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Unconsolidated Affiliate (CenterPoint Energy and CERC) (Tables)
 9 Months Ended
Sep. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments [Table Text Block]
CenterPoint Energy has the ability to significantly influence the operating and financial policies of Enable, a publicly traded MLP, and, accordingly, accounts for its investment in Enable’s common units using the equity method of accounting. Enable is considered to be a VIE because the power to direct the activities that most significantly impact Enable’s economic performance does not reside with the holders of equity investment at risk. However, CenterPoint Energy is not considered the primary beneficiary of Enable since it does not have the power to direct the activities of Enable that are considered most significant to the economic performance of Enable. As of September 30, 2020, CenterPoint Energy’s maximum exposure to loss related to Enable is limited to its investment in unconsolidated affiliate, its investment in Enable Series A Preferred Units, which are accounted for as securities without a readily determinable fair value, and outstanding current accounts receivable from Enable.

Investment in Unconsolidated Affiliates (CenterPoint Energy):
September 30, 2020December 31, 2019
(in millions)
Enable$748 $2,406 
Other1 2 
  Total$749 $2,408 

CenterPoint Energy evaluates its equity method investments for impairment when factors indicate that a decrease in the value of its investment has occurred and the carrying amount of its investment may not be recoverable. An impairment loss, based on the excess of the carrying value over the estimated fair value of the investment, is recognized in earnings when an impairment is deemed to be other than temporary. Considerable judgment is used in determining if an impairment loss is other than temporary and the amount of any impairment. Based on the severity of the decline in Enable’s common unit price during the three months ended March 31, 2020 due to the macroeconomic conditions related in part to the COVID-19 pandemic, combined with Enable’s announcement on April 1, 2020 to reduce its quarterly distributions per common unit by 50%, and the market outlook indicating excess supply of crude oil and natural gas and continued depressed crude oil and natural gas prices impacting the midstream oil and gas industry, CenterPoint Energy determined, in connection with its preparation of the financial statements, that an other than temporary decrease in the value of its investment in Enable had occurred. CenterPoint Energy reduced the carrying value of its investment in Enable to its estimated fair value of $848 million as of March 31, 2020 and recognized an impairment charge of $1,541 million during the nine months ended September 30, 2020. Both the income approach and market approach were utilized to estimate the fair value of CenterPoint Energy’s equity investment in Enable, which includes common units, general partner interest and incentive distribution rights held by CenterPoint Energy through CNP Midstream. The determination of fair value considered a number of relevant factors including Enable’s common unit price and forecasted distributions, recent comparable transactions and the limited float of Enable’s publicly traded common units. See Note 8 for further discussion of the determination of fair value of CenterPoint Energy’s investment in Enable as of March 31, 2020. CenterPoint Energy did not identify a further decrease in value as of September 30, 2020, and no impairment in its investment in Enable was recorded during the three months ended September 30, 2020.

Equity in Earnings (Losses) of Unconsolidated Affiliates, net (CenterPoint Energy):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(in millions)
Enable$(67)$77 $(1,499)$213 
Other — — — — 
        Total$(67)$77 $(1,499)$213 

CenterPoint Energy recognized a loss of $1,499 million from its investment in Enable for the nine months ended September 30, 2020. This loss included an impairment charge on CenterPoint Energy’s investment in Enable of $1,541 million discussed above, and CenterPoint Energy’s interest in Enable’s $225 million impairment on an equity method investment.
Limited Partner Interest and Units Held in Enable (CenterPoint Energy):
September 30, 2020
Limited Partner Interest (1)
Common Units (2)
Enable Series A Preferred Units (3)
CenterPoint Energy 53.7 %233,856,623 14,520,000 
OGE25.5 %110,982,805 — 
Public unitholders20.8 %90,629,240 — 
        Total units outstanding100.0 %435,468,668 14,520,000 

(1)Excludes the Enable Series A Preferred Units owned by CenterPoint Energy.

(2)Held indirectly through CNP Midstream by CenterPoint Energy.

(3)The carrying amount of the Enable Series A Preferred Units, reflected as Preferred units - unconsolidated affiliate on CenterPoint Energy’s Condensed Consolidated Balance Sheets, was $363 million as of both September 30, 2020 and December 31, 2019. No impairment charges or adjustment due to observable price changes were required or recorded during the current or prior reporting periods.

Generally, sales to any person or entity (including a series of sales to the same person or entity) of more than 5% of the aggregate of the common units CenterPoint Energy owns in Enable or sales to any person or entity (including a series of sales to the same person or entity) by OGE of more than 5% of the aggregate of the common units it owns in Enable are subject to mutual rights of first offer and first refusal set forth in Enable’s Agreement of Limited Partnership.

Interests Held in Enable GP (CenterPoint Energy):
September 30, 2020
Management
Rights (1)
Incentive Distribution Rights (2)
CenterPoint Energy (3)
50 %40 %
OGE50 %60 %

(1)Enable is controlled jointly by CenterPoint Energy and OGE. Sale of CenterPoint Energy’s or OGE’s ownership interests in Enable GP to a third party is subject to mutual rights of first offer and first refusal, and CenterPoint Energy is not permitted to dispose of less than all of its interest in Enable GP.

(2)If cash distributions to Enable’s unitholders exceed $0.330625 per common unit in any quarter, Enable GP will receive increasing percentages or incentive distributions rights, up to 50%, of the cash Enable distributes in excess of that amount. In certain circumstances Enable GP will have the right to reset the minimum quarterly distribution and the target distribution levels at which the incentive distributions receive increasing percentages to higher levels based on Enable’s cash distributions at the time of the exercise of this reset election. To date, no incentive distributions have been made.

(3)Held indirectly through CNP Midstream.

Distributions Received from Enable (CenterPoint Energy):

CenterPoint Energy
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Per UnitCash DistributionPer UnitCash DistributionPer UnitCash DistributionPer UnitCash Distribution
(in millions, except per unit amounts)
Enable common units (1)$0.16525 $39 $0.3305 $77 $0.6610 $155 $0.9665 $226 
Enable Series A Preferred Units0.62500 9 0.6250 9 1.8750 27 1.8750 27 
  Total CenterPoint Energy$48 $86 $182 $253 
(1)On April 1, 2020, Enable announced a 50% reduction in its quarterly distribution per common unit from $0.3305 to $0.16525.

Transactions with Enable (CenterPoint Energy and CERC):
The transactions with Enable in the following tables exclude transactions with the Energy Services Disposal Group. See Note 3 for further information.
CenterPoint Energy and CERC
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(in millions)
Natural gas expenses, includes transportation and storage costs
$17 $17 $61 $62 
CenterPoint Energy and CERC
September 30, 2020December 31, 2019
(in millions)
Accounts payable for natural gas purchases from Enable$6 $9 
Accounts receivable for amounts billed for services provided to Enable1 2 

Summarized unaudited consolidated income information for Enable is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(in millions)
Operating revenues$596 $699 $1,759 $2,229 
Cost of sales, excluding depreciation and amortization
250 263 653 958 
Depreciation and amortization105 108 314 323 
Goodwill and long-lived assets impairments— — 28 — 
Operating income100 175 326 507 
Net income (loss) attributable to Enable common units(173)123 (35)351 
Reconciliation of Equity in Earnings (Losses), net:
CenterPoint Energy’s interest$(93)$66 $(19)$189 
Basis difference amortization (1)26 11 62 35 
Loss on dilution, net of proportional basis difference recognition
— — (1)(11)
Impairment of CenterPoint Energy’s equity method investment in Enable
— — (1,541)— 
CenterPoint Energy’s equity in earnings (losses), net
$(67)$77 $(1,499)$213 
(1)Equity in earnings of unconsolidated affiliate includes CenterPoint Energy’s share of Enable earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference is being amortized through the year 2048.
Summarized unaudited consolidated balance sheet information for Enable is as follows:
September 30, 2020December 31, 2019
(in millions)
Current assets$373 $389 
Non-current assets11,402 11,877 
Current liabilities644 780 
Non-current liabilities4,055 4,077 
Non-controlling interest26 37 
Preferred equity362 362 
Accumulated other comprehensive loss(7)(3)
Enable partners’ equity6,695 7,013 
Reconciliation of Investment in Enable:
CenterPoint Energy’s ownership interest in Enable partners’ equity$3,592 $3,767 
CenterPoint Energy’s basis difference (1)
(2,844)(1,361)
CenterPoint Energy’s equity method investment in Enable$748 $2,406 

(1)Includes the impairment of CenterPoint Energy’s equity method investment in Enable of $1,541 million recorded during the nine months ended September 30, 2020. The basis difference is being amortized through the year 2048.