Employee Benefit Plans

The Registrants’ net periodic cost, before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes, includes the following components relating to pension and postretirement benefits:

Pension Benefits (CenterPoint Energy)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in millions)
Service cost (1)	$	10		$	9		$	28		$	27
Interest cost (2)	20			22			59			66
Expected return on plan assets (2)	(27		)	(24		)	(80		)	(72		)
Amortization of prior service cost (2)	3			2			7			7
Amortization of net loss (2)	10			14			32			43
Net periodic cost	$	16		$	23		$	46		$	71

Postretirement Benefits



	Three Months Ended September 30,
	2018									2017
	CenterPoint Energy			Houston Electric			CERC			CenterPoint Energy			Houston Electric			CERC
	(in millions)
Service cost (1)	$	—		$	—		$	1		$	—		$	—		$	1
Interest cost (2)	3			2			1			4			3			1
Expected return on plan assets (2)	(1		)	(1		)	—			(1		)	(1		)	(1		)
Amortization of prior service credit (2)	(1		)	(1		)	—			(1		)	(2		)	—
Net periodic cost	$	1		$	—		$	2		$	2		$	—		$	1

	Nine Months Ended September 30,
	2018									2017
	CenterPoint Energy			Houston Electric			CERC			CenterPoint Energy			Houston Electric			CERC
	(in millions)
Service cost (1)	$	1		$	—		$	1		$	1		$	—		$	1
Interest cost (2)	10			6			3			12			7			3
Expected return on plan assets (2)	(4		)	(3		)	(1		)	(4		)	(3		)	(1		)
Amortization of prior service cost (credit) (2)	(3		)	(4		)	1			(3		)	(4		)	1
Net periodic cost (credit)	$	4		$	(1	)	$	4		$	6		$	—		$	4


(1)	Amounts presented in the table above are included in Operation and maintenance expense in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals.


(2)	Amounts presented in the table above are included in Other, net in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of regulatory deferrals.

Changes in accumulated other comprehensive loss related to defined benefit and postretirement plans are as follows:

CenterPoint Energy



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in millions)
Beginning Balance	$	(63	)	$	(70	)	$	(66	)	$	(72	)
Amounts reclassified from accumulated other comprehensive loss:
Prior service cost (1)	—			—			1			1
Actuarial losses (1)	2			2			5			5
Tax expense	(1		)	(2		)	(2		)	(4		)
Net current period other comprehensive income	1			—			4			2
Ending Balance	$	(62	)	$	(70	)	$	(62	)	$	(70	)


(1)	These accumulated other comprehensive components are included in the computation of net periodic cost.

The table below reflects the expected contributions to be made to the pension plans and postretirement benefit plan during 2018:



	CenterPoint Energy		Houston Electric		CERC
	(in millions)
Expected minimum contribution to pension plans during 2018	$	67	$	—	$	—
Expected contribution to postretirement benefit plan in 2018	16		10		5

The table below reflects the contributions made to the pension plans and postretirement benefit plan during 2018:



	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Pension plans	$	3	$	—	$	—	$	67	$	—	$	—
Postretirement benefit plan	4		3		1		11		7		3