Regulatory Accounting

6 Months Ended

Jun. 30, 2019

Regulatory Assets and Liabilities, Other Disclosures [Abstract]

Regulatory Accounting

The following is a list of regulatory assets and liabilities reflected on the Registrants’ respective Condensed Consolidated Balance Sheets:



	June 30, 2019									December 31, 2018
	CenterPoint Energy			Houston Electric			CERC			CenterPoint Energy			Houston Electric			CERC
Regulatory Assets:	(in millions)
Current regulatory assets (1)	$	20		$	—		$	20		$	77		$	—		$	77
Non-current regulatory assets:
Securitized regulatory assets	895			895			—			1,059			1,059			—
Unrecognized equity return (2)	(189		)	(189		)	—			(213		)	(213		)	—
Unamortized loss on reacquired debt (3)	65			65			—			68			68			—
Pension and postretirement-related regulatory asset (3)	697			34			28			725			33			30
Hurricane Harvey restoration costs (3)	68			64			4			68			64			4
Regulatory assets related to TCJA (3) (4)	30			23			7			33			23			10
Asset retirement obligation (3)	140			25			90			109			24			85
Other regulatory assets-not earning a return (5)	133			74			28			81			55			26
Other regulatory assets	389			25			30			37			11			26
Total non-current regulatory assets	2,228			1,016			187			1,967			1,124			181
Total regulatory assets	2,248			1,016			207			2,044			1,124			258
Regulatory Liabilities:
Current regulatory liabilities (6)	55			5			43			38			17			21
Non-current regulatory liabilities:
Regulatory liabilities related to TCJA (4)	1,616			834			453			1,323			847			476
Estimated removal costs	1,415			271			629			886			269			617
Other regulatory liabilities	436			181			152			316			182			134
Total non-current regulatory liabilities	3,467			1,286			1,234			2,525			1,298			1,227
Total regulatory liabilities	3,522			1,291			1,277			2,563			1,315			1,248
Total regulatory assets and liabilities, net	$	(1,274	)	$	(275	)	$	(1,070	)	$	(519	)	$	(191	)	$	(990	)


(1)	Current regulatory assets are included in Prepaid expenses and other current assets in the Registrants’ respective Condensed Consolidated Balance Sheets.

(2)

The unrecognized equity return will be recognized as it is recovered in rates through 2024. The timing of CenterPoint Energy’s and Houston Electric’s recognition of the equity return will vary each period based on amounts actually collected during the period. The actual amounts recognized are adjusted at least annually to correct any over-collections or under-collections during the preceding 12 months.



	Three Months Ended June 30,								Six Months Ended June 30,
	2019				2018				2019				2018
	CenterPoint Energy		Houston Electric		CenterPoint Energy		Houston Electric		CenterPoint Energy		Houston Electric		CenterPoint Energy		Houston Electric
	(in millions)
Allowed equity return recognized	$	13	$	13	$	24	$	24	$	24	$	24	$	45	$	45


(3)	Substantially all of these regulatory assets are not earning a return.


(4)	The EDIT and deferred revenues will be recovered or refunded to customers as required by tax and regulatory authorities.


(5)	Regulatory assets acquired in the Merger and not earning a return were recorded at fair value as of the Merger Date. Such fair value adjustments are recognized over time until the regulatory asset is recovered.

(6)

Current regulatory liabilities are included in Other current liabilities in each of the Registrants’ respective Condensed Consolidated Balance Sheets.