Investment in Unconsolidated Affiliates:



	As of December 31,
	2016		2015
	(in millions)
Enable	$	2,505	$	2,594

Equity in Earnings (Losses) of Unconsolidated Affiliates, net:



	Year Ended December 31,
	2016		2015			2014
	(in millions)
Enable	$	208	$	(1,633	)	$	303
SESH (1)	—		—			5
Total	$	208	$	(1,633	)	$	308


(1)	CERC contributed a 24.95% interest in SESH to Enable on May 30, 2014 and its remaining 0.1% interest in SESH to Enable on June 30, 2015.

Limited Partner Interest in Enable:



	As of December 31,
	2016			2015		2014
CenterPoint Energy	54.1	%	(1)	55.4	%	55.4	%
OGE	25.7	%		26.3	%	26.3	%


(1)	In November 2016, Enable closed a public offering of 10,000,000 common units. In connection with the offering, Enable and an affiliate of ArcLight sold an additional combined 1,500,000 common units to the underwriters.

Enable Common and Subordinated Units Held:

Sales of more than 5% of the aggregate of the common units and subordinated units we own in Enable or sales by OGE of more than 5% of the aggregate of the common units and subordinated units it owns in Enable are subject to mutual rights of first offer and first refusal.

Enable is controlled jointly by CERC Corp. and OGE, and each own 50% of the management rights in the general partner of Enable. Sale of our or OGE’s ownership interests in Enable’s general partner to a third party is subject to mutual rights of first offer and first refusal, and we are not permitted to dispose of less than all of our interest in Enable’s general partner.

Summarized consolidated income (loss) information for Enable is as follows:



	Year Ended December 31,
	2016		2015			2014
	(in millions)
Operating revenues	$	2,272	$	2,418		$	3,367
Cost of sales, excluding depreciation and amortization	1,017		1,097			1,914
Impairment of goodwill and other long-lived assets	9		1,134			8
Operating income (loss)	385		(712		)	586
Net income (loss) attributable to Enable	290		(752		)	530

Reconciliation of Equity in Earnings (Losses), net:
CERC’s interest	$	160	$	(416	)	$	298
Basis difference amortization (1)	48		8			5
Impairment of CERC’s equity method investment in Enable	—		(1,225		)	—
CERC’s equity in earnings (losses), net (2)	$	208	$	(1,633	)	$	303


(1)	Equity in earnings of unconsolidated affiliates includes CERC’s share of Enable earnings adjusted for the amortization of the basis difference of CERC’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference is being amortized over approximately 33 years, the average life of the assets to which the basis difference is attributed.


(2)	These amounts include impairment charges totaling $1,846 million composed of CERC’s impairment of its equity method investment in Enable of $1,225 million and CERC’s share, $621 million, of impairment charges Enable recorded for goodwill and long-lived assets for the year ended December 31, 2015. This impairment is offset by $213 million of earnings for the year ended December 31, 2015.

Summarized consolidated balance sheet information for Enable is as follows:



	December 31,
	2016			2015
	(in millions)
Current assets	$	396		$	381
Non-current assets	10,816			10,845
Current liabilities	362			615
Non-current liabilities	3,056			3,080
Non-controlling interest	12			12
Preferred equity	362			—
Enable partners’ capital	7,420			7,519

Reconciliation of Investment in Enable:
CERC’s ownership interest in Enable partners’ capital	$	4,067		$	4,163
CERC’s basis difference	(1,562		)	(1,569		)
CERC’s investment in Enable	$	2,505		$	2,594

Distributions Received from Unconsolidated Affiliates:



	Year Ended December 31,
	2016		2015		2014
	(in millions)
Investment in Enable’s common and subordinated units	$	297	$	294	$	298
Interest in SESH (1)	—		—		7
Total	$	297	$	294	$	305


(1)	CERC contributed a 24.95% interest in SESH to Enable on May 30, 2014 and its remaining 0.1% interest in SESH to Enable on June 30, 2015.

December 31, 2016

Subordinated

CenterPoint Energy