Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

The table below summarizes the Registrants’ outstanding interest rate hedging activity:

	March 31, 2020				December 31, 2019
Hedging Classification	Notional Principal
	CenterPoint  Energy (1)		Houston  Electric		CenterPoint  Energy (1)		Houston  Electric
	(in millions)
Economic hedge	$	84	$	—	$	84	$	—

(1)

Relates to interest rate derivative instruments at SIGECO.

Fair Value of Derivative Instruments [Table Text Block]

The following tables present information about derivative instruments and hedging activities. The first three tables provide a balance sheet overview of Derivative Assets and Liabilities, while the last two tables provide a breakdown of the related income statement impacts. The Energy Services Disposal Group’s derivative balances are reported in assets or liabilities held for sale. See Note 3 for further information.

Fair Value of Derivative Instruments and Hedged Items

CenterPoint Energy

		March 31, 2020				December 31, 2019
	Balance Sheet Location	Derivative Assets Fair Value		Derivative Liabilities Fair Value		Derivative Assets Fair Value		Derivative Liabilities Fair Value
		(in millions)
Derivatives designated as fair value hedges:
Natural gas derivatives (1) (2) (3)	Current Liabilities: Current liabilities held for sale	18		—		12		—
Derivatives not designated as hedging instruments:
Natural gas derivatives (1) (2) (3)	Current Assets: Current assets held for sale	215		2		139		3
Natural gas derivatives (1) (2) (3)	Other Assets: Non-current assets held for sale	—		—		58		—
Natural gas derivatives (1) (2) (3)	Current Liabilities: Non-trading derivative liabilities	—		9		—		7
Natural gas derivatives (1) (2) (3)	Current Liabilities: Current liabilities held for sale	113		217		73		177
Natural gas derivatives (1) (2) (3)	Other Liabilities: Non-trading derivative liabilities	—		14		—		15
Natural gas derivatives (1) (2) (3)	Other Liabilities: Non-current liabilities held for sale	—		—		10		39
Interest rate derivatives	Other Liabilities	—		26		—		10
Indexed debt securities derivative	Current Liabilities	—		758		—		893
Total CenterPoint Energy		$	346	$	1,026	$	292	$	1,144

(1) The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 2,126 Bcf or a net 232 Bcf long position and 2,226 Bcf or a net 374 Bcf long position as of March 31, 2020 and December 31, 2019, respectively. Certain natural gas contracts hedge basis risk only and lack a fixed price exposure.

(2) Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. The net of total non-trading natural gas derivative assets and liabilities is detailed in the Offsetting of Natural Gas Derivative Assets and Liabilities table below.

(3) Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable.

CERC

		March 31, 2020				December 31, 2019
	Balance Sheet Location	Derivative Assets Fair Value		Derivative Liabilities Fair Value		Derivative Assets Fair Value		Derivative Liabilities Fair Value
		(in millions)
Derivatives designated as fair value hedges:
Natural gas derivatives (1) (2) (3)	Current Liabilities: Current liabilities held for sale	$	18	$	—	$	12	$	—
Derivatives not designated as hedging instruments:
Natural gas derivatives (1) (2) (3)	Current Assets: Current assets held for sale	215		2		139		3
Natural gas derivatives (1) (2) (3)	Other Assets: Non-current assets held for sale	—		—		58		—
Natural gas derivatives (1) (2) (3)	Current Liabilities: Current liabilities held for sale	113		217		73		177
Natural gas derivatives (1) (2) (3)	Other Liabilities: Non-current liabilities held for sale	—		—		10		39
Total CERC		$	346	$	219	$	292	$	219

(1) The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 2,126 Bcf or a net 232 Bcf long position and 2,226 Bcf or a net 374 Bcf long position as of March 31, 2020 and December 31, 2019, respectively. Certain natural gas contracts hedge basis risk only and lack a fixed price exposure.

(2) Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due The net of total non-trading natural gas derivative assets and liabilities is detailed in the Offsetting of Natural Gas Derivative Assets and Liabilities table below.

(3) Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable.

Cumulative Basis Adjustment for Fair Value Hedges (CenterPoint Energy and CERC)

		March 31, 2020
	Balance Sheet Location	Carrying Amount of Hedged Assets/(Liabilities)						Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item
		CenterPoint Energy			CERC			CenterPoint Energy			CERC
		(in millions)
Hedged items in fair value hedge relationship:
Natural gas inventory	Current Assets: Current assets held for sale	$	45		$	45		$	(19	)	$	(19	)
Borrowed natural gas	Current Liabilities: Current liabilities held for sale	(2		)	(2		)	—			—
Gas imbalance receivable	Current Assets: Current assets held for sale	2			2			(2		)	(2		)
Gas imbalance payable	Current Liabilities: Current liabilities held for sale	—			—			1			1
Total		$	45		$	45		$	(20	)	$	(20	)

		December 31, 2019
	Balance Sheet Location	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item
		CenterPoint Energy		CERC		CenterPoint Energy			CERC
		(in millions)
Hedged items in fair value hedge relationship:
Natural gas inventory	Current Assets: Current assets held for sale	$	47	$	47	$	(13	)	$	(13	)
Total		$	47	$	47	$	(13	)	$	(13	)

Offsetting of Natural Gas Derivative Assets and Liabilities [Table Text Block]

Offsetting of Natural Gas Derivative Assets and Liabilities (CenterPoint Energy and CERC)

CenterPoint Energy

	March 31, 2020									December 31, 2019
	Gross Amounts Recognized (1)			Gross Amounts Offset in the Consolidated Balance Sheets			Net Amount Presented in the Consolidated Balance Sheets (2)			Gross Amounts Recognized (1)			Gross Amounts Offset in the Consolidated Balance Sheets			Net Amount Presented in the Consolidated Balance Sheets (2)
	(in millions)
Current Assets: Current assets held for sale	$	346		$	(133	)	$	213		$	224		$	(88	)	$	136
Other Assets: Non-current assets held for sale	—			—			—			68			(10		)	58
Current Liabilities: Non-trading derivative liabilities	(9		)	—			(9		)	(7		)	—			(7		)
Current Liabilities: Current liabilities held for sale	(219		)	183			(36		)	(180		)	136			(44		)
Other Liabilities: Non-trading derivative liabilities	(14		)	—			(14		)	(15		)	—			(15		)
Other Liabilities: Non-current liabilities held for sale	—			—			—			(39		)	25			(14		)
Total CenterPoint Energy	$	104		$	50		$	154		$	51		$	63		$	114

CERC

	March 31, 2020									December 31, 2019
	Gross Amounts Recognized (1)			Gross Amounts Offset in the Consolidated Balance Sheets			Net Amount Presented in the Consolidated Balance Sheets (2)			Gross Amounts Recognized (1)			Gross Amounts Offset in the Consolidated Balance Sheets			Net Amount Presented in the Consolidated Balance Sheets (2)
	(in millions)
Current Assets: Current assets held for sale	$	346		$	(133	)	$	213		$	224		$	(88	)	$	136
Other Assets: Non-current assets held for sale	—			—			—			68			(10		)	58
Current Liabilities: Current liabilities held for sale	(219		)	183			(36		)	(180		)	136			(44		)
Other Liabilities: Non-current liabilities held for sale	—			—			—			(39		)	25			(14		)
Total CERC	$	127		$	50		$	177		$	73		$	63		$	136

(1) Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements.

(2) The derivative assets and liabilities on the Registrant’s respective Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default.

Income Statement Impact of Derivative Activity [Table Text Block]

Income Statement Impact of Hedge Accounting Activity (CenterPoint Energy and CERC)

	Three Months Ended March 31,
	2020						2019
	Location and Amount of Gain (Loss) recognized in Income on Hedging Relationship (1)
	Income from discontinued operations
	CenterPoint Energy			CERC			CenterPoint Energy			CERC
	(in millions)
Total amounts presented in the statements of income in which the effects of hedges are recorded	$	887		$	786		$	1,251		$	1,171
Gain (loss) on fair value hedging relationships:
Commodity contracts:
Hedged items in fair value hedging relationships	(7		)	(7		)	(6		)	(6		)
Derivatives designated as hedging instruments	7			7			6			6
Amounts excluded from effectiveness testing recognized in earnings immediately	(38		)	(38		)	(14		)	(14		)

(1) Income statement impact associated with cash flow hedge activity is related to gains and losses reclassified from Accumulated other comprehensive income into income. Amounts are immaterial for each Registrant in the three months ended March 31, 2020 and 2019, respectively.

CenterPoint Energy

			Three Months Ended March 31,
	Income Statement Location		2020		2019
		(in millions)
Effects of derivatives not designated as hedging instruments on the income statement:
Commodity contracts	Income from discontinued operations		$	75	$	4
Indexed debt securities derivative	Gain (loss) on indexed debt securities		135		(86		)
Total CenterPoint Energy			$	210	$	(82	)

CERC

			Three Months Ended March 31,
	Income Statement Location		2020		2019
		(in millions)
Effects of derivatives not designated as hedging instruments on the income statement:
Commodity contracts	Income from discontinued operations		$	75	$	4
Total CERC			$	75	$	4

Disclosure of Credit Derivatives [Table Text Block]

CenterPoint Energy and CERC enter into financial derivative contracts containing material adverse change provisions. These provisions could require CenterPoint Energy or CERC to post additional collateral if the S&P or Moody’s credit ratings of CenterPoint Energy, Inc. or its subsidiaries, including CERC Corp., are downgraded. 

	March 31, 2020				December 31, 2019
	CenterPoint Energy		CERC		CenterPoint Energy		CERC
	(in millions)
Aggregate fair value of derivatives containing material adverse change provisions in a net liability position	$	1	$	1	$	1	$	1
Fair value of collateral already posted	—		—		—		—
Additional collateral required to be posted if credit risk contingent features triggered	1		1		1		1