(Mark One) | |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
FOR THE FISCAL YEAR ENDED DECEMBER 31, | |
OR | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
FOR THE TRANSITION PERIOD FROM TO |
Registrant, State or of | ||||
Commission file number | Address of Principal Executive Offices, Zip Code and Telephone Number | I.R.S. Employer Identification No. | ||
1-31447 | CenterPoint Energy, Inc. | 74-0694415 | ||
(a Texas corporation) | ||||
1111 Louisiana | ||||
Houston, | Texas | 77002 | ||
(713) | 207-1111 | |||
1-3187 | CenterPoint Energy Houston Electric, LLC | 22-3865106 | ||
( | ||||
1111 Louisiana | ||||
Houston, | Texas | 77002 | ||
(713) | 207-1111 | |||
1-13265 | CenterPoint Energy Resources Corp. | 76-0511406 | ||
(a Delaware corporation) | ||||
1111 Louisiana | ||||
Houston, | Texas | 77002 | ||
(713) | 207-1111 | |||
Securities registered pursuant to Section 12(b) of the Act: | |||
Registrant | Title of each class | Trading symbol(s) | Name of each exchange on which registered |
CenterPoint Energy, Inc. | Common Stock, $0.01 par value | CNP | New York Stock Exchange |
Chicago Stock Exchange | |||
CenterPoint Energy, Inc. | Depositary shares, each representing a 1/20th interest in a share of 7.00% Series B Mandatory Convertible Preferred Stock, $0.01 par value | CNP/PB | New York Stock Exchange |
CenterPoint Energy Houston Electric, LLC | 9.15% First Mortgage Bonds due 2021 | n/a | New York Stock Exchange |
CenterPoint Energy Houston Electric, LLC | 6.95% General Mortgage Bonds due 2033 | n/a | New York Stock Exchange |
CenterPoint Energy Resources Corp. | 6.625% Senior Notes due 2037 | n/a | New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: | |||
None |
CenterPoint Energy, Inc. | Yes | þ | No o |
CenterPoint Energy Houston Electric, LLC | Yes | þ | No o |
CenterPoint Energy Resources Corp. | Yes | þ | No o |
CenterPoint Energy, Inc. | Yes o | No | þ | |
CenterPoint Energy Houston Electric, LLC | Yes o | No | þ | |
CenterPoint Energy Resources Corp. | Yes o | No | þ |
CenterPoint Energy, Inc. | Yes | þ | No o |
CenterPoint Energy Houston Electric, LLC | Yes | þ | No o |
CenterPoint Energy Resources Corp. | Yes | þ | No o |
CenterPoint Energy, Inc. | Yes | þ | No o |
CenterPoint Energy Houston Electric, LLC | Yes | þ | No o |
CenterPoint Energy Resources Corp. | Yes | þ | No o |
Large accelerated filer | Non-accelerated filer | Smaller reporting | Emerging growth company | ||
CenterPoint Energy, Inc. | þ | o | o | ☐ | ☐ |
CenterPoint Energy Houston Electric, LLC | o | o | þ | ☐ | ☐ |
CenterPoint Energy Resources Corp. | o | o | þ | ☐ | ☐ |
CenterPoint Energy, Inc. | Yes | ☐ | No þ |
CenterPoint Energy Houston Electric, LLC | Yes | ☐ | No þ |
CenterPoint Energy Resources Corp. | Yes | ☐ | No þ |
CenterPoint Energy, Inc. (using the definition of beneficial ownership contained in Rule 13d-3 promulgated pursuant to Securities Exchange Act of 1934 and excluding shares held by directors and executive officers) | $14,295,717,409 | |
CenterPoint Energy Houston Electric, LLC | NaN | |
CenterPoint Energy Resources Corp. | NaN |
CenterPoint Energy, Inc. | 502,243,185 | shares of common stock outstanding, excluding 166 shares held as treasury stock | |
CenterPoint Energy Houston Electric, LLC | 1,000 | common shares outstanding, all held by Utility Holding, LLC, a wholly-owned subsidiary of CenterPoint Energy, Inc. | |
CenterPoint Energy Resources Corp. | 1,000 | shares of common stock outstanding, all held by Utility Holding, LLC, a wholly-owned subsidiary of CenterPoint Energy, Inc. |
PART I | ||||
Page | ||||
Item 1. | Business | |||
Item 1A. | Risk Factors | |||
Item 1B. | Unresolved Staff Comments | |||
Item 2. | Properties | |||
Item 3. | Legal Proceedings | |||
Item 4. | Mine Safety Disclosures | |||
PART II | ||||
Item 5. | Market for | |||
Item 6. | Selected Financial Data | |||
Item 7. | Management’s | |||
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | |||
Item 8. | Financial Statements and Supplementary Data | |||
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |||
Item 9A. | Controls and Procedures | |||
Item 9B. | Other Information | |||
PART III | ||||
Item 10. | Directors, Executive Officers and Corporate Governance | |||
Item 11. | Executive Compensation | |||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |||
Item 13. | Certain Relationships and Related Transactions, and Director Independence | |||
Item 14. | Principal Accounting Fees and Services | |||
PART IV | ||||
Item 15. | Exhibits and Financial Statement Schedules | |||
Item 16. | Form 10-K Summary |
GLOSSARY | ||
ACE | Affordable Clean Energy | |
ADFIT | Accumulated deferred federal income taxes | |
ADMS | Advanced Distribution Management System | |
AEM | Atmos Energy Marketing, LLC, previously a wholly-owned subsidiary of Atmos Energy Holdings, Inc., a wholly-owned subsidiary of Atmos Energy Corporation | |
AFUDC | Allowance for funds used during construction | |
AGC | Alcoa Generating Corporation, a subsidiary of Alcoa, Inc. | |
Athena Energy Services | Athena Energy Services Buyer, LLC, a Delaware limited liability company and subsidiary of Energy Capital Partners, LLC | |
AMAs | Asset Management Agreements | |
AMS | Advanced Metering System | |
APSC | Arkansas Public Service Commission | |
ARAM | Average rate assumption method | |
ARO | Asset retirement obligation | |
ARP | Alternative revenue program | |
ASC | Accounting Standards Codification | |
ASU | Accounting Standards Update | |
AT&T | AT&T Inc. | |
AT&T Common | AT&T common stock | |
Bailey to Jones Creek Project | A transmission project in the greater Freeport, Texas area, which includes enhancements to two existing substations and the construction of a new 345 kV double-circuit line to be located in the counties of Brazoria, Matagorda and Wharton | |
Bcf | Billion cubic feet | |
Bond Companies | ||
Bond Company II | CenterPoint Energy Transition Bond Company II, LLC, a wholly-owned subsidiary of Houston Electric | |
Bond Company III | CenterPoint Energy Transition Bond Company III, LLC, a wholly-owned subsidiary of Houston Electric | |
Bond Company IV | CenterPoint Energy Transition Bond Company IV, LLC, a wholly-owned subsidiary of Houston Electric | |
Brazos Valley Connection | A portion of the Houston region transmission project between Houston Electric’s Zenith substation and the Gibbons Creek substation owned by the Texas Municipal Power Agency | |
Bridge Facility | A $5 billion 364-day senior unsecured bridge term loan facility | |
BTA | Best technology available | |
CCR | Coal Combustion Residuals | |
CEA | Commodities Exchange Act of 1936 | |
CECA | Clean Energy Cost Adjustment | |
CECL | Current expected credit losses | |
CEIP | CenterPoint Energy Intrastate Pipelines, LLC | |
CenterPoint Energy | CenterPoint Energy, Inc., and its subsidiaries | |
CERC Corp. | CenterPoint Energy Resources Corp. | |
CERC | CERC Corp., together with its subsidiaries | |
CERCLA | Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended | |
CES | CenterPoint Energy Services, Inc., a wholly-owned subsidiary of CERC Corp. | |
CFTC | Commodity Futures Trading Commission | |
Charter Common | Charter Communications, Inc. common stock | |
CIP | Conservation Improvement Program | |
CME | Chicago Mercantile Exchange | |
CNG | Compressed natural gas |
GLOSSARY | ||
CNP Midstream | CenterPoint Energy Midstream, Inc., a wholly-owned subsidiary of CenterPoint Energy | |
Code | The Internal Revenue Code of 1986, as amended | |
Common Stock | CenterPoint Energy, Inc. common stock, par value $0.01 per share | |
Continuum | The retail energy services business of Continuum Retail Energy Services, LLC, including its wholly-owned subsidiary Lakeshore Energy Services, LLC and the natural gas wholesale assets of Continuum Energy Services, LLC | |
CPP | Clean Power Plan | |
CSIA | Compliance and System Improvement Adjustment | |
DCA | Distribution Contractors Association | |
DCRF | Distribution Cost Recovery Factor | |
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 | ||
DOT | U.S. Department of | |
DRR | Distribution Replacement Rider | |
DSMA | Demand Side Management Adjustment | |
Dth | Dekatherms | |
ECA | Environmental Cost Adjustment | |
EDIT | Excess deferred income taxes | |
EECR | Energy Efficiency Cost Recovery | |
EECRF | Energy Efficiency Cost Recovery Factor | |
EIN | Employer Identification Number | |
ELG | Effluent Limitation Guidelines | |
Enable | Enable Midstream Partners, LP | |
Enable GP | Enable GP, LLC, Enable’s general partner | |
Enable Series A Preferred Units | Enable’s 10% Series A Fixed-to-Floating Non-Cumulative Redeemable Perpetual Preferred Units, representing limited partner interests in Enable | |
EPA | Environmental Protection Agency | |
EPAct of 2005 | Energy Policy Act of 2005 | |
Equity Purchase Agreement | Equity Purchase Agreement, dated as of February 24, 2020, by and between CERC Corp. and Athena Energy Services | |
ERCOT | Electric Reliability Council of Texas | |
ERCOT ISO | ERCOT Independent System Operator | |
ERISA | Employee Retirement Income Security Act of 1974 | |
ERO | Electric Reliability Organization | |
ESPC | Energy Savings Performance Contracting | |
FAC | Fuel Adjustment Clause | |
FERC | Federal Energy Regulatory Commission | |
FIP | Funding Improvement Plan | |
Fitch | Fitch Ratings, Inc. | |
FPA | Federal Power Act | |
FRP | Formula Rate Plan | |
Gas Daily | Platts gas daily indices | |
GenOn | GenOn Energy, Inc. | |
GHG | Greenhouse gases | |
GRIP | Gas Reliability Infrastructure Program | |
GWh | Gigawatt-hours | |
Hart-Scott-Rodino Act | Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended | |
Houston Electric | CenterPoint Energy Houston Electric, LLC and its subsidiaries | |
HVAC | Heating, ventilation and air conditioning |
GLOSSARY | ||
IBEW | International Brotherhood of Electrical Workers | |
ICA | Interstate Commerce Act of 1887 | |
ICPA | Inter-Company Power Agreement | |
IDEM | Indiana Department of Environmental Management | |
IG | Intelligent Grid | |
Indiana Electric | Operations of SIGECO’s electric transmission and distribution services, and includes its power generating and wholesale power operations | |
Indiana Gas | Indiana Gas Company, Inc., a wholly-owned subsidiary of Vectren | |
Infrastructure Services | Provides underground pipeline construction and repair services through Vectren’s wholly-owned subsidiaries Miller Pipeline, LLC and Minnesota Limited, LLC | |
Internal Spin | CERC’s contribution of its equity investment in Enable to CNP Midstream (detailed in Note 11 to the consolidated financial statements) | |
IRP | Integrated Resource Plan | |
IRS | Internal Revenue Service | |
IURC | Indiana Utility Regulatory Commission | |
kV | Kilovolt | |
LIBOR | London Interbank Offered Rate | |
LNG | Liquefied natural gas | |
LPSC | Louisiana Public Service Commission | |
LTIPs | Long-term incentive plans | |
MATS | Mercury and Air Toxics | |
MCRA | MISO Cost and Revenue Adjustment | |
Meredith | Meredith Corporation | |
Merger | The merger of Merger Sub with and into Vectren on the terms and subject to the conditions set forth in the Merger Agreement, with Vectren continuing as the surviving corporation and as a wholly-owned subsidiary of CenterPoint Energy, Inc., which closed on February 1, 2019 | |
Merger Agreement | Agreement and Plan of Merger, dated as of April 21, 2018, among CenterPoint Energy, Vectren and Merger Sub | |
Merger Sub | Pacer Merger Sub, Inc., an Indiana corporation and wholly-owned subsidiary of CenterPoint Energy | |
MES | Mobile Energy Solutions | |
MGP | Manufactured gas plant | |
MISO | Midcontinent Independent System Operator | |
MLP | Master Limited Partnership | |
MMBtu | One million British thermal units | |
MMcf | Million cubic feet | |
Moody’s | Moody’s Investors Service, Inc. | |
MP2018 | 2018 pension mortality improvement scale developed annually by the Society of Actuaries | |
MPSC | Mississippi Public Service Commission | |
MPUC | Minnesota Public Utilities Commission | |
MRT | Enable-Mississippi River Transmission, LLC | |
Mva | Megavolt amperes | |
MW | Megawatt | |
NECA | National Electrical Contractors Association | |
NERC | North American Electric Reliability Corporation | |
NESHAPS | National Emission Standards for Hazardous Air Pollutants | |
NGA | Natural Gas Act of 1938 | |
NGD | Natural gas distribution business | |
NGLs | Natural gas liquids | |
NGPA | Natural Gas Policy Act of 1978 |
GLOSSARY | ||
NGPSA | Natural Gas Pipeline Safety Act of 1968 | |
NOPR | Notice of Proposed Rulemaking | |
NRG | NRG Energy, Inc. | |
NYMEX | New York Mercantile Exchange | |
NYSE | New York Stock Exchange | |
OCC | Oklahoma Corporation Commission | |
OGE | OGE Energy Corp. | |
OPEIU | Office & Professional Employees International Union | |
OVEC | Ohio Valley Electric Corporation | |
PAS | Power Alert Service | |
PBRC | Performance Based Rate Change | |
PFD | Proposal for decision | |
PHMSA | Pipeline and Hazardous Materials Safety Administration | |
PLCA | Pipeline Contractors Association | |
PowerTeam Services | PowerTeam Services, LLC, a Delaware limited liability company | |
PRPs | Potentially responsible parties | |
PUCO | Public Utilities Commission of Ohio | |
PUCT | Public Utility Commission of Texas | |
Railroad Commission | Railroad Commission of Texas | |
RCRA | Resource Conservation and Recovery Act of 1976 | |
Registrants | CenterPoint Energy, Houston Electric and CERC, collectively | |
Reliant Energy | Reliant Energy, Incorporated | |
REP | Retail electric provider | |
Restoration Bond Company | CenterPoint Energy Restoration Bond Company, LLC, |
a wholly-owned subsidiary of Houston Electric | ||
Revised Policy Statement | Revised Policy Statement on Treatment of Income Taxes | |
Reciprocating Internal Combustion Engines Maximum Achievable Control Technology | ||
ROE | Return on equity | |
RP | Rehabilitation Plan | |
RRA | Rate Regulation Adjustment | |
RRI | Reliant Resources, Inc. | |
RSP | Rate Stabilization Plan | |
SEC | Securities and Exchange Commission | |
SESH | Southeast Supply Header, LLC | |
Securities Purchase Agreement | Securities Purchase Agreement, dated as of February 3, 2020, by and among VUSI, PowerTeam Services and, solely for purposes of Section 10.17 of the Securities Purchase Agreement, Vectren | |
Securitization Bonds | Transition and system restoration bonds | |
Series A Preferred Stock | CenterPoint Energy’s Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share, with a liquidation preference of $1,000 per share | |
Series B Preferred Stock | CenterPoint Energy’s 7.00% Series B Mandatory Convertible Preferred Stock, par value $0.01 per share, with a liquidation preference of $1,000 per share | |
SIGECO | Southern Indiana Gas and Electric Company, a wholly-owned subsidiary of Vectren | |
S&P | ||
TBD | To be determined | |
TCEH Corp. | Formerly Texas Competitive Electric Holdings Company LLC, predecessor to Vistra Energy Corp. whose major subsidiaries include Luminant and TXU Energy | |
TCJA | Tax reform legislation informally called the Tax Cuts and Jobs Act of | |
TCOS | Transmission Cost of Service |
GLOSSARY | ||
TCRF | Transmission Cost Recovery Factor | |
TDSIC | Transmission, Distribution and Storage System Improvement Charge | |
TDU | Transmission and distribution utility | |
Time Inc. | ||
Transition Agreements | Services Agreement, Employee Transition Agreement, Transitional Seconding Agreement and other agreements entered into in connection with the formation of Enable | |
Texas RE | Texas Reliability Entity | |
TW | Time Warner Inc. | |
TW Common | TW common stock | |
UESC | Utility Energy Services Contract | |
USW | United Steelworkers Union | |
Utility Holding | Utility Holding, LLC, a wholly-owned subsidiary of CenterPoint Energy | |
VaR | Value at Risk | |
Vectren | Vectren Corporation, a wholly-owned subsidiary of CenterPoint Energy | |
VEDO | Vectren Energy Delivery of Ohio, Inc., a wholly-owned subsidiary of Vectren | |
VIE | Variable interest entity | |
VISCO | Vectren Infrastructure Services Corporation, a wholly-owned subsidiary of Vectren | |
Vistra Energy Corp. | Texas-based energy company focused on the competitive energy and power generation markets | |
VUHI | Vectren Utility Holdings, Inc., a wholly-owned subsidiary of Vectren | |
VUSI | Vectren Utility Services, Inc., a wholly-owned subsidiary of Vectren | |
WACC | Weighted average cost of capital | |
ZENS | 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 | |
ZENS-Related Securities | As of both December 31, 2019 and 2018, consisted of AT&T Common and Charter Common | |
2002 Act | Pipeline Safety Improvement Act of 2002 | |
2006 Act | Pipeline Inspection, Protection, Enforcement and Safety Act of 2006 | |
2011 Act | Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 | |
2016 Act | Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2016 |
Item 1. | Business |
(1) | Houston Electric engages in the electric transmission and distribution business in the Texas Gulf Coast area that includes the city of Houston. |
(2) | Bond Companies are wholly-owned, bankruptcy remote entities formed solely for the purpose of purchasing and owning transition or system restoration property through the issuance of Securitization Bonds. |
(3) | CERC’s NGD operates natural gas distribution systems in six states. |
(4) | CES obtains and offers competitive variable and fixed-price physical natural gas supplies and services primarily to commercial and industrial customers and electric and natural gas utilities in over 30 states. |
(5) | As of December 31, 2019, CNP Midstream owned approximately 53.7% of the common units representing limited partner interests in Enable, which owns, operates and develops natural gas and crude oil infrastructure assets; CNP Midstream also owned 50% of the management rights and 40% of the incentive distribution rights in Enable GP. For additional information regarding CenterPoint Energy’s interest in Enable, including the 14,520,000 Enable Series A Preferred Units directly owned by CenterPoint Energy, see Note 11 to the consolidated financial statements. |
(6) | Vectren engages in regulated operations through three public utilities: |
Registrants | Houston Electric T&D | Indiana Electric Integrated | Natural Gas Distribution | Energy Services | Infrastructure Services | Midstream Investments | Corporate and Other | |||||||
CenterPoint Energy | X | X | X | X | X | X | X | |||||||
Houston Electric | X | |||||||||||||
CERC | X | X | X |
Residential | Commercial/ Industrial | Total Customers | ||||||
Texas Gulf Coast | 2,243,188 | 291,098 | 2,534,286 |
Circuit Miles | ||||||
Description | Overhead Lines | Underground Lines | ||||
Transmission lines - 69 kV | 259 | 2 | ||||
Transmission lines - 138 kV | 2,215 | 24 | ||||
Transmission lines - 345 kV | 1,337 | — | ||||
Total transmission lines | 3,811 | 26 | ||||
Distribution lines | 29,303 | 25,935 |
Residential | Commercial/Industrial | Total Customers | ||||||
Indiana | 128,947 | 18,995 | 147,942 |
2019 | ||
Total load at peak | 1,055 | |
Generating capability | 1,167 | |
Purchase supply (effective capacity) | 60 | |
Interruptible contracts & direct load control | 62 | |
Total power supply capacity | 1,289 | |
Reserve margin at peak | 22 | % |
Generation Source | Unit No. | Location | Date in Service | Capacity (MW) | ||||
Coal | ||||||||
A.B. Brown | 1 | Posey County | 1979 | 245 | ||||
A.B. Brown | 2 | Posey County | 1986 | 245 | ||||
F.B. Culley | 2 | Warrick County | 1966 | 90 | ||||
F.B. Culley | 3 | Warrick County | 1973 | 270 | ||||
Warrick (1) | 4 | Warrick County | 1970 | 150 | ||||
Total Coal Capacity | 1,000 | |||||||
Gas (2) | ||||||||
Brown (3) | 3 | Brown County | 1991 | 80 | ||||
Brown | 4 | Brown County | 2002 | 80 | ||||
Landfill Gas | Pike County | 2009 | 3 | |||||
Total Gas Capacity | 163 | |||||||
Solar | ||||||||
Oak Hill | Evansville, Indiana | 2018 | 2 | |||||
Volkman | Evansville, Indiana | 2018 | 2 | |||||
Total Solar Capacity | 4 | |||||||
Total Generating Capacity | 1,167 |
(1) | SIGECO and AGC own a 300 MW unit at the Warrick Power Plant as tenants in common. |
(2) | The Northeast Gas Turbines with 20 MW of combined capacity were retired in April 2019. Broadway Avenue Unit 2 with 65 MW of capacity was retired in December 2019. |
(3) | Brown Unit 3 is also equipped to burn oil. |
Circuit Miles | ||||||
Description | Indiana | Kentucky (1) | ||||
Transmission lines - 69 kV | 548 | — | ||||
Transmission lines - 138 kV | 408 | 9 | ||||
Transmission lines - 345 kV | 48 | 15 | ||||
Total transmission lines | 1,004 | 24 |
Circuit Miles | ||||||
Description | Overhead Lines | Underground Lines | ||||
Distribution lines | 4,559 | 2,483 |
(1) | These assets interconnect with Louisville Gas and Electric Company’s transmission system at Cloverport, Kentucky and with Big Rivers Electric Cooperative at Sebree, Kentucky. |
Residential | Commercial/ Industrial/Transportation | Total Customers | ||||||
Arkansas | 376,160 | 47,729 | 423,889 | |||||
Louisiana | 230,248 | 16,560 | 246,808 | |||||
Minnesota | 807,713 | 71,092 | 878,805 | |||||
Mississippi | 118,601 | 13,055 | 131,656 | |||||
Oklahoma | 88,287 | 10,768 | 99,055 | |||||
Texas | 1,666,334 | 101,668 | 1,768,002 | |||||
Total CERC NGD | 3,287,343 | 260,872 | 3,548,215 | |||||
Indiana | 664,665 | 64,382 | 729,047 | |||||
Ohio | 300,353 | 24,495 | 324,848 | |||||
Total CenterPoint Energy NGD | 4,252,361 | 349,749 | 4,602,110 |
No. of Assets | Storage Capacity (Bcf) | Working Capacity (Bcf) | Maximum Daily Withdrawal Rate (MMcf) | |||||||
CenterPoint Energy | ||||||||||
Underground Natural Gas Storage Facility | 9 | 43.6 | 14.2 | 337 | ||||||
CERC | ||||||||||
Underground Natural Gas Storage Facility | 1 | 7.0 | 2.0 | 50 |
On-site Storage Capacity | ||||||||||
No. of Assets | Daily Production Rate (Dth) | Millions of Gallons | Dth | |||||||
CenterPoint Energy | ||||||||||
Propane Air-Gas Manufacturing Plant | 13 | 231,000 | 13.5 | 1,187,000 | ||||||
LNG Plant Facility | 1 | 72,000 | 12.0 | 1,000,000 | ||||||
CERC | ||||||||||
Propane Air-Gas Manufacturing Plant | 10 | 198,000 | 12.0 | 1,050,000 | ||||||
LNG Plant Facility | 1 | 72,000 | 12.0 | 1,000,000 |
Storage Capacity (Bcf) | Maximum Peak Daily Delivery (MMcf) | |||||
CenterPoint Energy | ||||||
Upstream Storage Service | 115 | 2,744 | ||||
CERC | ||||||
Upstream Storage Service | 92 | 2,298 |
Number of Employees | Number of Employees Represented by Collective Bargaining Groups | |||||||||||||||||
Reportable Segment | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||
Houston Electric T&D | 2,768 | 2,768 | — | 1,424 | 1,424 | — | ||||||||||||
Indiana Electric Integrated | 443 | — | — | 221 | — | — | ||||||||||||
Natural Gas Distribution | 4,003 | — | 3,284 | 1,632 | — | 1,207 | ||||||||||||
Energy Services | 293 | — | 293 | — | — | — | ||||||||||||
Infrastructure Services | 4,345 | — | — | 3,850 | — | — | ||||||||||||
Corporate and Other | 2,410 | — | — | 178 | — | — | ||||||||||||
Total | 14,262 | 2,768 | 3,577 | 7,305 | 1,424 | 1,207 |
Name | Age | Title | ||
Milton Carroll | 69 | Executive Chairman | ||
John W. Somerhalder II | 64 | Interim President and Chief Executive Officer and Director | ||
Xia Liu | 50 | Executive Vice President and Chief Financial Officer | ||
Scott E. Doyle | 48 | Executive Vice President, Natural Gas Distribution | ||
Kenneth M. Mercado | 57 | Senior Vice President, Electric Operations | ||
Joseph J. Vortherms | 59 | Senior Vice President, Competitive Energy Businesses | ||
Jason M. Ryan | 44 | Senior Vice President and General Counsel | ||
Sue B. Ortenstone | 63 | Senior Vice President and Chief Human Resources Officer |
Item 1A. | Risk Factors |
• | Contract Renewal: Enable’s contracts are subject to renewal risks. To the extent Enable is unable to renew or replace its expiring contracts on terms that are favorable, if at all, or successfully manage its overall contract mix over time, its financial position, results of operations and ability to make cash distributions could be adversely affected; |
• | Customers: Enable depends on a small number of customers for a significant portion of its gathering and processing revenues and its transportation and storage revenues. The loss of, or reduction in volumes from, these customers or the failure to extend or replace these contracts or the extension or replacement of these contracts on less favorable terms, as a result of competition or otherwise, could result in a decline in sales of its gathering and processing or transportation |
• | Third-Party Drilling and Production Decisions: Enable’s businesses are dependent, in part, on the natural gas and crude oil drilling and production market conditions and decisions of others, over which Enable has no control. Further, sustained reductions in exploration or production activity in Enable’s areas of operation and fluctuations in energy prices could lead to further reductions in the utilization of Enable’s systems, which could adversely affect its financial position, results of operations and ability to make cash distributions. It may also become more difficult to maintain or increase the current volumes on Enable’s gathering systems and in its processing plants, as several of the formations in the unconventional resource plays in which it operates generally have higher initial production rates and steeper production decline curves than wells in more conventional basins. Should Enable determine that the economics of its gathering assets do not justify the capital expenditures needed to grow or maintain volumes associated therewith, Enable may reduce such capital expenditures, which could cause revenues associated with these assets to decline over time; |
• | Competition: Enable competes with similar enterprises, some of which include public and private energy companies with greater financial resources and access to natural gas, NGL and crude oil supplies, in its respective areas of operation, primarily through rates, terms of service and flexibility and reliability of service. Increased competitive pressure in Enable’s industry, which is already highly competitive, could adversely affect Enable’s financial position, results of operations and ability to make cash distributions; |
• | Cost Recovery of Capital Improvements: Enable may not be able to recover the costs of its substantial planned investment in capital improvements and additions, and the actual cost of such improvements and additions may be significantly higher than it anticipates. In Enable’s Form 10-K for the fiscal year ended December 31, 2019, Enable stated that it expects that its expansion capital could range from approximately $160 million to $240 million and its maintenance capital could range from approximately $110 million to $130 million for the year ending December 31, 2020; |
• | Commodity Prices: Natural gas, NGL and crude oil prices are volatile, and changes in these prices could adversely affect Enable’s financial position, results of operations and ability to make cash distributions. Factors affecting prices are beyond Enable’s control and include the following: (i) demand for these commodities, which fluctuates with changes in market and economic conditions and other factors, including the impact of seasonality and weather, general economic conditions, the level of domestic and offshore natural gas production and consumption, (ii) the availability of imported natural gas, LNG, NGLs and crude oil, (iii) actions taken by foreign natural gas and oil producing nations, (iv) the availability of local, intrastate and interstate transportation systems, (v) the availability and marketing of competitive fuels, (vi) the impact of energy conservation efforts, technological advances affecting energy consumption and (vii) the extent of governmental regulation and taxation. Further, Enable’s natural gas processing arrangements expose it to commodity price fluctuations. In 2019, 4%, 26% and 70% of Enable’s processing plant inlet volumes consisted of keep-whole arrangements, percent-of-proceeds or percent-of-liquids and fee-based, respectively. If the price at which Enable sells natural gas or NGLs is less than the cost at which Enable purchases natural gas or NGLs under these arrangements, then Enable’s financial position, results of operations and ability to make cash distributions could be adversely affected; |
• | Credit Risk of Customers: Enable is exposed to credit risks of its customers, and any material nonpayment or nonperformance by its customers, whether through severe financial problems or otherwise, could adversely affect its financial position, results of operations and ability to make cash distributions; |
• | “Negotiated Rate” Contracts: Enable provides certain transportation and storage services under fixed-price “negotiated rate” contracts, which are authorized by the FERC, that are not subject to adjustment, even if its cost to perform these services exceeds the revenues received from these contracts. As of December 31, 2019, approximately 37% of Enable’s aggregate contracted firm transportation capacity on EGT and MRT and 93% of its aggregate contracted firm storage capacity on EGT and MRT, was subscribed under such “negotiated rate” contracts. The majority of Enable’s aggregate contracted firm transportation capacity and all of its aggregate contracted firm storage capacity under negotiated rate contracts on MRT are subject to the FERC’s rate case approval. As a result, Enable’s costs could exceed its revenues received under these contracts, and if Enable’s costs increase and it is not able to recover any shortfall of revenue associated with its negotiated rate contracts, the cash flow realized by its systems could decrease and, therefore, the cash Enable has available for distribution could also decrease; |
• | Unavailability of Interconnected Facilities: If third-party pipelines and other facilities interconnected to Enable’s gathering, processing or transportation facilities (including those providing transportation of natural gas and crude oil, transportation and fractionation of NGLs and electricity for compression, among other things) become partially or fully unavailable for any reason, Enable’s financial position, results of operations and ability to make cash distributions could be adversely affected; and |
• | Land Ownership: Enable does not own all of the land on which its pipelines and facilities are located, and it is therefore subject to the possibility of more onerous terms and/or increased costs to retain necessary land use if it does not have valid rights-of-way or if such rights-of-way lapse or terminate, which could disrupt its operations or result in increased costs related to the construction and continuing operations elsewhere and adversely affect its financial position, results of operations and ability to make cash distributions. |
• | Rate Regulation: The rates charged by several of Enable’s pipeline systems, including for interstate gas transportation service provided by its intrastate pipelines, are regulated by the FERC. Enable’s pipeline operations that are not regulated by the FERC may be subject to state and local regulation applicable to intrastate natural gas transportation services and crude oil gathering services. The FERC and state regulatory agencies also regulate other terms and conditions of the services Enable may offer. If one of these regulatory agencies, on its own initiative or due to challenges by third parties, were to lower its tariff rates or deny any rate increase or other material changes to the types, or terms and conditions, of service Enable might propose or offer, the profitability of Enable’s pipeline businesses could suffer. |
• | FERC Revised Policy Statement and NOPR: In a series of related issuances on March 15, 2018, the FERC issued a Revised Policy Statement stating that it will no longer permit pipelines organized as MLPs to recover an income tax allowance in their cost-of-service rates. On July 18, 2018, FERC issued a Final Rule adopting procedures that are generally the same as proposed in a March 15, 2018 NOPR implementing the Revised Policy Statement and the corporate income tax rate reduction with certain clarifications and modifications. For more information, please read “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Regulatory Matters” in Item 7 of Part II of this report, which discussion is incorporated herein by reference. If FERC requires Enable to establish new tariff rates for either its natural gas or crude oil pipelines that reflect a lower federal corporate income tax rate, it is possible the rates would be reduced, which could adversely affect Enable’s financial position, results of operations and ability to make cash distributions to its unitholders. With regard to FERC-jurisdictional |
• | Permits, Licenses and Approvals: Enable may be unable to obtain or renew federal or state permits, licenses or approvals necessary for its operations, which could inhibit its ability to do business. All of these permits, licenses, approval limits and standards require a significant amount of monitoring, record keeping and reporting to demonstrate compliance with the underlying permit, license, approval limit or standard. Noncompliance or incomplete documentation of Enable’s compliance status may result in the imposition of fines, penalties and injunctive relief. Further, to obtain new permits or renew permits and other approvals in the future, Enable may be required to prepare and present data to governmental authorities pertaining to potential adverse impact of a proposed project. Compliance with these regulatory requirements may be expensive and may significantly lengthen the time required to prepare applications and to receive authorizations and consequently could disrupt Enable’s project construction schedules; |
• | Hydraulic Fracturing Regulation: Increased regulation of hydraulic fracturing and waste water injection wells could result in reductions or delays in natural gas or crude oil production by Enable’s customers, which could adversely affect its financial position, results of operations and ability to make cash distributions; and |
• | Jurisdictional Characterization of Assets: Enable’s natural gas gathering and intrastate transportation systems are generally exempt from the jurisdiction of the FERC under the NGA, and its crude oil gathering system in the Anadarko Basin is generally exempt from the jurisdiction of the FERC under ICA. FERC regulation may indirectly impact these businesses and the markets for products derived from these businesses. Natural gas gathering and intrastate crude oil gathering may receive greater regulatory scrutiny at the state level; therefore, Enable’s operations could be adversely affected should they become subject to the application of state regulation of rates and services. A change in the jurisdictional characterization of some of Enable’s assets by federal, state or local regulatory agencies or a change in policy by those agencies may result in increased regulation of its assets, which may cause its revenues to decline and operating expenses to increase. |
• | limiting airborne emissions from electric generating facilities, including particulate matter, sulfur dioxide (SO2), nitrogen oxides (NOx), carbon dioxide (CO2) and mercury, and the disposal non-hazardous substances such as CCRs, among other things; |
Item 1B. | Unresolved Staff Comments |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Mattersand Issuer Purchases of Equity Securities |
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
Revenues | $ | 12,301 | $ | 10,589 | $ | 9,614 | $ | 7,528 | $ | 7,386 | ||||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | 230 | 307 | 265 | 208 | (1,663 | ) | (2) | |||||||||||||
Income (loss) available to common shareholders | 674 | 333 | 1,792 | (1) | 432 | (692 | ) | |||||||||||||
Basic earnings (loss) per common share | 1.34 | 0.74 | 4.16 | 1.00 | (1.61 | ) | ||||||||||||||
Diluted earnings (loss) per common share | 1.33 | 0.74 | 4.13 | 1.00 | (1.61 | ) | ||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
Cash dividends paid per common share | $ | 1.15 | $ | 1.11 | $ | 1.07 | $ | 1.03 | $ | 0.99 | ||||||||||
Dividend payout ratio | 86 | % | 150 | % | 26 | % | 103 | % | n/a | |||||||||||
Return on average common equity | 8 | % | 5 | % | 44 | % | 12 | % | (17 | )% | ||||||||||
At year-end: | ||||||||||||||||||||
Book value per common share | $ | 16.64 | $ | 16.08 | $ | 10.88 | $ | 8.04 | $ | 8.05 | ||||||||||
Market price per common share | 27.27 | 28.23 | 28.36 | 24.64 | 18.36 | |||||||||||||||
Market price as a percent of book value | 164 | % | 176 | % | 261 | % | 306 | % | 228 | % | ||||||||||
Percentage of common units owned representing limited partner interests in Enable | 53.7 | % | 54.0 | % | 54.1 | % | 54.1 | % | 55.4 | % | ||||||||||
Total assets (3) (4) | $ | 35,439 | $ | 27,009 | $ | 22,736 | $ | 21,829 | $ | 21,290 | ||||||||||
Short-term borrowings | — | — | 39 | 35 | 40 | |||||||||||||||
Securitization Bonds, including current maturities | 977 | 1,435 | 1,868 | 2,278 | 2,667 | |||||||||||||||
Other long-term debt, including current maturities (5) | 14,135 | 7,729 | 6,933 | 6,279 | 6,063 | |||||||||||||||
Capitalization: | ||||||||||||||||||||
Common stock equity | 36 | % | 47 | % | 35 | % | 29 | % | 28 | % | ||||||||||
Long-term debt, including current maturities | 64 | % | 53 | % | 65 | % | 71 | % | 72 | % | ||||||||||
Capitalization, excluding Securitization Bonds: | ||||||||||||||||||||
Common stock equity | 37 | % | 51 | % | 40 | % | 36 | % | 36 | % | ||||||||||
Long-term debt, excluding Securitization Bonds, and including current maturities | 63 | % | 49 | % | 60 | % | 64 | % | 64 | % | ||||||||||
Capital expenditures | $ | 2,587 | $ | 1,720 | $ | 1,494 | $ | 1,406 | $ | 1,575 |
(2) | This amount includes $1,846 million of non-cash impairment charges related to Enable. |
(3) | The increase in Total assets as of December 31, 2019, as compared to December 31, 2018, was primarily driven by the assets acquired in the Merger. |
(4) | Total assets as of December 31, 2018 include cash and cash equivalents of $4.2 billion. |
(5) | The increase in Other long-term debt, including current maturities as of December 31, 2019, as compared to December 31, 2018, was primarily driven by debt incurred to finance the Merger and debt acquired in the Merger. |
Item 7. | Management’s |
Registrants | Houston Electric T&D | Indiana Electric Integrated | Natural Gas Distribution | Energy Services | Infrastructure Services | Midstream Investments | Corporate and Other | |||||||
CenterPoint Energy | X | X | X | X | X | X | X | |||||||
Houston Electric | X | |||||||||||||
CERC | X | X | X |
• | Energy Services reportable segment includes non-rate regulated natural gas sales to, and transportation and storage services, for commercial and industrial customers. For further information about the Energy Services reportable segment, see “Business — Our Business — Energy Services��� in Item 1 of Part I of this report. |
◦ | competitive conditions in the midstream industry, and actions taken by Enable’s customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable; |
◦ | the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly prices of natural gas and NGLs, the competitive effects of the available pipeline capacity in the regions served by Enable, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable’s interstate pipelines; |
◦ | the demand for crude oil, natural gas, NGLs and transportation and storage services; |
◦ | environmental and other governmental regulations, including the availability of drilling permits and the regulation of hydraulic fracturing; |
◦ | recording of goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; |
◦ | the timing of payments from Enable’s customers under existing contracts, including minimum volume commitment payments; |
◦ | changes in tax status; and |
◦ | access to debt and equity capital; |
• | the timing and extent of changes in commodity prices, particularly natural gas and coal, and the effects of geographic and seasonal commodity price differentials on CERC and Enable; |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions, except per share amounts) | |||||||||||
Revenues | $ | 12,301 | $ | 10,589 | $ | 9,614 | |||||
Expenses | 11,075 | 9,758 | 8,478 | ||||||||
Operating Income | 1,226 | 831 | 1,136 | ||||||||
Gain (Loss) on Marketable Securities | 282 | (22 | ) | 7 | |||||||
Gain (Loss) on Indexed Debt Securities | (292 | ) | (232 | ) | 49 | ||||||
Interest and Other Finance Charges | (528 | ) | (361 | ) | (313 | ) | |||||
Interest on Securitization Bonds | (39 | ) | (59 | ) | (77 | ) | |||||
Equity in Earnings of Unconsolidated Affiliates, net | 230 | 307 | 265 | ||||||||
Other Income (Expense), net | 50 | 50 | (4 | ) | |||||||
Income Before Income Taxes | 929 | 514 | 1,063 | ||||||||
Income Tax Expense (Benefit) | 138 | 146 | (729 | ) | |||||||
Net Income | 791 | 368 | 1,792 | ||||||||
Preferred Stock Dividend Requirement | 117 | 35 | — | ||||||||
Income Available to Common Shareholders | $ | 674 | $ | 333 | $ | 1,792 | |||||
Basic Earnings Per Common Share | $ | 1.34 | $ | 0.74 | $ | 4.16 | |||||
Diluted Earnings Per Common Share | $ | 1.33 | $ | 0.74 | $ | 4.13 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Revenues | $ | 2,990 | $ | 3,234 | $ | 2,998 | |||||
Expenses | 2,372 | 2,609 | 2,361 | ||||||||
Operating Income | 618 | 625 | 637 | ||||||||
Interest and other finance charges | (164 | ) | (138 | ) | (128 | ) | |||||
Interest on Securitization Bonds | (39 | ) | (59 | ) | (77 | ) | |||||
Other income (expense), net | 21 | (3 | ) | (8 | ) | ||||||
Income before income taxes | 436 | 425 | 424 | ||||||||
Income tax expense (benefit) | 80 | 89 | (9 | ) | |||||||
Net income | $ | 356 | $ | 336 | $ | 433 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Revenues | $ | 6,570 | $ | 7,343 | $ | 6,603 | |||||
Expenses | 6,220 | 7,121 | 6,136 | ||||||||
Operating Income | 350 | 222 | 467 | ||||||||
Interest and other finance charges | (116 | ) | (122 | ) | (123 | ) | |||||
Other expense, net | (8 | ) | (8 | ) | (25 | ) | |||||
Income from continuing operations before income taxes | 226 | 92 | 319 | ||||||||
Income tax expense (benefit) | 14 | 22 | (265 | ) | |||||||
Income from continuing operations | 212 | 70 | 584 | ||||||||
Income from discontinued operations, net of tax | — | 138 | 161 | ||||||||
Net Income | $ | 212 | $ | 208 | $ | 745 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions, except throughput and customer data) | |||||||||||
Revenues: | |||||||||||
TDU | $ | 2,506 | $ | 2,365 | $ | 2,280 | |||||
Bond Companies | 553 | 481 | 566 | ||||||||
Total Revenues | 3,059 | 2,846 | 2,846 | ||||||||
Expenses: | |||||||||||
Operation and maintenance, excluding Bond Companies | 1,355 | 1,300 | 1,251 | ||||||||
Depreciation and amortization, excluding Bond Companies | 384 | 340 | 327 | ||||||||
Taxes other than income taxes | 231 | 222 | 224 | ||||||||
Bond Companies | 462 | 376 | 448 | ||||||||
Total Expenses | 2,432 | 2,238 | 2,250 | ||||||||
Operating Income | 627 | 608 | 596 | ||||||||
Interest and other finance charges | (126 | ) | (118 | ) | (109 | ) | |||||
Interest on Securitization Bonds | (91 | ) | (105 | ) | (118 | ) | |||||
Other income, net | 15 | 21 | 14 | ||||||||
Income Before Income Taxes | 425 | 406 | 383 | ||||||||
Income Tax Expense | 149 | 145 | 131 | ||||||||
Net Income | $ | 276 | $ | 261 | $ | 252 | |||||
Throughput (in GWh): | |||||||||||
Residential | 29,586 | 28,995 | 27,498 | ||||||||
Total | 86,829 | 84,191 | 81,839 | ||||||||
Number of metered customers at end of period: | |||||||||||
Residential | 2,129,773 | 2,079,899 | 2,033,027 | ||||||||
Total | 2,403,340 | 2,348,517 | 2,299,247 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
CenterPoint Energy | |||||||||||
Houston Electric T&D (1) | $ | 624 | $ | 623 | $ | 636 | |||||
Indiana Electric Integrated | 90 | — | — | ||||||||
Natural Gas Distribution | 408 | 266 | 348 | ||||||||
Energy Services (2) | 32 | (47 | ) | 126 | |||||||
Infrastructure Services (3) | 95 | — | — | ||||||||
Corporate and Other | (23 | ) | (11 | ) | 26 | ||||||
Total CenterPoint Energy Consolidated Operating Income | $ | 1,226 | $ | 831 | $ | 1,136 | |||||
Houston Electric | |||||||||||
Houston Electric T&D (1) | $ | 618 | $ | 625 | $ | 637 | |||||
CERC | |||||||||||
Natural Gas Distribution | $ | 316 | $ | 266 | $ | 348 | |||||
Energy Services (2) | 32 | (47 | ) | 126 | |||||||
Other Operations | 2 | 3 | (7 | ) | |||||||
Total CERC Consolidated Operating Income | $ | 350 | $ | 222 | $ | 467 |
(1) | Operating income for CenterPoint Energy’s Houston Electric T&D reportable segment differs from operating income for Houston Electric due to weather hedge gains (losses) recorded at CenterPoint Energy that are not recorded at Houston Electric. Weather hedge gains (losses) of $6 million, $(2) million and $(1) million were recorded at CenterPoint Energy’s Houston Electric T&D reportable segment for the years ended December 31, 2019, 2018 and 2017, respectively. See Note 9(a) to the consolidated financial statements for more information on the weather hedge. |
(2) | On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell CES, which represents substantially all of the businesses within the Energy Services reportable segment. The transaction is expected to close in the second quarter of 2020. For further information, see Notes 6 and 23 to the consolidated financial statements. |
(3) | On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the businesses within its Infrastructure Services reportable segment. The transaction is expected to close in the second quarter of 2020. For further information, see Notes 6 and 23 to the consolidated financial statements. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Revenues: | (in millions, except throughput and customer data) | ||||||||||
TDU | $ | 2,684 | $ | 2,638 | $ | 2,588 | |||||
Bond Companies | 312 | 594 | 409 | ||||||||
Total revenues | 2,996 | 3,232 | 2,997 | ||||||||
Expenses: | |||||||||||
Operation and maintenance, excluding Bond Companies | 1,470 | 1,444 | 1,397 | ||||||||
Depreciation and amortization, excluding Bond Companies | 377 | 386 | 395 | ||||||||
Taxes other than income taxes | 247 | 240 | 235 | ||||||||
Bond Companies | 278 | 539 | 334 | ||||||||
Total expenses | 2,372 | 2,609 | 2,361 | ||||||||
Operating Income (1) | $ | 624 | $ | 623 | $ | 636 | |||||
Operating Income: | |||||||||||
TDU | $ | 590 | $ | 568 | $ | 561 | |||||
Bond Companies (2) | 34 | 55 | 75 | ||||||||
Total segment operating income | $ | 624 | $ | 623 | $ | 636 | |||||
Throughput (in GWh): | |||||||||||
Residential | 30,334 | 30,405 | 29,703 | ||||||||
Total | 92,180 | 90,409 | 88,636 | ||||||||
Number of metered customers at end of period: | |||||||||||
Residential | 2,243,188 | 2,198,225 | 2,164,073 | ||||||||
Total | 2,534,286 | 2,485,370 | 2,444,299 |
(1) | Operating income for CenterPoint Energy’s Houston Electric T&D reportable segment differs from operating income for Houston Electric due to weather hedge gains (losses) recorded at CenterPoint Energy that are not recorded at Houston Electric. Weather hedge gains (losses) of $6 million, $(2) million and $(1) million were recorded at CenterPoint Energy’s Houston Electric T&D reportable segment for the years ended December 31, 2019, 2018 and 2017, respectively. See Note 9(a) to the consolidated financial statements for more information on the weather hedge. |
(2) | Operating income from the Bond Companies, together with $5 million, $4 million and $2 million of interest income for the years ended December 31, 2019, 2018 and 2017, respectively, are necessary to pay interest on the Securitization Bonds. |
◦ | contract services of $24 million, largely due to increased resiliency spend and services related to fiber and wireless; |
◦ | support services of $23 million, primarily related to technology projects; |
◦ | labor and benefits costs of $14 million; |
◦ | other miscellaneous operation and maintenance expenses of $12 million; and |
◦ | damage claims from third parties of $6 million; |
Year Ended December 31, 2019 (1) | ||||
(in millions, except throughput and customer data) | ||||
Revenues | $ | 523 | ||
Expenses: | ||||
Utility natural gas, fuel and purchased power | 149 | |||
Operation and maintenance | 179 | |||
Depreciation and amortization | 91 | |||
Taxes other than income taxes | 14 | |||
Total expenses | 433 | |||
Operating Income | $ | 90 | ||
Throughput (in GWh): | ||||
Retail | 4,310 | |||
Wholesale | 376 | |||
Total | 4,686 | |||
Number of metered customers at end of period: | ||||
Residential | 128,947 | |||
Total | 147,942 |
(1) | Represents February 1, 2019 through December 31, 2019 results only due to the Merger. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions, except throughput and customer data) | |||||||||||
Revenues | $ | 3,683 | $ | 2,967 | $ | 2,639 | |||||
Expenses: | |||||||||||
Utility natural gas, fuel and purchased power | 1,617 | 1,467 | 1,164 | ||||||||
Operation and maintenance | 1,036 | 803 | 722 | ||||||||
Depreciation and amortization | 417 | 277 | 260 | ||||||||
Taxes other than income taxes | 205 | 154 | 145 | ||||||||
Total expenses | 3,275 | 2,701 | 2,291 | ||||||||
Operating Income | $ | 408 | $ | 266 | $ | 348 | |||||
Throughput (in Bcf): | |||||||||||
Residential | 246 | 186 | 151 | ||||||||
Commercial and industrial | 458 | 285 | 261 | ||||||||
Total Throughput | 704 | 471 | 412 | ||||||||
Number of customers at end of period: | |||||||||||
Residential | 4,252,361 | 3,246,277 | 3,213,140 | ||||||||
Commercial and industrial | 349,749 | 260,033 | 256,651 | ||||||||
Total | 4,602,110 | 3,506,310 | 3,469,791 |
◦ | materials and supplies, contracts and services and bad debt expenses of $15 million; |
◦ | support services expenses of $16 million, primarily related to technology projects; |
◦ | and other miscellaneous operation and maintenance expenses of $10 million; |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions, except throughput and customer data) | |||||||||||
Revenues | $ | 2,951 | $ | 2,967 | $ | 2,639 | |||||
Expenses: | |||||||||||
Natural gas | 1,395 | 1,467 | 1,164 | ||||||||
Operation and maintenance | 790 | 803 | 722 | ||||||||
Depreciation and amortization | 289 | 277 | 260 | ||||||||
Taxes other than income taxes | 161 | 154 | 145 | ||||||||
Total expenses | 2,635 | 2,701 | 2,291 | ||||||||
Operating Income | $ | 316 | $ | 266 | $ | 348 | |||||
Throughput (in Bcf): | |||||||||||
Residential | 188 | 186 | 151 | ||||||||
Commercial and industrial | 292 | 285 | 261 | ||||||||
Total Throughput | 480 | 471 | 412 | ||||||||
Number of customers at end of period: | |||||||||||
Residential | 3,287,343 | 3,246,277 | 3,213,140 | ||||||||
Commercial and industrial | 260,872 | 260,033 | 256,651 | ||||||||
Total | 3,548,215 | 3,506,310 | 3,469,791 |
◦ | materials and supplies, contracts and services and bad debt expenses of $15 million; |
◦ | support services expenses of $16 million, primarily related to technology projects; |
◦ | and other miscellaneous operation and maintenance expenses of $10 million; |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions, except throughput and customer data) | |||||||||||
Revenues | $ | 3,782 | $ | 4,521 | $ | 4,049 | |||||
Expenses: | |||||||||||
Natural gas | 3,588 | 4,453 | 3,816 | ||||||||
Operation and maintenance | 96 | 96 | 86 | ||||||||
Depreciation and amortization | 16 | 16 | 19 | ||||||||
Taxes other than income taxes | 2 | 3 | 2 | ||||||||
Goodwill impairment | 48 | — | — | ||||||||
Total expenses | 3,750 | 4,568 | 3,923 | ||||||||
Operating Income (Loss) | $ | 32 | $ | (47 | ) | $ | 126 | ||||
Timing impacts related to mark-to-market gain (loss) (1) | $ | 39 | $ | (110 | ) | $ | 79 | ||||
Throughput (in Bcf) | 1,305 | 1,355 | 1,200 | ||||||||
Number of customers at end of period (2) | 31,000 | 30,000 | 31,000 |
(1) | Includes the change in unrealized mark-to-market value and the impact from derivative assets and liabilities acquired through the purchase of Continuum and AEM. |
(2) | These numbers do not include approximately 66,000, 65,000 and 72,000 natural gas customers as of December 31, 2019, 2018 and 2017, respectively, that are under residential and small commercial choice programs invoiced by their host utility. |
Year Ended December 31, 2019 (1) | ||||
(in millions, except throughput and customer data) | ||||
Revenues | $ | 1,190 | ||
Expenses: | ||||
Non-utility cost of revenues, including natural gas | 309 | |||
Operation and maintenance | 734 | |||
Depreciation and amortization | 50 | |||
Taxes other than income taxes | 2 | |||
Total expenses | 1,095 | |||
Operating Income | $ | 95 | ||
Backlog at period end (2): | ||||
Blanket contracts (3) | $ | 628 | ||
Bid contracts (4) | 254 | |||
Total | $ | 882 |
(1) | Represents February 1, 2019 through December 31, 2019 results only due to the Merger. |
(2) | Backlog represents the amount of revenue Infrastructure Services expects to realize from work to be performed on uncompleted contracts in the next twelve months, including new contractual agreements on which work has not begun. Infrastructure Services operates primarily under two types of contracts, blanket contracts and bid contracts. |
(3) | Under blanket contracts, customers are not contractually committed to specific volumes of services; however, Infrastructure Services expects to be chosen to perform work needed by a customer in a given time frame. These contracts are typically awarded on an annual or multi-year basis. For blanket work, backlog represents an estimate of the amount of revenue that Infrastructure Services expects to realize from work to be performed in the next twelve months on existing contracts or contracts management expects to be renewed or awarded. |
(4) | Using bid contracts, customers are contractually committed to a specific service to be performed for a specific price, whether in total for a project or on a per unit basis. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Equity earnings from Enable, net (1) | $ | 229 | $ | 307 | $ | 265 |
(1) | Equity earnings from Enable, net for the year ended December 31, 2019 were reduced by CenterPoint Energy’s share, $46 million, of Enable’s goodwill impairment charge of $86 million recorded in the fourth quarter of 2019. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Revenues | $ | 300 | $ | 15 | $ | 14 | |||||
Expenses: | |||||||||||
Non-utility cost of revenues, including natural gas | 218 | — | — | ||||||||
Operation and maintenance | 32 | (16 | ) | (54 | ) | ||||||
Depreciation and amortization | 66 | 33 | 33 | ||||||||
Taxes other than income taxes | 7 | 9 | 9 | ||||||||
Total expenses | 323 | 26 | (12 | ) | |||||||
Operating Income (Loss) | $ | (23 | ) | $ | (11 | ) | $ | 26 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Revenues | $ | 5 | $ | 1 | $ | — | |||||
Expenses | 3 | (2 | ) | 7 | |||||||
Operating Income (Loss) | $ | 2 | $ | 3 | $ | (7 | ) |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Cash provided by (used in): | |||||||||||||||||||||||||||||||||||
Operating activities | $ | 1,638 | $ | 918 | $ | 466 | $ | 2,136 | $ | 1,115 | $ | 814 | $ | 1,417 | $ | 905 | $ | 278 | |||||||||||||||||
Investing activities | (8,421 | ) | (1,495 | ) | (662 | ) | (1,207 | ) | (911 | ) | (697 | ) | (1,257 | ) | (776 | ) | (346 | ) | |||||||||||||||||
Financing activities | 2,776 | 442 | 173 | 3,053 | (108 | ) | (104 | ) | (245 | ) | (236 | ) | 79 |
Year Ended December 31, | |||||||||||||||||||||||
2019 compared to 2018 | 2018 compared to 2017 | ||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Changes in net income after adjusting for non-cash items | $ | 299 | $ | (234 | ) | $ | 180 | $ | (63 | ) | $ | 154 | $ | (243 | ) | ||||||||
Changes in working capital | (856 | ) | 60 | (307 | ) | 604 | 57 | 595 | |||||||||||||||
Change in equity in earnings of unconsolidated affiliates | 77 | — | — | (42 | ) | — | — | ||||||||||||||||
Change in distributions from unconsolidated affiliates (1) | (6 | ) | — | — | 267 | — | — | ||||||||||||||||
Changes related to discontinued operations (2) | — | — | (176 | ) | — | — | 176 | ||||||||||||||||
Higher pension contribution | (40 | ) | — | — | (21 | ) | — | — | |||||||||||||||
Other | 28 | (23 | ) | (45 | ) | (26 | ) | (1 | ) | 8 | |||||||||||||
$ | (498 | ) | $ | (197 | ) | $ | (348 | ) | $ | 719 | $ | 210 | $ | 536 |
(1) | This change is partially offset by the change in distributions from Enable in excess of cumulative earnings in investing activities noted in the table below. |
(2) | See Notes 2(c) and 11 to the consolidated financial statements for a discussion of CERC’s discontinued operations. |
Year Ended December 31, | |||||||||||||||||||||||
2019 compared to 2018 | 2018 compared to 2017 | ||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Proceeds from the sale of marketable securities | $ | (398 | ) | $ | — | $ | — | $ | 398 | $ | — | $ | — | ||||||||||
Proceeds from the sale of assets | 5 | — | — | — | — | — | |||||||||||||||||
Purchase of investments | (6 | ) | — | — | — | — | — | ||||||||||||||||
Acquisitions, net of cash acquired | (5,991 | ) | — | — | 132 | — | 132 | ||||||||||||||||
Net change in capital expenditures (1) | (855 | ) | (103 | ) | (143 | ) | (225 | ) | (47 | ) | (120 | ) | |||||||||||
Net change in notes receivable from unconsolidated affiliates | — | (481 | ) | 228 | — | (96 | ) | (114 | ) | ||||||||||||||
Change in distributions from Enable in excess of cumulative earnings | 12 | — | — | (267 | ) | — | — | ||||||||||||||||
Changes related to discontinued operations (2) | — | — | (47 | ) | — | — | (250 | ) | |||||||||||||||
Other | 19 | — | (3 | ) | 12 | 8 | 1 | ||||||||||||||||
$ | (7,214 | ) | $ | (584 | ) | $ | 35 | $ | 50 | $ | (135 | ) | $ | (351 | ) |
(1) | The increase in capital expenditures in 2019 primarily resulted from businesses acquired in the Merger. |
(2) | See Notes 2(c) and 11 to the consolidated financial statements for a discussion of CERC’s discontinued operations. |
Year Ended December 31, | |||||||||||||||||||||||
2019 compared to 2018 | 2018 compared to 2017 | ||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net changes in commercial paper outstanding | $ | 3,434 | $ | — | $ | 855 | $ | (1,892 | ) | $ | — | $ | (1,017 | ) | |||||||||
Proceeds from issuances of preferred stock | (1,740 | ) | — | — | 1,740 | — | — | ||||||||||||||||
Proceeds from issuance of Common Stock | (1,844 | ) | — | — | 1,844 | — | — | ||||||||||||||||
Net changes in long-term debt outstanding, excluding commercial paper | (397 | ) | 274 | (599 | ) | 2,126 | 77 | 851 | |||||||||||||||
Net changes in reacquired debt | — | — | — | 5 | — | 5 | |||||||||||||||||
Net changes in debt issuance costs | 27 | (4 | ) | 5 | (34 | ) | (1 | ) | (1 | ) | |||||||||||||
Net changes in short-term borrowings | 39 | — | 39 | (43 | ) | — | (43 | ) | |||||||||||||||
Distributions to ZENS note holders | 398 | — | — | (398 | ) | — | — | ||||||||||||||||
Increased payment of Common Stock dividends | (78 | ) | — | — | (38 | ) | — | — | |||||||||||||||
Increased payment of preferred stock dividends | (107 | ) | — | — | (11 | ) | — | — | |||||||||||||||
Net change in notes payable from affiliated companies | — | 58 | 570 | — | (119 | ) | (1,140 | ) | |||||||||||||||
Contribution from parent | — | 390 | (831 | ) | — | 200 | 922 | ||||||||||||||||
Dividend to parent | — | (167 | ) | 240 | — | (29 | ) | 241 | |||||||||||||||
Other | (9 | ) | (1 | ) | (2 | ) | (1 | ) | — | (1 | ) | ||||||||||||
$ | (277 | ) | $ | 550 | $ | 277 | $ | 3,298 | $ | 128 | $ | (183 | ) |
(in millions) | |||
2016 | $ | 858 | |
2017 | 922 | ||
2018 | 856 | ||
2019 | 786 | ||
2020 | 773 | ||
2021 | 776 |
CenterPoint Energy | Houston Electric | CERC | ||||||||||
(in millions) | ||||||||||||
Estimated capital expenditures | $ | 2,630 | $ | 1,031 | $ | 702 | ||||||
Scheduled principal payments on Securitization Bonds | 231 | 231 | — | |||||||||
Minimum contributions to pension plans and other post-retirement plans | 100 | 9 | 3 | |||||||||
Maturing Vectren term loans | 600 | — | — |
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||||||||||
CenterPoint Energy | (in millions) | ||||||||||||||||||||||
Houston Electric T&D | $ | 1,033 | $ | 1,031 | $ | 1,082 | $ | 934 | $ | 934 | $ | 876 | |||||||||||
Indiana Electric Integrated (1) | 183 | 276 | 268 | 267 | 396 | 392 | |||||||||||||||||
Natural Gas Distribution (1) | 1,098 | 1,124 | 1,037 | 1,261 | 1,373 | 1,331 | |||||||||||||||||
Energy Services (3) | 12 | 4 | — | — | — | — | |||||||||||||||||
Infrastructure Services (1) (4) | 67 | 28 | — | — | — | — | |||||||||||||||||
Corporate and Other (1) | 194 | 167 | 136 | 123 | 92 | 92 | |||||||||||||||||
Total | $ | 2,587 | $ | 2,630 | $ | 2,523 | $ | 2,585 | $ | 2,795 | $ | 2,691 | |||||||||||
Houston Electric (2) | $ | 1,033 | $ | 1,031 | $ | 1,082 | $ | 934 | $ | 934 | $ | 876 | |||||||||||
CERC | |||||||||||||||||||||||
Natural Gas Distribution | $ | 773 | $ | 698 | $ | 648 | $ | 850 | $ | 917 | $ | 891 | |||||||||||
Energy Services (3) | 12 | 4 | — | — | — | — | |||||||||||||||||
Total | $ | 785 | $ | 702 | $ | 648 | $ | 850 | $ | 917 | $ | 891 |
(1) | Included in the 2019 column are capital expenditures from businesses acquired in the Merger, for the period February 1, 2019 to December 31, 2019. |
(2) | Houston Electric consists of a single reportable segment, Houston Electric T&D. |
(3) | On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell CES, which represents substantially all of the businesses within the Energy Services reportable segment. The transaction is expected to close in the second quarter of 2020. For further information, see Notes 6 and 23 to the consolidated financial statements. |
(4) | On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the businesses within its Infrastructure Services reportable segment. The transaction is expected to close in the second quarter of 2020. For further information, see Notes 6 and 23 to the consolidated financial statements. |
Contractual Obligations | Total | 2017 | 2018-2019 | 2020-2021 | 2022 and thereafter | |||||||||||||||
(in millions) | ||||||||||||||||||||
Securitization bond debt (1) | $ | 2,278 | $ | 411 | $ | 892 | $ | 442 | $ | 533 | ||||||||||
Other long-term debt | 2,587 | — | — | 402 | 2,185 | |||||||||||||||
Interest payments - securitization bond debt (1) (2) | 272 | 81 | 111 | 53 | 27 | |||||||||||||||
Interest payments - other long-term debt (2) | 1,820 | 107 | 213 | 205 | 1,295 | |||||||||||||||
Operating leases | 1 | — | — | 1 | — | |||||||||||||||
Benefit obligations (3) | — | — | — | — | — | |||||||||||||||
Total contractual cash obligations (4) | $ | 6,958 | $ | 599 | $ | 1,216 | $ | 1,103 | $ | 4,040 |
Contractual Obligations | Total | 2020 | 2021-2022 | 2023-2024 | 2025 and thereafter | |||||||||||||||
(in millions) | ||||||||||||||||||||
CenterPoint Energy | ||||||||||||||||||||
Securitization Bonds | $ | 977 | $ | 231 | $ | 430 | $ | 316 | $ | — | ||||||||||
Other long-term debt (1) | 14,191 | 600 | 5,633 | 1,579 | 6,379 | |||||||||||||||
Interest payments — Securitization Bonds (2) | 79 | 30 | 37 | 12 | — | |||||||||||||||
Interest payments — other long-term debt (2) | 6,195 | 529 | 871 | 701 | 4,094 | |||||||||||||||
Operating leases (3) | 69 | 22 | 25 | 10 | 12 | |||||||||||||||
Benefit obligations (4) | — | — | — | — | — | |||||||||||||||
Non-trading derivative liabilities | 80 | 51 | 26 | 3 | — | |||||||||||||||
Commodity and other commitments (5) | 4,279 | 750 | 1,035 | 606 | 1,888 | |||||||||||||||
Total contractual cash obligations (6) | $ | 25,870 | $ | 2,213 | $ | 8,057 | $ | 3,227 | $ | 12,373 | ||||||||||
Houston Electric | ||||||||||||||||||||
Securitization Bonds | $ | 977 | $ | 231 | $ | 430 | $ | 316 | $ | — | ||||||||||
Other long-term debt (1) | 3,973 | — | 702 | 200 | 3,071 | |||||||||||||||
Interest payments — Securitization Bonds (2) | 79 | 30 | 37 | 12 | — | |||||||||||||||
Interest payments — other long-term debt (2) | 2,896 | 161 | 300 | 267 | 2,168 | |||||||||||||||
Operating leases (3) | 1 | 1 | — | — | — | |||||||||||||||
Benefit obligations (4) | — | — | — | — | — | |||||||||||||||
Total contractual cash obligations (6) | $ | 7,926 | $ | 423 | $ | 1,469 | $ | 795 | $ | 5,239 | ||||||||||
CERC | ||||||||||||||||||||
Long-term debt | $ | 2,546 | $ | — | $ | 969 | $ | 300 | $ | 1,277 | ||||||||||
Interest payments — long-term debt (1) | 1,379 | 112 | 179 | 141 | 947 | |||||||||||||||
Operating leases (3) | 28 | 6 | 8 | 5 | 9 | |||||||||||||||
Benefit obligations (4) | — | — | — | — | — | |||||||||||||||
Non-trading derivative liabilities | 58 | 44 | 14 | — | — | |||||||||||||||
Commodity and other commitments (5) | 3,089 | 533 | 674 | 356 | 1,526 | |||||||||||||||
Total contractual cash obligations (6) | $ | 7,100 | $ | 695 | $ | 1,844 | $ | 802 | $ | 3,759 |
(1) | ZENS obligations are included in the 2025 and |
(2) | The Registrants calculated estimated interest payments for long-term debt as follows: for fixed-rate debt and term debt, the Registrants calculated interest based on the applicable rates and payment |
(3) |
(4) | See Note 8(g) to the consolidated financial statements for information on the Registrants’ expected contributions to pension plans and other postretirement plans in 2020. |
(5) | For a discussion of commodity and other commitments, please read Note 16(a) to the consolidated financial statements. |
(6) | This table does not include estimated future payments for expected future AROs. These payments are primarily estimated to be incurred after |
Mechanism | Annual Increase | Filing Date | Effective Date | Approval Date | Additional Information | |||||
(in millions) | ||||||||||
DCRF (1) | $45.0 | April 2016 | September 2016 | July 2016 | Based on an increase in eligible distribution-invested capital from January 1, 2010 through December 31, 2015 of $689 million. Unless otherwise changed in a subsequent DCRF filing, an annualized DCRF charge of $49 million will be effective September 2017. | |||||
TCOS | 3.5 | July 2016 | September 2016 | September 2016 | Based on an incremental increase in total rate base of $95.6 million. | |||||
EECRF (2) | 10.6 | June 2016 | March 2017 | October 2016 | Recovers $45.5 million, including an incentive of $10.6 million based on 2015 program performance. | |||||
TCOS | 7.8 | December 2016 | (3) | (3) | Based on an incremental increase in total rate base of $109.6 million. Approval is expected in Q1 2017. |
Mechanism | Annual Increase (Decrease) (1) (in millions) | Filing Date | Effective Date | Approval Date | Additional Information | |||||
CenterPoint Energy and Houston Electric (PUCT) | ||||||||||
Rate Case (1) | $155 | April 2019 | TBD | TBD | See discussion above under Houston Electric Base Rate Case. | |||||
EECRF | 7 | May 2019 | March 2020 | October 2019 | The PUCT issued a final order in October 2019 approving recovery of 2020 EECRF of $35 million, including a $7 million performance bonus. | |||||
CenterPoint Energy and CERC - Beaumont/East Texas, South Texas, Houston and Texas Coast (Railroad Commission) | ||||||||||
GRIP | 20 | March 2019 | July 2019 | June 2019 | Based on net change in invested capital of $123 million. | |||||
Rate Case (1) | 7 | November 2019 | TBD | TBD | Reflects a proposed 10.40% ROE on a 58% equity ratio. Additionally, the proposal includes a refund for an Unprotected EDIT Rider amortized over 3 years of which $2.2 million is refunded in Year 1 and a request of $0.2 million for a Hurricane Surcharge, resulting from Hurricane Harvey, over 1 year. | |||||
CenterPoint Energy and CERC - Houston and Texas Coast (Railroad Commission) | ||||||||||
Administrative 104.111 | N/A | August 2019 | January 2020 | October 2019 | On August 1, 2019, and subsequent supplemental filings in August and October 2019, Houston and Texas Coast proposed a rider to refund over three years to its Houston and Texas Coast customers combined, approximately $18 million of unprotected EDIT related to the TCJA. | |||||
CenterPoint Energy and CERC - South Texas (Railroad Commission) | ||||||||||
Administrative 104.111 | N/A | November 2019 | March 2020 | January 2020 | On November 14, 2019, South Texas proposed to refund protected EDIT, amortized over ARAM. The estimated refund for the first year is $0.6 million. | |||||
CenterPoint Energy and CERC - Arkansas (APSC) | ||||||||||
FRP | 7 | April 2019 | October 2019 | August 2019 | Based on ROE of 9.5% approved in the last rate case. On August 23, 2019, the APSC approved a unanimous comprehensive settlement that results in an FRP revenue increase of $7 million and includes additional non-monetary items. | |||||
CenterPoint Energy and CERC - Louisiana (LPSC) | ||||||||||
RSP | 3 | September 2019 | December 2019 | December 2019 | Based on ROE of 9.95%. | |||||
CenterPoint Energy and CERC - Minnesota (MPUC) | ||||||||||
CIP Financial Incentive | 11 | May 2019 | October 2019 | September 2019 | CIP Financial Incentive based on 2018 activity. | |||||
Decoupling | N/A | September 2019 | September 2019 | January 2020 | Represents over-recovery of $21 million recorded for and during the period July 1, 2018 through June 30, 2019, partially offset by over-refund of $2 million related to the period July 1, 2017 through June 30, 2018. | |||||
Rate Case (1) | 62 | October 2019 | TBD | TBD | Reflects a proposed 10.15% ROE on a 51.39% equity ratio. Interim rates were approved and reflect an annual increase of $53 million, effective January 1, 2020. | |||||
CenterPoint Energy and CERC - Mississippi (MPSC) | ||||||||||
RRA | 2 | May 2019 | November 2019 | November 2019 | Based on ROE of 9.26%. |
Mechanism | Annual Increase (Decrease) (1) (in millions) | Filing Date | Effective Date | Approval Date | Additional Information | |||||
CenterPoint Energy and CERC - Oklahoma (OCC) | ||||||||||
PBRC | 2 | March 2019 | September 2019 | August 2019 | Based on ROE of 10%. On July 26, 2019, the ALJ recommended that the OCC approve an increase of $2 million. On August 29, 2019, the OCC approved the ALJ-recommended revenue increase of $2 million. | |||||
CenterPoint Energy - Indiana South - Gas (IURC) | ||||||||||
CSIA | 3 | October 2018 | January 2019 | January 2019 | Requested an increase of $16 million to rate base, which reflects a $3 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until next rate case. The mechanism also includes refunds associated with the TCJA, resulting in a change of $(1) million, and a change in the total (over)/under-recovery variance of $(3) million annually. | |||||
CSIA | 5 | April 2019 | July 2019 | July 2019 | Requested an increase of $22 million to rate base, which reflects a $5 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until the next rate case. The mechanism also includes refunds associated with the TCJA, resulting in no change to the previous credit provided, and a change in the total (over)/under-recovery variance of $3 million annually. | |||||
CSIA | 3 | October 2019 | January 2020 | January 2020 | Requested an increase of $18 million to rate base, which reflects a $3 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until the next rate case. The mechanism also includes refunds associated with the TCJA, resulting in no change to the previous credit provided, and a change in the total (over)/under-recovery variance of $(0.2) million annually. | |||||
CenterPoint Energy - Indiana North - Gas (IURC) | ||||||||||
CSIA | 3 | October 2018 | January 2019 | January 2019 | Requested an increase of $54 million to rate base, which reflects a $3 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until next rate case. The mechanism also includes refunds associated with the TCJA, resulting in a change of $(11) million, and a change in the total (over)/under-recovery variance of $(19) million annually. | |||||
CSIA | 12 | April 2019 | July 2019 | July 2019 | Requested an increase of $58 million to rate base, which reflects a $12 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until next rate case. The mechanism also includes refunds associated with the TCJA, resulting in no change to the previous credit provided, and a change in the total (over)/under-recovery variance of $14 million annually. | |||||
CSIA | 4 | October 2019 | January 2020 | January 2020 | Requested an increase of $29 million to rate base, which reflects a $4 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until next rate case. The mechanism also includes refunds associated with the TCJA, resulting in no change to the previous credit provided, and a change in the total (over)/under-recovery variance of $(7) million annually. | |||||
CenterPoint Energy - Ohio (PUCO) | ||||||||||
DRR | 11 | May 2019 | September 2019 | August 2019 | Requested an increase of $78 million to rate base for investments made in 2018, which reflects a $11 million annual increase in current revenues. A change in (over)/under-recovery variance of $(3) million annually is also included in rates. All pre-2018 investments are included in rate case request. | |||||
Rate Case | 23 | March 2018 | September 2019 | August 2019 | Settlement agreement approved by PUCO Order that provides for a $23 million annual increase in current revenues. Order based upon $622 million of total rate base, a 7.48% overall rate of return, and extension of conservation and DRR programs. | |||||
TSCR (1) | N/A | January 2019 | TBD | TBD | Application to flow back to customers certain benefits from the TCJA. Initial impact reflects credits for 2018 of $(10) million and 2019 of $(8) million, with mechanism to begin subsequent to new base rates. Order is expected in early 2020. |
Mechanism | Annual Increase (Decrease) (1) (in millions) | Filing Date | Effective Date | Approval Date | Additional Information | |||||
CenterPoint Energy - Indiana Electric (IURC) | ||||||||||
TDSIC | 3 | February 2019 | May 2019 | May 2019 | Requested an increase of $24 million to rate base, which reflects a $3 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until next rate case. The mechanism also includes refunds associated with the TCJA, resulting in a change of $5 million, and a change in the total (over)/under-recovery variance of $5 million annually. | |||||
TDSIC | 4 | August 2019 | November 2019 | November 2019 | Requested an increase of $35 million to rate base, which reflects a $4 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until next rate case. The mechanism also includes a change in (over)/under-recovery variance of $4 million annually. | |||||
TDSIC (1) | 4 | February 2020 | May 2020 | TBD | Requested an increase of $34 million to rate base, which reflects a $4 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until next rate case. The mechanism also includes a change in (over)/under-recovery variance of $2 million annually. | |||||
ECA - MATS | 13 | February 2018 | January 2019 | April 2019 | Requested an increase of $58 million to rate base, which reflects a $13 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until next rate case. The mechanism includes recovery of prior accounting deferrals associated with investments (depreciation, carrying costs, operating expenses). | |||||
CECA | 2 | February 2019 | June 2019 | May 2019 | Requested an increase of $13 million to rate base related to solar pilot investments, which reflects a $2 million annual increase in current revenues. | |||||
CECA (1) | 0.1 | February 2020 | June 2020 | TBD | Requested an increase of $0.1 million to rate base related to solar pilot investments, which reflects an immaterial change to current revenues. The mechanism also includes a change in (over)/under-recovery variance of $0.1 million annually. Additional solar investment to supply 50 MW of solar capacity is approved and will be included for recovery once completed in 2021. |
(1) | Represents |
Execution Date | Size of Facility | Amount Utilized as of February 10, 2017 (1) | Termination Date | |||||||
March 3, 2016 | $ | 300 | $ | 4 | March 3, 2021 |
Amount Utilized as of February 19, 2020 | ||||||||||||||||||||
Registrant | Size of Facility | Loans | Letters of Credit | Commercial Paper | Weighted Average Interest Rate | Termination Date | ||||||||||||||
(in millions) | ||||||||||||||||||||
CenterPoint Energy | $ | 3,300 | $ | — | $ | 6 | $ | 1,824 | 1.79% | March 3, 2022 | ||||||||||
CenterPoint Energy (1) | 400 | — | — | 207 | 1.86% | July 14, 2022 | ||||||||||||||
CenterPoint Energy (2) | 200 | — | — | — | — | July 14, 2022 | ||||||||||||||
Houston Electric | 300 | — | — | — | — | March 3, 2022 | ||||||||||||||
CERC | 900 | — | 1 | 205 | 1.73% | March 3, 2022 | ||||||||||||||
Total | $ | 5,100 | $ | — | $ | 7 | $ | 2,236 |
(1) |
(2) | The credit facility was issued by VCC and is guaranteed by Vectren. |
Company | Aggregate Principal Amount Outstanding | |||
(in millions) | ||||
Bond Company II | $ | 583 | ||
Bond Company III | 187 | |||
Bond Company IV | 1,148 | |||
Restoration Bond Company | 365 | |||
Total | $ | 2,283 |
Weighted Average Interest Rate | Houston Electric | CERC | |||||||
(in millions) | |||||||||
Money pool investments | 1.81% | $ | 282 | $ | — |
Moody’s | S&P | Fitch | ||||||||||||
Registrant | Borrower/Instrument | Rating | Outlook (1) | Rating | Outlook (2) | Rating | Outlook (3) | |||||||
CenterPoint Energy | CenterPoint Energy Senior Unsecured Debt | Baa2 | Stable | BBB | Stable | BBB | Negative | |||||||
CenterPoint Energy | Vectren Corp. Issuer Rating | n/a | n/a | BBB+ | Stable | n/a | n/a | |||||||
CenterPoint Energy | VUHI Senior Unsecured Debt | A3 | Stable | BBB+ | Stable | n/a | n/a | |||||||
CenterPoint Energy | Indiana Gas Senior Unsecured Debt | n/a | n/a | BBB+ | Stable | n/a | n/a | |||||||
CenterPoint Energy | SIGECO Senior Secured Debt | A1 | Stable | A | n/a | n/a | ||||||||
Houston Electric | Houston Electric Senior Secured Debt | A1 | Under Review | A | Stable | A | Negative | |||||||
CERC | CERC Corp. Senior Unsecured Debt | Baa1 | Positive | BBB+ | Stable | BBB+ | Stable |
(1) | A Moody’s rating outlook is an opinion regarding the likely direction of an issuer’s rating over the medium term. |
(2) | An S&P |
(3) | A Fitch rating outlook indicates the direction a rating is likely to move over a one- to two-year period. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
CenterPoint Energy | (in millions) | ||||||||||
Minimum funding requirements for qualified pension plans | $ | 86 | $ | 60 | $ | 39 | |||||
Employer contributions to the qualified pension plans | 86 | 60 | 39 | ||||||||
Employer contributions to the non-qualified benefit restoration plans | 23 | 9 | 9 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Pension cost | $ | 93 | $ | 40 | $ | 35 | $ | 61 | $ | 25 | $ | 22 | $ | 95 | $ | 42 | $ | 35 | |||||||||||||||||
Impact to pre-tax earnings | 72 | 23 | 31 | 64 | 27 | 23 | 71 | 23 | 29 |
◦ | Historical revenues and operating margins. |
◦ | Internal communications to management and the Board of Directors. |
◦ | Forecasted information included in Company press releases as well as in analyst and industry reports for the Company and certain of its peer companies. |
◦ | Assessing the appropriateness of the valuation methodology used to determine the customer relationship intangible assets and the company specific risk premiums. |
◦ | Testing the determined discount rates by independently estimating a discount rate for each business using a process consistent with generally accepted valuation practices. |
◦ | Historical revenues, operating margins, capital expenditures, rate base growth, and rate changes. |
◦ | Internal communications to management and the Board of Directors. |
◦ | Forecasted information included in Company press releases as well as in analyst and industry reports for the Company and certain of its peer companies. |
◦ | Assessing the appropriateness of the valuation methodology used to determine the company specific risk premiums in calculating the discount rate. |
◦ | Testing the determined discount rates by independently estimating a discount rate for each business using a process consistent with generally accepted valuation practices. |
◦ | Evaluating the reasonableness of the long-term growth rate through a comparison to industry reports and peer companies. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions, except per share amounts) | |||||||||||
Revenues: | |||||||||||
Utility revenues | $ | 7,162 | $ | 6,163 | $ | 5,603 | |||||
Non-utility revenues | 5,139 | 4,426 | 4,011 | ||||||||
Total | 12,301 | 10,589 | 9,614 | ||||||||
Expenses: | |||||||||||
Utility natural gas, fuel and purchased power | 1,683 | 1,410 | 1,109 | ||||||||
Non-utility cost of revenues, including natural gas | 4,029 | 4,364 | 3,785 | ||||||||
Operation and maintenance | 3,550 | 2,335 | 2,157 | ||||||||
Depreciation and amortization | 1,287 | 1,243 | 1,036 | ||||||||
Taxes other than income taxes | 478 | 406 | 391 | ||||||||
Goodwill impairment | 48 | — | — | ||||||||
Total | 11,075 | 9,758 | 8,478 | ||||||||
Operating Income | 1,226 | 831 | 1,136 | ||||||||
Other Income (Expense): | |||||||||||
Gain (loss) on marketable securities | 282 | (22 | ) | 7 | |||||||
Gain (loss) on indexed debt securities | (292 | ) | (232 | ) | 49 | ||||||
Interest and other finance charges | (528 | ) | (361 | ) | (313 | ) | |||||
Interest on Securitization Bonds | (39 | ) | (59 | ) | (77 | ) | |||||
Equity in earnings of unconsolidated affiliates, net | 230 | 307 | 265 | ||||||||
Other, net | 50 | 50 | (4 | ) | |||||||
Total | (297 | ) | (317 | ) | (73 | ) | |||||
Income Before Income Taxes | 929 | 514 | 1,063 | ||||||||
Income tax expense (benefit) | 138 | 146 | (729 | ) | |||||||
Net Income | 791 | 368 | 1,792 | ||||||||
Preferred stock dividend requirement | 117 | 35 | — | ||||||||
Income Available to Common Shareholders | $ | 674 | $ | 333 | $ | 1,792 | |||||
Basic Earnings Per Common Share | $ | 1.34 | $ | 0.74 | $ | 4.16 | |||||
Diluted Earnings Per Common Share | $ | 1.33 | $ | 0.74 | $ | 4.13 | |||||
Weighted Average Common Shares Outstanding, Basic | 502 | 449 | 431 | ||||||||
Weighted Average Common Shares Outstanding, Diluted | 505 | 452 | 434 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Net income | $ | 791 | $ | 368 | $ | 1,792 | |||||
Other comprehensive income (loss): | |||||||||||
Adjustment to pension and other postretirement plans (net of tax expense (benefit) of $4, ($2) and $6, respectively) | 12 | (10 | ) | 6 | |||||||
Net deferred gain (loss) from cash flow hedges (net of tax expense (benefit) of ($1), ($4) and ($2), respectively) | (2 | ) | (15 | ) | (3 | ) | |||||
Reclassification of deferred loss from cash flow hedges realized in net income (net of tax expense of $-0-, $-0- and $-0-, respectively) | 1 | — | — | ||||||||
Other comprehensive loss from unconsolidated affiliates (net of tax of $-0-, $-0-, and $-0-, respectively) | (1 | ) | — | — | |||||||
Other comprehensive income (loss) | 10 | (25 | ) | 3 | |||||||
Comprehensive income | 801 | 343 | 1795 | ||||||||
Preferred stock dividend requirement | 117 | 35 | — | ||||||||
Comprehensive income available to common shareholders | $ | 684 | $ | 308 | $ | 1,795 |
December 31, 2019 | December 31, 2018 | ||||||
(in millions) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents ($216 and $335 related to VIEs, respectively) | $ | 241 | $ | 4,231 | |||
Investment in marketable securities | 822 | 540 | |||||
Accounts receivable ($26 and $56 related to VIEs, respectively), less bad debt reserve of $21 and $18, respectively | 1,249 | 1,190 | |||||
Accrued unbilled revenues | 586 | 378 | |||||
Natural gas and coal inventory | 277 | 194 | |||||
Materials and supplies | 269 | 200 | |||||
Non-trading derivative assets | 136 | 100 | |||||
Taxes receivable | 106 | — | |||||
Prepaid expense and other current assets ($19 and $34 related to VIEs, respectively) | 161 | 192 | |||||
Total current assets | 3,847 | 7,025 | |||||
Property, Plant and Equipment, net | 20,945 | 14,044 | |||||
Other Assets: | |||||||
Goodwill | 5,164 | 867 | |||||
Regulatory assets ($788 and $1,059 related to VIEs, respectively) | 2,117 | 1,967 | |||||
Non-trading derivative assets | 58 | 38 | |||||
Investment in unconsolidated affiliates | 2,408 | 2,482 | |||||
Preferred units - unconsolidated affiliate | 363 | 363 | |||||
Intangible assets, net | 321 | 65 | |||||
Other | 216 | 158 | |||||
Total other assets | 10,647 | 5,940 | |||||
Total Assets | $ | 35,439 | $ | 27,009 |
December 31, 2019 | December 31, 2018 | ||||||
(in millions, except par value and shares) | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Current portion of VIE Securitization Bonds long-term debt | $ | 231 | $ | 458 | |||
Indexed debt, net | 19 | 24 | |||||
Current portion of other long-term debt | 618 | — | |||||
Indexed debt securities derivative | 893 | 601 | |||||
Accounts payable | 1,138 | 1,240 | |||||
Taxes accrued | 241 | 204 | |||||
Interest accrued | 158 | 121 | |||||
Dividends accrued | — | 187 | |||||
Customer deposits | 125 | 86 | |||||
Non-trading derivative liabilities | 51 | 126 | |||||
Other | 414 | 255 | |||||
Total current liabilities | 3,888 | 3,302 | |||||
Other Liabilities: | |||||||
Deferred income taxes, net | 3,928 | 3,239 | |||||
Non-trading derivative liabilities | 29 | 5 | |||||
Benefit obligations | 754 | 796 | |||||
Regulatory liabilities | 3,474 | 2,525 | |||||
Other | 763 | 402 | |||||
Total other liabilities | 8,948 | 6,967 | |||||
Long-term Debt: | |||||||
VIE Securitization Bonds, net | 746 | 977 | |||||
Other long-term debt, net | 13,498 | 7,705 | |||||
Total long-term debt, net | 14,244 | 8,682 | |||||
Commitments and Contingencies (Note 16) | |||||||
Shareholders’ Equity: | |||||||
Cumulative preferred stock, $0.01 par value, 20,000,000 shares authorized | — | — | |||||
Series A Preferred Stock, $0.01 par value, $800 aggregate liquidation preference, 800,000 shares outstanding | 790 | 790 | |||||
Series B Preferred Stock, $0.01 par value, $978 aggregate liquidation preference, 977,500 shares outstanding | 950 | 950 | |||||
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 502,242,061 shares and 501,197,784 shares outstanding, respectively | 5 | 5 | |||||
Additional paid-in capital | 6,080 | 6,072 | |||||
Retained earnings | 632 | 349 | |||||
Accumulated other comprehensive loss | (98 | ) | (108 | ) | |||
Total shareholders’ equity | 8,359 | 8,058 | |||||
Total Liabilities and Shareholders’ Equity | $ | 35,439 | $ | 27,009 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 791 | $ | 368 | $ | 1,792 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 1,287 | 1,243 | 1,036 | ||||||||
Amortization of deferred financing costs | 29 | 48 | 24 | ||||||||
Deferred income taxes | 69 | 48 | (770 | ) | |||||||
Amortization of intangible assets in Non-utility cost of revenues | 24 | — | — | ||||||||
Goodwill impairment | 48 | — | — | ||||||||
Unrealized loss (gain) on marketable securities | (282 | ) | 22 | (7 | ) | ||||||
Loss (gain) on indexed debt securities | 292 | 232 | (49 | ) | |||||||
Write-down of natural gas inventory | 4 | 2 | — | ||||||||
Equity in earnings of unconsolidated affiliates | (230 | ) | (307 | ) | (265 | ) | |||||
Distributions from unconsolidated affiliates | 261 | 267 | — | ||||||||
Pension contributions | (109 | ) | (69 | ) | (48 | ) | |||||
Changes in other assets and liabilities, excluding acquisitions: | |||||||||||
Accounts receivable and unbilled revenues, net | 226 | (154 | ) | (216 | ) | ||||||
Inventory | (52 | ) | 1 | (7 | ) | ||||||
Taxes receivable | (106 | ) | — | 30 | |||||||
Accounts payable | (455 | ) | 220 | 136 | |||||||
Fuel cost recovery | 92 | 33 | (85 | ) | |||||||
Non-trading derivatives, net | (64 | ) | 103 | (84 | ) | ||||||
Margin deposits, net | (56 | ) | 5 | (55 | ) | ||||||
Interest and taxes accrued | 54 | 40 | 5 | ||||||||
Net regulatory assets and liabilities | (114 | ) | 28 | (107 | ) | ||||||
Other current assets | (22 | ) | — | (3 | ) | ||||||
Other current liabilities | (107 | ) | (24 | ) | 34 | ||||||
Other assets | 103 | 6 | (4 | ) | |||||||
Other liabilities | (54 | ) | 12 | 36 | |||||||
Other, net | 9 | 12 | 24 | ||||||||
Net cash provided by operating activities | 1,638 | 2,136 | 1,417 | ||||||||
Cash Flows from Investing Activities: | |||||||||||
Capital expenditures | (2,506 | ) | (1,651 | ) | (1,426 | ) | |||||
Acquisitions, net of cash acquired | (5,991 | ) | — | (132 | ) | ||||||
Distributions from unconsolidated affiliates in excess of cumulative earnings | 42 | 30 | 297 | ||||||||
Proceeds from sale of marketable securities | — | 398 | — | ||||||||
Proceeds from sale of assets | 5 | — | — | ||||||||
Purchase of investments | (6 | ) | — | — | |||||||
Other, net | 35 | 16 | 4 | ||||||||
Net cash used in investing activities | (8,421 | ) | (1,207 | ) | (1,257 | ) | |||||
Cash Flows from Financing Activities: | |||||||||||
Increase (decrease) in short-term borrowings, net | — | (39 | ) | 4 | |||||||
Proceeds from (payments of) commercial paper, net | 1,891 | (1,543 | ) | 349 | |||||||
Proceeds from long-term debt, net | 2,916 | 2,495 | 1,096 | ||||||||
Payments of long-term debt | (1,302 | ) | (484 | ) | (1,211 | ) | |||||
Loss on reacquired debt | — | — | (5 | ) | |||||||
Debt and equity issuance costs | (20 | ) | (47 | ) | (13 | ) | |||||
Payment of dividends on Common Stock | (577 | ) | (499 | ) | (461 | ) | |||||
Payment of dividends on preferred stock | (118 | ) | (11 | ) | — | ||||||
Proceeds from issuance of Common Stock, net | — | 1,844 | — | ||||||||
Proceeds from issuance of preferred stock, net | — | 1,740 | — | ||||||||
Distribution to ZENS holders | — | (398 | ) | — | |||||||
Other, net | (14 | ) | (5 | ) | (4 | ) | |||||
Net cash provided by (used in) financing activities | 2,776 | 3,053 | (245 | ) | |||||||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (4,007 | ) | 3,982 | (85 | ) | ||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 4,278 | 296 | 381 | ||||||||
Cash, Cash Equivalents and Restricted Cash at End of Year | $ | 271 | $ | 4,278 | $ | 296 |
2019 | 2018 | 2017 | ||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||
(in millions of dollars and shares, except per share amounts) | ||||||||||||||||||||
Cumulative Preferred Stock, $0.01 par value; authorized 20,000,000 shares | ||||||||||||||||||||
Balance, beginning of year | 2 | $ | 1,740 | — | $ | — | — | $ | — | |||||||||||
Issuances of Series A Preferred Stock | — | — | 1 | 790 | — | — | ||||||||||||||
Issuances of Series B Preferred Stock | — | — | 1 | 950 | — | — | ||||||||||||||
Balance, end of year | 2 | 1,740 | 2 | 1,740 | — | — | ||||||||||||||
Common Stock, $0.01 par value; authorized 1,000,000,000 shares | ||||||||||||||||||||
Balance, beginning of year | 501 | 5 | 431 | 4 | 431 | 4 | ||||||||||||||
Issuances related to benefit and investment plans | 1 | — | — | — | — | — | ||||||||||||||
Issuances of Common Stock | — | — | 70 | 1 | — | — | ||||||||||||||
Balance, end of year | 502 | 5 | 501 | 5 | 431 | 4 | ||||||||||||||
Additional Paid-in-Capital | ||||||||||||||||||||
Balance, beginning of year | 6,072 | 4,209 | 4,195 | |||||||||||||||||
Issuances related to benefit and investment plans | 8 | 19 | 14 | |||||||||||||||||
Issuances of Common Stock, net of issuance costs | — | 1,844 | — | |||||||||||||||||
Balance, end of year | 6,080 | 6,072 | 4,209 | |||||||||||||||||
Retained Earnings (Accumulated Deficit) | ||||||||||||||||||||
Balance, beginning of year | 349 | 543 | (668 | ) | ||||||||||||||||
Net income | 791 | 368 | 1,792 | |||||||||||||||||
Common Stock dividends declared ($0.8625, $1.1200 and $1.3475 per share, respectively) | (433 | ) | (523 | ) | (581 | ) | ||||||||||||||
Series A Preferred Stock dividends declared ($30.6250, $32.1563 and $-0- per share, respectively) | (24 | ) | (26 | ) | — | |||||||||||||||
Series B Preferred Stock dividends declared ($52.5000, $29.1667 and $-0- per share, respectively) | (51 | ) | (28 | ) | — | |||||||||||||||
Adoption of ASU 2018-02 | — | 15 | — | |||||||||||||||||
Balance, end of year | 632 | 349 | 543 | |||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Balance, beginning of year | (108 | ) | (68 | ) | (71 | ) | ||||||||||||||
Other comprehensive income (loss) | 10 | (25 | ) | 3 | ||||||||||||||||
Adoption of ASU 2018-02 | — | (15 | ) | — | ||||||||||||||||
Balance, end of year | (98 | ) | (108 | ) | (68 | ) | ||||||||||||||
Total Shareholders’ Equity | $ | 8,359 | $ | 8,058 | $ | 4,688 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||
Revenues | $ | 3,059 | $ | 2,846 | $ | 2,846 | $ | 2,990 | $ | 3,234 | $ | 2,998 | ||||||||||
Expenses: | ||||||||||||||||||||||
Operation and maintenance | 1,363 | 1,311 | 1,258 | 1,477 | 1,452 | 1,402 | ||||||||||||||||
Depreciation and amortization | 838 | 705 | 768 | 648 | 917 | 724 | ||||||||||||||||
Taxes other than income taxes | 231 | 222 | 224 | 247 | 240 | 235 | ||||||||||||||||
Total | 2,432 | 2,238 | 2,250 | 2,372 | 2,609 | 2,361 | ||||||||||||||||
Operating Income | 627 | 608 | 596 | 618 | 625 | 637 | ||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||
Interest and other finance charges | (126 | ) | (118 | ) | (109 | ) | (164 | ) | (138 | ) | (128 | ) | ||||||||||
Interest on Securitization Bonds | (91 | ) | (105 | ) | (118 | ) | (39 | ) | (59 | ) | (77 | ) | ||||||||||
Other, net | 15 | 21 | 14 | 21 | (3 | ) | (8 | ) | ||||||||||||||
Total | (202 | ) | (202 | ) | (213 | ) | (182 | ) | (200 | ) | (213 | ) | ||||||||||
Income Before Income Taxes | 425 | 406 | 383 | 436 | 425 | 424 | ||||||||||||||||
Income tax expense | 149 | 145 | 131 | |||||||||||||||||||
Income tax expense (benefit) | 80 | 89 | (9 | ) | ||||||||||||||||||
Net Income | $ | 276 | $ | 261 | $ | 252 | $ | 356 | $ | 336 | $ | 433 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Net income | $ | 276 | $ | 261 | $ | 252 | |||||
Other comprehensive income: | |||||||||||
Net deferred gain from cash flow hedges (net of tax of $-0-, $-0-, and $-0-) | 1 | — | — | ||||||||
Total | 1 | — | — | ||||||||
Comprehensive income | $ | 277 | $ | 261 | $ | 252 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Net income | $ | 356 | $ | 336 | $ | 433 | |||||
Other comprehensive income (loss): | |||||||||||
Net deferred loss from cash flow hedges (net of tax expense (benefit) of $-0-, ($4), and $-0-, respectively) | (1 | ) | (14 | ) | (1 | ) | |||||
Other comprehensive loss | (1 | ) | (14 | ) | (1 | ) | |||||
Comprehensive income | $ | 355 | $ | 322 | $ | 432 |
December 31, | ||||||||||||||
2016 | 2015 | December 31, 2019 | December 31, 2018 | |||||||||||
(in millions) | (in millions) | |||||||||||||
ASSETS | ||||||||||||||
Current Assets: | ||||||||||||||
Cash and cash equivalents ($340 and $264 related to VIEs, respectively) | $ | 341 | $ | 264 | ||||||||||
Accounts and notes receivable, net ($52 and $64 related to VIEs, respectively), less bad debt reserve of $1 and $1, respectively | 225 | 234 | ||||||||||||
Cash and cash equivalents ($216 and $335 related to VIEs, respectively) | $ | 216 | $ | 335 | ||||||||||
Accounts and notes receivable, net ($26 and $56 related to VIEs, respectively), less bad debt reserve of $1 and $1, respectively | 238 | 283 | ||||||||||||
Accounts and notes receivable—affiliated companies | 101 | 16 | 523 | 20 | ||||||||||
Accrued unbilled revenues | 106 | 96 | 117 | 110 | ||||||||||
Inventory | 134 | 133 | ||||||||||||
Materials and supplies | 147 | 135 | ||||||||||||
Taxes receivable | 6 | 59 | — | 5 | ||||||||||
Other ($40 and $35 related to VIEs, respectively) | 66 | 63 | ||||||||||||
Prepaid expenses and other current assets ($19 and $34 related to VIEs, respectively) | 49 | 61 | ||||||||||||
Total current assets | 979 | 865 | 1,290 | 949 | ||||||||||
Property, Plant and Equipment, net | 7,397 | 6,933 | 9,032 | 8,402 | ||||||||||
Other Assets: | ||||||||||||||
Regulatory assets ($1,919 and $2,373 related to VIEs, respectively) | 1,793 | 2,211 | ||||||||||||
Regulatory assets ($788 and $1,059 related to VIEs, respectively) | 915 | 1,124 | ||||||||||||
Other | 42 | 16 | 25 | 32 | ||||||||||
Total other assets | 1,835 | 2,227 | 940 | 1,156 | ||||||||||
Total Assets | $ | 10,211 | $ | 10,025 | $ | 11,262 | $ | 10,507 | ||||||
LIABILITIES AND MEMBER’S EQUITY | ||||||||||||||
Current Liabilities: | ||||||||||||||
Current portion of VIE Securitization Bonds long-term debt | $ | 411 | $ | 391 | $ | 231 | $ | 458 | ||||||
Accounts payable | 145 | 153 | 268 | 262 | ||||||||||
Accounts and notes payable—affiliated companies | 88 | 348 | 76 | 78 | ||||||||||
Taxes accrued | 106 | 100 | 123 | 115 | ||||||||||
Interest accrued | 68 | 70 | 69 | 64 | ||||||||||
Non-trading derivative liabilities | — | 24 | ||||||||||||
Other | 90 | 69 | 63 | 89 | ||||||||||
Total current liabilities | 908 | 1,131 | 830 | 1,090 | ||||||||||
Other Liabilities: | ||||||||||||||
Deferred income taxes, net | 2,003 | 2,032 | 1,030 | 1,023 | ||||||||||
Benefit obligations | 148 | 192 | 75 | 91 | ||||||||||
Regulatory liabilities | 530 | 542 | 1,288 | 1,298 | ||||||||||
Other | 51 | 59 | 69 | 65 | ||||||||||
Total other liabilities | 2,732 | 2,825 | 2,462 | 2,477 | ||||||||||
Long-Term Debt, net: | ||||||||||||||
VIE Securitization Bonds, net | 1,867 | 2,276 | 746 | 977 | ||||||||||
Other long-term debt, net | 2,587 | 2,192 | 3,973 | 3,281 | ||||||||||
Total long-term debt, net | 4,454 | 4,468 | 4,719 | 4,258 | ||||||||||
Commitments and Contingencies (Note 10) | ||||||||||||||
Commitments and Contingencies (Note 16) | ||||||||||||||
Member’s Equity: | ||||||||||||||
Common stock | — | — | — | — | ||||||||||
Paid-in capital | 1,696 | 1,322 | ||||||||||||
Additional paid-in capital | 2,486 | 1,896 | ||||||||||||
Retained earnings | 420 | 279 | 780 | 800 | ||||||||||
Accumulated other comprehensive income | 1 | — | ||||||||||||
Accumulated other comprehensive loss | (15 | ) | (14 | ) | ||||||||||
Total member’s equity | 2,117 | 1,601 | 3,251 | 2,682 | ||||||||||
Total Liabilities and Member’s Equity | $ | 10,211 | $ | 10,025 | $ | 11,262 | $ | 10,507 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||||
Net income | $ | 276 | $ | 261 | $ | 252 | $ | 356 | $ | 336 | $ | 433 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||
Depreciation and amortization | 838 | 705 | 768 | 648 | 917 | 724 | ||||||||||||||||
Amortization of deferred financing costs | 14 | 15 | 16 | 12 | 11 | 13 | ||||||||||||||||
Deferred income taxes | (34 | ) | 18 | (24 | ) | (24 | ) | (38 | ) | (98 | ) | |||||||||||
Changes in other assets and liabilities: | ||||||||||||||||||||||
Accounts and notes receivable, net | (1 | ) | 3 | 15 | 38 | 11 | (73 | ) | ||||||||||||||
Accounts receivable/payable–affiliated companies | 63 | (89 | ) | 37 | (23 | ) | 20 | (46 | ) | |||||||||||||
Inventory | (1 | ) | (7 | ) | (21 | ) | (12 | ) | (16 | ) | 15 | |||||||||||
Accounts payable | (4 | ) | — | (3 | ) | 13 | (1 | ) | 59 | |||||||||||||
Taxes receivable | 53 | 44 | (103 | ) | 5 | (5 | ) | 6 | ||||||||||||||
Interest and taxes accrued | 4 | (9 | ) | (40 | ) | 13 | (2 | ) | 7 | |||||||||||||
Non-trading derivatives, net | (25 | ) | 5 | — | ||||||||||||||||||
Net regulatory assets and liabilities | (110 | ) | 3 | (28 | ) | (48 | ) | (97 | ) | (148 | ) | |||||||||||
Other current assets | 2 | (1 | ) | (2 | ) | (5 | ) | (2 | ) | (6 | ) | |||||||||||
Other current liabilities | 21 | (40 | ) | (19 | ) | (9 | ) | (26 | ) | 16 | ||||||||||||
Other assets | (8 | ) | (7 | ) | 11 | 5 | (3 | ) | 13 | |||||||||||||
Other liabilities | (4 | ) | (1 | ) | 5 | (12 | ) | 17 | (4 | ) | ||||||||||||
Other, net | 1 | — | (6 | ) | (14 | ) | (12 | ) | (6 | ) | ||||||||||||
Net cash provided by operating activities | 1,110 | 895 | 858 | 918 | 1,115 | 905 | ||||||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||||
Capital expenditures | (862 | ) | (929 | ) | (804 | ) | (1,025 | ) | (922 | ) | (875 | ) | ||||||||||
Decrease (increase) in notes receivable–affiliated companies | (96 | ) | 107 | (107 | ) | (481 | ) | — | 96 | |||||||||||||
Decrease (increase) in restricted cash of Bond Companies | (5 | ) | 12 | (7 | ) | |||||||||||||||||
Other, net | (1 | ) | 1 | 1 | 11 | 11 | 3 | |||||||||||||||
Net cash used in investing activities | (964 | ) | (809 | ) | (917 | ) | (1,495 | ) | (911 | ) | (776 | ) | ||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||||
Proceeds from long-term debt | 600 | 200 | 600 | |||||||||||||||||||
Proceeds from long-term debt, net | 696 | 398 | 298 | |||||||||||||||||||
Payments of long-term debt | (590 | ) | (372 | ) | (537 | ) | (458 | ) | (434 | ) | (411 | ) | ||||||||||
Dividend to parent | (135 | ) | (252 | ) | — | (376 | ) | (209 | ) | (180 | ) | |||||||||||
Increase (decrease) in notes payable–affiliated companies | (312 | ) | 312 | (3 | ) | (1 | ) | (59 | ) | 60 | ||||||||||||
Cash paid for debt retirements | — | — | (1 | ) | ||||||||||||||||||
Debt issuance costs | (6 | ) | — | (7 | ) | (8 | ) | (4 | ) | (3 | ) | |||||||||||
Contribution from parent | 374 | — | 90 | 590 | 200 | — | ||||||||||||||||
Other, net | (1 | ) | — | — | ||||||||||||||||||
Net cash provided by (used in) financing activities | (69 | ) | (112 | ) | 142 | 442 | (108 | ) | (236 | ) | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 77 | (26 | ) | 83 | ||||||||||||||||||
Cash and Cash Equivalents at Beginning of the Year | 264 | 290 | 207 | |||||||||||||||||||
Cash and Cash Equivalents at End of the Year | $ | 341 | $ | 264 | $ | 290 | ||||||||||||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||||||||||||||||
Cash Payments: | ||||||||||||||||||||||
Interest, net of capitalized interest | $ | 209 | $ | 213 | $ | 215 | ||||||||||||||||
Income taxes | 128 | 81 | 296 | |||||||||||||||||||
Non-cash transactions: | ||||||||||||||||||||||
Accounts payable related to capital expenditures | $ | 65 | $ | 69 | $ | 64 | ||||||||||||||||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (135 | ) | 96 | (107 | ) | |||||||||||||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of the Year | 370 | 274 | 381 | |||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash at End of the Year | $ | 235 | $ | 370 | $ | 274 |
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
(in millions, except share amounts) | (in millions, except share amounts) | |||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | 1,000 | — | 1,000 | — | 1,000 | — | 1,000 | $ | — | 1,000 | $ | — | 1,000 | $ | — | |||||||||||||||||||||||||
Balance, end of year | 1,000 | — | 1,000 | — | 1,000 | — | 1,000 | — | 1,000 | — | 1,000 | — | ||||||||||||||||||||||||||||
Additional Paid-in-Capital | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | 1,322 | 1,322 | 1,232 | 1,896 | 1,696 | 1,696 | ||||||||||||||||||||||||||||||||||
Contribution from parent | 374 | — | 90 | 590 | 200 | — | ||||||||||||||||||||||||||||||||||
Balance, end of year | 1,696 | 1,322 | 1,322 | 2,486 | 1,896 | 1,696 | ||||||||||||||||||||||||||||||||||
Retained Earnings | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | 279 | 270 | 18 | 800 | 673 | 420 | ||||||||||||||||||||||||||||||||||
Net income | 276 | 261 | 252 | 356 | 336 | 433 | ||||||||||||||||||||||||||||||||||
Dividend to parent | (135 | ) | (252 | ) | — | (376 | ) | (209 | ) | (180 | ) | |||||||||||||||||||||||||||||
Balance, end of year | 420 | 279 | 270 | 780 | 800 | 673 | ||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||||
Balance, end of year: | ||||||||||||||||||||||||||||||||||||||||
Net deferred gain from cash flow hedges | 1 | — | — | |||||||||||||||||||||||||||||||||||||
Total accumulated other comprehensive income, end of year | 1 | — | — | |||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | (14 | ) | — | 1 | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | (1 | ) | (14 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||
Balance, end of year | (15 | ) | (14 | ) | — | |||||||||||||||||||||||||||||||||||
Total Member’s Equity | $ | 2,117 | $ | 1,601 | $ | 1,592 | $ | 3,251 | $ | 2,682 | $ | 2,369 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Revenues: | |||||||||||
Utility revenues | $ | 2,911 | $ | 2,931 | $ | 2,606 | |||||
Non-utility revenues | 3,659 | 4,412 | 3,997 | ||||||||
Total | 6,570 | 7,343 | 6,603 | ||||||||
Expenses: | |||||||||||
Utility natural gas | 1,312 | 1,410 | 1,109 | ||||||||
Non-utility cost of revenue, including natural gas | 3,503 | 4,364 | 3,785 | ||||||||
Operation and maintenance | 890 | 898 | 816 | ||||||||
Depreciation and amortization | 305 | 293 | 279 | ||||||||
Taxes other than income taxes | 162 | 156 | 147 | ||||||||
Goodwill impairment | 48 | — | — | ||||||||
Total | 6,220 | 7,121 | 6,136 | ||||||||
Operating Income | 350 | 222 | 467 | ||||||||
Other Income (Expense): | |||||||||||
Interest and other finance charges | (116 | ) | (122 | ) | (123 | ) | |||||
Other, net | (8 | ) | (8 | ) | (25 | ) | |||||
Total | (124 | ) | (130 | ) | (148 | ) | |||||
Income From Continuing Operations Before Income Taxes | 226 | 92 | 319 | ||||||||
Income tax expense (benefit) | 14 | 22 | (265 | ) | |||||||
Income From Continuing Operations | 212 | 70 | 584 | ||||||||
Income from discontinued operations (net of tax expense of $-0-, $46, and $104, respectively) | — | 138 | 161 | ||||||||
Net Income | $ | 212 | $ | 208 | $ | 745 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Net income | $ | 212 | $ | 208 | $ | 745 | |||||
Other comprehensive income (loss): | |||||||||||
Adjustment to postretirement plans (net of tax expense of $2, $1 and $4, respectively) | 5 | 1 | 4 | ||||||||
Net deferred loss from cash flow hedges (net of tax expense (benefit) of $-0-, $-0- and ($1), respectively) | — | (1 | ) | (1 | ) | ||||||
Other comprehensive income | 5 | — | 3 | ||||||||
Comprehensive income | $ | 217 | $ | 208 | $ | 748 |
December 31, 2019 | December 31, 2018 | ||||||
(in millions) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 2 | $ | 14 | |||
Accounts receivable, less bad debt reserve of $15 million and $17 million, respectively | 693 | 894 | |||||
Accrued unbilled revenue | 257 | 268 | |||||
Accounts and notes receivable — affiliated companies | 10 | 120 | |||||
Material and supplies | 71 | 65 | |||||
Natural gas inventory | 202 | 194 | |||||
Non-trading derivative assets | 136 | 100 | |||||
Prepaid expenses and other current assets | 44 | 115 | |||||
Total current assets | 1,415 | 1,770 | |||||
Property, Plant and Equipment, Net | 5,836 | 5,226 | |||||
Other Assets: | |||||||
Goodwill | 819 | 867 | |||||
Regulatory assets | 191 | 181 | |||||
Non-trading derivative assets | 58 | 38 | |||||
Other | 120 | 132 | |||||
Total other assets | 1,188 | 1,218 | |||||
Total Assets | $ | 8,439 | $ | 8,214 |
December 31, 2019 | December 31, 2018 | ||||||
(in millions) | |||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 557 | $ | 856 | |||
Accounts and notes payable–affiliated companies | 48 | 50 | |||||
Taxes accrued | 84 | 82 | |||||
Interest accrued | 38 | 38 | |||||
Customer deposits | 76 | 75 | |||||
Non-trading derivative liabilities | 44 | 102 | |||||
Other | 191 | 137 | |||||
Total current liabilities | 1,038 | 1,340 | |||||
Other Liabilities: | |||||||
Deferred income taxes, net | 470 | 406 | |||||
Non-trading derivative liabilities | 14 | 5 | |||||
Benefit obligations | 83 | 93 | |||||
Regulatory liabilities | 1,219 | 1,227 | |||||
Other | 428 | 329 | |||||
Total other liabilities | 2,214 | 2,060 | |||||
Long-Term Debt | 2,546 | 2,371 | |||||
Commitments and Contingencies (Note 16) | |||||||
Stockholder’s Equity: | |||||||
Common stock | — | — | |||||
Additional paid-in capital | 2,116 | 2,015 | |||||
Retained earnings | 515 | 423 | |||||
Accumulated other comprehensive income | 10 | 5 | |||||
Total stockholder’s equity | 2,641 | 2,443 | |||||
Total Liabilities and Stockholder’s Equity | $ | 8,439 | $ | 8,214 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 212 | $ | 208 | $ | 745 | |||||
Less: Income from discontinued operations, net of tax | — | 138 | 161 | ||||||||
Income from continuing operations | 212 | 70 | 584 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 305 | 293 | 279 | ||||||||
Amortization of deferred financing costs | 9 | 9 | 9 | ||||||||
Deferred income taxes | 7 | 31 | (224 | ) | |||||||
Goodwill impairment | 48 | — | — | ||||||||
Write-down of natural gas inventory | 4 | 2 | — | ||||||||
Changes in other assets and liabilities: | |||||||||||
Accounts receivable and unbilled revenues, net | 252 | (155 | ) | (143 | ) | ||||||
Accounts receivable/payable–affiliated companies | (6 | ) | 9 | — | |||||||
Inventory | (12 | ) | 17 | (22 | ) | ||||||
Accounts payable | (305 | ) | 163 | 64 | |||||||
Fuel cost recovery | 86 | 33 | (85 | ) | |||||||
Interest and taxes accrued | 2 | — | (41 | ) | |||||||
Non-trading derivatives, net | (60 | ) | 98 | (82 | ) | ||||||
Margin deposits, net | (56 | ) | 5 | (55 | ) | ||||||
Net regulatory assets and liabilities | (10 | ) | 50 | (27 | ) | ||||||
Other current assets | 1 | 4 | 2 | ||||||||
Other current liabilities | 22 | (3 | ) | 15 | |||||||
Other assets | 5 | 5 | (8 | ) | |||||||
Other liabilities | (38 | ) | 6 | 6 | |||||||
Other, net | — | 1 | 6 | ||||||||
Net cash provided by operating activities from continuing operations | 466 | 638 | 278 | ||||||||
Net cash provided by operating activities from discontinued operations | — | 176 | — | ||||||||
Net cash provided by operating activities | 466 | 814 | 278 | ||||||||
Cash Flows from Investing Activities: | |||||||||||
Capital expenditures | (776 | ) | (633 | ) | (513 | ) | |||||
Acquisitions, net of cash acquired | — | — | (132 | ) | |||||||
(Increase) decrease in notes receivable–affiliated companies | 114 | (114 | ) | — | |||||||
Other, net | — | 3 | 2 | ||||||||
Net cash used in investing activities from continuing operations | (662 | ) | (744 | ) | (643 | ) | |||||
Net cash provided by investing activities from discontinued operations | — | 47 | 297 | ||||||||
Net cash used in investing activities | (662 | ) | (697 | ) | (346 | ) | |||||
Cash Flows from Financing Activities: | |||||||||||
Increase (decrease) in short-term borrowings, net | — | (39 | ) | 4 | |||||||
Proceeds from (payments of) commercial paper, net | 167 | (688 | ) | 329 | |||||||
Proceeds from long-term debt | — | 599 | 298 | ||||||||
Payments of long-term debt | — | — | (550 | ) | |||||||
Dividends to parent | (120 | ) | (360 | ) | (601 | ) | |||||
Debt issuance costs | — | (5 | ) | (4 | ) | ||||||
Loss on reacquired debt | — | — | (5 | ) | |||||||
Contribution from parent | 129 | 960 | 38 | ||||||||
Increase (decrease) in notes payable–affiliated companies | — | (570 | ) | 570 | |||||||
Other, net | (3 | ) | (1 | ) | — | ||||||
Net cash provided by (used in) financing activities from continuing operations | 173 | (104 | ) | 79 | |||||||
Net cash provided by financing activities from discontinued operations | — | — | — | ||||||||
Net cash provided by (used in) financing activities | 173 | (104 | ) | 79 | |||||||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (23 | ) | 13 | 11 | |||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 25 | 12 | 1 | ||||||||
Cash, Cash Equivalents and Restricted Cash at End of Year | $ | 2 | $ | 25 | $ | 12 |
2019 | 2018 | 2017 | ||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||
(in millions, except share amounts) | ||||||||||||||||||||
Common Stock | ||||||||||||||||||||
Balance, beginning of year | 1,000 | $ | — | 1,000 | $ | — | 1,000 | $ | — | |||||||||||
Balance, end of year | 1,000 | — | 1,000 | — | 1,000 | — | ||||||||||||||
Additional Paid-in-Capital | ||||||||||||||||||||
Balance, beginning of year | 2,015 | 2,528 | 2,489 | |||||||||||||||||
Contribution from parent | 129 | 960 | 38 | |||||||||||||||||
Capital distribution to parent associated with Internal Spin | (28 | ) | (1,473 | ) | — | |||||||||||||||
Other | — | — | 1 | |||||||||||||||||
Balance, end of year | 2,116 | 2,015 | 2,528 | |||||||||||||||||
Retained Earnings | ||||||||||||||||||||
Balance, beginning of year | 423 | 574 | 430 | |||||||||||||||||
Net income | 212 | 208 | 745 | |||||||||||||||||
Dividend to parent | (120 | ) | (360 | ) | (601 | ) | ||||||||||||||
Adoption of ASU 2018-02 | — | 1 | — | |||||||||||||||||
Balance, end of year | 515 | 423 | 574 | |||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||
Balance, beginning of year | 5 | 6 | 3 | |||||||||||||||||
Other comprehensive income | 5 | — | 3 | |||||||||||||||||
Adoption of ASU 2018-02 | — | (1 | ) | — | ||||||||||||||||
Balance, end of year | 10 | 5 | 6 | |||||||||||||||||
Total Stockholder’s Equity | $ | 2,641 | $ | 2,443 | $ | 3,108 |
(a) | Use of Estimates |
(b) | Principles of Consolidation |
(c) | Equity and Investments without a Readily Determinable Fair Value (CenterPoint Energy) |
(d) | Revenues |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Interest and AFUDC debt (1) | $ | 36 | $ | 8 | $ | 3 | $ | 8 | $ | 6 | $ | 2 | $ | 9 | $ | 6 | $ | 2 | |||||||||||||||||
AFUDC equity (2) | 22 | 15 | 3 | 12 | 10 | 2 | 11 | 10 | 1 |
(1) | Included in Interest and other finance charges on the Registrants’ respective Statements of Consolidated Income. |
(2) | Included in Other Income (Expense) on the Registrants’ respective Statements of Consolidated Income. |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Provision for doubtful accounts | $ | 16 | $ | — | $ | 12 | $ | 16 | $ | — | $ | 16 | $ | 14 | $ | 1 | $ | 13 |
Recently Adopted Accounting Standards | ||||||
ASU Number and Name | Description | Date of Adoption | Financial Statement Impact upon Adoption | |||
ASU 2016-02- Leases (Topic 842) and related amendments | ASU 2016-02 provides a comprehensive new lease model that requires lessees to recognize assets and liabilities for most leases and would change certain aspects of lessor accounting. Transition method: modified retrospective | January 1, 2019 | The Registrants adopted the standard and recognized a right-of-use asset and lease liability on their statement of financial position with no material impact on their results of operations and cash flows. See Note 22 for more information. |
Issued, Not Yet Effective Accounting Standards | ||||||
ASU Number and Name | Description | Effective Date | Financial Statement Impact upon Adoption | |||
ASU 2016-13- Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | This standard, including standards amending this standard, requires a new model called CECL to estimate credit losses for (1) financial assets subject to credit losses and measured at amortized cost and (2) certain off-balance sheet credit exposures. Upon initial recognition of the exposure, the CECL model requires an entity to estimate the credit losses expected over the life of an exposure based on historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. Transition method: modified retrospective | January 1, 2020 Early adoption is permitted | The adoption of this standard will result in an immaterial adjustment to the carrying value of the Registrants’ accounts receivable, net. The adoption of this standard will not have a material impact on the Registrants’ financial position, results of operations or cash flows. | |||
ASU 2018-13- Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement | This standard eliminates, modifies and adds certain disclosure requirements for fair value measurements. Transition method: prospective for additions and one modification and retrospective for all other amendments | Adoption of eliminations and modifications as of September 30, 2018; Additions will be adopted January 1, 2020 | The adoption of this standard did not impact the Registrants’ financial position, results of operations or cash flows. Note 10 reflects the disclosures modified upon adoption. | |||
ASU 2018-15-Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract | This standard aligns accounting for implementation costs incurred in a cloud computing arrangement that is accounted for as a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update also prescribes the balance sheet, income statement and cash flow classification of the capitalized implementation costs and related amortization expense and requires additional quantitative and qualitative disclosures. Transition method: retrospective or prospective | January 1, 2020 Early adoption is permitted | The adoption of this standard will require the Registrants to capitalize certain costs to implement cloud computing arrangements that are accounted for as service contracts within Prepaid expenses and other current assets on the Registrants’ consolidated balance sheets and record the amortization of such assets within Operation and maintenance expenses on the Registrants’ statements of consolidated income. The adoption of this standard will not have a material impact on the Registrants’ financial position, results of operations, cash flows or disclosures. |
Weighted Average Useful | December 31, | ||||||||
Lives (in years) | 2016 | 2015 | |||||||
(in millions) | |||||||||
Transmission | 44 | $ | 2,402 | $ | 2,196 | ||||
Distribution | 31 | 6,965 | 6,556 | ||||||
Other | 14 | 1,473 | 1,390 | ||||||
Total | 10,840 | 10,142 | |||||||
Accumulated depreciation | 3,443 | 3,209 | |||||||
Property, plant and equipment, net | $ | 7,397 | $ | 6,933 |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||
Weighted Average Useful Lives | Property, Plant and Equipment, Gross | Accumulated Depreciation & Amortization | Property, Plant and Equipment, Net | Property, Plant and Equipment, Gross | Accumulated Depreciation & Amortization | Property, Plant and Equipment, Net | |||||||||||||||||||
(in years) | (in millions) | ||||||||||||||||||||||||
CenterPoint Energy | |||||||||||||||||||||||||
Electric Transmission & Distribution | 37 | $ | 14,360 | $ | 4,634 | $ | 9,726 | $ | 12,148 | $ | 3,746 | $ | 8,402 | ||||||||||||
Electric Generation (1) | 27 | 1,780 | 698 | 1,082 | — | — | — | ||||||||||||||||||
Natural Gas Distribution | 29 | 12,695 | 3,731 | 8,964 | 7,257 | 2,128 | 5,129 | ||||||||||||||||||
Energy Services (2) | 27 | 136 | 53 | 83 | 121 | 43 | 78 | ||||||||||||||||||
Infrastructure Services (3) | 10 | 317 | 22 | 295 | — | — | — | ||||||||||||||||||
Other property | 19 | 1,397 | 602 | 795 | 741 | 306 | 435 | ||||||||||||||||||
Total | $ | 30,685 | $ | 9,740 | $ | 20,945 | $ | 20,267 | $ | 6,223 | $ | 14,044 | |||||||||||||
Houston Electric | |||||||||||||||||||||||||
Electric Transmission | 46 | $ | 3,358 | $ | 674 | $ | 2,684 | $ | 3,077 | $ | 650 | $ | 2,427 | ||||||||||||
Electric Distribution | 35 | 7,876 | 2,586 | 5,290 | 7,524 | 2,553 | 4,971 | ||||||||||||||||||
Other transmission & distribution property | 19 | 1,595 | 537 | 1,058 | 1,547 | 543 | 1,004 | ||||||||||||||||||
Total | $ | 12,829 | $ | 3,797 | $ | 9,032 | $ | 12,148 | $ | 3,746 | $ | 8,402 | |||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||
Weighted Average Useful Lives | Property, Plant and Equipment, Gross | Accumulated Depreciation & Amortization | Property, Plant and Equipment, Net | Property, Plant and Equipment, Gross | Accumulated Depreciation & Amortization | Property, Plant and Equipment, Net | |||||||||||||||||||
(in years) | (in millions) | ||||||||||||||||||||||||
CERC | |||||||||||||||||||||||||
Natural Gas Distribution | 29 | $ | 7,933 | $ | 2,208 | $ | 5,725 | $ | 7,257 | $ | 2,128 | $ | 5,129 | ||||||||||||
Energy Services (2) | 27 | 136 | 53 | 83 | 121 | 43 | 78 | ||||||||||||||||||
Other property | 16 | 55 | 27 | 28 | 53 | 34 | 19 | ||||||||||||||||||
Total | $ | 8,124 | $ | 2,288 | $ | 5,836 | $ | 7,431 | $ | 2,205 | $ | 5,226 |
(1) | SIGECO and AGC own a 300 MW unit at the Warrick Power Plant (Warrick Unit 4) as tenants in common. SIGECO’s share of the cost of this unit as of December 31, 2019, is $194 million with accumulated depreciation totaling $137 million. AGC and SIGECO share equally in the cost of operation and output of the unit. SIGECO’s share of operating costs is included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income. |
(2) | On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell CES, which represents substantially all of the businesses within the Energy Services reportable segment. The transaction is expected to close in the second quarter of 2020. For further information, see Notes 6 and 23. |
(3) | On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the businesses within its Infrastructure Services reportable segment. The transaction is expected to close in the second quarter of 2020. For further information, see Notes 6 and 23. |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Depreciation | $ | 920 | $ | 339 | $ | 281 | $ | 626 | $ | 342 | $ | 264 | $ | 619 | $ | 354 | $ | 243 | |||||||||||||||||
Amortization of securitized regulatory assets | 271 | 271 | — | 531 | 531 | — | 329 | 329 | — | ||||||||||||||||||||||||||
Other amortization | 96 | 38 | 24 | 86 | 44 | 29 | 88 | 41 | 36 | ||||||||||||||||||||||||||
Total | $ | 1,287 | $ | 648 | $ | 305 | $ | 1,243 | $ | 917 | $ | 293 | $ | 1,036 | $ | 724 | $ | 279 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Depreciation expense | $ | 349 | $ | 316 | $ | 295 | |||||
Amortization of securitized regulatory assets | 455 | 365 | 441 | ||||||||
Other amortization | 34 | 24 | 32 | ||||||||
Total depreciation and amortization | $ | 838 | $ | 705 | $ | 768 |
December 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Beginning balance | $ | 37 | $ | 36 | |||
Accretion expense | 1 | 1 | |||||
Revisions in estimates of cash flows | (5 | ) | — | ||||
Ending balance | $ | 33 | $ | 37 |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Beginning balance | $ | 258 | $ | 34 | $ | 221 | $ | 281 | $ | 35 | $ | 243 | |||||||||||
Addition from Merger with Vectren | 116 | — | — | — | — | — | |||||||||||||||||
Accretion expense (1) | 16 | 1 | 10 | 10 | 1 | 9 | |||||||||||||||||
Revisions in estimates (2) | 149 | 7 | 94 | (33 | ) | (2 | ) | (31 | ) | ||||||||||||||
Ending balance | $ | 539 | $ | 42 | $ | 325 | $ | 258 | $ | 34 | $ | 221 |
(1) | Reflected in Regulatory assets on each of the Registrants’ respective Consolidated Balance Sheets. |
(2) | In 2019, the Registrants reflected an increase in their respective ARO liability, which is primarily attributable to decreases in the long-term interest rates used for discounting in the ARO calculation and increased estimated closure costs for CenterPoint Energy’s electric generation. In 2018, CenterPoint Energy and CERC reflected a decrease in their respective ARO liability, which is primarily attributable to increases in the long-term interest rates used for discounting in the ARO calculation. |
Cash and cash equivalents | $ | 16 | ||
Other current assets | 577 | |||
Property, plant and equipment, net | 5,147 | |||
Identifiable intangibles | 297 | |||
Regulatory assets | 338 | |||
Other assets | 141 | |||
Total assets acquired | 6,516 | |||
Current liabilities | 648 | |||
Regulatory liabilities | 938 | |||
Other liabilities | 886 | |||
Long-term debt | 2,401 | |||
Total liabilities assumed | 4,873 | |||
Net assets acquired | 1,643 | |||
Goodwill | 4,339 | |||
Total purchase price consideration | $ | 5,982 |
Weighted Average Useful Lives | Estimated Fair Value | |||||
(in years) | (in millions) | |||||
Operation and maintenance agreements | 24 | $ | 12 | |||
Customer relationships | 18 | 200 | ||||
Construction backlog | 1 | 27 | ||||
Trade names | 10 | 58 | ||||
Total | $ | 297 |
(in millions) | ||||
Operating revenues | $ | 2,729 | ||
Net income | 190 |
Year Ended December 31, | |||||||||
2019 | 2018 | ||||||||
(in millions) | |||||||||
Operating revenues | $ | 12,547 | $ | 13,282 | |||||
Net income | 812 | (1) | 458 | (2) |
(1) | Pro forma net income was adjusted to exclude $37 million of Vectren Merger-related transaction costs incurred in 2019. |
(2) | Pro forma net income was adjusted to include $37 million of Vectren Merger-related transaction costs incurred in 2019. |
Year Ended December 31, 2019 | ||||||||||||||||||||||||||||
Houston Electric T&D (1) | Indiana Electric Integrated (1) (4) | Natural Gas Distribution (1) (4) | Energy Services (2) | Infrastructure Services (2) (4) | Corporate and Other (2) (4) | Total | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Revenue from contracts | $ | 2,984 | $ | 523 | $ | 3,680 | $ | 479 | $ | 1,190 | $ | 295 | $ | 9,151 | ||||||||||||||
Derivatives income | 6 | — | 2 | 3,303 | — | — | 3,311 | |||||||||||||||||||||
Other (3) | 6 | — | 1 | — | — | 5 | 12 | |||||||||||||||||||||
Eliminations | — | — | (40 | ) | (129 | ) | (4 | ) | — | (173 | ) | |||||||||||||||||
Total revenues | $ | 2,996 | $ | 523 | $ | 3,643 | $ | 3,653 | $ | 1,186 | $ | 300 | $ | 12,301 | ||||||||||||||
Year Ended December 31, 2018 | ||||||||||||||||||||||||||||
Houston Electric T&D (1) | Indiana Electric Integrated (1) | Natural Gas Distribution (1) | Energy Services (2) | Infrastructure Services (2) | Corporate and Other (2) | Total | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Revenue from contracts | $ | 3,235 | $ | — | $ | 3,011 | $ | 493 | $ | — | $ | 6 | $ | 6,745 | ||||||||||||||
Derivatives income | (2 | ) | — | (2 | ) | 4,028 | — | — | 4,024 | |||||||||||||||||||
Other (3) | (1 | ) | — | (42 | ) | — | — | 9 | (34 | ) | ||||||||||||||||||
Eliminations | — | — | (36 | ) | (110 | ) | — | — | (146 | ) | ||||||||||||||||||
Total revenues | $ | 3,232 | $ | — | $ | 2,931 | $ | 4,411 | $ | — | $ | 15 | $ | 10,589 | ||||||||||||||
Year Ended December 31, 2017 | ||||||||||||||||||||||||||||
Houston Electric T&D (1) | Indiana Electric Integrated (1) | Natural Gas Distribution (1) | Energy Services (2) | Infrastructure Services (2) | Corporate and Other (2) | Total | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||
Revenue from contracts | $ | 3,001 | $ | — | $ | 2,638 | $ | 480 | $ | — | $ | 5 | $ | 6,124 | ||||||||||||||
Derivatives income | (1 | ) | — | — | 3,569 | — | — | 3,568 | ||||||||||||||||||||
Other (3) | (3 | ) | — | 1 | — | — | 9 | 7 | ||||||||||||||||||||
Eliminations | — | — | (33 | ) | (52 | ) | — | — | (85 | ) | ||||||||||||||||||
Total revenues | $ | 2,997 | $ | — | $ | 2,606 | $ | 3,997 | $ | — | $ | 14 | $ | 9,614 |
(1) | Reflected in Utility revenues in the Statements of Consolidated Income. |
(2) | Reflected in Non-utility revenues in the Statements of Consolidated Income. |
(3) | Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. |
(4) | Reflects revenues from Vectren subsidiaries for the period from February 1, 2019 to December 31, 2019. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Revenue from contracts | $ | 2,984 | $ | 3,235 | $ | 3,001 | |||||
Other (1) | 6 | (1 | ) | (3 | ) | ||||||
Total revenues | $ | 2,990 | $ | 3,234 | $ | 2,998 |
(1) | Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. |
Year Ended December 31, 2019 | ||||||||||||||||
Natural Gas Distribution (1) | Energy Services (2) | Corporate and Other (2) | Total | |||||||||||||
(in millions) | ||||||||||||||||
Revenue from contracts | $ | 2,945 | $ | 480 | $ | 5 | $ | 3,430 | ||||||||
Derivatives income | 2 | 3,302 | — | 3,304 | ||||||||||||
Other (3) | 4 | — | — | 4 | ||||||||||||
Eliminations | (40 | ) | (128 | ) | — | (168 | ) | |||||||||
Total revenues | $ | 2,911 | $ | 3,654 | $ | 5 | $ | 6,570 | ||||||||
Year Ended December 31, 2018 | ||||||||||||||||
Natural Gas Distribution (1) | Energy Services (2) | Corporate and Other (2) | Total | |||||||||||||
(in millions) | ||||||||||||||||
Revenue from contracts | $ | 3,011 | $ | 493 | $ | 1 | $ | 3,505 | ||||||||
Derivatives income | (2 | ) | 4,028 | — | 4,026 | |||||||||||
Other (3) | (42 | ) | — | — | (42 | ) | ||||||||||
Eliminations | (36 | ) | (110 | ) | — | (146 | ) | |||||||||
Total revenues | $ | 2,931 | $ | 4,411 | $ | 1 | $ | 7,343 | ||||||||
Year Ended December 31, 2017 | ||||||||||||||||
Natural Gas Distribution (1) | Energy Services (2) | Corporate and Other (2) | Total | |||||||||||||
(in millions) | ||||||||||||||||
Revenue from contracts | $ | 2,638 | $ | 480 | $ | — | $ | 3,118 | ||||||||
Derivatives income | — | 3,569 | — | 3,569 | ||||||||||||
Other (3) | 1 | — | — | 1 | ||||||||||||
Eliminations | (33 | ) | (52 | ) | — | (85 | ) | |||||||||
Total revenues | $ | 2,606 | $ | 3,997 | $ | — | $ | 6,603 |
(1) | Reflected in Utility revenues in the Statements of Consolidated Income. |
(2) | Reflected in Non-utility revenues in the Statements of Consolidated Income. |
(3) | Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. |
Accounts Receivable | Other Accrued Unbilled Revenues | Contract Assets | Contract Liabilities | ||||||||||||
(in millions) | |||||||||||||||
Opening balance as of December 31, 2018 (1) | $ | 516 | $ | 373 | $ | — | $ | 3 | |||||||
Closing balance as of December 31, 2019 | 800 | 579 | 61 | 34 | |||||||||||
Increase | $ | 284 | $ | 206 | $ | 61 | $ | 31 |
(1) | Opening balances related to Vectren are as of February 1, 2019, and are thus excluded from the opening balance as of December 31, 2018. |
Accounts Receivable | Other Accrued Unbilled Revenues | Contract Liabilities | |||||||||
(in millions) | |||||||||||
Opening balance as of December 31, 2018 | $ | 234 | $ | 110 | $ | 3 | |||||
Closing balance as of December 31, 2019 | 210 | 117 | 3 | ||||||||
Increase (decrease) | $ | (24 | ) | $ | 7 | $ | — |
Accounts Receivable | Other Accrued Unbilled Revenues | ||||||
(in millions) | |||||||
Opening balance as of December 31, 2018 | $ | 282 | $ | 263 | |||
Closing balance as of December 31, 2019 | 282 | 250 | |||||
Increase (decrease) | $ | — | $ | (13 | ) |
Rolling 12 Months | Thereafter | Total | |||||||||
(in millions) | |||||||||||
Revenue expected to be recognized on contracts in place as of December 31, 2019: | |||||||||||
Infrastructure Services | $ | 254 | $ | — | $ | 254 | |||||
Corporate and Other | 84 | 752 | 836 | ||||||||
$ | 338 | $ | 752 | $ | 1,090 |
December 31, 2018 | Additions (1) | Impairment | December 31, 2019 | ||||||||||||
(in millions) | |||||||||||||||
Indiana Electric Integrated | $ | — | $ | 1,121 | $ | — | $ | 1,121 | |||||||
Natural Gas Distribution | 746 | 2,566 | — | 3,312 | |||||||||||
Energy Services (2) | 110 | — | 48 | 62 | |||||||||||
Infrastructure Services | — | 220 | — | 220 | |||||||||||
Corporate and Other | 11 | 438 | — | 449 | |||||||||||
Total | $ | 867 | $ | 4,345 | $ | 48 | $ | 5,164 |
(1) | This represents the allocation of goodwill to reportable segments from the Merger, changes from preliminary amounts previously reported and includes the final determination of fair value for each reportable segment. See Note 4. |
(2) | Amount presented is net of the accumulated goodwill impairment charge of $252 million recorded in 2012. As of December 31, 2019, CenterPoint Energy and CERC identified a triggering event to perform an interim goodwill impairment test and recognized a goodwill impairment on their Energy Services reporting unit which is included in Goodwill impairment on CenterPoint Energy’s and CERC’s Consolidated Statements of Income. |
December 31, 2018 | Impairment | December 31, 2019 | |||||||||
(in millions) | |||||||||||
Natural Gas Distribution | $ | 746 | $ | — | $ | 746 | |||||
Energy Services (1) | 110 | 48 | 62 | ||||||||
Corporate and Other | 11 | — | 11 | ||||||||
Total | $ | 867 | $ | 48 | $ | 819 |
(1) | Amount presented is net of the accumulated goodwill impairment charge of $252 million recorded in 2012. |
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Balance | Gross Carrying Amount | Accumulated Amortization | Net Balance | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Customer relationships (1) | $ | 286 | $ | (43 | ) | $ | 243 | $ | 86 | $ | (27 | ) | $ | 59 | ||||||||||
Covenants not to compete | 4 | (4 | ) | — | 4 | (3 | ) | 1 | ||||||||||||||||
Trade names (1) | 58 | (5 | ) | 53 | — | — | — | |||||||||||||||||
Construction backlog (1) (2) | 27 | (23 | ) | 4 | — | — | — | |||||||||||||||||
Operation and maintenance agreements (1) (2) | 12 | (1 | ) | 11 | — | — | — | |||||||||||||||||
Other (1) | 24 | (14 | ) | 10 | 16 | (11 | ) | 5 | ||||||||||||||||
Total | $ | 411 | $ | (90 | ) | $ | 321 | $ | 106 | $ | (41 | ) | $ | 65 |
(1) | The fair value of intangible assets acquired through acquisitions has been finalized. See Note 4. |
(2) | Amortization expense related to the operation and maintenance agreements and construction backlog is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Statements of Consolidated Income. |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(in millions) | ||||||||||||
Amortization expense of intangible assets recorded in Depreciation and amortization (1) (2) | $ | 25 | $ | 10 | $ | 13 | ||||||
Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas (2) | 24 | — | — |
(1) | Includes $17 million for the year ended December 31, 2019 of amortization expense related to intangibles acquired in the Merger. |
(2) | The fair value of intangible assets, and related amortization assumptions, acquired through acquisitions during the year ended December 31, 2019, has been finalized. See Note 4. |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Balance | Gross Carrying Amount | Accumulated Amortization | Net Balance | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Customer relationships | $ | 86 | $ | (32 | ) | $ | 54 | $ | 86 | $ | (27 | ) | $ | 59 | |||||||||
Covenants not to compete | 4 | (4 | ) | — | 4 | (3 | ) | 1 | |||||||||||||||
Other | 16 | (14 | ) | 2 | 16 | (11 | ) | 5 | |||||||||||||||
Total | $ | 106 | $ | (50 | ) | $ | 56 | $ | 106 | $ | (41 | ) | $ | 65 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(in millions) | ||||||||||||
Amortization expense of intangible assets recorded in Depreciation and amortization | $ | 9 | $ | 10 | $ | 13 |
Amortization Expense | |||||||
CenterPoint Energy | CERC | ||||||
(in millions) | |||||||
2020 | $ | 29 | $ | 6 | |||
2021 | 25 | 6 | |||||
2022 | 25 | 6 | |||||
2023 | 24 | 5 | |||||
2024 | 22 | 5 |
December 31, | December 31, 2019 | ||||||||||||||||||||
2016 | 2015 | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||
(in millions) | Amortization Through | (in millions) | Amortization Through | (in millions) | Amortization Through | (in millions) | |||||||||||||||
Regulatory Assets: | |||||||||||||||||||||
Current regulatory assets (1) | 2020 | $ | 12 | n/a | $ | — | 2020 | $ | 12 | ||||||||||||
Non-current regulatory assets: | |||||||||||||||||||||
Securitized regulatory assets | $ | 1,919 | $ | 2,373 | 2024 | 788 | 2024 | 788 | n/a | — | |||||||||||
Unrecognized equity return (1) | (329 | ) | (393 | ) | |||||||||||||||||
Unamortized loss on reacquired debt | 84 | 93 | |||||||||||||||||||
Pension and postretirement-related regulatory asset | 34 | 50 | |||||||||||||||||||
Other long-term regulatory assets (2) | 85 | 88 | |||||||||||||||||||
Unrecognized equity return (2) | 2024 | (168 | ) | 2024 | (168 | ) | n/a | — | |||||||||||||
Unamortized loss on reacquired debt (3) | 2046 | 62 | 2046 | 62 | n/a | — | |||||||||||||||
Pension and postretirement-related regulatory asset (3) | Various (a) | 637 | TBD (b) | 34 | Various (a) | 22 | |||||||||||||||
Hurricane Harvey restoration costs (3) | Various | 68 | TBD (b) | 64 | TBD (c) | 4 | |||||||||||||||
Regulatory assets related to TCJA (3) (4) | Various | 30 | TBD (b) | 23 | 2023 | 7 | |||||||||||||||
Asset retirement obligation (3) | Perpetual | 131 | Perpetual | 26 | Perpetual | 94 | |||||||||||||||
Other regulatory assets-not earning a return (5) | Various (d) | 147 | Various | 57 | Various | 48 | |||||||||||||||
Other regulatory assets | Various | 422 | Various | 29 | Various | 16 | |||||||||||||||
Total non-current regulatory assets | 2,117 | 915 | 191 | ||||||||||||||||||
Total regulatory assets | 1,793 | 2,211 | 2,129 | 915 | 203 | ||||||||||||||||
Regulatory Liabilities: | |||||||||||||||||||||
Current regulatory liabilities (6) | 2020 | 47 | n/a | — | 2020 | 47 | |||||||||||||||
Non-current regulatory liabilities: | |||||||||||||||||||||
Regulatory liabilities related to TCJA (4) | Various | 1,582 | TBD (b) | 821 | Various | 442 | |||||||||||||||
Estimated removal costs | 345 | 350 | Various | 1,429 | Various | 244 | Various | 637 | |||||||||||||
Other long-term regulatory liabilities | 185 | 192 | |||||||||||||||||||
Other regulatory liabilities | Various | 463 | Various | 223 | Various | 140 | |||||||||||||||
Total non-current regulatory liabilities | 3,474 | 1,288 | 1,219 | ||||||||||||||||||
Total regulatory liabilities | 530 | 542 | 3,521 | 1,288 | 1,266 | ||||||||||||||||
Total regulatory assets and liabilities, net | $ | 1,263 | $ | 1,669 | $ | (1,392 | ) | $ | (373 | ) | $ | (1,063 | ) |
(a) | Pension and postretirement-related regulatory assets balances are measured annually, and the ending amortization period may change based on the actuarial valuation. |
(b) | The recovery and amortization of these amounts are to be determined upon receipt of the final order. |
(c) | The recovery and amortization of a portion of these amounts are expected to be determined in the next rate case. |
(d) | Other regulatory assets not-earning a return includes items with different amortization periods; therefore, the amortization is accounted for through various periods. |
December 31, 2018 | |||||||||||
CenterPoint Energy | Houston Electric | CERC | |||||||||
(in millions) | |||||||||||
Regulatory Assets: | |||||||||||
Current regulatory assets (1) | $ | 77 | $ | — | $ | 77 | |||||
Non-current regulatory assets: | |||||||||||
Securitized regulatory assets | 1,059 | 1,059 | — | ||||||||
Unrecognized equity return (2) | (213 | ) | (213 | ) | — | ||||||
Unamortized loss on reacquired debt (3) | 68 | 68 | — | ||||||||
Pension and postretirement-related regulatory asset (3) | 725 | 33 | 30 | ||||||||
Hurricane Harvey restoration costs (3) | 68 | 64 | 4 | ||||||||
Regulatory assets related to TCJA (3) (4) | 33 | 23 | 10 | ||||||||
Asset retirement obligation (3) | 109 | 24 | 85 | ||||||||
Other regulatory assets-not earning a return (3) | 81 | 55 | 26 | ||||||||
Other regulatory assets | 37 | 11 | 26 | ||||||||
Total non-current regulatory assets | 1,967 | 1,124 | 181 | ||||||||
Total regulatory assets | 2,044 | 1,124 | 258 | ||||||||
Regulatory Liabilities: | |||||||||||
Current regulatory liabilities (6) | 38 | 17 | 21 | ||||||||
Non-current regulatory liabilities: | |||||||||||
Regulatory liabilities related to TCJA (4) | 1,323 | 847 | 476 | ||||||||
Estimated removal costs | 886 | 269 | 617 | ||||||||
Other regulatory liabilities | 316 | 182 | 134 | ||||||||
Total non-current regulatory liabilities | 2,525 | 1,298 | 1,227 | ||||||||
Total regulatory liabilities | 2,563 | 1,315 | 1,248 | ||||||||
Total regulatory assets and liabilities, net | $ | (519 | ) | $ | (191 | ) | $ | (990 | ) |
(1) | Current regulatory assets are included in Prepaid expenses and other current assets in the Registrants’ respective Consolidated Balance Sheets. |
(2) | The unrecognized |
Year Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||
CenterPoint Energy | Houston Electric | CenterPoint Energy | Houston Electric | CenterPoint Energy | Houston Electric | ||||||||||||||||||
Allowed equity return recognized | $ | 45 | $ | 45 | $ | 74 | $ | 74 | $ | 42 | $ | 42 |
(3) | Substantially all of these regulatory assets are not earning a return. |
(4) | The EDIT and deferred revenues will be recovered or refunded to |
(5) | Regulatory assets acquired in the |
(6) | Current regulatory liabilities are included in Other current liabilities in each of the Registrants’ respective Consolidated Balance Sheets. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
LTIP Compensation expense (1) | $ | 28 | $ | 26 | $ | 21 | |||||
Income tax benefit recognized | 7 | 6 | 8 | ||||||||
Actual tax benefit realized for tax deductions | 12 | 5 | 6 |
(1) | Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income and shown prior to any amounts capitalized. |
Year Ended December 31, 2019 | ||||||||||||
Shares (Thousands) | Weighted-Average Grant Date Fair Value | Remaining Average Contractual Life (Years) | Aggregate Intrinsic Value (2) (Millions) | |||||||||
Performance Awards (1) | ||||||||||||
Outstanding and non-vested as of December 31, 2018 | 3,818 | $ | 23.91 | |||||||||
Granted | 1,413 | 31.16 | ||||||||||
Forfeited or canceled | (825 | ) | 24.78 | |||||||||
Vested and released to participants | (1,074 | ) | 18.97 | |||||||||
Outstanding and non-vested as of December 31, 2019 | 3,332 | $ | 28.36 | 1.1 | $ | 53 | ||||||
Stock Unit Awards | ||||||||||||
Outstanding and non-vested as of December 31, 2018 | 1,060 | $ | 24.08 | |||||||||
Granted | 470 | 31.07 | ||||||||||
Forfeited or canceled | (131 | ) | 27.95 | |||||||||
Vested and released to participants | (433 | ) | 20.72 | |||||||||
Outstanding and non-vested as of December 31, 2019 | 966 | $ | 28.46 | 1.2 | $ | 26 |
(1) | Reflects maximum performance achievement. |
(2) |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(In millions, except for per unit amounts) | |||||||||||
Performance Awards | |||||||||||
Weighted-average grant date fair value per unit of awards granted | $ | 31.16 | $ | 26.74 | $ | 26.64 | |||||
Total intrinsic value of awards received by participants | 36 | 12 | 7 | ||||||||
Vested grant date fair value | 20 | 9 | 5 | ||||||||
Stock Unit Awards | |||||||||||
Weighted-average grant date fair value per unit of awards granted | $ | 31.07 | $ | 26.62 | $ | 26.77 | |||||
Total intrinsic value of awards received by participants | 15 | 9 | 9 | ||||||||
Vested grant date fair value | 9 | 7 | 7 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Service cost (1) | $ | 40 | $ | 37 | $ | 36 | |||||
Interest cost (2) | 96 | 79 | 89 | ||||||||
Expected return on plan assets (2) | (105 | ) | (107 | ) | (97 | ) | |||||
Amortization of prior service cost (2) | 9 | 9 | 9 | ||||||||
Amortization of net loss (2) | 52 | 43 | 58 | ||||||||
Settlement cost (2) (3) | 2 | — | — | ||||||||
Curtailment gain (2) (4) | (1 | ) | — | — | |||||||
Net periodic cost | $ | 93 | $ | 61 | $ | 95 |
(1) | Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. |
(2) | Amounts presented in the table above are included in Other, net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals. |
(3) | A one-time, non-cash settlement cost is required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. In 2019, CenterPoint Energy recognized a non-cash settlement cost due to lump sum settlement payments. |
(4) | A curtailment gain or loss is required when the expected future services of a significant number of employees are reduced or eliminated for the accrual of benefits. In 2019, CenterPoint Energy recognized a pension curtailment gain related to employees who were terminated after the Merger closed. |
Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Discount rate | 4.35 | % | 3.65 | % | 4.15 | % | ||
Expected return on plan assets | 6.00 | 6.00 | 6.00 | |||||
Rate of increase in compensation levels | 4.60 | 4.45 | 4.50 |
December 31, | |||||||
2019 | 2018 | ||||||
(in millions, except for actuarial assumptions) | |||||||
Change in Benefit Obligation | |||||||
Benefit obligation, beginning of year | $ | 2,013 | $ | 2,225 | |||
Plan obligations assumed in Merger | 332 | — | |||||
Service cost | 40 | 37 | |||||
Interest cost | 96 | 79 | |||||
Benefits paid | (244 | ) | (201 | ) | |||
Actuarial (gain) loss (1) | 216 | (127 | ) | ||||
Plan amendment | 1 | — | |||||
Curtailment | (1 | ) | — | ||||
Benefit obligation, end of year | 2,453 | 2,013 | |||||
Change in Plan Assets | |||||||
Fair value of plan assets, beginning of year | 1,516 | 1,801 | |||||
Plan assets assumed in Merger | 286 | — | |||||
Employer contributions | 109 | 69 | |||||
Benefits paid | (244 | ) | (201 | ) | |||
Actual investment return | 338 | (153 | ) | ||||
Fair value of plan assets, end of year | 2,005 | 1,516 | |||||
Funded status, end of year | $ | (448 | ) | $ | (497 | ) | |
Amounts Recognized in Balance Sheets | |||||||
Current liabilities-other | $ | (8 | ) | $ | (7 | ) | |
Other liabilities-benefit obligations | (440 | ) | (490 | ) | |||
Net liability, end of year | $ | (448 | ) | $ | (497 | ) | |
Actuarial Assumptions | |||||||
Discount rate (2) | 3.20 | % | 4.35 | % | |||
Expected return on plan assets (3) | 5.75 | 6.00 | |||||
Rate of increase in compensation levels | 4.95 | 4.60 | |||||
Interest crediting rate | 3.25 | 3.75 |
(1) | Significant sources of loss for 2019 include the decrease in discount rate from 4.35% to 3.20%. Significant sources of gain for 2018 include the increase in discount rate from 3.65% to 4.35% and the mortality projection scale change from MP2017 to MP2018. |
(2) | The discount rate assumption was determined by matching the projected cash flows of CenterPoint Energy’s plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. |
(3) | The expected rate of return assumption was developed using the targeted asset allocation of CenterPoint Energy’s plans and the expected return for each asset class. |
December 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
Pension (Qualified) | Pension (Non-qualified) | Pension (Qualified) | Pension (Non-qualified) | ||||||||||||
(in millions) | |||||||||||||||
Accumulated benefit obligation | $ | 2,352 | $ | 68 | $ | 1,930 | $ | 61 | |||||||
Projected benefit obligation | 2,385 | 68 | 1,952 | 61 | |||||||||||
Fair value of plan assets | 2,005 | — | 1,516 | — |
Pension Protection Act Zone Status | Multi-employer Contributions | |||||||||||
Pension Fund | EIN/Pension Plan Number | 2019 | FIP/RP Status Pending/Implemented | 2019 | Surcharge Imposed | |||||||
(in millions) | ||||||||||||
Central Pension Fund | 36-6052390-001 | Green | No | $ | 12 | No | ||||||
Indiana Laborers Pension Fund | 35-6027150-001 | Green | No | 5 | No | |||||||
Pipeline Industry Benefit Fund | 73-0742835-001 | Green | No | 5 | No | |||||||
Laborers District Fund of Ohio | 31-6129964-001 | Green | No | 4 | No | |||||||
Ohio Operating Engineers Pension Fund | 31-6129968-001 | Green | No | 3 | No | |||||||
Operating Engineers Local #324 Fund (1) | 38-1900637-001 | Red | Implemented | 3 | No | |||||||
Minnesota Laborers Pension Fund | 41-6159599-001 | Green | No | 3 | No | |||||||
Laborers’ Combined Fund of Western PA (2) | 25-6135576-001 | Red | Implemented | 2 | No | |||||||
Other | 15 | |||||||||||
Total Contributions | $ | 52 |
(1) | The Operating Engineers Local #324 Fringe Benefits Fund was certified to be in “critical” status for the plan year ending April 30, 2019. In an effort to improve the plan’s funding situation, on March 17, 2011, the trustees adopted a plan amendment, which reduced benefit accruals and eliminated some ancillary benefits, and adopted an RP that will be effective from May 1, 2013 through April 30, 2023 or until the plan is no longer in critical status. On April 27, 2015, the trustees updated the RP to change the annual standard for meeting the requirements of the RP. The trustees further updated the RP on January 29, 2019. The annual standard is that actuarial projections updated for each year show the fund is expected to remain solvent for a 20-year projection period. |
(2) | The Laborers’ Combined Fund of Western Pennsylvania was previously deemed in critical status. The trustees adopted a FIP that is scheduled to run through December 31, 2020 and provided for changes in adjustable benefits and increases in the employer contribution rate. |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Service cost - benefits earned during the period | $ | 1 | $ | 1 | $ | 1 | |||||
Interest cost on accumulated benefit obligation | 10 | 13 | 14 | ||||||||
Expected return on plan assets | (5 | ) | (6 | ) | (6 | ) | |||||
Amortization of transition obligation | — | — | 4 | ||||||||
Amortization of prior service credit | (4 | ) | (2 | ) | (2 | ) | |||||
Amortization of loss | 1 | 3 | 1 | ||||||||
Curtailment | (4 | ) | — | — | |||||||
Net postretirement benefit cost (credit) | $ | (1 | ) | $ | 9 | $ | 12 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Service cost (1) | $ | 3 | $ | 1 | $ | 1 | $ | 2 | $ | — | $ | 1 | $ | 2 | $ | 1 | $ | 1 | |||||||||||||||||
Interest cost (2) | 15 | 7 | 5 | 13 | 8 | 4 | 16 | 9 | 5 | ||||||||||||||||||||||||||
Expected return on plan assets (2) | (5 | ) | (4 | ) | (1 | ) | (5 | ) | (4 | ) | (1 | ) | (5 | ) | (4 | ) | (1 | ) | |||||||||||||||||
Amortization of prior service cost (credit) (2) | (5 | ) | (6 | ) | 1 | (5 | ) | (5 | ) | 1 | (5 | ) | (6 | ) | 1 | ||||||||||||||||||||
Net postretirement benefit cost (credit) | $ | 8 | $ | (2 | ) | $ | 6 | $ | 5 | $ | (1 | ) | $ | 5 | $ | 8 | $ | — | $ | 6 |
(1) | Amounts presented in the table above are included in Operation and maintenance expense in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. |
(2) | Amounts presented in the table above are included in Other, net in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals. |
Year Ended December 31, | ||||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||
Discount rate | 3.20 | % | 3.20 | % | 3.20 | % | 3.60 | % | 3.60 | % | 3.60 | % | 4.15 | % | 4.15 | % | 4.15 | % | ||||||||
Expected return on plan assets | 4.60 | 4.70 | 4.15 | 4.55 | 4.75 | 3.85 | 4.50 | 4.75 | 3.60 |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Discount rate | 4.35 | % | 3.90 | % | 4.75 | % | ||
Expected return on plan assets | 5.00 | % | 5.45 | % | 6.00 | % |
December 31, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 331 | $ | 166 | $ | 110 | $ | 386 | $ | 225 | $ | 109 | |||||||||||
Plan obligations assumed in Merger | 37 | — | ��� | — | — | — | |||||||||||||||||
Service cost | 3 | 1 | 1 | 2 | — | 1 | |||||||||||||||||
Interest cost | 15 | 7 | 5 | 13 | 8 | 4 | |||||||||||||||||
Participant contributions | 8 | 2 | 4 | 7 | 2 | 4 | |||||||||||||||||
Benefits paid | (26 | ) | (13 | ) | (8 | ) | (25 | ) | (13 | ) | (9 | ) | |||||||||||
Plan amendment | 9 | 3 | 5 | — | — | — | |||||||||||||||||
Actuarial (gain) loss (1) | (21 | ) | (4 | ) | (15 | ) | (52 | ) | (56 | ) | 1 | ||||||||||||
Benefit obligation, end of year | 356 | 162 | 102 | 331 | 166 | 110 | |||||||||||||||||
Change in Plan Assets | |||||||||||||||||||||||
Fair value of plan assets, beginning of year | 114 | 89 | 25 | 120 | 93 | 26 | |||||||||||||||||
Employer contributions | 17 | 10 | 3 | 14 | 9 | 4 | |||||||||||||||||
Participant contributions | 8 | 2 | 4 | 7 | 2 | 4 | |||||||||||||||||
Benefits paid | (26 | ) | (13 | ) | (8 | ) | (25 | ) | (13 | ) | (9 | ) | |||||||||||
Actual investment return | 15 | 13 | 3 | (2 | ) | (2 | ) | — | |||||||||||||||
Fair value of plan assets, end of year | 128 | 101 | 27 | 114 | 89 | 25 | |||||||||||||||||
Funded status, end of year | $ | (228 | ) | $ | (61 | ) | $ | (75 | ) | $ | (217 | ) | $ | (77 | ) | $ | (85 | ) | |||||
Amounts Recognized in Balance Sheets | |||||||||||||||||||||||
Current liabilities-other | $ | (8 | ) | $ | — | $ | (3 | ) | $ | (6 | ) | $ | — | $ | (3 | ) | |||||||
Other liabilities-benefit obligations | (220 | ) | (61 | ) | (72 | ) | (211 | ) | (77 | ) | (82 | ) | |||||||||||
Net liability, end of year | $ | (228 | ) | $ | (61 | ) | $ | (75 | ) | $ | (217 | ) | $ | (77 | ) | $ | (85 | ) | |||||
Actuarial Assumptions | |||||||||||||||||||||||
Discount rate (2) | 3.25 | % | 3.25 | % | 3.25 | % | 4.35 | % | 4.35 | % | 4.35 | % | |||||||||||
Expected return on plan assets (3) | 3.95 | 4.05 | 3.35 | 4.60 | 4.70 | 4.15 | |||||||||||||||||
Medical cost trend rate assumed for the next year - Pre-65 | 5.50 | 5.50 | 5.50 | 5.95 | 5.95 | 5.95 | |||||||||||||||||
Medical/prescription drug cost trend rate assumed for the next year - Post-65 | 5.75 | 5.75 | 5.75 | 28.60 | 28.60 | 28.60 | |||||||||||||||||
Prescription drug cost trend rate assumed for the next year - Pre-65 | 8.00 | 8.00 | 8.00 | 9.20 | 9.20 | 9.20 | |||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50 | 4.50 | 4.50 | 4.50 | 4.50 | 4.50 | |||||||||||||||||
Year that the cost trend rates reach the ultimate trend rate - Pre-65 | 2028 | 2028 | 2028 | 2026 | 2026 | 2026 | |||||||||||||||||
Year that the cost trend rates reach the ultimate trend rate - Post-65 | 2029 | 2029 | 2029 | 2027 | 2027 | 2027 |
December 31, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Change in Benefit Obligation | |||||||
Accumulated benefit obligation, beginning of year | $ | 283 | $ | 347 | |||
Service cost | 1 | 1 | |||||
Interest cost | 10 | 13 | |||||
Benefits paid | (20 | ) | (17 | ) | |||
Participant contributions | 3 | 3 | |||||
Medicare drug reimbursement | 1 | 1 | |||||
Plan amendment (1) | (65 | ) | (4 | ) | |||
Actuarial (gain) loss | 4 | (61 | ) | ||||
Accumulated benefit obligation, end of year | $ | 217 | $ | 283 | |||
Change in Plan Assets | |||||||
Plan assets, beginning of year | $ | 110 | $ | 115 | |||
Benefits paid | (20 | ) | (17 | ) | |||
Employer contributions | 10 | 9 | |||||
Participant contributions | 3 | 3 | |||||
Actual investment return | 5 | — | |||||
Plan amendment (2) | (20 | ) | — | ||||
Plan assets, end of year | $ | 88 | $ | 110 | |||
Amounts Recognized in Balance Sheets | |||||||
Other liabilities-benefit obligations | $ | (129 | ) | $ | (173 | ) | |
Net liability, end of year | $ | (129 | ) | $ | (173 | ) | |
Actuarial Assumptions | |||||||
Discount rate | 4.15 | % | 4.35 | % | |||
Expected long-term return on assets | 4.75 | % | 5.00 | % | |||
Healthcare cost trend rate assumed for the next year - Pre 65 | 5.75 | % | 6.00 | % | |||
Healthcare cost trend rate assumed for the next year - Post 65 | 10.65 | % | 5.50 | % | |||
Prescription drug cost trend rate assumed for the next year | 10.75 | % | 11.00 | % | |||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50 | % | 5.00 | % | |||
Year that the healthcare rate reaches the ultimate trend rate | 2024 | 2024 | |||||
Year that the prescription drug rate reaches the ultimate trend rate | 2024 | 2024 |
(1) |
(2) |
(3) | The expected rate of return assumption was developed using the targeted asset allocation of the plans and the expected return for each asset class. |
December 31, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | Pension Benefits | Postretirement Benefits | ||||||||||||||||||||
CenterPoint Energy | CenterPoint Energy | CERC | CenterPoint Energy | CenterPoint Energy | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Unrecognized actuarial loss (gain) | $ | 105 | $ | (16 | ) | $ | (12 | ) | $ | 109 | $ | (7 | ) | $ | (3 | ) | |||||||
Unrecognized prior service cost | — | 7 | 7 | 1 | 5 | 5 | |||||||||||||||||
Deferred tax benefit | — | — | — | — | — | (9 | ) | ||||||||||||||||
Net amount recognized in accumulated other comprehensive loss (gain) | $ | 105 | $ | (9 | ) | $ | (5 | ) | $ | 110 | $ | (2 | ) | $ | (7 | ) |
1% Increase | 1% Decrease | ||||||
(in millions) | |||||||
Effect on the postretirement benefit obligation | $ | 10 | $ | 10 | |||
Effect on total of service and interest cost | 1 | — |
Pension Benefits | Postretirement Benefits | ||||||||||
CenterPoint Energy | CenterPoint Energy | CERC | |||||||||
(in millions) | |||||||||||
Net loss (gain) | $ | 4 | $ | (8 | ) | $ | (6 | ) | |||
Amortization of net loss | (8 | ) | — | — | |||||||
Amortization of prior service cost | (1 | ) | 1 | (1 | ) | ||||||
Total recognized in comprehensive income | $ | (5 | ) | $ | (7 | ) | $ | (7 | ) | ||
Total expense recognized in net periodic costs and Other comprehensive income | $ | 87 | $ | 1 | $ | (1 | ) |
Minimum | Maximum | ||||
U.S. equity | 19 | % | 29 | % | |
International equity | 8 | % | 18 | % | |
Real estate | 3 | % | 9 | % | |
Fixed income | 52 | % | 62 | % | |
Cash | 0 | % | 2 | % |
Fair Value Measurements as of December 31, | |||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Cash | $ | (7 | ) | $ | — | $ | — | $ | (7 | ) | $ | 19 | $ | — | $ | — | $ | 19 | |||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Investment grade or above | — | 699 | — | 699 | — | 368 | — | 368 | |||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||
U.S. companies | 69 | — | — | 69 | 60 | — | — | 60 | |||||||||||||||||||||||
Cash received as collateral from securities lending | 61 | — | — | 61 | 77 | — | — | 77 | |||||||||||||||||||||||
U.S. treasuries | 232 | — | — | 232 | 196 | — | — | 196 | |||||||||||||||||||||||
Mortgage backed securities | — | 8 | — | 8 | — | 6 | — | 6 | |||||||||||||||||||||||
Asset backed securities | — | 3 | — | 3 | — | 1 | — | 1 | |||||||||||||||||||||||
Municipal bonds | — | 44 | — | 44 | — | 27 | — | 27 | |||||||||||||||||||||||
Mutual funds (2) | 270 | — | — | 270 | 167 | — | — | 167 | |||||||||||||||||||||||
International government bonds | — | 21 | — | 21 | — | 16 | — | 16 | |||||||||||||||||||||||
Obligation to return cash received as collateral from securities lending | (61 | ) | — | — | (61 | ) | (77 | ) | — | — | (77 | ) | |||||||||||||||||||
Total investments at fair value | $ | 564 | $ | 775 | $ | — | $ | 1,339 | $ | 442 | $ | 418 | $ | — | $ | 860 | |||||||||||||||
Investments measured by net asset value per share or its equivalent (1) (2) | 666 | 656 | |||||||||||||||||||||||||||||
Total Investments | $ | 2,005 | $ | 1,516 |
(1) | Represents investments in common collective trust funds. |
(2) | The amounts invested in mutual funds and common collective trust funds were allocated as follows: |
As of December 31, | |||||||||||
2019 | 2018 | ||||||||||
Mutual Funds | Common Collective Trust Funds | Mutual Funds | Common Collective Trust Funds | ||||||||
International equities (1) | 31 | % | 29 | % | 85 | % | 41 | % | |||
U.S. equities | 49 | % | 51 | % | 15 | % | 5 | % | |||
Real estate | 1 | % | 6 | % | — | % | — | % | |||
Fixed income | 19 | % | 14 | % | — | % | 54 | % |
Fair Value Measurements as of December 31, 2016 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Mutual funds (1) | $ | 88 | $ | — | $ | — | $ | 88 | |||||||
Total | $ | 88 | $ | — | $ | — | $ | 88 |
(1) |
CenterPoint Energy | Houston Electric | CERC | |||||||||||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | ||||||||||||
U.S. equity | 13 | % | 23 | % | 13 | % | 23 | % | 15 | % | 25 | % | |||||
International equity | 3 | % | 13 | % | 3 | % | 13 | % | 2 | % | 12 | % | |||||
Fixed income | 69 | % | 79 | % | 69 | % | 79 | % | 68 | % | 78 | % | |||||
Cash | 0 | % | 2 | % | 0 | % | 2 | % | 0 | % | 2 | % |
Fair Value Measurements as of December 31, 2015 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
Mutual funds (1) | $ | 110 | $ | — | $ | — | $ | 110 | |||||||
Total | $ | 110 | $ | — | $ | — | $ | 110 |
Fair Value Measurements as of December 31, | |||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||
Mutual Funds | |||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
CenterPoint Energy | $ | 128 | $ | — | $ | — | $ | 128 | $ | 114 | $ | — | $ | — | $ | 114 | |||||||||||||||
Houston Electric | 101 | — | — | 101 | 89 | — | — | 89 | |||||||||||||||||||||||
CERC | 27 | — | — | 27 | 25 | — | — | 25 |
As of December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||
Fixed income | 71 | % | 71 | % | 69 | % | 74 | % | 74 | % | 73 | % | |||||
U.S. equities | 21 | % | 21 | % | 24 | % | 19 | % | 19 | % | 21 | % | |||||
International equities | 8 | % | 8 | % | 7 | % | 7 | % | 7 | % | 6 | % |
Contributions in 2019 | Expected Minimum Contributions in 2020 | ||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Qualified pension plans | $ | 86 | $ | — | $ | — | $ | 76 | $ | — | $ | — | |||||||||||
Non-qualified pension plans | 23 | — | — | 7 | — | — | |||||||||||||||||
Postretirement benefit plans | 17 | 10 | 3 | 17 | 9 | 3 |
Pension Benefits | Postretirement Benefits | ||||||||||||||
CenterPoint Energy | CenterPoint Energy | Houston Electric | CERC | ||||||||||||
(in millions) | |||||||||||||||
2020 | $ | 180 | $ | 18 | $ | 8 | $ | 5 | |||||||
2021 | 178 | 18 | 8 | 4 | |||||||||||
2022 | 180 | 19 | 9 | 5 | |||||||||||
2023 | 181 | 20 | 10 | 5 | |||||||||||
2024 | 177 | 21 | 10 | 6 | |||||||||||
2025-2029 | 824 | 112 | 54 | 30 |
Benefit Payments | |||
(in millions) | |||
2017 | $ | 11 | |
2018 | 12 | ||
2019 | 13 | ||
2020 | 15 | ||
2021 | 16 | ||
2022-2026 | 90 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Savings plan benefit expenses (1) | $ | 58 | $ | 18 | $ | 18 | $ | 43 | $ | 17 | $ | 18 | $ | 41 | $ | 17 | $ | 17 |
(1) | Amounts presented in the table above are included in Operation and maintenance expense in the Registrants’ respective Statements of Consolidated Income and shown prior to any amounts capitalized. |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Postemployment benefits | $ | 2 | $ | 1 | $ | 1 | $ | 3 | $ | 4 | $ | 1 | $ | 6 | $ | 1 | $ | 4 | |||||||||||||||||
Deferred compensation plans | 4 | 1 | — | 3 | 1 | — | 3 | 1 | — |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Postemployment benefits | $ | 11 | $ | 3 | $ | 7 | $ | 11 | $ | 3 | $ | 7 | |||||||||||
Deferred compensation plans | 41 | 8 | 3 | 42 | 9 | 3 | |||||||||||||||||
Split-dollar life insurance arrangements | 32 | 1 | — | 36 | 1 | — |
Percentage of Employees Covered | ||||||||||
Agreement Expiration | CenterPoint Energy | Houston Electric | CERC | |||||||
IBEW Local 66 | May 2020 | 10 | % | 51 | % | — | ||||
OPEIU Local 12 and Mankato | March and May 2021 | 2 | % | — | 3 | % | ||||
Gas Workers Union Local 340 | April 2020 | 3 | % | — | 12 | % | ||||
IBEW Locals 949 & 1393 and USW Locals 12213 & 7441 | December 2020 | 4 | % | — | 7 | % | ||||
USW Locals 13-227 & 13-1 and IBEW Local 702 | June and July 2022 | 5 | % | — | 12 | % | ||||
Teamsters Local 135 | September 2021 | — | — | — | ||||||
UWUA Local 175 | October 2021 | 1 | % | — | — | |||||
Trade Agreements of Infrastructure Services through the DCA and PLCA (1) | Various expiration dates in 2020–2022 | 27 | % | — | — | |||||
Total | 52 | % | 51 | % | 34 | % |
(1) | Infrastructure Services negotiates various trade agreements through contractor associations. The two primary associations are the DCA and the PLCA. These trade agreements are with a variety of construction unions including Laborer’s International Union of North America, International Union of Operating Engineers, United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, and Teamsters. The trade agreements have varying expiration dates in 2020, 2021 and 2022. In addition, these subsidiaries have various project agreements and small local agreements. These agreements expire upon completion of a specific project or on various dates throughout the year. |
December 31, 2019 | December 31, 2018 | ||||||||||||||
Hedging Classification | Notional Principal | ||||||||||||||
CenterPoint Energy (1) | Houston Electric | CenterPoint Energy | Houston Electric | ||||||||||||
(in millions) | |||||||||||||||
Economic hedge | $ | 84 | $ | — | $ | — | $ | — | |||||||
Cash flow hedge | — | — | 450 | 450 |
(1) | Relates to interest rate derivative instruments at SIGECO. |
Year Ended December 31, | ||||||||||||||||||
Texas Operations | Winter Season | Bilateral Cap | 2019 | 2018 | 2017 | |||||||||||||
(in millions) | ||||||||||||||||||
NGD | 2019 – 2020 | $ | 8 | $ | 2 | $ | — | $ | — | |||||||||
NGD | 2018 – 2019 | 9 | — | — | — | |||||||||||||
NGD | 2017 – 2018 | 8 | — | (2 | ) | — | ||||||||||||
Electric operations | 2019 – 2020 | 7 | 3 | — | — | |||||||||||||
Electric operations | 2018 – 2019 | 8 | 3 | — | — | |||||||||||||
Electric operations | 2017 – 2018 | 9 | — | (2 | ) | — | ||||||||||||
Electric operations | 2016 – 2017 | 9 | — | — | (1 | ) | ||||||||||||
Total CenterPoint Energy (1) | $ | 8 | $ | (4 | ) | $ | (1 | ) |
Year Ended December 31, | ||||||||||||||||||
Texas Operations | Winter Season | Bilateral Cap | 2019 | 2018 | 2017 | |||||||||||||
(in millions) | ||||||||||||||||||
NGD | 2019 – 2020 | $ | 8 | $ | 2 | $ | — | $ | — | |||||||||
NGD | 2018 – 2019 | 9 | — | — | — | |||||||||||||
NGD | 2017 – 2018 | 8 | — | (2 | ) | — | ||||||||||||
Total CERC (1) | $ | 2 | $ | (2 | ) | $ | — |
(1) | Weather hedge gains (losses) are recorded in Revenues in the Statements of Consolidated Income. |
December 31, 2019 | December 31, 2018 | ||||||||||||||||
Balance Sheet Location | Derivative Assets Fair Value | Derivative Liabilities Fair Value | Derivative Assets Fair Value | Derivative Liabilities Fair Value | |||||||||||||
(in millions) | |||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Interest rate derivatives | Current Liabilities: Non-trading derivative liabilities | $ | — | $ | — | $ | — | $ | 24 | ||||||||
Derivatives designated as fair value hedges: | |||||||||||||||||
Natural gas derivatives (1) (2) (3) | Current Liabilities: Non-trading derivative liabilities | 12 | — | 1 | 7 | ||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Natural gas derivatives (1) (2) (3) | Current Assets: Non-trading derivative assets | 139 | 3 | 103 | 3 | ||||||||||||
Natural gas derivatives (1) (2) (3) | Other Assets: Non-trading derivative assets | 58 | — | 38 | — | ||||||||||||
Natural gas derivatives (1) (2) (3) | Current Liabilities: Non-trading derivative liabilities | 73 | 184 | 62 | 173 | ||||||||||||
Natural gas derivatives (1) (2) (3) | Other Liabilities: Non-trading derivative liabilities | 10 | 54 | 16 | 25 | ||||||||||||
Interest rate derivatives | Other Liabilities | — | 10 | — | — | ||||||||||||
Indexed debt securities derivative | Current Liabilities | — | 893 | — | 601 | ||||||||||||
Total CenterPoint Energy | $ | 292 | $ | 1,144 | $ | 220 | $ | 833 |
(1) | The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 2,226 Bcf or a net 374 Bcf long position and 1,674 Bcf or a net 140 Bcf long position as of December 31, 2019 and 2018, respectively. Certain natural gas contracts hedge basis risk only and lack a fixed price exposure. |
(2) | Natural gas contracts are presented on a net basis in CenterPoint Energy’s Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within CenterPoint Energy’s Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities is detailed in the Offsetting of Natural Gas Derivative Assets and Liabilities table below. |
(3) | Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. |
December 31, 2019 | December 31, 2018 | |||||||||||||||||
Balance Sheet Location | Derivative Assets Fair Value | Derivative Liabilities Fair Value | Derivative Assets Fair Value | Derivative Liabilities Fair Value | ||||||||||||||
(in millions) | ||||||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||||||
Interest rate derivatives | Current Liabilities: Non-trading derivative liabilities | $ | — | $ | — | $ | — | $ | 24 | |||||||||
Total Houston Electric | $ | — | $ | — | $ | — | $ | 24 |
December 31, 2019 | December 31, 2018 | |||||||||||||||||
Balance Sheet Location | Derivative Assets Fair Value | Derivative Liabilities Fair Value | Derivative Assets Fair Value | Derivative Liabilities Fair Value | ||||||||||||||
(in millions) | ||||||||||||||||||
Derivatives designated as fair value hedges: | ||||||||||||||||||
Natural gas derivatives (1) (2) (3) | Current Liabilities: Non-trading derivative liabilities | $ | 12 | $ | — | $ | 1 | $ | 7 | |||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Natural gas derivatives (1) (2) (3) | Current Assets: Non-trading derivative assets | 139 | 3 | 103 | 3 | |||||||||||||
Natural gas derivatives (1) (2) (3) | Other Assets: Non-trading derivative assets | 58 | — | 38 | — | |||||||||||||
Natural gas derivatives (1) (2) (3) | Current Liabilities: Non-trading derivative liabilities | 73 | 177 | 62 | 173 | |||||||||||||
Natural gas derivatives (1) (2) (3) | Other Liabilities: Non-trading derivative liabilities | 10 | 39 | 16 | 25 | |||||||||||||
Total CERC | $ | 292 | $ | 219 | $ | 220 | $ | 208 |
(1) | The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 2,226 Bcf or a net 374 Bcf long position and 1,674 Bcf or a net 140 Bcf long position as of December 31, 2019 and 2018, respectively. Certain natural gas contracts hedge basis risk only and lack a fixed price exposure. |
(2) | Natural gas contracts are presented on a net basis in CERC’s Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within CERC’s Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities is detailed in the Offsetting of Natural Gas Derivative Assets and Liabilities table below. |
(3) | Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. |
CenterPoint Energy | ||||||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||
Balance Sheet Location | Carrying Amount of Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item | Carrying Amount of Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item | ||||||||||||||
(in millions) | ||||||||||||||||||
Hedged items in fair value hedge relationship: | ||||||||||||||||||
Natural gas inventory | Current Assets: Natural gas inventory | $ | 47 | $ | (13 | ) | $ | 57 | $ | 1 | ||||||||
Total CenterPoint Energy | $ | 47 | $ | (13 | ) | $ | 57 | $ | 1 |
CERC | ||||||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||
Balance Sheet Location | Carrying Amount of Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item | Carrying Amount of Hedged Assets/(Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item | ||||||||||||||
(in millions) | ||||||||||||||||||
Hedged items in fair value hedge relationship: | ||||||||||||||||||
Natural gas inventory | Current Assets: Natural gas inventory | $ | 47 | $ | (13 | ) | $ | 57 | $ | 1 | ||||||||
Total CERC | $ | 47 | $ | (13 | ) | $ | 57 | $ | 1 |
CenterPoint Energy | ||||||||||||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Gross Amounts Recognized (1) | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amount Presented in the Consolidated Balance Sheets (2) | Gross Amounts Recognized (1) | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amount Presented in the Consolidated Balance Sheets (2) | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Current Assets: Non-trading derivative assets | $ | 224 | $ | (88 | ) | $ | 136 | $ | 166 | $ | (66 | ) | $ | 100 | ||||||||||
Other Assets: Non-trading derivative assets | 68 | (10 | ) | 58 | 54 | (16 | ) | 38 | ||||||||||||||||
Current Liabilities: Non-trading derivative liabilities | (187 | ) | 136 | (51 | ) | (183 | ) | 81 | (102 | ) | ||||||||||||||
Other Liabilities: Non-trading derivative liabilities | (54 | ) | 25 | (29 | ) | (25 | ) | 20 | (5 | ) | ||||||||||||||
Total CenterPoint Energy | $ | 51 | $ | 63 | $ | 114 | $ | 12 | $ | 19 | $ | 31 |
CERC | ||||||||||||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Gross Amounts Recognized (1) | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amount Presented in the Consolidated Balance Sheets (2) | Gross Amounts Recognized (1) | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amount Presented in the Consolidated Balance Sheets (2) | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Current Assets: Non-trading derivative assets | $ | 224 | $ | (88 | ) | $ | 136 | $ | 166 | $ | (66 | ) | $ | 100 | ||||||||||
Other Assets: Non-trading derivative assets | 68 | (10 | ) | 58 | 54 | (16 | ) | 38 | ||||||||||||||||
Current Liabilities: Non-trading derivative liabilities | (180 | ) | 136 | (44 | ) | (183 | ) | 81 | (102 | ) | ||||||||||||||
Other Liabilities: Non-trading derivative liabilities | (39 | ) | 25 | (14 | ) | (25 | ) | 20 | (5 | ) | ||||||||||||||
Total CERC | $ | 73 | $ | 63 | $ | 136 | $ | 12 | $ | 19 | $ | 31 |
(1) | Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. |
(2) | The derivative assets and liabilities on the Registrant’s respective Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. |
CenterPoint Energy | Year Ended December 31, | ||||||||||
2019 | 2018 | 2017 | |||||||||
Location and Amount of Gain (Loss) recognized in Income on Hedging Relationship (1) | |||||||||||
Non-utility cost of revenues, including natural gas | |||||||||||
(in millions) | |||||||||||
Total amounts presented in the statements of income in which the effects of hedges are recorded | $ | 4,029 | $ | 4,364 | $ | 3,785 | |||||
Gain (loss) on fair value hedging relationships: | |||||||||||
Commodity contracts: | |||||||||||
Hedged items - Natural gas inventory | (14 | ) | (13 | ) | 14 | ||||||
Derivatives designated as hedging instruments | 14 | 13 | (14 | ) | |||||||
Amounts excluded from effectiveness testing recognized in earnings immediately | (213 | ) | (149 | ) | (67 | ) |
(1) | Income statement impact associated with cash flow hedge activity is related to gains and losses reclassified from Accumulated other comprehensive income into income. Amounts are immaterial for the years ended December 31, 2019, 2018 and 2017, respectively. |
CERC | Year Ended December 31, | ||||||||||
2019 | 2018 | 2017 | |||||||||
Location and Amount of Gain (Loss) recognized in Income on Hedging Relationship (1) | |||||||||||
Non-utility cost of revenues, including natural gas | |||||||||||
(in millions) | |||||||||||
Total amounts presented in the statements of income in which the effects of hedges are recorded | $ | 3,503 | $ | 4,364 | $ | 3,785 | |||||
Gain (loss) on fair value hedging relationships: | |||||||||||
Commodity contracts: | |||||||||||
Hedged items - Natural gas inventory | (14 | ) | (13 | ) | 14 | ||||||
Derivatives designated as hedging instruments | 14 | 13 | (14 | ) | |||||||
Amounts excluded from effectiveness testing recognized in earnings immediately | (213 | ) | (149 | ) | (67 | ) |
(1) | Income statement impact associated with cash flow hedge activity is related to gains and losses reclassified from Accumulated other comprehensive income into income. Amounts are immaterial for the years ended December 31, 2019, 2018 and 2017, respectively. |
Year Ended December 31, | ||||||||||||||
Income Statement Location | 2019 | 2018 | 2017 | |||||||||||
(in millions) | ||||||||||||||
Effects of derivatives not designated as hedging instruments on the income statement: | ||||||||||||||
Commodity contracts | Gains (Losses) in Non-utility revenues | $ | 214 | $ | 107 | $ | 211 | |||||||
Indexed debt securities derivative | Gain (loss) on indexed debt securities | (292 | ) | (232 | ) | 49 | ||||||||
Interest rate derivatives | Gains in Other Income (Expense) | — | 2 | — | ||||||||||
Total CenterPoint Energy | $ | (78 | ) | $ | (123 | ) | $ | 260 |
Year Ended December 31, | ||||||||||||||
Income Statement Location | 2019 | 2018 | 2017 | |||||||||||
(in millions) | ||||||||||||||
Effects of derivatives not designated as hedging instruments on the income statement: | ||||||||||||||
Commodity contracts | Gains (Losses) in Non-utility revenues | $ | 214 | $ | 107 | $ | 211 | |||||||
Total CERC | $ | 214 | $ | 107 | $ | 211 |
December 31, 2019 | December 31, 2018 | |||||||||||||||
CenterPoint Energy | CERC | CenterPoint Energy | CERC | |||||||||||||
(in millions) | ||||||||||||||||
Aggregate fair value of derivatives containing material adverse change provisions in a net liability position | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||
Fair value of collateral already posted | — | — | — | — | ||||||||||||
Additional collateral required to be posted if credit risk contingent features triggered | 1 | 1 | — | — |
December 31, 2019 | December 31, 2018 | ||||||||||||||
Investment Grade (1) | Total (3) | Investment Grade (1) | Total (3) | ||||||||||||
(in millions) | |||||||||||||||
Energy marketers | $ | 4 | $ | 16 | $ | 11 | $ | 24 | |||||||
End users (2) | 27 | 178 | 30 | 114 | |||||||||||
Total CenterPoint Energy | $ | 31 | $ | 194 | $ | 41 | $ | 138 |
December 31, 2019 | December 31, 2018 | ||||||||||||||
Investment Grade (1) | Total (3) | Investment Grade (1) | Total (3) | ||||||||||||
(in millions) | |||||||||||||||
Energy marketers | $ | 4 | $ | 16 | $ | 11 | $ | 24 | |||||||
End users (2) | 27 | 178 | 30 | 114 | |||||||||||
Total CERC | $ | 31 | $ | 194 | $ | 41 | $ | 138 |
(1) | “Investment grade” is primarily determined using publicly available credit ratings and considers credit support (including parent company guarantees) and collateral (including cash and standby letters of credit). For unrated counterparties, CERC determines a synthetic credit rating by performing financial statement analysis and consider contractual rights and restrictions and collateral. |
(2) | End users are comprised primarily of customers who have contracted to fix the price of a portion of their physical gas requirements for future periods. |
(3) | The amounts reflected in the table above were not impacted by collateral netting. |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting (1) | Total | Level 1 | Level 2 | Level 3 | Netting (1) | Total | ||||||||||||||||||||||||||||||
Assets | (in millions) | ||||||||||||||||||||||||||||||||||||||
Corporate equities | $ | 825 | $ | — | $ | — | $ | — | $ | 825 | $ | 542 | $ | — | $ | — | $ | — | $ | 542 | |||||||||||||||||||
Investments, including money market funds (2) | 49 | — | — | — | 49 | 66 | — | — | — | 66 | |||||||||||||||||||||||||||||
Natural gas derivatives (3)(4) | — | 250 | 42 | (98 | ) | 194 | — | 173 | 47 | (82 | ) | 138 | |||||||||||||||||||||||||||
Hedged portion of natural gas inventory | — | — | — | — | — | 1 | — | — | — | 1 | |||||||||||||||||||||||||||||
Total assets | $ | 874 | $ | 250 | $ | 42 | $ | (98 | ) | $ | 1,068 | $ | 609 | $ | 173 | $ | 47 | $ | (82 | ) | $ | 747 | |||||||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting (1) | Total | Level 1 | Level 2 | Level 3 | Netting (1) | Total | ||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||
Indexed debt securities derivative | $ | — | $ | 893 | $ | — | $ | — | $ | 893 | $ | — | $ | 601 | $ | — | $ | — | $ | 601 | |||||||||||||||||||
Interest rate derivatives | — | 10 | — | — | 10 | 24 | — | — | — | 24 | |||||||||||||||||||||||||||||
Natural gas derivatives (3)(4) | — | 217 | 24 | (161 | ) | 80 | — | 191 | 17 | (101 | ) | 107 | |||||||||||||||||||||||||||
Hedged portion of natural gas inventory | 13 | — | — | — | 13 | — | — | — | — | — | |||||||||||||||||||||||||||||
Total liabilities | $ | 13 | $ | 1,120 | $ | 24 | $ | (161 | ) | $ | 996 | $ | 24 | $ | 792 | $ | 17 | $ | (101 | ) | $ | 732 |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Total | Level 1 | Level 2 | Level 3 | Netting | Total | ||||||||||||||||||||||||||||||
Assets | (in millions) | ||||||||||||||||||||||||||||||||||||||
Investments, including money market funds (2) | $ | 32 | $ | — | $ | — | $ | — | $ | 32 | $ | 48 | $ | — | $ | — | $ | — | $ | 48 | |||||||||||||||||||
Total assets | $ | 32 | $ | — | $ | — | $ | — | $ | 32 | $ | 48 | $ | — | $ | — | $ | — | $ | 48 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||
Interest rate derivatives | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 24 | $ | — | $ | — | $ | — | $ | 24 | |||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 24 | $ | — | $ | — | $ | — | $ | 24 |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting (1) | Total | Level 1 | Level 2 | Level 3 | Netting (1) | Total | ||||||||||||||||||||||||||||||
Assets | (in millions) | ||||||||||||||||||||||||||||||||||||||
Corporate equities | $ | 2 | $ | — | $ | — | $ | — | $ | 2 | $ | 2 | $ | — | $ | — | $ | — | $ | 2 | |||||||||||||||||||
Investments, including money market funds (2) | 11 | — | — | — | 11 | 11 | — | — | — | 11 | |||||||||||||||||||||||||||||
Natural gas derivatives (3)(4) | — | 250 | 42 | (98 | ) | 194 | — | 173 | 47 | (82 | ) | 138 | |||||||||||||||||||||||||||
Hedged portion of natural gas inventory | — | — | — | — | — | 1 | — | — | — | 1 | |||||||||||||||||||||||||||||
Total assets | $ | 13 | $ | 250 | $ | 42 | $ | (98 | ) | $ | 207 | $ | 14 | $ | 173 | $ | 47 | $ | (82 | ) | $ | 152 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||
Natural gas derivatives (3)(4) | $ | — | $ | 195 | $ | 24 | $ | (161 | ) | $ | 58 | $ | — | $ | 191 | $ | 17 | $ | (101 | ) | $ | 107 | |||||||||||||||||
Hedged portion of natural gas inventory | 13 | — | — | — | 13 | — | — | — | — | — | |||||||||||||||||||||||||||||
Total liabilities | $ | 13 | $ | 195 | $ | 24 | $ | (161 | ) | $ | 71 | $ | — | $ | 191 | $ | 17 | $ | (101 | ) | $ | 107 |
(1) | Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy and CERC to settle positive and negative positions and also include cash collateral posted with the same counterparties as follows: |
December 31, 2019 | December 31, 2018 | ||||||||||||||
CenterPoint Energy | CERC | CenterPoint Energy | CERC | ||||||||||||
(in millions) | |||||||||||||||
Cash collateral posted with the same counterparties | $ | 63 | $ | 63 | $ | 19 | $ | 19 |
(2) | Amounts are included in Prepaid and Other Current Assets and Other Assets in the Consolidated Balance Sheets. |
(3) | Natural gas derivatives include no material amounts related to physical forward transactions with Enable. |
(4) | Level 1 natural gas derivatives include exchange-traded derivatives cleared by the CME, which deems that financial instruments cleared by the CME are settled daily in connection with posted cash payments. As a result of this exchange rule, CME-related derivatives are considered to have no fair value at the balance sheet date for financial reporting purposes, and are presented in Level 1 net of posted cash; however, the derivatives remain outstanding and subject to future commodity price fluctuations until they are settled in accordance with their contractual terms. Derivative transactions cleared on exchanges other than the CME (e.g., the Intercontinental Exchange or ICE) continue to be reported on a gross basis. |
Year Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||
CenterPoint Energy | CERC | CenterPoint Energy | CERC | CenterPoint Energy | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Beginning balance | $ | 30 | $ | 30 | $ | (622 | ) | $ | 46 | $ | (704 | ) | $ | 13 | |||||||||
Total gains | 17 | 17 | 30 | 30 | 96 | 47 | |||||||||||||||||
Total settlements | (22 | ) | (22 | ) | (39 | ) | (39 | ) | (11 | ) | (11 | ) | |||||||||||
Transfers into Level 3 | (1 | ) | (1 | ) | 5 | 5 | 14 | 14 | |||||||||||||||
Transfers out of Level 3 (1) | (6 | ) | (6 | ) | 656 | (12 | ) | (17 | ) | (17 | ) | ||||||||||||
Ending balance (2) | $ | 18 | $ | 18 | $ | 30 | $ | 30 | $ | (622 | ) | $ | 46 | ||||||||||
The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date: | |||||||||||||||||||||||
$ | 12 | $ | 12 | $ | 18 | $ | 18 | $ | 87 | $ | 38 |
(1) | During 2018, CenterPoint Energy transferred its indexed debt securities derivative from Level 3 to Level 2 to reflect changes in the significance of the unobservable inputs used in the valuation. |
(2) | CenterPoint Energy and CERC did not have significant Level 3 purchases or sales during any of the years ended December 31, 2019, 2018 or 2017. |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
CenterPoint Energy (1) | Houston Electric (1) | CERC | CenterPoint Energy (1) | Houston Electric (1) | CERC | ||||||||||||||||||
Long-term debt, including current maturities | (in millions) | ||||||||||||||||||||||
Carrying amount | $ | 15,093 | $ | 4,950 | $ | 2,546 | $ | 9,140 | $ | 4,717 | $ | 2,371 | |||||||||||
Fair value | 16,067 | 5,457 | 2,803 | 9,308 | 4,770 | 2,488 |
(1) | Includes Securitization Bond debt. |
December 31, 2016 | December 31, 2015 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Financial liabilities: | |||||||||||||||
Long-term debt, including current portion | $ | 4,865 | $ | 5,079 | $ | 4,859 | $ | 5,086 |
December 31, 2019 | December 31, 2018 | ||||||
(in millions) | |||||||
Enable | $ | 2,406 | $ | 2,482 | |||
Other (1) | 2 | — | |||||
Total | $ | 2,408 | $ | 2,482 |
(1) | Represents the fair value of non-utility equity investments acquired in the Merger. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Enable (1) | $ | 229 | $ | 307 | $ | 265 | |||||
Other | 1 | — | — | ||||||||
Total | $ | 230 | $ | 307 | $ | 265 |
(1) | Equity earnings for the year ended December 31, 2019 includes CenterPoint Energy’s share of Enable’s $86 million goodwill impairment recorded in the fourth quarter of 2019. |
As of December 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Limited Partner Interest (1) | Common Units | Enable Series A Preferred Units (2) | Limited Partner Interest (1) | Common Units | Enable Series A Preferred Units (2) | ||||||||||||
CenterPoint Energy (3) | 53.7 | % | 233,856,623 | 14,520,000 | 54.0 | % | 233,856,623 | 14,520,000 | |||||||||
OGE | 25.5 | % | 110,982,805 | — | 25.6 | % | 110,982,805 | — | |||||||||
Public unitholders | 20.8 | % | 90,361,937 | — | 20.4 | % | 88,392,983 | — | |||||||||
Total Units Outstanding | 100.0 | % | 435,201,365 | 14,520,000 | 100.0 | % | 433,232,411 | 14,520,000 |
(1) | Excludes the Enable Series A Preferred Units owned by CenterPoint Energy. |
(2) | The carrying amount of the Enable Series A Preferred Units, reflected as Preferred units - unconsolidated affiliate on CenterPoint Energy’s Consolidated Balance Sheets, was $363 million as of both December 31, 2019 and 2018. No |
(3) | Prior to the Internal Spin completed in September 2018, CenterPoint Energy’s investment in Enable’s common units, excluding the Enable Series A Preferred Units held directly by CenterPoint Energy, was held indirectly through CERC. |
Management Rights (1) | Incentive Distribution Rights (2) | ||||
CenterPoint Energy (3) | 50 | % | 40 | % | |
OGE | 50 | % | 60 | % |
(1) | As of December 31, 2019, Enable is controlled jointly by CenterPoint Energy and OGE. Sale of CenterPoint Energy’s or OGE’s ownership interests in Enable GP to a third party is subject to mutual rights of first offer and first refusal, and CenterPoint Energy is not permitted to dispose of less than all of its interest in Enable GP. |
(2) | Enable is expected to pay a minimum quarterly distribution of $0.2875 per common unit on its outstanding common units to the extent it has sufficient cash from operations after establishment of cash reserves and payment of fees and expenses, including payments to Enable GP and its affiliates, within 60 days after the end of each quarter. If cash distributions to Enable’s unitholders exceed $0.330625 per common unit in any quarter, Enable GP will receive increasing percentages or incentive distributions rights, up to 50%, of the cash Enable distributes in excess of that amount. In certain circumstances Enable GP will have the right to reset the minimum quarterly distribution and the target distribution levels at which the incentive distributions receive increasing percentages to higher levels based on Enable’s cash distributions at the time of the exercise of this reset election. To date, no incentive distributions have been made. |
(3) | Held indirectly through CNP Midstream. |
Year Ended December 31, | ||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||
Per Unit | Cash Distribution | Per Unit | Cash Distribution | Per Unit | Cash Distribution | |||||||||||||||||||
(in millions, except per unit amounts) | ||||||||||||||||||||||||
Enable common units (1) | $ | 1.2970 | $ | 303 | $ | 1.2720 | $ | 297 | $ | 1.2720 | $ | 297 | ||||||||||||
Enable Series A Preferred Units | 2.5000 | 36 | 2.5000 | 36 | 2.5000 | 36 | ||||||||||||||||||
Total CenterPoint Energy | $ | 339 | $ | 333 | $ | 333 |
Year Ended December 31, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
Per Unit | Cash Distribution | Per Unit | Cash Distribution | |||||||||||||
(in millions, except per unit amounts) | ||||||||||||||||
Enable common units (1) | $ | 0.9540 | $ | 223 | $ | 1.2720 | $ | 297 | ||||||||
Total CERC | 223 | 297 |
(1) | Prior to the Internal Spin completed in September 2018, distributions from Enable were received by CERC. After such date, distributions from Enable were received directly by CenterPoint Energy (through CNP Midstream). |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
CenterPoint Energy | (in millions) | |||||||||||
Natural gas expenses, including transportation and storage costs (1) | $ | 120 | $ | 122 | $ | 115 | ||||||
Reimbursement of support services (2) | — | 4 | 4 | |||||||||
CERC | ||||||||||||
Natural gas expenses, including transportation and storage costs (1) | 120 | 122 | 115 | |||||||||
Reimbursement of support services (2) | — | 4 | 4 |
(1) | Included in Non-utility costs of revenues, including natural gas on CenterPoint Energy’s and CERC’s respective Statements of Consolidated Income. |
(2) | Represents amounts billed for certain support services provided to Enable. Actual support services costs are recorded net of reimbursement. |
December 31, | ||||||||
2019 | 2018 | |||||||
CenterPoint Energy | (in millions) | |||||||
Accounts payable for natural gas purchases from Enable | $ | 11 | $ | 11 | ||||
Accounts receivable for amounts billed for services provided to Enable | 2 | 2 | ||||||
CERC | ||||||||
Accounts payable for natural gas purchases from Enable | 11 | 11 | ||||||
Accounts receivable for amounts billed for services provided to Enable | 2 | 2 |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(in millions) | ||||||||||||
Operating revenues | $ | 2,960 | $ | 3,431 | $ | 2,803 | ||||||
Cost of sales, excluding depreciation and amortization | 1,279 | 1,819 | 1,381 | |||||||||
Depreciation and amortization | 433 | 398 | 366 | |||||||||
Operating income | 569 | 648 | 528 | |||||||||
Goodwill impairment | 86 | — | — | |||||||||
Net income attributable to Enable common units | 360 | 485 | 400 | |||||||||
Reconciliation of Equity in Earnings (Losses), net: | ||||||||||||
CenterPoint Energy’s interest | $ | 193 | $ | 262 | $ | 216 | ||||||
Basis difference amortization (1) | 47 | 47 | 49 | |||||||||
Loss on dilution, net of proportional basis difference recognition | (11 | ) | (2 | ) | — | |||||||
CenterPoint Energy’s equity in earnings, net | $ | 229 | $ | 307 | $ | 265 |
(1) | Equity in earnings of unconsolidated affiliate includes CenterPoint Energy’s share of Enable earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference is being amortized through the year 2048. |
December 31, | ||||||||
2019 | 2018 | |||||||
(in millions) | ||||||||
Current assets | $ | 389 | $ | 449 | ||||
Non-current assets | 11,877 | 11,995 | ||||||
Current liabilities | 780 | 1,615 | ||||||
Non-current liabilities | 4,077 | 3,211 | ||||||
Non-controlling interest | 37 | 38 | ||||||
Preferred equity | 362 | 362 | ||||||
Accumulated other comprehensive loss | (3 | ) | — | |||||
Enable partners’ equity | 7,013 | 7,218 | ||||||
Reconciliation of Investment in Enable: | ||||||||
CenterPoint Energy’s ownership interest in Enable partners’ equity | $ | 3,767 | $ | 3,896 | ||||
CenterPoint Energy’s basis difference | (1,361 | ) | (1,414 | ) | ||||
CenterPoint Energy’s equity method investment in Enable | $ | 2,406 | $ | 2,482 |
Year Ended December 31, | ||||||||
2018 | 2017 | |||||||
(in millions) | ||||||||
Equity in earnings of unconsolidated affiliate, net | $ | 184 | $ | 265 | ||||
Income tax expense | 46 | 104 | ||||||
Income from discontinued operations, net of tax | $ | 138 | $ | 161 |
Shares Held at December 31, | ||||||
2019 | 2018 | |||||
AT&T Common | 10,212,945 | 10,212,945 | ||||
Charter Common | 872,503 | 872,912 |
December 31, | ||||||
2019 | 2018 | |||||
(in shares) | ||||||
AT&T Common | 0.7185 | 0.7185 | ||||
Charter Common | 0.061382 | 0.061382 |
ZENS-Related Securities | Debt Component of ZENS | Derivative Component of ZENS | |||||||||
(in millions) | |||||||||||
Balance as of December 31, 2016 | $ | 953 | $ | 114 | $ | 717 | |||||
Accretion of debt component of ZENS | — | 27 | — | ||||||||
2% interest paid | — | (17 | ) | — | |||||||
Distribution to ZENS holders | — | (2 | ) | — | |||||||
Gain on indexed debt securities | — | — | (49 | ) | |||||||
Gain on ZENS-Related Securities | 7 | — | — | ||||||||
Balance as of December 31, 2017 | 960 | 122 | 668 | ||||||||
Accretion of debt component of ZENS | — | 21 | — | ||||||||
2% interest paid | — | (17 | ) | — | |||||||
Sale of ZENS-Related Securities | (398 | ) | — | — | |||||||
Distribution to ZENS holders | — | (102 | ) | (46 | ) | ||||||
Gain on indexed debt securities | — | — | (21 | ) | |||||||
Loss on ZENS-Related Securities | (22 | ) | — | — | |||||||
Balance as of December 31, 2018 | 540 | 24 | 601 | ||||||||
Accretion of debt component of ZENS | — | 17 | — | ||||||||
2% interest paid | — | (17 | ) | — | |||||||
Distribution to ZENS holders | — | (5 | ) | — | |||||||
Loss on indexed debt securities | — | — | 292 | ||||||||
Gain on ZENS-Related Securities | 282 | — | — | ||||||||
Balance as of December 31, 2019 | $ | 822 | $ | 19 | $ | 893 |
Declaration Date | Record Date | Payment Date | Per Share | Total (in millions) | ||||||||
October 17, 2019 | November 21, 2019 | December 12, 2019 | $ | 0.2875 | $ | 144 | ||||||
July 31, 2019 | August 15, 2019 | September 12, 2019 | 0.2875 | 145 | ||||||||
April 25, 2019 | May 16, 2019 | June 13, 2019 | 0.2875 | 144 | ||||||||
Total 2019 | $ | 0.8625 | $ | 433 | ||||||||
December 12, 2018 | February 21, 2019 | March 14, 2019 | $ | 0.2875 | $ | 144 | ||||||
October 23, 2018 | November 15, 2018 | December 13, 2018 | 0.2775 | 139 | ||||||||
July 26, 2018 | August 16, 2018 | September 13, 2018 | 0.2775 | 120 | ||||||||
April 26, 2018 | May 17, 2018 | June 14, 2018 | 0.2775 | 120 | ||||||||
Total 2018 | $ | 1.1200 | $ | 523 | ||||||||
Declaration Date | Record Date | Payment Date | Per Share | Total (in millions) | ||||||||
December 13, 2017 | February 15, 2018 | March 8, 2018 | $ | 0.2775 | $ | 120 | ||||||
October 25, 2017 | November 16, 2017 | December 8, 2017 | 0.2675 | 116 | ||||||||
July 27, 2017 | August 16, 2017 | September 8, 2017 | 0.2675 | 115 | ||||||||
April 27, 2017 | May 16, 2017 | June 9, 2017 | 0.2675 | 115 | ||||||||
January 5, 2017 | February 16, 2017 | March 10, 2017 | 0.2675 | 115 | ||||||||
Total 2017 | $ | 1.3475 | $ | 581 |
Declaration Date | Record Date | Payment Date | Per Share | Total (in millions) | ||||||||
July 31, 2019 | August 15, 2019 | September 3, 2019 | $ | 30.6250 | $ | 24 | ||||||
Total 2019 | $ | 30.6250 | $ | 24 | ||||||||
December 12, 2018 | February 15, 2019 | March 1, 2019 | $ | 32.1563 | $ | 26 | ||||||
Total 2018 | $ | 32.1563 | $ | 26 |
Declaration Date | Record Date | Payment Date | Per Share | Total (in millions) | ||||||||
October 17, 2019 | November 15, 2019 | December 2, 2019 | $ | 17.5000 | $ | 17 | ||||||
July 31, 2019 | August 15, 2019 | September 3, 2019 | 17.5000 | 17 | ||||||||
April 25, 2019 | May 15, 2019 | June 3, 2019 | 17.5000 | 17 | ||||||||
Total 2019 | $ | 52.5000 | $ | 51 | ||||||||
December 12, 2018 | February 15, 2019 | March 1, 2019 | $ | 17.5000 | $ | 17 | ||||||
October 23, 2018 | November 15, 2018 | December 1, 2018 | 11.6667 | 11 | ||||||||
Total 2018 | $ | 29.1667 | $ | 28 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
Series A Preferred Stock | $ | 49 | $ | 18 | $ | — | |||||
Series B Preferred Stock | 68 | 17 | — | ||||||||
Total preferred stock dividend requirement | $ | 117 | $ | 35 | $ | — |
Applicable Market Value of the Common Stock | Conversion Rate per Share of Series B Preferred Stock | |
Greater than $32.6990 (threshold appreciation price) | 30.5820 shares of Common Stock | |
Equal to or less than $32.6990 but greater than or equal to $27.2494 | Between 30.5820 and 36.6980 shares of Common Stock, determined by dividing $1,000 by the applicable market value | |
Less than $27.2494 (initial price) | 36.6980 shares of Common Stock |
Applicable Market Value of the Common Stock | Conversion Rate per Depository Share | |
Greater than $32.6990 (threshold appreciation price) | 1.5291 shares of Common Stock | |
Equal to or less than $32.6990 but greater than or equal to $27.2494 | Between 1.5291 and 1.8349 shares of Common Stock, determined by dividing $50 by the applicable market value | |
Less than $27.2494 (initial price) | 1.8349 shares of Common Stock |
Year Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(in millions) | ||||||||||||
Corporate service charges | $ | 179 | $ | 176 | $ | 159 | ||||||
Charges from CERC for services provided | 7 | 6 | 5 | |||||||||
Billings to CERC for services provided | (15 | ) | (18 | ) | (17 | ) |
Year Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(in millions) | ||||||||||||
Affiliates of NRG | $ | 698 | $ | 741 | $ | 735 | ||||||
Affiliates of Energy Future Holdings | $ | 220 | $ | 220 | $ | 189 |
Year Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Beginning Balance | $ | (108 | ) | $ | (14 | ) | $ | 5 | $ | (68 | ) | $ | — | $ | 6 | ||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||
Remeasurement of pension and other postretirement plans | 7 | — | 7 | (19 | ) | — | 1 | ||||||||||||||||
Deferred loss from interest rate derivatives (1) | (3 | ) | (1 | ) | — | (19 | ) | (18 | ) | (1 | ) | ||||||||||||
Reclassified to earnings | 1 | — | — | — | — | — | |||||||||||||||||
Other comprehensive loss from unconsolidated affiliates | (1 | ) | — | — | — | — | — | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||||||||||
Prior service cost (2) | 1 | — | — | 1 | — | 1 | |||||||||||||||||
Actuarial losses (2) | 8 | — | — | 6 | — | — | |||||||||||||||||
Tax benefit (expense) | (3 | ) | — | (2 | ) | 6 | 4 | (1 | ) | ||||||||||||||
Net current period other comprehensive income (loss) | 10 | (1 | ) | 5 | (25 | ) | (14 | ) | — | ||||||||||||||
Adoption of ASU 2018-02 | — | — | — | (15 | ) | — | (1 | ) | |||||||||||||||
Ending Balance | $ | (98 | ) | $ | (15 | ) | $ | 10 | $ | (108 | ) | $ | (14 | ) | $ | 5 |
(1) | Gains and losses are reclassified from Accumulated other comprehensive income into income when the hedged transactions affect earnings. The reclassification amounts are included in Interest and other finance charges in each of the Registrant’s respective Statements of Consolidated Income. Amounts are $1 million and less than $1 million for the years ended December 31, 2019 and 2018, respectively. |
(2) | Amounts are included in the computation of net periodic cost and are reflected in Other, net in each of the Registrants’ respective Statements of Consolidated Income. |
December 31, 2016 | December 31, 2015 | ||||||||||||||
Long-Term | Current (1) | Long-Term (2) | Current (1) | ||||||||||||
(in millions) | |||||||||||||||
Long-term debt: | |||||||||||||||
Bank Loans | $ | — | $ | — | $ | 200 | $ | — | |||||||
First mortgage bonds 9.15% due 2021 | 102 | — | 102 | — | |||||||||||
General mortgage bonds 1.85% to 6.95% due 2021 to 2044 (3) | 2,512 | — | 1,912 | — | |||||||||||
System restoration bonds 3.46% to 4.243% due 2018 to 2022 | 312 | 53 | 365 | 50 | |||||||||||
Transition bonds 0.901% to 5.302% due 2017 to 2024 | 1,560 | 358 | 1,918 | 341 | |||||||||||
Unamortized debt issuance costs | (23 | ) | — | (21 | ) | — | |||||||||
Unamortized discount and premium, net | (9 | ) | — | (8 | ) | — | |||||||||
Total long-term debt | $ | 4,454 | $ | 411 | $ | 4,468 | $ | 391 |
December 31, 2019 | December 31, 2018 | ||||||||||||||
Long-Term | Current (1) | Long-Term | Current (1) | ||||||||||||
(in millions) | |||||||||||||||
CenterPoint Energy: | |||||||||||||||
ZENS due 2029 (2) | $ | — | $ | 19 | $ | — | $ | 24 | |||||||
Senior notes 2.50% to 7.08% due 2020 to 2049 (3) | 3,728 | 100 | 2,000 | — | |||||||||||
Variable rate term loans 2.275% to 2.56% due 2020 to 2021 | 1,000 | 500 | — | — | |||||||||||
First mortgage bonds 2.19% to 6.72% due 2022 to 2055 (4) | 293 | — | — | — | |||||||||||
Pollution control bonds 5.125% due 2028 (5) | 68 | — | 68 | — | |||||||||||
Commercial paper (6) (7) | 1,901 | — | — | — | |||||||||||
Unamortized debt issuance costs | (22 | ) | — | (13 | ) | — | |||||||||
Unamortized discount and premium, net | (7 | ) | — | (2 | ) | — | |||||||||
Houston Electric debt (see details below) | 4,719 | 231 | 4,258 | 458 | |||||||||||
CERC debt (see details below) | 2,546 | — | 2,371 | — | |||||||||||
Other debt | 18 | 18 | — | — | |||||||||||
Total CenterPoint Energy debt | $ | 14,244 | $ | 868 | $ | 8,682 | $ | 482 |
December 31, 2019 | December 31, 2018 | ||||||||||||||
Long-Term | Current (1) | Long-Term | Current (1) | ||||||||||||
(in millions) | |||||||||||||||
Houston Electric: | |||||||||||||||
First mortgage bonds 9.15% due 2021 | $ | 102 | $ | — | $ | 102 | $ | — | |||||||
General mortgage bonds 1.85% to 6.95% due 2021 to 2049 | 3,912 | — | 3,212 | — | |||||||||||
Restoration Bond Company: | |||||||||||||||
System restoration bonds 4.243% due 2022 | 134 | 62 | 197 | 59 | |||||||||||
Bond Company II: | |||||||||||||||
Transition bonds 5.302% due 2019 | — | — | — | 208 | |||||||||||
Bond Company III: | |||||||||||||||
Transition bonds 5.234% due 2020 | — | 29 | 29 | 56 | |||||||||||
Bond Company IV: | |||||||||||||||
Transition bonds 2.161% to 3.028% due 2020 to 2024 | 613 | 140 | 753 | 135 | |||||||||||
Unamortized debt issuance costs | (27 | ) | — | (24 | ) | — | |||||||||
Unamortized discount and premium, net | (15 | ) | — | (11 | ) | — | |||||||||
Total Houston Electric debt | $ | 4,719 | $ | 231 | $ | 4,258 | $ | 458 |
December 31, 2019 | December 31, 2018 | ||||||||||||||
Long-Term | Current (1) | Long-Term | Current (1) | ||||||||||||
(in millions) | |||||||||||||||
CERC (8): | |||||||||||||||
Senior notes 3.55% to 6.625% due 2021 to 2047 | $ | 2,193 | $ | — | $ | 2,193 | $ | — | |||||||
Commercial paper (6) | 377 | — | 210 | — | |||||||||||
Unamortized debt issuance costs | (13 | ) | — | (15 | ) | — | |||||||||
Unamortized discount and premium, net | (11 | ) | — | (17 | ) | — | |||||||||
Total CERC debt | $ | 2,546 | $ | — | $ | 2,371 | $ | — |
(1) | Includes amounts due or |
(2) |
(3) |
(4) | The first mortgage bonds issued by SIGECO subject SIGECO’s properties to a lien under the related mortgage indenture. |
(5) | $68 million and $68 million of these series of debt were secured by general mortgage bonds of Houston Electric as of December 31, 2019 and 2018, respectively. These general mortgage bonds are not reflected in Houston Electric’s consolidated financial statements because of the contingent nature of the |
(6) | Classified as long-term debt because the termination date of the facility that backstops the commercial paper is more than one year from the date noted. |
(7) | Commercial paper issued by VUHI has maturities up to 30 days. |
(8) | Issued by CERC Corp. |
Issuance Date | Aggregate Principal Amount | Interest Rate | Maturity Date | |||||
(in millions) | ||||||||
May 2016 | $ | 300 | 1.85% | 2021 | ||||
August 2016 | 300 | 2.40% | 2026 | |||||
January 2017 | 300 | 3.00% | 2027 |
Retirement Date | Debt Instrument | Aggregate Principal Amount | Interest Rate | Maturity Date | ||||||||
(in millions) | ||||||||||||
CenterPoint Energy | December 2019 | Guaranteed senior notes | $ | 3 | 3.33% | 2022 | ||||||
CenterPoint Energy | December 2019 | Guaranteed senior notes | 6 | 4.53% | 2025 |
Issuance Date | Debt Instrument | Aggregate Principal Amount | Interest Rate as of December 31, 2019 | Maturity Date | ||||||||
(in millions) | ||||||||||||
Houston Electric | January 2019 | General mortgage bonds | $ | 700 | 4.25% | 2049 | ||||||
CenterPoint Energy (1) | February 2019 | Variable rate term loan | 25 | 2.275% | 2020 | |||||||
CenterPoint Energy | May 2019 | Variable rate term loan | 1,000 | 2.56% | 2021 | |||||||
CenterPoint Energy | August 2019 | Unsecured senior notes | 500 | 2.50% | 2024 | |||||||
CenterPoint Energy | August 2019 | Unsecured senior notes | 400 | 2.95% | 2030 | |||||||
CenterPoint Energy | August 2019 | Unsecured senior notes | 300 | 3.70% | 2049 |
(1) | Draw down by VCC on its variable rate term loan. |
December 31, 2016 | December 31, 2015 | |||||||||||||||||||||
Size of Facility | Loans | Letters of Credit | Size of Facility | Loans (1) | Letters of Credit | |||||||||||||||||
(in millions) | ||||||||||||||||||||||
$ | 300 | $ | — | $ | 4 | $ | 300 | $ | 200 | $ | 4 |
Execution Date | Registrant | Size of Facility | Draw Rate of LIBOR plus (1) | Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio | Debt for Borrowed Money to Capital Ratio as of December 31, 2019 (2) | Termination Date | ||||||||
(in millions) | ||||||||||||||
March 3, 2016 | CenterPoint Energy | $ | 3,300 | 1.500% | 65% | (3) | 59.0% | March 3, 2022 | ||||||
July 14, 2017 | CenterPoint Energy (4) | 400 | 1.125% | 65% | 51.6% | July 14, 2022 | ||||||||
July 14, 2017 | CenterPoint Energy (5) | 200 | 1.250% | 65% | 58.0% | July 14, 2022 | ||||||||
March 3, 2016 | Houston Electric | 300 | 1.125% | 65% | (3) | 50.2% | March 3, 2022 | |||||||
March 3, 2016 | CERC | 900 | 1.250% | 65% | 46.4% | March 3, 2022 | ||||||||
Total | $ | 5,100 |
Execution Date | Size of Facility | Draw Rate of LIBOR plus (1) | Financial Covenant Limit on Debt to Capital Ratio (3) | Debt to Capital Ratio as of December 31, 2016 (2) | Termination Date | |||||||
(in millions) | ||||||||||||
March 3, 2016 | $ | 300 | 1.125% | 65% | 47.4% | March 3, 2021 |
(1) | Based on |
(2) | As defined in the revolving credit facility agreement, excluding Securitization Bonds. |
(3) |
(4) | This credit facility was issued by VUHI, is guaranteed by SIGECO, Indiana Gas and VEDO and includes a $10 million swing line sublimit and a $20 million letter of credit sublimit. This credit facility backstops VUHI’s commercial paper program. |
(5) | This credit facility was issued by VCC, is guaranteed by Vectren and includes a $40 million swing line sublimit and an$80 million letter of credit sublimit. |
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
Registrant | Loans | Letters of Credit | Commercial Paper | Weighted Average Interest Rate | Loans | Letters of Credit | Commercial Paper | Weighted Average Interest Rate | ||||||||||||||||||||||
(in millions, except weighted average interest rate) | ||||||||||||||||||||||||||||||
CenterPoint Energy (1) | $ | — | $ | 6 | $ | 1,633 | 1.95 | % | $ | — | $ | 6 | $ | — | — | % | ||||||||||||||
CenterPoint Energy (2) | — | — | 268 | 2.08 | % | — | — | — | — | % | ||||||||||||||||||||
CenterPoint Energy (3) | — | — | — | — | % | — | — | — | — | % | ||||||||||||||||||||
Houston Electric | — | — | — | — | % | — | 4 | — | — | % | ||||||||||||||||||||
CERC | — | 1 | 377 | 1.94 | % | — | 1 | 210 | 2.93 | % | ||||||||||||||||||||
Total | $ | — | $ | 7 | $ | 2,278 | $ | — | $ | 11 | $ | 210 |
(1) | CenterPoint Energy’s outstanding commercial paper generally has maturities of 60 days or less. |
(2) | This credit facility was issued by VUHI and is guaranteed by SIGECO, Indiana Gas and VEDO. |
(3) | This credit facility was issued by VCC and is guaranteed by Vectren. |
Registrant | Issuance Date | Debt Instrument | Aggregate Principal Amount | Weighted Average Interest Rate | ||||||
(in millions) | ||||||||||
CenterPoint Energy (1) (2) | January 2019 | Commercial paper | $ | 1,660 | 2.88% |
(1) | Proceeds from these commercial paper issuances were used to fund a portion of the Merger and to pay related fees and expenses and were contributed to Vectren for its payment of its stub period cash dividend, long-term incentive payments and to fund the repayment of indebtedness of Vectren subsidiaries redeemed at the option of the holder as a result of the closing of the Merger. |
(2) | The commercial paper notes were issued at various times in January 2019 with maturities up to and including 90 days as of the time of issuance, and, prior to their use as described in connection with the closing of the Merger, the net proceeds of such issuances were invested in short-term investments. |
Houston Electric | Securitization Bonds | ||||||
(in millions) | |||||||
2017 | $ | — | $ | 411 | |||
2018 | — | 434 | |||||
2019 | — | 458 | |||||
2020 | — | 231 | |||||
2021 | 402 | 211 |
CenterPoint Energy (1) | Houston Electric (1) | CERC | Securitization Bonds | ||||||||||||
(in millions) | |||||||||||||||
2020 | $ | 831 | $ | 231 | $ | — | $ | 231 | |||||||
2021 | 2,761 | 613 | 593 | 211 | |||||||||||
2022 | 3,302 | 519 | 376 | 219 | |||||||||||
2023 | 713 | 356 | 300 | 156 | |||||||||||
2024 | 1,184 | 162 | — | 162 |
(1) | These maturities include Securitization Bonds principal repayments on scheduled payment dates. |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
CenterPoint Energy | |||||||||||
Current income tax expense: | |||||||||||
Federal | $ | 48 | $ | 89 | $ | 32 | |||||
State | 21 | 9 | 9 | ||||||||
Total current expense | 69 | 98 | 41 | ||||||||
Deferred income tax expense (benefit): | |||||||||||
Federal | 74 | (25 | ) | (806 | ) | ||||||
State | (5 | ) | 73 | 36 | |||||||
Total deferred expense (benefit) | 69 | 48 | (770 | ) | |||||||
Total income tax expense (benefit) | $ | 138 | $ | 146 | $ | (729 | ) | ||||
Houston Electric | |||||||||||
Current income tax expense: | |||||||||||
Federal | $ | 84 | $ | 109 | $ | 70 | |||||
State | 20 | 18 | 19 | ||||||||
Total current expense | 104 | 127 | 89 | ||||||||
Deferred income tax benefit: | |||||||||||
Federal | (24 | ) | (38 | ) | (98 | ) | |||||
Total deferred benefit | (24 | ) | (38 | ) | (98 | ) | |||||
Total income tax expense (benefit) | $ | 80 | $ | 89 | $ | (9 | ) | ||||
CERC - Continuing Operations | |||||||||||
Current income tax expense (benefit): | |||||||||||
Federal | $ | — | $ | (9 | ) | $ | (31 | ) | |||
State | 7 | — | (10 | ) | |||||||
Total current expense (benefit) | 7 | (9 | ) | (41 | ) | ||||||
Deferred income tax expense (benefit): | |||||||||||
Federal | 39 | 10 | (249 | ) | |||||||
State | (32 | ) | 21 | 25 | |||||||
Total deferred expense (benefit) | 7 | 31 | (224 | ) | |||||||
Total income tax expense (benefit) | $ | 14 | $ | 22 | $ | (265 | ) | ||||
CERC - Discontinued Operations | |||||||||||
Current income tax expense (benefit): | |||||||||||
Federal | $ | — | $ | 9 | $ | 31 | |||||
State | — | 4 | 11 | ||||||||
Total current expense (benefit) | — | 13 | 42 | ||||||||
Deferred income tax expense: | |||||||||||
Federal | — | 29 | 56 | ||||||||
State | — | 4 | 6 | ||||||||
Total deferred expense | — | 33 | 62 | ||||||||
Total income tax expense | $ | — | $ | 46 | $ | 104 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(in millions) | |||||||||||
Current income tax expense: | |||||||||||
Federal | $ | 165 | $ | 106 | $ | 136 | |||||
State | 18 | 21 | 19 | ||||||||
Total current expense | 183 | 127 | 155 | ||||||||
Deferred income tax expense (benefit): | |||||||||||
Federal | (34 | ) | 18 | (24 | ) | ||||||
Total deferred expense (benefit) | (34 | ) | 18 | (24 | ) | ||||||
Total income tax expense | $ | 149 | $ | 145 | $ | 131 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||
CenterPoint Energy (1) (2) (3) | ||||||||||||||||||||||
Income before income taxes | $ | 425 | $ | 406 | $ | 383 | $ | 929 | $ | 514 | $ | 1,063 | ||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | 21 | % | 21 | % | 35 | % | ||||||||||
Expected federal income tax expense | 149 | 142 | 134 | 195 | 108 | 372 | ||||||||||||||||
Increase (decrease) in tax expense resulting from: | ||||||||||||||||||||||
State income tax expense, net of federal income tax | 12 | 14 | 12 | 36 | 22 | 26 | ||||||||||||||||
State valuation allowance, net of federal income tax | (4 | ) | 11 | 3 | ||||||||||||||||||
State law change, net of federal income tax | (21 | ) | 32 | — | ||||||||||||||||||
Federal income tax rate reduction | — | — | (1,113 | ) | ||||||||||||||||||
Excess deferred income tax amortization | (55 | ) | (24 | ) | — | |||||||||||||||||
Other, net | (12 | ) | (11 | ) | (15 | ) | (13 | ) | (3 | ) | (17 | ) | ||||||||||
Total | — | 3 | (3 | ) | (57 | ) | 38 | (1,101 | ) | |||||||||||||
Total income tax expense | $ | 149 | $ | 145 | $ | 131 | ||||||||||||||||
Total income tax expense (benefit) | $ | 138 | $ | 146 | $ | (729 | ) | |||||||||||||||
Effective tax rate | 35 | % | 36 | % | 34 | % | 15 | % | 28 | % | (69 | )% | ||||||||||
Houston Electric (4) (5) (6) | ||||||||||||||||||||||
Income before income taxes | $ | 436 | $ | 425 | $ | 424 | ||||||||||||||||
Federal statutory income tax rate | 21 | % | 21 | % | 35 | % | ||||||||||||||||
Expected federal income tax expense | 92 | 89 | 148 | |||||||||||||||||||
Increase (decrease) in tax expense resulting from: | ||||||||||||||||||||||
State income tax expense, net of federal income tax | 16 | 14 | 12 | |||||||||||||||||||
Federal income tax rate reduction | — | — | (158 | ) | ||||||||||||||||||
Excess deferred income tax amortization | (21 | ) | (9 | ) | — | |||||||||||||||||
Other, net | (7 | ) | (5 | ) | (11 | ) | ||||||||||||||||
Total | (12 | ) | — | (157 | ) | |||||||||||||||||
Total income tax expense (benefit) | $ | 80 | $ | 89 | $ | (9 | ) | |||||||||||||||
Effective tax rate | 18 | % | 21 | % | (2 | )% | ||||||||||||||||
CERC - Continuing Operations (7) (8) (9) | ||||||||||||||||||||||
Income before income taxes | $ | 226 | $ | 92 | $ | 319 | ||||||||||||||||
Federal statutory income tax rate | 21 | % | 21 | % | 35 | % | ||||||||||||||||
Expected federal income tax expense | 47 | 19 | 112 | |||||||||||||||||||
Increase (decrease) in tax expense resulting from: | ||||||||||||||||||||||
State income tax expense, net of federal income tax | (12 | ) | 5 | 6 | ||||||||||||||||||
State law change, net of federal income tax | (4 | ) | — | — | ||||||||||||||||||
State valuation allowance, net of federal income tax | (4 | ) | 11 | 3 | ||||||||||||||||||
Federal income tax rate reduction | — | — | (396 | ) | ||||||||||||||||||
Goodwill impairment | 8 | — | — | |||||||||||||||||||
Excess deferred income tax amortization | (18 | ) | (15 | ) | — | |||||||||||||||||
Tax basis balance sheet adjustment | — | — | 11 | |||||||||||||||||||
Other, net | (3 | ) | 2 | (1 | ) | |||||||||||||||||
Total | (33 | ) | 3 | (377 | ) | |||||||||||||||||
Total income tax expense (benefit) | $ | 14 | $ | 22 | $ | (265 | ) | |||||||||||||||
Effective tax rate | 6 | % | 24 | % | (83 | )% |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions) | |||||||||||
CERC - Discontinued Operations (9) | |||||||||||
Income before income taxes | $ | — | $ | 184 | $ | 265 | |||||
Federal statutory income tax rate | — | % | 21 | % | 35 | % | |||||
Expected federal income tax expense | — | 39 | 93 | ||||||||
Increase in tax expense resulting from: | |||||||||||
State income tax expense, net of federal income tax | — | 7 | 11 | ||||||||
Total | — | 7 | 11 | ||||||||
Total income tax expense | $ | — | $ | 46 | $ | 104 | |||||
Effective tax rate | — | % | 25 | % | 39 | % |
(1) | Recognized a $55 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $21 million net benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, and $4 million net benefit for the reduction in valuation allowances on certain state net operating losses that are now expected to be realized. |
(2) | Recognized a $32 million deferred tax expense due to state law changes that resulted in remeasurement of state deferred taxes in those jurisdictions. Also recorded an additional $11 million valuation allowance on certain state net operating loss deferred tax assets that are no longer expected to be utilized prior to expiration after the Internal Spin. These items are partially offset by $24 million of amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions beginning in 2018. |
(3) | Recognized a $1.1 billion deferred tax benefit from the remeasurement of CenterPoint Energy’s ADFIT liability as a result of the enactment of the TCJA on December 22, 2017, which reduced the U.S. corporate income tax rate from 35% to 21%. |
(4) | Recognized $21 million of amortization of the net regulatory EDIT liability as decreed by regulators. |
(5) | Recognized $9 million of amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions beginning in 2018. |
(6) | Recognized a $158 million deferred tax benefit from the remeasurement of Houston Electric’s ADFIT liability as a result of the enactment of the TCJA on December 22, 2017, which reduced the U.S. corporate income tax rate from 35% to 21%. |
(7) | Recognized $18 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, $4 million net benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions and $4 million net benefit for the reduction in valuation allowances on certain state net operating losses that are now expected to be realized. |
(8) | Recorded an additional $11 million valuation allowance on certain state net operating loss deferred tax assets that are no longer expected to be utilized prior to expiration after the Internal Spin. This item is partially offset by $15 million of amortization of the net regulatory EDIT liability in certain jurisdictions as decreed by regulators beginning in 2018. |
(9) | Recognized a $396 million deferred tax benefit from the remeasurement of CERC’s ADFIT liability as a result of the enactment of the TCJA on December 22, 2017, which reduced the U.S. corporate income tax rate from 35% to 21%. ASC 740 requires tax impacts of changes in tax laws or rates be reported in continuing operations. Therefore, CERC’s federal income tax benefit generated by the remeasurement of the ADFIT liability for Enable during 2017 and state law changes during 2016 associated with its investment in Enable are reported in continuing operations on CERC’s Statements of Consolidated Income. The ADFIT liability associated with CERC’s investment in Enable is reported as discontinued operations on CERC’s Consolidated Balance Sheets. |
December 31, | December 31, | |||||||||||||
2016 | 2015 | 2019 | 2018 | |||||||||||
(in millions) | (in millions) | |||||||||||||
CenterPoint Energy | ||||||||||||||
Deferred tax assets: | ||||||||||||||
Benefits and compensation | $ | 47 | $ | 69 | $ | 152 | $ | 160 | ||||||
Regulatory liabilities | 447 | 356 | ||||||||||||
Loss and credit carryforwards | — | 6 | 111 | 84 | ||||||||||
AROs | 12 | 13 | ||||||||||||
Asset retirement obligations | 89 | 62 | ||||||||||||
Indexed debt securities derivative | 34 | — | ||||||||||||
Other | 40 | 29 | ||||||||||||
Valuation allowance | (25 | ) | (18 | ) | ||||||||||
Total deferred tax assets | 848 | 673 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Property, plant and equipment | 2,656 | 1,894 | ||||||||||||
Investment in unconsolidated affiliates | 1,010 | 987 | ||||||||||||
Regulatory assets | 344 | 395 | ||||||||||||
Investment in marketable securities and indexed debt | 586 | 478 | ||||||||||||
Indexed debt securities derivative | — | 27 | ||||||||||||
Other | 180 | 131 | ||||||||||||
Total deferred tax liabilities | 4,776 | 3,912 | ||||||||||||
Net deferred tax liabilities | $ | 3,928 | $ | 3,239 | ||||||||||
Houston Electric | ||||||||||||||
Deferred tax assets: | ||||||||||||||
Regulatory liabilities | $ | 195 | $ | 205 | ||||||||||
Benefits and compensation | 14 | 17 | ||||||||||||
Asset retirement obligations | 9 | 7 | ||||||||||||
Other | 4 | 7 | 7 | 12 | ||||||||||
Total deferred tax assets | 63 | 95 | 225 | 241 | ||||||||||
Deferred tax liabilities: | ||||||||||||||
Property, plant, and equipment | 1,541 | 1,447 | ||||||||||||
Regulatory assets/liabilities, net | 525 | 680 | ||||||||||||
Property, plant and equipment | 1,129 | 1,087 | ||||||||||||
Regulatory assets | 126 | 177 | ||||||||||||
Total deferred tax liabilities | 2,066 | 2,127 | 1,255 | 1,264 | ||||||||||
Net deferred tax liabilities | $ | 2,003 | $ | 2,032 | $ | 1,030 | $ | 1,023 | ||||||
CERC - Continuing Operations | ||||||||||||||
Deferred tax assets: | ||||||||||||||
Benefits and compensation | $ | 24 | $ | 27 | ||||||||||
Regulatory liabilities | 144 | 150 | ||||||||||||
Loss and credit carryforwards | 183 | 259 | ||||||||||||
Asset retirement obligations | 80 | 54 | ||||||||||||
Other | 23 | 20 | ||||||||||||
Valuation allowance | (15 | ) | (18 | ) | ||||||||||
Total deferred tax assets | 439 | 492 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Property, plant and equipment | 821 | 773 | ||||||||||||
Regulatory assets | 45 | 41 | ||||||||||||
Other | 43 | 84 | ||||||||||||
Total deferred tax liabilities | 909 | 898 | ||||||||||||
Net deferred tax liabilities | $ | 470 | $ | 406 |
Year Ended December 31, 2019 | |||
(in millions) | |||
Balance, beginning of year | $ | — | |
Unrecognized tax benefits assumed through the Merger | 9 | ||
Decreases related to tax positions of prior years | (1 | ) | |
Balance, end of year | $ | 8 |
CenterPoint Energy | CERC | ||||||
(in millions) | |||||||
2020 | $ | 750 | $ | 533 | |||
2021 | 617 | 432 | |||||
2022 | 418 | 242 | |||||
2023 | 335 | 182 | |||||
2024 | 271 | 174 | |||||
2025 and beyond | 1,888 | 1,526 |
(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). 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 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. |
December 31, 2019 | |||||||
CenterPoint Energy | CERC | ||||||
(in millions, except years) | |||||||
Amount accrued for remediation | $ | 12 | $ | 7 | |||
Minimum estimated remediation costs | 7 | 4 | |||||
Maximum estimated remediation costs | 51 | 32 | |||||
Minimum years of remediation | 5 | 30 | |||||
Maximum years of remediation | 50 | 50 |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(in millions, except per share and share amounts) | |||||||||||
Numerator: | |||||||||||
Income available to common shareholders - basic (1) | $ | 674 | $ | 333 | $ | 1,792 | |||||
Add back: Series B Preferred Stock dividend (2) | — | — | — | ||||||||
Income available to common shareholders - diluted (1) | $ | 674 | $ | 333 | $ | 1,792 | |||||
Denominator: | |||||||||||
Weighted average common shares outstanding - basic | 502,050,000 | 448,829,000 | 430,964,000 | ||||||||
Plus: Incremental shares from assumed conversions: | |||||||||||
Restricted stock (3) | 3,107,000 | 3,636,000 | 3,344,000 | ||||||||
Series B Preferred Stock (2) | — | — | — | ||||||||
Weighted average common shares outstanding - diluted | 505,157,000 | 452,465,000 | 434,308,000 | ||||||||
Earnings per common share: | |||||||||||
Basic earnings per common share | $ | 1.34 | $ | 0.74 | $ | 4.16 | |||||
Diluted earnings per common share | $ | 1.33 | $ | 0.74 | $ | 4.13 |
(1) | Income available to common shareholders for the year ended December 31, 2019 includes net income from businesses acquired in the Merger of $190 million. See Note 4. Income available to common shareholders for the year ended December 31, 2017 includes a reduction in income tax expense of $1,113 million due to tax reform. See Note 15 for further discussion of the impacts of the TCJA. |
(2) | The potentially dilutive impact from Series B Preferred Stock applies the if-converted method in calculating diluted earnings per common share. Under this method, diluted earnings per common share is adjusted for the more dilutive effect of the Series B Preferred Stock as a result of either its accumulated dividend for the period in the numerator or the assumed-converted common share equivalent in the denominator. The computation of diluted earnings per common share outstanding for the year ended December 31, 2019 and December 31, 2018 excludes Series B Stock Dividends of $68 million and $17 million, respectively, and 34,354,000 and 8,885,000 potentially dilutive shares, respectively, because to include them would be anti-dilutive. However, these shares could be potentially dilutive in the future. |
(3) | The potentially dilutive impact from restricted stock awards applies the treasury stock method. Under this method, an increase in the average fair market value of Common Stock can result in a greater dilutive impact from these securities. |
Year Ended December 31, 2016 | Year Ended December 31, 2019 | |||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||
(in millions) | (in millions, except per share amounts) | |||||||||||||||||||||||||||||
CenterPoint Energy | ||||||||||||||||||||||||||||||
Revenues | $ | 3,531 | $ | 2,798 | $ | 2,742 | $ | 3,230 | ||||||||||||||||||||||
Operating income | 245 | 287 | 392 | 302 | ||||||||||||||||||||||||||
Income available to common shareholders | 140 | 165 | 241 | 128 | ||||||||||||||||||||||||||
Basic earnings per common share (1) | 0.28 | 0.33 | 0.48 | 0.25 | ||||||||||||||||||||||||||
Diluted earnings per common share (1) | 0.28 | 0.33 | 0.47 | 0.25 | ||||||||||||||||||||||||||
Houston Electric | ||||||||||||||||||||||||||||||
Revenues | $ | 656 | $ | 763 | $ | 909 | $ | 731 | 686 | 765 | 859 | 680 | ||||||||||||||||||
Operating income | 79 | 158 | 258 | 132 | 81 | 169 | 269 | 99 | ||||||||||||||||||||||
Net income | 17 | 71 | 136 | 52 | 27 | 100 | 185 | 44 | ||||||||||||||||||||||
CERC | ||||||||||||||||||||||||||||||
Revenues | 2,368 | 1,342 | 1,126 | 1,734 | ||||||||||||||||||||||||||
Operating income | 196 | 58 | 23 | 73 | ||||||||||||||||||||||||||
Net income (loss) | 138 | 28 | (7 | ) | 53 |
Year Ended December 31, 2015 | Year Ended December 31, 2018 | |||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||
(in millions) | (in millions, except per share amounts) | |||||||||||||||||||||||||||||
CenterPoint Energy | ||||||||||||||||||||||||||||||
Revenues | $ | 3,155 | $ | 2,186 | $ | 2,212 | $ | 3,036 | ||||||||||||||||||||||
Operating income | 251 | 187 | 226 | 167 | ||||||||||||||||||||||||||
Income (loss) available to common shareholders | 165 | (75 | ) | 153 | 90 | |||||||||||||||||||||||||
Basic earnings (loss) per common share (1) | 0.38 | (0.17 | ) | 0.35 | 0.18 | |||||||||||||||||||||||||
Diluted earnings (loss) per common share (1) | 0.38 | (0.17 | ) | 0.35 | 0.18 | |||||||||||||||||||||||||
Houston Electric | ||||||||||||||||||||||||||||||
Revenues | $ | 617 | $ | 705 | $ | 827 | $ | 697 | 755 | 854 | 897 | 728 | ||||||||||||||||||
Operating income | 101 | 158 | 244 | 105 | 119 | 181 | 227 | 98 | ||||||||||||||||||||||
Net income | 31 | 69 | 124 | 37 | 52 | 101 | 143 | 40 | ||||||||||||||||||||||
CERC (2) | ||||||||||||||||||||||||||||||
Revenues | 2,400 | 1,328 | 1,312 | 2,303 | ||||||||||||||||||||||||||
Operating income (loss) | 131 | 22 | (7 | ) | 76 | |||||||||||||||||||||||||
Income (loss) from continuing operations | 78 | (8 | ) | (35 | ) | 35 | ||||||||||||||||||||||||
Income (loss) from discontinued operations | 52 | 44 | 44 | (2 | ) | |||||||||||||||||||||||||
Net income | 130 | 36 | 9 | 33 |
(1) | Quarterly earnings (loss) per common share are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal annual earnings (loss) per common share. |
(2) | Amounts have been recast to reflect discontinued operations in all periods presented. |
Registrants | Houston Electric T&D | Indiana Electric Integrated | Natural Gas Distribution | Energy Services | Infrastructure Services | Midstream Investments | Corporate and Other | |||||||
CenterPoint Energy | X | X | X | X | X | X | X | |||||||
Houston Electric | X | |||||||||||||
CERC | X | X | X |
Revenues from External Customers | Net Intersegment Revenues | Depreciation and Amortization | Operating Income (Loss) | Total Assets | Expenditures for Long-Lived Assets | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
As of and for the year ended December 31, 2019: | |||||||||||||||||||||||
Houston Electric T&D | $ | 2,996 | (1) | $ | — | $ | 648 | $ | 624 | $ | 11,264 | $ | 1,033 | ||||||||||
Indiana Electric Integrated | 523 | — | 91 | 90 | 3,168 | 183 | |||||||||||||||||
Natural Gas Distribution | 3,643 | 40 | 417 | 408 | 13,903 | 1,098 | |||||||||||||||||
Energy Services | 3,653 | 129 | 16 | 32 | 1,301 | 12 | |||||||||||||||||
Infrastructure Services | 1,186 | (2) | 4 | 50 | 95 | 1,077 | 67 | ||||||||||||||||
Midstream Investments (3) | — | — | — | — | 2,473 | — | |||||||||||||||||
Corporate and Other | 300 | — | 65 | (23 | ) | 4,784 | (4) | 194 | |||||||||||||||
Eliminations | — | (173 | ) | — | — | (2,531 | ) | — | |||||||||||||||
Consolidated | $ | 12,301 | $ | — | $ | 1,287 | $ | 1,226 | $ | 35,439 | $ | 2,587 | |||||||||||
Reconciling items | (81 | ) | |||||||||||||||||||||
Capital expenditures per Statements of Consolidated Cash Flows | $ | 2,506 | |||||||||||||||||||||
As of and for the year ended December 31, 2018: | |||||||||||||||||||||||
Houston Electric T&D | $ | 3,232 | (1) | $ | — | $ | 917 | $ | 623 | $ | 10,509 | $ | 952 | ||||||||||
Natural Gas Distribution | 2,931 | 36 | 277 | 266 | 6,956 | 638 | |||||||||||||||||
Energy Services | 4,411 | 110 | 16 | (47 | ) | 1,558 | 20 | ||||||||||||||||
Midstream Investments (3) | — | — | — | — | 2,482 | — | |||||||||||||||||
Corporate and Other | 15 | — | 33 | (11 | ) | 6,156 | (4) | 110 | |||||||||||||||
Eliminations | — | (146 | ) | — | — | (652 | ) | — | |||||||||||||||
Consolidated | $ | 10,589 | $ | — | $ | 1,243 | $ | 831 | $ | 27,009 | $ | 1,720 | |||||||||||
Reconciling items | (69 | ) | |||||||||||||||||||||
Capital expenditures per Statements of Consolidated Cash Flows | $ | 1,651 | |||||||||||||||||||||
As of and for the year ended December 31, 2017: | |||||||||||||||||||||||
Houston Electric T&D | $ | 2,997 | (1) | $ | — | $ | 724 | $ | 636 | $ | 10,292 | $ | 924 | ||||||||||
Natural Gas Distribution | 2,606 | 33 | 260 | 348 | 6,608 | 523 | |||||||||||||||||
Energy Services | 3,997 | 52 | 19 | 126 | 1,521 | 11 | |||||||||||||||||
Midstream Investments (3) | — | — | — | — | 2,472 | — | |||||||||||||||||
Corporate and Other | 14 | — | 33 | 26 | 2,497 | (4) | 36 | ||||||||||||||||
Eliminations | — | (85 | ) | — | — | (654 | ) | — | |||||||||||||||
Consolidated | $ | 9,614 | $ | — | $ | 1,036 | $ | 1,136 | $ | 22,736 | $ | 1,494 | |||||||||||
Reconciling items | (68 | ) | |||||||||||||||||||||
Capital expenditures per Statements of Consolidated Cash Flows | $ | 1,426 |
(1) | CenterPoint Energy’s Houston Electric T&D’s revenues from major customers are as follows: |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(in millions) | ||||||||||||
Affiliates of NRG | $ | 727 | $ | 705 | $ | 713 | ||||||
Affiliates of Vistra Energy Corp. | 263 | 251 | 229 |
(2) | Includes revenues not eliminated in consolidation for pipeline construction and repair services of $162 million capitalized by CenterPoint Energy’s NGD for the 11 months ended December 31, 2019. See Note 2(b). |
(3) | CenterPoint Energy’s Midstream Investments’ equity earnings, net are as follows: |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2016 | ||||||||||
(in millions) | ||||||||||||
Enable | $ | 229 | $ | 307 | $ | 265 |
(4) | Total assets included pension and other postemployment-related regulatory assets of $584 million, $665 million and $600 million as of December 31, 2019, 2018 and 2017, respectively. Additionally, total assets as of December 31, 2018 included $3.9 billion of temporary investments included in Cash and cash equivalents on CenterPoint Energy’s Consolidated Balance Sheets. |
(1) | Houston Electric’s revenues from major external customers are as follows: |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(in millions) | ||||||||||||
Affiliates of NRG | $ | 727 | $ | 705 | $ | 713 | ||||||
Affiliates of Vistra Energy Corp. | 263 | 251 | 229 |
Revenues from External Customers | Net Intersegment Revenues | Depreciation and Amortization | Operating Income (Loss) | Total Assets (1) | Expenditures for Long-Lived Assets | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
As of and for the year ended December 31, 2019: | |||||||||||||||||||||||
Natural Gas Distribution | $ | 2,911 | $ | 40 | $ | 289 | $ | 316 | $ | 7,497 | $ | 773 | |||||||||||
Energy Services | 3,654 | 128 | 16 | 32 | 1,301 | 12 | |||||||||||||||||
Other Operations | 5 | — | — | 2 | 149 | — | |||||||||||||||||
Eliminations | — | (168 | ) | — | — | (508 | ) | — | |||||||||||||||
Consolidated | $ | 6,570 | $ | — | $ | 305 | $ | 350 | $ | 8,439 | $ | 785 | |||||||||||
Reconciling items | (9 | ) | |||||||||||||||||||||
Capital expenditures per Statements of Consolidated Cash Flows | $ | 776 | |||||||||||||||||||||
As of and for the year ended December 31, 2018: | |||||||||||||||||||||||
Natural Gas Distribution | $ | 2,931 | $ | 36 | $ | 277 | $ | 266 | $ | 6,956 | $ | 638 | |||||||||||
Energy Services | 4,411 | 110 | 16 | (47 | ) | 1,558 | 20 | ||||||||||||||||
Other Operations | 1 | — | — | 3 | 66 | — | |||||||||||||||||
Eliminations | — | (146 | ) | — | — | (366 | ) | — | |||||||||||||||
Consolidated | $ | 7,343 | $ | — | $ | 293 | $ | 222 | $ | 8,214 | $ | 658 | |||||||||||
Reconciling items | (25 | ) | |||||||||||||||||||||
Capital expenditures per Statements of Consolidated Cash Flows | $ | 633 | |||||||||||||||||||||
Revenues from External Customers | Net Intersegment Revenues | Depreciation and Amortization | Operating Income (Loss) | Total Assets (1) | Expenditures for Long-Lived Assets | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
As of and for the year ended December 31, 2017: | |||||||||||||||||||||||
Natural Gas Distribution | $ | 2,606 | $ | 33 | $ | 260 | $ | 348 | $ | 6,608 | $ | 523 | |||||||||||
Energy Services | 3,997 | 52 | 19 | 126 | 1,521 | 11 | |||||||||||||||||
Discontinued operations | — | — | — | — | 2,472 | (1) | — | ||||||||||||||||
Other Operations | — | — | — | (7 | ) | 70 | — | ||||||||||||||||
Eliminations | — | (85 | ) | — | — | (559 | ) | — | |||||||||||||||
Consolidated | $ | 6,603 | $ | — | $ | 279 | $ | 467 | $ | 10,112 | $ | 534 | |||||||||||
Reconciling items | (21 | ) | |||||||||||||||||||||
Capital expenditures per Statements of Consolidated Cash Flows | $ | 513 |
(1) | On September 4, 2018, CERC completed the Internal Spin. For further information regarding the Internal Spin, see Note 11. |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||
Revenues by Products and Services: | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Electric delivery | $ | 3,019 | $ | 2,990 | $ | — | $ | 3,232 | $ | 3,234 | $ | — | $ | 2,997 | $ | 2,998 | $ | — | ||||||||||||||||||
Retail electric sales | 486 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Wholesale electric sales | 14 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Retail gas sales | 4,802 | — | 4,070 | 4,161 | — | 4,161 | 3,634 | — | 3,634 | |||||||||||||||||||||||||||
Wholesale gas sales | 2,312 | — | 2,313 | 3,008 | — | 3,008 | 2,811 | — | 2,811 | |||||||||||||||||||||||||||
Gas transportation and processing | 33 | — | 33 | 32 | — | 32 | 29 | — | 29 | |||||||||||||||||||||||||||
Infrastructure services | 1,186 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Energy products and services | 449 | — | 154 | 156 | — | 142 | 143 | — | 129 | |||||||||||||||||||||||||||
Total | $ | 12,301 | $ | 2,990 | $ | 6,570 | $ | 10,589 | $ | 3,234 | $ | 7,343 | $ | 9,614 | $ | 2,998 | $ | 6,603 |
2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Cash Payments/Receipts: | |||||||||||||||||||||||||||||||||||
Interest, net of capitalized interest | $ | 436 | $ | 229 | $ | 109 | $ | 363 | $ | 200 | $ | 105 | $ | 378 | $ | 205 | $ | 116 | |||||||||||||||||
Income taxes (refunds), net | 155 | 87 | 7 | 89 | 154 | 3 | 15 | 76 | 4 | ||||||||||||||||||||||||||
Non-cash transactions: | |||||||||||||||||||||||||||||||||||
Accounts payable related to capital expenditures | 236 | 117 | 86 | 201 | 124 | 80 | 144 | 104 | 56 | ||||||||||||||||||||||||||
Capital distribution associated with the Internal Spin (1) | — | — | 28 | — | — | 1,473 | — | — | — | ||||||||||||||||||||||||||
ROU assets obtained in exchange for lease liabilities (2) | 44 | 1 | 29 | — | — | — | — | — | — |
(1) | The capital distribution in 2019 associated with the Internal Spin is a result of the return to accrual for the periods of CERC’s ownership during 2018. |
(2) | Includes the transition impact of adoption of ASU 2016-02 Leases as of January 1, 2019. The Registrants elected not to recast comparative periods in the year of adoption as permitted by the standard. |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Cash and cash equivalents (1) (2) | $ | 241 | $ | 216 | $ | 2 | $ | 4,231 | $ | 335 | $ | 14 | |||||||||||
Restricted cash included in Prepaid expenses and other current assets | 30 | 19 | — | 46 | 34 | 11 | |||||||||||||||||
Restricted cash included in Other | — | — | — | 1 | 1 | — | |||||||||||||||||
Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows | $ | 271 | $ | 235 | $ | 2 | $ | 4,278 | $ | 370 | $ | 25 |
(1) | CenterPoint Energy’s Cash and cash equivalents as of December 31, 2018 included $3.9 billion of temporary investments resulting from the Merger financings. CenterPoint Energy recorded interest income of $22 million, $28 million and $2 million for the years ended December 31, 2019, 2018 and 2017, respectively, in Other, net on CenterPoint Energy’s Statements of Consolidated Income. See Notes 13 and 14 for further details related to the Merger financings. |
(2) | Houston Electric’s Cash and cash equivalents as of December 31, 2019 and 2018 included $216 million and $335 million, respectively, of cash related to the Bond Companies. Houston Electric recorded interest income of $9 million, $4 million and $2 million for the years ended December 31, 2019, 2018 and 2017, respectively, in Other, net on Houston Electric’s Statement of Consolidated Income. |
December 31, 2019 | December 31, 2018 | ||||||||||||||
Houston Electric | CERC | Houston Electric | CERC | ||||||||||||
(in millions) | |||||||||||||||
Money pool investments (borrowings) (1) | $ | 481 | $ | — | $ | (1 | ) | $ | 114 | ||||||
Weighted average interest rate | 1.98 | % | 1.98 | % | 2.42 | % | 2.42 | % |
(1) | Included in Accounts and notes receivable (payable)–affiliated companies in Houston Electric’s and CERC’s Consolidated Balance Sheets. |
Year Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||
Houston Electric | CERC | Houston Electric | CERC | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Interest income (expense), net (1) | $ | 18 | $ | 4 | $ | 1 | $ | — | $ | 2 | $ | — |
(1) | Interest income is included in Other, net and interest expense is included in Interest and other finance charges on Houston Electric’s and CERC’s respective Statements of Consolidated Income. |
Year Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||
Houston Electric | CERC | Houston Electric | CERC | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Corporate service charges | $ | 177 | $ | 141 | $ | 190 | $ | 147 | $ | 188 | $ | 128 | |||||||||||
Net affiliate service charges (billings) | (8 | ) | 8 | (17 | ) | 17 | (9 | ) | 9 | ||||||||||||||
Pipeline construction and repair service charges (1) | — | 4 | — | — | — | — | |||||||||||||||||
Natural gas sales (2) | — | 1 | — | — | — | — |
(1) | Represents charges from Infrastructure Services to CERC’s NGD for the period February 1, 2019 through December 31, 2019. |
(2) | Represents sales to Indiana Electric from CES for the period February 1, 2019 through December 31, 2019. |
Year Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||||||||
Houston Electric | CERC | Houston Electric | CERC | Houston Electric | CERC | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Cash dividends paid to parent | $ | 376 | $ | 120 | $ | 209 | $ | 360 | $ | 180 | $ | 601 | |||||||||||
Cash contribution from parent | 590 | 129 | 200 | 960 | — | 38 | |||||||||||||||||
Capital distribution to parent associated with the Internal Spin (1) | — | 28 | — | 1,473 | — | — |
(1) | The capital distribution in 2019 associated with the Internal Spin is a result of the return to accrual for the periods of CERC’s ownership during 2018. |
Year Ended December 31, 2019 | |||||||||||
CenterPoint Energy | Houston Electric | CERC | |||||||||
(in millions) | |||||||||||
Operating lease cost | $ | 25 | $ | — | $ | 5 | |||||
Short-term lease cost | 75 | 23 | — | ||||||||
Variable lease cost | 1 | — | 1 | ||||||||
Total lease cost | $ | 101 | $ | 23 | $ | 6 |
Year Ended December 31, 2019 | |||||||||||
CenterPoint Energy | Houston Electric | CERC | |||||||||
(in millions) | |||||||||||
Operating lease income | $ | 4 | $ | 2 | $ | 1 | |||||
Variable lease income | 2 | — | — | ||||||||
Total lease income | $ | 6 | $ | 2 | $ | 1 |
December 31, 2019 | |||||||||||
CenterPoint Energy | Houston Electric | CERC | |||||||||
(in millions, except lease term and discount rate) | |||||||||||
Assets: | |||||||||||
Operating ROU assets (1) | $ | 63 | $ | 1 | $ | 24 | |||||
Total leased assets | $ | 63 | $ | 1 | $ | 24 | |||||
Liabilities: | |||||||||||
Current operating lease liability (2) | $ | 21 | $ | — | $ | 4 | |||||
Non-current operating lease liability (3) | 42 | 1 | 20 | ||||||||
Total leased liabilities | $ | 63 | $ | 1 | $ | 24 | |||||
Weighted-average remaining lease term (in years) - operating leases | 5.1 | 5.2 | 7.7 | ||||||||
Weighted-average discount rate - operating leases | 3.42 | % | 3.52 | % | 3.67 | % |
(1) | Reported within Other assets in the Registrants’ respective Consolidated Balance Sheets. |
(2) | Reported within Current other liabilities in the Registrants’ respective Consolidated Balance Sheets. |
(3) | Reported within Other liabilities in the Registrants’ respective Consolidated Balance Sheets. |
CenterPoint Energy | Houston Electric | CERC | |||||||||
(in millions) | |||||||||||
2020 | $ | 22 | $ | 1 | $ | 6 | |||||
2021 | 16 | — | 4 | ||||||||
2022 | 9 | — | 4 | ||||||||
2023 | 7 | — | 3 | ||||||||
2024 | 3 | — | 2 | ||||||||
2025 and beyond | 12 | — | 9 | ||||||||
Total lease payments | 69 | 1 | 28 | ||||||||
Less: Interest | 6 | — | 4 | ||||||||
Present value of lease liabilities | $ | 63 | $ | 1 | $ | 24 |
CenterPoint Energy | Houston Electric | CERC | |||||||||
(in millions) | |||||||||||
2019 | $ | 6 | $ | 1 | $ | 5 | |||||
2020 | 6 | — | 5 | ||||||||
2021 | 5 | — | 4 | ||||||||
2022 | 4 | — | 4 | ||||||||
2023 | 3 | — | 3 | ||||||||
2024 and beyond | 12 | — | 11 | ||||||||
Total (1) | $ | 36 | $ | 1 | $ | 32 |
(1) | The Merger was completed on February 1, 2019. As such, these amounts are exclusive of Vectren’s leases. |
CenterPoint Energy | Houston Electric | CERC | |||||||||
(in millions) | |||||||||||
2020 | $ | 3 | $ | 1 | $ | 1 | |||||
2021 | 2 | — | — | ||||||||
2022 | 2 | — | — | ||||||||
2023 | 2 | — | — | ||||||||
2024 | 2 | — | — | ||||||||
2025 and beyond | 10 | — | — | ||||||||
Total lease payments to be received | $ | 21 | $ | 1 | $ | 1 |
Year Ended December 31, 2019 | |||||||||||
CenterPoint Energy | Houston Electric | CERC | |||||||||
(in millions) | |||||||||||
Operating cash flows from operating leases included in the measurement of lease liabilities | $ | 25 | $ | 1 | $ | 6 |
Equity Instrument | Declaration Date | Record Date | Payment Date | Per Share | ||||||
Common Stock | February 3, 2020 | February 20, 2020 | March 12, 2020 | $ | 0.2900 | |||||
Series A Preferred Stock | February 3, 2020 | February 14, 2020 | March 2, 2020 | 30.6250 | ||||||
Series B Preferred Stock | February 3, 2020 | February 14, 2020 | March 2, 2020 | 17.5000 |
Equity Instrument | Declaration Date | Record Date | Payment Date | Per Unit Distribution | Expected Cash Distribution | |||||||||
(in millions) | ||||||||||||||
Enable common units | February 7, 2020 | February 18, 2020 | February 25, 2020 | $ | 0.3305 | $ | 77 | |||||||
Enable Series A Preferred Units | February 7, 2020 | February 7, 2020 | February 14, 2020 | 0.6250 | 9 |
Item 9. | Changes in and Disagreements with Accountants on Accounting andFinancial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and ManagementandRelated Stockholder Matters |
Item 13. | Certain Relationships and Related Transactions, and DirectorIndependence |
Item 14. | Principal Accounting Fees and Services |
Year Ended December 31, | ||||||||||||||||||||||
Year Ended December 31, | 2019 | 2018 | ||||||||||||||||||||
2016 | 2015 | Houston Electric | CERC | Houston Electric | CERC | |||||||||||||||||
Audit fees (1) | $ | 735,280 | $ | 743,470 | $ | 884,400 | $ | 1,419,000 | $ | 859,950 | $ | 1,360,800 | ||||||||||
Audit-related fees (2) | 598,000 | 524,000 | 371,500 | 130,500 | 529,000 | 121,000 | ||||||||||||||||
Total audit and audit-related fees | 1,333,280 | 1,267,470 | 1,255,900 | 1,549,500 | 1,388,950 | 1,481,800 | ||||||||||||||||
Tax fees | — | — | — | — | — | — | ||||||||||||||||
All other fees | — | — | — | — | — | — | ||||||||||||||||
Total fees | $ | 1,333,280 | $ | 1,267,470 | $ | 1,255,900 | $ | 1,549,500 | $ | 1,388,950 | $ | 1,481,800 |
(1) | For |
(2) | For |
Item 15. | Exhibits and Financial Statement Schedules |
2019 | |
Statements of Consolidated Comprehensive Income for the Three Years Ended December 31, | |
Consolidated Balance Sheets as of December 31, | |
2019 | |
2019 | |
Houston Electric | |
Statements of Consolidated Income for the Three Years Ended December 31, | |
Statements of Consolidated Comprehensive Income for the Three Years Ended December 31, 2019 | |
Consolidated Balance Sheets as of December 31, 2019 and 2018 | |
Statements of Consolidated Cash Flows for the Three Years Ended December 31, 2019 | |
Statements of Consolidated Changes in Equity for the Three Years Ended December 31, 2019 | |
CERC | |
Report of Independent Registered Public Accounting Firm | |
Statements of Consolidated Income for the Three Years Ended December 31, 2019 | |
Statements of Consolidated Comprehensive Income for the Three Years Ended December 31, 2019 | |
Consolidated Balance Sheets as of December 31, 2019 and 2018 | |
Statements of Consolidated Cash Flows for the Three Years Ended December 31, 2019 | |
Statements of Consolidated Changes in Equity for the Three Years Ended December 31, 2019 | |
Combined Notes to Consolidated Financial Statements |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
2(a) | — | CenterPoint Energy’s Form 8-K dated July 21, 2004 | 1-31447 | 10.1 | X | |||||||||
2(b) | — | CenterPoint Energy’s Form 8-K dated April 21, 2018 | 1-31447 | 2.1 | X | |||||||||
2(c)(1) | — | Agreement and Plan of Merger among CERC, Houston Lighting and Power Company (“HL&P”), HI Merger, Inc. and NorAm Energy Corp. (“NorAm”) dated August 11, 1996 | Houston Industries’ (“HI’s”) Form 8-K dated August 11, 1996 | 1-7629 | 2 | X | ||||||||
2(c)(2) | — | Amendment to Agreement and Plan of Merger among CERC, HL&P, HI Merger, Inc. and NorAm dated August 11, 1996 | Registration Statement on Form S-4 | 333-11329 | 2(c) | X | ||||||||
2(d) | — | Agreement and Plan of Merger dated December 29, 2000 merging Reliant Resources Merger Sub, Inc. with and into Reliant Energy Services, Inc. | Registration Statement on Form S-3 | 333-54526 | 2 | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
2(e) | — | CenterPoint Energy’s Form 8-K dated March 14, 2013 | 1-31447 | 2.1 | X | X | ||||||||
2(f) | — | CenterPoint Energy’s Form 8-K dated February 3, 2020 | 1-31447 | 2.1 | X | |||||||||
2(g) | — | CenterPoint Energy’s Form 8-K dated February 24, 2020 | 1-31447 | 2.1 | X | X | ||||||||
3(a) | — | CenterPoint Energy’s Form 8-K dated July 24, 2008 | 1-31447 | 3.2 | X | |||||||||
3(b) | — | Houston Electric’s Form 8-K dated August 31, | 1-3187 | 3(a) | ||||||||||
X | ||||||||||||||
3(c) | — | Houston Electric’s Form 10-Q for the | 1-3187 | 3.1 | ||||||||||
X | ||||||||||||||
3(d) | — | Certificate of Incorporation of RERC Corp. | CERC Form 10-K for the year ended December 31, 1997 | 1-13265 | 3(a)(1) | X | ||||||||
3(e) | — | Certificate of Merger merging former NorAm Energy Corp. with and into HI Merger, Inc. dated August 6, 1997 | CERC Form 10-K for the year ended December 31, 1997 | 1-13265 | 3(a)(2) | X | ||||||||
3(f) | — | Certificate of Amendment changing the name to Reliant Energy Resources Corp. | CERC Form 10-K for the year ended December 31, 1998 | 1-13265 | 3(a)(3) | X | ||||||||
3(g) | — | CERC Form 10-Q for the quarter ended June 30, 2003 | 1-13265 | 3(a)(4) | X | |||||||||
3(h) | — | CenterPoint Energy’s Form 8-K dated February 21, 2017 | 1-31447 | 3.1 | X | |||||||||
3(i) | — | Houston Electric’s Form 10-Q for the | 1-3187 | 3.2 | X | |||||||||
3(j) | — | Bylaws of RERC Corp. | CERC Form 10-K for the year ended December 31, 1997 | 1-13265 | 3(b) | X | ||||||||
3(k) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2011 | 1-31447 | 3(c) | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
3(l) | — | CenterPoint Energy’s Form 8-K dated August 22, 2018 | 1-31447 | 3.1 | X | |||||||||
3(m) | — | CenterPoint Energy’s Form 8-K dated September 25, 2018 | 1-31447 | 3.1 | X | |||||||||
4(a) | — | CenterPoint Energy’s Registration Statement on Form S-4 | 333-69502 | 4.1 | X | |||||||||
4(b) | — | CenterPoint Energy’s Form 8-K dated August 22, 2018 | 1-31447 | 4.1 | X | |||||||||
4(c) | — | CenterPoint Energy’s Form 8-K dated September 25, 2018 | 1-31447 | 4.1 | X | |||||||||
4(d) | — | CenterPoint Energy’s Form 8-K dated September 25, 2018 | 1-31447 | 4.2 | X | |||||||||
4(e) | — | CenterPoint Energy’s Form 8-K dated September 25, 2018 | 1-31447 | 4.3 | X | |||||||||
4(f) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2001 | 1-31447 | 4.3 | X | |||||||||
4(g)(1) | — | Mortgage and Deed of Trust, dated November 1, 1944 between Houston Lighting and Power Company | HL&P’s Form S-7 filed on August 25, 1977 | 2-59748 | 2(b) | |||||||||
X | ||||||||||||||
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | ||||||||||
CenterPoint Energy | CERC | |||||||||||||
4(g)(2) | — | Twenty-First through Fiftieth Supplemental Indentures to Exhibit 4(g)(1) | HL&P’s Form 10-K for the year ended December 31, 1989 | 1-3187 | 4(a)(2) | X | X | |||||||
4(g)(3) | — | Fifty-First Supplemental Indenture to Exhibit | HL&P’s Form 10-Q for the quarter ended June 30, 1991 | 1-3187 | 4(a) | X | X | |||||||
4(g)(4) | — | Fifty-Second through Fifty-Fifth Supplemental Indentures to Exhibit 4(g)(1) each dated as of March 1, 1992 | HL&P’s Form 10-Q for the quarter ended March 31, 1992 | 1-3187 | 4 | X | X | |||||||
4(g)(5) | — | Fifty-Sixth and Fifty-Seventh Supplemental Indentures to Exhibit 4(g)(1) each dated as of October 1, 1992 | HL&P’s Form 10-Q for the quarter ended September 30, 1992 | 1-3187 | 4 | X | X | |||||||
4(g)(6) | — | Fifty-Eighth and Fifty-Ninth Supplemental Indentures to Exhibit 4(g)(1) each dated as of March 1, 1993 | HL&P’s Form 10-Q for the quarter ended March 31, 1993 | 1-3187 | 4 | X | X | |||||||
4(g)(7) | — | Sixtieth Supplemental Indenture to Exhibit 4(g)(1) dated as of July 1, 1993 | HL&P’s Form 10-Q for the quarter ended June 30, 1993 | 1-3187 | 4 | X | X | |||||||
4(g)(8) | — | Sixty-First through Sixty-Third Supplemental Indentures to Exhibit 4(g)(1) each dated as of December 1, 1993 | HL&P’s Form 10-K for the year ended December 31, 1993 | 1-3187 | 4(a)(8) | X | X | |||||||
4(g)(9) | — | Sixty-Fourth and Sixty-Fifth Supplemental Indentures to Exhibit 4(g)(1) each dated as of July 1, 1995 | HL&P’s Form 10-K for the year ended December 31, 1995 | 1-3187 | 4(a)(9) | X | X | |||||||
4(h)(1) | — | 1-3187 | 4(j) | |||||||||||
X | ||||||||||||||
4(h)(2) | — | 1-3187 | 4(j) | |||||||||||
X | ||||||||||||||
4(h)(3) | — | 1-3187 | 4(j) | |||||||||||
— | ||||||||||||||
CenterPoint | 1-31447 | |||||||||||||
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | ||||||||||
CenterPoint Energy | CERC | |||||||||||||
4(h)(5) | — | 1-31447 | 4(e) | |||||||||||
X | X | |||||||||||||
4(h)(6) | — | CenterPoint Energy’s Form 8-K dated March 13, 2003 | 1-31447 | 4.1 | X | X | ||||||||
4(h)(7) | — | 1-31447 | ||||||||||||
X | ||||||||||||||
4(h)(8) | — | 1-31447 | ||||||||||||
X | X | |||||||||||||
4(h)(9) | — | 1-31447 | ||||||||||||
— | ||||||||||||||
Houston Electric’s Form 8-K dated January 6, 2009 | 1-3187 | 4.2 | ||||||||||||
X | ||||||||||||||
— | ||||||||||||||
1-31447 | 4(e)(33) | |||||||||||||
X | X | |||||||||||||
4(h)(12) | — | 1-31447 | 4(e)(34) | |||||||||||
X | X | |||||||||||||
4(h)(13) | — | 1-31447 | ||||||||||||
X | X | |||||||||||||
4(h)(14) | — | 1-31447 | 4.11 | |||||||||||
X | X | |||||||||||||
4(h)(15) | — | 1-31447 | 4.5 | |||||||||||
X | X | |||||||||||||
4(h)(16) | — | 1-31447 | 4.6 | |||||||||||
X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | ||||||||||
CenterPoint Energy | Houston Electric | CERC | ||||||||||||
4(h)(17) | — | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2016 | 1-31447 | 4.5 | X | X | ||||||||
4(h)(18) | — | 1-31447 | 4.6 | |||||||||||
X | X | |||||||||||||
4(h)(19) | — | 1-31447 | 4(e)(41) | |||||||||||
X | X | |||||||||||||
4(h)(20) | — | 1-31447 | 4(e)(42) | |||||||||||
X | X | |||||||||||||
4(h)(21) | — | CenterPoint Energy’s Form 10-Q for the quarter ended March 30, 2018 | 1-31447 | 4.9 | X | X | ||||||||
4(h)(22) | — | CenterPoint Energy’s Form 10-Q for the quarter ended March 30, 2018 | 1-31447 | 4.10 | X | X | ||||||||
4(h)(23) | — | Houston Electric’s Form 8-K dated January 10, 2019 | 1-3187 | 4.4 | X | X | ||||||||
4(h)(24) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2018 | 1-31447 | 4(h)(24) | X | X | ||||||||
4(i)(1) | — | Indenture, dated as of February 1, 1998, between Reliant Energy Resources Corp. (RERC Corp.) and Chase Bank of Texas, National Association, as Trustee | CERC Corp.’s Form 8-K dated February 5, 1998 | 1-13265 | 4.1 | X | X | |||||||
4(i)(2) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2006 | 1-31447 | 4(f)(11) | X | X | ||||||||
4(i)(3) | — | CenterPoint Energy’s Form 10-Q for the quarter ended June 30, 2008 | 1-31447 | 4.9 | X | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
4(i)(4) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2010 | 1-31447 | 4(f)(15) | X | X | ||||||||
4(i)(5) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2010 | 1-31447 | 4(f)(16) | X | X | ||||||||
4(i)(6) | — | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2017 | 1-31447 | 4.11 | X | X | ||||||||
4(i)(7) | — | CERC’s Form 10-Q for the quarter ended March 31, 2018 | 1-13265 | 4.4 | X | X | ||||||||
4(j)(1) | — | CenterPoint Energy’s Form 8-K dated May 19, 2003 | 1-31447 | 4.1 | X | |||||||||
4(j)(2) | — | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2017 | 1-31447 | 4.9 | X | |||||||||
4(j)(3) | — | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2018 | 1-31447 | 4.14 | X | |||||||||
4(j)(4) | — | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2019 | 1-31447 | 4.2 | X | |||||||||
4(k)(1) | — | Subordinated Indenture dated as of September 1, 1999 | Reliant Energy’s Form 8-K dated September 1, 1999 | 1-3187 | 4.1 | X | ||||||||
4(k)(2) | — | Supplemental Indenture No. 1 dated as of September 1, 1999, between Reliant Energy and Chase Bank of Texas (supplementing Exhibit 4(k)(1) and providing for the issuance Reliant Energy’s 2% Zero-Premium Exchangeable Subordinated Notes Due 2029) | Reliant Energy’s Form 8-K dated September 15, 1999 | 1-3187 | 4.2 | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
4(k)(3) | — | CenterPoint Energy’s Form 8-K12B dated August 31, 2002 | 1-31447 | 4(e) | X | |||||||||
4(k)(4) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2005 | 1-31447 | 4(h)(4) | X | |||||||||
4(l)(1) | — | CenterPoint Energy’s Form 8-K dated March 3, 2016 | 1-31447 | 4.1 | X | |||||||||
4(l)(2) | — | CenterPoint Energy’s Form 8-K dated June 16, 2017 | 1-31447 | 4.1 | X | |||||||||
4(l)(3) | — | CenterPoint Energy’s Form 8-K dated May 25, 2018 | 1-31447 | 4.1 | X | |||||||||
4(m)(1) | — | 1-31447 | 4.2 | X | X | |||||||||
4(m)(2) | — | CenterPoint Energy’s Form 8-K dated June 16, 2017 | 1-31447 | 4.2 | X | X | ||||||||
4(n)(1) | — | CenterPoint Energy’s Form 8-K dated March 3, 2016 | 1-31447 | 4.3 | X | X | ||||||||
4(n)(2) | — | CenterPoint Energy’s Form 8-K dated June 16, 2017 | 1-31447 | 4.3 | X | X | ||||||||
4(o) | — | Vectren’s Form 8-K dated July 17, 2017 | 1-15467 | 10.1 | X | |||||||||
4(p) | — | Vectren’s Form 8-K dated July 17, 2017 | 1-15467 | 10.2 | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
4(q)(1) | — | Vectren’s Form 8-K dated July 30, 2018 | 1-15467 | 10.1 | X | |||||||||
4(r)(1) | — | Vectren’s Form 8-K dated September 18, 2018 | 1-15467 | 10.1 | X | |||||||||
4(r)(2) | — | CenterPoint Energy’s Form 10-Q for the quarter ended June 30, 2019 | 1-31447 | 4.17 | X | |||||||||
4(s)(1) | — | CenterPoint Energy’s Form 8-K dated May 15, 2019 | 1-31447 | 4.1 | X | |||||||||
4(t)(1) | — | Mortgage and Deed of Trust dated as of April 1, 1932 between SIGECO and Bankers Trust Company, as Trustee, as amended and supplemented by 28 Supplemental Indentures thereto | Post-Effective Amendment No. 1 Form 8-K dated June 1, 1984 Form 8-K dated March 24, 1986 Form 8-K dated June 3, 1986 | 2-2536 2-62032 2-88923 1-3553 1-3553 1-3553 | B-1, B-2 (b)(4)(ii) 4(b)(2) 4 4-A 4 | X X X X X X | ||||||||
4(t)(2) | — | Additional Supplemental Indentures to Exhibit 4(t)(1) | X | |||||||||||
Date as of | File Reference | Exhibit No. | ||||||||||||
July 1, 1985 | 1-3553, SIGECO’s Form 10-K for the fiscal year 1985 | 4-A | ||||||||||||
November 1, 1985 | 1-3553, SIGECO’s Form 10-K for the fiscal year 1985 | 4-A | ||||||||||||
November 15, 1986 | 1-3553, SIGECO’s Form 10-K for the fiscal year 1986 | 4-A | ||||||||||||
January 15, 1987 | 1-3553, SIGECO’s Form 10-K for the fiscal year 1986 | 4-A | ||||||||||||
December 15, 1987 | 1-3553, SIGECO’s Form 10-K for the fiscal year 1987 | 4-A | ||||||||||||
December 13, 1990 | 1-3553, SIGECO’s Form 10-K for the fiscal year 1990 | 4-A | ||||||||||||
April 1, 1993 | 1-3553, SIGECO’s Form 8-K dated April 13, 1993 | 4 | ||||||||||||
June 1, 1993 | 1-3553, SIGECO’s Form 8-K dated June 14, 1993 | 4 | ||||||||||||
1-3553, SIGECO’s Form 10-K for the fiscal year 1993 | 4(a) |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
Date as of | File Reference | Exhibit No. | ||||||||||||
1-3553, SIGECO’s Form 10-Q for the quarter ended June 30, 1999 | 4(a) | |||||||||||||
1-15467, Vectren’s Form 10-K for the year ended December 31, 2001 | 4.1 | |||||||||||||
1-15467, Vectren’s Form 10-K for the year ended December 31, 2004 | 4.1 | |||||||||||||
1-15467, Vectren’s Form 10-K for the year ended December 31, 2004 | 4.2 | |||||||||||||
1-15467, Vectren’s Form 10-K for the year ended December 31, 2007 | 4.1 | |||||||||||||
1-15467, Vectren’s Form 10-K for the year ended December 31, 2007 | 4.2 | |||||||||||||
1-15467, Vectren’s Form 10-K for the year ended December 31, 2007 | 4.3 | |||||||||||||
1-15467, Vectren’s Form 10-K for the year ended December 31, 2009 | 4.1 | |||||||||||||
1-15467, Vectren’s Form 8-K dated April 30, 2013 | 4.1 | |||||||||||||
1-15467, Vectren’s Form 8-K dated September 25, 2014 | 4.1 | |||||||||||||
1-15467, Vectren’s Form 8-K dated September 10, 2015 | 4.1 | |||||||||||||
4(u)(1) | — | Indenture dated February 1, 1991 between Indiana Gas Company, Inc. and U.S Bank Trust National Association (formerly known as First Trust National Association, which was formerly known as Bank of America Illinois, which was formerly known as Continental Bank, National Association) | Indiana Gas’s Form 8-K filed February 15, 1991 | 1-6494 | 4(a) | X | ||||||||
4(u)(2) | — | First Supplemental Indenture to Exhibit 4(u)(1), dated as of February 15, 1991 | Indiana Gas’s Form 8-K filed February 15, 1991 | 1-6494 | 4(b) | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
4(u)(3) | — | Second Supplemental Indenture to Exhibit 4(u)(1), dated as of September 15, 1991 | Indiana Gas’s Form 8-K filed September 25, 1991 | 1-6494 | 4(b) | X | ||||||||
4(u)(4) | — | Third Supplemental Indenture to Exhibit 4(u)(1), dated as of September 15, 1991 | Indiana Gas’s Form 8-K filed September 25, 1991 | 1-6494 | 4(c) | X | ||||||||
4(u)(5) | — | Fourth Supplemental Indenture to Exhibit 4(u)(1), dated as of December 2, 1992 | Indiana Gas’s Form 8-K filed December 8, 1992 | 1-6494 | 4(b) | X | ||||||||
4(u)(6) | — | Indiana Gas’s Form 8-K filed December 27, 2000 | 1-6494 | 4 | X | |||||||||
4(v)(1) | — | VUHI’s Form 8-K dated October 19, 2001 | 1-16739 | 4.1 | X | |||||||||
4(v)(2) | — | VUHI’s Form 8-K dated October 19, 2001 | 1-16739 | 4.2 | X | |||||||||
4(v)(3) | — | VUHI’s Form 8-K dated November 29, 2001 | 1-16739 | 4.1 | X | |||||||||
4(v)(4) | — | VUHI’s Form 8-K dated July 24, 2003 | 1-16739 | 4.1 | X | |||||||||
4(v)(5) | — | VUHI’s Form 8-K dated November 18, 2005 | 1-16739 | 4.1 | X | |||||||||
4(v)(6) | — | VUHI’s Form 8-K dated October 16, 2006 | 1-16739 | 4.1 | X | |||||||||
4(v)(7) | — | VUHI’s Form 8-K dated March 10, 2008 | 1-16739 | 4.1 | X | |||||||||
4(w) | — | Vectren’s Form 8-K dated March 16, 2009 | 1-15467 | 4.5 | X | |||||||||
4(x) | — | Vectren’s Form 8-K dated April 7, 2009 | 1-15467 | 4.5 | X | |||||||||
4(y) | — | Vectren’s Form 8-K dated April 8, 2011 | 1-15467 | 4.1 | X | |||||||||
4(z) | — | Vectren’s Form 8-K dated November 17, 2011 | 1-15467 | 4.1 | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
4(aa) | — | Vectren’s Form 8-K dated December 21, 2012 | 1-15467 | 4.1 | X | |||||||||
4(bb) | — | Vectren’s Form 8-K dated August 22, 2013 | 1-15467 | 4.1 | X | |||||||||
4(cc) | — | Vectren’s Form 8-K dated June 12, 2015 | 1-15467 | 4.1 | X | |||||||||
4(dd) | — | Vectren’s Form 8-K dated June 12, 2015 | 1-15467 | 4.2 | X | |||||||||
4(ee) | — | Vectren’s Form 8-K dated September 25, 2017 | 1-15467 | 4.1 | X | |||||||||
4(ff) | — | Vectren’s Form 8-K dated May 3, 2018 | 1-15467 | 4.1 | X | |||||||||
4(gg) | — | Vectren’s Form 8-K dated May 3, 2018 | 1-15467 | 4.2 | X | |||||||||
†4(hh) | — | X | ||||||||||||
†4(ii) | — | X | ||||||||||||
†4(jj) | — | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | ||||
10 | City of Houston Franchise Ordinance | CNP’s Form 10-Q for the quarter ended June 30, 2005 | 1-31447 | 10.1 | ||||
+12 | Computation of Ratios of Earnings to Fixed Charges | |||||||
+23 | Consent of Deloitte & Touche LLP | |||||||
+31.1 | Rule 13a-14(a)/15d-14(a) Certification of Scott M. Prochazka | |||||||
+31.2 | Rule 13a-14(a)/15d-14(a) Certification of William D. Rogers | |||||||
+32.1 | Section 1350 Certification of Scott M. Prochazka | |||||||
+32.2 | Section 1350 Certification of William D. Rogers | |||||||
+101.INS | XBRL Instance Document | |||||||
+101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
+101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
+101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
+101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | |||||||
+101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
*10(a) | — | CenterPoint Energy’s Form 10-Q for the quarter ended March 31, 2011 | 1-31447 | 10.3 | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
*10(b)(1) | — | CenterPoint Energy’s Form 8-K dated December 22, 2008 | 1-31447 | 10.1 | X | |||||||||
*10(b)(2) | — | CenterPoint Energy’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 | 1-31447 | 10.4 | X | |||||||||
*10(c) | — | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2003 | 1-31447 | 10.1 | X | |||||||||
*10(d)(1) | — | CenterPoint Energy’s Form 8-K dated December 22, 2008 | 1-31447 | 10.4 | X | |||||||||
*10(d)(2) | — | CenterPoint Energy’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 | 1-31447 | 10.5 | X | |||||||||
*10(e)(1) | — | CenterPoint Energy’s Form 8-K dated December 22, 2008 | 1-31447 | 10.3 | X | |||||||||
*10(e)(2) | — | CenterPoint Energy’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 | 1-31447 | 10.6 | X | |||||||||
*10(e)(3) | CenterPoint Energy’s Form 8-K dated December 9, 2019 | 1-31447 | 10.1 | X | ||||||||||
*10(f) | — | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2003 | 1-31447 | 10.5 | X | |||||||||
10(g)(1) | — | Stockholder’s Agreement dated as of July 6, 1995 between Houston Industries Incorporated and Time Warner Inc. | Schedule 13-D dated July 6, 1995 | 5-19351 | 2 | X | ||||||||
10(g)(2) | — | Amendment to Exhibit 10(g)(1) dated November 18, 1996 | HI’s Form 10-K for the year ended December 31, 1996 | 1-7629 | 10(x)(4) | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
†10(h) | — | X | ||||||||||||
10(i)(1) | — | Reliant Energy’s Form 10-Q for the quarter ended March 31, 2001 | 1-3187 | 10.1 | X | |||||||||
10(i)(2) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2002 | 1-31447 | 10(bb)(5) | X | |||||||||
10(i)(3) | — | Reliant Energy’s Form 10-Q for the quarter ended March 31, 2001 | 1-3187 | 10.5 | X | |||||||||
10(i)(4) | — | Reliant Energy’s Form 10-Q for the quarter ended March 31, 2001 | 1-3187 | 10.6 | X | |||||||||
10(i)(5) | — | Reliant Energy’s Form 10-Q for the quarter ended March 31, 2001 | 1-3187 | 10.8 | X | |||||||||
10(j)(1) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2002 | 1-31447 | 10(cc)(1) | X | |||||||||
10(j)(2) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2002 | 1-31447 | 10(cc)(2) | X | |||||||||
10(j)(3) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2002 | 1-31447 | 10(cc)(3) | X | |||||||||
*10(k)(1) | — | CenterPoint Energy’s Form 10-Q for the quarter ended June 30, 2003 | 1-31447 | 10.2 | X | |||||||||
*10(k)(2) | — | CenterPoint Energy’s Form 8-K dated February 20, 2008 | 1-31447 | 10.4 | X | |||||||||
*10(l)(1) | — | CenterPoint Energy’s Form 8-K dated February 20, 2008 | 1-31447 | 10.3 | X | |||||||||
*10(l)(2) | — | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2008 | 1-31447 | 10.1 | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
*10(m) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2018 | 1-31447 | 10(m) | X | |||||||||
*10(n)(1) | — | CenterPoint Energy’s Form 10-Q for the quarter ended March 31, 2018 | 1-31447 | 10.1 | X | |||||||||
†*10(n)(2) | X | |||||||||||||
10(o) | — | CenterPoint Energy’s Form 10-Q for the quarter ended June 30, 2005 | 1-31447 | 10.1 | X | X | ||||||||
10(p)(1) | — | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2008 | 1-31447 | 10.2 | X | |||||||||
10(p)(2) | — | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2008 | 1-31447 | 10.3 | X | |||||||||
*10(q)(1) | — | CenterPoint Energy’s Schedule 14A dated March 13, 2009 | 1-31447 | A | X | |||||||||
†*10(q)(2) | — | X | ||||||||||||
*10(q)(3) | — | CenterPoint Energy’s Form 10-Q for the quarter ended March 31, 2018 | 1-31447 | 10.4 | X | |||||||||
*10(q)(4) | — | CenterPoint Energy’s Form 8-K dated February 28, 2012 | 1-31447 | 10.2 | X | |||||||||
†*10(q)(5) | — | X | ||||||||||||
†*10(q)(6) | — | X | ||||||||||||
*10(q)(7) | — | CenterPoint Energy’s Form 10-Q for the quarter ended March 31, 2018 | 1-31447 | 10.7 | X | |||||||||
†10(r) | — | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
†10(s) | — | X | ||||||||||||
*10(t) | — | CenterPoint Energy’s Form 8-K dated April 27, 2017 | 1-31447 | 10.1 | X | |||||||||
*10(u) | — | CenterPoint Energy’s Form 10-K for the year ended December 31, 2013 | 1-31447 | 10(zz) | X | |||||||||
*10(v) | Vectren’s Form 10-K for the year end December 31, 2001 | 1-15467 | 10.32 | X | ||||||||||
*10(w) | Vectren’s Form 8-K dated September 29, 2008 | 1-15467 | 10.3 | X | ||||||||||
*10(x) | Vectren’s Form 8-K dated December 17, 2008 | 1-15467 | 10.2 | X | ||||||||||
*10(y) | Vectren’s Form 8-K dated January 5, 2012 | 1-15467 | 10.1 | X | ||||||||||
*10(z) | Vectren’s Form 10-K for the year end December 31, 2012 | 1-15467 | 10.1 | X | ||||||||||
*10(aa) | Vectren’s Form 8-K dated December 17, 2008 | 1-15467 | 10.1 | X | ||||||||||
*10(bb) | Vectren’s Form 10-Q for the quarter ended September 30, 2013 | 1-15467 | 10.1 | X | ||||||||||
10(cc) | — | CenterPoint Energy’s Form 8-K dated March 14, 2013 | 1-31447 | 2.1 | X | |||||||||
10(dd) | — | CenterPoint Energy’s Form 8-K dated November 14, 2017 | 1-31447 | 10.1 | X | |||||||||
10(ee) | — | CenterPoint Energy’s Form 8-K dated June 22, 2016 | 1-31447 | 10.2 | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
10(ff) | — | CenterPoint Energy’s Form 8-K dated May 1, 2013 | 1-31447 | 10.3 | X | |||||||||
10(gg) | — | CenterPoint Energy’s Form 8-K dated May 1, 2013 | 1-31447 | 10.4 | X | |||||||||
10(hh) | — | CERC’s Form 8-K dated May 27, 2014 | 1-13265 | 10.1 | X | |||||||||
10(ii) | — | CERC’s Form 8-K dated May 27, 2014 | 1-13265 | 10.2 | X | |||||||||
10(jj) | — | CERC’s Form 8-K dated May 27, 2014 | 1-13265 | 10.3 | X | |||||||||
10(kk) | — | CenterPoint Energy’s Form 8-K dated January 28, 2016 | 1-31447 | 10.1 | X | |||||||||
10(ll) | — | CenterPoint Energy’s Form 8-K dated February 18, 2016 | 1-31447 | 10.2 | X | |||||||||
10(mm) | — | CenterPoint Energy’s Form 8-K dated April 21, 2018 | 1-31447 | 10.1 | X | |||||||||
†21 | — | X | ||||||||||||
†23.1 | — | X | ||||||||||||
†23.2 | — | X |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||
†31.1.1 | — | X | ||||||||||||
†31.1.2 | — | X | ||||||||||||
†31.1.3 | — | X | ||||||||||||
†31.2.1 | — | X | ||||||||||||
†31.2.2 | — | X | ||||||||||||
†31.2.3 | — | X | ||||||||||||
†32.1.1 | — | X | ||||||||||||
†32.1.2 | — | X | ||||||||||||
†32.1.3 | — | X | ||||||||||||
†32.2.1 | — | X | ||||||||||||
†32.2.2 | — | X | ||||||||||||
†32.2.3 | — | X | ||||||||||||
99.1 | — | Part II, Item 8 of Enable Midstream Partners, LP’s Form 10-K for the year ended December 31, 2019 | 001-36413 | Item 8 | X | |||||||||
†101.INS | — | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | X | X | X | |||||||||
†101.SCH | — | Inline XBRL Taxonomy Extension Schema Document | X | X | X | |||||||||
†101.CAL | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | X | X | |||||||||
†101.DEF | — | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | X | X | |||||||||
†101.LAB | — | Inline XBRL Taxonomy Extension Labels Linkbase Document | X | X | X | |||||||||
†101.PRE | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | X | X | |||||||||
†104 | — | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | X | X | X |
CENTERPOINT ENERGY, INC. | |
(Registrant) | |
By: /s/ John W. Somerhalder II | |
John W. Somerhalder II | |
Interim President and Chief Executive Officer |
Signature | Title | |
/s/ JOHN W. SOMERHALDER II | Interim President, Chief Executive Officer and | |
John W. Somerhalder II | Director (Principal Executive Officer and Director) | |
/s/ XIA LIU | Executive Vice President and Chief | |
Xia Liu | Financial Officer (Principal Financial Officer) | |
/s/ KRISTIE L. COLVIN | Senior Vice President and Chief | |
Kristie L. Colvin | Accounting Officer (Principal Accounting Officer) | |
/s/ MILTON CARROLL | Executive Chairman of the Board of Directors | |
Milton Carroll | ||
/s/ LESLIE D. BIDDLE | Director | |
Leslie D. Biddle | ||
/s/ SCOTT J. MCLEAN | Director | |
Scott J. McLean | ||
/s/ MARTIN H. NESBITT | Director | |
Martin H. Nesbitt | ||
/s/ THEODORE F. POUND | Director | |
Theodore F. Pound | ||
/s/ SUSAN O. RHENEY | Director | |
Susan O. Rheney | ||
/s/ PHILLIP R. SMITH | Director | |
Phillip R. Smith | ||
/s/ PETER S. WAREING | Director | |
Peter S. Wareing | ||
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC | |
(Registrant) | |
By: | /s/ JOHN W. SOMERHALDER II |
John W. Somerhalder II | |
Interim Manager |
Signature | Title | |
/s/ JOHN W. SOMERHALDER II | Interim Manager and Chairman | |
(John W. Somerhalder II) | (Principal Executive Officer) | |
/s/ XIA LIU | Executive Vice President and Chief Financial Officer | |
(Xia Liu) | (Principal Financial Officer) | |
/s/ KRISTIE L. COLVIN | Senior Vice President and Chief Accounting Officer | |
(Kristie L. Colvin) | (Principal Accounting Officer) |
CENTERPOINT ENERGY RESOURCES CORP. | |
(Registrant) | |
By: | /s/ JOHN W. SOMERHALDER II |
John W. Somerhalder II | |
President and Chief Executive Officer |
Signature | Title | |
/s/ JOHN W. SOMERHALDER II | Interim Chairman, President and Chief Executive Officer | |
(John W. Somerhalder II) | (Principal Executive Officer and Director) | |
/s/ XIA LIU | Executive Vice President and Chief Financial Officer | |
(Xia Liu) | (Principal Financial Officer) | |
/s/ KRISTIE L. COLVIN | Senior Vice President and Chief Accounting Officer | |
(Kristie L. Colvin) | (Principal Accounting Officer) |