Reportable Business Segments

3 Months Ended

Mar. 31, 2014

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, 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 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. 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 are as follows (in millions):

	For the Three Months Ended March 31, 2014
	Revenues from External Customers		Inter-segment Revenues			Operating Income			Total Assets as of March 31, 2014
Natural Gas Distribution	$	1,478	$	9		$	162		$	5,104
Energy Services	1,052		32			26			1,053
Midstream Investments (1)	—		—			—			4,540
Other	1		—			—			1,320
Reconciling Eliminations	—		(41		)	—			(1,237		)
Consolidated	$	2,531	$	—		$	188		$	10,780
	For the Three Months Ended March 31, 2013
	Revenues from External Customers		Inter-segment Revenues			Operating Income (Loss)			Total Assets as of December 31, 2013
Natural Gas Distribution	$	1,043	$	8		$	139		$	4,976
Energy Services	588		9			7			895
Interstate Pipelines	92		40			52			—
Field Services	130		11			53			—
Midstream Investments (1)	—		—			—			4,518
Other	—		—			(1		)	1,149
Reconciling Eliminations	—		(68		)	—			(996		)
Consolidated	$	1,853	$	—		$	250		$	10,542

(1) Midstream Investments reported equity earnings of $88 million from Enable and $3 million of equity earnings from CenterPoint Energy’s retained interest in SESH for the three months ended March 31, 2014. Included in total assets of Midstream Investments as of March 31, 2014 and December 31, 2013 is $4,340 million and $4,319 million, respectively, related to CenterPoint Energy’s investment in Enable and $200 million and $199 million, respectively, related to CenterPoint Energy’s retained interest in SESH.