 | $ (68) |
Federal statutory income tax rate (as a percent) | 0% | 0% | 21% |
Expected federal income tax expense | $ 0 | $ 0 | $ (14) |
Increase (decrease) in tax expense resulting from: | |||
State income tax expense, net of federal income tax | 0 | 0 | (2) |
Goodwill Impairment | 0 | 0 | 10 |
Other, net | 0 | 0 | 4 |
Total | 0 | 0 | 12 |
Total income tax expense (benefit) | $ 0 | $ 0 | $ (2) |
Effective tax rate (as a percent) | 0% | 0% | 3% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Benefits and compensation | $ 121 | $ 120 |
Regulatory liabilities | 378 | 396 |
Loss and credit carryforwards | 84 | 76 |
Asset retirement obligations | 95 | 130 |
Indexed debt securities derivative | 0 | 36 |
Investment in unconsolidated affiliates | 0 | 1 |
Other | 49 | 50 |
Valuation allowance | (10) | (11) |
Total deferred tax assets | 717 | 798 |
Deferred tax liabilities: | ||
Property, plant and equipment | 3,228 | 2,912 |
Regulatory assets | 601 | 741 |
Investment in ZENS and equity securities related to ZENS | 722 | 693 |
Investment in equity securities | 0 | 195 |
Other | 152 | 161 |
Total deferred tax liabilities | 4,703 | 4,702 |
Net deferred tax liabilities | 3,986 | 3,904 |
Houston Electric | ||
Deferred tax assets: | ||
Benefits and compensation | 10 | 13 |
Regulatory liabilities | 184 | 175 |
Asset retirement obligations | 6 | 9 |
Other | 13 | 10 |
Total deferred tax assets | 213 | 207 |
Deferred tax liabilities: | ||
Property, plant and equipment | 1,330 | 1,215 |
Regulatory assets | 112 | 114 |
Total deferred tax liabilities | 1,442 | 1,329 |
Net deferred tax liabilities | 1,229 | 1,122 |
CERC Corp | ||
Deferred tax assets: | ||
Benefits and compensation | 9 | 17 |
Regulatory liabilities | 151 | 181 |
Loss and credit carryforwards | 466 | 585 |
Asset retirement obligations | 86 | 118 |
Other | 25 | 30 |
Total deferred tax assets | 737 | 931 |
Deferred tax liabilities: | ||
Property, plant and equipment | 1,427 | 1,264 |
Regulatory assets | 381 | 536 |
Other | 191 | 159 |
Total deferred tax liabilities | 1,999 | 1,959 |
Net deferred tax liabilities | $ 1,262 | $ 1,028 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||
Deferred tax assets, valuation allowance | $ 10 | $ 11 |
Accrued penalties and interest | 28 | |
Unrecognized tax benefits that would impact effective tax rate | 26 | |
Accrued penalties and interest not included | 2 | |
State and Local Jurisdiction | ||
Business Acquisition [Line Items] | ||
Operating loss carryforwards | 1,100 | |
Deferred tax assets tax credit carryforwards | 17 | |
State and Local Jurisdiction | CERC Corp | ||
Business Acquisition [Line Items] | ||
Operating loss carryforwards | 827 | |
Deferred tax assets tax credit carryforwards | 17 | |
Domestic Tax Authority | CERC Corp | ||
Business Acquisition [Line Items] | ||
Deferred tax assets tax credit carryforwards | $ 1,800 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, excluding interest and penalties: | ||
Balance, beginning of year | $ 3 | $ 7 |
Increases related to tax positions of prior years | 26 | 0 |
Decreases related to tax positions of prior years | (3) | (4) |
Balance, end of year | $ 26 | $ 3 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended | ||||||
Feb. 10, 2023 USD ($) | Oct. 27, 2021 | Dec. 31, 2022 USD ($) gasManufacturingAndStorageSite ashPond lawsuit day surety_bond warranty_obligation | Jul. 05, 2022 MW | Jan. 31, 2022 MW | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Purchase Obligations | |||||||
Number of surety bond obligations outstanding | surety_bond | 66 | ||||||
Performance guarantee obligations outstanding face amount | $ 646 | ||||||
Percentage of work yet to be completed on projects with open surety bonds | 37% | ||||||
Number of warranty obligations outstanding | warranty_obligation | 34 | ||||||
Warranty obligations outstanding face amount | $ 521 | ||||||
Energy savings commitments not guaranteed | 1,400 | ||||||
Maximum exposure amount | $ 527 | ||||||
Number of coal ash ponds owned | ashPond | 3 | ||||||
Asset retirement obligation | $ 610 | $ 659 | $ 664 | ||||
Subsequent Event | |||||||
Purchase Obligations | |||||||
Estimated project costs | $ 50 | ||||||
F.B. Culley | |||||||
Purchase Obligations | |||||||
Number of coal ash ponds owned | ashPond | 2 | ||||||
A.B. Brown | |||||||
Purchase Obligations | |||||||
Number of coal ash ponds owned | ashPond | 1 | ||||||
F.B. Culley East | |||||||
Purchase Obligations | |||||||
Number of coal ash ponds owned | ashPond | 1 | ||||||
Indiana Gas Service Territory | |||||||
Purchase Obligations | |||||||
Environmental remediation number of sites with potential remedial responsibility | gasManufacturingAndStorageSite | 26 | ||||||
SIGECO | |||||||
Purchase Obligations | |||||||
Environmental remediation number of sites with potential remedial responsibility | gasManufacturingAndStorageSite | 5 | ||||||
February 2021 Winter Storm Event | Loss from Catastrophes | |||||||
Purchase Obligations | |||||||
Number of pending lawsuits | lawsuit | 250 | ||||||
CERC Corp | |||||||
Purchase Obligations | |||||||
Asset retirement obligation | $ 420 | 479 | 514 | ||||
Houston Electric | |||||||
Purchase Obligations | |||||||
Asset retirement obligation | 36 | $ 42 | $ 43 | ||||
Indiana Electric | |||||||
Purchase Obligations | |||||||
Asset retirement obligation | 104 | ||||||
Indiana Electric | Minimum | |||||||
Purchase Obligations | |||||||
Estimated capital expenditure to clean ash ponds | 60 | ||||||
Indiana Electric | Maximum | |||||||
Purchase Obligations | |||||||
Estimated capital expenditure to clean ash ponds | $ 80 | ||||||
CenterPoint Energy, Utility Holding and Houston Electric | February 2021 Winter Storm Event | Loss from Catastrophes | |||||||
Purchase Obligations | |||||||
Number of pending lawsuits | lawsuit | 160 | ||||||
Utility Holding, LLC | February 2021 Winter Storm Event | |||||||
Purchase Obligations | |||||||
Number of pending lawsuits | day | 20 | ||||||
Posey Solar | |||||||
Purchase Obligations | |||||||
Solar array asset, useful life | 35 years | ||||||
Solar array generating capacity (in Megawatts) | MW | 191 | ||||||
Pike Solar | |||||||
Purchase Obligations | |||||||
Solar array generating capacity (in Megawatts) | MW | 130 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Obligations (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Jan. 31, 2022 MW | |
Posey Solar | ||
Purchase Obligations | ||
Solar array generating capacity (in Megawatts) | MW | 191 | |
Natural Gas and Coal Supply | ||
Purchase Obligations | ||
2023 | $ 1,014 | |
2024 | 887 | |
2025 | 648 | |
2026 | 488 | |
2027 | 421 | |
2028 and beyond | 2,070 | |
Natural Gas and Coal Supply | CERC Corp | ||
Purchase Obligations | ||
2023 | 894 | |
2024 | 827 | |
2025 | 599 | |
2026 | 445 | |
2027 | 377 | |
2028 and beyond | 1,954 | |
Technology Hardware and Software | ||
Purchase Obligations | ||
2023 | 151 | |
2024 | 208 | |
2025 | 681 | |
2026 | 45 | |
2027 | 86 | |
2028 and beyond | $ 453 | |
Technology Hardware and Software | Minimum | Capital Addition Purchase Commitments | ||
Purchase Obligations | ||
Purchase obligation term | 15 years | |
Technology Hardware and Software | Maximum | Capital Addition Purchase Commitments | ||
Purchase Obligations | ||
Purchase obligation term | 25 years |
Commitments and Contingencies_3
Commitments and Contingencies - Estimated Range of Possible Remediation Costs (Details) - Minnesota and Indiana Gas Service Territories $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Loss Contingencies [Line Items] | |
Amount accrued for remediation | $ 16 |
Minimum | |
Loss Contingencies [Line Items] | |
Site Contingency Loss Exposure | $ 12 |
Years to resolve contingency | 5 years |
Maximum | |
Loss Contingencies [Line Items] | |
Site Contingency Loss Exposure | $ 51 |
Years to resolve contingency | 50 years |
CERC Corp | |
Loss Contingencies [Line Items] | |
Amount accrued for remediation | $ 14 |
CERC Corp | Minimum | |
Loss Contingencies [Line Items] | |
Site Contingency Loss Exposure | $ 11 |
Years to resolve contingency | 5 years |
CERC Corp | Maximum | |
Loss Contingencies [Line Items] | |
Site Contingency Loss Exposure | $ 44 |
Years to resolve contingency | 50 years |
Earnings Per Share (CenterPoi_3
Earnings Per Share (CenterPoint Energy) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Recognition of beneficial conversion feature | $ 0 | $ 0 | $ 32 |
Numerator: | |||
Income From Continuing Operations Before Income Taxes | 1,057 | 668 | 483 |
Less: Preferred stock dividend requirement | 49 | 95 | 176 |
Less: Amortization of beneficial conversion feature | 0 | 0 | 32 |
Income (loss) available to common shareholders from continuing operations - basic | 1,008 | 573 | 307 |
Income (loss) available to common shareholders from continuing operations - diluted | 1,008 | 573 | 307 |
Income (loss) available to common shareholders from discontinued operations - basic | 0 | 818 | (1,256) |
Income (loss) available to common shareholders from discontinued operations - diluted | 0 | 818 | (1,256) |
Net income attributable to Enable Common Units | 1,008 | 1,391 | (949) |
Income (loss) available to common shareholders - diluted | $ 1,008 | $ 1,391 | $ (949) |
Denominator: | |||
Weighted average common shares outstanding - basic | 629,415 | 592,933 | 531,031 |
Weighted average common shares outstanding - diluted | 632,346 | 609,938 | 531,031 |
Earnings (loss) per common share: | |||
Basic earnings per common share - continuing operations (in dollars per share) | $ 1.60 | $ 0.97 | $ 0.58 |
Basic earnings (loss) per common share - discontinued operations (in dollars per share) | 0 | 1.38 | (2.37) |
Basic Earnings (Loss) Per Common Share (in dollars per share) | 1.60 | 2.35 | (1.79) |
Basic Earnings (Loss) Per Common Share | |||
Diluted earnings per common share - continuing operations (in dollars per share) | 1.59 | 0.94 | 0.58 |
Diluted earnings (loss) per common share - discontinued operations (in dollars per share) | 0 | 1.34 | (2.37) |
Diluted Earnings (Loss) Per Common Share (in dollars per share) | $ 1.59 | $ 2.28 | $ (1.79) |
Restricted stock | |||
Denominator: | |||
Restricted stock | 2,931 | 5,181 | 0 |
Anti-dilutive Incremental Shares Excluded from Denominator for Diluted Earnings (Loss) Computation: | |||
Amount of antidilutive securities excluded from computation of earnings per share | 0 | 0 | 3,690 |
Series B Preferred Stock | |||
Numerator: | |||
Less: Preferred stock dividend requirement | $ 49 | $ 95 | $ 144 |
Anti-dilutive Incremental Shares Excluded from Denominator for Diluted Earnings (Loss) Computation: | |||
Amount of antidilutive securities excluded from computation of earnings per share | 0 | 23,906 | 35,922 |
Series C Preferred Stock | |||
Denominator: | |||
Preferred Stock | 0 | 11,824 | 0 |
Anti-dilutive Incremental Shares Excluded from Denominator for Diluted Earnings (Loss) Computation: | |||
Amount of antidilutive securities excluded from computation of earnings per share | 0 | 0 | 23,807 |
Reportable Segments - Financial
Reportable Segments - Financial Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 9,321 | $ 8,352 | $ 7,418 |
Depreciation and Amortization | 1,288 | 1,316 | 1,189 |
Interest Expense | (511) | (508) | (501) |
Income Tax Expense (Benefit) | 360 | 110 | 80 |
Net income (loss) | 1,057 | 1,486 | (773) |
Total Assets | 38,546 | 37,679 | |
Expenditures for Long-Lived Assets | 4,418 | 3,399 | 2,536 |
Interest income from securitization bonds | 1 | 1 | 1 |
Total Regulatory Assets | 3,578 | 3,716 | |
Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 9,321 | 8,352 | 7,418 |
Depreciation and Amortization | 1,288 | 1,316 | 1,189 |
Interest income | 3 | 3 | 4 |
Interest Expense | (524) | (529) | (529) |
Income Tax Expense (Benefit) | 360 | 110 | 80 |
Income (loss) from continuing operations | 1,057 | 668 | 483 |
Total Assets | 38,546 | 35,341 | |
Expenditures for Long-Lived Assets | 4,415 | 3,228 | 2,515 |
Discontinued Operations | |||
Segment Reporting Information [Line Items] | |||
Income Tax Expense (Benefit) | 0 | 201 | (333) |
Net income (loss) from Discontinued Operations | 0 | 818 | (1,256) |
Total Assets | 0 | 2,338 | |
Expenditures for Long-Lived Assets | 3 | 171 | 21 |
Electric | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 4,108 | 3,763 | 3,470 |
Natural Gas | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 4,946 | 4,336 | 3,631 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 267 | 253 | 317 |
Operating Segments | Electric | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 4,108 | 3,763 | 3,470 |
Depreciation and Amortization | 793 | 775 | 684 |
Interest income | 4 | 0 | 3 |
Interest Expense | (235) | (226) | (220) |
Income Tax Expense (Benefit) | 147 | 95 | 72 |
Net income (loss) | 603 | 475 | 230 |
Total Assets | 19,024 | 16,548 | |
Expenditures for Long-Lived Assets | 2,611 | 2,008 | 1,281 |
Operating Segments | Natural Gas | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 4,946 | 4,336 | 3,631 |
Depreciation and Amortization | 466 | 527 | 491 |
Interest income | 2 | 1 | 8 |
Interest Expense | (137) | (141) | (153) |
Income Tax Expense (Benefit) | 243 | 80 | 125 |
Net income (loss) | 492 | 403 | 278 |
Total Assets | 18,043 | 16,270 | |
Expenditures for Long-Lived Assets | 1,697 | 1,178 | 1,139 |
Operating Segments | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 267 | 253 | 317 |
Depreciation and Amortization | 29 | 14 | 14 |
Interest income | 59 | 118 | 104 |
Interest Expense | (214) | (278) | (267) |
Income Tax Expense (Benefit) | (30) | (65) | (117) |
Net income (loss) | (38) | (210) | (25) |
Total Assets | 1,479 | 2,523 | |
Expenditures for Long-Lived Assets | 107 | 42 | 95 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Depreciation and Amortization | 0 | 0 | 0 |
Interest income | (62) | (116) | (111) |
Interest Expense | 62 | 116 | 111 |
Income Tax Expense (Benefit) | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | $ 0 |
Benefit obligations | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Total Regulatory Assets | $ 405 | $ 427 |
Reportable Segments - Revenues
Reportable Segments - Revenues From Major External Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 9,321 | $ 8,352 | $ 7,418 |
Houston Electric | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,412 | 3,134 | 2,911 |
Affiliates of NRG | Houston Electric | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,046 | 905 | 749 |
Affiliates of Vistra Energy Corp. | Houston Electric | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 489 | $ 410 | $ 404 |
Reportable Segments - Revenue_2
Reportable Segments - Revenues by Products and Services (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 9,321 | $ 8,352 | $ 7,418 |
CenterPoint Energy | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 9,321 | 8,352 | 7,418 |
CenterPoint Energy | Electric delivery | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,438 | 3,158 | 2,941 |
CenterPoint Energy | Retail electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 630 | 559 | 515 |
CenterPoint Energy | Wholesale electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 40 | 46 | 14 |
CenterPoint Energy | Retail gas sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 4,759 | 4,157 | 3,462 |
CenterPoint Energy | Gas transportation and processing | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 12 | 12 | 15 |
CenterPoint Energy | Energy products and services | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 442 | 420 | 471 |
Houston Electric | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,412 | 3,134 | 2,911 |
Houston Electric | Electric delivery | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,412 | 3,134 | 2,911 |
Houston Electric | Retail electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Houston Electric | Wholesale electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Houston Electric | Retail gas sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Houston Electric | Gas transportation and processing | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Houston Electric | Energy products and services | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
CERC Corp | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 4,800 | 4,200 | 3,531 |
CERC Corp | Electric delivery | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
CERC Corp | Retail electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
CERC Corp | Wholesale electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
CERC Corp | Retail gas sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 4,613 | 4,021 | 3,362 |
CERC Corp | Gas transportation and processing | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 12 | 12 | 15 |
CERC Corp | Energy products and services | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 175 | $ 167 | $ 154 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Interest, net of capitalized interest | $ 480 | $ 489 | $ 471 | |
Income tax payments (refunds), net | 421 | (46) | 143 | |
Accounts payable related to capital expenditures | 335 | 370 | 153 | |
ROU assets obtained in exchange for lease liabilities | 7 | 2 | 15 | |
Recognition of beneficial conversion feature | 0 | 0 | 32 | |
Amortization of beneficial conversion feature | 0 | 0 | (32) | |
Restricted cash included in Prepaid expenses and other current assets | $ 74 | $ 230 | ||
Restricted Cash and Cash Equivalents, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current | ||
Restricted cash included in Prepaid expenses and other current assets | $ 17 | $ 24 | ||
Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows | 91 | 254 | 167 | $ 271 |
Energy Transfer Common Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 0 | 1,672 | 0 | |
Energy Transfer Series G Preferred Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 0 | 385 | 0 | |
Houston Electric | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Interest, net of capitalized interest | 223 | 208 | 201 | |
Income tax payments (refunds), net | 142 | 20 | 65 | |
Accounts payable related to capital expenditures | 168 | 261 | 102 | |
Fair value of units received | 38 | 0 | 0 | |
ROU assets obtained in exchange for lease liabilities | 6 | 0 | 1 | |
Recognition of beneficial conversion feature | 0 | 0 | 0 | |
Amortization of beneficial conversion feature | 0 | 0 | 0 | |
Restricted cash included in Prepaid expenses and other current assets | 75 | 214 | ||
Restricted cash included in Prepaid expenses and other current assets | 13 | 19 | ||
Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows | 88 | 233 | 154 | 235 |
Houston Electric | Energy Transfer Common Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 0 | 0 | 0 | |
Houston Electric | Energy Transfer Series G Preferred Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 0 | 0 | 0 | |
CERC Corp | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Interest, net of capitalized interest | 104 | 130 | 143 | |
Income tax payments (refunds), net | 37 | (7) | (5) | |
Accounts payable related to capital expenditures | 139 | 128 | 66 | |
Fair value of units received | 54 | 0 | 0 | |
ROU assets obtained in exchange for lease liabilities | 0 | 0 | 5 | |
Recognition of beneficial conversion feature | 0 | 0 | 0 | |
Amortization of beneficial conversion feature | 0 | 0 | 0 | |
Restricted cash included in Prepaid expenses and other current assets | 0 | 15 | ||
Restricted cash included in Prepaid expenses and other current assets | 0 | 0 | ||
Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows | 0 | 15 | 6 | $ 9 |
CERC Corp | Energy Transfer Common Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 0 | 0 | 0 | |
CERC Corp | Energy Transfer Series G Preferred Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 0 | 0 | $ 0 | |
Bond Companies | Houston Electric | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Restricted cash included in Prepaid expenses and other current assets | $ 75 | $ 92 |
Related Party Transactions (H_3
Related Party Transactions (Houston Electric and CERC) - Schedule of Money Pool Investments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Houston Electric | Investments | ||
Related Party Transaction [Line Items] | ||
Weighted average interest rate | 4.75% | 0.34% |
CERC Corp | Investments | ||
Related Party Transaction [Line Items] | ||
Weighted average interest rate | 4.75% | 0.34% |
Accounts and notes receivable (payable) - affiliate companies | Houston Electric | ||
Related Party Transaction [Line Items] | ||
Money pool investments (borrowings) | $ (642) | $ (512) |
Accounts and notes receivable (payable) - affiliate companies | CERC Corp | ||
Related Party Transaction [Line Items] | ||
Money pool investments (borrowings) | $ 0 | $ (224) |
Related Party Transactions (H_4
Related Party Transactions (Houston Electric and CERC) - Schedule of Affiliated-Related Net Interest Income (Expense) (Details) - Other Nonoperating Income (Expense) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Houston Electric | |||
Related Party Transaction [Line Items] | |||
Interest income (expense), net | $ 0 | $ 0 | $ 0 |
CERC Corp | |||
Related Party Transaction [Line Items] | |||
Interest income (expense), net | $ (18) | $ (38) | $ (35) |
Related Party Transactions (H_5
Related Party Transactions (Houston Electric and CERC) - Schedule of Amounts Charged For Services (Details) - Operation And Maintenance Expense - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Houston Electric | |||
Related Party Transaction [Line Items] | |||
Net affiliate service charges (billings) | $ 15 | $ (7) | $ (16) |
CERC Corp | |||
Related Party Transaction [Line Items] | |||
Net affiliate service charges (billings) | (15) | 7 | 16 |
CenterPoint Energy | Houston Electric | |||
Related Party Transaction [Line Items] | |||
Corporate service charges | 167 | 189 | 197 |
CenterPoint Energy | CERC Corp | |||
Related Party Transaction [Line Items] | |||
Corporate service charges | $ 237 | $ 257 | $ 232 |
Related Party Transactions (H_6
Related Party Transactions (Houston Electric and CERC) - Schedule of Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Houston Electric | |||
Related Party Transaction [Line Items] | |||
Cash dividends paid to parent | $ 316 | $ 0 | $ 551 |
Contribution to parent for sale of Arkansas and Oklahoma Natural Gas businesses | 0 | 0 | 0 |
Capital distribution to parent associated with the sale of CES | 38 | 0 | 0 |
Cash paid to parent for property, plant and equipment below | 65 | 0 | 0 |
Property, plant and equipment from parent | 103 | 0 | 36 |
Houston Electric | Discontinued Operations | |||
Related Party Transaction [Line Items] | |||
Capital distribution to parent associated with the sale of CES | 0 | 0 | 0 |
Houston Electric | Additional Paid-in-Capital | |||
Related Party Transaction [Line Items] | |||
Cash contribution from parent | 1,143 | 130 | 62 |
Net assets acquired in the Restructuring | 0 | 0 | 0 |
CERC Corp | |||
Related Party Transaction [Line Items] | |||
Cash dividends paid to parent | 124 | 0 | 128 |
Contribution to parent for sale of Arkansas and Oklahoma Natural Gas businesses | 720 | 0 | 0 |
Capital distribution to parent associated with the sale of CES | 54 | 0 | 0 |
Cash paid to parent for property, plant and equipment below | 61 | 0 | 0 |
Property, plant and equipment from parent | 115 | 0 | 23 |
CERC Corp | Discontinued Operations | |||
Related Party Transaction [Line Items] | |||
Capital distribution to parent associated with the sale of CES | 0 | 0 | 286 |
CERC Corp | Additional Paid-in-Capital | |||
Related Party Transaction [Line Items] | |||
Cash contribution from parent | 289 | 140 | 337 |
Net assets acquired in the Restructuring | 2,345 | 0 | 0 |
CERC Corp | Additional Paid-in-Capital | Discontinued Operations | |||
Related Party Transaction [Line Items] | |||
Contribution to parent for sale of Arkansas and Oklahoma Natural Gas businesses | $ 0 | $ 0 | $ 286 |
Leases (Details)
Leases (Details) $ in Millions | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2022 USD ($) MW | Dec. 31, 2021 USD ($) MW | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) MW | Mar. 31, 2020 USD ($) | |
Lease Disclosure [Line Items] | |||||
Operating lease income | $ 5 | $ 6 | |||
Disallowance of regulatory asset | 53 | $ 53 | |||
Lease, Cost [Abstract] | |||||
Operating lease cost | 6 | 8 | |||
Short-term lease cost | 167 | 119 | |||
Total lease cost | 173 | 127 | |||
Operating Leases, Lease Income [Abstract] | |||||
Operating lease income | 5 | 6 | |||
Variable lease income | 2 | 1 | |||
Total lease income | 7 | 7 | |||
Assets and Liabilities, Lessee [Abstract] | |||||
Operating ROU assets | 19 | 22 | 19 | ||
Finance ROU assets | 621 | 179 | 621 | ||
Total leased assets | 640 | 201 | 640 | ||
Current operating lease liability | 5 | 6 | 5 | ||
Non-current operating lease liability | 14 | 17 | 14 | ||
Total leased liabilities | $ 19 | $ 23 | $ 19 | ||
Weighted-average remaining lease term (in years) - operating leases | 4 years 3 months 18 days | 6 years 2 months 12 days | 4 years 3 months 18 days | ||
Weighted-average discount rate - operating leases (as a percent) | 3.80% | 3.10% | 3.80% | ||
Weighted-average remaining lease term (in years) - finance leases | 6 years 6 months | 7 years 6 months | 6 years 6 months | ||
Weighted-average discount rate - finance leases (as a percent) | 3.60% | 2.21% | 3.60% | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets | Other non-current assets | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, net | Property, Plant and Equipment, net | Property, Plant and Equipment, net | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other | Other | Other | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other | Other | Other | ||
Operating Lease Liabilities, Payments Due [Abstract] | |||||
2023 | $ 5 | $ 5 | |||
2024 | 5 | 5 | |||
2025 | 4 | 4 | |||
2026 | 4 | 4 | |||
2027 | 2 | 2 | |||
2028 and beyond | 1 | 1 | |||
Total lease payments | 21 | 21 | |||
Less: Interest | 2 | 2 | |||
Present value of lease liabilities | 19 | $ 23 | 19 | ||
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||||
2023 | 7 | 7 | |||
2024 | 7 | 7 | |||
2025 | 7 | 7 | |||
2026 | 7 | 7 | |||
2027 | 7 | 7 | |||
2028 and beyond | 159 | 159 | |||
Total lease payments to be received | 194 | 194 | |||
Other Information Related to Leases [Abstract] | |||||
Operating cash flows from operating leases included in the measurement of lease liabilities | 6 | ||||
Financing cash flows from finance leases included in the measurement of lease liabilities | 485 | 179 | $ 0 | ||
Level 2 | Energy Services Disposal Group | |||||
Other Information Related to Leases [Abstract] | |||||
Fair value of disposal group | $ 402 | ||||
Houston Electric | |||||
Lease Disclosure [Line Items] | |||||
Expenses associated with short-term lease | $ 103 | $ 20 | $ 103 | ||
Number of megawatts of mobile generation | MW | 505 | 505 | |||
Number of megawatts of mobile generation delivered | MW | 380 | 125 | 380 | ||
Cash payment | $ 485 | $ 179 | $ 664 | ||
Operating lease income | 1 | 1 | |||
Escrow deposit | 113 | 113 | |||
Expenses associated with long term lease | $ 60 | 1 | $ 60 | ||
Right to terminate, lease costs refunded (as a percent) | 75% | 75% | |||
Disallowance of reimbursement clause exercised | 85% | ||||
Disallowance of regulatory asset | $ 53 | $ 53 | |||
Lease, Cost [Abstract] | |||||
Operating lease cost | 1 | 1 | |||
Short-term lease cost | 166 | 118 | |||
Total lease cost | 167 | 119 | |||
Operating Leases, Lease Income [Abstract] | |||||
Operating lease income | 1 | 1 | |||
Variable lease income | 0 | 0 | |||
Total lease income | 1 | 1 | |||
Assets and Liabilities, Lessee [Abstract] | |||||
Operating ROU assets | 6 | 1 | 6 | ||
Finance ROU assets | 621 | 179 | 621 | ||
Total leased assets | 627 | 180 | 627 | ||
Current operating lease liability | 1 | 1 | 1 | ||
Non-current operating lease liability | 5 | 0 | 5 | ||
Total leased liabilities | $ 6 | $ 1 | $ 6 | ||
Weighted-average remaining lease term (in years) - operating leases | 4 years 9 months 18 days | 4 years 1 month 6 days | 4 years 9 months 18 days | ||
Weighted-average discount rate - operating leases (as a percent) | 4.01% | 2.86% | 4.01% | ||
Weighted-average remaining lease term (in years) - finance leases | 6 years 6 months | 7 years 6 months | 6 years 6 months | ||
Weighted-average discount rate - finance leases (as a percent) | 3.60% | 2.21% | 3.60% | ||
Operating Lease Liabilities, Payments Due [Abstract] | |||||
2023 | $ 1 | $ 1 | |||
2024 | 2 | 2 | |||
2025 | 2 | 2 | |||
2026 | 1 | 1 | |||
2027 | 1 | 1 | |||
2028 and beyond | 0 | 0 | |||
Total lease payments | 7 | 7 | |||
Less: Interest | 1 | 1 | |||
Present value of lease liabilities | 6 | $ 1 | 6 | ||
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||||
2023 | 1 | 1 | |||
2024 | 1 | 1 | |||
2025 | 1 | 1 | |||
2026 | 0 | 0 | |||
2027 | 0 | 0 | |||
2028 and beyond | 0 | 0 | |||
Total lease payments to be received | 3 | 3 | |||
Other Information Related to Leases [Abstract] | |||||
Operating cash flows from operating leases included in the measurement of lease liabilities | 1 | ||||
Financing cash flows from finance leases included in the measurement of lease liabilities | 485 | 179 | $ 0 | ||
CERC Corp | |||||
Lease Disclosure [Line Items] | |||||
Operating lease income | 3 | 3 | |||
Lease, Cost [Abstract] | |||||
Operating lease cost | 2 | 4 | |||
Short-term lease cost | 1 | 0 | |||
Total lease cost | 3 | 4 | |||
Operating Leases, Lease Income [Abstract] | |||||
Operating lease income | 3 | 3 | |||
Variable lease income | 0 | 0 | |||
Total lease income | 3 | 3 | |||
Assets and Liabilities, Lessee [Abstract] | |||||
Operating ROU assets | 5 | 12 | 5 | ||
Finance ROU assets | 0 | 0 | 0 | ||
Total leased assets | 5 | 12 | 5 | ||
Current operating lease liability | 2 | 2 | 2 | ||
Non-current operating lease liability | 4 | 11 | 4 | ||
Total leased liabilities | $ 6 | $ 13 | $ 6 | ||
Weighted-average remaining lease term (in years) - operating leases | 3 years 10 months 24 days | 6 years 6 months | 3 years 10 months 24 days | ||
Weighted-average discount rate - operating leases (as a percent) | 3.58% | 3.20% | 3.58% | ||
Weighted-average discount rate - finance leases (as a percent) | 0% | 0% | 0% | ||
Operating Lease Liabilities, Payments Due [Abstract] | |||||
2023 | $ 2 | $ 2 | |||
2024 | 1 | 1 | |||
2025 | 1 | 1 | |||
2026 | 2 | 2 | |||
2027 | 0 | 0 | |||
2028 and beyond | 0 | 0 | |||
Total lease payments | 6 | 6 | |||
Less: Interest | 0 | 0 | |||
Present value of lease liabilities | 6 | $ 13 | 6 | ||
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||||
2023 | 4 | 4 | |||
2024 | 4 | 4 | |||
2025 | 4 | 4 | |||
2026 | 4 | 4 | |||
2027 | 4 | 4 | |||
2028 and beyond | 156 | 156 | |||
Total lease payments to be received | 176 | $ 176 | |||
Other Information Related to Leases [Abstract] | |||||
Operating cash flows from operating leases included in the measurement of lease liabilities | 2 | ||||
Financing cash flows from finance leases included in the measurement of lease liabilities | $ 0 |
Uncategorized Items - cnp-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |