Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions

CERC participates in a money pool through which it can borrow or invest on a short-term basis. Funding needs are aggregated and external borrowing or investing is based on the net cash position. The net funding requirements of the money pool are expected to be met with borrowings under CenterPoint Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper. CERC had no investments in the money pool as of both December 31, 2016 and December 31, 2015, which are included in accounts and notes receivable–affiliated companies in the Consolidated Balance Sheets. Affiliate related net interest income (expense) was not material for the years ended December 31, 2016, 2015 and 2014.

CenterPoint Energy provides some corporate services to CERC. The costs of services have been charged directly to CERC using methods that management believes are reasonable. These methods include negotiated usage rates, dedicated asset assignment and proportionate corporate formulas based on operating expenses, assets, gross margin, employees and a composite of assets, gross margin and employees. Houston Electric provides a number of services to CERC. These services are billed at actual cost, either directly or as an allocation, and include fleet services, shop services, geographic services, surveying and right-of-way services, radio communications, data circuit management and field operations. Additionally, CERC provides certain services to Houston Electric. These services are billed at actual cost, either directly or as an allocation and include line locating and other miscellaneous services. These charges are not necessarily indicative of what would have been incurred had CERC not been an affiliate of CenterPoint Energy. Amounts charged to and from CERC for these services were as follows and are included primarily in operation and maintenance expenses:



	Year Ended December 31,
	2016			2015			2014
	(in millions)
Corporate service charges	$	125		$	118		$	115

Charges from Houston Electric for services provided	15			18			17

Billings to Houston Electric for services provided	(7		)	(6		)	(5		)
	$	133		$	130		$	127

Dividends of $643 million, $43 million and $405 million were paid to the parent in 2016, 2015 and 2014, respectively.

See Note 11 for related party transactions with Enable.