Reportable Business Segments

3 Months Ended

Mar. 31, 2015

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.

Financial data for business segments is as follows (in millions):

	For the Three Months Ended March 31, 2015
	Revenues from External Customers		Inter-segment Revenues			Operating Income (Loss)		Total Assets as of March 31, 2015
Natural Gas Distribution	$	1,185	$	8		$	146	$	5,335
Energy Services	632		18			13		891
Midstream Investments (1)	—		—			—		4,501
Other	—		—			1		963
Reconciling Eliminations	—		(26		)	—		(907		)
Consolidated	$	1,817	$	—		$	160	$	10,783

	For the Three Months Ended March 31, 2014
	Revenues from External Customers		Inter-segment Revenues			Operating Income (Loss)		Total Assets as of December 31, 2014
Natural Gas Distribution	$	1,478	$	9		$	162	$	5,464
Energy Services	1,052		32			26		978
Midstream Investments (1)	—		—			—		4,521
Other	1		—			—		1,046
Reconciling Eliminations	—		(41		)	—		(964		)
Consolidated	$	2,531	$	—		$	188	$	11,045

(1) Midstream Investments reported equity earnings of $52 million from Enable and $-0- of equity earnings from CERC’s interest in SESH for the three months ended March 31, 2015. Midstream Investments reported equity earnings of $88 million from Enable and $3 million of equity earnings from CERC’s interest in SESH for the three months ended March 31, 2014. Included in total assets of Midstream Investments as of March 31, 2015 and December 31, 2014 is $4,500 million and $4,520 million, respectively, related to CERC’s investment in Enable and $1 million and $1 million, respectively, related to CERC’s retained interest in SESH.