Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 22, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-31447 | |
Entity Registrant Name | CenterPoint Energy, Inc. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 74-0694415 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 641,966,980 | |
Entity Central Index Key | 0001130310 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
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 | Chicago Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | CNP | |
Security Exchange Name | CHX | |
Houston Electric | ||
Entity Information [Line Items] | ||
Entity File Number | 1-3187 | |
Entity Registrant Name | CenterPoint Energy Houston Electric, LLC | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 22-3865106 | |
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 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 Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0000048732 | |
Houston Electric | 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 | |
CERC | ||
Entity Information [Line Items] | ||
Entity File Number | 1-13265 | |
Entity Registrant Name | CenterPoint Energy Resources Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 76-0511406 | |
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 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 Common Stock, Shares Outstanding | 1,000 | |
Entity Central Index Key | 0001042773 | |
CERC | 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 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Utility revenues | $ 1,892 | $ 1,789 | $ 4,499 | $ 4,506 |
Non-utility revenues | 13 | 86 | 26 | 148 |
Total | 1,905 | 1,875 | 4,525 | 4,654 |
Expenses: | ||||
Utility natural gas, fuel and purchased power | 233 | 280 | 1,020 | 1,358 |
Non-utility cost of revenues, including natural gas | 0 | 57 | 1 | 97 |
Operation and maintenance | 678 | 679 | 1,387 | 1,342 |
Depreciation and amortization | 386 | 349 | 749 | 668 |
Taxes other than income taxes | 141 | 130 | 285 | 268 |
Total | 1,438 | 1,495 | 3,442 | 3,733 |
Operating Income | 467 | 380 | 1,083 | 921 |
Other Income (Expense): | ||||
Gain (loss) on equity securities | 19 | (31) | (64) | 7 |
Gain (loss) on indexed debt securities | (18) | 34 | 67 | (5) |
Loss on sale | 0 | (12) | 0 | (12) |
Interest expense and other finance charges | (212) | (165) | (410) | (313) |
Interest expense on Securitization Bonds | (5) | (2) | (11) | (4) |
Other income, net | 10 | 13 | 24 | 26 |
Total | (206) | (163) | (394) | (301) |
Income Before Income Taxes | 261 | 217 | 689 | 620 |
Income tax expense | 33 | 99 | 111 | 177 |
Net Income | 228 | 118 | 578 | 443 |
Income allocated to preferred shareholders | 0 | 12 | 0 | 24 |
Income Available to Common Shareholders | $ 228 | $ 106 | $ 578 | $ 419 |
Basic Earnings Per Common Share (in dollars per share) | $ 0.36 | $ 0.17 | $ 0.91 | $ 0.66 |
Diluted Earnings Per Common Share (in dollars per share) | $ 0.36 | $ 0.17 | $ 0.91 | $ 0.66 |
Weighted Average Common Shares Outstanding, Basic (in shares) | 640,754 | 631,057 | 636,491 | 630,685 |
Weighted Average Common Shares Outstanding, Diluted (in shares) | 641,816 | 633,005 | 637,893 | 633,030 |
Condensed Statements of Conso_2
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 228 | $ 118 | $ 578 | $ 443 |
Other comprehensive income (loss): | ||||
Adjustment to pension and other postretirement plans (net of tax of $-0-, $-0-, $-0-, and $-0-) | 2 | 0 | 1 | (1) |
Net deferred gain from cash flow hedges (net of tax of $1, $-0-, $1, and $-0-) | 1 | 0 | 4 | 0 |
Total | 3 | 0 | 5 | (1) |
Comprehensive income | 231 | 118 | 583 | 442 |
Income allocated to preferred shareholders | 0 | 12 | 0 | 24 |
Comprehensive income available to common shareholders | $ 231 | $ 106 | $ 583 | $ 418 |
Condensed Statements of Conso_3
Condensed Statements of Consolidated Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Adjustment to pension and other postretirement plans, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Net deferred gain from cash flow hedges, tax | $ 1 | $ 0 | $ 1 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 66 | $ 90 |
Investment in equity securities | 477 | 541 |
Accounts receivable, less allowance for credit losses | 633 | 710 |
Accrued unbilled revenues | 336 | 516 |
Natural gas and coal inventory | 133 | 197 |
Materials and supplies | 569 | 573 |
Taxes receivable | 186 | 94 |
Current assets held for sale | 1,325 | 0 |
Regulatory assets | 243 | 161 |
Prepaid expenses and other current assets | 112 | 145 |
Total current assets | 4,080 | 3,027 |
Property, Plant and Equipment, net: | ||
Property, plant and equipment | 40,589 | 40,396 |
Less: accumulated depreciation and amortization | 10,372 | 10,543 |
Property, plant and equipment, net | 30,217 | 29,853 |
Other Assets: | ||
Goodwill | 3,943 | 4,160 |
Regulatory assets | 2,525 | 2,513 |
Other non-current assets | 211 | 162 |
Total other assets | 6,679 | 6,835 |
Total Assets | 40,976 | 39,715 |
Current Liabilities: | ||
Short-term borrowings | 2 | 4 |
Current portion of VIE Securitization Bonds long-term debt | 94 | 178 |
Indexed debt, net | 4 | 5 |
Current portion of other long-term debt | 510 | 872 |
Indexed debt securities derivative | 538 | 605 |
Accounts payable | 1,057 | 917 |
Taxes accrued | 211 | 291 |
Interest accrued | 244 | 236 |
Dividends accrued | 0 | 126 |
Customer deposits | 95 | 111 |
Non-trading derivative liabilities | 4 | 9 |
Current liabilities held for sale | 218 | 0 |
Other current liabilities | 433 | 510 |
Total current liabilities | 3,410 | 3,864 |
Other Liabilities: | ||
Deferred income taxes, net | 4,324 | 4,079 |
Non-trading derivative liabilities | 1 | 3 |
Benefit obligations | 590 | 572 |
Regulatory liabilities | 3,039 | 3,208 |
Other non-current liabilities | 744 | 763 |
Total other liabilities | 8,698 | 8,625 |
Long-term Debt, net: | ||
VIE Securitization Bonds, net | 314 | 320 |
Other long-term debt, net | 18,200 | 17,239 |
Total long-term debt, net | 18,514 | 17,559 |
Commitments and Contingencies (Note 13) | ||
Shareholders’ Equity: | ||
Common stock | 6 | 6 |
Additional paid-in capital | 8,836 | 8,604 |
Retained earnings | 1,542 | 1,092 |
Accumulated other comprehensive loss | (30) | (35) |
Total shareholders’ equity | 10,354 | 9,667 |
Total Liabilities and Shareholders’ Equity | $ 40,976 | $ 39,715 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Cash and cash equivalents | $ 66 | $ 90 |
Accounts receivable, less allowance for credit losses | 633 | 710 |
Allowance for credit losses | (30) | (27) |
Accrued unbilled revenues, allowance for credit losses | (2) | 2 |
Prepaid expenses and other current assets | 112 | 145 |
Regulatory assets | $ 2,525 | $ 2,513 |
Common Stock [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, outstanding (in shares) | 641,953,090 | 631,225,829 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | $ 66 | $ 90 |
Accounts receivable, less allowance for credit losses | 28 | 21 |
Accrued unbilled revenues, after allowance for credit losses, current | 2 | 2 |
Prepaid expenses and other current assets | 13 | 15 |
Regulatory assets | $ 322 | $ 402 |
Condensed Statements of Conso_4
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities: | ||
Net income | $ 578 | $ 443 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 749 | 668 |
Deferred income taxes | 200 | 22 |
Loss on divestitures | 0 | 12 |
Loss (gain) on equity securities | 64 | (7) |
Loss (gain) on indexed debt securities | (67) | 5 |
Pension contributions | (3) | (4) |
Changes in other assets and liabilities: | ||
Accounts receivable and unbilled revenues, net | 188 | 647 |
Inventory | 52 | 142 |
Taxes receivable | (92) | 2 |
Accounts payable | (83) | (403) |
Net regulatory assets and liabilities | (366) | 1,022 |
Other current assets and liabilities | (93) | (120) |
Other non-current assets and liabilities | 21 | 48 |
Other operating activities, net | (34) | 5 |
Net cash provided by operating activities | 1,114 | 2,482 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (1,657) | (2,259) |
Proceeds from divestitures | 0 | 145 |
Other investing activities, net | 57 | (40) |
Net cash used in investing activities | (1,600) | (2,154) |
Cash Flows from Financing Activities: | ||
Decrease in short-term borrowings, net | (4) | (14) |
Payments of commercial paper, net | (623) | (920) |
Proceeds from long-term debt and term loans, net | 1,596 | 3,675 |
Payments of long-term debt and term loans, including make-whole premiums | (463) | (2,613) |
Payment of debt issuance costs | (12) | (28) |
Payment of dividends on Common Stock | (254) | (240) |
Payment of dividends on Preferred Stock | 0 | (24) |
Proceeds from issuance of Common Stock, net | 247 | 0 |
Other financing activities, net | (28) | (23) |
Net cash provided by (used in) financing activities | 459 | (187) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (27) | 141 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 109 | 91 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 82 | $ 232 |
Condensed Statements of Conso_5
Condensed Statements of Consolidated Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Cumulative Preferred Stock | Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance, beginning of period (in shares) at Dec. 31, 2022 | 1,000,000 | |||||
Balance, beginning of period at Dec. 31, 2022 | $ 790 | $ 6 | $ 8,568 | $ 709 | $ (31) | |
Balance, beginning of period (in shares) at Dec. 31, 2022 | 630,000,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances of common stock (in shares) | 0 | |||||
Issuances of Common Stock, net of issuance costs | $ 0 | 0 | ||||
Issuances related to benefit and investment plans (in shares) | 1,000,000 | |||||
Issuances related to benefit and investment plans | $ 0 | 2 | ||||
Net income | $ 443 | 443 | ||||
Common Stock dividends declared (see Note 18) | (120) | |||||
Other comprehensive income (loss) | (1) | |||||
Balance, end of period (in shares) at Jun. 30, 2023 | 1,000,000 | |||||
Balance, end of period at Jun. 30, 2023 | 10,366 | $ 790 | $ 6 | 8,570 | 1,032 | (32) |
Balance, end of period (in shares) at Jun. 30, 2023 | 631,000,000 | |||||
Balance, beginning of period (in shares) at Mar. 31, 2023 | 1,000,000 | |||||
Balance, beginning of period at Mar. 31, 2023 | $ 790 | $ 6 | 8,558 | 1,034 | (32) | |
Balance, beginning of period (in shares) at Mar. 31, 2023 | 631,000,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances of common stock (in shares) | 0 | |||||
Issuances of Common Stock, net of issuance costs | $ 0 | 0 | ||||
Issuances related to benefit and investment plans (in shares) | 0 | |||||
Issuances related to benefit and investment plans | $ 0 | 12 | ||||
Net income | 118 | 118 | ||||
Common Stock dividends declared (see Note 18) | (120) | |||||
Other comprehensive income (loss) | 0 | |||||
Balance, end of period (in shares) at Jun. 30, 2023 | 1,000,000 | |||||
Balance, end of period at Jun. 30, 2023 | 10,366 | $ 790 | $ 6 | 8,570 | 1,032 | (32) |
Balance, end of period (in shares) at Jun. 30, 2023 | 631,000,000 | |||||
Balance, beginning of period (in shares) at Dec. 31, 2023 | 0 | |||||
Balance, beginning of period at Dec. 31, 2023 | $ 9,667 | $ 0 | $ 6 | 8,604 | 1,092 | (35) |
Balance, beginning of period (in shares) at Dec. 31, 2023 | 631,225,829 | 631,000,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances of common stock (in shares) | 9,000,000 | |||||
Issuances of Common Stock, net of issuance costs | $ 0 | 247 | ||||
Issuances related to benefit and investment plans (in shares) | 2,000,000 | |||||
Issuances related to benefit and investment plans | $ 0 | (15) | ||||
Net income | $ 578 | 578 | ||||
Common Stock dividends declared (see Note 18) | (128) | |||||
Other comprehensive income (loss) | 5 | |||||
Balance, end of period (in shares) at Jun. 30, 2024 | 0 | |||||
Balance, end of period at Jun. 30, 2024 | $ 10,354 | $ 0 | $ 6 | 8,836 | 1,542 | (30) |
Balance, end of period (in shares) at Jun. 30, 2024 | 641,953,090 | 642,000,000 | ||||
Balance, beginning of period (in shares) at Mar. 31, 2024 | 0 | |||||
Balance, beginning of period at Mar. 31, 2024 | $ 0 | $ 6 | 8,583 | 1,442 | (33) | |
Balance, beginning of period (in shares) at Mar. 31, 2024 | 633,000,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuances of common stock (in shares) | 9,000,000 | |||||
Issuances of Common Stock, net of issuance costs | $ 0 | 244 | ||||
Issuances related to benefit and investment plans (in shares) | 0 | |||||
Issuances related to benefit and investment plans | $ 0 | 9 | ||||
Net income | $ 228 | 228 | ||||
Common Stock dividends declared (see Note 18) | (128) | |||||
Other comprehensive income (loss) | 3 | |||||
Balance, end of period (in shares) at Jun. 30, 2024 | 0 | |||||
Balance, end of period at Jun. 30, 2024 | $ 10,354 | $ 0 | $ 6 | $ 8,836 | $ 1,542 | $ (30) |
Balance, end of period (in shares) at Jun. 30, 2024 | 641,953,090 | 642,000,000 |
Condensed Statements of Conso_6
Condensed Statements of Consolidated Changes in Equity (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Jun. 30, 2023 |
Statement of Stockholders' Equity [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Condensed Statements of Conso_7
Condensed Statements of Consolidated Income (Unaudited) - Houston Electric - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | $ 1,905 | $ 1,875 | $ 4,525 | $ 4,654 |
Expenses: | ||||
Operation and maintenance | 678 | 679 | 1,387 | 1,342 |
Depreciation and amortization | 386 | 349 | 749 | 668 |
Taxes other than income taxes | 141 | 130 | 285 | 268 |
Total | 1,438 | 1,495 | 3,442 | 3,733 |
Operating Income | 467 | 380 | 1,083 | 921 |
Other Income (Expense): | ||||
Interest expense and other finance charges | (212) | (165) | (410) | (313) |
Interest expense on Securitization Bonds | (5) | (2) | (11) | (4) |
Other income, net | 10 | 13 | 24 | 26 |
Total | (206) | (163) | (394) | (301) |
Income Before Income Taxes | 261 | 217 | 689 | 620 |
Income tax expense | 33 | 99 | 111 | 177 |
Net Income | 228 | 118 | 578 | 443 |
Houston Electric | ||||
Revenues | 1,044 | 909 | 1,945 | 1,701 |
Expenses: | ||||
Operation and maintenance | 456 | 401 | 893 | 781 |
Depreciation and amortization | 210 | 186 | 409 | 345 |
Taxes other than income taxes | 75 | 67 | 150 | 131 |
Total | 741 | 654 | 1,452 | 1,257 |
Operating Income | 303 | 255 | 493 | 444 |
Other Income (Expense): | ||||
Interest expense and other finance charges | (79) | (63) | (155) | (116) |
Interest expense on Securitization Bonds | (1) | (2) | (2) | (4) |
Other income, net | 10 | 10 | 21 | 17 |
Total | (70) | (55) | (136) | (103) |
Income Before Income Taxes | 233 | 200 | 357 | 341 |
Income tax expense | 46 | 42 | 71 | 75 |
Net Income | $ 187 | $ 158 | $ 286 | $ 266 |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheets (Unaudited) - Houston Electric - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 66 | $ 90 |
Accounts receivable, less allowance for credit losses | 633 | 710 |
Accrued unbilled revenues | 336 | 516 |
Materials and supplies | 569 | 573 |
Taxes receivable | 186 | 94 |
Prepaid expenses and other current assets | 112 | 145 |
Total current assets | 4,080 | 3,027 |
Property, Plant and Equipment, net: | ||
Property, plant and equipment | 40,589 | 40,396 |
Less: accumulated depreciation and amortization | 10,372 | 10,543 |
Property, plant and equipment, net | 30,217 | 29,853 |
Other Assets: | ||
Regulatory assets | 2,525 | 2,513 |
Other non-current assets | 211 | 162 |
Total other assets | 6,679 | 6,835 |
Total Assets | 40,976 | 39,715 |
Current Liabilities: | ||
Current portion of VIE Securitization Bonds long-term debt | 94 | 178 |
Accounts payable | 1,057 | 917 |
Taxes accrued | 211 | 291 |
Interest accrued | 244 | 236 |
Other current liabilities | 433 | 510 |
Total current liabilities | 3,410 | 3,864 |
Other Liabilities: | ||
Deferred income taxes, net | 4,324 | 4,079 |
Benefit obligations | 590 | 572 |
Regulatory liabilities | 3,039 | 3,208 |
Other non-current liabilities | 744 | 763 |
Total other liabilities | 8,698 | 8,625 |
Total long-term debt, net | 18,514 | 17,559 |
Commitments and Contingencies (Note 13) | ||
Member’s Equity: | ||
Common stock | 6 | 6 |
Additional paid-in capital | 8,836 | 8,604 |
Retained earnings | 1,542 | 1,092 |
Total shareholders’ equity | 10,354 | 9,667 |
Total Liabilities and Shareholders’ Equity | 40,976 | 39,715 |
Houston Electric | ||
Current Assets: | ||
Cash and cash equivalents | 61 | 76 |
Accrued unbilled revenues | 172 | 142 |
Materials and supplies | 415 | 409 |
Taxes receivable | 0 | 38 |
Prepaid expenses and other current assets | 28 | 48 |
Total current assets | 1,344 | 1,259 |
Property, Plant and Equipment, net: | ||
Property, plant and equipment | 20,448 | 19,515 |
Less: accumulated depreciation and amortization | 4,573 | 4,469 |
Property, plant and equipment, net | 15,875 | 15,046 |
Other Assets: | ||
Regulatory assets | 845 | 752 |
Other non-current assets | 37 | 29 |
Total other assets | 882 | 781 |
Total Assets | 18,101 | 17,086 |
Current Liabilities: | ||
Current portion of VIE Securitization Bonds long-term debt | 81 | 161 |
Taxes accrued | 103 | 155 |
Interest accrued | 114 | 99 |
Other current liabilities | 122 | 111 |
Total current liabilities | 1,177 | 981 |
Other Liabilities: | ||
Deferred income taxes, net | 1,437 | 1,406 |
Benefit obligations | 40 | 32 |
Regulatory liabilities | 961 | 1,025 |
Other non-current liabilities | 92 | 107 |
Total other liabilities | 2,530 | 2,570 |
Total long-term debt, net | 7,924 | 7,426 |
Commitments and Contingencies (Note 13) | ||
Member’s Equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 4,975 | 4,745 |
Retained earnings | 1,495 | 1,364 |
Total shareholders’ equity | 6,470 | 6,109 |
Total Liabilities and Shareholders’ Equity | 18,101 | 17,086 |
Houston Electric | Nonrelated Party | ||
Current Assets: | ||
Accounts receivable, less allowance for credit losses | 370 | 295 |
Current Liabilities: | ||
Accounts payable | 644 | 351 |
Houston Electric | Affiliated Entity | ||
Current Assets: | ||
Accounts and notes receivable–affiliated companies | 298 | 251 |
Current Liabilities: | ||
Accounts payable–affiliated companies | $ 113 | $ 104 |
Condensed Consolidated Balanc_4
Condensed Consolidated Balance Sheets (Unaudited) - Houston Electric (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Cash and cash equivalents | $ 66 | $ 90 |
Accounts receivable, less allowance for credit losses | 633 | 710 |
Allowance for credit losses | (30) | (27) |
Prepaid expenses and other current assets | 112 | 145 |
Regulatory assets | 2,525 | 2,513 |
Houston Electric | ||
Cash and cash equivalents | 61 | 76 |
Allowance for credit losses | (1) | (1) |
Prepaid expenses and other current assets | 28 | 48 |
Regulatory assets | 845 | 752 |
Houston Electric | Nonrelated Party | ||
Accounts receivable, less allowance for credit losses | 370 | 295 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | 66 | 90 |
Accounts receivable, less allowance for credit losses | 28 | 21 |
Prepaid expenses and other current assets | 13 | 15 |
Regulatory assets | 322 | 402 |
Variable Interest Entity, Primary Beneficiary | Houston Electric | ||
Cash and cash equivalents | 61 | 76 |
Accounts receivable, less allowance for credit losses | 26 | 19 |
Prepaid expenses and other current assets | 13 | 13 |
Regulatory assets | $ 0 | $ 74 |
Condensed Statements of Conso_8
Condensed Statements of Consolidated Cash Flows (Unaudited) - Houston Electric - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities: | ||
Net income | $ 578 | $ 443 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 749 | 668 |
Deferred income taxes | 200 | 22 |
Changes in other assets and liabilities: | ||
Accounts receivable and unbilled revenues, net | 188 | 647 |
Inventory | 52 | 142 |
Accounts payable | (83) | (403) |
Taxes receivable | (92) | 2 |
Net regulatory assets and liabilities | (366) | 1,022 |
Other current assets and liabilities | (93) | (120) |
Other non-current assets and liabilities | 21 | 48 |
Other operating activities, net | (34) | 5 |
Net cash provided by operating activities | 1,114 | 2,482 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (1,657) | (2,259) |
Other investing activities, net | 57 | (40) |
Net cash used in investing activities | (1,600) | (2,154) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term debt and term loans, net | 1,596 | 3,675 |
Payments of long-term debt | (463) | (2,613) |
Payment of debt issuance costs | (12) | (28) |
Other financing activities, net | (28) | (23) |
Net cash provided by (used in) financing activities | 459 | (187) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (27) | 141 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 109 | 91 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 82 | 232 |
Houston Electric | ||
Cash Flows from Operating Activities: | ||
Net income | 286 | 266 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 409 | 345 |
Deferred income taxes | 18 | 53 |
Changes in other assets and liabilities: | ||
Accounts receivable and unbilled revenues, net | (108) | (16) |
Accounts receivable/payable–affiliated companies | 11 | (24) |
Inventory | (6) | (8) |
Accounts payable | 39 | (18) |
Taxes receivable | 38 | 0 |
Net regulatory assets and liabilities | (302) | (192) |
Other current assets and liabilities | (20) | (21) |
Other non-current assets and liabilities | (7) | 39 |
Other operating activities, net | (8) | (9) |
Net cash provided by operating activities | 350 | 415 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (854) | (1,185) |
Increase in notes receivable–affiliated companies | (49) | 0 |
Other investing activities, net | 51 | (13) |
Net cash used in investing activities | (852) | (1,198) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term debt and term loans, net | 498 | 898 |
Payments of long-term debt | (80) | (77) |
Decrease in notes payable–affiliated companies | 0 | (532) |
Dividends to parent | (155) | (160) |
Contribution from parent | 230 | 650 |
Payment of debt issuance costs | (4) | (9) |
Other financing activities, net | (2) | (1) |
Net cash provided by (used in) financing activities | 487 | 769 |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (15) | (14) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 89 | 88 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 74 | $ 74 |
Condensed Statements of Conso_9
Condensed Statements of Consolidated Changes in Equity (Unaudited) - Houston Electric - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings | Houston Electric | Houston Electric Common Stock | Houston Electric Additional Paid-in-Capital | Houston Electric Retained Earnings |
Balance, beginning of period (in shares) at Dec. 31, 2022 | 630,000,000 | 1,000 | ||||||
Balance, beginning of period at Dec. 31, 2022 | $ 6 | $ 8,568 | $ 709 | $ 0 | $ 3,860 | $ 1,138 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Contribution from parent | 650 | |||||||
Net income | $ 443 | 443 | $ 266 | 266 | ||||
Dividend to parent | (160) | |||||||
Balance, end of period (in shares) at Jun. 30, 2023 | 631,000,000 | 1,000 | ||||||
Balance, end of period at Jun. 30, 2023 | 10,366 | $ 6 | 8,570 | 1,032 | 5,754 | $ 0 | 4,510 | 1,244 |
Balance, beginning of period (in shares) at Mar. 31, 2023 | 631,000,000 | 1,000 | ||||||
Balance, beginning of period at Mar. 31, 2023 | $ 6 | 8,558 | 1,034 | $ 0 | 4,510 | 1,195 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Contribution from parent | 0 | |||||||
Net income | 118 | 118 | 158 | 158 | ||||
Dividend to parent | (109) | |||||||
Balance, end of period (in shares) at Jun. 30, 2023 | 631,000,000 | 1,000 | ||||||
Balance, end of period at Jun. 30, 2023 | $ 10,366 | $ 6 | 8,570 | 1,032 | 5,754 | $ 0 | 4,510 | 1,244 |
Balance, beginning of period (in shares) at Dec. 31, 2023 | 631,225,829 | 631,000,000 | 1,000 | |||||
Balance, beginning of period at Dec. 31, 2023 | $ 9,667 | $ 6 | 8,604 | 1,092 | 6,109 | $ 0 | 4,745 | 1,364 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Contribution from parent | 230 | |||||||
Net income | $ 578 | 578 | 286 | 286 | ||||
Dividend to parent | (155) | |||||||
Balance, end of period (in shares) at Jun. 30, 2024 | 641,953,090 | 642,000,000 | 1,000 | |||||
Balance, end of period at Jun. 30, 2024 | $ 10,354 | $ 6 | 8,836 | 1,542 | 6,470 | $ 0 | 4,975 | 1,495 |
Balance, beginning of period (in shares) at Mar. 31, 2024 | 633,000,000 | 1,000 | ||||||
Balance, beginning of period at Mar. 31, 2024 | $ 6 | 8,583 | 1,442 | $ 0 | 4,975 | 1,427 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Contribution from parent | 0 | |||||||
Net income | $ 228 | 228 | 187 | 187 | ||||
Dividend to parent | (119) | |||||||
Balance, end of period (in shares) at Jun. 30, 2024 | 641,953,090 | 642,000,000 | 1,000 | |||||
Balance, end of period at Jun. 30, 2024 | $ 10,354 | $ 6 | $ 8,836 | $ 1,542 | $ 6,470 | $ 0 | $ 4,975 | $ 1,495 |
Condensed Statements of Cons_10
Condensed Statements of Consolidated Income (Unaudited) - CERC - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Utility revenues | $ 1,892 | $ 1,789 | $ 4,499 | $ 4,506 |
Non-utility revenues | 13 | 86 | 26 | 148 |
Total | 1,905 | 1,875 | 4,525 | 4,654 |
Expenses: | ||||
Utility natural gas | 233 | 280 | 1,020 | 1,358 |
Non-utility cost of revenues, including natural gas | 0 | 57 | 1 | 97 |
Operation and maintenance | 678 | 679 | 1,387 | 1,342 |
Depreciation and amortization | 386 | 349 | 749 | 668 |
Taxes other than income taxes | 141 | 130 | 285 | 268 |
Total | 1,438 | 1,495 | 3,442 | 3,733 |
Operating Income | 467 | 380 | 1,083 | 921 |
Other Income (Expense): | ||||
Interest expense and other finance charges | (212) | (165) | (410) | (313) |
Other income, net | 10 | 13 | 24 | 26 |
Total | (206) | (163) | (394) | (301) |
Income Before Income Taxes | 261 | 217 | 689 | 620 |
Income tax expense | 33 | 99 | 111 | 177 |
Net Income | 228 | 118 | 578 | 443 |
CERC | ||||
Revenues: | ||||
Utility revenues | 668 | 733 | 2,168 | 2,440 |
Non-utility revenues | 11 | 12 | 23 | 22 |
Total | 679 | 745 | 2,191 | 2,462 |
Expenses: | ||||
Utility natural gas | 182 | 260 | 906 | 1,258 |
Non-utility cost of revenues, including natural gas | 0 | 0 | 1 | 1 |
Operation and maintenance | 181 | 211 | 407 | 429 |
Depreciation and amortization | 138 | 122 | 265 | 240 |
Taxes other than income taxes | 61 | 59 | 125 | 128 |
Total | 562 | 652 | 1,704 | 2,056 |
Operating Income | 117 | 93 | 487 | 406 |
Other Income (Expense): | ||||
Interest expense and other finance charges | (58) | (45) | (107) | (87) |
Other income, net | 3 | 5 | 6 | 6 |
Total | (55) | (40) | (101) | (81) |
Income Before Income Taxes | 62 | 53 | 386 | 325 |
Income tax expense | 15 | 10 | 75 | 70 |
Net Income | $ 47 | $ 43 | $ 311 | $ 255 |
Condensed Statements of Cons_11
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - CERC - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net income | $ 228 | $ 118 | $ 578 | $ 443 |
Adjustment to pension and other postretirement plans (net of tax of, $-0-, $-0-, $-0- and $-0-) | 2 | 0 | 1 | (1) |
Total | 3 | 0 | 5 | (1) |
CERC | ||||
Net income | 47 | 43 | 311 | 255 |
Adjustment to pension and other postretirement plans (net of tax of, $-0-, $-0-, $-0- and $-0-) | 0 | 0 | (1) | (1) |
Total | 0 | 0 | (1) | (1) |
Comprehensive income | $ 47 | $ 43 | $ 310 | $ 254 |
Condensed Statements of Cons_12
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - CERC (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2023 | |
Adjustment to pension and other postemployment plans, tax | $ 0 | $ 0 | $ 0 |
CERC | |||
Adjustment to pension and other postemployment plans, tax | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balanc_5
Condensed Consolidated Balance Sheets (Unaudited) - CERC - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 66 | $ 90 |
Accounts receivable, less allowance for credit losses | 633 | 710 |
Accrued unbilled revenues | 336 | 516 |
Materials and supplies | 569 | 573 |
Natural gas inventory | 133 | 197 |
Taxes receivable | 186 | 94 |
Current assets held for sale | 1,325 | 0 |
Regulatory assets | 243 | 161 |
Prepaid expenses and other current assets | 112 | 145 |
Total current assets | 4,080 | 3,027 |
Property, Plant and Equipment, net: | ||
Property, plant and equipment | 40,589 | 40,396 |
Less: accumulated depreciation and amortization | 10,372 | 10,543 |
Property, plant and equipment, net | 30,217 | 29,853 |
Other Assets: | ||
Goodwill | 3,943 | 4,160 |
Regulatory assets | 2,525 | 2,513 |
Other non-current assets | 211 | 162 |
Total other assets | 6,679 | 6,835 |
Total Assets | 40,976 | 39,715 |
Current Liabilities: | ||
Short-term borrowings | 2 | 4 |
Current portion of other long-term debt | 510 | 872 |
Accounts payable | 1,057 | 917 |
Taxes accrued | 211 | 291 |
Interest accrued | 244 | 236 |
Customer deposits | 95 | 111 |
Non-trading derivative liabilities | 4 | 9 |
Current liabilities held for sale | 218 | 0 |
Other current liabilities | 433 | 510 |
Total current liabilities | 3,410 | 3,864 |
Other Liabilities: | ||
Deferred income taxes, net | 4,324 | 4,079 |
Non-trading derivative liabilities | 1 | 3 |
Benefit obligations | 590 | 572 |
Regulatory liabilities | 3,039 | 3,208 |
Other non-current liabilities | 744 | 763 |
Total other liabilities | 8,698 | 8,625 |
Total long-term debt, net | 18,514 | 17,559 |
Commitments and Contingencies (Note 13) | ||
Shareholders’ Equity: | ||
Common stock | 6 | 6 |
Additional paid-in capital | 8,836 | 8,604 |
Retained earnings | 1,542 | 1,092 |
Accumulated other comprehensive income | (30) | (35) |
Total shareholders’ equity | 10,354 | 9,667 |
Total Liabilities and Shareholders’ Equity | 40,976 | 39,715 |
CERC | ||
Current Assets: | ||
Cash and cash equivalents | 1 | 1 |
Accrued unbilled revenues | 117 | 329 |
Materials and supplies | 103 | 107 |
Natural gas inventory | 98 | 156 |
Taxes receivable | 114 | 101 |
Current assets held for sale | 1,230 | 0 |
Regulatory assets | 240 | 161 |
Prepaid expenses and other current assets | 28 | 55 |
Total current assets | 2,250 | 1,309 |
Property, Plant and Equipment, net: | ||
Property, plant and equipment | 14,998 | 15,672 |
Less: accumulated depreciation and amortization | 4,039 | 4,169 |
Property, plant and equipment, net | 10,959 | 11,503 |
Other Assets: | ||
Goodwill | 1,461 | 1,583 |
Regulatory assets | 768 | 850 |
Other non-current assets | 89 | 51 |
Total other assets | 2,318 | 2,484 |
Total Assets | 15,527 | 15,296 |
Current Liabilities: | ||
Short-term borrowings | 2 | 4 |
Current portion of other long-term debt | 10 | 0 |
Taxes accrued | 102 | 145 |
Interest accrued | 69 | 70 |
Customer deposits | 81 | 95 |
Non-trading derivative liabilities | 3 | 8 |
Current liabilities held for sale | 218 | 0 |
Other current liabilities | 217 | 274 |
Total current liabilities | 1,038 | 1,087 |
Other Liabilities: | ||
Deferred income taxes, net | 1,361 | 1,246 |
Non-trading derivative liabilities | 1 | 3 |
Benefit obligations | 73 | 74 |
Regulatory liabilities | 1,802 | 1,882 |
Other non-current liabilities | 445 | 455 |
Total other liabilities | 3,682 | 3,660 |
Total long-term debt, net | 4,574 | 4,670 |
Commitments and Contingencies (Note 13) | ||
Shareholders’ Equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 4,519 | 4,229 |
Retained earnings | 1,699 | 1,634 |
Accumulated other comprehensive income | 15 | 16 |
Total shareholders’ equity | 6,233 | 5,879 |
Total Liabilities and Shareholders’ Equity | 15,527 | 15,296 |
CERC | Nonrelated Party | ||
Current Assets: | ||
Accounts receivable, less allowance for credit losses | 215 | 356 |
Current Liabilities: | ||
Accounts payable | 238 | 392 |
CERC | Affiliated Entity | ||
Current Assets: | ||
Accounts and notes receivable–affiliated companies | 104 | 43 |
Current Liabilities: | ||
Accounts payable–affiliated companies | $ 98 | $ 99 |
Condensed Consolidated Balanc_6
Condensed Consolidated Balance Sheets (Unaudited) - CERC (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Allowance for credit losses | $ (30) | $ (27) |
Accrued unbilled revenues, allowance for credit losses | (2) | 2 |
CERC | ||
Allowance for credit losses | (28) | (25) |
Accrued unbilled revenues, allowance for credit losses | $ (1) | $ 1 |
Condensed Statements of Cons_13
Condensed Statements of Consolidated Cash Flows (Unaudited) - CERC - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities: | ||
Net Income | $ 578 | $ 443 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 749 | 668 |
Deferred income taxes | 200 | 22 |
Changes in other assets and liabilities: | ||
Accounts receivable and unbilled revenues, net | 188 | 647 |
Inventory | 52 | 142 |
Taxes receivable | (92) | 2 |
Accounts payable | (83) | (403) |
Net regulatory assets and liabilities | (366) | 1,022 |
Other current assets and liabilities | (93) | (120) |
Other non-current assets and liabilities | 21 | 48 |
Other operating activities, net | (34) | 5 |
Net cash provided by operating activities | 1,114 | 2,482 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (1,657) | (2,259) |
Other investing activities, net | 57 | (40) |
Net cash used in investing activities | (1,600) | (2,154) |
Cash Flows from Financing Activities: | ||
Decrease in short-term borrowings, net | (4) | (14) |
Payments of commercial paper, net | (623) | (920) |
Proceeds from long-term debt and term loans, net | 1,596 | 3,675 |
Payments of long-term debt and term loan | (463) | (2,613) |
Payment of debt issuance costs | (12) | (28) |
Other financing activities, net | (28) | (23) |
Net cash provided by (used in) financing activities | 459 | (187) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (27) | 141 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 109 | 91 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 82 | 232 |
CERC | ||
Cash Flows from Operating Activities: | ||
Net Income | 311 | 255 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 265 | 240 |
Deferred income taxes | 92 | 22 |
Changes in other assets and liabilities: | ||
Accounts receivable and unbilled revenues, net | 285 | 644 |
Accounts receivable/payable–affiliated companies | 9 | (24) |
Inventory | 47 | 168 |
Taxes receivable | (13) | 0 |
Accounts payable | (133) | (372) |
Net regulatory assets and liabilities | (53) | 1,198 |
Other current assets and liabilities | (36) | 10 |
Other non-current assets and liabilities | 12 | 7 |
Other operating activities, net | (31) | (1) |
Net cash provided by operating activities | 755 | 2,147 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (659) | (807) |
Increase in notes receivable–affiliated companies | (71) | (417) |
Other investing activities, net | 25 | (9) |
Net cash used in investing activities | (705) | (1,233) |
Cash Flows from Financing Activities: | ||
Decrease in short-term borrowings, net | (4) | (14) |
Payments of commercial paper, net | (484) | (805) |
Proceeds from long-term debt and term loans, net | 399 | 2,006 |
Payments of long-term debt and term loan | 0 | (2,275) |
Dividends to parent | (246) | (311) |
Payment of debt issuance costs | (3) | (13) |
Contribution from parent | 290 | 500 |
Other financing activities, net | (2) | (1) |
Net cash provided by (used in) financing activities | (50) | (913) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 0 | 1 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 1 | 0 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 1 | $ 1 |
Condensed Statements of Cons_14
Condensed Statements of Consolidated Changes in Equity (Unaudited) - CERC - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Loss | CERC | CERC Common Stock | CERC Additional Paid-in-Capital | CERC Retained Earnings | CERC Accumulated Other Comprehensive Loss |
Balance, beginning of period (in shares) at Dec. 31, 2022 | 630,000,000 | 1,000 | ||||||||
Balance, beginning of period at Dec. 31, 2022 | $ 6 | $ 8,568 | $ 709 | $ (31) | $ 0 | $ 3,729 | $ 1,618 | $ 16 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Contribution from parent | 500 | |||||||||
Net income | $ 443 | 443 | $ 255 | 255 | ||||||
Dividend to parent | (311) | |||||||||
Other comprehensive loss | (1) | (1) | ||||||||
Balance, end of period (in shares) at Jun. 30, 2023 | 631,000,000 | 1,000 | ||||||||
Balance, end of period at Jun. 30, 2023 | 10,366 | $ 6 | 8,570 | 1,032 | (32) | 5,806 | $ 0 | 4,229 | 1,562 | 15 |
Balance, beginning of period (in shares) at Mar. 31, 2023 | 631,000,000 | 1,000 | ||||||||
Balance, beginning of period at Mar. 31, 2023 | $ 6 | 8,558 | 1,034 | (32) | $ 0 | 3,729 | 1,626 | 15 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Contribution from parent | 500 | |||||||||
Net income | 118 | 118 | 43 | 43 | ||||||
Dividend to parent | (107) | |||||||||
Other comprehensive loss | 0 | 0 | ||||||||
Balance, end of period (in shares) at Jun. 30, 2023 | 631,000,000 | 1,000 | ||||||||
Balance, end of period at Jun. 30, 2023 | $ 10,366 | $ 6 | 8,570 | 1,032 | (32) | 5,806 | $ 0 | 4,229 | 1,562 | 15 |
Balance, beginning of period (in shares) at Dec. 31, 2023 | 631,225,829 | 631,000,000 | 1,000 | |||||||
Balance, beginning of period at Dec. 31, 2023 | $ 9,667 | $ 6 | 8,604 | 1,092 | (35) | 5,879 | $ 0 | 4,229 | 1,634 | 16 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Contribution from parent | 290 | |||||||||
Net income | $ 578 | 578 | 311 | 311 | ||||||
Dividend to parent | (246) | |||||||||
Other comprehensive loss | 5 | (1) | ||||||||
Balance, end of period (in shares) at Jun. 30, 2024 | 641,953,090 | 642,000,000 | 1,000 | |||||||
Balance, end of period at Jun. 30, 2024 | $ 10,354 | $ 6 | 8,836 | 1,542 | (30) | 6,233 | $ 0 | 4,519 | 1,699 | 15 |
Balance, beginning of period (in shares) at Mar. 31, 2024 | 633,000,000 | 1,000 | ||||||||
Balance, beginning of period at Mar. 31, 2024 | $ 6 | 8,583 | 1,442 | (33) | $ 0 | 4,229 | 1,783 | 15 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Contribution from parent | 290 | |||||||||
Net income | $ 228 | 228 | 47 | 47 | ||||||
Dividend to parent | (131) | |||||||||
Other comprehensive loss | 3 | 0 | ||||||||
Balance, end of period (in shares) at Jun. 30, 2024 | 641,953,090 | 642,000,000 | 1,000 | |||||||
Balance, end of period at Jun. 30, 2024 | $ 10,354 | $ 6 | $ 8,836 | $ 1,542 | $ (30) | $ 6,233 | $ 0 | $ 4,519 | $ 1,699 | $ 15 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation General. This combined Form 10-Q 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 11, 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. Basis of Presentation. Included in this combined Form 10-Q are the Interim Condensed Financial Statements of CenterPoint Energy, Houston Electric and CERC, which are referred to collectively as the Registrants. The Interim Condensed Financial Statements are unaudited, omit certain financial statement disclosures and should be read with the Registrants’ financial statements included in the Registrants’ combined 2023 Form 10-K. The Combined Notes to Interim Condensed Financial Statements apply to all Registrants and specific references to Houston Electric and CERC herein also pertain to CenterPoint Energy, unless otherwise indicated. The Interim Condensed Financial Statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the respective periods. Amounts reported in the Condensed Statements of Consolidated Income are not necessarily indicative of amounts expected for a full-year period due to the effects of, among other things, (a) seasonal fluctuations in demand for energy, (b) changes in energy commodity prices, (c) timing of maintenance and other expenditures and (d) acquisitions and dispositions of businesses, assets and other interests. Background . CenterPoint Energy, Inc. is a public utility holding company. On June 30, 2023, CenterPoint Energy completed the sale of its indirect subsidiary, Energy Systems Group, to an unaffiliated third party. On February 19, 2024, CenterPoint Energy, through its subsidiary CERC Corp., entered into the LAMS Asset Purchase Agreement to sell its Louisiana and Mississippi natural gas LDC businesses. The transaction is expected to close in the first quarter of 2025. For additional information, see Note 3. As of June 30, 2024, 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; • CERC Corp. (i) directly owns and operates natural gas distribution systems in Louisiana, Minnesota, Mississippi and Texas, (ii) indirectly, through Indiana Gas and CEOH, 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; and • 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. As of June 30, 2024, CenterPoint Energy’s reportable segments were Electric, Natural Gas, and Corporate and Other. Houston Electric and CERC each consist of a single reportable segment. For a description of CenterPoint Energy’s reportable segments, see Note 15. Principles of Consolidation. The accompanying Interim Condensed Financial Statements have been prepared in conformity with generally accepted accounting principles. The accounts of the Registrants and their wholly-owned and majority-owned and controlled subsidiaries are included in the Interim Condensed Financial Statements. All intercompany transactions and balances are eliminated in consolidation. As of June 30, 2024, CenterPoint Energy, Houston Electric and SIGECO had VIEs including the Bond Companies and the SIGECO Securitization Subsidiary, which are consolidated. The consolidated VIEs are wholly-owned, bankruptcy-remote, special purpose entities that were formed solely for the purpose of securitizing transition property or facilitating the securitization financing of qualified costs in the second quarter of 2023 associated with the completed retirement of SIGECO’s A.B. Brown coal generation facilities. CenterPoint Energy, through SIGECO, has a controlling financial interest in the SIGECO Securitization Subsidiary and is the VIE’s primary beneficiary. For further information, see Note 6. Creditors of CenterPoint Energy, Houston Electric and SIGECO have no recourse to any assets or revenues of the Bond Companies or the SIGECO Securitization Subsidiary, as applicable. The Securitization Bonds issued by these VIEs are payable only from and secured by transition or securitization property, as applicable, and the bondholders have no recourse to the general credit of CenterPoint Energy, Houston Electric or SIGECO. The preparation of the Registrants’ 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. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). This ASU updates segment disclosure requirements through enhanced disclosures around significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Registrants are currently evaluating the impact of this ASU on their respective consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). This ASU enhances the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Registrants are currently evaluating the impact of this ASU on their respective consolidated financial statements. Management believes that all 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. |
Held for Sale and Divestitures
Held for Sale and Divestitures (CenterPoint Energy and CERC) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Held for Sale and Divestitures (CenterPoint Energy and CERC) | Held for Sale and Divestitures (CenterPoint Energy and CERC) Held for Sale. On February 19, 2024, CERC Corp. entered into the LAMS Asset Purchase Agreement, pursuant to which CERC Corp. has agreed to sell its Louisiana and Mississippi natural gas LDC businesses. The purchase price for the Louisiana and Mississippi natural gas LDC businesses is $1.2 billion and subject to adjustment as set forth in the LAMS Asset Purchase Agreement, including adjustments based on net working capital, regulatory assets and liabilities and capital expenditures at closing. The completion of the proposed transaction is subject to customary closing conditions, including (i) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (ii) approval of the LPSC, (iii) approval of the MPSC, (iv) no Material Adverse Effect (as defined in the LAMS Asset Purchase Agreement) having occurred, and (v) customary closing conditions regarding the accuracy of the representations and warranties and compliance by the parties with the respective obligations under the LAMS Asset Purchase Agreement. The proposed transaction is not subject to a financing condition and is expected to close by the end of the first quarter of 2025, subject to satisfaction of the foregoing conditions. The businesses include approximately 12,000 miles of main pipeline in Louisiana and Mississippi serving more than 300,000 customers. The Louisiana and Mississippi natural gas LDC businesses are reflected in CenterPoint Energy’s Natural Gas reportable segment and CERC’s single reportable segment, as applicable. Filings were made on April 24, 2024 to the LPSC and on April 25, 2024 to the MPSC requesting approval of the transaction. In February 2024, certain assets and liabilities representing the Louisiana and Mississippi natural gas LDC businesses met the held for sale criteria. The sale will be considered an asset sale for tax purposes, requiring net deferred tax liabilities to be excluded from held for sale balances. 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. Neither CenterPoint Energy nor CERC recognized any gains or losses upon classification of held for sale during the three and six months ended June 30, 2024. See Note 9 for further information about the allocation of goodwill to the businesses to be sold. The assets and liabilities of the Louisiana and Mississippi natural gas LDC businesses classified as held for sale in CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets, as applicable, included the following: June 30, 2024 CenterPoint Energy CERC (in millions) Receivables, net $ 15 $ 15 Accrued unbilled revenues 11 11 Natural gas inventory 3 3 Materials and supplies 14 14 Property, plant and equipment, net 1,008 1,008 Goodwill 217 122 Regulatory assets 55 55 Other 2 2 Total current assets held for sale $ 1,325 $ 1,230 Accounts payable $ 20 $ 20 Customer deposits 14 14 Regulatory liabilities 92 92 Other 92 92 Total current liabilities held for sale $ 218 $ 218 Although the Louisiana and Mississippi natural gas LDC businesses meet the held for sale criteria, their proposed disposals do not represent a strategic shift for CenterPoint Energy and CERC as both will retain significant operations in, and will continue to invest in, their natural gas businesses. Therefore, the assets and liabilities associated with these transactions are not reflected as discontinued operations on CenterPoint Energy’s and CERC’s Condensed Statements of Consolidated Income, as applicable, and the December 31, 2023 Condensed Consolidated Balance Sheets were not required to be recast for assets held for sale. Since the depreciation on the Louisiana and Mississippi natural gas LDC businesses assets will continue to be reflected in revenues through customer rates until the expected closing of the transaction and will be reflected in the carryover basis of the rate-regulated assets once sold, CenterPoint Energy and CERC will continue to record depreciation on those assets through the expected closing of the transaction. The pre-tax income for the Louisiana and Mississippi natural gas LDC businesses, excluding interest and corporate allocations, included in CenterPoint Energy’s and CERC’s Condensed Statements of Consolidated Income is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Income Before Income Taxes $ 3 $ 3 $ 44 $ 35 Divestiture of Energy Systems Group. On May 21, 2023, CenterPoint Energy, through its subsidiary Vectren Energy Services, entered into an Equity Purchase Agreement to sell all of the outstanding limited liability company interests of Energy Systems Group to ESG Holdings Group, for a purchase price of $157 million, subject to customary adjustments set forth in the Equity Purchase Agreement, including adjustments based on Energy Systems Group’s net working capital at closing, indebtedness, cash and cash equivalents and transaction expenses. The transaction closed on June 30, 2023, and CenterPoint Energy received $154 million in cash, subject to finalization of the purchase price adjustment. Additionally, as of June 30, 2024, CenterPoint Energy had a payable of approximately $2 million to ESG Holdings Group for working capital and other adjustments set forth in the Equity Purchase Agreement. In May 2023, certain assets and liabilities of Energy Systems Group met the held for sale criteria. The divestiture of Energy Systems Group reflects CenterPoint Energy’s continued strategic focus on its core utility businesses. The historical annual revenues, net income and total assets of Energy Systems Groups did not have a sufficient effect, quantitatively or qualitatively, on CenterPoint Energy’s financial results to be considered a strategic shift. Therefore, the income and expenses associated with Energy Systems Group were not reflected as discontinued operations on CenterPoint Energy’s Condensed Statements of Consolidated Income. Depreciation and amortization of long-lived assets ceased at the end of the quarter in which the held for sale criteria was met. Additionally, as a result of the completion of the sale of Energy Systems Group in June 2023, there were no assets or liabilities associated with Energy Systems Group classified as held for sale as of June 30, 2024. For a discussion of guarantees and product warranties related to Energy Systems Group prior to the sale, see Note 13(b). CenterPoint Energy recognized a loss on sale of approximately $13 million, including $3 million of transaction costs, during the year ended December 31, 2023, in connection with the closing of the sale of Energy Systems Group. Additionally, CenterPoint Energy recognized a current tax expense of $32 million during the year ended December 31, 2023, as a result of the cash taxes payable upon the closing of the sale. The pre-tax loss for Energy Systems Group, excluding interest and corporate allocations, included in CenterPoint Energy’s Condensed Statements of Consolidated Income is as follows: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (in millions) Income (Loss) Before Income Taxes $ 2 $ (4) |
Revenue Recognition and Allowan
Revenue Recognition and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Allowance for Credit Losses | Revenue Recognition and Allowance for Credit Losses In accordance with ASC 606, Revenue from Contracts with Customers, 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. 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. The following tables disaggregate revenues by reportable segment and major source: CenterPoint Energy Three Months Ended June 30, 2024 Electric Natural Gas Corporate Total (in millions) Revenue from contracts with customers $ 1,207 $ 698 $ 1 $ 1,906 Other (1) — (3) 2 (1) Total revenues $ 1,207 $ 695 $ 3 $ 1,905 Six Months Ended June 30, 2024 Electric Natural Gas Corporate Total (in millions) Revenue from contracts with customers $ 2,259 $ 2,239 $ 2 $ 4,500 Other (1) (3) 26 2 25 Total revenues $ 2,256 $ 2,265 $ 4 $ 4,525 Three Months Ended June 30, 2023 Electric Natural Gas Corporate Total (in millions) Revenue from contracts with customers $ 1,040 $ 759 $ 73 $ 1,872 Other (1) (3) 5 1 3 Total revenues $ 1,037 $ 764 $ 74 $ 1,875 Six Months Ended June 30, 2023 Electric Natural Gas Corporate Total (in millions) Revenue from contracts with customers $ 1,998 $ 2,511 $ 124 $ 4,633 Other (1) (9) 28 2 21 Total revenues $ 1,989 $ 2,539 $ 126 $ 4,654 (1) Primarily consists of income from ARPs and leases. Total lease income was $2 million and $2 million for the three months ended June 30, 2024 and 2023, respectively, and $4 million and $4 million for the six months ended June 30, 2024 and 2023, respectively. Houston Electric Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Revenue from contracts with customers $ 1,049 $ 918 $ 1,959 $ 1,721 Other (1) (5) (9) (14) (20) Total revenues $ 1,044 $ 909 $ 1,945 $ 1,701 (1) Primarily consists of income from ARPs and leases. Lease income was not significant for the three and six months ended June 30, 2024 and 2023. CERC Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Revenue from contracts with customers $ 682 $ 737 $ 2,167 $ 2,437 Other (1) (3) 8 24 25 Total revenues $ 679 $ 745 $ 2,191 $ 2,462 (1) Primarily consists of income from ARPs and leases. Lease income was not significant for the three and six months ended June 30, 2024 and 2023. 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, transmits and distributes 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 provided at a point in time with control transferring upon completion of the service. Revenue for discretionary services is recognized upon completion of service based on 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 a contract liability when customer payment precedes performance. Those customers that prepay are represented by contract liabilities until the performance obligations are satisfied. The Registrants’ contract liabilities are included in Accounts payable and Other current liabilities in their Condensed Consolidated Balance Sheets. The opening and closing balances of accounts receivable, accrued unbilled revenues and contract liabilities from contracts with customers are as follows: CenterPoint Energy Accounts Receivable Accrued Unbilled Revenues Contract Liabilities (in millions) Opening balance as of December 31, 2023 $ 652 $ 516 $ 2 Closing balance as of June 30, 2024 598 346 6 Increase (decrease) $ (54) $ (170) $ 4 The amount of revenue recognized during the six months ended June 30, 2024 that was included in the opening contract liability was $2 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 Accrued Unbilled Revenues Contract Liabilities (in millions) Opening balance as of December 31, 2023 $ 275 $ 142 $ 2 Closing balance as of June 30, 2024 351 172 6 Increase $ 76 $ 30 $ 4 The amount of revenue recognized during the six months ended June 30, 2024 that was included in the opening contract liability was $2 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 Accrued Unbilled Revenues (in millions) Opening balance as of December 31, 2023 $ 330 $ 329 Closing balance as of June 30, 2024 209 128 Decrease $ (121) $ (201) CERC does not have any opening or closing contract asset or contract liability balances. Remaining Performance Obligations (CenterPoint Energy). Following the completed sale of Energy Systems Group on June 30, 2023, CenterPoint Energy had no remaining performance obligations. 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 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, see Note 6 . |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Registrants’ net periodic cost, before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes, includes the following components relating to pension and postretirement benefits: Pension Benefits (CenterPoint Energy) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Service cost (1) $ 6 $ 6 $ 12 $ 13 Interest cost (2) 18 19 37 38 Expected return on plan assets (2) (18) (19) (37) (38) Amortization of net loss (2) 7 7 14 14 Net periodic cost $ 13 $ 13 $ 26 $ 27 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. (2) Amounts presented in the table above are included in Other income, net in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of regulatory deferrals. Postretirement Benefits Three Months Ended June 30, 2024 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 1 $ — $ — $ 1 $ — $ — Interest cost (2) 3 2 1 3 2 1 Expected return on plan assets (2) (2) (1) — (2) (1) — Amortization of prior service credit (2) — (2) — (1) (2) — Amortization of net loss (2) (2) (1) — (2) (1) — Net periodic cost (benefit) $ — $ (2) $ 1 $ (1) $ (2) $ 1 Six Months Ended June 30, 2024 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 1 $ — $ — $ 1 $ — $ — Interest cost (2) 6 3 2 6 3 2 Expected return on plan assets (2) (3) (2) — (3) (2) — Amortization of prior service cost (credit) (2) (1) (3) 1 (1) (3) 1 Amortization of net loss (2) (4) (2) (1) (4) (2) (1) Net periodic cost (benefit) $ (1) $ (4) $ 2 $ (1) $ (4) $ 2 (1) Amounts presented in the tables above are included in Operation and maintenance expense in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. (2) Amounts presented in the tables above are included in Other income, net in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of regulatory deferrals. The table below reflects the expected contributions to be made to the pension and postretirement benefit plans during 2024: CenterPoint Energy Houston Electric CERC (in millions) Expected contribution to pension plans $ 9 $ — $ — Expected contribution to postretirement benefit plans 8 1 4 The table below reflects the contributions made to the pension and postretirement benefit plans during the periods presented: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Pension plans $ 1 $ — $ — $ 3 $ — $ — Postretirement benefit plans 2 — 2 4 — 3 |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2024 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters Equity Return The Registrants are at times allowed by a regulator to defer an equity return as part of the recoverable carrying costs of a regulatory asset. A deferred equity return is capitalized for rate-making purposes, but it is not included in the Registrant’s regulatory assets on its Condensed Consolidated Balance Sheets. The allowed equity return is recognized in the Condensed Statements of Consolidated Income as it is recovered in rates. The recoverable allowed equity return not yet recognized by the Registrants is as follows: June 30, 2024 December 31, 2023 CenterPoint Energy (1) Houston Electric (2) CERC (3) CenterPoint Energy (1) Houston Electric (2) CERC (3) (in millions) Unrecognized equity return $ 204 $ 61 $ 79 $ 204 $ 75 $ 69 (1) In addition to the amounts described in (2) and (3) below, represents CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments in Indiana. (2) Represents 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 TEEEF costs and storm restoration costs. (3) Represents CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacement expenditures in Texas and costs associated with investments in Indiana. The table below reflects the amount of allowed equity return recognized by each Registrant in its Condensed Statements of Consolidated Income: Three Months Ended June 30, 2024 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Allowed equity return recognized $ 12 $ 11 $ — $ 10 $ 9 $ — Six Months Ended June 30, 2024 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Allowed equity return recognized $ 21 $ 19 $ 1 $ 18 $ 16 $ 1 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. The February 2021 Winter Storm Event 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 cost of natural gas purchased by CenterPoint Energy and CERC of approximately $2 billion. CenterPoint Energy and CERC have completed recovery of natural gas costs in Mississippi, Indiana, Louisiana and Texas, and continue to recover the natural gas cost in Minnesota. As of June 30, 2024, CenterPoint Energy and CERC have each recorded current regulatory assets of $66 million and non-current regulatory assets of $92 million associated with the February 2021 Winter Storm Event. As of December 31, 2023, CenterPoint Energy and CERC had each recorded current regulatory assets of $86 million and non-current regulatory assets of $130 million associated with the February 2021 Winter Storm Event. On August 24, 2023, the LPSC staff issued an audit report which recommends some prospective process changes to the gas supply bid process and did not recommend any disallowance of February 2021 Winter Storm Event gas costs incurred in Louisiana. Recovery of such costs remains subject to LPSC approval. On December 19, 2023, the LPSC issued an order which accepted and approved the audit report. As of both June 30, 2024 and December 31, 2023, as authorized by the PUCT, both 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, both CenterPoint Energy and Houston Electric recorded a regulatory asset of $18 million and $17 million as of June 30, 2024 and December 31, 2023, respectively, and have requested reimbursement of costs associated with the February 2021 Winter Storm Event in Houston Electric’s rate case. See Note 13(c) for further information regarding litigation related to the February 2021 Winter Storm Event. Texas Public Securitization The Texas Natural Gas Securitization Finance Corporation issued customer rate relief bonds in March 2023, and on March 23, 2023, CenterPoint Energy and CERC, collectively, received approximately $1.1 billion in cash proceeds from the issuance and sale of the state’s customer rate relief bonds. The proceeds from the state’s customer rate relief bonds included carrying costs incurred through August 2022. Incremental carrying costs incurred after August 2022 until the date the proceeds were received are recorded in a separate regulatory asset; the current CERC rate proceeding in Texas includes a request for recovery of this regulatory asset. As CenterPoint Energy and CERC have no future financial obligations for the repayment of the state’s customer rate relief bonds, the customer rate relief bonds are not recorded on CenterPoint Energy’s or CERC’s balance sheets. The $1.1 billion in cash proceeds from the state’s customer rate relief bonds is considered to be a government grant. The state’s customer rate relief bonds are backed in part by customer rate relief property, including customer rate relief charges, which are non-bypassable uniform monthly volumetric charges to be paid by all existing and future sales customers as a component of each regulated utility’s gas cost, separate from their base rate. CERC only acts as a collection agent, whose duties include management, servicing and administration of a portion of the customer rate relief property which is associated with the customer rate relief charge imposed on customers of CERC under the guidance and direction from the Railroad Commission. The Texas Natural Gas Securitization Finance Corporation, and not CenterPoint Energy or CERC, is the owner of the customer rate relief property. The assets of the Texas Natural Gas Securitization Finance Corporation are not available to pay creditors of CenterPoint Energy, CERC, or their affiliates. While the customer rate relief charges will be included by CERC in their monthly billings, the billing amount is established by the Railroad Commission. CERC will remit all customer rate relief charges collected to the financing entity set up by the Railroad Commission. Therefore, the collection and servicing of customer rate relief charges have no impact on the respective Condensed Statements of Consolidated Income of CenterPoint Energy or CERC. As U.S. generally accepted accounting principles have no specific accounting guidance for government grants or assistance, the cash proceeds from the state’s customer rate relief bonds were accounted for as a government grant by analogy to the grant model under IAS 20—Accounting for Government Grants and Disclosures of Government Assistance. CenterPoint Energy and CERC reflect the proceeds from the grant as a deduction to natural gas costs and recognized the $1.1 billion of cash proceeds from the state’s customer rate relief bonds within Utility natural gas expense on their respective Condensed Statements of Consolidated Income in the three months ended March 31, 2023, net of the recognition of natural gas cost related to relieving CenterPoint Energy and CERC’s regulatory assets related to the February 2021 Winter Storm Event in the same period. May 2024 Storm Events Houston Electric’s service territory experienced sudden and destructive severe weather events in May 2024 that included Hurricane-like winds and tornadoes. The May 2024 Storm Events caused significant damage to Houston Electric’s electric delivery system. Houston Electric currently estimates that total costs to restore the electric delivery facilities damaged as a result of the May 2024 Storm Events will be in the range of $425 million to $475 million based on currently available information. These preliminary estimates are subject to revision as certain restoration costs may continue through the end of 2024. As is common with electric utilities serving coastal regions, the poles, towers, wires, street lights and pole-mounted equipment that comprise Houston Electric’s transmission and distribution system are not covered by property insurance. Houston Electric is deferring certain storm restoration costs as management believes it is probable that such costs will be recovered through the regulatory process. However, neither the amount nor timing of the recovery is certain. As of June 30, 2024, Houston Electric recorded increases of $308 million in Property, plant and equipment and $70 million in Regulatory assets, for restoration costs incurred through June 30, 2024. Approximately $291 million of these costs are based on estimates and are included in Accounts payable as of June 30, 2024. The ultimate recovery of costs is expected to be sought through the issuance and sale of non-recourse securitization bonds for distribution-related costs and the TCOS capital mechanism for transmission-related costs. See Note 11 for further information regarding a term loan facility to fund certain costs related to the May 2024 Storm Events. Indiana Electric Securitization of Generation Retirements (CenterPoint Energy) On January 4, 2023, the IURC issued an order in accordance with Indiana Senate Enrolled Act 386 authorizing the issuance of up to $350 million in securitization bonds to securitize qualified costs associated with the retirements of Indiana Electric’s A.B. Brown coal-fired generation facilities. Accordingly, CenterPoint Energy determined that the retirement of property, plant and equipment became probable upon the issuance of the order. No loss on abandonment was recognized in connection with issuance of the order as there was no disallowance of all or part of the cost of the abandoned property, plant and equipment. In the first quarter of 2023, upon receipt of the order, CenterPoint Energy reclassified property, plant and equipment to be recovered through securitization to a regulatory asset and such amounts continued to earn a full return until recovered through securitization. The SIGECO Securitization Subsidiary issued $341 million aggregate principal amount of the SIGECO Securitization Bonds on June 29, 2023. The SIGECO Securitization Subsidiary used a portion of the net proceeds from the issuance of the SIGECO Securitization Bonds to purchase the securitization property from SIGECO. No gain or loss was recognized. The SIGECO Securitization Bonds are secured by the securitization property, which includes the right to recover, through non-bypassable securitization charges payable by SIGECO’s retail electric customers, the qualified costs of SIGECO authorized by the IURC order. SIGECO has no payment obligations with respect to the SIGECO Securitization Bonds except to remit collections of securitization charges as set forth in a servicing agreement between SIGECO and the SIGECO Securitization Subsidiary. The non-bypassable securitization charges are subject to a true-up mechanism. Houston Electric TEEEF Pursuant to legislation passed in 2021, Houston Electric entered into two leases for TEEEF (mobile generation) which are detailed in Note 19. Houston Electric initially sought recovery of the lease costs and the applicable return as of December 31, 2021 under these lease agreements of approximately $200 million in its DCRF application filed with the PUCT on April 5, 2022, and subsequently amended on July 1, 2022, to show mobile generation in a separate Rider TEEEF. A final order was issued on April 5, 2023 approving a revenue requirement of $39 million that results in full recovery of costs requested but lengthens the amortization period for the short-term lease to be collected over 82.5 months. On May 25, 2023, the PUCT issued its order on rehearing which clarified some of the findings, but did not change the approval of TEEEF cost recovery. The PUCT’s decision on the first TEEEF filing is now final and non-appealable. On April 5, 2023, Houston Electric made its second TEEEF filing requesting recovery of TEEEF related costs incurred through December 31, 2022. Houston Electric requested a new annual revenue requirement of approximately $188 million u sing 78 months to amortize the related deferred costs for proposed rates beginning September 2023, a net increase in TEEEF revenues of approximately $149 million . On August 28, 2023, the State Office of Administrative Hearings issued an Order setting interim rates to collect an annual revenue requirement at the filed amount. Interim rates became effective on September 1, 2023, subject to surcharge or refund if they differ from the final rates approved by the PUCT. An agreement in principle was reached which reduced the annual revenue requirement by approximately $35 million based on recovering the balance as of December 31, 2022 over a 102 month amortization period (instead of the 78 month period in the initial filing) and also allows for revised interim rates (to incorporate the agreement in principle and the initial interim rates that have been in place since September 1, 2023). The updated interim rates were implemented on December 15, 2023 and approved by the PUCT pursuant to its order issued on February 1, 2024 when the PUCT approved the agreement in principle. 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 debt returns, and determined that such regulatory assets remain probable of recovery as of June 30, 2024. Right of use 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 has not recorded any impairments on its right of use assets in the year ended December 31, 2023 or the three and six months ended June 30, 2024. See Note 19 for further information. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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, from time to time, utilize derivative instruments such as 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 the Indiana Utilities they respectively own, 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 (CenterPoint Energy and Houston Electric). 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. Houston Electric and 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. The table below summarizes CenterPoint Energy’s and Houston Electric’s outstanding interest rate hedging activity: June 30, 2024 December 31, 2023 Hedging Classification Notional Principal (in millions) CenterPoint Energy: Cash flow hedge (1) (2) $ — $ 200 Houston Electric: Cash flow hedge (2) $ — $ 100 (1) Relates to interest rate derivative instruments at CenterPoint Energy with a termination date of December 31, 2029. The interest rate swap agreements were designated as cash flow hedges of forecasted transactions. CenterPoint Energy records all changes in the fair value of cash flow hedges in accumulated other comprehensive income (loss) until the underlying hedged transaction occurs, when it reclassifies that amount into earnings. (2) Relates to interest rate derivative instruments at Houston Electric with a termination date of June 28, 2024. The interest rate treasury lock agreements were designated as cash flow hedges of forecasted transactions. Houston Electric records all changes in the fair value of cash flow hedges to a regulatory asset or liability, which is amortized over the life of the associated debt being hedged. (b) Derivative Fair Values and Financial Statement Presentation CenterPoint Energy and Houston Electric had no outstanding interest rate derivatives designated as cash flow hedges as of June 30, 2024. CenterPoint Energy’s interest rate derivatives designated as cash flow hedges were not material as of December 31, 2023 and were included in current Non-trading derivative liabilities on CenterPoint Energy’s Condensed Consolidated Balance Sheets. Houston Electric’s interest rate derivatives designated as cash flow hedges were not material as of December 31, 2023 and were included in Prepaid expenses and other current assets on Houston Electric’s Condensed Consolidated Balance Sheets. The following tables provide a balance sheet overview of CenterPoint Energy’s derivative assets and liabilities as well as its offsetting of natural gas derivative activity in the periods presented: June 30, 2024 December 31, 2023 Balance Sheet Location Derivative Derivative Liabilities Derivative Derivative Liabilities CenterPoint Energy: (in millions) Derivatives not designated as hedging instruments: Natural gas derivatives (1) Current Liabilities: Non-trading derivative liabilities $ — $ 4 $ — $ 9 Natural gas derivatives (1) Other Liabilities: Non-trading derivative liabilities — 1 — 3 Indexed debt securities derivative (2) Current Liabilities — 538 — 605 Total $ — $ 543 $ — $ 617 (1) As of June 30, 2024 and December 31, 2023, the notional volume of natural gas derivatives were 32,251 MMBtu per day and 27,421 MMBtu per day, respectively. (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 and other payments to which they may be entitled. See Note 10 for further information. June 30, 2024 December 31, 2023 Gross Amounts Recognized Gross Amount Offset Net Amount Gross Amounts Recognized Gross Amount Offset Net Amount CenterPoint Energy: (in millions) Assets Current Assets: Non-trading derivative assets $ 2 $ (2) $ — $ — $ — $ — Total Assets $ 2 $ (2) $ — $ — $ — $ — Liabilities Current Liabilities: Non-trading derivative liabilities $ 6 $ (2) $ 4 $ 9 $ — $ 9 Other Liabilities: Non-trading derivative liabilities 1 — 1 3 — 3 Total Liabilities $ 7 $ (2) $ 5 $ 12 $ — $ 12 The following tables provide a balance sheet overview of CERC’s derivative assets and liabilities as well as its offsetting of natural gas derivative activity in the periods presented: June 30, 2024 December 31, 2023 Balance Sheet Location Derivative Derivative Liabilities Derivative Derivative Liabilities CERC: (in millions) Derivatives not designated as hedging instruments: Natural gas derivatives (1) Current Liabilities: Non-trading derivative liabilities $ — $ 3 $ — $ 8 Natural gas derivatives (1) Other Liabilities: Non-trading derivative liabilities — 1 — 3 Total $ — $ 4 $ — $ 11 (1) As of June 30, 2024 and December 31, 2023, the notional volume of natural gas derivatives were 27,644 MMBtu per day and 23,504 MMBtu per day, respectively. June 30, 2024 December 31, 2023 Gross Amounts Recognized Gross Amount Offset Net Amount Gross Amounts Recognized Gross Amount Offset Net Amount CERC: (in millions) Assets Current Assets: Non-trading derivative assets $ 2 $ (2) $ — $ — $ — $ — Total Assets $ 2 $ (2) $ — $ — $ — $ — Liabilities Current Liabilities: Non-trading derivative liabilities $ 5 $ (2) $ 3 $ 8 $ — $ 8 Other Liabilities: Non-trading derivative liabilities 1 — 1 3 — 3 Total Liabilities $ 6 $ (2) $ 4 $ 11 $ — $ 11 The table below provides the related income statement impacts of derivative activity for the periods presented: Three Months Ended Six Months Ended Income Statement Location 2024 2023 2024 2023 CenterPoint Energy: (in millions) Derivatives not designated as hedging instruments: Indexed debt securities derivative (1) Gain (loss) on indexed debt securities $ (18) $ 34 $ 67 $ (5) (1) The indexed debt securities derivative is recorded at fair value and changes in the fair value are recorded in CenterPoint Energy’s Condensed Statements of Consolidated Income. Cash inflows and outflows associated with derivatives are included in operating activities on the statement of cash flows. (c) Credit Risk Contingent Features (CenterPoint Energy and CERC) Certain of CenterPoint Energy’s and CERC’s derivative instruments contain provisions that require CenterPoint Energy and CERC to maintain an investment grade credit rating on their respective long-term unsecured unsubordinated debt from S&P and Moody’s. If CenterPoint Energy’s or CERC’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 or additional collateral. The table below sets forth additional detail for the periods presented: June 30, 2024 December 31, 2023 CenterPoint Energy CERC CenterPoint Energy CERC (in millions) Aggregate fair value of derivatives containing material adverse change provisions in a net liability position $ 6 $ 5 $ 9 $ 8 Fair value of collateral already posted — — — — Additional collateral required to be posted if credit risk contingent features triggered 6 5 9 8 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities that are recorded at fair value in the Registrants’ Condensed Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined below and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are exchange-traded derivatives and equity securities. Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets and inputs other than quoted prices that are observable for the asset or liability. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value 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. The following tables present information about the Registrants’ assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value. CenterPoint Energy June 30, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Equity securities $ 477 $ — $ — $ 477 $ 541 $ — $ — $ 541 Investments, including money market funds (1) 35 — — 35 31 — — 31 Total assets $ 512 $ — $ — $ 512 $ 572 $ — $ — $ 572 Liabilities Indexed debt securities derivative $ — $ 538 $ — $ 538 $ — $ 605 $ — $ 605 Natural gas derivatives — 5 — 5 — 12 — 12 Total liabilities $ — $ 543 $ — $ 543 $ — $ 617 $ — $ 617 Houston Electric June 30, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 20 $ — $ — $ 20 $ 14 $ — $ — $ 14 Total assets $ 20 $ — $ — $ 20 $ 14 $ — $ — $ 14 CERC June 30, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 15 $ — $ — $ 15 $ 15 $ — $ — $ 15 Total assets $ 15 $ — $ — $ 15 $ 15 $ — $ — $ 15 Liabilities Natural gas derivatives $ — $ 4 $ — $ 4 $ — $ 11 $ — $ 11 Total liabilities $ — $ 4 $ — $ 4 $ — $ 11 $ — $ 11 (1) Amounts are included in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. Items Measured at Fair Value on a Nonrecurring Basis As a result of classifying the Louisiana and Mississippi natural gas LDC businesses as held for sale, CenterPoint Energy and CERC used a market approach consisting of contractual sales price adjusted for estimated working capital and other contractual purchase price adjustments to determine the fair value of the businesses classified as held for sale, which are Level 2 inputs. Neither CenterPoint Energy nor CERC recognized any gains or losses upon classification as held for sale during the three and six months ended June 30, 2024. See Note 3 for further information. Estimated Fair Value of Financial Instruments The fair values of cash and cash equivalents, investments in debt and equity securities measured at fair value and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Condensed Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy. June 30, 2024 December 31, 2023 CenterPoint Energy (1) Houston Electric (1) CERC CenterPoint Energy (1) Houston Electric (1) CERC Long-term debt, including current maturities (in millions) Carrying amount $ 19,118 $ 8,005 $ 4,584 $ 18,609 $ 7,587 $ 4,670 Fair value 17,750 6,961 4,413 17,804 6,917 4,627 (1) Includes Securitization Bonds, as applicable. |
Goodwill (CenterPoint Energy an
Goodwill (CenterPoint Energy and CERC) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill (CenterPoint Energy and CERC) | Goodwill (CenterPoint Energy and CERC) CenterPoint Energy’s goodwill by reportable segment as of both June 30, 2024 and December 31, 2023 is as follows: December 31, 2023 Held For Sale June 30, 2024 (in millions) Electric (1) $ 936 $ — $ 936 Natural gas (2) 2,920 217 2,703 Corporate and other 304 — 304 Total $ 4,160 $ 217 $ 3,943 (1) Amount presented is net of the accumulated goodwill impairment charge of $185 million recorded in 2020. (2) If 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 Louisiana and Mississippi natural gas LDC businesses to be disposed of is classified as held for sale as of June 30, 2024. CenterPoint Energy has not recognized any goodwill impairments within the Natural Gas reportable segment during the six months ended June 30, 2024. For further information, see Note 3. CERC’s goodwill as of both June 30, 2024 and December 31, 2023 is as follows: December 31, 2023 Held For Sale June 30, 2024 (in millions) Goodwill (1) $ 1,583 $ 122 $ 1,461 (1) In connection with the classification of the Louisiana and Mississippi natural gas LDC businesses as held for sale as of June 30, 2024 described above, goodwill attributable to CERC to be disposed of as part of the transaction is classified as held for sale as of June 30, 2024. CERC has not recognized any goodwill impairments during the six months ended June 30, 2024. For further information, see Note 3. 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 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. |
Equity Securities and Indexed D
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) | Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) (a) Equity Securities Gains and losses on equity securities, net of transaction costs, are recorded in Gain (loss) on equity securities in CenterPoint Energy’s Condensed Statements of Consolidated Income. The following table presents unrealized gains (losses), net on equity securities owned by CenterPoint Energy for each period presented: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) AT&T Common $ 15 $ (34) $ 24 $ (25) Charter Common 7 9 (78) 25 WBD Common (3) (6) (10) 8 Other — — — (1) Total gains (losses) on equity securities, net $ 19 $ (31) $ (64) $ 7 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. The following table presents information on CenterPoint Energy’s equity securities for each period presented: Shares Held Carrying Value June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 (in millions) AT&T Common 10,212,945 10,212,945 $ 195 $ 171 Charter Common 872,503 872,503 261 339 WBD Common 2,470,685 2,470,685 18 28 Other 3 3 Total $ 477 $ 541 (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 June 30, 2024. 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: June 30, 2024 December 31, 2023 (in shares) AT&T Common 0.7185 0.7185 Charter Common 0.061382 0.061382 WBD Common 0.173817 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 attributable to the ZENS is less than or more than 2.309%. The adjusted principal amount is defined in the ZENS instrument as “contingent principal.” As of June 30, 2024, the ZENS, having an original principal amount of $828 million and a contingent principal amount of $13 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. |
Short-term Borrowings and Long-
Short-term Borrowings and Long-term Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Long-term Debt | Short-term Borrowings and Long-term Debt Inventory Financing. CenterPoint Energy’s and CERC’s Natural Gas businesses utilize third-party 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 2029. 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. Certain of these transactions are accounted for as an inventory financing. CenterPoint Energy and CERC had $2 million outstanding obligations related to the AMAs as of June 30, 2024 and $4 million as of December 31, 2023, recorded in Short-term borrowings on CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets. Debt Issuance. In February 2024, Houston Electric issued $400 million aggregate principal amount of 5.15% general mortgage bonds due 2034. Total proceeds, net of discount, transaction expenses and fees, were approximately $395 million, which were used for general limited liability company purposes, including capital expenditures and working capital purposes. In May 2024, CenterPoint Energy issued $700 million aggregate principal amount of 5.40% senior notes due 2029. Total proceeds, net of discount, transaction expenses and fees, were approximately $693 million, which were used for general corporate purposes, including the redemption of $350 million aggregate principal amount of CenterPoint’s outstanding floating rate senior notes due 2024, as further described below. In June 2024, CERC issued $400 million aggregate principal amount of 5.40% senior notes due 2034. Total proceeds, net of discount, transaction expenses and fees, were approximately $396 million, which were used for general corporate purposes, including working capital purposes. In June 2024, Houston Electric entered into a delayed draw term loan agreement pursuant to which the banks party thereto have committed to provide term loans in an aggregate principal amount of up to $300 million. The term loan agreement also permits Houston Electric to request additional commitments and/or additional loans, such additional commitments and/or loans not to exceed $200 million and subject to the satisfaction of certain customary conditions precedent. The borrowings under the term loan agreement bear interest at Houston Electric’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 1.0%, or (ii) the Alternate Base Rate (as defined in the term loan agreement). On June 28, 2024, Houston Electric borrowed $100 million and intends to use the proceeds thereof for working capital to support liquidity needs from the May 2024 Storm Events and for general limited liability company purposes. Convertible Senior Notes. Interest on the Convertible Notes is payable semiannually in arrears on February 15 and August 15 of each year, beginning on February 15, 2024. The Convertible Notes will mature on August 15, 2026, unless earlier converted or repurchased by CenterPoint Energy in accordance with their terms. Prior to the close of business on the business day immediately preceding May 15, 2026, the Convertible Notes are convertible only under certain conditions. On or after May 15, 2026 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Convertible Notes may convert all or any portion of their Convertible Notes at any time at the conversion rate then in effect, irrespective of the conditions. CenterPoint Energy may not redeem the Convertible Notes prior to the maturity date and no sinking fund is provided for the Convertible Notes. Upon conversion of the Convertible Notes, CenterPoint Energy will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of Common Stock, or a combination of cash and shares of Common Stock, at CenterPoint Energy’s election, in respect of the remainder, if any, of CenterPoint Energy’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. The conversion rate for the Convertible Notes is initially 27.1278 shares of Common Stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $36.86 per share of Common Stock). The initial conversion price of the Convertible Notes represents a premium of approximately 25.0% over the last reported sale price of the Common Stock on the NYSE on August 1, 2023. Initially, a maximum of 33,909,700 shares of Common Stock may be issued upon conversion of the Convertible Notes based on the initial maximum conversion rate of 33.9097 shares of Common Stock per $1,000 principal amount of Convertible Notes. The conversion rate will be subject to adjustment in some events (as described in the Convertible Notes Indenture) but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date of the Convertible Notes, CenterPoint Energy will, in certain circumstances, increase the conversion rate for a holder of Convertible Notes who elects to convert its Convertible Notes in connection with such a corporate event. If CenterPoint Energy undergoes a fundamental change (as described in the Convertible Notes Indenture), holders of the Convertible Notes may require CenterPoint Energy to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Convertible Notes are senior unsecured obligations of CenterPoint Energy and rank senior in right of payment to any of CenterPoint Energy’s indebtedness that is expressly subordinated in right of payment to the Convertible Notes; equal in right of payment to any of CenterPoint Energy’s unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of CenterPoint Energy’s secured indebtedness it may incur in the future to the extent of the value of the assets securing such future secured indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables but excluding intercompany obligations and liabilities of a type not required to be reflected on a balance sheet of such subsidiaries in accordance with generally accepted accounting principles) of CenterPoint Energy’s subsidiaries. Debt Redemption. In March 2024, CenterPoint Energy, through its wholly-owned subsidiary SIGECO, redeemed $22 million aggregate principal amount of SIGECO’s outstanding 3.50% first mortgage bonds due 2024 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. In May 2024, CenterPoint Energy redeemed $350 million aggregate principal amount of its outstanding floating rate senior notes due 2024 at a redemption price equal to 100% of the principal amount to be redeemed plus accrued and unpaid interest thereon. Credit Facilities . The Registrants had the following revolving credit facilities as of June 30, 2024: 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 June 30, 2024 (2) Termination Date (in millions) December 6, 2022 CenterPoint Energy $ 2,400 1.500% 65.0% (3) 59.1% December 6, 2027 December 6, 2022 CenterPoint Energy (4) 250 1.125% 65.0% 47.6% December 6, 2027 December 6, 2022 Houston Electric 300 1.250% 67.5% (3) 53.0% December 6, 2027 December 6, 2022 CERC 1,050 1.125% 65.0% 38.5% December 6, 2027 Total $ 4,000 (1) Based on credit ratings as of June 30, 2024. (2) As defined in the revolving credit facility agreements, 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 June 30, 2024. The table below reflects the utilization of the Registrants’ respective revolving credit facilities: June 30, 2024 December 31, 2023 Registrant Loans Letters Commercial Weighted Average Interest Rate Loans Letters Commercial Weighted Average Interest Rate (in millions, except weighted average interest rate) CenterPoint Energy $ — $ — $ 897 5.47 % $ — $ — $ 1,036 5.54 % CenterPoint Energy (1) — — — — % — — — — % Houston Electric — — — — % — — — — % CERC — 1 — — % — 1 484 5.53 % Total $ — $ 1 $ 897 $ — $ 1 $ 1,520 (1) This credit facility was issued by SIGECO. (2) CenterPoint Energy’s and CERC’s outstanding commercial paper generally have maturities of up to 60 days and 30 days, respectively, and are backstopped by the respective issuer’s long-term revolving credit facility. Neither Houston Electric nor SIGECO has a commercial paper program. Liens. As of June 30, 2024, Houston Electric’s assets were subject to liens securing approximately $8 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 June 30, 2024. 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 June 30, 2024, SIGECO had approximately $825 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 which was amended and restated effective as of January 1, 2023. As of June 30, 2024, SIGECO was permitted to issue additional bonds under its mortgage indenture up to 70% of then currently unfunded property additions and approximately $926 million of additional first mortgage bonds could be issued on this basis. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Registrants reported the following effective tax rates: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 CenterPoint Energy (1) 13 % 46 % 16 % 29 % Houston Electric (2) 20 % 21 % 20 % 22 % CERC (3) 24 % 20 % 19 % 22 % (1) CenterPoint Energy’s lower effective tax rate for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was primarily due to the absence of impacts associated with the sale of Energy Systems Group recorded in 2023 and a decrease in state income taxes. CenterPoint Energy’s lower effective tax rate for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was primarily due to the absence of impacts associated with the sale of Energy Systems Group recorded in 2023, a decrease in state income taxes, and the tax impacts of the state deferred remeasurement benefit of $25 million related to the Louisiana and Mississippi natural gas LDC businesses sale, which met the held for sale criteria in the first quarter of 2024 and is described further below, partially offset by the tax impacts of the valuation allowance of $21 million established against Louisiana and Mississippi NOLs, since those NOLs will not be utilized due to the Louisiana and Mississippi natural gas LDC businesses sale. See Note 3 for further details. (2) Houston Electric’s lower effective tax rate for the three and six months ended June 30, 2024 compared to the same period ended June 30, 2023 was primarily driven by a decrease in state income taxes. (3) CERC’s higher effective tax rate for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was primarily driven by an increase in state income taxes. CERC’s lower effective tax rate for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was primarily driven by the tax impacts of the state deferred remeasurement benefit of $24 million associated with the Louisiana and Mississippi natural gas LDC businesses sale meeting the held for sale criteria in the first quarter of 2024. For tax purposes, when the held for sale criteria is met, the CERC and unitary state apportionment rates must be updated to account for the sale and applied to the estimated post-sale net deferred tax liability. This impact was partially offset by the tax impacts of a valuation allowance of $21 million against Louisiana and Mississippi NOLs, since those NOLs will not be utilized due to the Louisiana and Mississippi natural gas LDC businesses sale. CenterPoint Energy reported a net uncertain tax liability, inclusive of interest and penalties, of $30 million as of June 30, 2024. The Registrants believe that it is reasonably possible that the Registrants will recognize a $3 million tax benefit, including penalties and interest, in the next 12 months as a result of a lapse of statutes on the 2020 Indiana state return. Tax Audits and Settlements . Tax years through 2022 have been audited and settled with the IRS for CenterPoint Energy. For tax years 2023-2024, the Registrants are participants in the IRS’s Compliance Assurance Process. Vectren’s pre-Merger 2014-2019 tax years have been audited and settled with the IRS. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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 Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023. 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 February 1, 2023, Indiana Electric entered into an amended and restated BTA to purchase the 191 MW Posey Solar project for a fixed purchase price over the anticipated 35-year life. 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 filed the updated CPCN with a request that project costs, net of PTCs, be recovered in rate base, through base rates or the CECA mechanism, depending on which provides more timely recovery. On September 6, 2023, the IURC issued an order approving the CPCN. The Posey Solar project is expected to be placed in service in 2025. On January 11, 2023, the IURC issued an order approving the settlement agreement granting Indiana Electric a CPCN to purchase and acquire the 130 MW Pike County solar project through a BTA and approved the estimated cost. The IURC also designated the project as a clean energy project as well as approved the proposed levelized rate and associated ratemaking and accounting treatment. Due to inflationary pressures, the developer disclosed that costs exceeded the agreed upon levels in the BTA. After negotiations, Indiana Electric and the developer were not able to agree upon updated pricing. As a result, on February 27, 2024, Indiana Electric provided notice that it was exercising its right to terminate the BTA, which terminated all further obligations of Indiana Electric with respect to the project. As of June 30, 2024, other than discussed below, minimum purchase obligations were approximately: CenterPoint Energy CERC Natural Gas Supply Electric Supply (1) Other (2) Natural Gas Supply (in millions) Remaining six months of 2024 $ 314 $ 84 $ 60 $ 311 2025 613 459 53 609 2026 551 111 55 547 2027 474 105 10 471 2028 431 68 7 427 2029 417 66 1 414 2030 and beyond 1,446 701 242 1,424 (1) CenterPoint Energy’s undiscounted minimum payment obligations related to PPAs with commitments ranging from 15 years to 25 years and its purchase commitments under its BTA in Posey County, Indiana at the original contracted amount. (2) The 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) Guarantees and Product Warranties (CenterPoint Energy) On May 21, 2023, CenterPoint Energy, through Vectren Energy Services, entered into the Equity Purchase Agreement to sell Energy Systems Group. The sale closed on June 30, 2023. See Note 3 for further information. In the normal course of business prior to the consummation of the transaction on June 30, 2023, CenterPoint Energy, primarily through Vectren, issued parent company level guarantees supporting Energy Systems Group ’s obligations. When Energy Systems Group was wholly owned by CenterPoint Energy, these guarantees did not represent incremental consolidated obligations, but rather, these guarantees represented guarantees of Energy Systems Group’s obligations to allow it to conduct business without posting other forms of assurance. For those obligations where potential exposure can be estimated, management estimates the maximum exposure under these guarantees to be approximately $484 million as of June 30, 2024 and expects the exposure to decrease pro rata. 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, were issued prior to the sale of Energy Systems Group in support of federal operations and maintenance projects for which a maximum exposure cannot be estimated based on the nature of the projects. Under the terms of the Equity Purchase Agreement, ESG Holdings Group must generally use reasonable best efforts to replace existing CenterPoint Energy guarantees with credit support provided by a party other than CenterPoint Energy as of and after the closing of the transaction. The Equity Purchase Agreement also requires certain protections to be provided for any damages incurred by CenterPoint Energy in relation to these guarantees not released by closing. No additional guarantees were provided by CenterPoint Energy in favor of Energy Systems Group subsequent to the closing of the sale on June 30, 2023. 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. CenterPoint Energy believes that, from Energy Systems Group ’s inception in 1994 to the closing of the sale of Energy Systems Group on June 30, 2023, Energy Systems Group had a history of generally meeting its performance obligations and energy savings guarantees and its installed products operated effectively. CenterPoint Energy recorded no amounts on its Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 related to its obligation under the outstanding guarantees. (c) Legal, Environmental and Other Matters Legal Matters Litigation Related to Hurricane Beryl. Various federal, state and local governmental and regulatory agencies and other entities, such as the Texas Governor’s office, the Texas Legislature and the PUCT, have called for or are conducting inquiries and investigations into Hurricane Beryl and the efforts made by Houston Electric to prepare for, and respond to, this event, including the electric service outage issues. Moreover, additional governmental and regulatory agencies and other entities may conduct such inquiries and investigations, as well. There are significant uncertainties around these inquiries and investigations and potential results and consequences, including whether any financial penalties will be assessed or changes to Houston Electric’s system, service territories, operations and/or regulatory treatment will result therefrom. CenterPoint Energy and Houston Electric are subject to current and potential future litigation and claims arising out of Hurricane Beryl, which litigation and claims could include allegations of, among other things, personal injury, property damage, various economic losses in connection with loss of power, unlawful business practices, and others. Three putative class actions have been filed against CenterPoint Energy in the District Courts of Harris County, Texas, on behalf of individuals or entities who claim losses due to power outages following Hurricane Beryl: (1) all restaurants in Harris County, Galveston County, and Montgomery County; (2) all residential customers; and (3) all health, wellness, medical and beauty facilities in Harris County. These putative classes assert claims and theories of negligence, gross negligence, nuisance, fraud, and/or violation of the Texas Deceptive Trade Practices Act, and each seeks damages in excess of $100 million for, among other things, business interruption, property damage and loss, cost of repair, loss of use and market value, lost income, nuisance, extreme mental anguish and/or punitive damages. In addition, an individual action has been filed in Harris County District Court asserting claims of negligence, negligence per se and gross negligence against CenterPoint Energy and Houston Electric. The plaintiff in this action alleges personal injury from a power line and seeks damages in excess of $1 million. CenterPoint Energy and Houston Electric intend to vigorously defend themselves against the lawsuits. 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 some allegations, however, it is possible that the insurers could dispute coverage for some types of claims or damages that may be alleged by plaintiffs. CenterPoint Energy and Houston Electric intend to continue to pursue all available insurance coverage for all of these matters. For more information regarding Hurricane Beryl, see Note 20. Litigation Related to the February 2021 Winter Storm Event. Various legal proceedings are still pending against numerous entities with respect to the February 2021 Winter Storm Event, including against CenterPoint Energy, Utility Holding, 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 been named in litigation alleging gas market manipulation. CenterPoint Energy, Utility Holding, 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 claims and lawsuits filed by plaintiffs alleging wrongful death, personal injury, property damage and other injuries and damages. As of June 30, 2024, there are approximately 220 pending lawsuits that are consolidated in Texas state court in Harris County, Texas, as part of the MDL 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 155 of those lawsuits. One of the lawsuits in the MDL 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 is currently named as a defendant in one lawsuit in which CenterPoint Energy and Houston Electric are also named as defendants. The judge overseeing the MDL 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. In a subsequent opinion in an unrelated matter, the Texas Supreme Court held that ERCOT is entitled to sovereign immunity. This ruling will apply to claims against ERCOT in the MDL. The MDL judge also dismissed all claims against the natural gas defendants (which list of natural gas defendants incorrectly included Utility Holding) and the REP defendants and some causes of action against the other defendants. CenterPoint Energy expects that the claims against Utility Holding will ultimately be dismissed in light of the judge’s initial rulings. 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 asked the courts of appeals to overturn. On April 2, 2024, a three-judge panel of the Court of Appeals for the Fourteenth District of Texas issued an opinion in the TDU mandamus proceeding, granting in part and denying in part the TDUs’ mandamus request. In its opinion, the panel granted the TDUs’ mandamus request relating to the TDUs’ motion to dismiss the plaintiffs’ claims for negligence and negligent and strict liability nuisance and ordered those claims be dismissed. The panel denied the TDUs’ mandamus request relating to the TDUs’ motion to dismiss the plaintiffs’ gross negligence and intentional nuisance claims. On May 22, 2024, the TDUs filed a mandamus petition with the Supreme Court of Texas, seeking dismissal of the remaining claims. On June 28, 2024, the Supreme Court of Texas requested a response from the plaintiffs to the mandamus petition, and the plaintiffs filed their response on July 26, 2024. In the generator mandamus proceeding pending in the Court of Appeals for the First District of Texas, the plaintiffs have asked the entire First Court of Appeals to rehear the panel’s decision granting the generators’ mandamus request. The MDL judge is allowing defendants (including Houston Electric) to file several additional motions on preliminary legal issues, and otherwise the cases remain stayed. CenterPoint Energy, Utility Holding, 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, twelve 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 a defendant, along with “CenterPoint Energy Services, Inc.,” incorrectly identifying it as CERC’s parent company (CenterPoint Energy previously divested CES). One lawsuit filed in Harris County 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. Two other lawsuits (one filed in Harris County and one in Tom Green County) 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. These, and nine other similar lawsuits filed in Harris County, generally 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. As of June 30, 2024, most of the lawsuits have not been served, but the three cases in which defendants were served were tagged for transfer to the existing MDL proceeding referenced above. On February 2, 2024, CERC filed pleas to the jurisdiction in the three cases in which it was served; CERC also partially joined the other defendants’ motions to dismiss and additional pleas to the jurisdiction. On April 2, 2024, plaintiffs in the three served cases filed amended petitions rather than responding to pleas to the jurisdiction and motions to dismiss. Among other changes, plaintiffs in these three cases dismissed CES, but maintained the same three causes of action as to the remaining defendants. CERC has vigorously defended itself against the claims raised, including filing updated pleas to the jurisdiction on May 17, 2024 in response to plaintiffs’ amended petitions – and will continue to do so. The nine other similar lawsuits filed in Harris County have also been tagged for transfer to the MDL proceeding, but the defendants, including CERC, have not been served. These gas market cases are in addition to the 220 cases noted above regarding electric market issues. 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. As CenterPoint Energy previously noted, given the nature of certain of the plaintiffs’ allegations, insurance coverage may not be available other than for third party bodily injury and property damage claims caused by an accident, and one of CenterPoint Energy’s insurers has reserved its rights with respect to coverage for plaintiffs’ intentional nuisance claims as well as plaintiffs’ claims in the gas market cases. CenterPoint Energy and its subsidiaries intend to continue to pursue all available insurance coverage for all of these matters. Jefferson Parish . Several parishes and the State of Louisiana filed 42 suits under Louisiana’s State and Local Coastal Resources Management Act (SLCRMA) against hundreds of oil and gas companies seeking compensatory damages for contamination and erosion of the Louisiana coastline allegedly caused by historical oil and gas operations. One of the defendants in one of the lawsuits (filed in 2013 only by the Parish of Jefferson) is Primary Fuels, Inc., a predecessor company of CenterPoint Energy, which operated in Louisiana from 1983-1989. All 42 suits were removed to Louisiana federal courts twice and were stayed for several years pending the district courts’ consideration of various motions to remand and multiple appeals of remand orders. Recently, several cases involving other parishes that had been remanded to Louisiana state court have begun to resume proceedings in state court. However, as of June 30, 2024, the federal district court had not ruled on Jefferson Parish’s motion to remand to state court the lawsuit which includes Primary Fuels, Inc. among the defendants. Because of the procedurally preliminary nature of the proceedings, lack of information about both the scope of and damages for Jefferson Parish’s claim against Primary Fuels, Inc., 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 this matter or to estimate a range of potential losses. CenterPoint Energy will continue to vigorously defend itself against the claims raised and pursue any and all available insurance coverage. 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 five 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: June 30, 2024 CenterPoint Energy CERC (in millions, except years) Amount accrued for remediation $ 13 $ 11 Minimum estimated remediation costs 8 7 Maximum estimated remediation costs 47 40 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 a portion 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. 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. 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 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 were necessary to determine the remaining service life of the ponds and whether a pond must be retrofitted with liners or closed in place. 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. On October 5, 2022, the EPA issued a proposed conditional approval of the Part A extension request for the A.B. Brown pond. Both the Culley East and A.B. Brown facilities have been taken out of service in a timely manner per the commitments made to the EPA in the extension requests filed for both ponds. 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 sought accounting and ratemaking relief for the project, and on June 8, 2023, Indiana Electric filed a revised CPCN for recovery of the federally mandated ash pond costs. On February 7, 2024 the IURC approved the federally mandated costs, both incurred and projected, of $52 million in capital costs, plus an estimated $133 thousand in annual operation and maintenance expenses, for recovery through the ECA. As of June 30, 2024, CenterPoint Energy has recorded an approximate $118 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. On May 18, 2023, the EPA issued a proposed revision to the CCR Rule that could potentially expand the scope of units regulated under the federal CCR Rule (CCR Legacy Rule). The CCR Legacy Rule seeks to include legacy CCR surface impoundments (inactive surface impoundments at inactive generating facilities) as well as new “CCR management units” at active or inactive facilities otherwise subject to federal CCR regulations. On April 25, 2024, the EPA released its final Hazardous and Solid Waste Management System; Disposal of Coal Combustion Residuals from Electric Utilities; Legacy CCR Surface Impoundments rule, which was published in the federal register in May 2024. The CCR Legacy Rule requires companies to investigate previously closed impoundments that were used historically for ash disposal or locations which have had ash placed on them in amounts set forth in the CCR Legacy Rule. The Registrants have completed their preliminary review of potential sites that will require further investigation under the CCR Legacy Rule and identified three sites in Indiana for further evaluation. These site investigations are necessary to confirm whether ash is still present, and in what quantity, in order to assess whether Indiana Electric has potential liability for closure and remediation of the sites under the CCR Legacy Rule. If a site or sites are determined to require remediation under the CCR Legacy Rule, Indiana Electric may be required to remove and dispose of ash and, if necessary, undertake groundwater corrective action. As of June 30, 2024, based on the investigations performed to date, no liability was recorded at Indiana Electric. Clean Water Act Permitting of Groundwater and Power Plant 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. On November 27, 2023, the EPA published draft guidance regarding the application of the “functional equivalent” analysis as related to permitting of certain discharges through groundwater to surface waters. The Registrants do not currently anticipate impacts from this guidance, but groundwater monitoring continues under the CCR Rule. In 2015, the EPA finalized revisions to the existing steam electric wastewater discharge standards which set more stringent wastewater discharge limits and effectively prohibited further wet disposal of coal ash in ash ponds. In February 2019, the IURC approved Indiana Electric’s Effluent Limitation Guidelines Compliance Plan for its F.B. Culley Generating Station, which was completed in compliance with the requirements of the Effluent Limitation Guidelines. On April 25, 2024, the EPA released its final Supplemental Effluent Limitation Guidelines and Standards for the Ste |
Earnings Per Share (CenterPoint
Earnings Per Share (CenterPoint Energy) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (CenterPoint Energy) | Earnings Per Share (CenterPoint Energy) Basic earnings per common share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Participating securities are excluded from weighted average number of common shares outstanding in the computation of basic earnings per common share. Diluted earnings per common share is computed by dividing income available to common shareholders 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 common share reflects the dilutive effect of potential common shares from share-based awards. The dilutive effect of restricted stock is computed using the if-converted method, which assumes conversion of the restricted stock at the beginning of the period. 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. Diluted earnings per common share will also reflect the dilutive effect of potential common shares from the conversion of the Convertible Notes. Convertible debt in which the principal amount must be settled in cash is excluded from the calculation of diluted earnings per common share. There would be no interest expense adjustment to the numerator for the cash-settled portion of the Convertible Notes because that portion will always be settled in cash. The conversion spread value in shares will be included in diluted earnings per common share using the if-converted method if the convertible debt is in the money. The denominator of diluted earnings per common share is determined by dividing the conversion spread value of the share-settled portion of the Convertible Notes as of the reporting date by the average share price over the reporting period. For the three and six months ended June 30, 2024, the convertible debt was not in the money; therefore, no incremental shares were assumed converted or included in the diluted earnings per share calculation below. For further details about the Convertible Notes, see Note 11 . The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions, except per share and share amounts) Numerator: Net income $ 228 $ 118 $ 578 $ 443 Less: Preferred stock dividend requirement (Note 18) — 12 — 24 Income available to common shareholders – basic and diluted $ 228 $ 106 $ 578 $ 419 Denominator: Weighted average common shares outstanding – basic 640,754,000 631,057,000 636,491,000 630,685,000 Plus: Incremental shares from assumed conversions: Restricted stock 1,062,000 1,948,000 1,402,000 2,345,000 Weighted average common shares outstanding – diluted 641,816,000 633,005,000 637,893,000 633,030,000 Earnings Per Common Share: Basic Earnings Per Common Share $ 0.36 $ 0.17 $ 0.91 $ 0.66 Diluted Earnings Per Common Share $ 0.36 $ 0.17 $ 0.91 $ 0.66 |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Reportable Segments | 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. As of June 30, 2024, reportable segments by Registrant were as follows: CenterPoint Energy • CenterPoint Energy’s Electric reportable segment consists 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 category consists of energy performance contracting and sustainable infrastructure services through Energy Systems Group through June 30, 2023, the date of the sale of Energy Systems Group, and corporate operations which support all of the business operations of CenterPoint Energy. CenterPoint Energy’s Corporate and Other also includes office buildings and other real estate used for business operations. Houston Electric • Houston Electric’s single reportable segment consists of electric transmission services to transmission service customers in the ERCOT region and distribution services to REPs serving the Texas gulf coast area that includes the city of Houston. 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. Financial data for reportable segments is as follows: CenterPoint Energy Three Months Ended June 30, 2024 2023 Revenues from Net Income (Loss) Revenues from Net Income (Loss) (in millions) Electric $ 1,207 $ 215 $ 1,037 $ 180 Natural Gas 695 47 764 35 Corporate and Other 3 (34) 74 (97) Consolidated $ 1,905 $ 228 $ 1,875 $ 118 Six Months Ended June 30, 2024 2023 Revenues from Net Income (Loss) Revenues from Net Income (Loss) (in millions) Electric $ 2,256 $ 336 $ 1,989 $ 303 Natural Gas 2,265 330 2,539 269 Corporate and Other 4 (88) 126 (129) Consolidated $ 4,525 $ 578 $ 4,654 $ 443 Total Assets June 30, 2024 December 31, 2023 (in millions) Electric $ 22,176 $ 21,089 Natural Gas 17,669 17,429 Corporate and Other, net of eliminations (1) 1,131 1,197 Consolidated $ 40,976 $ 39,715 (1) Total assets included pension and other postemployment-related regulatory assets of $374 million and $385 million as of June 30, 2024 and December 31, 2023, respectively. 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. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow and Balance Sheet Information | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow and Balance Sheet Information | Supplemental Disclosure of Cash Flow and Balance Sheet Information Supplemental Disclosure of Cash Flow Information The table below provides supplemental disclosure of cash flow information: Six Months Ended June 30, 2024 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash Payments/Receipts: Interest, net of capitalized interest $ 404 $ 142 $ 111 $ 317 $ 128 $ 82 Income tax payments (refunds), net (4) 25 6 154 1 34 Non-cash transactions: Accounts payable related to capital expenditures 517 432 89 297 164 133 ROU assets obtained in exchange for lease liabilities (1) 5 — — 3 1 — (1) Excludes ROU assets obtained through prepayment of the lease liabilities. See Note 19. The table below provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the amount reported in the Condensed Statements of Consolidated Cash Flows: June 30, 2024 December 31, 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash and cash equivalents (1) $ 66 $ 61 $ 1 $ 90 $ 76 $ 1 Restricted cash included in Prepaid expenses and other current assets (2) 16 13 — 19 13 — Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows $ 82 $ 74 $ 1 $ 109 $ 89 $ 1 (1) Cash and cash equivalents related to VIEs as of June 30, 2024 and December 31, 2023 included $66 million and $90 million, respectively, at CenterPoint Energy and $61 million and $76 million, respectively, at Houston Electric. (2) Restricted cash primarily related to accounts established by CenterPoint Energy and Houston Electric in connection with the issuance of the Securitization Bonds to collateralize the Securitization Bonds that were issued in these financing transactions. These restricted cash accounts are not available for withdrawal until the maturity of the Securitization Bonds. Supplemental Disclosure of Balance Sheet Information Included in other current liabilities on CERC’s Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 was $76 million and $118 million, respectively, of credits related to customers on budget billing programs. Included in other current liabilities on Houston Electric’s Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 was $68 million and $47 million, respectively, of accrued contributions in aid of construction. |
Related Party Transactions (Hou
Related Party Transactions (Houston Electric and CERC) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions (Houston Electric and CERC) | Related Party Transactions (Houston Electric and CERC) Houston Electric and CERC participate in CenterPoint Energy’s 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 CenterPoint Energy 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 CenterPoint Energy money pool activity: June 30, 2024 December 31, 2023 Houston Electric CERC Houston Electric CERC (in millions, except interest rates) Money pool investments, net (1) $ 287 $ 72 $ 238 $ 1 Weighted average interest rate 5.54 % 5.54 % 5.59 % 5.59 % (1) Included in Accounts and notes receivable–affiliated companies on Houston Electric’s and CERC’s respective Condensed Consolidated Balance Sheets, as applicable. 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 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 were as follows and are included primarily in Operation and maintenance expenses on the Condensed Statements of Consolidated Income: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Corporate service charges $ 44 $ 55 $ 40 $ 56 $ 79 $ 106 $ 75 $ 106 Net affiliate service charges (billings) (2) 2 (3) 3 (3) 3 (6) 6 The table below presents transactions among Houston Electric, CERC and their parent, Utility Holding: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Cash dividends paid to parent $ 119 $ 131 $ 109 $ 107 $ 155 $ 246 $ 160 $ 311 Cash contribution from parent — 290 — 500 230 290 650 500 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | Equity Dividends Declared and Paid (CenterPoint Energy) CenterPoint Energy declared and paid dividends on its Common Stock as follows during the periods indicated below: Dividends Declared Per Share Dividends Paid Per Share Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Common Stock $ 0.200 $ 0.190 $ 0.200 $ 0.190 $ 0.200 $ 0.190 $ 0.400 $ 0.380 Series A Preferred Stock (1) — — — — — — — 30.625 (1) All of the outstanding shares of Series A Preferred Stock were redeemed during September 2023 as further described below. Equity Distribution Agreement (CenterPoint Energy) On January 10, 2024, CenterPoint Energy entered into an Equity Distribution Agreement with certain financial institutions with respect to the offering and sale from time to time of shares of Common Stock, having an aggregate gross sales price of up to $500 million. Sales of Common Stock may be made by any method permitted by applicable law and deemed to be an “at the market offering” as defined in Rule 415 of the Securities Act of 1933, as amended. CenterPoint Energy may also enter into one or more forward sales agreements pursuant to master forward confirmations. The offer and sale of Common Stock under the Equity Distribution Agreement will terminate upon the earliest of (1) the sale of all Common Stock subject to the Equity Distribution Agreement, (2) termination of the Equity Distribution Agreement, or (3) May 17, 2026. During the three months ended June 30, 2024, CenterPoint Energy issued 8,657,443 shares of Common Stock through the ATM Managers under the Equity Distribution Agreement, representing aggregate cash proceeds of $244 million, which is net of compensation paid by CenterPoint Energy to the ATM Managers of $2 million. During the six months ended June 30, 2024, CenterPoint Energy issued 8,790,848 shares of Common Stock through the ATM Managers under the Equity Distribution Agreement, representing aggregate cash proceeds of $247 million, which is net of compensation paid by CenterPoint Energy to the ATM Managers of $2 million. As of June 30, 2024, CenterPoint Energy had not entered into any forward sale agreements under the at-the-market program. Additionally, as of June 30, 2024, CenterPoint Energy had $250 million of remaining capacity available under the program. Income Allocated to Series A Preferred Shareholders (CenterPoint Energy) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Series A Preferred Stock (1) $ — $ 12 $ — $ 24 Total income allocated to preferred shareholders $ — $ 12 $ — $ 24 (1) All of the outstanding shares of Series A Preferred Stock were redeemed during September 2023 as further described below. Series A Preferred Stock Redemption (CenterPoint Energy) On September 1, 2023, CenterPoint Energy redeemed 800,000 shares of CenterPoint Energy’s Series A Preferred Stock, in whole for cash at a redemption price of $1,000 per share, plus any accumulated and unpaid dividends thereon to, but excluding, the redemption date. Accumulated Other Comprehensive Income (Loss) Changes in accumulated comprehensive income (loss) are as follows: Three Months Ended June 30, 2024 2023 CenterPoint Energy CERC CenterPoint Energy CERC (in millions) Beginning Balance $ (33) $ 15 $ (32) $ 15 Other comprehensive income before reclassifications: Net deferred gain from cash flow hedges 1 — — — Prior service cost (1) 2 — — — Other comprehensive income 3 — — — Ending Balance $ (30) $ 15 $ (32) $ 15 Six Months Ended June 30, 2024 2023 CenterPoint Energy CERC CenterPoint Energy CERC (in millions) Beginning Balance $ (35) $ 16 $ (31) $ 16 Other comprehensive income (loss) before reclassifications: Remeasurement of pension and other postretirement plans (2) — — — Net deferred gain from cash flow hedges 4 — — — Prior service cost (1) 2 — (1) (1) Actuarial losses (1) 1 (1) — — Other comprehensive income (loss) 5 (1) (1) (1) Ending Balance $ (30) $ 15 $ (32) $ 15 (1) Amounts are included in the computation of net periodic cost and are reflected in Other income, net in each of the Registrants’ respective Condensed Statements of Consolidated Income. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases In 2021, Houston Electric entered into a temporary short-term lease and long-term leases for mobile generation. The short-term lease agreement allowed 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. At such time, the short-term lease agreement expired and all mobile generation assets were 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, net of amounts recovered in rates, $95 million and $100 million as of June 30, 2024 and December 31, 2023, respectively. The long-term lease agreement includes up to 505 MW of TEEEF, all of which was delivered as of December 31, 2022, triggering lease commencement at delivery, with an initial term ending in 2029 for all TEEEF leases. 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 June 30, 2024 and December 31, 2023 and relates to removal costs that will be incurred at the end of the lease term. As of June 30, 2024, Houston Electric has secured a first lien on the assets leased under the prepayment agreement, except for assets with lease payments totaling $88 million. The $88 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 for 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, net of amounts recovered in rates, $139 million and $124 million as of June 30, 2024 and December 31, 2023, 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 are 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. The disallowance reimbursement clause expired on December 31, 2023 and Houston Electric can no longer seek relief in the event of an unfavorable regulatory ruling. For further discussion of the regulatory impacts, see Note 6. 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 6 for further information regarding recovery of these deferred costs. The components of lease cost, included in Operation and maintenance expense on the Registrants’ respective Condensed Statements of Consolidated Income, are as follows: Three Months Ended June 30, 2024 2023 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease cost $ 1 $ 1 $ 1 $ 1 $ — $ 1 Short-term lease cost 6 5 — 13 14 — Total lease cost (1) $ 7 $ 6 $ 1 $ 14 $ 14 $ 1 Six Months Ended June 30, 2024 2023 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease cost $ 2 $ 2 $ 1 $ 3 $ 1 $ 1 Short-term lease cost 8 7 — 13 13 — Total lease cost (1) $ 10 $ 9 $ 1 $ 16 $ 14 $ 1 (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 Condensed Statements of Consolidated Income. The components of lease income were as follows: Three Months Ended June 30, 2024 2023 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease income $ 1 $ — $ 1 $ 1 $ — $ 1 Variable lease income 1 — — — — — Total lease income $ 2 $ — $ 1 $ 1 $ — $ 1 Six Months Ended June 30, 2024 2023 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease income $ 3 $ — $ 2 $ 3 $ — $ 2 Variable lease income 1 — — 1 — — Total lease income $ 4 $ — $ 2 $ 4 $ — $ 2 Supplemental balance sheet information related to leases was as follows: June 30, 2024 December 31, 2023 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions, except lease term and discount rate) Assets: Operating ROU assets (1) $ 17 $ 6 $ 4 $ 13 $ 6 $ 4 Finance ROU assets (2) 478 478 — 526 526 — Total leased assets $ 495 $ 484 $ 4 $ 539 $ 532 $ 4 Liabilities: Current operating lease liability (3) $ 3 $ 1 $ 1 $ 3 $ 1 $ 1 Non-current operating lease liability (4) 14 4 3 10 5 3 Total leased liabilities (5) $ 17 $ 5 $ 4 $ 13 $ 6 $ 4 Weighted-average remaining lease term (in years) - operating leases 11.6 3.4 3.4 4.7 3.9 3.1 Weighted-average discount rate - operating leases 4.49 % 4.11 % 3.95 % 4.13 % 4.09 % 3.60 % Weighted-average remaining lease term (in years) - finance leases 5 5 — 5.5 5.5 — Weighted-average discount rate - finance leases 3.60 % 3.60 % — 3.60 % 3.60 % — (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 significant as of June 30, 2024 or December 31, 2023 and are reported within Other long-term debt in the Registrants’ respective Condensed Consolidated Balance Sheets when applicable. As of June 30, 2024, finance lease liabilities were not significant to the Registrants. As of June 30, 2024, maturities of operating lease liabilities were as follows: CenterPoint Houston CERC (in millions) Remainder of 2024 $ 2 $ 1 $ 1 2025 4 2 2 2026 4 1 1 2027 2 1 — 2028 1 — — 2029 10 — — 2030 and beyond 1 — — Total lease payments 24 5 4 Less: Interest 7 — — Present value of lease liabilities $ 17 $ 5 $ 4 As of June 30, 2024, future minimum finance lease payments to be received were not significant to the Registrants. As of June 30, 2024, maturities of undiscounted operating lease payments to be received are as follows: CenterPoint Houston CERC (in millions) Remainder of 2024 $ 3 $ — $ 2 2025 6 1 4 2026 7 — 5 2027 7 — 5 2028 7 — 5 2029 7 — 6 2030 and beyond 158 — 156 Total lease payments to be received $ 195 $ 1 $ 183 Other information related to leases is as follows: Six Months Ended June 30, 2024 2023 CenterPoint Houston CERC CenterPoint Houston CERC (in millions) Operating cash flows from operating leases included in the measurement of lease liabilities $ 2 $ 1 $ 1 $ 3 $ 1 $ 1 See Note 16 for information on ROU assets obtained in exchange for operating lease liabilities. |
Subsequent Events (CenterPoint
Subsequent Events (CenterPoint Energy and Houston Electric) | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events (CenterPoint Energy and Houston Electric) | Subsequent Events (CenterPoint Energy and Houston Electric) Hurricane Beryl On July 8, 2024, Hurricane Beryl made landfall in Texas, bringing sustained winds, storm surges and torrential rain into Houston Electric’s service territory. Hurricane Beryl caused significant damage to Houston Electric’s electric delivery system. Houston Electric currently estimates that total costs to restore the electric delivery facilities damaged as a result of Hurricane Beryl will be in the range of $1.2 billion to $1.3 billion based on currently available information. These preliminary estimates are subject to revision as certain restoration costs may continue through the end of 2024. The ultimate recovery of costs relating to Hurricane Beryl is expected to be sought through the issuance and sale of non-recourse securitization bonds for distribution-related costs. However, neither the amount nor timing of the recovery is certain. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income | $ 228 | $ 118 | $ 578 | $ 443 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation. Included in this combined Form 10-Q are the Interim Condensed Financial Statements of CenterPoint Energy, Houston Electric and CERC, which are referred to collectively as the Registrants. The Interim Condensed Financial Statements are unaudited, omit certain financial statement disclosures and should be read with the Registrants’ financial statements included in the Registrants’ combined 2023 Form 10-K. The Combined Notes to Interim Condensed Financial Statements apply to all Registrants and specific references to Houston Electric and CERC herein also pertain to CenterPoint Energy, unless otherwise indicated. The Interim Condensed Financial Statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the respective periods. Amounts reported in the Condensed Statements of Consolidated Income are not necessarily indicative of amounts expected for a full-year period due to the effects of, among other things, (a) seasonal fluctuations in demand for energy, (b) changes in energy commodity prices, (c) timing of maintenance and other expenditures and (d) acquisitions and dispositions of businesses, assets and other interests. Background . CenterPoint Energy, Inc. is a public utility holding company. On June 30, 2023, CenterPoint Energy completed the sale of its indirect subsidiary, Energy Systems Group, to an unaffiliated third party. On February 19, 2024, CenterPoint Energy, through its subsidiary CERC Corp., entered into the LAMS Asset Purchase Agreement to sell its Louisiana and Mississippi natural gas LDC businesses. The transaction is expected to close in the first quarter of 2025. For additional information, see Note 3. The preparation of the Registrants’ 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 Consolidation. The accompanying Interim Condensed Financial Statements have been prepared in conformity with generally accepted accounting principles. The accounts of the Registrants and their wholly-owned and majority-owned and controlled subsidiaries are included in the Interim Condensed Financial Statements. All intercompany transactions and balances are eliminated in consolidation. As of June 30, 2024, CenterPoint Energy, Houston Electric and SIGECO had VIEs including the Bond Companies and the SIGECO Securitization Subsidiary, which are consolidated. The consolidated VIEs are wholly-owned, bankruptcy-remote, special purpose entities that were formed solely for the purpose of securitizing transition property or facilitating the securitization financing of qualified costs in the second quarter of 2023 associated with the completed retirement of SIGECO’s A.B. Brown coal generation facilities. CenterPoint Energy, through SIGECO, has a controlling financial interest in the SIGECO Securitization Subsidiary and is the VIE’s primary beneficiary. For further information, see Note 6. Creditors of CenterPoint Energy, Houston Electric and SIGECO have no recourse to any assets or revenues of the Bond Companies or the SIGECO Securitization Subsidiary, as applicable. The Securitization Bonds issued by these VIEs are payable only from and secured by transition or securitization property, as applicable, and the bondholders have no recourse to the general credit of CenterPoint Energy, Houston Electric or SIGECO. |
New Accounting Pronouncements | In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). This ASU updates segment disclosure requirements through enhanced disclosures around significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Registrants are currently evaluating the impact of this ASU on their respective consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). This ASU enhances the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Registrants are currently evaluating the impact of this ASU on their respective consolidated financial statements. Management believes that all 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. |
Revenues from Contract with Customers | In accordance with ASC 606, Revenue from Contracts with Customers, 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. 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. 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, transmits and distributes 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 provided at a point in time with control transferring upon completion of the service. Revenue for discretionary services is recognized upon completion of service based on 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 a contract liability when customer payment precedes performance. Those customers that prepay are represented by contract liabilities until the performance obligations are satisfied. The Registrants’ contract liabilities are included in Accounts payable and Other current liabilities in their Condensed Consolidated Balance Sheets. |
Allowance for Credit Losses | Allowance for Credit Losses 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, |
Fair Value Measurements | Assets and liabilities that are recorded at fair value in the Registrants’ Condensed Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined below and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are exchange-traded derivatives and equity securities. Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets and inputs other than quoted prices that are observable for the asset or liability. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value 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. |
Earnings Per Share | Basic earnings per common share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Participating securities are excluded from weighted average number of common shares outstanding in the computation of basic earnings per common share. Diluted earnings per common share is computed by dividing income available to common shareholders 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 common share reflects the dilutive effect of potential common shares from share-based awards. The dilutive effect of restricted stock is computed using the if-converted method, which assumes conversion of the restricted stock at the beginning of the period. 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. Diluted earnings per common share will also reflect the dilutive effect of potential common shares from the conversion of the Convertible Notes. Convertible debt in which the principal amount must be settled in cash is excluded from the calculation of diluted earnings per common share. There would be no interest expense adjustment to the numerator for the cash-settled portion of the Convertible Notes because that portion will always be settled in cash. The conversion spread value in shares will be included in diluted earnings per common share using the if-converted method if the convertible debt is in the money. The denominator of diluted earnings per common share is determined by dividing the conversion spread value of the share-settled portion of the Convertible Notes as of the reporting date by the average share price over the reporting period. For the three and six months ended June 30, 2024, the convertible debt was not in the money; therefore, no incremental shares were assumed converted or included in the diluted earnings per share calculation below. For further details about the Convertible Notes, see Note 11 . |
Held for Sale and Divestiture_2
Held for Sale and Divestitures (CenterPoint Energy and CERC) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | The assets and liabilities of the Louisiana and Mississippi natural gas LDC businesses classified as held for sale in CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets, as applicable, included the following: June 30, 2024 CenterPoint Energy CERC (in millions) Receivables, net $ 15 $ 15 Accrued unbilled revenues 11 11 Natural gas inventory 3 3 Materials and supplies 14 14 Property, plant and equipment, net 1,008 1,008 Goodwill 217 122 Regulatory assets 55 55 Other 2 2 Total current assets held for sale $ 1,325 $ 1,230 Accounts payable $ 20 $ 20 Customer deposits 14 14 Regulatory liabilities 92 92 Other 92 92 Total current liabilities held for sale $ 218 $ 218 The pre-tax income for the Louisiana and Mississippi natural gas LDC businesses, excluding interest and corporate allocations, included in CenterPoint Energy’s and CERC’s Condensed Statements of Consolidated Income is as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Income Before Income Taxes $ 3 $ 3 $ 44 $ 35 The pre-tax loss for Energy Systems Group, excluding interest and corporate allocations, included in CenterPoint Energy’s Condensed Statements of Consolidated Income is as follows: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 (in millions) Income (Loss) Before Income Taxes $ 2 $ (4) |
Revenue Recognition and Allow_2
Revenue Recognition and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables disaggregate revenues by reportable segment and major source: CenterPoint Energy Three Months Ended June 30, 2024 Electric Natural Gas Corporate Total (in millions) Revenue from contracts with customers $ 1,207 $ 698 $ 1 $ 1,906 Other (1) — (3) 2 (1) Total revenues $ 1,207 $ 695 $ 3 $ 1,905 Six Months Ended June 30, 2024 Electric Natural Gas Corporate Total (in millions) Revenue from contracts with customers $ 2,259 $ 2,239 $ 2 $ 4,500 Other (1) (3) 26 2 25 Total revenues $ 2,256 $ 2,265 $ 4 $ 4,525 Three Months Ended June 30, 2023 Electric Natural Gas Corporate Total (in millions) Revenue from contracts with customers $ 1,040 $ 759 $ 73 $ 1,872 Other (1) (3) 5 1 3 Total revenues $ 1,037 $ 764 $ 74 $ 1,875 Six Months Ended June 30, 2023 Electric Natural Gas Corporate Total (in millions) Revenue from contracts with customers $ 1,998 $ 2,511 $ 124 $ 4,633 Other (1) (9) 28 2 21 Total revenues $ 1,989 $ 2,539 $ 126 $ 4,654 (1) Primarily consists of income from ARPs and leases. Total lease income was $2 million and $2 million for the three months ended June 30, 2024 and 2023, respectively, and $4 million and $4 million for the six months ended June 30, 2024 and 2023, respectively. Houston Electric Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Revenue from contracts with customers $ 1,049 $ 918 $ 1,959 $ 1,721 Other (1) (5) (9) (14) (20) Total revenues $ 1,044 $ 909 $ 1,945 $ 1,701 (1) Primarily consists of income from ARPs and leases. Lease income was not significant for the three and six months ended June 30, 2024 and 2023. CERC Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Revenue from contracts with customers $ 682 $ 737 $ 2,167 $ 2,437 Other (1) (3) 8 24 25 Total revenues $ 679 $ 745 $ 2,191 $ 2,462 (1) Primarily consists of income from ARPs and leases. Lease income was not significant for the three and six months ended June 30, 2024 and 2023. |
Schedule of Contract with Customer, Contract Asset, Contract Liability and Receivable | The opening and closing balances of accounts receivable, accrued unbilled revenues and contract liabilities from contracts with customers are as follows: CenterPoint Energy Accounts Receivable Accrued Unbilled Revenues Contract Liabilities (in millions) Opening balance as of December 31, 2023 $ 652 $ 516 $ 2 Closing balance as of June 30, 2024 598 346 6 Increase (decrease) $ (54) $ (170) $ 4 The amount of revenue recognized during the six months ended June 30, 2024 that was included in the opening contract liability was $2 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 Accrued Unbilled Revenues Contract Liabilities (in millions) Opening balance as of December 31, 2023 $ 275 $ 142 $ 2 Closing balance as of June 30, 2024 351 172 6 Increase $ 76 $ 30 $ 4 The amount of revenue recognized during the six months ended June 30, 2024 that was included in the opening contract liability was $2 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 Accrued Unbilled Revenues (in millions) Opening balance as of December 31, 2023 $ 330 $ 329 Closing balance as of June 30, 2024 209 128 Decrease $ (121) $ (201) CERC does not have any opening or closing contract asset or contract liability balances. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The Registrants’ net periodic cost, before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes, includes the following components relating to pension and postretirement benefits: Pension Benefits (CenterPoint Energy) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Service cost (1) $ 6 $ 6 $ 12 $ 13 Interest cost (2) 18 19 37 38 Expected return on plan assets (2) (18) (19) (37) (38) Amortization of net loss (2) 7 7 14 14 Net periodic cost $ 13 $ 13 $ 26 $ 27 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. (2) Amounts presented in the table above are included in Other income, net in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of regulatory deferrals. Postretirement Benefits Three Months Ended June 30, 2024 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 1 $ — $ — $ 1 $ — $ — Interest cost (2) 3 2 1 3 2 1 Expected return on plan assets (2) (2) (1) — (2) (1) — Amortization of prior service credit (2) — (2) — (1) (2) — Amortization of net loss (2) (2) (1) — (2) (1) — Net periodic cost (benefit) $ — $ (2) $ 1 $ (1) $ (2) $ 1 Six Months Ended June 30, 2024 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 1 $ — $ — $ 1 $ — $ — Interest cost (2) 6 3 2 6 3 2 Expected return on plan assets (2) (3) (2) — (3) (2) — Amortization of prior service cost (credit) (2) (1) (3) 1 (1) (3) 1 Amortization of net loss (2) (4) (2) (1) (4) (2) (1) Net periodic cost (benefit) $ (1) $ (4) $ 2 $ (1) $ (4) $ 2 (1) Amounts presented in the tables above are included in Operation and maintenance expense in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. (2) Amounts presented in the tables above are included in Other income, net in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of regulatory deferrals. |
Schedule of Benefit Plan Contributions | The table below reflects the expected contributions to be made to the pension and postretirement benefit plans during 2024: CenterPoint Energy Houston Electric CERC (in millions) Expected contribution to pension plans $ 9 $ — $ — Expected contribution to postretirement benefit plans 8 1 4 The table below reflects the contributions made to the pension and postretirement benefit plans during the periods presented: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Pension plans $ 1 $ — $ — $ 3 $ — $ — Postretirement benefit plans 2 — 2 4 — 3 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Regulated Operations [Abstract] | |
Schedule of Allowed Equity Return Not Recognized | The recoverable allowed equity return not yet recognized by the Registrants is as follows: June 30, 2024 December 31, 2023 CenterPoint Energy (1) Houston Electric (2) CERC (3) CenterPoint Energy (1) Houston Electric (2) CERC (3) (in millions) Unrecognized equity return $ 204 $ 61 $ 79 $ 204 $ 75 $ 69 (1) In addition to the amounts described in (2) and (3) below, represents CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments in Indiana. (2) Represents 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 TEEEF costs and storm restoration costs. (3) Represents CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacement expenditures in Texas and costs associated with investments in Indiana. |
Schedule of Amount Allowed Equity Return Recognized in Period | The table below reflects the amount of allowed equity return recognized by each Registrant in its Condensed Statements of Consolidated Income: Three Months Ended June 30, 2024 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Allowed equity return recognized $ 12 $ 11 $ — $ 10 $ 9 $ — Six Months Ended June 30, 2024 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Allowed equity return recognized $ 21 $ 19 $ 1 $ 18 $ 16 $ 1 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The table below summarizes CenterPoint Energy’s and Houston Electric’s outstanding interest rate hedging activity: June 30, 2024 December 31, 2023 Hedging Classification Notional Principal (in millions) CenterPoint Energy: Cash flow hedge (1) (2) $ — $ 200 Houston Electric: Cash flow hedge (2) $ — $ 100 (1) Relates to interest rate derivative instruments at CenterPoint Energy with a termination date of December 31, 2029. The interest rate swap agreements were designated as cash flow hedges of forecasted transactions. CenterPoint Energy records all changes in the fair value of cash flow hedges in accumulated other comprehensive income (loss) until the underlying hedged transaction occurs, when it reclassifies that amount into earnings. (2) Relates to interest rate derivative instruments at Houston Electric with a termination date of June 28, 2024. The interest rate treasury lock agreements were designated as cash flow hedges of forecasted transactions. Houston Electric records all changes in the fair value of cash flow hedges to a regulatory asset or liability, which is amortized over the life of the associated debt being hedged. |
Schedule of Fair Value of Derivative Instruments | The following tables provide a balance sheet overview of CenterPoint Energy’s derivative assets and liabilities as well as its offsetting of natural gas derivative activity in the periods presented: June 30, 2024 December 31, 2023 Balance Sheet Location Derivative Derivative Liabilities Derivative Derivative Liabilities CenterPoint Energy: (in millions) Derivatives not designated as hedging instruments: Natural gas derivatives (1) Current Liabilities: Non-trading derivative liabilities $ — $ 4 $ — $ 9 Natural gas derivatives (1) Other Liabilities: Non-trading derivative liabilities — 1 — 3 Indexed debt securities derivative (2) Current Liabilities — 538 — 605 Total $ — $ 543 $ — $ 617 (1) As of June 30, 2024 and December 31, 2023, the notional volume of natural gas derivatives were 32,251 MMBtu per day and 27,421 MMBtu per day, respectively. (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 and other payments to which they may be entitled. See Note 10 for further information. The following tables provide a balance sheet overview of CERC’s derivative assets and liabilities as well as its offsetting of natural gas derivative activity in the periods presented: June 30, 2024 December 31, 2023 Balance Sheet Location Derivative Derivative Liabilities Derivative Derivative Liabilities CERC: (in millions) Derivatives not designated as hedging instruments: Natural gas derivatives (1) Current Liabilities: Non-trading derivative liabilities $ — $ 3 $ — $ 8 Natural gas derivatives (1) Other Liabilities: Non-trading derivative liabilities — 1 — 3 Total $ — $ 4 $ — $ 11 (1) As of June 30, 2024 and December 31, 2023, the notional volume of natural gas derivatives were 27,644 MMBtu per day and 23,504 MMBtu per day, respectively. June 30, 2024 December 31, 2023 Gross Amounts Recognized Gross Amount Offset Net Amount Gross Amounts Recognized Gross Amount Offset Net Amount CERC: (in millions) Assets Current Assets: Non-trading derivative assets $ 2 $ (2) $ — $ — $ — $ — Total Assets $ 2 $ (2) $ — $ — $ — $ — Liabilities Current Liabilities: Non-trading derivative liabilities $ 5 $ (2) $ 3 $ 8 $ — $ 8 Other Liabilities: Non-trading derivative liabilities 1 — 1 3 — 3 Total Liabilities $ 6 $ (2) $ 4 $ 11 $ — $ 11 |
Schedule of Fair Value ,Asset and Liability | June 30, 2024 December 31, 2023 Gross Amounts Recognized Gross Amount Offset Net Amount Gross Amounts Recognized Gross Amount Offset Net Amount CenterPoint Energy: (in millions) Assets Current Assets: Non-trading derivative assets $ 2 $ (2) $ — $ — $ — $ — Total Assets $ 2 $ (2) $ — $ — $ — $ — Liabilities Current Liabilities: Non-trading derivative liabilities $ 6 $ (2) $ 4 $ 9 $ — $ 9 Other Liabilities: Non-trading derivative liabilities 1 — 1 3 — 3 Total Liabilities $ 7 $ (2) $ 5 $ 12 $ — $ 12 |
Schedule of Income Statement Impact of Derivative Activity | The table below provides the related income statement impacts of derivative activity for the periods presented: Three Months Ended Six Months Ended Income Statement Location 2024 2023 2024 2023 CenterPoint Energy: (in millions) Derivatives not designated as hedging instruments: Indexed debt securities derivative (1) Gain (loss) on indexed debt securities $ (18) $ 34 $ 67 $ (5) (1) The indexed debt securities derivative is recorded at fair value and changes in the fair value are recorded in CenterPoint Energy’s Condensed Statements of Consolidated Income. Cash inflows and outflows associated with derivatives are included in operating activities on the statement of cash flows. (c) Credit Risk Contingent Features (CenterPoint Energy and CERC) Certain of CenterPoint Energy’s and CERC’s derivative instruments contain provisions that require CenterPoint Energy and CERC to maintain an investment grade credit rating on their respective long-term unsecured unsubordinated debt from S&P and Moody’s. If CenterPoint Energy’s or CERC’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 or additional collateral. The table below sets forth additional detail for the periods presented: June 30, 2024 December 31, 2023 CenterPoint Energy CERC CenterPoint Energy CERC (in millions) Aggregate fair value of derivatives containing material adverse change provisions in a net liability position $ 6 $ 5 $ 9 $ 8 Fair value of collateral already posted — — — — Additional collateral required to be posted if credit risk contingent features triggered 6 5 9 8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis | The following tables present information about the Registrants’ assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value. CenterPoint Energy June 30, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Equity securities $ 477 $ — $ — $ 477 $ 541 $ — $ — $ 541 Investments, including money market funds (1) 35 — — 35 31 — — 31 Total assets $ 512 $ — $ — $ 512 $ 572 $ — $ — $ 572 Liabilities Indexed debt securities derivative $ — $ 538 $ — $ 538 $ — $ 605 $ — $ 605 Natural gas derivatives — 5 — 5 — 12 — 12 Total liabilities $ — $ 543 $ — $ 543 $ — $ 617 $ — $ 617 Houston Electric June 30, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 20 $ — $ — $ 20 $ 14 $ — $ — $ 14 Total assets $ 20 $ — $ — $ 20 $ 14 $ — $ — $ 14 CERC June 30, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 15 $ — $ — $ 15 $ 15 $ — $ — $ 15 Total assets $ 15 $ — $ — $ 15 $ 15 $ — $ — $ 15 Liabilities Natural gas derivatives $ — $ 4 $ — $ 4 $ — $ 11 $ — $ 11 Total liabilities $ — $ 4 $ — $ 4 $ — $ 11 $ — $ 11 (1) Amounts are included in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. |
Schedule of Estimated Fair Value of Financial Instruments, Debt Instruments | The fair values of cash and cash equivalents, investments in debt and equity securities measured at fair value and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Condensed Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy. June 30, 2024 December 31, 2023 CenterPoint Energy (1) Houston Electric (1) CERC CenterPoint Energy (1) Houston Electric (1) CERC Long-term debt, including current maturities (in millions) Carrying amount $ 19,118 $ 8,005 $ 4,584 $ 18,609 $ 7,587 $ 4,670 Fair value 17,750 6,961 4,413 17,804 6,917 4,627 (1) Includes Securitization Bonds, as applicable. |
Goodwill (CenterPoint Energy _2
Goodwill (CenterPoint Energy and CERC) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | CenterPoint Energy’s goodwill by reportable segment as of both June 30, 2024 and December 31, 2023 is as follows: December 31, 2023 Held For Sale June 30, 2024 (in millions) Electric (1) $ 936 $ — $ 936 Natural gas (2) 2,920 217 2,703 Corporate and other 304 — 304 Total $ 4,160 $ 217 $ 3,943 (1) Amount presented is net of the accumulated goodwill impairment charge of $185 million recorded in 2020. (2) If 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 Louisiana and Mississippi natural gas LDC businesses to be disposed of is classified as held for sale as of June 30, 2024. CenterPoint Energy has not recognized any goodwill impairments within the Natural Gas reportable segment during the six months ended June 30, 2024. For further information, see Note 3. CERC’s goodwill as of both June 30, 2024 and December 31, 2023 is as follows: December 31, 2023 Held For Sale June 30, 2024 (in millions) Goodwill (1) $ 1,583 $ 122 $ 1,461 (1) In connection with the classification of the Louisiana and Mississippi natural gas LDC businesses as held for sale as of June 30, 2024 described above, goodwill attributable to CERC to be disposed of as part of the transaction is classified as held for sale as of June 30, 2024. CERC has not recognized any goodwill impairments during the six months ended June 30, 2024. For further information, see Note 3. |
Equity Securities and Indexed_2
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gain (Loss) on Securities | Gains and losses on equity securities, net of transaction costs, are recorded in Gain (loss) on equity securities in CenterPoint Energy’s Condensed Statements of Consolidated Income. The following table presents unrealized gains (losses), net on equity securities owned by CenterPoint Energy for each period presented: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) AT&T Common $ 15 $ (34) $ 24 $ (25) Charter Common 7 9 (78) 25 WBD Common (3) (6) (10) 8 Other — — — (1) Total gains (losses) on equity securities, net $ 19 $ (31) $ (64) $ 7 |
Schedule of 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. The following table presents information on CenterPoint Energy’s equity securities for each period presented: Shares Held Carrying Value June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 (in millions) AT&T Common 10,212,945 10,212,945 $ 195 $ 171 Charter Common 872,503 872,503 261 339 WBD Common 2,470,685 2,470,685 18 28 Other 3 3 Total $ 477 $ 541 |
Schedule of Indexed Debt Securities and Marketable Securities | CenterPoint Energy’s reference shares for each ZENS consisted of the following: June 30, 2024 December 31, 2023 (in shares) AT&T Common 0.7185 0.7185 Charter Common 0.061382 0.061382 WBD Common 0.173817 0.173817 |
Short-term Borrowings and Lon_2
Short-term Borrowings and Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | The Registrants had the following revolving credit facilities as of June 30, 2024: 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 June 30, 2024 (2) Termination Date (in millions) December 6, 2022 CenterPoint Energy $ 2,400 1.500% 65.0% (3) 59.1% December 6, 2027 December 6, 2022 CenterPoint Energy (4) 250 1.125% 65.0% 47.6% December 6, 2027 December 6, 2022 Houston Electric 300 1.250% 67.5% (3) 53.0% December 6, 2027 December 6, 2022 CERC 1,050 1.125% 65.0% 38.5% December 6, 2027 Total $ 4,000 (1) Based on credit ratings as of June 30, 2024. (2) As defined in the revolving credit facility agreements, 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 table below reflects the utilization of the Registrants’ respective revolving credit facilities: June 30, 2024 December 31, 2023 Registrant Loans Letters Commercial Weighted Average Interest Rate Loans Letters Commercial Weighted Average Interest Rate (in millions, except weighted average interest rate) CenterPoint Energy $ — $ — $ 897 5.47 % $ — $ — $ 1,036 5.54 % CenterPoint Energy (1) — — — — % — — — — % Houston Electric — — — — % — — — — % CERC — 1 — — % — 1 484 5.53 % Total $ — $ 1 $ 897 $ — $ 1 $ 1,520 (1) This credit facility was issued by SIGECO. (2) CenterPoint Energy’s and CERC’s outstanding commercial paper generally have maturities of up to 60 days and 30 days, respectively, and are backstopped by the respective issuer’s long-term revolving credit facility. Neither Houston Electric nor SIGECO has a commercial paper program. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The Registrants reported the following effective tax rates: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 CenterPoint Energy (1) 13 % 46 % 16 % 29 % Houston Electric (2) 20 % 21 % 20 % 22 % CERC (3) 24 % 20 % 19 % 22 % (1) CenterPoint Energy’s lower effective tax rate for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 was primarily due to the absence of impacts associated with the sale of Energy Systems Group recorded in 2023 and a decrease in state income taxes. CenterPoint Energy’s lower effective tax rate for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was primarily due to the absence of impacts associated with the sale of Energy Systems Group recorded in 2023, a decrease in state income taxes, and the tax impacts of the state deferred remeasurement benefit of $25 million related to the Louisiana and Mississippi natural gas LDC businesses sale, which met the held for sale criteria in the first quarter of 2024 and is described further below, partially offset by the tax impacts of the valuation allowance of $21 million established against Louisiana and Mississippi NOLs, since those NOLs will not be utilized due to the Louisiana and Mississippi natural gas LDC businesses sale. See Note 3 for further details. (2) Houston Electric’s lower effective tax rate for the three and six months ended June 30, 2024 compared to the same period ended June 30, 2023 was primarily driven by a decrease in state income taxes. (3) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Long-term Purchase Commitment | As of June 30, 2024, other than discussed below, minimum purchase obligations were approximately: CenterPoint Energy CERC Natural Gas Supply Electric Supply (1) Other (2) Natural Gas Supply (in millions) Remaining six months of 2024 $ 314 $ 84 $ 60 $ 311 2025 613 459 53 609 2026 551 111 55 547 2027 474 105 10 471 2028 431 68 7 427 2029 417 66 1 414 2030 and beyond 1,446 701 242 1,424 (1) CenterPoint Energy’s undiscounted minimum payment obligations related to PPAs with commitments ranging from 15 years to 25 years and its purchase commitments under its BTA in Posey County, Indiana at the original contracted amount. (2) The 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: June 30, 2024 CenterPoint Energy CERC (in millions, except years) Amount accrued for remediation $ 13 $ 11 Minimum estimated remediation costs 8 7 Maximum estimated remediation costs 47 40 Minimum years of remediation 5 5 Maximum years of remediation 50 50 |
Earnings Per Share (CenterPoi_2
Earnings Per Share (CenterPoint Energy) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions, except per share and share amounts) Numerator: Net income $ 228 $ 118 $ 578 $ 443 Less: Preferred stock dividend requirement (Note 18) — 12 — 24 Income available to common shareholders – basic and diluted $ 228 $ 106 $ 578 $ 419 Denominator: Weighted average common shares outstanding – basic 640,754,000 631,057,000 636,491,000 630,685,000 Plus: Incremental shares from assumed conversions: Restricted stock 1,062,000 1,948,000 1,402,000 2,345,000 Weighted average common shares outstanding – diluted 641,816,000 633,005,000 637,893,000 633,030,000 Earnings Per Common Share: Basic Earnings Per Common Share $ 0.36 $ 0.17 $ 0.91 $ 0.66 Diluted Earnings Per Common Share $ 0.36 $ 0.17 $ 0.91 $ 0.66 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial data for reportable segments is as follows: CenterPoint Energy Three Months Ended June 30, 2024 2023 Revenues from Net Income (Loss) Revenues from Net Income (Loss) (in millions) Electric $ 1,207 $ 215 $ 1,037 $ 180 Natural Gas 695 47 764 35 Corporate and Other 3 (34) 74 (97) Consolidated $ 1,905 $ 228 $ 1,875 $ 118 Six Months Ended June 30, 2024 2023 Revenues from Net Income (Loss) Revenues from Net Income (Loss) (in millions) Electric $ 2,256 $ 336 $ 1,989 $ 303 Natural Gas 2,265 330 2,539 269 Corporate and Other 4 (88) 126 (129) Consolidated $ 4,525 $ 578 $ 4,654 $ 443 Total Assets June 30, 2024 December 31, 2023 (in millions) Electric $ 22,176 $ 21,089 Natural Gas 17,669 17,429 Corporate and Other, net of eliminations (1) 1,131 1,197 Consolidated $ 40,976 $ 39,715 (1) Total assets included pension and other postemployment-related regulatory assets of $374 million and $385 million as of June 30, 2024 and December 31, 2023, respectively. |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow and Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The table below provides supplemental disclosure of cash flow information: Six Months Ended June 30, 2024 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash Payments/Receipts: Interest, net of capitalized interest $ 404 $ 142 $ 111 $ 317 $ 128 $ 82 Income tax payments (refunds), net (4) 25 6 154 1 34 Non-cash transactions: Accounts payable related to capital expenditures 517 432 89 297 164 133 ROU assets obtained in exchange for lease liabilities (1) 5 — — 3 1 — (1) Excludes ROU assets obtained through prepayment of the lease liabilities. See Note 19. The table below provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the amount reported in the Condensed Statements of Consolidated Cash Flows: June 30, 2024 December 31, 2023 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash and cash equivalents (1) $ 66 $ 61 $ 1 $ 90 $ 76 $ 1 Restricted cash included in Prepaid expenses and other current assets (2) 16 13 — 19 13 — Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows $ 82 $ 74 $ 1 $ 109 $ 89 $ 1 (1) Cash and cash equivalents related to VIEs as of June 30, 2024 and December 31, 2023 included $66 million and $90 million, respectively, at CenterPoint Energy and $61 million and $76 million, respectively, at Houston Electric. (2) Restricted cash primarily related to accounts established by CenterPoint Energy and Houston Electric in connection with the issuance of the Securitization Bonds to collateralize the Securitization Bonds that were issued in these financing transactions. These restricted cash accounts are not available for withdrawal until the maturity of the Securitization Bonds. |
Related Party Transactions (H_2
Related Party Transactions (Houston Electric and CERC) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Money Pool Investment and Borrowing | The table below summarizes CenterPoint Energy money pool activity: June 30, 2024 December 31, 2023 Houston Electric CERC Houston Electric CERC (in millions, except interest rates) Money pool investments, net (1) $ 287 $ 72 $ 238 $ 1 Weighted average interest rate 5.54 % 5.54 % 5.59 % 5.59 % (1) Included in Accounts and notes receivable–affiliated companies on Houston Electric’s and CERC’s respective Condensed Consolidated Balance Sheets, as applicable. |
Schedule of Related Party Transactions | Amounts charged for these services were as follows and are included primarily in Operation and maintenance expenses on the Condensed Statements of Consolidated Income: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Corporate service charges $ 44 $ 55 $ 40 $ 56 $ 79 $ 106 $ 75 $ 106 Net affiliate service charges (billings) (2) 2 (3) 3 (3) 3 (6) 6 The table below presents transactions among Houston Electric, CERC and their parent, Utility Holding: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Cash dividends paid to parent $ 119 $ 131 $ 109 $ 107 $ 155 $ 246 $ 160 $ 311 Cash contribution from parent — 290 — 500 230 290 650 500 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Dividends Declared | Dividends Declared and Paid (CenterPoint Energy) CenterPoint Energy declared and paid dividends on its Common Stock as follows during the periods indicated below: Dividends Declared Per Share Dividends Paid Per Share Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 2024 2023 2024 2023 Common Stock $ 0.200 $ 0.190 $ 0.200 $ 0.190 $ 0.200 $ 0.190 $ 0.400 $ 0.380 Series A Preferred Stock (1) — — — — — — — 30.625 (1) All of the outstanding shares of Series A Preferred Stock were redeemed during September 2023 as further described below. |
Schedule of Dividend Requirement on Preferred Stock | Income Allocated to Series A Preferred Shareholders (CenterPoint Energy) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in millions) Series A Preferred Stock (1) $ — $ 12 $ — $ 24 Total income allocated to preferred shareholders $ — $ 12 $ — $ 24 (1) All of the outstanding shares of Series A Preferred Stock were redeemed during September 2023 as further described below. |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated comprehensive income (loss) are as follows: Three Months Ended June 30, 2024 2023 CenterPoint Energy CERC CenterPoint Energy CERC (in millions) Beginning Balance $ (33) $ 15 $ (32) $ 15 Other comprehensive income before reclassifications: Net deferred gain from cash flow hedges 1 — — — Prior service cost (1) 2 — — — Other comprehensive income 3 — — — Ending Balance $ (30) $ 15 $ (32) $ 15 Six Months Ended June 30, 2024 2023 CenterPoint Energy CERC CenterPoint Energy CERC (in millions) Beginning Balance $ (35) $ 16 $ (31) $ 16 Other comprehensive income (loss) before reclassifications: Remeasurement of pension and other postretirement plans (2) — — — Net deferred gain from cash flow hedges 4 — — — Prior service cost (1) 2 — (1) (1) Actuarial losses (1) 1 (1) — — Other comprehensive income (loss) 5 (1) (1) (1) Ending Balance $ (30) $ 15 $ (32) $ 15 (1) Amounts are included in the computation of net periodic cost and are reflected in Other income, net in each of the Registrants’ respective Condensed Statements of Consolidated Income. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease cost, included in Operation and maintenance expense on the Registrants’ respective Condensed Statements of Consolidated Income, are as follows: Three Months Ended June 30, 2024 2023 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease cost $ 1 $ 1 $ 1 $ 1 $ — $ 1 Short-term lease cost 6 5 — 13 14 — Total lease cost (1) $ 7 $ 6 $ 1 $ 14 $ 14 $ 1 Six Months Ended June 30, 2024 2023 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease cost $ 2 $ 2 $ 1 $ 3 $ 1 $ 1 Short-term lease cost 8 7 — 13 13 — Total lease cost (1) $ 10 $ 9 $ 1 $ 16 $ 14 $ 1 (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 Condensed Statements of Consolidated Income. |
Schedule of Operating Lease Income | The components of lease income were as follows: Three Months Ended June 30, 2024 2023 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease income $ 1 $ — $ 1 $ 1 $ — $ 1 Variable lease income 1 — — — — — Total lease income $ 2 $ — $ 1 $ 1 $ — $ 1 Six Months Ended June 30, 2024 2023 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease income $ 3 $ — $ 2 $ 3 $ — $ 2 Variable lease income 1 — — 1 — — Total lease income $ 4 $ — $ 2 $ 4 $ — $ 2 |
Schedule of Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to leases was as follows: June 30, 2024 December 31, 2023 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions, except lease term and discount rate) Assets: Operating ROU assets (1) $ 17 $ 6 $ 4 $ 13 $ 6 $ 4 Finance ROU assets (2) 478 478 — 526 526 — Total leased assets $ 495 $ 484 $ 4 $ 539 $ 532 $ 4 Liabilities: Current operating lease liability (3) $ 3 $ 1 $ 1 $ 3 $ 1 $ 1 Non-current operating lease liability (4) 14 4 3 10 5 3 Total leased liabilities (5) $ 17 $ 5 $ 4 $ 13 $ 6 $ 4 Weighted-average remaining lease term (in years) - operating leases 11.6 3.4 3.4 4.7 3.9 3.1 Weighted-average discount rate - operating leases 4.49 % 4.11 % 3.95 % 4.13 % 4.09 % 3.60 % Weighted-average remaining lease term (in years) - finance leases 5 5 — 5.5 5.5 — Weighted-average discount rate - finance leases 3.60 % 3.60 % — 3.60 % 3.60 % — (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 significant as of June 30, 2024 or December 31, 2023 and are reported within Other long-term debt in the Registrants’ respective Condensed Consolidated Balance Sheets when applicable. |
Schedule of Operating Lease Liability Maturity | As of June 30, 2024, finance lease liabilities were not significant to the Registrants. As of June 30, 2024, maturities of operating lease liabilities were as follows: CenterPoint Houston CERC (in millions) Remainder of 2024 $ 2 $ 1 $ 1 2025 4 2 2 2026 4 1 1 2027 2 1 — 2028 1 — — 2029 10 — — 2030 and beyond 1 — — Total lease payments 24 5 4 Less: Interest 7 — — Present value of lease liabilities $ 17 $ 5 $ 4 |
Schedule of Operating Lease Payments to be Received | As of June 30, 2024, maturities of undiscounted operating lease payments to be received are as follows: CenterPoint Houston CERC (in millions) Remainder of 2024 $ 3 $ — $ 2 2025 6 1 4 2026 7 — 5 2027 7 — 5 2028 7 — 5 2029 7 — 6 2030 and beyond 158 — 156 Total lease payments to be received $ 195 $ 1 $ 183 |
Schedule of Other Information Related To Leases | Other information related to leases is as follows: Six Months Ended June 30, 2024 2023 CenterPoint Houston CERC CenterPoint Houston CERC (in millions) Operating cash flows from operating leases included in the measurement of lease liabilities $ 2 $ 1 $ 1 $ 3 $ 1 $ 1 |
Background and Basis of Prese_3
Background and Basis of Presentation (Details) | Jun. 30, 2024 registrant |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of registrants | 3 |
Held for Sale and Divestiture_3
Held for Sale and Divestitures (CenterPoint Energy and CERC) - Narrative (Details) mi in Thousands, numberOfCustomer in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Feb. 19, 2024 USD ($) numberOfCustomer mi | May 21, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from divestitures | $ 0 | $ 145 | ||||||
Loss on divestitures | $ 0 | $ 12 | 0 | $ 12 | ||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Energy Systems Group | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity purchase agreement, purchase price | $ 157 | |||||||
Proceeds from divestitures | $ 154 | |||||||
Adjustments on working capital | $ 2 | $ 2 | ||||||
Loss on divestitures | $ 13 | |||||||
Transaction costs | 3 | |||||||
Current tax expense of divestiture | $ 32 | |||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | CERC | Louisiana and Mississippi Regulated Natural Gas LDC Businesses | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Purchase price | $ 1,200 | |||||||
Miles of pipeline (in miles) | mi | 12 | |||||||
Number of customers (more than) | numberOfCustomer | 0.3 |
Held for Sale and Divestiture_4
Held for Sale and Divestitures (CenterPoint Energy and CERC) - Asset and Liabilities Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current assets held for sale | $ 1,325 | $ 0 |
Total current liabilities held for sale | 218 | 0 |
CERC | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current assets held for sale | 1,230 | 0 |
Total current liabilities held for sale | 218 | $ 0 |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Louisiana and Mississippi Regulated Natural Gas LDC Businesses | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net | 15 | |
Accrued unbilled revenues | 11 | |
Natural gas inventory | 3 | |
Materials and supplies | 14 | |
Property, plant and equipment, net | 1,008 | |
Goodwill | 217 | |
Regulatory assets | 55 | |
Other | 2 | |
Total current assets held for sale | 1,325 | |
Accounts payable | 20 | |
Customer deposits | 14 | |
Regulatory liabilities | 92 | |
Other | 92 | |
Total current liabilities held for sale | 218 | |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Louisiana and Mississippi Regulated Natural Gas LDC Businesses | CERC | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Receivables, net | 15 | |
Accrued unbilled revenues | 11 | |
Natural gas inventory | 3 | |
Materials and supplies | 14 | |
Property, plant and equipment, net | 1,008 | |
Goodwill | 122 | |
Regulatory assets | 55 | |
Other | 2 | |
Total current assets held for sale | 1,230 | |
Accounts payable | 20 | |
Customer deposits | 14 | |
Regulatory liabilities | 92 | |
Other | 92 | |
Total current liabilities held for sale | $ 218 |
Held for Sale and Divestiture_5
Held for Sale and Divestitures (CenterPoint Energy and CERC) - Pre Tax Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (Loss) Before Income Taxes | $ 261 | $ 217 | $ 689 | $ 620 |
CERC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (Loss) Before Income Taxes | 62 | 53 | 386 | 325 |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Louisiana and Mississippi Regulated Natural Gas LDC Businesses | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (Loss) Before Income Taxes | 3 | 3 | 44 | 35 |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Louisiana and Mississippi Regulated Natural Gas LDC Businesses | CERC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (Loss) Before Income Taxes | $ 3 | 3 | $ 44 | 35 |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Energy Systems Group | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (Loss) Before Income Taxes | $ 2 | $ (4) |
Revenue Recognition and Allow_3
Revenue Recognition and Allowance for Credit Losses - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts | $ 1,906 | $ 1,872 | $ 4,500 | $ 4,633 |
Other | (1) | 3 | 25 | 21 |
Total | 1,905 | 1,875 | 4,525 | 4,654 |
Lease income | 2 | 2 | 4 | 4 |
Houston Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts | 1,049 | 918 | 1,959 | 1,721 |
Other | (5) | (9) | (14) | (20) |
Total | 1,044 | 909 | 1,945 | 1,701 |
CERC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts | 682 | 737 | 2,167 | 2,437 |
Other | (3) | 8 | 24 | 25 |
Total | 679 | 745 | 2,191 | 2,462 |
Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts | 1,207 | 1,040 | 2,259 | 1,998 |
Other | 0 | (3) | (3) | (9) |
Total | 1,207 | 1,037 | 2,256 | 1,989 |
Natural Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts | 698 | 759 | 2,239 | 2,511 |
Other | (3) | 5 | 26 | 28 |
Total | 695 | 764 | 2,265 | 2,539 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts | 1 | 73 | 2 | 124 |
Other | 2 | 1 | 2 | 2 |
Total | $ 3 | $ 74 | $ 4 | $ 126 |
Revenue Recognition and Allow_4
Revenue Recognition and Allowance for Credit Losses - Schedule of Contract Assets and Liabilities (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Accounts Receivable | |
Opening balance as of December 31, 2023 | $ 652 |
Closing balance as of June 30, 2024 | 598 |
Increase (decrease) | (54) |
Accrued Unbilled Revenues | |
Opening balance as of December 31, 2023 | 516 |
Closing balance as of June 30, 2024 | 346 |
Increase (decrease) in other accrued unbilled revenues | (170) |
Contract Liabilities | |
Opening balance as of December 31, 2023 | 2 |
Closing balance as of June 30, 2024 | 6 |
Increase (decrease) in contract liabilities | 4 |
Revenue recognized included in the opening contract liability for the period | 2 |
Houston Electric | |
Accounts Receivable | |
Opening balance as of December 31, 2023 | 275 |
Closing balance as of June 30, 2024 | 351 |
Increase (decrease) | 76 |
Accrued Unbilled Revenues | |
Opening balance as of December 31, 2023 | 142 |
Closing balance as of June 30, 2024 | 172 |
Increase (decrease) in other accrued unbilled revenues | 30 |
Contract Liabilities | |
Opening balance as of December 31, 2023 | 2 |
Closing balance as of June 30, 2024 | 6 |
Increase (decrease) in contract liabilities | 4 |
Revenue recognized included in the opening contract liability for the period | 2 |
CERC | |
Accounts Receivable | |
Opening balance as of December 31, 2023 | 330 |
Closing balance as of June 30, 2024 | 209 |
Increase (decrease) | (121) |
Accrued Unbilled Revenues | |
Opening balance as of December 31, 2023 | 329 |
Closing balance as of June 30, 2024 | 128 |
Increase (decrease) in other accrued unbilled revenues | $ (201) |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6 | $ 6 | $ 12 | $ 13 |
Interest cost | 18 | 19 | 37 | 38 |
Expected return on plan assets | (18) | (19) | (37) | (38) |
Amortization of net loss | 7 | 7 | 14 | 14 |
Net periodic cost (benefit) | 13 | 13 | 26 | 27 |
Total contributions expected in current year | 9 | 9 | ||
Total contributions to the plans during the period | 1 | 3 | ||
Pension plans | Houston Electric | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total contributions expected in current year | 0 | 0 | ||
Total contributions to the plans during the period | 0 | 0 | ||
Pension plans | CERC | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total contributions expected in current year | 0 | 0 | ||
Total contributions to the plans during the period | 0 | 0 | ||
Postretirement benefit plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 1 | 1 |
Interest cost | 3 | 3 | 6 | 6 |
Expected return on plan assets | (2) | (2) | (3) | (3) |
Amortization of prior service cost (credit) | 0 | (1) | (1) | (1) |
Amortization of net loss | (2) | (2) | (4) | (4) |
Net periodic cost (benefit) | 0 | (1) | (1) | (1) |
Total contributions expected in current year | 8 | 8 | ||
Total contributions to the plans during the period | 2 | 4 | ||
Postretirement benefit plans | Houston Electric | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 2 | 2 | 3 | 3 |
Expected return on plan assets | (1) | (1) | (2) | (2) |
Amortization of prior service cost (credit) | (2) | (2) | (3) | (3) |
Amortization of net loss | (1) | (1) | (2) | (2) |
Net periodic cost (benefit) | (2) | (2) | (4) | (4) |
Total contributions expected in current year | 1 | 1 | ||
Total contributions to the plans during the period | 0 | 0 | ||
Postretirement benefit plans | CERC | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 1 | 1 | 2 | 2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | 1 | 1 |
Amortization of net loss | 0 | 0 | (1) | (1) |
Net periodic cost (benefit) | 1 | $ 1 | 2 | $ 2 |
Total contributions expected in current year | 4 | 4 | ||
Total contributions to the plans during the period | $ 2 | $ 3 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Allowed Equity Return Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Public Utilities, General Disclosures [Line Items] | |||||
Unrecognized equity return | $ 204 | $ 204 | $ 204 | ||
Allowed equity return recognized | 12 | $ 10 | 21 | $ 18 | |
Houston Electric | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Unrecognized equity return | 61 | 61 | 75 | ||
Allowed equity return recognized | 11 | 9 | 19 | 16 | |
CERC | |||||
Public Utilities, General Disclosures [Line Items] | |||||
Unrecognized equity return | 79 | 79 | $ 69 | ||
Allowed equity return recognized | $ 0 | $ 0 | $ 1 | $ 1 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) $ in Millions | 12 Months Ended | |||||||||
Oct. 12, 2023 USD ($) | Apr. 05, 2023 USD ($) | Mar. 23, 2023 USD ($) | Dec. 31, 2021 lease | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jun. 29, 2023 USD ($) | Jan. 04, 2023 USD ($) | Dec. 31, 2022 | Jul. 01, 2022 USD ($) | |
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | $ 243 | $ 161 | ||||||||
Regulatory assets | 2,525 | 2,513 | ||||||||
Property, plant and equipment | 40,589 | 40,396 | ||||||||
Public Utility Commission of Texas | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | 8 | 8 | ||||||||
IURC | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory asset, issued | $ 350 | |||||||||
CERC | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | 240 | 161 | ||||||||
Regulatory assets | 768 | 850 | ||||||||
Property, plant and equipment | 14,998 | 15,672 | ||||||||
Houston Electric | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | 845 | 752 | ||||||||
Property, plant and equipment | 20,448 | 19,515 | ||||||||
Number of leases entered into | lease | 2 | |||||||||
Houston Electric | Public Utility Commission of Texas | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | 8 | 8 | ||||||||
Houston Electric | Public Utility Commission Of Texas | TEEEF Lease One | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Recovery of deferred costs sought | $ 200 | |||||||||
Regulatory asset, revenue requirement amount | $ 39 | |||||||||
Regulatory asset, amortization period | 82 months 15 days | |||||||||
Houston Electric | Public Utility Commission Of Texas | TEEEF Lease Two | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory asset, amortization period | 78 months | 102 months | ||||||||
Regulatory asset, annual revenue requirement amount | $ 188 | |||||||||
Regulatory asset, lease, incremental revenue requirement increase | $ 149 | |||||||||
Regulatory asset, revenue requirement amount reduction | $ 35 | |||||||||
SIGECO | Subsidiaries | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory asset, issued | $ 341 | |||||||||
February 2021 Winter Storm | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | 66 | |||||||||
February 2021 Winter Storm | Operation and maintenance expense | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | 18 | 17 | ||||||||
February 2021 Winter Storm | CERC | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | 66 | |||||||||
Regulatory assets | 92 | |||||||||
February 2021 Winter Storm | Houston Electric | Operation and maintenance expense | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | 18 | 17 | ||||||||
February 2021 Winter Storm Event | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory asset, approximate total gas cost | 2,000 | |||||||||
Regulatory assets | 86 | |||||||||
Regulatory assets | 92 | 130 | ||||||||
February 2021 Winter Storm Event | CERC | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | 86 | |||||||||
Regulatory assets | $ 130 | |||||||||
February 2021 Winter Storm Event | Customer Rate Relief Bond Financing | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Cash proceeds received from government grants | $ 1,100 | |||||||||
February 2021 Winter Storm Event | Customer Rate Relief Bond Financing | CERC | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Cash proceeds received from government grants | $ 1,100 | |||||||||
May 2024 Storm Events | Houston Electric | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Regulatory assets | 70 | |||||||||
Property, plant and equipment | 308 | |||||||||
Estimated cost included in accounts payable | 291 | |||||||||
May 2024 Storm Events | Houston Electric | Minimum | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Estimated storm restoration costs | 425 | |||||||||
May 2024 Storm Events | Houston Electric | Maximum | ||||||||||
Regulatory Assets [Line Items] | ||||||||||
Estimated storm restoration costs | $ 475 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Hedging and Weather Hedges (Details) - Interest rate derivatives - Cash Flow Hedge - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Economic hedge | $ 0 | $ 200 |
Houston Electric | ||
Derivative [Line Items] | ||
Economic hedge | $ 0 | $ 100 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Activity (Details) $ in Thousands | Jun. 30, 2024 USD ($) MMBTU | Dec. 31, 2023 USD ($) MMBTU |
Derivative Assets Fair Value | ||
Derivative assets | $ 0 | $ 0 |
Derivative Liability [Abstract] | ||
Derivative Liability | 543,000 | 617,000 |
Derivatives not designated as hedging instruments: | ||
Derivative Assets Fair Value | ||
Gross Amounts Recognized | 2,000 | 0 |
Derivative Liability [Abstract] | ||
Current Liabilities: Non-trading derivative liabilities | $ 5,000 | $ 12,000 |
Natural gas derivatives | Derivatives not designated as hedging instruments: | ||
Derivative Liability [Abstract] | ||
Derivative gross volume (in MMBtu) | MMBTU | 32,251 | 27,421 |
Current Liabilities: Non-trading derivative liabilities | Natural gas derivatives | Derivatives not designated as hedging instruments: | ||
Derivative Assets Fair Value | ||
Gross Amounts Recognized | $ 0 | $ 0 |
Derivative Liability [Abstract] | ||
Current Liabilities: Non-trading derivative liabilities | 4,000 | 9,000 |
Current Liabilities: Non-trading derivative liabilities | Indexed debt securities derivative | Derivatives not designated as hedging instruments: | ||
Derivative Assets Fair Value | ||
Derivative Assets Fair Value | 0 | 0 |
Derivative Liability [Abstract] | ||
Derivative Liabilities Fair Value | 538,000 | 605,000 |
Other Liabilities: Non-trading derivative liabilities | Natural gas derivatives | Derivatives not designated as hedging instruments: | ||
Derivative Assets Fair Value | ||
Gross Amounts Recognized | 0 | 0 |
Derivative Liability [Abstract] | ||
Current Liabilities: Non-trading derivative liabilities | $ 1,000 | $ 3,000 |
Derivative Instruments - Gross
Derivative Instruments - Gross Derivative and Offset (Details) - Derivatives not designated as hedging instruments: - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Gross Amounts Recognized | $ 2,000 | $ 0 |
Gross Amount Offset | (2,000) | 0 |
Net Amount | 0 | 0 |
Derivative Liability [Abstract] | ||
Gross Amounts Recognized | 7,000 | 12,000 |
Gross Amount Offset | (2,000) | 0 |
Net Amount | 5,000 | 12,000 |
CERC | ||
Assets | ||
Gross Amounts Recognized | 2,000 | 0 |
Gross Amount Offset | (2,000) | 0 |
Net Amount | 0 | 0 |
Derivative Liability [Abstract] | ||
Gross Amounts Recognized | 6,000 | 11,000 |
Gross Amount Offset | (2,000) | 0 |
Net Amount | 4,000 | 11,000 |
Natural gas derivatives | Current Assets: Non-trading derivative assets | ||
Assets | ||
Gross Amounts Recognized | 2,000 | 0 |
Gross Amount Offset | (2,000) | 0 |
Net Amount | 0 | 0 |
Natural gas derivatives | Current Assets: Non-trading derivative assets | CERC | ||
Assets | ||
Gross Amounts Recognized | 2,000 | 0 |
Gross Amount Offset | (2,000) | 0 |
Net Amount | 0 | 0 |
Natural gas derivatives | Current Liabilities: Non-trading derivative liabilities | ||
Assets | ||
Gross Amounts Recognized | 0 | 0 |
Derivative Liability [Abstract] | ||
Gross Amounts Recognized | 6,000 | 9,000 |
Gross Amount Offset | (2,000) | 0 |
Net Amount | 4,000 | 9,000 |
Natural gas derivatives | Current Liabilities: Non-trading derivative liabilities | CERC | ||
Assets | ||
Gross Amounts Recognized | 0 | 0 |
Derivative Liability [Abstract] | ||
Gross Amounts Recognized | 5,000 | 8,000 |
Gross Amount Offset | (2,000) | 0 |
Net Amount | 3,000 | 8,000 |
Natural gas derivatives | Other Liabilities: Non-trading derivative liabilities | ||
Assets | ||
Gross Amounts Recognized | 0 | 0 |
Derivative Liability [Abstract] | ||
Gross Amounts Recognized | 1,000 | 3,000 |
Gross Amount Offset | 0 | 0 |
Net Amount | 1,000 | 3,000 |
Natural gas derivatives | Other Liabilities: Non-trading derivative liabilities | CERC | ||
Assets | ||
Gross Amounts Recognized | 0 | 0 |
Derivative Liability [Abstract] | ||
Gross Amounts Recognized | 1,000 | 3,000 |
Gross Amount Offset | 0 | 0 |
Net Amount | $ 1,000 | $ 3,000 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Fair Value, Asset and Liability (Details) $ in Thousands | Jun. 30, 2024 USD ($) MMBTU | Dec. 31, 2023 USD ($) MMBTU |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 0 | $ 0 |
Derivative Liability | 543,000 | 617,000 |
CERC | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative Liability | 4,000 | 11,000 |
Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Recognized | 2,000 | 0 |
Derivative Liabilities Fair Value | 7,000 | 12,000 |
Current Liabilities: Non-trading derivative liabilities | 5,000 | 12,000 |
Derivatives not designated as hedging instruments: | CERC | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Recognized | 2,000 | 0 |
Derivative Liabilities Fair Value | 6,000 | 11,000 |
Current Liabilities: Non-trading derivative liabilities | $ 4,000 | $ 11,000 |
Natural gas derivatives | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative gross volume (in MMBtu) | MMBTU | 32,251 | 27,421 |
Natural gas derivatives | Derivatives not designated as hedging instruments: | CERC | ||
Derivatives, Fair Value [Line Items] | ||
Derivative gross volume (in MMBtu) | MMBTU | 27,644 | 23,504 |
Natural gas derivatives | Current Liabilities: Non-trading derivative liabilities | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Recognized | $ 0 | $ 0 |
Derivative Liabilities Fair Value | 6,000 | 9,000 |
Current Liabilities: Non-trading derivative liabilities | 4,000 | 9,000 |
Natural gas derivatives | Current Liabilities: Non-trading derivative liabilities | Derivatives not designated as hedging instruments: | CERC | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Recognized | 0 | 0 |
Derivative Liabilities Fair Value | 5,000 | 8,000 |
Current Liabilities: Non-trading derivative liabilities | 3,000 | 8,000 |
Natural gas derivatives | Other Liabilities: Non-trading derivative liabilities | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Recognized | 0 | 0 |
Derivative Liabilities Fair Value | 1,000 | 3,000 |
Current Liabilities: Non-trading derivative liabilities | 1,000 | 3,000 |
Natural gas derivatives | Other Liabilities: Non-trading derivative liabilities | Derivatives not designated as hedging instruments: | CERC | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts Recognized | 0 | 0 |
Derivative Liabilities Fair Value | 1,000 | 3,000 |
Current Liabilities: Non-trading derivative liabilities | $ 1,000 | $ 3,000 |
Derivative Instruments - Gros_2
Derivative Instruments - Gross Indexed Securities and Credit Risk Contingent Features (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Derivatives, Fair Value [Line Items] | ||||
Aggregate fair value of derivatives containing material adverse change provisions in a net liability position | $ 6 | $ 9 | ||
Fair value of collateral already posted | 0 | 0 | ||
Additional collateral required to be posted if credit risk contingent features triggered | 6 | 9 | ||
CERC | ||||
Derivatives, Fair Value [Line Items] | ||||
Aggregate fair value of derivatives containing material adverse change provisions in a net liability position | 5 | 8 | ||
Fair value of collateral already posted | 0 | 0 | ||
Additional collateral required to be posted if credit risk contingent features triggered | $ 5 | $ 8 | ||
Indexed debt securities derivative | Gains (Losses) in Other Income (Expense) | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain (loss) on derivative instruments not designated as hedging instruments | $ 34 | $ (5) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured On Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Liabilities | ||
Derivative Liability | $ 543 | $ 617 |
CERC | ||
Liabilities | ||
Derivative Liability | 4 | 11 |
Fair Value, Recurring | ||
Assets | ||
Equity securities | 477 | 541 |
Investments, including money market funds | 35 | 31 |
Total assets | 512 | 572 |
Liabilities | ||
Total liabilities | 543 | 617 |
Fair Value, Recurring | Houston Electric | ||
Assets | ||
Investments, including money market funds | 20 | 14 |
Total assets | 20 | 14 |
Fair Value, Recurring | CERC | ||
Assets | ||
Investments, including money market funds | 15 | 15 |
Total assets | 15 | 15 |
Liabilities | ||
Total liabilities | 4 | 11 |
Fair Value, Recurring | Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 538 | 605 |
Fair Value, Recurring | Natural gas derivatives | ||
Liabilities | ||
Derivative Liability | 5 | 12 |
Fair Value, Recurring | Natural gas derivatives | CERC | ||
Liabilities | ||
Derivative Liability | 4 | 11 |
Level 1 | Fair Value, Recurring | ||
Assets | ||
Equity securities | 477 | 541 |
Investments, including money market funds | 35 | 31 |
Total assets | 512 | 572 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 1 | Fair Value, Recurring | Houston Electric | ||
Assets | ||
Investments, including money market funds | 20 | 14 |
Total assets | 20 | 14 |
Level 1 | Fair Value, Recurring | CERC | ||
Assets | ||
Investments, including money market funds | 15 | 15 |
Total assets | 15 | 15 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 1 | Fair Value, Recurring | Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 1 | Fair Value, Recurring | Natural gas derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 1 | Fair Value, Recurring | Natural gas derivatives | CERC | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 2 | Fair Value, Recurring | ||
Assets | ||
Equity securities | 0 | 0 |
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 543 | 617 |
Level 2 | Fair Value, Recurring | Houston Electric | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
Level 2 | Fair Value, Recurring | CERC | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 4 | 11 |
Level 2 | Fair Value, Recurring | Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 538 | 605 |
Level 2 | Fair Value, Recurring | Natural gas derivatives | ||
Liabilities | ||
Derivative Liability | 5 | 12 |
Level 2 | Fair Value, Recurring | Natural gas derivatives | CERC | ||
Liabilities | ||
Derivative Liability | 4 | 11 |
Level 3 | Fair Value, Recurring | ||
Assets | ||
Equity securities | 0 | 0 |
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 3 | Fair Value, Recurring | Houston Electric | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
Level 3 | Fair Value, Recurring | CERC | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 3 | Fair Value, Recurring | Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 3 | Fair Value, Recurring | Natural gas derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 3 | Fair Value, Recurring | Natural gas derivatives | CERC | ||
Liabilities | ||
Derivative Liability | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Carrying amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 19,118 | $ 18,609 |
Carrying amount | Houston Electric | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 8,005 | 7,587 |
Carrying amount | CERC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 4,584 | 4,670 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 17,750 | 17,804 |
Fair value | Houston Electric | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 6,961 | 6,917 |
Fair value | CERC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 4,413 | $ 4,627 |
Goodwill (CenterPoint Energy _3
Goodwill (CenterPoint Energy and CERC) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 4,160 | |
Held For Sale | 217 | |
Goodwill, ending balance | 3,943 | |
CERC | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,583 | |
Held For Sale | 122 | |
Goodwill, ending balance | 1,461 | |
Electric | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 936 | |
Held For Sale | 0 | |
Goodwill, ending balance | 936 | |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||
Accumulated goodwill impairment charge | $ 185 | |
Natural gas | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 2,920 | |
Held For Sale | 217 | |
Goodwill, ending balance | 2,703 | |
Corporate and Other | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 304 | |
Held For Sale | 0 | |
Goodwill, ending balance | $ 304 |
Equity Securities and Indexed_3
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Gain (Loss) On Equity Securities (CenterPoint Energy) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Gain (loss) on equity securities | $ 19 | $ (31) | $ (64) | $ 7 |
AT&T Common | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Gain (loss) on equity securities | 15 | (34) | 24 | (25) |
Charter Common | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Gain (loss) on equity securities | 7 | 9 | (78) | 25 |
WBD Common | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Gain (loss) on equity securities | (3) | (6) | (10) | 8 |
Other | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Gain (loss) on equity securities | $ 0 | $ 0 | $ 0 | $ (1) |
Equity Securities and Indexed_4
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Securities Classified as Trading (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Carrying Value | $ 477 | $ 541 |
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 | $ 195 | $ 171 |
Charter Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 872,503 | 872,503 |
Carrying Value | $ 261 | $ 339 |
WBD Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 2,470,685 | 2,470,685 |
Carrying Value | $ 18 | $ 28 |
Other | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Carrying Value | $ 3 | $ 3 |
Equity Securities and Indexed_5
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Narrative (Details) - Subordinated Debt, ZENS, Due 2029 - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Sep. 30, 1999 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt instrument, face amount | $ 1,000 | |
Outstanding debt balance | $ 828 | |
Subordinated note cash exchangeable percentage of fair value (as a percent) | 95% | |
ZENS annual interest rate (as a percent) | 2% | |
Target annual yield on reference shares (as a percent) | 2.309% | |
Contingent principal amount of ZENS | $ 13 |
Equity Securities and Indexed_6
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Reference Shares (Details) - Subordinated Debt, ZENS, Due 2029 - shares | Jun. 30, 2024 | Dec. 31, 2023 |
AT&T Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of shares referenced in exchangeable subordinated note (in shares) | 0.7185 | 0.7185 |
Charter Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of shares referenced in exchangeable subordinated note (in shares) | 0.061382 | 0.061382 |
WBD Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of shares referenced in exchangeable subordinated note (in shares) | 0.173817 | 0.173817 |
Short-term Borrowings and Lon_3
Short-term Borrowings and Long-term Debt - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Aug. 01, 2023 $ / shares | Jun. 30, 2024 USD ($) | May 31, 2024 USD ($) | Feb. 29, 2024 USD ($) | Mar. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) shares | Jun. 28, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt instrument, convertible, conversion ratio | 27.1278 | |||||||
Conversion price percentage | 25% | |||||||
Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, convertible, conversion ratio | 33.9097 | |||||||
Debt instrument, convertible, number of equity instruments (in shares) | shares | 33,909,700 | |||||||
Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, convertible, conversion price (in dollar per shares) | $ / shares | $ 36.86 | |||||||
Debt instrument, redemption price (as a percent) | 100% | |||||||
Senior Notes Due 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 700 | |||||||
Debt instrument, interest rate, stated percentage | 5.40% | |||||||
Proceeds from issuance of long-term debt and capital securities, net | $ 693 | |||||||
First Mortgage Bonds 3.50% Due 2024 | SIGECO | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 3.50% | |||||||
Debt instrument, redemption price, principal amount redeemed | $ 22 | |||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100% | |||||||
Senior Notes Due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, redemption price, principal amount redeemed | $ 350 | |||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100% | |||||||
CERC | Senior Notes Due 2034 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 400 | $ 400 | ||||||
Debt instrument, interest rate, stated percentage | 5.40% | 5.40% | ||||||
Proceeds from issuance of long-term debt and capital securities, net | $ 396 | |||||||
Houston Electric | General Mortgage Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured debt | 8,000 | $ 8,000 | ||||||
General mortgage bonds used as collateral | $ 68 | $ 68 | ||||||
Percentage of property additions | 70% | 70% | ||||||
Additional first mortgage bonds and general mortgage bonds that could be issued | $ 4,900 | $ 4,900 | ||||||
Percentage of property additions (as a percent) | 70% | 70% | ||||||
Houston Electric | General Mortgage Bonds 5.15% Due 2034 | General Mortgage Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 400 | |||||||
Debt instrument, interest rate, stated percentage | 5.15% | |||||||
Proceeds from issuance of long-term debt and capital securities, net | $ 395 | |||||||
Houston Electric | Delayed Draw Term Loan (DDTL) | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 300 | $ 300 | ||||||
Additional borrowing capacity | $ 200 | 200 | ||||||
Size of Facility | $ 100 | |||||||
Basis spread on variable rate (as a percent) | 1% | |||||||
Debt Instrument, Interest Rate, Stated Percentage, Annual Adjustment | 0.10% | |||||||
SIGECO | First Mortgage Bonds | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured debt | $ 825 | 825 | ||||||
Additional first mortgage bonds and general mortgage bonds that could be issued | $ 926 | $ 926 | ||||||
Percentage of property additions (as a percent) | 70% | 70% | ||||||
Third Party AMAs | ||||||||
Debt Instrument [Line Items] | ||||||||
Inventory financings | $ 2 | $ 2 | $ 4 | |||||
Third Party AMAs | CERC | ||||||||
Debt Instrument [Line Items] | ||||||||
Inventory financings | $ 2 | $ 2 | $ 4 |
Short-term Borrowings and Lon_4
Short-term Borrowings and Long-term Debt - Schedule of Revolving Credit Facilities (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Debt Instrument [Line Items] | |
Size of Facility | $ 4,000 |
SIGECO | |
Debt Instrument [Line Items] | |
Size of Facility | 250 |
Houston Electric | |
Debt Instrument [Line Items] | |
Size of Facility | 300 |
CERC | |
Debt Instrument [Line Items] | |
Size of Facility | $ 1,050 |
Line of Credit | Maximum | |
Debt Instrument [Line Items] | |
Percentage on limitation of debt to total capitalization under covenant amended (in hundredths) (as a percent) | 70% |
Line of Credit | SIGECO | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.125% |
Ratio of indebtedness to net capital (as a percent) | 0.650 |
Percentage on limitation of debt to total capitalization under covenant (as a percent) | 47.60% |
Line of Credit | Houston Electric | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.25% |
Ratio of indebtedness to net capital (as a percent) | 0.675 |
Percentage on limitation of debt to total capitalization under covenant (as a percent) | 53% |
Line of Credit | Houston Electric | Maximum | |
Debt Instrument [Line Items] | |
Percentage on limitation of debt to total capitalization under covenant amended (in hundredths) (as a percent) | 70% |
Line of Credit | CERC | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.125% |
Ratio of indebtedness to net capital (as a percent) | 0.650 |
Percentage on limitation of debt to total capitalization under covenant (as a percent) | 38.50% |
Parent Company | |
Debt Instrument [Line Items] | |
Size of Facility | $ 2,400 |
Parent Company | Line of Credit | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.50% |
Ratio of indebtedness to net capital (as a percent) | 0.650 |
Percentage on limitation of debt to total capitalization under covenant (as a percent) | 59.10% |
Restoration Cost Expected Cost | $ 100 |
Consecutive period for system restoration costs to exceed $100 million (in months) | 12 months |
Short-term Borrowings and Lon_5
Short-term Borrowings and Long-term Debt - Schedule of Utilization of Credit Facilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
CERC | ||
Debt Instrument [Line Items] | ||
Number of days until commercial paper maturity (in days) | 30 days | |
Loans | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 0 | $ 0 |
Loans | CenterPoint Energy | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 0 | 0 |
Loans | SIGECO | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 0 | 0 |
Loans | Houston Electric | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 0 | 0 |
Loans | CERC | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 0 | 0 |
Letters of Credit | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 1 | 1 |
Letters of Credit | CenterPoint Energy | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 0 | 0 |
Letters of Credit | SIGECO | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 0 | 0 |
Letters of Credit | Houston Electric | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 0 | 0 |
Letters of Credit | CERC | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 1 | 1 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | 897 | 1,520 |
Commercial Paper | CenterPoint Energy | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 897 | $ 1,036 |
Weighted Average Interest Rate | 5.47% | 5.54% |
Number of days until commercial paper maturity (in days) | 60 days | |
Commercial Paper | SIGECO | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 0 | $ 0 |
Weighted Average Interest Rate | 0% | 0% |
Commercial Paper | Houston Electric | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 0 | $ 0 |
Weighted Average Interest Rate | 0% | 0% |
Commercial Paper | CERC | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 0 | $ 484 |
Weighted Average Interest Rate | 0% | 5.53% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Contingency [Line Items] | ||||
Effective income tax rate (as a percent) | 13% | 46% | 16% | 29% |
Deferred remeasurement benefit | $ 25 | |||
Change in valuation allowance, income tax benefit | 21 | |||
Interest and penalties on uncertain tax liability | $ 30 | 30 | ||
Increase in unrecognized tax benefits is reasonably possible as a result of a lapse in statutes | $ 3 | $ 3 | ||
Houston Electric | ||||
Income Tax Contingency [Line Items] | ||||
Effective income tax rate (as a percent) | 20% | 21% | 20% | 22% |
CERC | ||||
Income Tax Contingency [Line Items] | ||||
Effective income tax rate (as a percent) | 24% | 20% | 19% | 22% |
Deferred remeasurement benefit | $ 24 | |||
Change in valuation allowance, income tax benefit | $ 21 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) - MW | Feb. 01, 2023 | Jan. 11, 2023 |
Posey Solar | ||
Long-Term Purchase Commitment [Line Items] | ||
Solar array generating capacity (in MW) | 191 | |
Solar array assets, useful life | 35 years | |
Pike Solar | ||
Long-Term Purchase Commitment [Line Items] | ||
Solar array generating capacity (in MW) | 130 |
Commitments and Contingencies_2
Commitments and Contingencies - Guarantees and Product Warranties (Details) | Jun. 30, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure, undiscounted | $ 484,000,000 |
Guarantor obligations, additional guarantee In relation to maximum exposure | $ 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Legal, Environmental and Other Matters (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 USD ($) lawsuit gasManufacturingAndStorageSite insurer formerAffiliate | Apr. 02, 2024 Plaintiff lawsuit | May 31, 2024 site | Jun. 30, 2024 USD ($) ashPond gasManufacturingAndStorageSite lawsuit formerAffiliate insurer Defendant | Feb. 07, 2024 USD ($) | Feb. 28, 2023 lawsuit class | |
Long-Term Purchase Commitment [Line Items] | ||||||
Number of owned coal ash ponds | ashPond | 3 | |||||
Number of sites identified for further investigation | site | 3 | |||||
F.B. Culley | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Number of owned coal ash ponds | ashPond | 2 | |||||
A.B. Brown | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Number of owned coal ash ponds | ashPond | 1 | |||||
F.B. Culley East | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Number of owned coal ash ponds | ashPond | 1 | |||||
Accounting and ratemaking project relief, approved capital costs | $ | $ 52,000 | |||||
Accounting and ratemaking project relief, approved annual O & M expenses | $ | $ 133 | |||||
Indiana Gas Service Territory | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Environmental remediation number of sites with potential remedial responsibility | gasManufacturingAndStorageSite | 26 | 26 | ||||
Environmental remediation investigation studies agreed upon number of sites | gasManufacturingAndStorageSite | 1 | 1 | ||||
SIGECO | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Environmental remediation number of sites with potential remedial responsibility | gasManufacturingAndStorageSite | 5 | 5 | ||||
Minnesota and Indiana | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Environmental remediation, number of sites sites owned or operated by bormer affiliate | formerAffiliate | 1 | 1 | ||||
CERC | Indiana Gas Service Territory | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Environmental remediation number of sites with potential remedial responsibility | gasManufacturingAndStorageSite | 26 | 26 | ||||
Indiana Electric | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Asset retirement obligation | $ | $ 118,000 | $ 118,000 | ||||
Indiana Electric | Minimum | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Estimated capital expenditure to clean ash ponds | $ | 60,000 | 60,000 | ||||
Indiana Electric | Maximum | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Estimated capital expenditure to clean ash ponds | $ | $ 80,000 | $ 80,000 | ||||
Loss from Catastrophes | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 12 | |||||
Loss from Catastrophes | Harris County | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 9 | |||||
Uninsured Risk | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Loss contingency, number of insurers | insurer | 1 | 1 | ||||
Litigation Related to the February 2021 Winter Storm Event | Pending Litigation | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 220 | 220 | ||||
February 2021 Winter Storm Event | Pending Litigation | CenterPoint Energy And Houston Electric Entities | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Loss contingency, pending claims, number of lawsuits named as defendant | 155 | |||||
Multi District Litigation | February 2021 Putative Class Action | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 1 | 1 | ||||
Multi District Litigation | February 2021 Putative Class Action | Utility Holding, LLC | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 1 | 1 | ||||
Multi District Litigation | Cases Transferred to the Multi District Litigation (MDL) | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 3 | 3 | 3 | |||
Multi District Litigation | Cases Transferred to the Multi District Litigation (MDL) | CES | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Number of claims dismissed | 3 | |||||
Bellwether Cases | Pending Litigation | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 5 | 5 | ||||
Harris County vs. CERC - Putative | Loss from Catastrophes | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 1 | |||||
Number of classes of electric and natural gas customers | class | 2 | |||||
Other Texas Lawsuits Brought By Assignee vs. Company | Loss from Catastrophes | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 2 | |||||
Other Texas Lawsuits Brought By Assignee vs. Company | Loss from Catastrophes | Harris County | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 1 | |||||
Other Texas Lawsuits Brought By Assignee vs. Company | Loss from Catastrophes | Tom Green County | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 1 | |||||
Jefferson Parish and the State of Louisiana Under the SCLRMA | Pending Litigation | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 42 | 42 | ||||
Jefferson Parish and the State of Louisiana Under the SCLRMA | Suits Remanded to Louisiana Federal Couts | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 42 | 42 | ||||
Jefferson Parish | Pending Litigation | Predecessor Company, Primary Fuels, Inc. | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Loss contingency, pending claims, number of lawsuits named as defendant | Defendant | 1 | |||||
Loss contingency, number of defendants | 1 | |||||
Multi District Litigation (MDL) Proceeding | Cases Transferred to the Multi District Litigation (MDL) | Harris County | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Pending lawsuits | 9 | 9 | ||||
Hurricane Beryl | Pending Litigation | CenterPoint Energy And Houston Electric Entities | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Loss Contingency, New Claims Filed, Number | 3 | |||||
Hurricane Beryl Class Action 1 | Pending Litigation | CenterPoint Energy And Houston Electric Entities | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Loss Contingency, Damages Sought, Value | $ | $ 100,000 | |||||
Hurricane Beryl Class Action 3 | Pending Litigation | CenterPoint Energy And Houston Electric Entities | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Loss Contingency, Damages Sought, Value | $ | 100,000 | |||||
Hurricane Beryl Class Action 2 | Pending Litigation | CenterPoint Energy And Houston Electric Entities | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Loss Contingency, Damages Sought, Value | $ | 100,000 | |||||
Hurricane Beryl Personal Injury | Pending Litigation | CenterPoint Energy And Houston Electric Entities | ||||||
Long-Term Purchase Commitment [Line Items] | ||||||
Restore the electric delivery facility cost | $ | $ 1,000 | $ 1,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Undiscounted Minimum Purchase Obligations (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Natural Gas Supply | |
Other Commitments [Line Items] | |
Remaining six months of 2024 | $ 314 |
2025 | 613 |
2026 | 551 |
2027 | 474 |
2028 | 431 |
2029 | 417 |
2030 and beyond | 1,446 |
Electric Supply | |
Other Commitments [Line Items] | |
Remaining six months of 2024 | 84 |
2025 | 459 |
2026 | 111 |
2027 | 105 |
2028 | 68 |
2029 | 66 |
2030 and beyond | 701 |
Other | |
Other Commitments [Line Items] | |
Remaining six months of 2024 | 60 |
2025 | 53 |
2026 | 55 |
2027 | 10 |
2028 | 7 |
2029 | 1 |
2030 and beyond | $ 242 |
Other | Capital Addition Purchase Commitments | Minimum | |
Other Commitments [Line Items] | |
Undiscounted minimum payment obligation, term | 15 years |
Other | Capital Addition Purchase Commitments | Maximum | |
Other Commitments [Line Items] | |
Undiscounted minimum payment obligation, term | 25 years |
Natural Gas Supply | CERC | |
Other Commitments [Line Items] | |
Remaining six months of 2024 | $ 311 |
2025 | 609 |
2026 | 547 |
2027 | 471 |
2028 | 427 |
2029 | 414 |
2030 and beyond | $ 1,424 |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of Estimated Accrued Costs (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Minnesota and Indiana Gas Service Territories | |
Loss Contingencies [Line Items] | |
Liability recorded for environmental loss contingencies | $ 13 |
Minnesota and Indiana Gas Service Territories | Minimum | |
Loss Contingencies [Line Items] | |
Estimated remediation costs | $ 8 |
Years to resolve contingency | 5 years |
Minnesota and Indiana Gas Service Territories | Maximum | |
Loss Contingencies [Line Items] | |
Estimated remediation costs | $ 47 |
Years to resolve contingency | 50 years |
Minnesota Service Territory | CERC | |
Loss Contingencies [Line Items] | |
Liability recorded for environmental loss contingencies | $ 11 |
Minnesota Service Territory | CERC | Minimum | |
Loss Contingencies [Line Items] | |
Estimated remediation costs | $ 7 |
Years to resolve contingency | 5 years |
Minnesota Service Territory | CERC | Maximum | |
Loss Contingencies [Line Items] | |
Estimated remediation costs | $ 40 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net income | $ 228 | $ 118 | $ 578 | $ 443 |
Less: Preferred stock dividend requirement (Note 18) | 0 | 12 | 0 | 24 |
Income available to common shareholders - basic | 228 | 106 | 578 | 419 |
Income available to common shareholders -diluted | $ 228 | $ 106 | $ 578 | $ 419 |
Denominator: | ||||
Weighted average common shares outstanding - basic (in shares) | 640,754 | 631,057 | 636,491 | 630,685 |
Plus: Incremental shares from assumed conversions: | ||||
Weighted average common shares outstanding - diluted (in shares) | 641,816 | 633,005 | 637,893 | 633,030 |
Earnings Per Common Share: | ||||
Basic Earnings Per Common Share (in dollars per share) | $ 0.36 | $ 0.17 | $ 0.91 | $ 0.66 |
Diluted Earnings (Loss) Per Common Share | ||||
Diluted Earnings Per Common Share (in dollars per share) | $ 0.36 | $ 0.17 | $ 0.91 | $ 0.66 |
Restricted stock | ||||
Plus: Incremental shares from assumed conversions: | ||||
Restricted stock (in shares) | 1,062 | 1,948 | 1,402 | 2,345 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 1,905 | $ 1,875 | $ 4,525 | $ 4,654 | |
Net Income (Loss) | 228 | 118 | 578 | 443 | |
Total Assets | 40,976 | 40,976 | $ 39,715 | ||
Natural Gas | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 695 | 764 | 2,265 | 2,539 | |
Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3 | 74 | 4 | 126 | |
Corporate and Other | Pension and Other Postretirement Plans Costs | |||||
Segment Reporting Information [Line Items] | |||||
Regulatory assets | 374 | 374 | 385 | ||
Operating Segments | Electric | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,207 | 1,037 | 2,256 | 1,989 | |
Net Income (Loss) | 215 | 180 | 336 | 303 | |
Total Assets | 22,176 | 22,176 | 21,089 | ||
Operating Segments | Natural Gas | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 695 | 764 | 2,265 | 2,539 | |
Net Income (Loss) | 47 | 35 | 330 | 269 | |
Total Assets | 17,669 | 17,669 | 17,429 | ||
Operating Segments | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3 | 74 | 4 | 126 | |
Net Income (Loss) | (34) | $ (97) | (88) | $ (129) | |
Total Assets | $ 1,131 | $ 1,131 | $ 1,197 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow and Balance Sheet Information (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Interest, net of capitalized interest | $ 404 | $ 317 | ||
Income tax payments (refunds), net | (4) | 154 | ||
Accounts payable related to capital expenditures | 517 | 297 | ||
ROU assets obtained in exchange for lease liabilities | 5 | 3 | ||
Cash and cash equivalents | $ 66 | $ 90 | ||
Restricted Cash and Cash Equivalents, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets | Prepaid expenses and other current assets | ||
Restricted cash included in Prepaid expenses and other current assets | $ 16 | $ 19 | ||
Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows | 82 | 232 | 109 | $ 91 |
Bond Companies and Securitization Bond Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 66 | 90 | ||
Houston Electric | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Interest, net of capitalized interest | 142 | 128 | ||
Income tax payments (refunds), net | 25 | 1 | ||
Accounts payable related to capital expenditures | 432 | 164 | ||
ROU assets obtained in exchange for lease liabilities | 0 | 1 | ||
Cash and cash equivalents | 61 | 76 | ||
Restricted cash included in Prepaid expenses and other current assets | 13 | 13 | ||
Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows | 74 | 74 | 89 | 88 |
Houston Electric | Other Current Liabilities | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Contributions in aid of construction | 68 | 47 | ||
Houston Electric | Bond Companies | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 61 | 76 | ||
CERC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Interest, net of capitalized interest | 111 | 82 | ||
Income tax payments (refunds), net | 6 | 34 | ||
Accounts payable related to capital expenditures | 89 | 133 | ||
ROU assets obtained in exchange for lease liabilities | 0 | 0 | ||
Cash and cash equivalents | 1 | 1 | ||
Restricted cash included in Prepaid expenses and other current assets | 0 | 0 | ||
Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows | 1 | $ 1 | 1 | $ 0 |
CERC | Credits Related to Customers on Budget Billing Programs | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Contract with customer, liability, current, budget billing programs | $ 76 | $ 118 |
Related Party Transactions (H_3
Related Party Transactions (Houston Electric and CERC) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Houston Electric | |||||
Related Party Transaction [Line Items] | |||||
Money pool investments (borrowings) | $ 287 | $ 287 | $ 238 | ||
Cash dividends paid to parent | 119 | $ 109 | 155 | $ 160 | |
Houston Electric | Additional Paid-in-Capital | |||||
Related Party Transaction [Line Items] | |||||
Contribution from parent | 0 | 0 | 230 | 650 | |
Houston Electric | Operation and maintenance expense | |||||
Related Party Transaction [Line Items] | |||||
Net affiliate service charges (billings) | (2) | (3) | (3) | (6) | |
Houston Electric | Operation and maintenance expense | CenterPoint Energy | |||||
Related Party Transaction [Line Items] | |||||
Corporate service charges | $ 44 | 40 | $ 79 | 75 | |
Houston Electric | Investments | |||||
Related Party Transaction [Line Items] | |||||
Weighted average interest rate | 5.54% | 5.54% | 5.59% | ||
CERC | |||||
Related Party Transaction [Line Items] | |||||
Money pool investments (borrowings) | $ 72 | $ 72 | $ 1 | ||
Cash dividends paid to parent | 131 | 107 | 246 | 311 | |
CERC | Additional Paid-in-Capital | |||||
Related Party Transaction [Line Items] | |||||
Contribution from parent | 290 | 500 | 290 | 500 | |
CERC | Operation and maintenance expense | |||||
Related Party Transaction [Line Items] | |||||
Net affiliate service charges (billings) | 2 | 3 | 3 | 6 | |
CERC | Operation and maintenance expense | CenterPoint Energy | |||||
Related Party Transaction [Line Items] | |||||
Corporate service charges | $ 55 | $ 56 | $ 106 | $ 106 | |
CERC | Investments | |||||
Related Party Transaction [Line Items] | |||||
Weighted average interest rate | 5.54% | 5.54% | 5.59% |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Preferred Stock Dividends and Other Adjustments [Abstract] | ||||
Preferred stock dividend requirement | $ 0 | $ 12 | $ 0 | $ 24 |
Total income allocated to preferred shareholders | 0 | 12 | 0 | 24 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (33) | (32) | (35) | (31) |
Net deferred gain from cash flow hedges | 1 | 0 | 4 | 0 |
Prior service cost | 2 | 0 | 2 | (1) |
Actuarial losses | 1 | 0 | ||
Other comprehensive income (loss) | 3 | 0 | 5 | (1) |
Ending Balance | (30) | (32) | (30) | (32) |
CERC | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 15 | 15 | 16 | 16 |
Net deferred gain from cash flow hedges | 0 | 0 | 0 | 0 |
Prior service cost | 0 | 0 | 0 | (1) |
Actuarial losses | (1) | 0 | ||
Other comprehensive income (loss) | 0 | 0 | (1) | (1) |
Ending Balance | $ 15 | $ 15 | 15 | 15 |
Other Pension, Postretirement and Supplemental Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Remeasurement of pension and other postretirement plans | (2) | 0 | ||
Other Pension, Postretirement and Supplemental Plans | CERC | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Remeasurement of pension and other postretirement plans | $ 0 | $ 0 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, dividends declared per share (in dollars per share) | $ 0.200 | $ 0.190 | $ 0.200 | $ 0.190 |
Common Stock dividends paid per share (in dollars per share) | 0.200 | 0.190 | 0.400 | 0.380 |
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, dividends declared (in dollars per share) | 0 | 0 | 0 | 0 |
Preferred stock dividends paid per share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 30.625 |
Preferred Stock Dividends and Other Adjustments [Abstract] | ||||
Preferred stock dividend requirement | $ 0 | $ 12 | $ 0 | $ 24 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jan. 10, 2024 | Sep. 01, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Redemption of series A preferred stock (in shares) | 800,000 | |||||
Preferred stock redemption price (per share) | $ 1,000 | |||||
At The Market Member | ||||||
Class of Stock [Line Items] | ||||||
Issuances of common stock (in shares) | 8,657,443 | 8,790,848 | ||||
Cash proceeds | $ 244 | $ 247 | ||||
Payments of stock issuance costs | 2 | 2 | ||||
Sale of stock, capacity available under program | $ 250 | $ 250 | ||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Issuances of common stock (in shares) | 9,000,000 | 0 | 9,000,000 | 0 | ||
Maximum | Common Stock | At The Market Member | ||||||
Class of Stock [Line Items] | ||||||
Sale of stock, consideration expected to be received on transaction | $ 500 |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) MW | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) MW | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Lease, Cost [Abstract] | |||||
Operating lease cost | $ 1 | $ 1 | $ 2 | $ 3 | |
Short-term lease cost | 6 | 13 | 8 | 13 | |
Total lease cost | 7 | 14 | 10 | 16 | |
Operating Leases, Lease Income [Abstract] | |||||
Operating lease income | 1 | 1 | 3 | 3 | |
Variable lease income | 1 | 0 | 1 | 1 | |
Total lease income | 2 | 1 | 4 | 4 | |
Assets and Liabilities, Lessee [Abstract] | |||||
Operating ROU assets | 17 | 17 | $ 13 | ||
Finance ROU assets | 478 | 478 | 526 | ||
Total leased assets | 495 | 495 | 539 | ||
Current operating lease liability | 3 | 3 | 3 | ||
Non-current operating lease liability | 14 | 14 | 10 | ||
Total leased liabilities | $ 17 | $ 17 | $ 13 | ||
Weighted-average remaining lease term (in years) - operating leases | 11 years 7 months 6 days | 11 years 7 months 6 days | 4 years 8 months 12 days | ||
Weighted-average discount rate - operating leases | 4.49% | 4.49% | 4.13% | ||
Weighted-average remaining lease term (in years) - finance leases | 5 years | 5 years | 5 years 6 months | ||
Weighted-average discount rate - finance leases (as a percent) | 3.60% | 3.60% | 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 current liabilities | Other current liabilities | Other current liabilities | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities | Other non-current liabilities | ||
Operating Lease Liabilities, Payments Due [Abstract] | |||||
Remainder of 2024 | $ 2 | $ 2 | |||
2025 | 4 | 4 | |||
2026 | 4 | 4 | |||
2027 | 2 | 2 | |||
2028 | 1 | 1 | |||
2029 | 10 | 10 | |||
2030 and beyond | 1 | 1 | |||
Total lease payments | 24 | 24 | |||
Less: Interest | 7 | 7 | |||
Present value of lease liabilities | 17 | 17 | $ 13 | ||
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||||
Remainder of 2024 | 3 | 3 | |||
2025 | 6 | 6 | |||
2026 | 7 | 7 | |||
2027 | 7 | 7 | |||
2028 | 7 | 7 | |||
2029 | 7 | 7 | |||
2030 and beyond | 158 | 158 | |||
Total lease payments to be received | 195 | 195 | |||
Other Information Related to Leases [Abstract] | |||||
Operating cash flows from operating leases included in the measurement of lease liabilities | 2 | 3 | |||
Houston Electric | |||||
Lease Disclosure [Line Items] | |||||
Expenses associated with short-term lease | $ 95 | $ 95 | 100 | ||
Number of megawatts of mobile generation | MW | 505 | 505 | |||
Escrow deposit | $ 88 | $ 88 | |||
Expenses associated with long term lease | $ 139 | $ 139 | 124 | ||
Right to terminate, lease costs refunded (as a percent) | 75% | 75% | |||
Lease, Cost [Abstract] | |||||
Operating lease cost | $ 1 | 0 | $ 2 | 1 | |
Short-term lease cost | 5 | 14 | 7 | 13 | |
Total lease cost | 6 | 14 | 9 | 14 | |
Operating Leases, Lease Income [Abstract] | |||||
Operating lease income | 0 | 0 | 0 | 0 | |
Variable lease income | 0 | 0 | 0 | 0 | |
Total lease income | 0 | 0 | 0 | 0 | |
Assets and Liabilities, Lessee [Abstract] | |||||
Operating ROU assets | 6 | 6 | 6 | ||
Finance ROU assets | 478 | 478 | 526 | ||
Total leased assets | 484 | 484 | 532 | ||
Current operating lease liability | 1 | 1 | 1 | ||
Non-current operating lease liability | 4 | 4 | 5 | ||
Total leased liabilities | $ 5 | $ 5 | $ 6 | ||
Weighted-average remaining lease term (in years) - operating leases | 3 years 4 months 24 days | 3 years 4 months 24 days | 3 years 10 months 24 days | ||
Weighted-average discount rate - operating leases | 4.11% | 4.11% | 4.09% | ||
Weighted-average remaining lease term (in years) - finance leases | 5 years | 5 years | 5 years 6 months | ||
Weighted-average discount rate - finance leases (as a percent) | 3.60% | 3.60% | 3.60% | ||
Operating Lease Liabilities, Payments Due [Abstract] | |||||
Remainder of 2024 | $ 1 | $ 1 | |||
2025 | 2 | 2 | |||
2026 | 1 | 1 | |||
2027 | 1 | 1 | |||
2028 | 0 | 0 | |||
2029 | 0 | 0 | |||
2030 and beyond | 0 | 0 | |||
Total lease payments | 5 | 5 | |||
Less: Interest | 0 | 0 | |||
Present value of lease liabilities | 5 | 5 | $ 6 | ||
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||||
Remainder of 2024 | 0 | 0 | |||
2025 | 1 | 1 | |||
2026 | 0 | 0 | |||
2027 | 0 | 0 | |||
2028 | 0 | 0 | |||
2029 | 0 | 0 | |||
2030 and beyond | 0 | 0 | |||
Total lease payments to be received | 1 | 1 | |||
Other Information Related to Leases [Abstract] | |||||
Operating cash flows from operating leases included in the measurement of lease liabilities | 1 | 1 | |||
CERC | |||||
Lease, Cost [Abstract] | |||||
Operating lease cost | 1 | 1 | 1 | 1 | |
Short-term lease cost | 0 | 0 | 0 | 0 | |
Total lease cost | 1 | 1 | 1 | 1 | |
Operating Leases, Lease Income [Abstract] | |||||
Operating lease income | 1 | 1 | 2 | 2 | |
Variable lease income | 0 | 0 | 0 | 0 | |
Total lease income | 1 | $ 1 | 2 | 2 | |
Assets and Liabilities, Lessee [Abstract] | |||||
Operating ROU assets | 4 | 4 | 4 | ||
Finance ROU assets | 0 | 0 | 0 | ||
Total leased assets | 4 | 4 | 4 | ||
Current operating lease liability | 1 | 1 | 1 | ||
Non-current operating lease liability | 3 | 3 | 3 | ||
Total leased liabilities | $ 4 | $ 4 | $ 4 | ||
Weighted-average remaining lease term (in years) - operating leases | 3 years 4 months 24 days | 3 years 4 months 24 days | 3 years 1 month 6 days | ||
Weighted-average discount rate - operating leases | 3.95% | 3.95% | 3.60% | ||
Weighted-average discount rate - finance leases (as a percent) | 0% | 0% | 0% | ||
Operating Lease Liabilities, Payments Due [Abstract] | |||||
Remainder of 2024 | $ 1 | $ 1 | |||
2025 | 2 | 2 | |||
2026 | 1 | 1 | |||
2027 | 0 | 0 | |||
2028 | 0 | 0 | |||
2029 | 0 | 0 | |||
2030 and beyond | 0 | 0 | |||
Total lease payments | 4 | 4 | |||
Less: Interest | 0 | 0 | |||
Present value of lease liabilities | 4 | 4 | $ 4 | ||
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||||
Remainder of 2024 | 2 | 2 | |||
2025 | 4 | 4 | |||
2026 | 5 | 5 | |||
2027 | 5 | 5 | |||
2028 | 5 | 5 | |||
2029 | 6 | 6 | |||
2030 and beyond | 156 | 156 | |||
Total lease payments to be received | $ 183 | 183 | |||
Other Information Related to Leases [Abstract] | |||||
Operating cash flows from operating leases included in the measurement of lease liabilities | $ 1 | $ 1 |
Subsequent Events (CenterPoin_2
Subsequent Events (CenterPoint Energy and Houston Electric) - Narrative (Details) - Subsequent Event - Hurricane Beryl $ in Billions | Jul. 08, 2024 USD ($) |
Minimum | |
Subsequent Event [Line Items] | |
Estimated storm restoration costs | $ 1.2 |
Maximum | |
Subsequent Event [Line Items] | |
Estimated storm restoration costs | $ 1.3 |