XML 16 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Reportable Business Segments
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Reportable Business Segments
Reportable Business Segments

Because CERC is an indirect wholly owned subsidiary of CenterPoint Energy, CERC’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. CERC uses operating income as the measure of profit or loss for its business segments.

CERC’s reportable business segments include the following: Natural Gas Distribution, Competitive Natural Gas Sales and Services, Midstream Investments and Other Operations.  Natural Gas Distribution consists of intrastate natural gas sales to, and natural gas transportation and distribution for, residential, commercial, industrial and institutional customers. Competitive Natural Gas Sales and Services represents CERC’s non-rate regulated gas sales and services operations. Midstream Investments consists primarily of CERC’s investment in Enable and its retained interest in SESH. The Other Operations business segment includes unallocated corporate costs and inter-segment eliminations.

Prior to May 1, 2013, CERC also reported an Interstate Pipelines business segment, which included CERC’s interstate natural gas pipeline operations, and a Field Services business segment, which included CERC’s non-rate regulated natural gas gathering, processing and treating operations. As previously disclosed, the formation of Enable closed on May 1, 2013. Enable now owns substantially all of CERC’s former Interstate Pipelines and Field Services business segments, except for the retained interest in SESH. As a result, effective May 1, 2013, CERC reports equity earnings associated with its interest in Enable and equity earnings associated with its retained interest in SESH under the Midstream Investments segment, and no longer has Interstate Pipelines and Field Services reporting segments prospectively.

Financial data for business segments and products and services are as follows (in millions):
 
For the Three Months Ended September 30, 2012
 
 
 
 
Revenues from
External
Customers
 
Inter-segment
Revenues
 
Operating
Income
(Loss)
 
 
 
Natural Gas Distribution
$
351

 
$
4

 
$
5

 
 
 
Competitive Natural Gas Sales and Services
382

 
7

 
(259
)
 
 
 
Interstate Pipelines
92

 
30

 
48

 
 
 
Field Services
129

 
12

 
55

 
 
 
Other
—

 
—

 
(1
)
 
 
 
Reconciling Eliminations
—

 
(53
)
 
—

 
 
 
Consolidated
$
954

 
$
—

 
$
(152
)
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended September 30, 2013
 
 

 
 
Revenues from
External
Customers
 
Inter-segment
Revenues
 
Operating
Income
(Loss)
 
 
 
Natural Gas Distribution
$
375

 
$
6

 
$
5

 
 
 
Competitive Natural Gas Sales and Services
516

 
4

 
2

 
 
 
Midstream Investments
—

 
—

 
—

(2) 
 
 
Other
—

 
—

 
(3
)
 
 
 
Reconciling Eliminations
—

 
(10
)
 
—

 
 
 
Consolidated
$
891

 
$
—

 
$
4

 
 
 
 
 
 
 
 
 
 
 
 
 
For the Nine Months Ended September 30, 2012
 
 

 
 
Revenues from
External
Customers
 
Inter-segment
Revenues
 
Operating
Income (Loss)
 
Total Assets as of December 31, 2012
 
Natural Gas Distribution
$
1,560

 
$
15

 
$
135

 
$
4,775

 
Competitive Natural Gas Sales and Services
1,204

 
18

 
(262
)
 
839

 
Interstate Pipelines
262

 
112

 
160

 
4,004

 
Field Services
324

 
26

 
153

 
2,453

 
Other
—

 
—

 
(3
)
 
647

 
Reconciling Eliminations
—

 
(171
)
 
—

 
(1,528
)
 
Consolidated
$
3,350

 
$
—

 
$
183

 
$
11,190

 
 
 
 
 
 
 
 
 
 
 
For the Nine Months Ended September 30, 2013
 
 

 
 
Revenues from
External
Customers
 
Inter-segment
Revenues
 
Operating
Income (Loss)
 
Total Assets
as of September 30, 2013
 
Natural Gas Distribution
$
1,942

 
$
19

 
$
169

 
$
4,776

 
Competitive Natural Gas Sales and Services
1,726

 
19

 
12

 
806

 
Interstate Pipelines
133

(1) 
53

(1) 
72

(1) 
—

 
Field Services
178

(1) 
18

(1) 
73

(1) 
—

 
Midstream Investments
—

 
—

 
—

 
4,525

(2) 
Other
—

 
—

 
(16
)
 
801

 
Reconciling Eliminations
—

 
(109
)
 
—

 
(799
)
 
Consolidated
$
3,979

 
$
—

 
$
310

 
$
10,109

 


(1)
Results reflected in the nine months ended September 30, 2013 represent only January 2013 through April 2013.

(2)
Midstream Investments reported equity earnings of $77 million from Enable and $3 million of equity earnings from CERC’s retained interest in SESH for the three months ended September 30, 2013. Midstream Investments reported equity earnings of $110 million from Enable and $5 million of equity earnings from CERC’s retained interest in SESH for the five months ended September 30, 2013. Included in total assets of Midstream Investments as of September 30, 2013 is $4,326 million related to CERC’s investment in Enable and $199 million related to CERC’s retained interest in SESH.