Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Oct. 26, 2017 | Jun. 30, 2016 | |
Entity Information [Line Items] | |||
Entity Registrant Name | CENTERPOINT ENERGY INC. | ||
Entity Central Index Key | 1,130,310 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 431,033,509 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 10,273,144,728 |
CONDENSED STATEMENTS OF CONSOLI
CONDENSED STATEMENTS OF CONSOLIDATED INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Utility revenues | $ 1,233 | $ 1,278 | $ 4,001 | $ 4,003 |
Non-utility revenues | 865 | 611 | 2,975 | 1,444 |
Total | 2,098 | 1,889 | 6,976 | 5,447 |
Expenses: | ||||
Utility natural gas | 106 | 99 | 706 | 663 |
Non-utility natural gas | 832 | 584 | 2,843 | 1,368 |
Operation and maintenance | 519 | 505 | 1,614 | 1,539 |
Depreciation and amortization | 269 | 324 | 749 | 873 |
Taxes other than income taxes | 93 | 93 | 288 | 288 |
Total | 1,819 | 1,605 | 6,200 | 4,731 |
Operating Income | 279 | 284 | 776 | 716 |
Other Income (Expense): | ||||
Gain on marketable securities | 37 | 77 | 104 | 187 |
Loss on indexed debt securities | (36) | (72) | (59) | (258) |
Interest and other finance charges | (80) | (83) | (235) | (256) |
Interest on securitization bonds | (18) | (23) | (58) | (70) |
Equity in earnings of unconsolidated affiliate, net | 68 | 73 | 199 | 164 |
Other, net | 17 | 20 | 50 | 41 |
Total | (12) | (8) | 1 | (192) |
Income Before Income Taxes | 267 | 276 | 777 | 524 |
Income tax expense | 98 | 97 | 281 | 193 |
Net Income | $ 169 | $ 179 | $ 496 | $ 331 |
Basic Earnings Per Share | $ 0.39 | $ 0.42 | $ 1.15 | $ 0.77 |
Diluted Earnings Per Share | 0.39 | 0.41 | 1.14 | 0.76 |
Dividends Declared Per Share | $ 0.2675 | $ 0.2575 | $ 0.8025 | $ 0.7725 |
Weighted Average Shares Outstanding, Basic | 431,026,000 | 430,682,000 | 430,939,000 | 430,581,000 |
Weighted Average Shares Outstanding, Diluted | 434,086,000 | 433,396,000 | 433,999,000 | 433,295,000 |
CONDENSED STATEMENTS OF CONSOL3
CONDENSED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 169 | $ 179 | $ 496 | $ 331 |
Other comprehensive income: | ||||
Adjustment related to pension and other postretirement plans (net of tax of $2, $2, $4 and $1) | 0 | 1 | 2 | 1 |
Net deferred gain (loss) from cash flow hedges (net of tax of $2, $1, $2 and $-0-) | (2) | 2 | (3) | 1 |
Total | (2) | 3 | (1) | 2 |
Comprehensive income | $ 167 | $ 182 | $ 495 | $ 333 |
CONDENSED STATEMENTS OF CONSOL4
CONDENSED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax benefit (expense) on adjustment related to pension and postretirement plans | $ (2) | $ (2) | $ (4) | $ (1) |
Tax expense (benefit) on net deferred loss from cash flow hedges | $ (2) | $ 1 | $ (2) | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents ($200 and $340 related to VIEs, respectively) | $ 201 | $ 341 |
Investment in marketable securities | 1,057 | 953 |
Accounts receivable ($65 and $52 related to VIEs, respectively), less bad debt reserve of $16 and $15, respectively | 783 | 740 |
Accrued unbilled revenues | 213 | 335 |
Natural gas inventory | 252 | 131 |
Materials and supplies | 190 | 181 |
Non-trading derivative assets | 64 | 51 |
Taxes receivable | 0 | 30 |
Prepaid expenses and other current assets ($31 and $40 related to VIEs, respectively) | 175 | 161 |
Total current assets | 2,935 | 2,923 |
Property, Plant and Equipment: | ||
Property, plant and equipment | 18,581 | 17,831 |
Less: accumulated depreciation and amortization | 5,881 | 5,524 |
Property, plant and equipment, net | 12,700 | 12,307 |
Other Assets: | ||
Goodwill | 867 | 862 |
Regulatory assets ($1,690 and $1,919 related to VIEs, respectively) | 2,539 | 2,677 |
Non-trading derivative assets | 56 | 19 |
Investment in unconsolidated affiliate | 2,481 | 2,505 |
Preferred units – unconsolidated affiliate | 363 | 363 |
Other | 194 | 173 |
Total other assets | 6,500 | 6,599 |
Total Assets | 22,135 | 21,829 |
Current Liabilities: | ||
Short-term borrowings | 48 | 35 |
Current portion of VIE securitization bonds long-term debt | 432 | 411 |
Indexed debt, net | 120 | 114 |
Current portion of other long-term debt | 550 | 500 |
Indexed debt securities derivative | 776 | 717 |
Accounts payable | 657 | 657 |
Taxes accrued | 199 | 172 |
Interest accrued | 83 | 108 |
Non-trading derivative liabilities | 17 | 41 |
Other | 339 | 325 |
Total current liabilities | 3,221 | 3,080 |
Other Liabilities: | ||
Deferred income taxes, net | 5,458 | 5,263 |
Non-trading derivative liabilities | 10 | 5 |
Benefit obligations | 886 | 913 |
Regulatory liabilities | 1,127 | 1,298 |
Other | 284 | 278 |
Total other liabilities | 7,765 | 7,757 |
Long-term Debt: | ||
VIE securitization bonds, net | 1,500 | 1,867 |
Other long-term debt, net | 6,031 | 5,665 |
Total long-term debt, net | 7,531 | 7,532 |
Commitments and Contingencies (Note 13) | ||
Shareholders’ Equity: | ||
Cumulative preferred stock, $0.01 par value, 20,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 431,030,884 shares and 430,682,504 shares outstanding, respectively | 4 | 4 |
Additional paid-in capital | 4,204 | 4,195 |
Accumulated deficit | (518) | (668) |
Accumulated other comprehensive loss | (72) | (71) |
Total shareholders’ equity | 3,618 | 3,460 |
Total Liabilities and Shareholders’ Equity | $ 22,135 | $ 21,829 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 201 | $ 341 |
Bad debt reserve | 16 | 15 |
Accounts receivable, net | 783 | 740 |
Prepaid expenses and other current assets | 175 | 161 |
Regulatory assets | $ 2,539 | $ 2,677 |
Cumulative preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Cumulative preferred stock authorized (in shares) | 20,000,000 | 20,000,000 |
Cumulative preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock outstanding (in shares) | 431,030,884 | 430,682,504 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash and cash equivalents | $ 200 | $ 340 |
Accounts receivable, net | 65 | 52 |
Prepaid expenses and other current assets | 31 | 40 |
Regulatory assets | $ 1,690 | $ 1,919 |
CONDENSED STATEMENTS OF CONSOL7
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOW (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 496 | $ 331 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 749 | 873 |
Amortization of deferred financing costs | 18 | 19 |
Deferred income taxes | 185 | 150 |
Unrealized gain on marketable securities | (104) | (187) |
Loss on indexed debt securities | 59 | 258 |
Write-down of natural gas inventory | 0 | 1 |
Equity in earnings of unconsolidated affiliate, net of distributions | (199) | (164) |
Pension contributions | (46) | (7) |
Changes in other assets and liabilities, excluding acquisitions: | ||
Accounts receivable and unbilled revenues, net | 216 | 86 |
Inventory | (52) | (5) |
Taxes receivable | 30 | 149 |
Accounts payable | (137) | (90) |
Fuel cost recovery | (30) | (43) |
Non-trading derivatives, net | (53) | 23 |
Margin deposits, net | (49) | 65 |
Interest and taxes accrued | 2 | (48) |
Net regulatory assets and liabilities | (135) | (26) |
Other current assets | 21 | (9) |
Other current liabilities | 19 | 31 |
Other assets | (3) | 0 |
Other liabilities | 28 | 29 |
Other, net | 16 | 19 |
Net cash provided by operating activities | 1,031 | 1,455 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (994) | (1,047) |
Acquisitions, net of cash acquired | (132) | (102) |
Decrease in notes receivable – unconsolidated affiliate | 0 | 363 |
Investment in preferred units – unconsolidated affiliate | 0 | (363) |
Distributions from unconsolidated affiliate in excess of cumulative earnings | 223 | 223 |
Decrease (increase) in restricted cash of Bond Companies | 8 | (2) |
Proceeds from sale of marketable securities | 0 | 178 |
Other, net | 3 | 11 |
Net cash used in investing activities | (892) | (739) |
Cash Flows from Financing Activities: | ||
Increase in short-term borrowings, net | 13 | 3 |
Proceeds from (payments of) commercial paper, net | (428) | 63 |
Proceeds from long-term debt, net | 1,096 | 600 |
Payments of long-term debt | (597) | (855) |
Debt issuance costs | (13) | (9) |
Payment of dividends on common stock | (346) | (332) |
Distribution to ZENS note holders | 0 | (178) |
Other, net | (4) | (2) |
Net cash used in financing activities | (279) | (710) |
Net Increase (Decrease) in Cash and Cash Equivalents | (140) | 6 |
Cash and Cash Equivalents at Beginning of Period | 341 | 264 |
Cash and Cash Equivalents at End of Period | 201 | 270 |
Cash Payments/Receipts: | ||
Interest, net of capitalized interest | 306 | 324 |
Income taxes (refunds), net | 14 | (105) |
Non-cash transactions: | ||
Accounts payable related to capital expenditures | $ 111 | $ 75 |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation [Text Block] | Background and Basis of Presentation General. Included in this Form 10-Q are the Interim Condensed Financial Statements of CenterPoint Energy. The Interim Condensed Financial Statements are unaudited, omit certain financial statement disclosures and should be read with the 2016 Form 10-K. Background. CenterPoint Energy, Inc. is a public utility holding company. CenterPoint Energy’s operating subsidiaries own and operate electric transmission and distribution and natural gas distribution facilities, supply natural gas to commercial and industrial customers and electric and natural gas utilities and own interests in Enable as described below. CenterPoint Energy’s indirect, wholly-owned subsidiaries include: • Houston Electric, which engages in the electric transmission and distribution business in the Texas Gulf Coast area that includes the city of Houston; • CERC Corp., which owns and operates natural gas distribution systems in six states; and • CES, which 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 33 states. As of September 30, 2017 , CenterPoint Energy also owned an aggregate of 14,520,000 Series A Preferred Units in Enable, which owns, operates and develops natural gas and crude oil infrastructure assets, and CERC Corp. owned approximately 54.1% of the common units representing limited partner interests in Enable. As of September 30, 2017 , CenterPoint Energy had VIEs consisting of the Bond Companies, which it consolidates. The consolidated VIEs are wholly-owned, bankruptcy-remote, special purpose entities that were formed specifically for the purpose of securitizing transition and system restoration-related property. Creditors of CenterPoint Energy have no recourse to any assets or revenues of the Bond Companies. The bonds issued by these VIEs are payable only from and secured by transition and system restoration property, and the bondholders have no recourse to the general credit of CenterPoint Energy. Basis of Presentation. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. CenterPoint Energy’s Interim Condensed Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the respective periods. Amounts reported in CenterPoint Energy’s Condensed Statements of Consolidated Income are not necessarily indicative of amounts expected for a full-year period due to the effects of, among other things, (a) seasonal fluctuations in demand for energy and energy services, (b) changes in energy commodity prices, (c) timing of maintenance and other expenditures and (d) acquisitions and dispositions of businesses, assets and other interests. For a description of CenterPoint Energy’s reportable business segments, see Note 15 . |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements [Text Block] | New Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). ASU 2016-01 requires equity investments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value and to recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. It does not change the guidance for classifying and measuring investments in debt securities and loans. ASU 2016-01 also changes certain disclosure requirements and other aspects related to recognition and measurement of financial assets and financial liabilities. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. As of the first reporting period in which the guidance is adopted, a cumulative-effect adjustment to beginning retained earnings will be made, with two features that will be adopted prospectively. CenterPoint Energy does not believe this standard will have a material impact on its financial position, results of operations, cash flows and disclosures. In 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02) 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. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. A modified retrospective adoption approach is required. CenterPoint Energy is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. CenterPoint Energy adopted this standard as of January 1, 2017. The adoption did not have a material impact on CenterPoint Energy’s financial position or results of operations. However, CenterPoint Energy’s statement of cash flows reflects a decrease in financing activity and a corresponding increase in operating activity of $4 million and $3 million as of September 30, 2017 and 2016 , respectively, due to the retrospective application of the requirement that cash paid to a tax authority when shares are withheld to satisfy statutory income tax withholding obligations should be presented as a financing rather than as an operating activity. In 2016, the FASB issued ASUs which amended ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09, as amended, provides a comprehensive new revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. Early adoption is permitted, and entities have the option of using either a full retrospective or a modified retrospective adoption approach. CenterPoint Energy is currently evaluating its revenue streams under these ASUs and has not yet identified any significant changes as the result of these new standards. A substantial amount of CenterPoint Energy’s revenues are tariff and derivative based, which we do not anticipate will be significantly impacted by these ASUs. CenterPoint Energy expects to adopt these ASUs on January 1, 2018 using the modified retrospective adoption approach. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). ASU 2016-15 provides clarifying guidance on the classification of certain cash receipts and payments in the statement of cash flows and eliminates the variation in practice related to such classifications. ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. A retrospective adoption approach is required. CenterPoint Energy is currently assessing the impact that this standard will have on its statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18 , Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. As a result, the statement of cash flows will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. A retrospective adoption approach is required. This standard will not have an impact on CenterPoint Energy’s financial position, results of operations, and disclosures, but it will have an impact on the presentation of the statement of cash flows. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01). ASU 2017-01 revises the definition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then under ASU 2017-01, the asset or group of assets is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs to be more closely aligned with how outputs are described in ASC 606. ASU 2017-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted in certain circumstances. A prospective adoption approach is required. ASU 2017-01 could have a potential impact on CenterPoint Energy’s accounting for future acquisitions. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminates Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. A prospective adoption approach is required. ASU 2017-04 will have an impact on CenterPoint Energy’s future calculation of goodwill impairments if an impairment is identified. In February 2017, the FASB issued ASU No. 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (ASU 2017-05). ASU 2017-05 clarifies when and how to apply ASC 610-20 Gains and Losses from the Derecognition of Nonfinancial Assets , which was issued as part of ASU 2014-09 Revenue from Contracts with Customers (Topic 606). ASU 2017-05 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. Companies can elect a retrospective or modified retrospective approach to adoption. CenterPoint Energy does not believe this standard will have a material impact on its financial position, results of operations, cash flows and disclosures. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07). ASU 2017-07 requires an employer to report the service cost component of the net periodic pension cost and postretirement benefit cost in the same line item(s) as other employee compensation costs arising from services rendered during the period; all other components will be presented separately from the line item(s) that includes the service cost and outside of any subtotal of operating income. In addition, only the service cost component will be eligible for capitalization in assets. ASU 2017-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. ASU 2017-07 should be applied retrospectively for the presentation of the service cost component and the other components and prospectively for the capitalization of the service cost component. The adoption of this guidance is expected to result in an increase to operating income and a decrease to other income. Prospectively, other components previously capitalized in assets will be recorded as regulatory assets in CenterPoint Energy’s rate-regulated businesses. CenterPoint Energy does not believe this standard will have a material impact on its financial position, results of operations, cash flows and disclosures. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting (ASU 2017-09). ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. Entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. ASU 2017-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. ASU 2017-09 should be applied prospectively for awards modified on or after the adoption date. This standard will have an impact on CenterPoint Energy’s future treatment of changes to share-based payment awards. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12). ASU 2017-12 expands an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness, eases certain documentation and assessment requirements, and updates the presentation and disclosure requirements. ASU 2017-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. A cumulative-effect adjustment to eliminate the separate measurement of ineffectiveness upon adoption is required for existing cash flow and net investment hedges. Presentation and disclosure guidance should be applied prospectively. CenterPoint Energy is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. Management believes that other recently issued standards, which are not yet effective, will not have a material impact on CenterPoint Energy’s consolidated financial position, results of operations or cash flows upon adoption. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisition [Text Block] | Acquisition On January 3, 2017, CES, an indirect, wholly-owned subsidiary of CenterPoint Energy, completed its acquisition of AEM. After working capital adjustments, the final purchase price was $147 million and was allocated to identifiable assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The following table summarizes the final purchase price allocation and the fair value amounts recognized for the assets acquired and liabilities assumed related to the acquisition: (in millions) Total purchase price consideration $ 147 Cash $ 15 Receivables 140 Natural gas inventory 78 Derivative assets 35 Prepaid expenses and other current assets 5 Property and equipment 8 Identifiable intangibles 25 Total assets acquired 306 Accounts payable 113 Derivative liabilities 43 Other current liabilities 7 Other liabilities 1 Total liabilities assumed 164 Identifiable net assets acquired 142 Goodwill 5 Net assets acquired $ 147 The goodwill of $5 million resulting from the acquisition reflects the excess of the purchase price over the fair value of the net identifiable assets acquired. The goodwill recorded as part of the acquisition primarily reflects the value of the complementary operational and geographic footprints, scale and expanded capabilities provided by the acquisition. Identifiable intangible assets were recorded at estimated fair value as determined by management based on available information, which includes a preliminary valuation prepared by an independent third party. The significant assumptions used in arriving at the estimated identifiable intangible asset values included management’s estimates of future cash flows, the discount rate which is based on the weighted average cost of capital for comparable publicly traded guideline companies and projected customer attrition rates. The useful lives for the identifiable intangible assets were determined using methods that approximate the pattern of economic benefit provided by the utilization of the assets. The estimated fair value of the identifiable intangible assets and related useful lives as included in the final purchase price allocation include: Estimate Fair Value Estimate Useful Life (in millions) (in years) Customer relationships $ 25 15 Amortization expense related to the above identifiable intangible assets was $-0- and $1 million for the three and nine months ended September 30, 2017 , respectively. Revenues of approximately $311 million and $989 million , respectively, and operating income of approximately $3 million and $28 million , respectively, attributable to the AEM acquisition are reported in the Energy Services business segment and included in CenterPoint Energy’s Condensed Statements of Consolidated Income for the three and nine months ended September 30, 2017 . The following unaudited pro forma financial information reflects the consolidated results of operations of CenterPoint Energy, assuming the AEM acquisition had taken place on January 1, 2016. Adjustments to pro forma net income include intercompany sales, amortization of intangible assets, depreciation of fixed assets, interest expense associated with debt financing to fund the acquisition, and related income tax effects. The pro forma information does not include the mark-to-market impact of financial instruments designated as cash flow hedges of anticipated purchases and sales at index prices. The effective portion of these hedges are excluded from earnings and reported as changes in Other Comprehensive Income. Additionally, the pro forma information does not include the mark-to-market impact of physical forward transactions that were previously accounted for as normal purchase and sale transactions. The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations that would have been achieved had the acquisition taken place on the dates indicated or the future consolidated results of operations of the combined company. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Operating Revenue $ 2,098 $ 2,145 $ 6,976 $ 6,161 Net Income 169 179 496 335 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans [Text Block] | Employee Benefit Plans CenterPoint Energy’s net periodic cost includes the following components relating to pension and postretirement benefits: Three Months Ended September 30, 2017 2016 Pension Postretirement Pension Postretirement (in millions) Service cost $ 9 $ — $ 10 $ 1 Interest cost 22 4 23 4 Expected return on plan assets (24 ) (1 ) (26 ) (2 ) Amortization of prior service cost (credit) 2 (1 ) 3 (1 ) Amortization of net loss 14 — 15 — Net periodic cost (2) $ 23 $ 2 $ 25 $ 2 Nine Months Ended September 30, 2017 2016 Pension Postretirement Pension Postretirement (in millions) Service cost $ 27 $ 1 $ 28 $ 2 Interest cost 66 12 70 13 Expected return on plan assets (72 ) (4 ) (76 ) (5 ) Amortization of prior service cost (credit) 7 (3 ) 7 (2 ) Amortization of net loss 43 — 47 — Curtailment gain (1) — — — (3 ) Net periodic cost (2) $ 71 $ 6 $ 76 $ 5 (1) A curtailment gain or loss is required when the expected future services of a significant number of current employees are reduced or eliminated for the accrual of benefits. In May 2016, Houston Electric entered into a renegotiated collective bargaining agreement with the IBEW Local Union 66 that provides that for Houston Electric union employees covered under the agreement who retire on or after January 1, 2017, retiree medical and prescription drug coverage will be provided exclusively through the NECA/IBEW Family Medical Care Plan in exchange for the payment of monthly premiums as determined under the agreement. As a result, the accrued postretirement benefits related to such future Houston Electric union retirees were eliminated. In 2016, Houston Electric recognized a curtailment gain of $3 million as an accelerated recognition of the prior service credit that would otherwise be recognized in future periods. (2) Net periodic cost in this table is before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes. CenterPoint Energy’s changes in accumulated comprehensive loss related to defined benefit and postretirement plans are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Beginning Balance $ (70 ) $ (65 ) $ (72 ) $ (65 ) Other comprehensive income (loss) before reclassifications (1) — — — (4 ) Amounts reclassified from accumulated other comprehensive loss: Prior service cost (2) — 1 1 1 Actuarial losses (2) 2 2 5 5 Tax expense (2 ) (2 ) (4 ) (1 ) Net current period other comprehensive income — 1 2 1 Ending Balance $ (70 ) $ (64 ) $ (70 ) $ (64 ) (1) Total other comprehensive income (loss) is related to the remeasurement of the postretirement plan. (2) These accumulated other comprehensive components are included in the computation of net periodic cost. CenterPoint Energy expects to contribute a minimum of approximately $46 million to its pension plans in 2017 , of which approximately $28 million and $46 million were contributed during the three and nine months ended September 30, 2017 , respectively. CenterPoint Energy expects to contribute a total of approximately $16 million to its postretirement benefit plan in 2017 , of which approximately $4 million and $12 million were contributed during the three and nine months ended September 30, 2017 , respectively. |
Regulatory Accounting
Regulatory Accounting | 9 Months Ended |
Sep. 30, 2017 | |
Regulatory Assets and Liabilities, Other Disclosures [Abstract] | |
Regulatory Accounting [Text Block] | Regulatory Accounting Equity Return. As of September 30, 2017 , Houston Electric has not recognized an allowed equity return of $299 million because such return will be recognized as it is recovered in rates. During the three months ended September 30, 2017 and 2016 , Houston Electric recognized approximately $13 million and $22 million , respectively, of the allowed equity return not previously recognized. During the nine months ended September 30, 2017 and 2016 , Houston Electric recognized approximately $30 million and $52 million , respectively, of the allowed equity return not previously recognized. Hurricane Harvey. Houston Electric’s electric delivery system and CERC Corp.’s NGD suffered damage as a result of Hurricane Harvey, a major storm classified as a Category 4 hurricane on the Saffir-Simpson Hurricane Wind Scale, that first struck the Texas coast on Friday, August 25, 2017 and remained over the Houston area for the next several days. The unprecedented flooding from torrential amounts of rainfall accompanying the storm caused significant damage to or destruction of residences and businesses served by Houston Electric and NGD. Currently, Houston Electric estimates that total costs to restore the electric delivery facilities damaged as a result of Hurricane Harvey will range from $110 million to $120 million and estimates that the total restoration costs covered by insurance will be approximately $35 million . Houston Electric will defer the uninsured storm restoration costs as management believes it is probable that such costs will be recovered through traditional rate adjustment mechanisms for capital costs and through the next rate proceeding for operation and maintenance expenses. As of September 30, 2017, Houston Electric recorded an increase of $4 million in property, plant and equipment and $73 million in regulatory assets, net of $23 million in insurance receivables recorded, for restoration costs incurred. As a result, storm restoration costs should not materially affect Houston Electric’s reported net income for 2017. Currently, NGD estimates that total costs to restore natural gas distribution facilities damaged as a result of Hurricane Harvey will range from $25 million to $30 million and estimates that the total restoration costs covered by insurance will be approximately $17 million . NGD will defer the uninsured storm restoration costs as management believes it is probable that such costs will be recovered through traditional rate adjustment mechanisms for capital costs and through the next rate proceeding for operation and maintenance expenses. As of September 30, 2017, NGD has recorded approximately $7 million in regulatory assets, net of $2 million of insurance receivables recorded, for restoration costs incurred. As a result, storm restoration costs should not materially affect CERC’s reported net income for 2017. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments [Text Block] | Derivative Instruments CenterPoint Energy is exposed to various market risks. These risks arise from transactions entered into in the normal course of business. CenterPoint Energy utilizes derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices, weather and interest rates on its operating results and cash flows. Such derivatives are recognized in CenterPoint Energy’s Condensed Consolidated Balance Sheets at their fair value unless CenterPoint Energy elects the normal purchase and sales exemption for qualified physical transactions. A derivative may be designated as a normal purchase or sale if the intent is to physically receive or deliver the product for use or sale in the normal course of business. CenterPoint Energy has a Risk Oversight Committee composed of corporate and business segment officers that oversees commodity price, weather and credit risk activities, including CenterPoint Energy’s marketing, risk management services and hedging activities. The committee’s duties are to establish CenterPoint Energy’s commodity risk policies, allocate board-approved commercial risk limits, approve the use of new products and commodities, monitor positions and ensure compliance with CenterPoint Energy’s risk management policies, procedures and limits established by CenterPoint Energy’s board of directors. CenterPoint Energy’s policies prohibit the use of leveraged financial instruments. A leveraged financial instrument, for this purpose, is a transaction involving a derivative whose financial impact will be based on an amount other than the notional amount or volume of the instrument. (a) Non-Trading Activities Derivative Instruments. CenterPoint Energy enters into certain derivative instruments to mitigate the effects of commodity price movements. Certain financial instruments used to hedge portions of the natural gas inventory of the Energy Services business segment are designated as fair value hedges for accounting purposes. All other financial instruments do not qualify or are not designated as cash flow or fair value hedges. Weather Hedges. CenterPoint Energy has weather normalization or other rate mechanisms that mitigate the impact of weather on NGD in Arkansas, Louisiana, Mississippi, Minnesota and Oklahoma. NGD and electric operations in Texas do not have such mechanisms, although fixed customer charges are historically higher in Texas for NGD compared to CenterPoint Energy’s other jurisdictions. As a result, fluctuations from normal weather may have a positive or negative effect on NGD’s results in Texas and on Houston Electric’s results in its service territory. CenterPoint Energy entered into heating-degree day swaps for certain NGD Texas jurisdictions to mitigate the effect of fluctuations from normal weather on its results of operations and cash flows for the 2017–2018 winter heating season, which contained a bilateral dollar cap of $8 million . However, CenterPoint Energy did not enter into heating-degree day swaps for NGD jurisdictions for the 2015–2016 or 2016–2017 winter heating seasons. CenterPoint Energy entered into weather hedges for the Houston Electric service territory to mitigate the effect of fluctuations from normal weather on its results of operations and cash flows, which contained bilateral dollar caps of $7 million , $9 million and $9 million for the 2015–2016, 2016–2017 and 2017–2018 winter seasons, respectively. The swaps are based on heating degree days at 10 -year normal weather. During both the three months ended September 30, 2017 and 2016 , CenterPoint Energy recognized no gains or losses related to these swaps. During the nine months ended September 30, 2017 and 2016 , CenterPoint Energy recognized gains of $1 million and $3 million , respectively, related to these swaps. Weather hedge gains and losses are included in revenues in the Condensed Statements of Consolidated Income. Hedging of Interest Expense for Future Debt Issuances. In January 2017, Houston Electric entered into forward interest rate agreements with several counterparties, having an aggregate notional amount of $150 million . These agreements were executed to hedge, in part, volatility in the 10-year U.S. treasury rate by reducing Houston Electric’s exposure to variability in cash flows related to interest payments of Houston Electric’s $300 million issuance of fixed rate debt in January 2017. These forward interest rate agreements were designated as cash flow hedges. Accordingly, the effective portion of realized losses associated with the agreements, which totaled approximately $0.5 million , is a component of accumulated other comprehensive income in 2017 and will be amortized over the life of the bonds. In 2017, CenterPoint Energy entered into forward interest rate agreements with several counterparties, having an aggregate notional amount of $350 million . These agreements were executed to hedge, in part, volatility in the 5-year U.S. treasury rate by reducing CenterPoint Energy’s exposure to variability in cash flows relating to interest payments of CenterPoint Energy’s $500 million issuance of fixed rate debt in August 2017. These forward interest rate agreements were designated as cash flow hedges. Accordingly, the effective portion of realized losses associated with the agreements, which totaled approximately $2.9 million , is a component of accumulated other comprehensive income in 2017 and will be amortized over the life of the notes. In August 2017, CERC Corp. entered into forward interest rate agreements with several counterparties, having an aggregate notional amount of $150 million . These agreements were executed to hedge, in part, volatility in the 30-year U.S. treasury rate by reducing CERC Corp.’s exposure to variability in cash flows related to interest payments of CERC Corp.’s $300 million issuance of fixed rate debt in August 2017. These forward interest rate agreements were designated as cash flow hedges. Accordingly, the effective portion of realized losses associated with the agreements, which totaled approximately $1.5 million , is a component of accumulated other comprehensive income in 2017 and will be amortized over the life of the notes. (b) Derivative Fair Values and Income Statement Impacts The following tables present information about CenterPoint Energy’s derivative instruments and hedging activities. The first four tables provide a balance sheet overview of CenterPoint Energy’s Derivative Assets and Liabilities as of September 30, 2017 and December 31, 2016 , while the last table provides a breakdown of the related income statement impacts for the three and nine months ended September 30, 2017 and 2016 . Fair Value of Derivative Instruments September 30, 2017 Derivatives designated as fair value hedges: Balance Sheet Location Derivative Assets Fair Value Derivative Liabilities Fair Value (in millions) Natural gas derivatives (1) (2) (3) Current Assets: Non-trading derivative assets $ — $ — Natural gas derivatives (1) (2) (3) Current Liabilities: Non-trading derivative liabilities 5 — Derivatives not designated as hedging instruments: Natural gas derivatives (1) (2) (3) Current Assets: Non-trading derivative assets 65 2 Natural gas derivatives (1) (2) (3) Other Assets: Non-trading derivative assets 58 2 Natural gas derivatives (1) (2) (3) Current Liabilities: Non-trading derivative liabilities 27 55 Natural gas derivatives (1) (2) (3) Other Liabilities: Non-trading derivative liabilities 9 25 Indexed debt securities derivative Current Liabilities — 776 Total $ 164 $ 860 (1) The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 1,866 Bcf or a net 46 Bcf long position. 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 the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $93 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, impacted by collateral netting of $13 million . (3) Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. Offsetting of Natural Gas Derivative Assets and Liabilities September 30, 2017 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 $ 97 $ (33 ) $ 64 Other Assets: Non-trading derivative assets 67 (11 ) 56 Current Liabilities: Non-trading derivative liabilities (57 ) 40 (17 ) Other Liabilities: Non-trading derivative liabilities (27 ) 17 (10 ) Total $ 80 $ 13 $ 93 (1) Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. (2) The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. Fair Value of Derivative Instruments December 31, 2016 Derivatives not designated as hedging instruments Balance Sheet Location Derivative Assets Fair Value Derivative Liabilities Fair Value (in millions) Natural gas derivatives (1) (2) (3) Current Assets: Non-trading derivative assets $ 79 $ 14 Natural gas derivatives (1) (2) (3) Other Assets: Non-trading derivative assets 24 5 Natural gas derivatives (1) (2) (3) Current Liabilities: Non-trading derivative liabilities 2 43 Natural gas derivatives (1) (2) (3) Other Liabilities: Non-trading derivative liabilities — 5 Indexed debt securities derivative Current Liabilities — 717 Total (4) $ 105 $ 784 (1) The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 1,035 Bcf or a net 59 Bcf long position. 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 the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $24 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, impacted by collateral netting of $14 million . (3) Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. (4) No derivatives were designated as fair value hedges as of December 31, 2016. Offsetting of Natural Gas Derivative Assets and Liabilities December 31, 2016 Gross Amounts Recognized (1) Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets (2) (in millions) Current Assets: Non-trading derivative assets $ 81 $ (30 ) $ 51 Other Assets: Non-trading derivative assets 24 (5 ) 19 Current Liabilities: Non-trading derivative liabilities (57 ) 16 (41 ) Other Liabilities: Non-trading derivative liabilities (10 ) 5 (5 ) Total $ 38 $ (14 ) $ 24 (1) Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. (2) The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. Realized and unrealized gains and losses on natural gas derivatives are recognized in the Condensed Statements of Consolidated Income as revenue for physical sales derivative contracts and as natural gas expense for financial natural gas derivatives and physical purchase natural gas derivatives. Realized and unrealized gains and losses on indexed debt securities are recorded as Other Income (Expense) in the Condensed Statements of Consolidated Income. Hedge ineffectiveness is recorded as a component of natural gas expense and primarily results from differences in the location of the derivative instrument and the hedged item. Basis ineffectiveness arises from natural gas market price differences between the locations of the hedged inventory and the delivery location specified in the hedge instruments. The impact of natural gas derivatives designated as fair value hedges, the related hedged item, and natural gas derivatives not designated as hedging instruments are presented in the table below. Income Statement Impact of Derivative Activity Three Months Ended September 30, Income Statement Location 2017 2016 Derivatives designated as fair value hedges: (in millions) Natural gas derivatives Gains (Losses) in Expenses: Natural Gas $ (4 ) $ — Fair value adjustments for natural gas inventory designated as the hedged item Gains (Losses) in Expenses: Natural Gas 4 — Total increase in Expenses: Natural Gas (1) $ — $ — Derivatives not designated as hedging instruments: Natural gas derivatives Gains (Losses) in Revenues $ 30 $ 31 Natural gas derivatives Gains (Losses) in Expenses: Natural Gas (9 ) (13 ) Indexed debt securities derivative Gains (Losses) in Other Income (Expense) (36 ) (72 ) Total - derivatives not designated as hedging instruments $ (15 ) $ (54 ) Income Statement Impact of Derivative Activity Nine Months Ended September 30, Income Statement Location 2017 2016 Derivatives designated as fair value hedges: (in millions) Natural gas derivatives Gains (Losses) in Expenses: Natural Gas $ 8 $ — Fair value adjustments for natural gas inventory designated as the hedged item Gains (Losses) in Expenses: Natural Gas (10 ) — Total increase in Expenses: Natural Gas (1) $ (2 ) $ — Derivatives not designated as hedging instruments: Natural gas derivatives Gains (Losses) in Revenues $ 162 $ 1 Natural gas derivatives Gains (Losses) in Expenses: Natural Gas (91 ) 35 Indexed debt securities derivative Gains (Losses) in Other Income (Expense) (59 ) (258 ) Total - derivatives not designated as hedging instruments $ 12 $ (222 ) (1) Hedge ineffectiveness results from the basis ineffectiveness discussed above, and excludes the impact to natural gas expense from timing ineffectiveness. Timing ineffectiveness arises due to changes in the difference between the spot price and the futures price, as well as the difference between the timing of the settlement of the futures and the valuation of the underlying physical commodity. As the commodity contract nears the settlement date, spot-to-forward price differences should converge, which should reduce or eliminate the impact of this ineffectiveness on natural gas expense. (c) Credit Risk Contingent Features CenterPoint Energy enters into financial derivative contracts containing material adverse change provisions. These provisions could require CenterPoint Energy to post additional collateral if the S&P or Moody’s credit ratings of CenterPoint Energy, Inc. or its subsidiaries are downgraded. The total fair value of the derivative instruments that contain credit risk contingent features that are in a net liability position as of both September 30, 2017 and December 31, 2016 was $1 million . CenterPoint Energy posted no assets as collateral toward derivative instruments that contain credit risk contingent features as of either September 30, 2017 or December 31, 2016 . If all derivative contracts (in a net liability position) containing credit risk contingent features were triggered as of September 30, 2017 and December 31, 2016 , $1 million and $-0- , respectively, of additional assets would be required to be posted as collateral. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements [Text Block] | Fair Value Measurements Assets and liabilities that are recorded at fair value in the Condensed Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined below and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are exchange-traded derivatives and equity securities, as well as natural gas inventory that has been designated as the hedged item in a fair value hedge. Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value CenterPoint Energy’s Level 2 assets or liabilities. Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Unobservable inputs reflect CenterPoint Energy’s judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. CenterPoint Energy develops these inputs based on the best information available, including CenterPoint Energy’s own data. A market approach is utilized to value CenterPoint Energy’s Level 3 assets or liabilities. As of September 30, 2017 , CenterPoint Energy’s Level 3 assets and liabilities are comprised of physical natural gas forward contracts and options and its indexed debt securities. Level 3 physical natural gas forward contracts are valued using a discounted cash flow model which includes illiquid forward price curve locations (ranging from $1.08 to $5.83 per MMBtu) as an unobservable input. Level 3 options are valued through Black-Scholes (including forward start) option models which include option volatilities (ranging from 0% to 87% ) as an unobservable input. CenterPoint Energy’s Level 3 physical natural gas forward contracts and options derivative assets and liabilities consist of both long and short positions (forwards and options) and their fair value is sensitive to forward prices and volatilities. If forward prices decrease, CenterPoint Energy’s long forwards lose value whereas its short forwards gain in value. If volatility decreases, CenterPoint Energy’s long options lose value whereas its short options gain in value. CenterPoint Energy’s Level 3 indexed debt securities are valued using a Black-Scholes option model and a discounted cash flow model, which use option volatility ( 11.4% ) and a projected dividend growth rate ( 7% ) as unobservable inputs. An increase in either volatilities or projected dividends will increase the value of the indexed debt securities, and a decrease in either the volatilities or projected dividends will decrease the value of the indexed debt securities. CenterPoint Energy determines the appropriate level for each financial asset and liability on a quarterly basis and recognizes transfers between levels at the end of the reporting period. For the nine months ended September 30, 2017 , there were no transfers between Level 1 and 2. CenterPoint Energy also recognizes purchases of Level 3 financial assets and liabilities at their fair market value at the end of the reporting period. The following tables present information about CenterPoint Energy’s assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 , and indicate the fair value hierarchy of the valuation techniques utilized by CenterPoint Energy to determine such fair value. September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustments (1) Balance (in millions) Assets Corporate equities $ 1,060 $ — $ — $ — $ 1,060 Investments, including money market funds (2) 67 — — — 67 Natural gas derivatives (3) 3 128 33 (44 ) 120 Hedged portion of natural gas inventory 65 — — — 65 Total assets $ 1,195 $ 128 $ 33 $ (44 ) $ 1,312 Liabilities Indexed debt securities derivative $ — $ — $ 776 $ — $ 776 Natural gas derivatives (3) 3 74 7 (57 ) 27 Total liabilities $ 3 $ 74 $ 783 $ (57 ) $ 803 (1) Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $13 million posted with the same counterparties. (2) Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. (3) Natural gas derivatives include no material amounts related to physical forward transactions with Enable. December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustments (1) Balance (in millions) Assets Corporate equities $ 956 $ — $ — $ — $ 956 Investments, including money market funds (2) 77 — — — 77 Natural gas derivatives (3) 11 74 20 (35 ) 70 Total assets $ 1,044 $ 74 $ 20 $ (35 ) $ 1,103 Liabilities Indexed debt securities derivative $ — $ — $ 717 $ — $ 717 Natural gas derivatives (3) 4 56 7 (21 ) 46 Total liabilities $ 4 $ 56 $ 724 $ (21 ) $ 763 (1) Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $14 million held by CES from the same counterparties. (2) Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. (3) Natural gas derivatives include no material amounts related to physical forward transactions with Enable. The following table presents additional information about assets or liabilities, including derivatives that are measured at fair value on a recurring basis for which CenterPoint Energy has utilized Level 3 inputs to determine fair value: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Derivative assets and liabilities, net Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Beginning balance $ (712 ) $ 16 $ (704 ) $ 12 Purchases (1) — — — 12 Total gains (losses) (38 ) 9 (38 ) 13 Total settlements (1 ) (8 ) (5 ) (24 ) Transfers into Level 3 7 — 9 5 Transfers out of Level 3 (6 ) — (12 ) (1 ) Ending balance (2) $ (750 ) $ 17 $ (750 ) $ 17 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date (3) $ (36 ) $ 6 $ (42 ) $ 14 (1) Mark-to-market value of Level 3 derivative assets acquired through the purchase of AEM was less than $1 million at the acquisition date. (2) CenterPoint Energy did not have significant Level 3 sales during either of the three or nine months ended September 30, 2017 or 2016 . (3) During 2016, CenterPoint Energy transferred its indexed debt securities from Level 2 to Level 3 to reflect changes in the significance of the unobservable inputs used in the valuation. As of September 30, 2017 , the indexed debt securities liability was $776 million . During the three and nine months ended September 30, 2017 , there was a loss of $36 million and $59 million , respectively, on the indexed debt securities. Estimated Fair Value of Financial Instruments The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Condensed Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy. September 30, 2017 December 31, 2016 Carrying Fair Carrying Amount Fair Value (in millions) Financial liabilities: Long-term debt $ 8,513 $ 9,005 $ 8,443 $ 8,846 |
Unconsolidated Affiliate
Unconsolidated Affiliate | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Affiliate [Text Block] | Unconsolidated Affiliate CenterPoint Energy has the ability to significantly influence the operating and financial policies of Enable, a publicly traded MLP, and, accordingly, accounts for its investment in Enable’s common units using the equity method of accounting. CenterPoint Energy’s maximum exposure to loss related to Enable, a VIE in which CenterPoint Energy is not the primary beneficiary, is limited to its equity investment and Series A Preferred Unit investment as presented in the Condensed Consolidated Balance Sheets as of September 30, 2017 and outstanding current accounts receivable from Enable. Transactions with Enable: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Reimbursement of transition services (1) $ — $ 1 $ 3 $ 6 Natural gas expenses, including transportation and storage costs 23 22 80 79 Interest income related to notes receivable from Enable — — — 1 (1) Represents amounts billed under the Transition Agreements for certain support services provided to Enable. Actual transition services costs are recorded net of reimbursement. September 30, 2017 December 31, 2016 (in millions) Accounts receivable for amounts billed for transition services $ 1 $ 1 Accounts payable for natural gas purchases from Enable 8 10 Limited Partner Interest in Enable (1) : September 30, 2017 CenterPoint Energy 54.1 % OGE 25.7 % (1) Excluding the Series A Preferred Units owned by CenterPoint Energy. In November 2016, Enable completed a public offering of 11,500,000 common units of which 1,424,281 were sold by ArcLight Capital Partners, LLC. The common units issued and sold by Enable resulted in dilution of both CenterPoint Energy’s and OGE’s limited partner interest in Enable. Enable Common Units and Series A Preferred Units Held: September 30, 2017 Common Series A Preferred CenterPoint Energy 233,856,623 14,520,000 OGE 110,982,805 — The 139,704,916 subordinated units previously owned by CERC Corp. converted into common units of Enable on a one-for-one basis, on August 30, 2017, at the end of the subordination period, as set forth in Enable’s Fourth Amended and Restated Agreement of Limited Partnership. Upon conversion, holders of common units resulting from the conversion of subordinated units have all the rights and obligations of unitholders holding all other common units, including the right to receive distributions pro rata made with respect to common units. Generally, sales of more than 5% of the aggregate of the common units CenterPoint Energy owns in Enable or sales by OGE of more than 5% of the aggregate of the common units it owns in Enable are subject to mutual rights of first offer and first refusal. Enable is controlled jointly by CERC Corp. and OGE, and each own 50% of the management rights in the general partner of Enable. Sale of CenterPoint Energy’s or OGE’s ownership interests in Enable’s general partner 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’s general partner. Summarized unaudited consolidated income information for Enable is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Operating revenues $ 705 $ 620 $ 1,997 $ 1,658 Cost of sales, excluding depreciation and amortization 349 268 936 717 Impairment of goodwill and other long-lived assets — 8 — 8 Operating income 137 139 399 299 Net income attributable to Enable 104 110 301 231 Reconciliation of Equity in Earnings, net: CenterPoint Energy’s interest $ 56 $ 61 $ 163 $ 128 Basis difference amortization (1) 12 12 36 36 CenterPoint Energy’s equity in earnings, net $ 68 $ 73 $ 199 $ 164 (1) Equity in earnings of unconsolidated affiliates includes CenterPoint Energy’s share of Enable’s earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in Enable’s net assets. The basis difference is amortized over approximately 33 years, the average life of the assets to which the basis difference is attributed. Summarized unaudited consolidated balance sheet information for Enable is as follows: September 30, December 31, 2016 (in millions) Current assets $ 446 $ 396 Non-current assets 10,816 10,816 Current liabilities 831 362 Non-current liabilities 2,740 3,056 Non-controlling interest 12 12 Preferred equity 362 362 Enable partners’ equity 7,317 7,420 Reconciliation of Equity Method Investment in Enable: CenterPoint Energy’s ownership interest in Enable partners’ capital $ 4,007 $ 4,067 CenterPoint Energy’s basis difference (1,526 ) (1,562 ) CenterPoint Energy’s equity method investment in Enable $ 2,481 $ 2,505 Distributions Received from Unconsolidated Affiliate: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Investment in Enable’s common units $ 74 $ 74 $ 223 $ 223 Investment in Enable’s Series A Preferred Units 9 9 27 13 As of September 30, 2017 , CERC Corp. and OGE also own 40% and 60% , respectively, of the incentive distribution rights held by the general partner of Enable. 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 its general partner 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, the general partner will receive increasing percentages or incentive distributions rights, up to 50% , of the cash Enable distributes in excess of that amount. In certain circumstances the general partner of Enable 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. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill [Text Block] | Goodwill Goodwill by reportable business segment as of December 31, 2016 and changes in the carrying amount of goodwill as of September 30, 2017 are as follows: December 31, 2016 AEM Acquisition (1) September 30, (in millions) Natural Gas Distribution $ 746 $ — $ 746 Energy Services 105 (2) 5 110 (2) Other Operations 11 — 11 Total $ 862 $ 5 $ 867 (1) See Note 3. (2) Amount presented is net of the accumulated goodwill impairment charge of $252 million recorded in 2012. CenterPoint Energy performs its goodwill impairment tests at least annually and evaluates goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. The impairment evaluation for goodwill is performed using a two-step process. In the first step, the fair value of each reporting unit is compared with the carrying amount of the reporting unit, including goodwill. The estimated fair value of the reporting unit is generally determined on the basis of discounted cash flows. If the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, then a second step must be completed to determine the amount of the goodwill impairment that should be recorded. In the second step, the implied fair value of the reporting unit’s goodwill is determined by allocating the reporting unit’s fair value to all of its assets and liabilities other than goodwill (including any unrecognized intangible assets) in a manner similar to a purchase price allocation. The resulting implied fair value of the goodwill that results from the application of this second step is then compared to the carrying amount of the goodwill and an impairment charge is recorded for the difference. CenterPoint Energy performed its annual impairment test in the third quarter of 2017 and determined, based on the results of the first step, that no impairment charge was required for any reportable segment. |
Indexed Debt Securities (ZENS)
Indexed Debt Securities (ZENS) and Securities Related to ZENS | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Indexed Debt Securities [Text Block] | Indexed Debt Securities (ZENS) and Securities Related to ZENS (a) Investment in Securities Related to ZENS In 1995, CenterPoint Energy sold a cable television subsidiary to TW and received TW securities as partial consideration. A subsidiary of CenterPoint Energy now holds 7.1 million shares of TW Common, 0.9 million shares of Time Common and 0.9 million shares of Charter Common, which are classified as trading securities and are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. Unrealized gains and losses resulting from changes in the market value of the TW Securities are recorded in CenterPoint Energy’s Condensed Statements of Consolidated Income. (b) ZENS In September 1999, CenterPoint Energy issued ZENS having an original principal amount of $1 billion of which $828 million remain outstanding as of September 30, 2017 . Each ZENS was originally exchangeable at the holder’s option at any time for an amount of cash equal to 95% of the market value of the reference shares of TW Common attributable to such note. The number and identity of the reference shares attributable to each ZENS are adjusted for certain corporate events. As of September 30, 2017 , the reference shares for each ZENS consisted of 0.5 share of TW Common, 0.0625 share of Time Common and 0.061382 share of Charter Common, and the contingent principal balance was $507 million . On October 22, 2016, AT&T announced that it had entered into a definitive agreement to acquire TW in a stock and cash transaction. On February 15, 2017, TW shareholders approved the announced transaction with AT&T. Pursuant to the merger agreement, upon closing of the merger, TW shareholders would receive for each of their shares of TW Common an estimated implied value of $107.50 , comprised of $53.75 per share in cash and $53.75 per share in AT&T Common. The stock portion will be subject to a collar such that TW shareholders will receive 1.437 shares of AT&T Common if AT&T Common’s average stock price is below $37.411 at closing and 1.3 shares of AT&T Common if AT&T Common’s average stock price is above $41.349 at closing. Cash received for the TW Common reference shares would subsequently be distributed to ZENS holders, which is expected to reduce the contingent principal balance, and reference shares would consist of Charter Common, Time Common and AT&T Common. AT&T has publicly announced that the merger is expected to close by the end of 2017. |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Long-term Debt [Text Block] | Short-term Borrowings and Long-term Debt (a) Short-term Borrowings Inventory Financing . NGD currently has AMAs associated with its utility distribution service in Arkansas, north Louisiana and Oklahoma that extend through 2020. Pursuant to the provisions of the agreements, NGD sells natural gas and agrees to repurchase an equivalent amount of natural gas during the winter heating seasons at the same cost, plus a financing charge. These transactions are accounted for as an inventory financing and had an associated principal obligation of $48 million and $35 million as of September 30, 2017 and December 31, 2016 , respectively. (b) Long-term Debt Debt Retirements . In February 2017, CenterPoint Energy retired $250 million aggregate principal amount of its 5.95% senior notes at their maturity. The retirement of senior notes was financed by the issuance of commercial paper. Debt Issuances. During the nine months ended September 30, 2017 , CenterPoint Energy, Houston Electric and CERC Corp. issued the following debt instruments: Issuance Date Debt Instrument Aggregate Principal Amount Interest Rate Maturity Date (in millions) Houston Electric January 2017 General mortgage bonds $ 300 3.00% 2027 CenterPoint Energy August 2017 Unsecured senior notes 500 2.50% 2022 CERC Corp. August 2017 Unsecured senior notes 300 4.10% 2047 The proceeds from the issuances were used for general limited liability company and corporate purposes, as applicable, including to repay portions of outstanding commercial paper. Credit Facilities. In June 2017, CenterPoint Energy, Houston Electric and CERC Corp. each entered into amendments to their respective revolving credit facilities to extend the termination date thereof from March 3, 2021 to March 3, 2022 and to terminate the swingline loan subfacility thereunder. The amendments to the CenterPoint Energy and CERC Corp. revolving credit facilities also increased the aggregate commitments by $100 million and $300 million , respectively, to $1.7 billion and $900 million under their respective revolving credit facilities. No changes were made to the aggregate commitments under the Houston Electric revolving credit facility. In connection with the amendments to increase the aggregate commitments under their respective revolving credit facilities, CenterPoint Energy and CERC Corp. each increased the size of their respective commercial paper programs to permit the issuance of commercial paper notes in an aggregate principal amount not to exceed $1.7 billion and $900 million , respectively, at any time outstanding. As of September 30, 2017 and December 31, 2016 , CenterPoint Energy, Houston Electric and CERC Corp. had the following revolving credit facilities and utilization of such facilities: September 30, 2017 December 31, 2016 Size of Loans Letters Commercial Size of Loans Letters Commercial (in millions) CenterPoint Energy $ 1,700 $ — $ 6 $ 447 (1) $ 1,600 $ — $ 6 $ 835 (1) Houston Electric 300 — 4 — 300 — 4 — CERC Corp. 900 — — 529 (2) 600 — 4 569 (2) Total $ 2,900 $ — $ 10 $ 976 $ 2,500 $ — $ 14 $ 1,404 (1) Weighted average interest rate was 1.42% and 1.04% as of September 30, 2017 and December 31, 2016 , respectively. (2) Weighted average interest rate was 1.43% and 1.03% as of September 30, 2017 and December 31, 2016 , respectively. Execution Date Company Size of Facility Draw Rate of LIBOR plus (2) Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio Debt for Borrowed Money to Capital Ratio as of September 30, 2017 (3) Termination Date (5) (in millions) March 3, 2016 CenterPoint Energy $ 1,700 (1) 1.250% 65% (4) 56.9% March 3, 2022 March 3, 2016 Houston Electric 300 1.125% 65% (4) 49.0% March 3, 2022 March 3, 2016 CERC Corp. 900 (1) 1.250% 65% 38.6% March 3, 2022 (1) Amended on June 16, 2017 to increase the aggregate commitment size as noted above. (2) Based on current credit ratings. (3) As defined in the revolving credit facility agreement, excluding Securitization Bonds. (4) The financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive 12 -month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification. (5) Amended on June 16, 2017 to extend the termination date as noted above. CenterPoint Energy, Houston Electric and CERC Corp. were in compliance with all financial debt covenants as of September 30, 2017 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Income Taxes The effective tax rate reported for the three months ended September 30, 2017 was 37% compared to 35% for the same period in 2016. The higher effective tax rate for the three months ended September 30, 2017 was primarily due to the tax effects of receiving less nontaxable income in the period. The effective tax rate reported for the nine months ended September 30, 2017 was 36% compared to 37% for the same period in 2016. CenterPoint Energy reported no uncertain tax liability as of September 30, 2017 and expects no significant change to the uncertain tax liability over the next twelve months. Tax years through 2015 have been audited and settled with the IRS. For the 2016 and 2017 tax years, CenterPoint Energy is a participant in the IRS’s Compliance Assurance Process. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies (a) Natural Gas Supply Commitments Natural gas supply commitments include natural gas contracts related to CenterPoint Energy’s Natural Gas Distribution and Energy Services business segments, which have various quantity requirements and durations, that are not classified as non-trading derivative assets and liabilities in CenterPoint Energy’s Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 as these contracts meet an exception as “normal purchases contracts” or do not meet the definition of a derivative. Natural gas supply commitments also include natural gas transportation contracts that do not meet the definition of a derivative. As of September 30, 2017 , minimum payment obligations for natural gas supply commitments are approximately: (in millions) Remaining three months of 2017 $ 169 2018 507 2019 348 2020 166 2021 76 2022 and beyond 113 (b) Legal, Environmental and Other Matters Legal Matters Gas Market Manipulation Cases. CenterPoint Energy, Houston Electric or their predecessor, Reliant Energy, and certain of their former subsidiaries have been named as defendants in certain lawsuits described below. Under a master separation agreement between CenterPoint Energy and a former subsidiary, RRI, CenterPoint Energy and its subsidiaries are entitled to be indemnified by RRI and its successors for any losses, including certain attorneys’ fees and other costs, arising out of these lawsuits. In May 2009, RRI sold its Texas retail business to a subsidiary of NRG and RRI changed its name to RRI Energy, Inc. In December 2010, Mirant Corporation merged with and became a wholly-owned subsidiary of RRI, and RRI changed its name to GenOn. In December 2012, NRG acquired GenOn through a merger in which GenOn became a wholly-owned subsidiary of NRG. None of the sale of the retail business, the merger with Mirant Corporation, or the acquisition of GenOn by NRG alters RRI’s (now GenOn’s) contractual obligations to indemnify CenterPoint Energy and its subsidiaries, including Houston Electric, for certain liabilities, including their indemnification obligations regarding the gas market manipulation litigation. A large number of lawsuits were filed against numerous gas market participants in a number of federal and western state courts in connection with the operation of the natural gas markets in 2000–2002. CenterPoint Energy and its affiliates have since been released or dismissed from all such cases. CES, a subsidiary of CERC Corp., was a defendant in a case now pending in federal court in Nevada alleging a conspiracy to inflate Wisconsin natural gas prices in 2000–2002. On May 24, 2016, the district court granted CES’s motion for summary judgment, dismissing CES from the case. The plaintiffs have appealed that ruling. CenterPoint Energy and CES intend to continue vigorously defending against the plaintiffs’ claims. In June 2017, GenOn and various affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code. CenterPoint Energy, CERC, and CES submitted proofs of claim in the bankruptcy proceedings to protect their indemnity rights. If GenOn were unable to meet its indemnity obligations or satisfy a liability that has been assumed in the gas market manipulation litigation, then CenterPoint Energy, Houston Electric or CERC could incur liability and be responsible for satisfying the liability. CenterPoint Energy does not expect the ultimate outcome of the case against CES to have a material adverse effect on its financial condition, results of operations or cash flows. Minnehaha Academy. On August 2, 2017, a natural gas explosion occurred at the Minnehaha Academy in Minneapolis, Minnesota, resulting in the deaths of two school employees, serious injuries to others and significant property damage to the school. CenterPoint Energy, certain of its subsidiaries, and the contractor company working in the school have been named in litigation arising out of this incident. Additionally, CenterPoint Energy is cooperating with ongoing investigations conducted by the National Transportation Safety Board, the Minnesota Occupational Safety and Health Administration and the Minnesota Office of Pipeline Safety. CenterPoint Energy’s general and excess liability insurance policies provide coverage for third party bodily injury and property damage claims. Environmental Matters MGP Sites. CERC and its predecessors operated MGPs in the past. With respect to certain Minnesota MGP sites, CERC has completed state-ordered remediation and continues state-ordered monitoring and water treatment. As of September 30, 2017 , CERC had a recorded liability of $7 million for continued monitoring and any future remediation required by regulators in Minnesota. The estimated range of possible remediation costs for the sites for which CERC believes it may have responsibility was $4 million to $30 million based on remediation continuing for 30 to 50 years. The cost estimates are based on studies of a site or industry average costs for remediation of sites of similar size. The actual remediation costs will depend on the number of sites to be remediated, the participation of other PRPs, if any, and the remediation methods used. In addition to the Minnesota sites, the Environmental Protection Agency and other regulators have investigated MGP sites that were owned or operated by CERC or may have been owned by one of its former affiliates. CenterPoint Energy does not expect the ultimate outcome of these matters to have a material adverse effect on the financial condition, results of operations or cash flows of either CenterPoint Energy or CERC. Asbestos. Some facilities owned by CenterPoint Energy or its predecessors contain or have contained asbestos insulation and other asbestos-containing materials. CenterPoint Energy and its subsidiaries are from time to time named, along with numerous others, as defendants in lawsuits filed by a number of individuals who claim injury due to exposure to asbestos, and CenterPoint Energy anticipates that additional claims may be asserted in the future. Although their ultimate outcome cannot be predicted at this time, CenterPoint Energy does not expect these matters, either individually or in the aggregate, to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows. Other Environmental. From time to time, CenterPoint Energy identifies the presence of environmental contaminants during its operations or on property where its predecessor companies have conducted operations. Other such sites involving contaminants may be identified in the future. CenterPoint Energy has and expects to continue to remediate identified sites consistent with its legal obligations. From time to time CenterPoint Energy has received notices from regulatory authorities or others regarding its status as a PRP in connection with sites found to require remediation due to the presence of environmental contaminants. In addition, CenterPoint Energy has been named from time to time as a defendant in litigation related to such sites. Although the ultimate outcome of such matters cannot be predicted at this time, CenterPoint Energy does not expect these matters, either individually or in the aggregate, to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows. Other Proceedings CenterPoint Energy is involved in other legal, environmental, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies regarding matters arising in the ordinary course of business. From time to time, CenterPoint Energy is also a defendant in legal proceedings with respect to claims brought by various plaintiffs against broad groups of participants in the energy industry. Some of these proceedings involve substantial amounts. CenterPoint Energy regularly analyzes current information and, as necessary, provides accruals for probable and reasonably estimable liabilities on the eventual disposition of these matters. CenterPoint Energy does not expect the disposition of these matters to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per share calculations: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions, except share and per share amounts) Net income $ 169 $ 179 $ 496 $ 331 Basic weighted average shares outstanding 431,026,000 430,682,000 430,939,000 430,581,000 Plus: Incremental shares from assumed conversions: Restricted stock 3,060,000 2,714,000 3,060,000 2,714,000 Diluted weighted average shares 434,086,000 433,396,000 433,999,000 433,295,000 Basic earnings per share Net income $ 0.39 $ 0.42 $ 1.15 $ 0.77 Diluted earnings per share Net income $ 0.39 $ 0.41 $ 1.14 $ 0.76 |
Reportable Business Segments
Reportable Business Segments | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reportable Business Segments [Text Block] | Reportable Business Segments CenterPoint Energy’s determination of reportable business segments considers the strategic operating units under which CenterPoint Energy manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. CenterPoint Energy uses operating income as the measure of profit or loss for its business segments other than Midstream Investments, where it uses equity in earnings of unconsolidated affiliates. CenterPoint Energy’s reportable business segments include the following: Electric Transmission & Distribution, Natural Gas Distribution, Energy Services, Midstream Investments and Other Operations. The electric transmission and distribution function (Houston Electric) is reported in the Electric Transmission & Distribution business segment. Natural Gas Distribution consists of intrastate natural gas sales to, and natural gas transportation and distribution for, residential, commercial, industrial and institutional customers. Energy Services represents CenterPoint Energy’s non-rate regulated gas sales and services operations. Midstream Investments consists of CenterPoint Energy’s equity investment in Enable (excluding the Series A Preferred Units). Other Operations consists primarily of other corporate operations which support all of CenterPoint Energy’s business operations. Financial data for business segments is as follows: For the Three Months Ended September 30, 2017 Revenues from Net Operating (in millions) Electric Transmission & Distribution $ 843 (1) $ — $ 247 Natural Gas Distribution 390 8 19 Energy Services 861 10 7 Midstream Investments (2) — — — Other Operations 4 — 6 Eliminations — (18 ) — Consolidated $ 2,098 $ — $ 279 For the Three Months Ended September 30, 2016 Revenues from Net Operating (in millions) Electric Transmission & Distribution $ 908 (1) $ — $ 257 Natural Gas Distribution 370 7 22 Energy Services 608 6 5 Midstream Investments (2) — — — Other Operations 3 — — Eliminations — (13 ) — Consolidated $ 1,889 $ — $ 284 For the Nine Months Ended September 30, 2017 Revenues from External Customers Net Intersegment Revenues Operating Income Total Assets as of September 30, 2017 (in millions) Electric Transmission & Distribution $ 2,234 (1) $ — $ 489 $ 10,289 Natural Gas Distribution 1,767 24 220 6,067 Energy Services 2,964 34 58 1,337 Midstream Investments (2) — — — 2,481 Other Operations 11 — 9 2,694 (3) Eliminations — (58 ) — (733 ) Consolidated $ 6,976 $ — $ 776 $ 22,135 For the Nine Months Ended September 30, 2016 Revenues from Net Operating Total Assets as of December 31, 2016 (in millions) Electric Transmission & Distribution $ 2,331 (1) $ — $ 498 $ 10,211 Natural Gas Distribution 1,672 21 202 6,099 Energy Services 1,433 17 11 1,102 Midstream Investments (2) — — — 2,505 Other Operations 11 — 5 2,681 (3) Eliminations — (38 ) — (769 ) Consolidated $ 5,447 $ — $ 716 $ 21,829 (1) Electric Transmission & Distribution revenues from major customers are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Affiliates of NRG $ 221 $ 223 $ 540 $ 527 Affiliates of Vistra Energy Corp. 72 71 172 166 (2) Midstream Investments’ equity earnings are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Enable $ 68 $ 73 $ 199 $ 164 (3) Included in total assets of Other Operations as of September 30, 2017 and December 31, 2016 are pension and other postemployment-related regulatory assets of $715 million and $759 million , respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On October 25, 2017 , CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2675 per share of common stock payable on December 8, 2017 , to shareholders of record as of the close of business on November 16, 2017 . On October 31, 2017 , Enable declared a quarterly cash distribution of $0.318 per unit on all of its outstanding common units for the quarter ended September 30, 2017 . Accordingly, CERC Corp. expects to receive a cash distribution of approximately $74 million from Enable in the fourth quarter of 2017 to be made with respect to CERC Corp.’s investment in common units of Enable for the third quarter of 2017. On October 31, 2017 , Enable declared a quarterly cash distribution of $0.625 per Series A Preferred Unit for the quarter ended September 30, 2017 . Accordingly, CenterPoint Energy expects to receive a cash distribution of approximately $9 million from Enable in the fourth quarter of 2017 to be made with respect to CenterPoint Energy’s investment in Series A Preferred Units of Enable for the third quarter of 2017. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the final purchase price allocation and the fair value amounts recognized for the assets acquired and liabilities assumed related to the acquisition: (in millions) Total purchase price consideration $ 147 Cash $ 15 Receivables 140 Natural gas inventory 78 Derivative assets 35 Prepaid expenses and other current assets 5 Property and equipment 8 Identifiable intangibles 25 Total assets acquired 306 Accounts payable 113 Derivative liabilities 43 Other current liabilities 7 Other liabilities 1 Total liabilities assumed 164 Identifiable net assets acquired 142 Goodwill 5 Net assets acquired $ 147 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The estimated fair value of the identifiable intangible assets and related useful lives as included in the final purchase price allocation include: Estimate Fair Value Estimate Useful Life (in millions) (in years) Customer relationships $ 25 15 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma financial information reflects the consolidated results of operations of CenterPoint Energy, assuming the AEM acquisition had taken place on January 1, 2016. Adjustments to pro forma net income include intercompany sales, amortization of intangible assets, depreciation of fixed assets, interest expense associated with debt financing to fund the acquisition, and related income tax effects. The pro forma information does not include the mark-to-market impact of financial instruments designated as cash flow hedges of anticipated purchases and sales at index prices. The effective portion of these hedges are excluded from earnings and reported as changes in Other Comprehensive Income. Additionally, the pro forma information does not include the mark-to-market impact of physical forward transactions that were previously accounted for as normal purchase and sale transactions. The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations that would have been achieved had the acquisition taken place on the dates indicated or the future consolidated results of operations of the combined company. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Operating Revenue $ 2,098 $ 2,145 $ 6,976 $ 6,161 Net Income 169 179 496 335 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | CenterPoint Energy’s net periodic cost includes the following components relating to pension and postretirement benefits: Three Months Ended September 30, 2017 2016 Pension Postretirement Pension Postretirement (in millions) Service cost $ 9 $ — $ 10 $ 1 Interest cost 22 4 23 4 Expected return on plan assets (24 ) (1 ) (26 ) (2 ) Amortization of prior service cost (credit) 2 (1 ) 3 (1 ) Amortization of net loss 14 — 15 — Net periodic cost (2) $ 23 $ 2 $ 25 $ 2 Nine Months Ended September 30, 2017 2016 Pension Postretirement Pension Postretirement (in millions) Service cost $ 27 $ 1 $ 28 $ 2 Interest cost 66 12 70 13 Expected return on plan assets (72 ) (4 ) (76 ) (5 ) Amortization of prior service cost (credit) 7 (3 ) 7 (2 ) Amortization of net loss 43 — 47 — Curtailment gain (1) — — — (3 ) Net periodic cost (2) $ 71 $ 6 $ 76 $ 5 (1) A curtailment gain or loss is required when the expected future services of a significant number of current employees are reduced or eliminated for the accrual of benefits. In May 2016, Houston Electric entered into a renegotiated collective bargaining agreement with the IBEW Local Union 66 that provides that for Houston Electric union employees covered under the agreement who retire on or after January 1, 2017, retiree medical and prescription drug coverage will be provided exclusively through the NECA/IBEW Family Medical Care Plan in exchange for the payment of monthly premiums as determined under the agreement. As a result, the accrued postretirement benefits related to such future Houston Electric union retirees were eliminated. In 2016, Houston Electric recognized a curtailment gain of $3 million as an accelerated recognition of the prior service credit that would otherwise be recognized in future periods. (2) Net periodic cost in this table is before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes. |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | CenterPoint Energy’s changes in accumulated comprehensive loss related to defined benefit and postretirement plans are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Beginning Balance $ (70 ) $ (65 ) $ (72 ) $ (65 ) Other comprehensive income (loss) before reclassifications (1) — — — (4 ) Amounts reclassified from accumulated other comprehensive loss: Prior service cost (2) — 1 1 1 Actuarial losses (2) 2 2 5 5 Tax expense (2 ) (2 ) (4 ) (1 ) Net current period other comprehensive income — 1 2 1 Ending Balance $ (70 ) $ (64 ) $ (70 ) $ (64 ) (1) Total other comprehensive income (loss) is related to the remeasurement of the postretirement plan. (2) These accumulated other comprehensive components are included in the computation of net periodic cost. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments [Table Text Block] | Fair Value of Derivative Instruments December 31, 2016 Derivatives not designated as hedging instruments Balance Sheet Location Derivative Assets Fair Value Derivative Liabilities Fair Value (in millions) Natural gas derivatives (1) (2) (3) Current Assets: Non-trading derivative assets $ 79 $ 14 Natural gas derivatives (1) (2) (3) Other Assets: Non-trading derivative assets 24 5 Natural gas derivatives (1) (2) (3) Current Liabilities: Non-trading derivative liabilities 2 43 Natural gas derivatives (1) (2) (3) Other Liabilities: Non-trading derivative liabilities — 5 Indexed debt securities derivative Current Liabilities — 717 Total (4) $ 105 $ 784 (1) The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 1,035 Bcf or a net 59 Bcf long position. 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 the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $24 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, impacted by collateral netting of $14 million . (3) Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. (4) No derivatives were designated as fair value hedges as of December 31, 2016. The following tables present information about CenterPoint Energy’s derivative instruments and hedging activities. The first four tables provide a balance sheet overview of CenterPoint Energy’s Derivative Assets and Liabilities as of September 30, 2017 and December 31, 2016 , while the last table provides a breakdown of the related income statement impacts for the three and nine months ended September 30, 2017 and 2016 . Fair Value of Derivative Instruments September 30, 2017 Derivatives designated as fair value hedges: Balance Sheet Location Derivative Assets Fair Value Derivative Liabilities Fair Value (in millions) Natural gas derivatives (1) (2) (3) Current Assets: Non-trading derivative assets $ — $ — Natural gas derivatives (1) (2) (3) Current Liabilities: Non-trading derivative liabilities 5 — Derivatives not designated as hedging instruments: Natural gas derivatives (1) (2) (3) Current Assets: Non-trading derivative assets 65 2 Natural gas derivatives (1) (2) (3) Other Assets: Non-trading derivative assets 58 2 Natural gas derivatives (1) (2) (3) Current Liabilities: Non-trading derivative liabilities 27 55 Natural gas derivatives (1) (2) (3) Other Liabilities: Non-trading derivative liabilities 9 25 Indexed debt securities derivative Current Liabilities — 776 Total $ 164 $ 860 (1) The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 1,866 Bcf or a net 46 Bcf long position. 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 the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $93 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, impacted by collateral netting of $13 million . (3) Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. |
Offsetting of Natural Gas Derivative Assets and Liabilities [Table Text Block] | Offsetting of Natural Gas Derivative Assets and Liabilities December 31, 2016 Gross Amounts Recognized (1) Gross Amounts Offset in the Consolidated Balance Sheets Net Amount Presented in the Consolidated Balance Sheets (2) (in millions) Current Assets: Non-trading derivative assets $ 81 $ (30 ) $ 51 Other Assets: Non-trading derivative assets 24 (5 ) 19 Current Liabilities: Non-trading derivative liabilities (57 ) 16 (41 ) Other Liabilities: Non-trading derivative liabilities (10 ) 5 (5 ) Total $ 38 $ (14 ) $ 24 (1) Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. (2) The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. Offsetting of Natural Gas Derivative Assets and Liabilities September 30, 2017 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 $ 97 $ (33 ) $ 64 Other Assets: Non-trading derivative assets 67 (11 ) 56 Current Liabilities: Non-trading derivative liabilities (57 ) 40 (17 ) Other Liabilities: Non-trading derivative liabilities (27 ) 17 (10 ) Total $ 80 $ 13 $ 93 (1) Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. (2) The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. |
Income Statement Impact of Derivative Activity [Table Text Block] | Realized and unrealized gains and losses on natural gas derivatives are recognized in the Condensed Statements of Consolidated Income as revenue for physical sales derivative contracts and as natural gas expense for financial natural gas derivatives and physical purchase natural gas derivatives. Realized and unrealized gains and losses on indexed debt securities are recorded as Other Income (Expense) in the Condensed Statements of Consolidated Income. Hedge ineffectiveness is recorded as a component of natural gas expense and primarily results from differences in the location of the derivative instrument and the hedged item. Basis ineffectiveness arises from natural gas market price differences between the locations of the hedged inventory and the delivery location specified in the hedge instruments. The impact of natural gas derivatives designated as fair value hedges, the related hedged item, and natural gas derivatives not designated as hedging instruments are presented in the table below. Income Statement Impact of Derivative Activity Three Months Ended September 30, Income Statement Location 2017 2016 Derivatives designated as fair value hedges: (in millions) Natural gas derivatives Gains (Losses) in Expenses: Natural Gas $ (4 ) $ — Fair value adjustments for natural gas inventory designated as the hedged item Gains (Losses) in Expenses: Natural Gas 4 — Total increase in Expenses: Natural Gas (1) $ — $ — Derivatives not designated as hedging instruments: Natural gas derivatives Gains (Losses) in Revenues $ 30 $ 31 Natural gas derivatives Gains (Losses) in Expenses: Natural Gas (9 ) (13 ) Indexed debt securities derivative Gains (Losses) in Other Income (Expense) (36 ) (72 ) Total - derivatives not designated as hedging instruments $ (15 ) $ (54 ) Income Statement Impact of Derivative Activity Nine Months Ended September 30, Income Statement Location 2017 2016 Derivatives designated as fair value hedges: (in millions) Natural gas derivatives Gains (Losses) in Expenses: Natural Gas $ 8 $ — Fair value adjustments for natural gas inventory designated as the hedged item Gains (Losses) in Expenses: Natural Gas (10 ) — Total increase in Expenses: Natural Gas (1) $ (2 ) $ — Derivatives not designated as hedging instruments: Natural gas derivatives Gains (Losses) in Revenues $ 162 $ 1 Natural gas derivatives Gains (Losses) in Expenses: Natural Gas (91 ) 35 Indexed debt securities derivative Gains (Losses) in Other Income (Expense) (59 ) (258 ) Total - derivatives not designated as hedging instruments $ 12 $ (222 ) (1) Hedge ineffectiveness results from the basis ineffectiveness discussed above, and excludes the impact to natural gas expense from timing ineffectiveness. Timing ineffectiveness arises due to changes in the difference between the spot price and the futures price, as well as the difference between the timing of the settlement of the futures and the valuation of the underlying physical commodity. As the commodity contract nears the settlement date, spot-to-forward price differences should converge, which should reduce or eliminate the impact of this ineffectiveness on natural gas expense. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets and liabilities measured on a recurring basis [Table Text Block] | The following tables present information about CenterPoint Energy’s assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 , and indicate the fair value hierarchy of the valuation techniques utilized by CenterPoint Energy to determine such fair value. September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustments (1) Balance (in millions) Assets Corporate equities $ 1,060 $ — $ — $ — $ 1,060 Investments, including money market funds (2) 67 — — — 67 Natural gas derivatives (3) 3 128 33 (44 ) 120 Hedged portion of natural gas inventory 65 — — — 65 Total assets $ 1,195 $ 128 $ 33 $ (44 ) $ 1,312 Liabilities Indexed debt securities derivative $ — $ — $ 776 $ — $ 776 Natural gas derivatives (3) 3 74 7 (57 ) 27 Total liabilities $ 3 $ 74 $ 783 $ (57 ) $ 803 (1) Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $13 million posted with the same counterparties. (2) Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. (3) Natural gas derivatives include no material amounts related to physical forward transactions with Enable. December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Netting Adjustments (1) Balance (in millions) Assets Corporate equities $ 956 $ — $ — $ — $ 956 Investments, including money market funds (2) 77 — — — 77 Natural gas derivatives (3) 11 74 20 (35 ) 70 Total assets $ 1,044 $ 74 $ 20 $ (35 ) $ 1,103 Liabilities Indexed debt securities derivative $ — $ — $ 717 $ — $ 717 Natural gas derivatives (3) 4 56 7 (21 ) 46 Total liabilities $ 4 $ 56 $ 724 $ (21 ) $ 763 (1) Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $14 million held by CES from the same counterparties. (2) Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. (3) Natural gas derivatives include no material amounts related to physical forward transactions with Enable. |
Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs [Table Text Block] | The following table presents additional information about assets or liabilities, including derivatives that are measured at fair value on a recurring basis for which CenterPoint Energy has utilized Level 3 inputs to determine fair value: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Derivative assets and liabilities, net Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Beginning balance $ (712 ) $ 16 $ (704 ) $ 12 Purchases (1) — — — 12 Total gains (losses) (38 ) 9 (38 ) 13 Total settlements (1 ) (8 ) (5 ) (24 ) Transfers into Level 3 7 — 9 5 Transfers out of Level 3 (6 ) — (12 ) (1 ) Ending balance (2) $ (750 ) $ 17 $ (750 ) $ 17 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date (3) $ (36 ) $ 6 $ (42 ) $ 14 (1) Mark-to-market value of Level 3 derivative assets acquired through the purchase of AEM was less than $1 million at the acquisition date. (2) CenterPoint Energy did not have significant Level 3 sales during either of the three or nine months ended September 30, 2017 or 2016 . (3) During 2016, CenterPoint Energy transferred its indexed debt securities from Level 2 to Level 3 to reflect changes in the significance of the unobservable inputs used in the valuation. As of September 30, 2017 , the indexed debt securities liability was $776 million . During the three and nine months ended September 30, 2017 , there was a loss of $36 million and $59 million , respectively, on the indexed debt securities. |
Estimated fair value of financial instruments, debt instruments [Table Text Block] | The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Condensed Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy. September 30, 2017 December 31, 2016 Carrying Fair Carrying Amount Fair Value (in millions) Financial liabilities: Long-term debt $ 8,513 $ 9,005 $ 8,443 $ 8,846 |
Unconsolidated Affiliate (Table
Unconsolidated Affiliate (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | Summarized unaudited consolidated income information for Enable is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Operating revenues $ 705 $ 620 $ 1,997 $ 1,658 Cost of sales, excluding depreciation and amortization 349 268 936 717 Impairment of goodwill and other long-lived assets — 8 — 8 Operating income 137 139 399 299 Net income attributable to Enable 104 110 301 231 Reconciliation of Equity in Earnings, net: CenterPoint Energy’s interest $ 56 $ 61 $ 163 $ 128 Basis difference amortization (1) 12 12 36 36 CenterPoint Energy’s equity in earnings, net $ 68 $ 73 $ 199 $ 164 (1) Equity in earnings of unconsolidated affiliates includes CenterPoint Energy’s share of Enable’s earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in Enable’s net assets. The basis difference is amortized over approximately 33 years, the average life of the assets to which the basis difference is attributed. Summarized unaudited consolidated balance sheet information for Enable is as follows: September 30, December 31, 2016 (in millions) Current assets $ 446 $ 396 Non-current assets 10,816 10,816 Current liabilities 831 362 Non-current liabilities 2,740 3,056 Non-controlling interest 12 12 Preferred equity 362 362 Enable partners’ equity 7,317 7,420 Reconciliation of Equity Method Investment in Enable: CenterPoint Energy’s ownership interest in Enable partners’ capital $ 4,007 $ 4,067 CenterPoint Energy’s basis difference (1,526 ) (1,562 ) CenterPoint Energy’s equity method investment in Enable $ 2,481 $ 2,505 Distributions Received from Unconsolidated Affiliate: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Investment in Enable’s common units $ 74 $ 74 $ 223 $ 223 Investment in Enable’s Series A Preferred Units 9 9 27 13 Enable Common Units and Series A Preferred Units Held: September 30, 2017 Common Series A Preferred CenterPoint Energy 233,856,623 14,520,000 OGE 110,982,805 — Transactions with Enable: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Reimbursement of transition services (1) $ — $ 1 $ 3 $ 6 Natural gas expenses, including transportation and storage costs 23 22 80 79 Interest income related to notes receivable from Enable — — — 1 (1) Represents amounts billed under the Transition Agreements for certain support services provided to Enable. Actual transition services costs are recorded net of reimbursement. September 30, 2017 December 31, 2016 (in millions) Accounts receivable for amounts billed for transition services $ 1 $ 1 Accounts payable for natural gas purchases from Enable 8 10 Limited Partner Interest in Enable (1) : September 30, 2017 CenterPoint Energy 54.1 % OGE 25.7 % (1) Excluding the Series A Preferred Units owned by CenterPoint Energy. |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Goodwill by reportable business segment as of December 31, 2016 and changes in the carrying amount of goodwill as of September 30, 2017 are as follows: December 31, 2016 AEM Acquisition (1) September 30, (in millions) Natural Gas Distribution $ 746 $ — $ 746 Energy Services 105 (2) 5 110 (2) Other Operations 11 — 11 Total $ 862 $ 5 $ 867 (1) See Note 3. (2) Amount presented is net of the accumulated goodwill impairment charge of $252 million recorded in 2012. |
Short-Term Borrowings and Lon30
Short-Term Borrowings and Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Debt Issuances. During the nine months ended September 30, 2017 , CenterPoint Energy, Houston Electric and CERC Corp. issued the following debt instruments: Issuance Date Debt Instrument Aggregate Principal Amount Interest Rate Maturity Date (in millions) Houston Electric January 2017 General mortgage bonds $ 300 3.00% 2027 CenterPoint Energy August 2017 Unsecured senior notes 500 2.50% 2022 CERC Corp. August 2017 Unsecured senior notes 300 4.10% 2047 |
Schedule of Line of Credit Facilities [Table Text Block] | Credit Facilities. In June 2017, CenterPoint Energy, Houston Electric and CERC Corp. each entered into amendments to their respective revolving credit facilities to extend the termination date thereof from March 3, 2021 to March 3, 2022 and to terminate the swingline loan subfacility thereunder. The amendments to the CenterPoint Energy and CERC Corp. revolving credit facilities also increased the aggregate commitments by $100 million and $300 million , respectively, to $1.7 billion and $900 million under their respective revolving credit facilities. No changes were made to the aggregate commitments under the Houston Electric revolving credit facility. In connection with the amendments to increase the aggregate commitments under their respective revolving credit facilities, CenterPoint Energy and CERC Corp. each increased the size of their respective commercial paper programs to permit the issuance of commercial paper notes in an aggregate principal amount not to exceed $1.7 billion and $900 million , respectively, at any time outstanding. As of September 30, 2017 and December 31, 2016 , CenterPoint Energy, Houston Electric and CERC Corp. had the following revolving credit facilities and utilization of such facilities: September 30, 2017 December 31, 2016 Size of Loans Letters Commercial Size of Loans Letters Commercial (in millions) CenterPoint Energy $ 1,700 $ — $ 6 $ 447 (1) $ 1,600 $ — $ 6 $ 835 (1) Houston Electric 300 — 4 — 300 — 4 — CERC Corp. 900 — — 529 (2) 600 — 4 569 (2) Total $ 2,900 $ — $ 10 $ 976 $ 2,500 $ — $ 14 $ 1,404 (1) Weighted average interest rate was 1.42% and 1.04% as of September 30, 2017 and December 31, 2016 , respectively. (2) Weighted average interest rate was 1.43% and 1.03% as of September 30, 2017 and December 31, 2016 , respectively. Execution Date Company Size of Facility Draw Rate of LIBOR plus (2) Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio Debt for Borrowed Money to Capital Ratio as of September 30, 2017 (3) Termination Date (5) (in millions) March 3, 2016 CenterPoint Energy $ 1,700 (1) 1.250% 65% (4) 56.9% March 3, 2022 March 3, 2016 Houston Electric 300 1.125% 65% (4) 49.0% March 3, 2022 March 3, 2016 CERC Corp. 900 (1) 1.250% 65% 38.6% March 3, 2022 (1) Amended on June 16, 2017 to increase the aggregate commitment size as noted above. (2) Based on current credit ratings. (3) As defined in the revolving credit facility agreement, excluding Securitization Bonds. (4) The financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive 12 -month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification. (5) Amended on June 16, 2017 to extend the termination date as noted above. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment [Table Text Block] | Natural gas supply commitments include natural gas contracts related to CenterPoint Energy’s Natural Gas Distribution and Energy Services business segments, which have various quantity requirements and durations, that are not classified as non-trading derivative assets and liabilities in CenterPoint Energy’s Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 as these contracts meet an exception as “normal purchases contracts” or do not meet the definition of a derivative. Natural gas supply commitments also include natural gas transportation contracts that do not meet the definition of a derivative. As of September 30, 2017 , minimum payment obligations for natural gas supply commitments are approximately: (in millions) Remaining three months of 2017 $ 169 2018 507 2019 348 2020 166 2021 76 2022 and beyond 113 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per share calculations: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions, except share and per share amounts) Net income $ 169 $ 179 $ 496 $ 331 Basic weighted average shares outstanding 431,026,000 430,682,000 430,939,000 430,581,000 Plus: Incremental shares from assumed conversions: Restricted stock 3,060,000 2,714,000 3,060,000 2,714,000 Diluted weighted average shares 434,086,000 433,396,000 433,999,000 433,295,000 Basic earnings per share Net income $ 0.39 $ 0.42 $ 1.15 $ 0.77 Diluted earnings per share Net income $ 0.39 $ 0.41 $ 1.14 $ 0.76 |
Reportable Business Segments (T
Reportable Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial data for business segments is as follows: For the Three Months Ended September 30, 2017 Revenues from Net Operating (in millions) Electric Transmission & Distribution $ 843 (1) $ — $ 247 Natural Gas Distribution 390 8 19 Energy Services 861 10 7 Midstream Investments (2) — — — Other Operations 4 — 6 Eliminations — (18 ) — Consolidated $ 2,098 $ — $ 279 For the Three Months Ended September 30, 2016 Revenues from Net Operating (in millions) Electric Transmission & Distribution $ 908 (1) $ — $ 257 Natural Gas Distribution 370 7 22 Energy Services 608 6 5 Midstream Investments (2) — — — Other Operations 3 — — Eliminations — (13 ) — Consolidated $ 1,889 $ — $ 284 For the Nine Months Ended September 30, 2017 Revenues from External Customers Net Intersegment Revenues Operating Income Total Assets as of September 30, 2017 (in millions) Electric Transmission & Distribution $ 2,234 (1) $ — $ 489 $ 10,289 Natural Gas Distribution 1,767 24 220 6,067 Energy Services 2,964 34 58 1,337 Midstream Investments (2) — — — 2,481 Other Operations 11 — 9 2,694 (3) Eliminations — (58 ) — (733 ) Consolidated $ 6,976 $ — $ 776 $ 22,135 For the Nine Months Ended September 30, 2016 Revenues from Net Operating Total Assets as of December 31, 2016 (in millions) Electric Transmission & Distribution $ 2,331 (1) $ — $ 498 $ 10,211 Natural Gas Distribution 1,672 21 202 6,099 Energy Services 1,433 17 11 1,102 Midstream Investments (2) — — — 2,505 Other Operations 11 — 5 2,681 (3) Eliminations — (38 ) — (769 ) Consolidated $ 5,447 $ — $ 716 $ 21,829 (1) Electric Transmission & Distribution revenues from major customers are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Affiliates of NRG $ 221 $ 223 $ 540 $ 527 Affiliates of Vistra Energy Corp. 72 71 172 166 (2) Midstream Investments’ equity earnings are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Enable $ 68 $ 73 $ 199 $ 164 (3) Included in total assets of Other Operations as of September 30, 2017 and December 31, 2016 are pension and other postemployment-related regulatory assets of $715 million and $759 million , respectively. |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Electric Transmission & Distribution revenues from major customers are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Affiliates of NRG $ 221 $ 223 $ 540 $ 527 Affiliates of Vistra Energy Corp. 72 71 172 166 |
Midstream Investments [Table Text Block] | Midstream Investments’ equity earnings are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Enable $ 68 $ 73 $ 199 $ 164 |
Background and Basis of Prese34
Background and Basis of Presentation (Details) | Sep. 30, 2017stateshares | |
Enable Midstream Partners [Member] | ||
Ownership percentage of equity method investment | 54.10% | [1] |
Enable Midstream Partners [Member] | Series A Preferred Stock [Member] | ||
Preferred units held | shares | 14,520,000 | |
Natural Gas Distribution [Member] | ||
Number of states in which entity operates | 6 | |
Energy Services [Member] | ||
Number of states in which entity operates | 33 | |
[1] | Excluding the Series A Preferred Units owned by CenterPoint Energy. |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Payments related to tax withholding for share-based compensation | $ 4 | $ 3 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Millions | Jan. 03, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Goodwill | $ 867 | $ 867 | $ 862 | |||
Atmos Energy Marketing [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Total purchase price consideration | $ 147 | |||||
Cash | 15 | |||||
Receivables | 140 | |||||
Natural gas inventory | 78 | |||||
Derivative assets | 35 | |||||
Prepaid expenses and other current assets | 5 | |||||
Property and equipment | 8 | |||||
Identifiable intangibles | 25 | |||||
Total assets acquired | 306 | |||||
Accounts payable | 113 | |||||
Derivative liabilities | 43 | |||||
Other current liabilities | 7 | |||||
Other liabilities | 1 | |||||
Total liabilities assumed | 164 | |||||
Identifiable net assets acquired | 142 | |||||
Goodwill | 5 | |||||
Net assets acquired | 147 | |||||
Amortization of intangible assets | 0 | 1 | ||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||
Revenue of acquiree since acquisition date | 311 | 989 | ||||
Operating income of acquiree since acquisition date | 3 | 28 | ||||
Operating Revenue | 2,098 | $ 2,145 | 6,976 | $ 6,161 | ||
Net Income | $ 169 | $ 179 | $ 496 | $ 335 | ||
Atmos Energy Marketing [Member] | Customer Relationships [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Intangibles estimated fair value | $ 25 | |||||
Intangibles estimated useful life | 15 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Defined Benefit Plan, Change in Accumulated Comprehensive Loss [Roll Forward] | |||||
Beginning Balance | $ (70) | $ (65) | $ (72) | $ (65) | |
Other comprehensive income (loss) before reclassifications (1) | [1] | 0 | 0 | 0 | (4) |
Amounts reclassified from accumulated other comprehensive loss: | |||||
Prior service cost (2) | [2] | 0 | 1 | 1 | 1 |
Actuarial losses (2) | [2] | 2 | 2 | 5 | 5 |
Tax expense | (2) | (2) | (4) | (1) | |
Net current period other comprehensive income | 0 | 1 | 2 | 1 | |
Ending Balance | (70) | (64) | (70) | (64) | |
Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 9 | 10 | 27 | 28 | |
Interest cost | 22 | 23 | 66 | 70 | |
Expected return on plan assets | (24) | (26) | (72) | (76) | |
Amortization of prior service cost (credit) | 2 | 3 | 7 | 7 | |
Amortization of net loss | 14 | 15 | 43 | 47 | |
Curtailment gain (1) | [3] | 0 | 0 | ||
Net periodic cost (2) | [4] | 23 | 25 | 71 | 76 |
Total contributions expected in current year | 46 | ||||
Total contributions to the plans during the period | 28 | 46 | |||
Postretirement Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 1 | 1 | 2 | |
Interest cost | 4 | 4 | 12 | 13 | |
Expected return on plan assets | (1) | (2) | (4) | (5) | |
Amortization of prior service cost (credit) | (1) | (1) | (3) | (2) | |
Amortization of net loss | 0 | 0 | 0 | 0 | |
Curtailment gain (1) | [3] | 0 | (3) | ||
Net periodic cost (2) | [4] | 2 | $ 2 | 6 | $ 5 |
Total contributions expected in current year | 16 | ||||
Total contributions to the plans during the period | $ 4 | $ 12 | |||
[1] | Total other comprehensive income (loss) is related to the remeasurement of the postretirement plan. | ||||
[2] | These accumulated other comprehensive components are included in the computation of net periodic cost. | ||||
[3] | A curtailment gain or loss is required when the expected future services of a significant number of current employees are reduced or eliminated for the accrual of benefits. In May 2016, Houston Electric entered into a renegotiated collective bargaining agreement with the IBEW Local Union 66 that provides that for Houston Electric union employees covered under the agreement who retire on or after January 1, 2017, retiree medical and prescription drug coverage will be provided exclusively through the NECA/IBEW Family Medical Care Plan in exchange for the payment of monthly premiums as determined under the agreement. As a result, the accrued postretirement benefits related to such future Houston Electric union retirees were eliminated. In 2016, Houston Electric recognized a curtailment gain of $3 million as an accelerated recognition of the prior service credit that would otherwise be recognized in future periods. | ||||
[4] | Net periodic cost in this table is before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes. |
Regulatory Accounting (Details)
Regulatory Accounting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Recorded increase in regulatory assets, net of insurance receivables | $ 2,539 | $ 2,539 | $ 2,677 | ||
CenterPoint Houston [Member] | |||||
Amount of allowed equity return on the true-up balance that has not been recognized | 299 | 299 | |||
Amount of allowed equity return on the true-up balance that was recognized in the period | 13 | $ 22 | 30 | $ 52 | |
Hurricane Harvey [Member] | CenterPoint Houston [Member] | |||||
Estimated restoration costs covered by insurance | 35 | 35 | |||
Recorded increase in property, plant and equipment | 4 | 4 | |||
Recorded increase in regulatory assets, net of insurance receivables | 73 | 73 | |||
Recorded insurance receivables | 23 | 23 | |||
Hurricane Harvey [Member] | CERC Corp [Member] | |||||
Estimated restoration costs covered by insurance | 17 | 17 | |||
Recorded increase in regulatory assets, net of insurance receivables | 7 | 7 | |||
Recorded insurance receivables | 2 | 2 | |||
Hurricane Harvey [Member] | Minimum [Member] | CenterPoint Houston [Member] | |||||
Estimated costs to restore damaged facilities | 110 | 110 | |||
Hurricane Harvey [Member] | Minimum [Member] | CERC Corp [Member] | |||||
Estimated costs to restore damaged facilities | 25 | 25 | |||
Hurricane Harvey [Member] | Maximum [Member] | CenterPoint Houston [Member] | |||||
Estimated costs to restore damaged facilities | 120 | 120 | |||
Hurricane Harvey [Member] | Maximum [Member] | CERC Corp [Member] | |||||
Estimated costs to restore damaged facilities | $ 30 | $ 30 |
Derivative Instruments Derivati
Derivative Instruments Derivatives and hedging (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Aug. 21, 2017 | Aug. 07, 2017 | |
Derivatives, Fair Value [Line Items] | ||||||
Weather hedges term | 10 years | |||||
Gains (Losses) in Revenue [Member] | Weather Hedge Swaps [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Recognized gain (loss) on weather hedges | $ 0 | $ 0 | $ 1 | $ 3 | ||
2015 To 2016 [Member] | Electric Transmission and Distribution [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Weather hedge bilateral cap amount | 7 | |||||
2016 To 2017 [Member] | Electric Transmission and Distribution [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Weather hedge bilateral cap amount | 9 | |||||
2017to2018 [Member] | Natural Gas Distribution [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Weather hedge bilateral cap amount | 8 | |||||
2017to2018 [Member] | Electric Transmission and Distribution [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Weather hedge bilateral cap amount | 9 | |||||
CenterPoint Houston [Member] | January [Member] | Treasury Lock [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Aggregate notional amount | 150 | 150 | ||||
Principal amount of debt issued | 300 | 300 | ||||
Effective portion of realized losses | 0.5 | |||||
Parent Company [Member] | January thru August [Member] | Treasury Lock [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Aggregate notional amount | 350 | 350 | ||||
Effective portion of realized losses | 2.9 | |||||
CERC Corp [Member] | August [Member] | Treasury Lock [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Aggregate notional amount | $ 150 | 150 | ||||
Effective portion of realized losses | $ 1.5 | |||||
Senior Notes [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Principal amount of debt issued | $ 500 | |||||
Senior Notes [Member] | CERC Corp [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Principal amount of debt issued | $ 300 |
Derivative Instruments Deriva40
Derivative Instruments Derivative Fair Values (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Bcf | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)Bcf | |||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Assets Fair Value | $ 164,000,000 | $ 164,000,000 | $ 105,000,000 | [1] | |||||
Derivative Liabilities Fair Value | 860,000,000 | 860,000,000 | 784,000,000 | [1] | |||||
Gross Amounts Offset in the Consolidated Balance Sheets | 13,000,000 | 13,000,000 | (14,000,000) | ||||||
Gain (loss) on derivative instruments not designated as hedging instruments | (15,000,000) | $ (54,000,000) | 12,000,000 | $ (222,000,000) | |||||
Total fair value of the derivative instruments that contain credit risk contingent features that are in a net liability position | 1,000,000 | 1,000,000 | 1,000,000 | ||||||
The aggregate fair value of assets already posted as collateral | 0 | 0 | 0 | ||||||
Credit risk contingent features assets | 1,000,000 | 1,000,000 | $ 0 | ||||||
Gains (Losses) in Expense: Natural Gas [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Change in unrealized gain (loss) on hedged item in fair value hedge | 4,000,000 | 0 | (10,000,000) | 0 | |||||
Gain (loss) on fair value hedges recognized in earnings | [2] | 0 | 0 | $ (2,000,000) | 0 | ||||
Energy Related Derivative [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative gross volume notional amount (in Bcf) | Bcf | 1,866 | 1,035 | |||||||
Gross Amounts Recognized | [3] | 80,000,000 | $ 80,000,000 | $ 38,000,000 | |||||
Gross Amounts Offset in the Consolidated Balance Sheets | 13,000,000 | 13,000,000 | (14,000,000) | ||||||
Net Amount Presented in the Consolidated Balance Sheets | [4] | 93,000,000 | 93,000,000 | 24,000,000 | |||||
Energy Related Derivative [Member] | Gains (Losses) in Revenue [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gain (loss) on derivative instruments not designated as hedging instruments | 30,000,000 | 31,000,000 | 162,000,000 | 1,000,000 | |||||
Energy Related Derivative [Member] | Gains (Losses) in Expense: Natural Gas [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Change in unrealized gain (loss) on fair value hedging instruments | (4,000,000) | 0 | 8,000,000 | 0 | |||||
Gain (loss) on derivative instruments not designated as hedging instruments | (9,000,000) | (13,000,000) | (91,000,000) | 35,000,000 | |||||
Energy Related Derivative [Member] | Current Assets [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gross Amounts Recognized | [3] | 97,000,000 | 97,000,000 | 81,000,000 | |||||
Gross Amounts Offset | (33,000,000) | (33,000,000) | (30,000,000) | ||||||
Derivative Asset | [4] | 64,000,000 | 64,000,000 | 51,000,000 | |||||
Energy Related Derivative [Member] | Other Assets [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gross Amounts Recognized | [3] | 67,000,000 | 67,000,000 | 24,000,000 | |||||
Gross Amounts Offset | (11,000,000) | (11,000,000) | (5,000,000) | ||||||
Derivative Asset | [4] | 56,000,000 | 56,000,000 | 19,000,000 | |||||
Energy Related Derivative [Member] | Current Liabilities [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gross Amounts Recognized | [3] | (57,000,000) | (57,000,000) | (57,000,000) | |||||
Gross Amounts Offset | 40,000,000 | 40,000,000 | 16,000,000 | ||||||
Derivative Liability | [4] | (17,000,000) | (17,000,000) | (41,000,000) | |||||
Energy Related Derivative [Member] | Other Liabilities [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gross Amounts Recognized | [3] | (27,000,000) | (27,000,000) | (10,000,000) | |||||
Gross Amounts Offset | 17,000,000 | 17,000,000 | 5,000,000 | ||||||
Derivative Liability | [4] | (10,000,000) | (10,000,000) | (5,000,000) | |||||
Energy Related Derivative [Member] | Designated as Fair Value Hedge [Member] | Current Assets [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Assets Fair Value | [5],[6],[7] | 0 | 0 | ||||||
Derivative Liabilities Fair Value | [5],[6],[7] | 0 | 0 | ||||||
Energy Related Derivative [Member] | Designated as Fair Value Hedge [Member] | Current Liabilities [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Assets Fair Value | [5],[6],[7] | 5,000,000 | 5,000,000 | ||||||
Derivative Liabilities Fair Value | [5],[6],[7] | 0 | 0 | ||||||
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | Current Assets [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Assets Fair Value | [5] | 65,000,000 | [6],[7] | 65,000,000 | [6],[7] | 79,000,000 | [8],[9] | ||
Derivative Liabilities Fair Value | [5] | 2,000,000 | [6],[7] | 2,000,000 | [6],[7] | 14,000,000 | [8],[9] | ||
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Assets Fair Value | [5] | 58,000,000 | [6],[7] | 58,000,000 | [6],[7] | 24,000,000 | [8],[9] | ||
Derivative Liabilities Fair Value | [5] | 2,000,000 | [6],[7] | 2,000,000 | [6],[7] | 5,000,000 | [8],[9] | ||
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | Current Liabilities [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Assets Fair Value | [5] | 27,000,000 | [6],[7] | 27,000,000 | [6],[7] | 2,000,000 | [8],[9] | ||
Derivative Liabilities Fair Value | [5] | 55,000,000 | [6],[7] | 55,000,000 | [6],[7] | 43,000,000 | [8],[9] | ||
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Assets Fair Value | [5] | 9,000,000 | [6],[7] | 9,000,000 | [6],[7] | 0 | [8],[9] | ||
Derivative Liabilities Fair Value | [5] | 25,000,000 | [6],[7] | $ 25,000,000 | [6],[7] | $ 5,000,000 | [8],[9] | ||
Energy Related Derivative [Member] | Long [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative gross volume notional amount (in Bcf) | Bcf | 46 | 59 | |||||||
IDS Derivative [Member] | Gains (losses) in Other Income (Expense) [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Gain (loss) on derivative instruments not designated as hedging instruments | (36,000,000) | $ (72,000,000) | $ (59,000,000) | $ (258,000,000) | |||||
IDS Derivative [Member] | Not Designated as Hedging Instrument [Member] | Current Liabilities [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivative Assets Fair Value | 0 | 0 | $ 0 | ||||||
Derivative Liabilities Fair Value | $ 776,000,000 | $ 776,000,000 | $ 717,000,000 | ||||||
[1] | No derivatives were designated as fair value hedges as of December 31, 2016. | ||||||||
[2] | Hedge ineffectiveness results from the basis ineffectiveness discussed above, and excludes the impact to natural gas expense from timing ineffectiveness. Timing ineffectiveness arises due to changes in the difference between the spot price and the futures price, as well as the difference between the timing of the settlement of the futures and the valuation of the underlying physical commodity. As the commodity contract nears the settlement date, spot-to-forward price differences should converge, which should reduce or eliminate the impact of this ineffectiveness on natural gas expense. | ||||||||
[3] | Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. | ||||||||
[4] | The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. | ||||||||
[5] | Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. | ||||||||
[6] | Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $93 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, impacted by collateral netting of $13 million. | ||||||||
[7] | The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 1,866 Bcf or a net 46 Bcf long position. Certain natural gas contracts hedge basis risk only and lack a fixed price exposure. | ||||||||
[8] | Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $24 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, impacted by collateral netting of $14 million. | ||||||||
[9] | The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 1,035 Bcf or a net 59 Bcf long position. Certain natural gas contracts hedge basis risk only and lack a fixed price exposure. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair value amount of Level 1 to Level 2 assets transferred | $ 0 | $ 0 | |||||||
Fair value amount of Level 2 to Level 1 assets transferred | 0 | 0 | |||||||
Fair value amount of Level 1 to Level 2 liabilities transferred | 0 | 0 | |||||||
Fair value amount of Level 2 to Level 1 liabilities transferred | 0 | 0 | |||||||
Assets | |||||||||
Total derivative assets, netting adjustment | (44,000,000) | [1] | (44,000,000) | [1] | $ (35,000,000) | [2] | |||
Total assets | 1,312,000,000 | 1,312,000,000 | 1,103,000,000 | ||||||
Derivative fair value offsets, net | 13,000,000 | 13,000,000 | (14,000,000) | ||||||
Liabilities | |||||||||
Total derivative liabilities, netting adjustment | (57,000,000) | [1] | (57,000,000) | [1] | (21,000,000) | [2] | |||
Total liabilities | 803,000,000 | 803,000,000 | 763,000,000 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Beginning balance | (712,000,000) | $ 16,000,000 | (704,000,000) | $ 12,000,000 | |||||
Purchases (1) | [3] | 0 | 0 | 0 | 12,000,000 | ||||
Total gains (losses) | (38,000,000) | 9,000,000 | (38,000,000) | 13,000,000 | |||||
Total settlements | (1,000,000) | (8,000,000) | (5,000,000) | (24,000,000) | |||||
Transfers into Level 3 | 7,000,000 | 0 | 9,000,000 | 5,000,000 | |||||
Transfers out of Level 3 | (6,000,000) | 0 | (12,000,000) | (1,000,000) | |||||
Ending balance (2) | [4] | (750,000,000) | 17,000,000 | (750,000,000) | 17,000,000 | ||||
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date (3) | [5] | (36,000,000) | 6,000,000 | (42,000,000) | 14,000,000 | ||||
Gain (loss) on indexed debt securities | (36,000,000) | $ (72,000,000) | (59,000,000) | $ (258,000,000) | |||||
Carrying Value [Member] | |||||||||
Estimated Fair Value of Financial Instruments | |||||||||
Long-term debt | 8,513,000,000 | 8,513,000,000 | 8,443,000,000 | ||||||
Fair Value [Member] | |||||||||
Estimated Fair Value of Financial Instruments | |||||||||
Long-term debt | 9,005,000,000 | $ 9,005,000,000 | 8,846,000,000 | ||||||
Atmos Energy Marketing [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Mark-to-market value of Level 3 derivative assets acquired | less than $1 million | ||||||||
Natural gas derivatives [Member] | |||||||||
Assets | |||||||||
Derivative fair value offsets, net | 13,000,000 | $ 13,000,000 | (14,000,000) | ||||||
Fair Value, Inputs, Level 1 [Member] | |||||||||
Assets | |||||||||
Total assets | 1,195,000,000 | 1,195,000,000 | 1,044,000,000 | ||||||
Liabilities | |||||||||
Total liabilities | 3,000,000 | 3,000,000 | 4,000,000 | ||||||
Fair Value, Inputs, Level 2 [Member] | |||||||||
Assets | |||||||||
Total assets | 128,000,000 | 128,000,000 | 74,000,000 | ||||||
Liabilities | |||||||||
Total liabilities | 74,000,000 | 74,000,000 | 56,000,000 | ||||||
Fair Value, Inputs, Level 3 [Member] | |||||||||
Assets | |||||||||
Total assets | 33,000,000 | 33,000,000 | 20,000,000 | ||||||
Liabilities | |||||||||
Total liabilities | 783,000,000 | $ 783,000,000 | 724,000,000 | ||||||
Fair Value, Inputs, Level 3 [Member] | Forward Contracts [Member] | Minimum [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair value inputs (price per MMBtu) | 1.08 | ||||||||
Fair Value, Inputs, Level 3 [Member] | Forward Contracts [Member] | Maximum [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair value inputs (price per MMBtu) | 5.83 | ||||||||
Fair Value, Inputs, Level 3 [Member] | Options Held [Member] | Minimum [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair value options volatility rate | 0.00% | ||||||||
Fair Value, Inputs, Level 3 [Member] | Options Held [Member] | Maximum [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair value options volatility rate | 87.00% | ||||||||
Fair Value, Inputs, Level 3 [Member] | IDS Derivative [Member] | |||||||||
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | |||||||||
Fair value options volatility rate | 11.40% | ||||||||
Fair value projected dividend growth rate | 7.00% | ||||||||
Fair Value, Measurements, Recurring [Member] | |||||||||
Assets | |||||||||
Corporate equities | 1,060,000,000 | $ 1,060,000,000 | 956,000,000 | ||||||
Investments, including money market funds (2) | [6] | 67,000,000 | 67,000,000 | 77,000,000 | |||||
Hedged portion of natural gas inventory | 65,000,000 | 65,000,000 | |||||||
Fair Value, Measurements, Recurring [Member] | IDS Derivative [Member] | |||||||||
Liabilities | |||||||||
Derivative liabilities, netting adjustment | 0 | [1] | 0 | [1] | 0 | [2] | |||
Derivative liabilities | 776,000,000 | 776,000,000 | 717,000,000 | ||||||
Fair Value, Measurements, Recurring [Member] | Natural gas derivatives [Member] | |||||||||
Assets | |||||||||
Derivative asset, netting adjustment | [7] | (44,000,000) | [1] | (44,000,000) | [1] | (35,000,000) | [2] | ||
Derivative assets | [7] | 120,000,000 | 120,000,000 | 70,000,000 | |||||
Liabilities | |||||||||
Derivative liabilities, netting adjustment | [7] | (57,000,000) | [1] | (57,000,000) | [1] | (21,000,000) | [2] | ||
Derivative liabilities | [7] | 27,000,000 | 27,000,000 | 46,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||
Assets | |||||||||
Corporate equities | 1,060,000,000 | 1,060,000,000 | 956,000,000 | ||||||
Investments, including money market funds (2) | [6] | 67,000,000 | 67,000,000 | 77,000,000 | |||||
Hedged portion of natural gas inventory | 65,000,000 | 65,000,000 | |||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | IDS Derivative [Member] | |||||||||
Liabilities | |||||||||
Derivative liability | 0 | 0 | 0 | ||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Natural gas derivatives [Member] | |||||||||
Assets | |||||||||
Derivative asset | [7] | 3,000,000 | 3,000,000 | 11,000,000 | |||||
Liabilities | |||||||||
Derivative liability | [7] | 3,000,000 | 3,000,000 | 4,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||
Assets | |||||||||
Corporate equities | 0 | 0 | 0 | ||||||
Investments, including money market funds (2) | [6] | 0 | 0 | 0 | |||||
Hedged portion of natural gas inventory | 0 | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | IDS Derivative [Member] | |||||||||
Liabilities | |||||||||
Derivative liability | 0 | 0 | 0 | ||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Natural gas derivatives [Member] | |||||||||
Assets | |||||||||
Derivative asset | [7] | 128,000,000 | 128,000,000 | 74,000,000 | |||||
Liabilities | |||||||||
Derivative liability | [7] | 74,000,000 | 74,000,000 | 56,000,000 | |||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||
Assets | |||||||||
Corporate equities | 0 | 0 | 0 | ||||||
Investments, including money market funds (2) | [6] | 0 | 0 | 0 | |||||
Hedged portion of natural gas inventory | 0 | 0 | |||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | IDS Derivative [Member] | |||||||||
Liabilities | |||||||||
Derivative liability | 776,000,000 | 776,000,000 | 717,000,000 | ||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Natural gas derivatives [Member] | |||||||||
Assets | |||||||||
Derivative asset | [7] | 33,000,000 | 33,000,000 | 20,000,000 | |||||
Liabilities | |||||||||
Derivative liability | [7] | $ 7,000,000 | $ 7,000,000 | $ 7,000,000 | |||||
[1] | Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $13 million posted with the same counterparties. | ||||||||
[2] | Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $14 million held by CES from the same counterparties. | ||||||||
[3] | Mark-to-market value of Level 3 derivative assets acquired through the purchase of AEM was less than $1 million at the acquisition date. | ||||||||
[4] | CenterPoint Energy did not have significant Level 3 sales during either of the three or nine months ended September 30, 2017 or 2016. | ||||||||
[5] | During 2016, CenterPoint Energy transferred its indexed debt securities from Level 2 to Level 3 to reflect changes in the significance of the unobservable inputs used in the valuation. As of September 30, 2017, the indexed debt securities liability was $776 million. During the three and nine months ended September 30, 2017, there was a loss of $36 million and $59 million, respectively, on the indexed debt securities. | ||||||||
[6] | Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. | ||||||||
[7] | Natural gas derivatives include no material amounts related to physical forward transactions with Enable. |
Unconsolidated Affiliate Descri
Unconsolidated Affiliate Description (Details) - USD ($) $ in Millions | Nov. 22, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Aug. 30, 2017 | Dec. 31, 2016 | |
Percentage sale of units which trigger right of first refusal | 5.00% | |||||||
ArcLight [Member] | ||||||||
Units sold in public offering | 1,424,281 | |||||||
Enable Midstream Partners [Member] | ||||||||
Units sold in public offering | 11,500,000 | |||||||
OGE [Member] | ||||||||
Percentage sale of units which trigger right of first refusal | 5.00% | |||||||
Enable Midstream Partners [Member] | CERC Corp [Member] | ||||||||
Management rights ownership percentage | 50.00% | |||||||
Enable Midstream Partners [Member] | OGE [Member] | ||||||||
Limited partner interest in Enable | [1] | 25.70% | ||||||
Management rights ownership percentage | 50.00% | |||||||
Enable Midstream Partners [Member] | Common Stock [Member] | OGE [Member] | ||||||||
Enable units held | 110,982,805 | 110,982,805 | ||||||
Enable Midstream Partners [Member] | Subordinated Units [Member] | ||||||||
Equity Method Investment, Ownership, Shares | 139,704,916 | |||||||
Enable Midstream Partners [Member] | ||||||||
Equity method investment limited partner interest in Enable | [1] | 54.10% | 54.10% | |||||
Enable Midstream Partners [Member] | Common Stock [Member] | ||||||||
Equity Method Investment, Ownership, Shares | 233,856,623 | 233,856,623 | ||||||
Enable Midstream Partners [Member] | Series A Preferred Stock [Member] | ||||||||
Series A Preferred units held | 14,520,000 | 14,520,000 | ||||||
Enable Midstream Partners [Member] | ||||||||
Interest income related to notes receivable from Enable | $ 0 | $ 0 | $ 0 | $ 1 | ||||
Transitional Service [Member] | Enable Midstream Partners [Member] | ||||||||
Reimbursement of transition services (1) | [2] | 0 | 1 | 3 | 6 | |||
Accounts receivable for amounts billed for transition services | 1 | 1 | $ 1 | |||||
Natural Gas Expenses [Member] | Enable Midstream Partners [Member] | ||||||||
Natural gas expenses, including transportation and storage costs | 23 | $ 22 | 80 | $ 79 | ||||
Accounts payable for natural gas purchases from Enable | $ 8 | $ 8 | $ 10 | |||||
[1] | Excluding the Series A Preferred Units owned by CenterPoint Energy. | |||||||
[2] | Represents amounts billed under the Transition Agreements for certain support services provided to Enable. Actual transition services costs are recorded net of reimbursement. |
Unconsolidated Affiliate Financ
Unconsolidated Affiliate Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) [Abstract] | ||||||
CenterPoint Energy’s equity in earnings, net | $ 68 | $ 73 | $ 199 | $ 164 | ||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | ||||||
CenterPoint Energy’s equity method investment in Enable | 2,481 | 2,481 | $ 2,505 | |||
Enable Midstream Partners [Member] | ||||||
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) [Abstract] | ||||||
Operating revenues | 705 | 620 | 1,997 | 1,658 | ||
Cost of sales, excluding depreciation and amortization | 349 | 268 | 936 | 717 | ||
Impairment of goodwill and other long-lived assets | 0 | 8 | 0 | 8 | ||
Operating income | 137 | 139 | 399 | 299 | ||
Net income attributable to Enable | 104 | 110 | 301 | 231 | ||
CenterPoint Energy’s interest | 56 | 61 | 163 | 128 | ||
Basis difference amortization (1) | [1] | 12 | 12 | 36 | 36 | |
CenterPoint Energy’s equity in earnings, net | 68 | 73 | $ 199 | 164 | ||
Basis difference amortization period | 33 years | |||||
Equity Method Investment, Summarized Financial Information, Assets and Liabilities [Abstract] | ||||||
Current assets | 446 | $ 446 | 396 | |||
Non-current assets | 10,816 | 10,816 | 10,816 | |||
Current liabilities | 831 | 831 | 362 | |||
Non-current liabilities | 2,740 | 2,740 | 3,056 | |||
Non-controlling interest | 12 | 12 | 12 | |||
Preferred equity | 362 | 362 | 362 | |||
Enable partners’ equity | 7,317 | 7,317 | 7,420 | |||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | ||||||
CenterPoint Energy’s ownership interest in Enable partners’ capital | 4,007 | 4,007 | 4,067 | |||
CenterPoint Energy’s basis difference | (1,526) | (1,526) | (1,562) | |||
CenterPoint Energy’s equity method investment in Enable | 2,481 | 2,481 | $ 2,505 | |||
Enable Midstream Partners [Member] | Common Stock [Member] | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | ||||||
Distributions received from equity method investment | 74 | 74 | 223 | 223 | ||
Enable Midstream Partners [Member] | Preferred Stock [Member] | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | ||||||
Distributions received from cost method investment | $ 9 | $ 9 | $ 27 | $ 13 | ||
Enable Midstream Partners [Member] | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | ||||||
Maximum incentive distribution right | 50.00% | |||||
Enable Midstream Partners [Member] | CERC Corp [Member] | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | ||||||
Incentive distribution right | 40.00% | |||||
Enable Midstream Partners [Member] | OGE [Member] | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | ||||||
Incentive distribution right | 60.00% | |||||
Enable Midstream Partners [Member] | Minimum [Member] | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | ||||||
Incentive distribution per unit | $ 0.2875 | |||||
Enable Midstream Partners [Member] | Maximum [Member] | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | ||||||
Incentive distribution per unit | $ 0.330625 | |||||
[1] | Equity in earnings of unconsolidated affiliates includes CenterPoint Energy’s share of Enable’s earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in Enable’s net assets. The basis difference is amortized over approximately 33 years, the average life of the assets to which the basis difference is attributed. |
Goodwill (Details)
Goodwill (Details) | 9 Months Ended | |
Sep. 30, 2017USD ($) | ||
Goodwill [Line Items] | ||
Goodwill impairment charge recorded from annual impairment test | $ 0 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 862,000,000 | |
Goodwill, Acquired During Period | 5,000,000 | [1] |
Goodwill, Ending Balance | 867,000,000 | |
Natural Gas Distribution [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 746,000,000 | |
Goodwill, Acquired During Period | 0 | [1] |
Goodwill, Ending Balance | 746,000,000 | |
Energy Services [Member] | ||
Goodwill [Line Items] | ||
Accumulated goodwill impairment charge recorded in 2012 | 252,000,000 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 105,000,000 | [2] |
Goodwill, Acquired During Period | 5,000,000 | [1] |
Goodwill, Ending Balance | 110,000,000 | [2] |
Corporate and Other [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 11,000,000 | |
Goodwill, Acquired During Period | 0 | [1] |
Goodwill, Ending Balance | $ 11,000,000 | |
[1] | See Note 3. | |
[2] | Amount presented is net of the accumulated goodwill impairment charge of $252 million recorded in 2012. |
Indexed Debt Securities (ZENS45
Indexed Debt Securities (ZENS) and Securities Related to ZENS (Details) $ / shares in Units, $ in Millions | Feb. 15, 2017$ / sharesshares | Sep. 30, 2017USD ($)shares |
Subordinated Debt ZENS [Member] | ||
Principal amount of debt issued | $ | $ 1,000 | |
Outstanding debt balance | $ | $ 828 | |
Subordinated note cash exchangeable percentage of fair value | 95.00% | |
Contingent principal amount outstanding | $ | $ 507 | |
TW Common [Member] | ||
Balance of investment owned (in shares) | 7,100,000 | |
TW Common [Member] | Subordinated Debt ZENS [Member] | ||
Number of shares referenced in exchangeable subordinated note | 0.5 | |
Time Common [Member] | ||
Balance of investment owned (in shares) | 900,000 | |
Time Common [Member] | Subordinated Debt ZENS [Member] | ||
Number of shares referenced in exchangeable subordinated note | 0.0625 | |
Charter Common [Member] | ||
Balance of investment owned (in shares) | 900,000 | |
Charter Common [Member] | Subordinated Debt ZENS [Member] | ||
Number of shares referenced in exchangeable subordinated note | 0.061382 | |
AT&T To Acquire Time Warner [Member] | ||
Implied value of consideration received by TW common stock shareholders, net | $ / shares | $ 107.50 | |
Implied value of consideration received by TW common stock shareholders, Cash | $ / shares | 53.75 | |
Implied value of consideration received by TW common stock shareholders, Noncash | $ / shares | $ 53.75 | |
Lower range of shares received by TW common shareholders | 1.437 | |
Price of AT&T common stock, lower range | $ / shares | $ 37.411 | |
Upper range of shares received by TW Common shareholders | 1.3 | |
Price of AT&T common stock, upper range | $ / shares | $ 41.349 |
Short-Term Borrowings and Lon46
Short-Term Borrowings and Long-term Debt (Details) $ in Millions | Aug. 21, 2017USD ($) | Aug. 07, 2017USD ($) | Feb. 01, 2017USD ($) | Jan. 12, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Short-term Debt [Line Items] | |||||||
Short-term borrowings | $ 48 | $ 35 | |||||
Line of Credit Facility [Abstract] | |||||||
Size of credit facility | 2,900 | 2,500 | |||||
Parent Company [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Size of credit facility | 1,600 | ||||||
Credit facility size increase | 100 | ||||||
CenterPoint Houston [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Size of credit facility | 300 | 300 | |||||
CERC Corp [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Size of credit facility | 600 | ||||||
Credit facility size increase | 300 | ||||||
Revolving Credit Facility [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Long-term line of credit | 0 | 0 | |||||
Revolving Credit Facility [Member] | Parent Company [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Long-term line of credit | 0 | 0 | |||||
Revolving Credit Facility [Member] | CenterPoint Houston [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Long-term line of credit | 0 | 0 | |||||
Revolving Credit Facility [Member] | CERC Corp [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Long-term line of credit | $ 0 | 0 | |||||
Line of Credit [Member] | Parent Company [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Percentage on limitation of debt to total capitalization under covenant | [1] | 65.00% | |||||
Percentage on limitation of debt to total capitalization under covenant amended (in hundredths) | 70.00% | ||||||
Ratio of indebtedness to net capital | [2] | 0.569 | |||||
System restoration costs threshold for increase in permitted debt to EBITDA covenant ratio | $ 100 | ||||||
Consecutive period for system restoration costs to exceed $100 million (in months) | 12 | ||||||
Line of Credit [Member] | Parent Company [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Basis spread on LIBOR | [3] | 1.25% | |||||
Line of Credit [Member] | CenterPoint Houston [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Percentage on limitation of debt to total capitalization under covenant | [1] | 65.00% | |||||
Ratio of indebtedness to net capital | [2] | 0.490 | |||||
Line of Credit [Member] | CenterPoint Houston [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Basis spread on LIBOR | [3] | 1.125% | |||||
Line of Credit [Member] | CERC Corp [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Percentage on limitation of debt to total capitalization under covenant | 65.00% | ||||||
Ratio of indebtedness to net capital | [2] | 0.386 | |||||
Line of Credit [Member] | CERC Corp [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Basis spread on LIBOR | [3] | 1.25% | |||||
Letter of Credit [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Long-term line of credit | $ 10 | 14 | |||||
Letter of Credit [Member] | Parent Company [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Long-term line of credit | 6 | 6 | |||||
Letter of Credit [Member] | CenterPoint Houston [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Long-term line of credit | 4 | 4 | |||||
Letter of Credit [Member] | CERC Corp [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Long-term line of credit | 0 | 4 | |||||
Commercial Paper [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Long-term line of credit | 976 | 1,404 | |||||
Commercial Paper [Member] | Parent Company [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Size of credit facility | [4] | 1,700 | |||||
Long-term line of credit | [5] | $ 447 | $ 835 | ||||
Weighted average interest rate of debt | 1.42% | 1.04% | |||||
Commercial Paper [Member] | CenterPoint Houston [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Long-term line of credit | $ 0 | $ 0 | |||||
Commercial Paper [Member] | CERC Corp [Member] | |||||||
Line of Credit Facility [Abstract] | |||||||
Size of credit facility | [4] | 900 | |||||
Long-term line of credit | [6] | $ 529 | $ 569 | ||||
Weighted average interest rate of debt | 1.43% | 1.03% | |||||
Product Financing Arrangement [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Short-term borrowings | $ 48 | $ 35 | |||||
Senior Notes [Member] | |||||||
Debt Instruments [Abstract] | |||||||
Amount of debt retired | $ 250 | ||||||
Principal amount of debt issued | $ 500 | ||||||
Interest rate of debt issued | 2.50% | 5.95% | |||||
Maturity date of debt issued | Sep. 1, 2022 | ||||||
Senior Notes [Member] | CERC Corp [Member] | |||||||
Debt Instruments [Abstract] | |||||||
Principal amount of debt issued | $ 300 | ||||||
Interest rate of debt issued | 4.10% | ||||||
Maturity date of debt issued | Sep. 1, 2047 | ||||||
Bonds General Mortgage Due 2027 [Member] | CenterPoint Houston [Member] | |||||||
Debt Instruments [Abstract] | |||||||
Principal amount of debt issued | $ 300 | ||||||
Interest rate of debt issued | 3.00% | ||||||
Maturity date of debt issued | Feb. 1, 2027 | ||||||
[1] | The financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive 12-month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification. | ||||||
[2] | As defined in the revolving credit facility agreement, excluding Securitization Bonds. | ||||||
[3] | Based on current credit ratings. | ||||||
[4] | Amended on June 16, 2017 to increase the aggregate commitment size as noted above. | ||||||
[5] | Weighted average interest rate was 1.42% and 1.04% as of September 30, 2017 and December 31, 2016, respectively. | ||||||
[6] | Weighted average interest rate was 1.43% and 1.03% as of September 30, 2017 and December 31, 2016, respectively. |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 37.00% | 35.00% | 36.00% | 37.00% |
Commitments and Contingencies48
Commitments and Contingencies (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
CERC Corp [Member] | Minnesota Service Territory [Member] | |
Environmental Matters | |
Liability recorded for remediation of Minnesota sites | $ 7 |
CERC Corp [Member] | Minnesota Service Territory [Member] | Minimum [Member] | |
Environmental Matters | |
Estimated remediation costs for the Minnesota sites | $ 4 |
Years to resolve contingency | 30 years |
CERC Corp [Member] | Minnesota Service Territory [Member] | Maximum [Member] | |
Environmental Matters | |
Estimated remediation costs for the Minnesota sites | $ 30 |
Years to resolve contingency | 50 years |
Natural Gas Supply Commitments [Member] | |
Natural Gas Supply Commitments | |
Remaining three months of 2017 | $ 169 |
2,018 | 507 |
2,019 | 348 |
2,020 | 166 |
2,021 | 76 |
2022 and beyond | $ 113 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income | $ 169 | $ 179 | $ 496 | $ 331 |
Basic weighted average shares outstanding | 431,026,000 | 430,682,000 | 430,939,000 | 430,581,000 |
Plus: Incremental shares from assumed conversions: | ||||
Diluted weighted average shares | 434,086,000 | 433,396,000 | 433,999,000 | 433,295,000 |
Basic earnings per share | ||||
Net income | $ 0.39 | $ 0.42 | $ 1.15 | $ 0.77 |
Diluted earnings per share | ||||
Net income | $ 0.39 | $ 0.41 | $ 1.14 | $ 0.76 |
Restricted Stock [Member] | ||||
Plus: Incremental shares from assumed conversions: | ||||
Restricted stock | 3,060,000 | 2,714,000 | 3,060,000 | 2,714,000 |
Reportable Business Segments (D
Reportable Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | $ 2,098 | $ 1,889 | $ 6,976 | $ 5,447 | ||
Operating Income | 279 | 284 | 776 | 716 | ||
Assets | 22,135 | 22,135 | $ 21,829 | |||
Equity in earnings of unconsolidated affiliate, net | 68 | 73 | 199 | 164 | ||
Electric Transmission and Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | [1] | 843 | 908 | 2,234 | 2,331 | |
Operating Income | 247 | 257 | 489 | 498 | ||
Electric Transmission and Distribution [Member] | Affiliates of NRG Energy, Inc. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | 221 | 223 | 540 | 527 | ||
Electric Transmission and Distribution [Member] | Affiliates of Vistra Energy Corp. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | 72 | 71 | 172 | 166 | ||
Natural Gas Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | 390 | 370 | 1,767 | 1,672 | ||
Operating Income | 19 | 22 | 220 | 202 | ||
Energy Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | 861 | 608 | 2,964 | 1,433 | ||
Operating Income | 7 | 5 | 58 | 11 | ||
Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | [2] | 0 | 0 | 0 | 0 | |
Operating Income | [2] | 0 | 0 | 0 | 0 | |
Other Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | 4 | 3 | 11 | 11 | ||
Operating Income | 6 | 0 | 9 | 5 | ||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | (18) | (13) | (58) | (38) | ||
Assets | (733) | (733) | (769) | |||
Intersegment Eliminations [Member] | Electric Transmission and Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | 0 | 0 | 0 | 0 | ||
Intersegment Eliminations [Member] | Natural Gas Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | (8) | (7) | (24) | (21) | ||
Intersegment Eliminations [Member] | Energy Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | (10) | (6) | (34) | (17) | ||
Intersegment Eliminations [Member] | Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | [2] | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Other Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from External Customers | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | Electric Transmission and Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 10,289 | 10,289 | 10,211 | |||
Operating Segments [Member] | Natural Gas Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 6,067 | 6,067 | 6,099 | |||
Operating Segments [Member] | Energy Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 1,337 | 1,337 | 1,102 | |||
Operating Segments [Member] | Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [2] | 2,481 | 2,481 | 2,505 | ||
Operating Segments [Member] | Other Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [3] | 2,694 | 2,694 | 2,681 | ||
Enable Midstream Partners [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity in earnings of unconsolidated affiliate, net | 68 | 73 | 199 | 164 | ||
Enable Midstream Partners [Member] | Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity in earnings of unconsolidated affiliate, net | 68 | $ 73 | 199 | $ 164 | ||
Pension and Other Postretirement Plans Costs [Member] | Other Operations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Regulatory assets | $ 715 | $ 715 | $ 759 | |||
[1] | Electric Transmission & Distribution revenues from major customers are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions)Affiliates of NRG $221 $223 $540 $527Affiliates of Vistra Energy Corp. 72 71 172 166 | |||||
[2] | Midstream Investments’ equity earnings are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions)Enable $68 $73 $199 $164 | |||||
[3] | Included in total assets of Other Operations as of September 30, 2017 and December 31, 2016 are pension and other postemployment-related regulatory assets of $715 million and $759 million, respectively. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 31, 2017 | Oct. 25, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Subsequent Event [Line Items] | ||||||
Quarterly cash dividend/distribution declared per share | $ 0.2675 | $ 0.2575 | $ 0.8025 | $ 0.7725 | ||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends payable, date declared | Oct. 25, 2017 | |||||
Quarterly cash dividend/distribution declared per share | $ 0.2675 | |||||
Dividends payable, date to be paid | Dec. 8, 2017 | |||||
Dividends payable, date of record | Nov. 16, 2017 | |||||
Subsequent Event [Member] | Enable Midstream Partners [Member] | Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends payable, date declared | Oct. 31, 2017 | |||||
Quarterly cash dividend/distribution declared per share | $ 0.318 | |||||
Expected cash distribution from equity method investment | $ 74 | |||||
Subsequent Event [Member] | Enable Midstream Partners [Member] | Redeemable Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends payable, date declared | Oct. 31, 2017 | |||||
Preferred stock dividends declared per share | $ 0.625 | |||||
Expected cash distribution from cost method investment | $ 9 |