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Reportable Segments
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Reportable Business Segments [Text Block] Reportable Segments

The Registrants’ determination of reportable segments considers the strategic operating units under which the Registrants’ CODM manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. As of January 1, 2020, the Registrants’ CODM views net income as the measure of profit or loss for the reportable segments rather than the previous measure of operating income. Certain prior year amounts have been reclassified to conform to the current year presentation.

As of March 31, 2020, reportable segments by Registrant were as follows:
Registrants
 
Houston Electric T&D
 
Indiana Electric Integrated
 
Natural Gas Distribution
 
Midstream Investments
CenterPoint Energy
 
X
 
X
 
X
 
X
Houston Electric
 
X
 
 
 
 
 
 
CERC
 
 
 
 
 
X
 
 

•
CenterPoint Energy’s and Houston Electric’s Houston Electric T&D reportable segment consists of electric transmission and distribution services in the Texas Gulf Coast area.

•
CenterPoint Energy’s Indiana Electric Integrated reportable segment consists of electric transmission and distribution services primarily to southwestern Indiana and includes power generation and wholesale power operations.

•
CenterPoint Energy’s Natural Gas Distribution reportable segment consists of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas; (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP, formerly included in the Energy Services reportable segment; and (iii) temporary delivery of LNG and CNG throughout the contiguous 48 states through MES, formerly included in the Energy Services reportable segment.

•
CERC’s Natural Gas Distribution reportable segment consists of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas; (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP, formerly included in the Energy Services reportable segment; and (iii) temporary delivery of LNG and CNG throughout the contiguous 48 states through MES, formerly included in the Energy Services reportable segment.

•
CenterPoint Energy’s Midstream Investments reportable segment consists of the equity investment in Enable (excluding the Enable Series A Preferred Units).

•
CenterPoint Energy’s Corporate and Other consists of energy performance contracting and sustainable infrastructure services through ESG and other corporate operations which support all of the business operations of CenterPoint Energy.

•
CERC’s Corporate and Other consists primarily of corporate operations which support all of the business operations of CERC.

Discontinued Operations

On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group, which consists of underground pipeline construction and repair services. Accordingly, the previously reported Infrastructure Services reportable segment has been eliminated. The transaction closed on April 9, 2020. See Note 3 for further information.

Additionally, on February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group, which consists of non-rate regulated natural gas sales and service operations. Accordingly, the previously reported Energy Services reportable segment has been eliminated. The transaction is expected to close in the second quarter of 2020. See Note 3 for further information.


Financial data for reportable segments is as follows:

CenterPoint Energy
 
Three Months Ended March 31,
 
2020
 
Revenues from
External
Customers
 
Equity in Earnings of Unconsolidated Affiliates
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Houston Electric T&D
$
638

(3)
$
—

 
$
129

 
$
1

(1)
$
(41
)
(2)
$
5

 
$
37

Indiana Electric Integrated
129

 
—

 
25

 
—

 
(6
)
 
3

 
(171
)
Natural Gas Distribution
1,318

 
—

 
111

 
1

 
(32
)
 
56

 
204

Midstream Investments
—

 
(1,475
)
 
—

 
—

 
(14
)
 
(361
)
 
(1,127
)
Corporate and Other
82

 
—

 
17

 
48

 
(96
)
 
(50
)
 
4

Eliminations
—

 
—

 
—

 
(50
)
 
50

 
—

 
—

Continuing Operations
$
2,167

 
$
(1,475
)
 
$
282

 
$
—

 
$
(139
)
 
$
(347
)
 
(1,053
)
Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
 
 
(146
)
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
$
(1,199
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
2019
 
Revenues from
External
Customers
 
Equity in Earnings of Unconsolidated Affiliates
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Houston Electric T&D
$
689

(3)
$
—

 
$
175

 
$
4

(1)
$
(40
)
(2)
$
6

 
$
30

Indiana Electric Integrated
83

 
—

 
16

 
—

 
(3
)
 
(2
)
 
(9
)
Natural Gas Distribution
1,415

 
—

 
95

 
1

 
(23
)
 
26

 
120

Midstream Investments
—

 
62

 
—

 
2

 
(12
)
 
28

 
24

Corporate and Other
42

 
—

 
14

 
46

 
(84
)
 
(44
)
 
(22
)
Eliminations
—

 
—

 
—

 
(41
)
 
41

 
—

 
—

Consolidated
$
2,229

 
$
62

 
$
300

 
$
12

 
$
(121
)
 
$
14

 
143

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
 
 
26

Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
$
169



(1)
Excludes interest income from Securitization Bonds of $1 million and $2 million for the three months ended March 31, 2020 and 2019, respectively.

(2)
Excludes interest expense on Securitization Bonds of $8 million and $12 million for the three months ended March 31, 2020 and 2019, respectively.

(3)
CenterPoint Energy’s Houston Electric T&D’s revenues from major external customers are as follows:
 
 
Three Months Ended March 31,
 
 
2020
 
2019
 
 
(in millions)
Affiliates of NRG
 
$
156

 
$
151

Affiliates of Vistra Energy Corp.
 
81

 
54



Houston Electric

Houston Electric consists of a single reportable segment; therefore, a tabular reportable segment presentation has not been
included.

Houston Electric’s T&D revenues from major external customers are as follows:
 
 
Three Months Ended March 31,
 
 
2020
 
2019
 
 
(in millions)
Affiliates of NRG
 
$
156

 
$
151

Affiliates of Vistra Energy Corp.
 
81

 
54



CERC
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
2020
 
Revenues from
External
Customers
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Natural Gas Distribution
$
1,008

 
$
74

 
$
1

 
$
(21
)
 
$
44

 
$
134

Corporate and Other
3

 
—

 
21

 
(31
)
 
(9
)
 
(3
)
Eliminations
—

 
—

 
(22
)
 
22

 
—

 
—

Continuing Operations
$
1,011

 
$
74

 
$
—

 
$
(30
)
 
$
35

 
131

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
(64
)
Consolidated
 
 
 
 
 
 
 
 
 
 
$
67

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
2019
 
Revenues from
External
Customers
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Natural Gas Distribution
$
1,211

 
$
73

 
$
1

 
$
(19
)
 
$
26

 
$
119

Corporate and Other
1

 
—

 
20

 
(31
)
 
(8
)
 
(9
)
Eliminations
—

 
—

 
(21
)
 
21

 
—

 
—

Continuing Operations
$
1,212

 
$
73

 
$
—

 
$
(29
)
 
$
18

 
110

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
28

Consolidated
 
 
 
 
 
 
 
 
 
 
$
138


CenterPoint Energy and CERC
 
Total Assets
 
March 31, 2020
 
December 31, 2019
 
CenterPoint
 Energy
 
CERC
 
CenterPoint
Energy
 
CERC
 
(in millions)
Houston Electric T&D
$
10,870

 
$
—

 
$
11,264

 
$
—

Indiana Electric Integrated
3,015

 
—

 
3,168

 
—

Natural Gas Distribution
13,979

 
7,562

 
14,105

 
7,698

Midstream Investments
915

 
—

 
2,473

 
—

Corporate and Other, net of eliminations
2,969

 
(87
)
 
2,555

 
(90
)
Continuing Operations
31,748

 
7,475

 
33,565

 
7,608

Assets Held for Sale
1,647

 
675

 
1,964

 
904

Consolidated
$
33,395

 
$
8,150

 
$
35,529

 
$
8,512