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Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2019
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment [Text Block] Property, Plant and Equipment

(a) Property, Plant and Equipment

On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group. The transaction closed on April 9, 2020. For further information, see Note 4.

On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group. The transaction is expected to close in the second quarter of 2020. For further information, see Note 4.

The following table has been recast to exclude the Infrastructure Services and Energy Services Disposal Groups. Property, plant and equipment includes the following:
 
 
 
December 31, 2019
 
December 31, 2018
 
Weighted Average Useful Lives
 
Property, Plant and Equipment, Gross
 
Accumulated Depreciation & Amortization
 
Property, Plant and Equipment, Net
 
Property, Plant and Equipment, Gross
 
Accumulated Depreciation & Amortization
 
Property, Plant and Equipment, Net
 
(in years)
 
(in millions)
CenterPoint Energy
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric Transmission & Distribution
37
 
$
14,360

 
$
4,634

 
$
9,726

 
$
12,148

 
$
3,746

 
$
8,402

Electric Generation (1)
27
 
1,780

 
698

 
1,082

 
—

 
—

 
—

Natural Gas Distribution
29
 
12,787

 
3,766

 
9,021

 
7,345

 
2,159

 
5,186

Other property
19
 
1,397

 
602

 
795

 
741

 
306

 
435

Total
 
 
$
30,324

 
$
9,700

 
$
20,624

 
$
20,234

 
$
6,211

 
$
14,023

Houston Electric
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric Transmission
46
 
$
3,358

 
$
674

 
$
2,684

 
$
3,077

 
$
650

 
$
2,427

Electric Distribution
35
 
7,876

 
2,586

 
5,290

 
7,524

 
2,553

 
4,971

Other transmission & distribution property
19
 
1,595

 
537

 
1,058

 
1,547

 
543

 
1,004

Total
 
 
$
12,829

 
$
3,797

 
$
9,032

 
$
12,148

 
$
3,746

 
$
8,402

CERC
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Distribution
29
 
$
8,024

 
$
2,243

 
$
5,781

 
$
7,345

 
$
2,159

 
$
5,186

Other property
16
 
55

 
27

 
28

 
53

 
34

 
19

Total
 
 
$
8,079

 
$
2,270

 
$
5,809

 
$
7,398

 
$
2,193

 
$
5,205


(1)
SIGECO and AGC own a 300 MW unit at the Warrick Power Plant (Warrick Unit 4) as tenants in common. SIGECO’s share of the cost of this unit as of December 31, 2019, is $194 million with accumulated depreciation totaling $137 million. AGC and SIGECO share equally in the cost of operation and output of the unit. SIGECO’s share of operating costs is included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income.

(b) Depreciation and Amortization

The following table has been recast to exclude the Infrastructure Services and Energy Services Disposal Groups and presents depreciation and amortization expense for continuing operations for 2019, 2018 and 2017:
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
CenterPoint Energy
 
Houston Electric
 
CERC
 
CenterPoint Energy
 
Houston Electric
 
CERC
 
CenterPoint Energy
 
Houston Electric
 
CERC
 
(in millions)
Depreciation
$
879

 
$
339

 
$
277

 
$
623

 
$
342

 
$
261

 
$
618

 
$
354

 
$
242

Amortization of securitized regulatory assets
271

 
271

 
—

 
531

 
531

 
—

 
329

 
329

 
—

Other amortization
75

 
38

 
16

 
76

 
44

 
19

 
73

 
41

 
21

Total
$
1,225

 
$
648

 
$
293

 
$
1,230

 
$
917

 
$
280

 
$
1,020

 
$
724

 
$
263



(c) AROs

The Registrants recorded AROs associated with the removal of asbestos and asbestos-containing material in its buildings, including substation building structures. CenterPoint Energy recorded AROs relating to the closure of the ash ponds at A.B. Brown and F.B. Culley. CenterPoint Energy and Houston Electric also recorded AROs relating to treated wood poles for electric distribution, distribution transformers containing PCB (also known as Polychlorinated Biphenyl), and underground fuel storage tanks. CenterPoint Energy and CERC also recorded AROs relating to gas pipelines abandoned in place. The estimates of future liabilities were developed using historical information, and where available, quoted prices from outside contractors.

A reconciliation of the changes in the ARO liability recorded in Other non-current liabilities on each of the Registrants’ respective Consolidated Balance Sheets is as follows:
 
December 31, 2019
 
December 31, 2018
 
CenterPoint Energy
 
Houston Electric
 
CERC
 
CenterPoint Energy
 
Houston Electric
 
CERC
 
(in millions)
Beginning balance
$
258

 
$
34

 
$
221

 
$
281

 
$
35

 
$
243

Addition from Merger with Vectren
116

 
—

 
—

 
—

 
—

 
—

Accretion expense (1)
16

 
1

 
10

 
10

 
1

 
9

Revisions in estimates (2)
149

 
7

 
94

 
(33
)
 
(2
)
 
(31
)
Ending balance
$
539

 
$
42

 
$
325

 
$
258

 
$
34

 
$
221


(1)
Reflected in Regulatory assets on each of the Registrants’ respective Consolidated Balance Sheets.

(2)
In 2019, the Registrants reflected an increase in their respective ARO liability, which is primarily attributable to decreases in the long-term interest rates used for discounting in the ARO calculation and increased estimated closure costs for CenterPoint Energy’s electric generation. In 2018, CenterPoint Energy and CERC reflected a decrease in their respective ARO liability, which is primarily attributable to increases in the long-term interest rates used for discounting in the ARO calculation.