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Reportable Business Segments
 12 Months Ended
Dec. 31, 2013
Reportable Business Segments [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. The accounting policies of the business segments are the same as those described in the summary of significant accounting policies except that some executive benefit costs have not been allocated to business segments.  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, Energy 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. Energy 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 CenterPoint Energy’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 a new Midstream Investments segment, and no longer has Interstate Pipelines and Field Services reporting segments prospectively. See Note 10 for further discussion on Enable formation.

Long-lived assets include net property, plant and equipment, net goodwill and other intangibles and equity investments in unconsolidated subsidiaries. Intersegment sales are eliminated in consolidation.

Financial data for business segments and products and services are as follows (in millions):

 
Revenues
from
External
Customers
 
Inter-segment
Revenues
 
Depreciation
and
Amortization
 
Operating
Income
(Loss)
 
Total Assets
 
Expenditures
for Long-
Lived Assets
As of and for the year ended December 31, 2013:
 

 
 

 
 

 
 

 
 

 
 

Natural Gas Distribution
$
2,837

 
$
26

 
$
185

 
$
263

 
$
4,976

 
$
430

Energy Services
2,374

 
27

 
5

 
13

 
895

 
3

Interstate Pipelines (1) (3)
133

 
53

 
20

 
72

 
—

 
29

Field Services (2) (3)
178

 
18

 
20

 
73

 
—

 
16

Midstream Investments (4)
—

 
—

 
—

 
—

 
4,518

 
—

Other
—

 
—

 
—

 
(20
)
 
1,149

 
—

Reconciling Eliminations
—

 
(124
)
 
—

 
—

 
(996
)
 
—

Consolidated
$
5,522

 
$
—

 
$
230

 
$
401

 
$
10,542

 
$
478

As of and for the year ended December 31, 2012:
 

 
 

 
 

 
 

 
 

 
 

Natural Gas Distribution
$
2,320

 
$
22

 
$
173

 
$
226

 
$
4,775

 
$
359

Energy Services
1,758

 
26

 
6

 
(250
)
 
839

 
6

Interstate Pipelines (1)
356

 
146

 
56

 
207

 
4,004

 
132

Field Services (2)
467

 
39

 
50

 
214

 
2,453

 
52

Other
—

 
—

 
—

 
(3
)
 
647

 
—

Reconciling Eliminations
—

 
(233
)
 
—

 
—

 
(1,528
)
 
—

Consolidated
$
4,901

 
$
—

 
$
285

 
$
394

 
$
11,190

 
$
549

As of and for the year ended December 31, 2011:
 

 
 

 
 

 
 

 
 

 
 

Natural Gas Distribution
$
2,823

 
$
18

 
$
166

 
$
226

 
$
4,636

 
$
295

Energy Services
2,488

 
23

 
5

 
6

 
1,089

 
5

Interstate Pipelines (1)
421

 
132

 
54

 
248

 
3,867

 
98

Field Services (2)
370

 
42

 
37

 
189

 
1,894

 
201

Other
—

 
—

 
—

 
(7
)
 
660

 
—

Reconciling Eliminations
—

 
(215
)
 
—

 
—

 
(1,459
)
 
—

Consolidated
$
6,102

 
$
—

 
$
262

 
$
662

 
$
10,687

 
$
599

________________
(1)
Interstate Pipelines recorded equity income of $7 million, $26 million and $21 million in the years ended December 31, 2013, 2012 and 2011, respectively, from its 50% interest in SESH, a jointly-owned pipeline. These amounts are included in Equity in earnings of unconsolidated affiliates under the Other Income (Expense) caption.  Interstate Pipelines’ investment in SESH was $404 million and $409 million as of December 31, 2012 and 2011, respectively, and is included in Investment in unconsolidated affiliates. As discussed above, effective May 1, 2013, CenterPoint Energy reports equity earnings associated with its interest in Enable and equity earnings associated with its retained interest in SESH under a new Midstream Investments segment, and no longer has an Interstate Pipelines reporting segment prospectively.

(2)
Field Services recorded equity income of $5 million and $9 million for the years ended December 31, 2012 and 2011, respectively, from its 50% interest in a jointly-owned gas processing plant. These amounts are included in Equity in earnings of unconsolidated affiliates under the Other Income (Expense) caption.  Field Services’ investment in the jointly-owned gas processing plant was $63 million as of December 31, 2011, respectively, and is included in Investment in unconsolidated affiliates. Beginning on August 1, 2012, financial results for Waskom are included in operating income due to the July 31, 2012 purchase of the 50% interest in Waskom that CenterPoint Energy did not already own. CERC contributed 100% interest in Waskom to Enable on May 1, 2013. Effective May 1, 2013, CERC equity earnings associated with its interest in Enable under a new Midstream Investments segment, and no longer has a Field Services reporting segment prospectively.

(3)
Results reflected in the year ended December 31, 2013 represent only January 2013 through April 2013.

(4)
Midstream Investments reported equity earnings of $173 million from Enable and $8 million of equity earnings from CERC’s retained interest in SESH for the eight months ended December 31, 2013. Included in total assets of Midstream Investments as of December 31, 2013 is $4,319 million related to CERC’s investment in Enable and $199 million related to CERC’s retained interest in SESH.
 
Year Ended December 31,
Revenues by Products and Services:
2013
 
2012
 
2011
 
(in millions)
Retail gas sales
$
4,150

 
$
3,328

 
$
4,019

Wholesale gas sales
913

 
613

 
1,149

Gas transportation and processing
345

 
847

 
824

Energy products and services
114

 
113

 
110

Total
$
5,522

 
$
4,901

 
$
6,102