Related Party Transactions (Houston Electric and CERC) (Tables)

3 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

Schedule of Money Pool Investment and Borrowing [Table Text Block]

The table below summarizes CenterPoint Energy money pool activity:

	March 31, 2020						December 31, 2019
	Houston Electric			CERC			Houston Electric			CERC
	(in millions, except interest rates)
Money pool investments (borrowings) (1)	$	(133	)	$	—		$	481		$	—
Weighted average interest rate	1.98		%	1.98		%	1.98		%	1.98		%

(1)

Included in Accounts and notes receivable (payable)–affiliated companies on Houston Electric’s and CERC’s respective Condensed Consolidated Balance Sheets.

Related Party Transactions Disclosure [Text Block]

Related Party Transactions (Houston Electric and CERC)

Houston Electric and CERC participate in CenterPoint Energy’s money pool through which they can borrow or invest on a short-term basis. Funding needs are aggregated and external borrowing or investing is based on the net cash position. The net funding requirements of the CenterPoint Energy money pool are expected to be met with borrowings under CenterPoint Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper.  

The table below summarizes CenterPoint Energy money pool activity:

	March 31, 2020						December 31, 2019
	Houston Electric			CERC			Houston Electric			CERC
	(in millions, except interest rates)
Money pool investments (borrowings) (1)	$	(133	)	$	—		$	481		$	—
Weighted average interest rate	1.98		%	1.98		%	1.98		%	1.98		%

(1) Included in Accounts and notes receivable (payable)–affiliated companies on Houston Electric’s and CERC’s respective Condensed Consolidated Balance Sheets.

Houston Electric and CERC affiliate related net interest income (expense) were as follows:

	Three Months Ended March 31,
	2020				2019
	Houston Electric		CERC		Houston Electric		CERC
Interest income (expense) (1)	$	1	$	—	$	3	$	1

(1) Interest income is included in Other income (expense), net and interest expense is included in Interest and other finance charges on Houston Electric’s and CERC’s respective Condensed Statements of Consolidated Income.

CenterPoint Energy provides some corporate services to Houston Electric and CERC. The costs of services have been charged directly to Houston Electric and CERC using methods that management believes are reasonable. These methods include negotiated usage rates, dedicated asset assignment and proportionate corporate formulas based on operating expenses, assets, gross margin, employees and a composite of assets, gross margin and employees. Houston Electric provides certain services to CERC. These services are billed at actual cost, either directly or as an allocation and include fleet services, shop services, geographic services, surveying and right-of-way services, radio communications, data circuit management and field operations. Additionally, CERC provides certain services to Houston Electric. These services are billed at actual cost, either directly or as an allocation and include line locating and other miscellaneous services. These charges are not necessarily indicative of what would have been incurred had Houston Electric and CERC not been affiliates.

Amounts charged for these services were as follows and are included primarily in operation and maintenance expenses:

	Three Months Ended March 31,
	2020					2019
	Houston Electric			CERC		Houston Electric			CERC
	(in millions)
Corporate service charges	$	49		$	55	$	52		$	43
Net affiliate service charges (billings)	(6		)	6		(2		)	2

The table below presents transactions among Houston Electric, CERC and their parent, Utility Holding.

	Three Months Ended March 31,
	2020				2019
	Houston Electric		CERC		Houston Electric		CERC
Cash dividends paid to parent	$	385	$	32	$	24	$	20
Cash contribution from parent	—		—		590		—

Schedule of Related Party Transactions [Table Text Block]

Houston Electric and CERC affiliate related net interest income (expense) were as follows:

	Three Months Ended March 31,
	2020				2019
	Houston Electric		CERC		Houston Electric		CERC
Interest income (expense) (1)	$	1	$	—	$	3	$	1

(1) Interest income is included in Other income (expense), net and interest expense is included in Interest and other finance charges on Houston Electric’s and CERC’s respective Condensed Statements of Consolidated Income.

CenterPoint Energy provides some corporate services to Houston Electric and CERC. The costs of services have been charged directly to Houston Electric and CERC using methods that management believes are reasonable. These methods include negotiated usage rates, dedicated asset assignment and proportionate corporate formulas based on operating expenses, assets, gross margin, employees and a composite of assets, gross margin and employees. Houston Electric provides certain services to CERC. These services are billed at actual cost, either directly or as an allocation and include fleet services, shop services, geographic services, surveying and right-of-way services, radio communications, data circuit management and field operations. Additionally, CERC provides certain services to Houston Electric. These services are billed at actual cost, either directly or as an allocation and include line locating and other miscellaneous services. These charges are not necessarily indicative of what would have been incurred had Houston Electric and CERC not been affiliates.

Amounts charged for these services were as follows and are included primarily in operation and maintenance expenses:

	Three Months Ended March 31,
	2020					2019
	Houston Electric			CERC		Houston Electric			CERC
	(in millions)
Corporate service charges	$	49		$	55	$	52		$	43
Net affiliate service charges (billings)	(6		)	6		(2		)	2

The table below presents transactions among Houston Electric, CERC and their parent, Utility Holding.

	Three Months Ended March 31,
	2020				2019
	Houston Electric		CERC		Houston Electric		CERC
Cash dividends paid to parent	$	385	$	32	$	24	$	20
Cash contribution from parent	—		—		590		—