Reportable Business Segments

9 Months Ended

Sep. 30, 2011

Reportable Business Segments [Abstract]

Reportable Business Segments

Reportable Business Segments

Because CERC Corp. 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, Competitive Natural Gas Sales and Services, Interstate Pipelines, Field Services and Other Operations.  Natural Gas Distribution consists of rate-regulated intrastate natural gas sales to, and natural gas transportation and distribution for, residential, commercial, industrial and institutional customers.  Competitive Natural Gas Sales and Services represents CERC's non-rate regulated gas sales and services operations, which consist of three operational functions: wholesale, retail and intrastate pipelines.  The Interstate Pipelines business segment includes the interstate natural gas pipeline operations.  The Field Services business segment includes the non-rate regulated natural gas gathering, processing and treating operations.  Our Other Operations business segment includes unallocated corporate costs and inter-segment eliminations.

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

	For the Three Months Ended September 30, 2010
	Revenues from External Customers		Net Intersegment Revenues			Operating Income (Loss)
Natural Gas Distribution	$	395	$	3		$	(4	)
Competitive Natural Gas Sales and Services		638		9			7
Interstate Pipelines		136		34			68
Field Services		81		13			40
Other Operations		-		-			-
Eliminations		-		(59	)		-
Consolidated	$	1,250	$	-		$	111

	For the Three Months Ended September 30, 2011
	Revenues from External Customers		Net Intersegment Revenues			Operating Income (Loss)
Natural Gas Distribution	$	379	$	5		$	(2	)
Competitive Natural Gas Sales and Services		580		4			(10	)
Interstate Pipelines		104		31			60
Field Services		108		9			61
Other Operations		-		-			2
Eliminations		-		(49	)		-
Consolidated	$	1,171	$	-		$	111

	For the Nine Months Ended September 30, 2010
	Revenues from External Customers		Net Intersegment Revenues			Operating Income (Loss)			Total Assets as of December 31, 2010
Natural Gas Distribution	$	2,390	$	10		$	145		$	4,575
Competitive Natural Gas Sales and Services		2,032		27			16			1,190
Interstate Pipelines		352		104			207			3,672
Field Services		205		37			94			1,803
Other Operations		-		-			(2	)		659
Eliminations		-		(178	)		-			(1,361	)
Consolidated	$	4,979	$	-		$	460		$	10,538

	For the Nine Months Ended September 30, 2011
	Revenues from External Customers		Net Intersegment Revenues			Operating Income (Loss)			Total Assets as of September 30, 2011
Natural Gas Distribution	$	2,034	$	14		$	153		$	4,379
Competitive Natural Gas Sales and Services		1,858		18			3			1,108
Interstate Pipelines		328		96			196			3,826
Field Services		274		31			136			1,862
Other Operations		-		-			(3	)		435
Eliminations		-		(159	)		-			(1,333	)
Consolidated	$	4,494	$	-		$	485		$	10,277