Schedule of Regulatory Assets and Liabilities |
The following is a list of regulatory assets and liabilities, excluding amounts related to the Arkansas and Oklahoma Natural Gas businesses classified as held for sale, reflected on the Registrants’ respective Consolidated Balance Sheets as of December 31, 2021 and 2020. For information about regulatory assets and liabilities in held for sale, see Note 4.
| | | | | | | | | | | | | | | | | | | December 31, 2021 | | CenterPoint Energy | | Houston Electric | | CERC | | (in millions) | Regulatory Assets: | | | | | | Future amounts recoverable from ratepayers related to: | | | | | | Benefit obligations (1) | $ | 412 | | | $ | — | | | $ | 5 | | Asset retirement obligations & other | 240 | | | 45 | | | 192 | | Net deferred income taxes | 41 | | | 29 | | | 2 | | Total future amounts recoverable from ratepayers | 693 | | | 74 | | | 199 | | Amounts deferred for future recovery related to: | | | | | | Extraordinary gas costs | 1,528 | | | — | | | 1,454 | | Cost recovery riders | 124 | | | — | | | — | | Hurricane and February 2021 Winter Storm Event restoration costs | 105 | | | 105 | | | — | | | | | | | | Other regulatory assets | 94 | | | 57 | | | 37 | | Gas recovery costs | 29 | | | — | | | 29 | | Decoupling | 25 | | | — | | | 25 | | COVID-19 incremental costs | 23 | | | 8 | | | 15 | | Emergency generation costs | 21 | | | 21 | | | — | | Unrecognized equity return | (28) | | | (3) | | | (4) | | Total amounts deferred for future recovery | 1,921 | | | 188 | | | 1,556 | | Amounts currently recovered in customer rates related to: | | | | | | Authorized trackers and cost deferrals | 504 | | | 24 | | | 11 | | Securitized regulatory assets | 420 | | | 420 | | | — | | Unamortized loss on reacquired debt and hedging | 92 | | | 67 | | | — | | Gas recovery costs | 72 | | | — | | | 40 | | Extraordinary gas costs | 66 | | | — | | | 66 | | Regulatory assets related to TCJA | 48 | | | 46 | | | 2 | | Hurricane Harvey restoration costs | 43 | | | 43 | | | — | | Benefit obligations | 28 | | | 24 | | | 4 | | Unrecognized equity return (2) | (171) | | | (97) | | | (12) | | | | | | | | Total amounts recovered in customer rates (3) | 1,102 | | | 527 | | | 111 | | Total Regulatory Assets | $ | 3,716 | | | $ | 789 | | | $ | 1,866 | | Total Current Regulatory Assets (4) | $ | 1,395 | | | $ | — | | | $ | 1,289 | | Total Non-Current Regulatory Assets | $ | 2,321 | | | $ | 789 | | | $ | 577 | | | | | | | | Regulatory Liabilities: | | | | | | Regulatory liabilities related to TCJA | $ | 1,389 | | | $ | 738 | | | $ | 400 | | Estimated removal costs | 1,304 | | | 229 | | | 452 | | Other regulatory liabilities | 481 | | | 205 | | | 128 | | Total Regulatory Liabilities | $ | 3,174 | | | $ | 1,172 | | | $ | 980 | | Total Current Regulatory Liabilities (5) | $ | 21 | | | $ | 20 | | | $ | 1 | | Total Non-Current Regulatory Liabilities | $ | 3,153 | | | $ | 1,152 | | | $ | 979 | |
| | | | | | | | | | | | | | | | | | | December 31, 2020 | | CenterPoint Energy | | Houston Electric | | CERC | | (in millions) | Regulatory Assets: | | | | | | Future amounts recoverable from ratepayers related to: | | | | | | Benefit obligations (1) | $ | 550 | | | $ | — | | | $ | 4 | | Asset retirement obligations & other | 173 | | | 39 | | | 125 | | Net deferred income taxes | 37 | | | 25 | | | 3 | | Total future amounts recoverable from ratepayers | 760 | | | 64 | | | 132 | | Amounts deferred for future recovery related to: | | | | | | | | | | | | Cost recovery riders | 221 | | | — | | | — | | Other regulatory assets | 90 | | | 38 | | | 52 | | Hurricane restoration costs | 36 | | | 36 | | | — | | COVID-19 incremental costs | 23 | | | 5 | | | 18 | | Gas recovery costs | 9 | | | — | | | 9 | | Decoupling | 2 | | | — | | | 2 | | | | | | | | | | | | | | | | | | | | Unrecognized equity return | (42) | | | — | | | (5) | | Total amounts deferred for future recovery | 339 | | | 79 | | | 76 | | Amounts currently recovered in customer rates related to: | | | | | | Securitized regulatory assets | 633 | | | 633 | | | — | | Authorized trackers and cost deferrals | 332 | | | 30 | | | 20 | | Unamortized loss on reacquired debt and hedging | 111 | | | 73 | | | — | | Hurricane Harvey restoration costs | 55 | | | 55 | | | — | | Benefit obligations | 37 | | | 31 | | | 6 | | Regulatory assets related to TCJA | 25 | | | 20 | | | 5 | | Gas recovery costs | 7 | | | — | | | 7 | | Unrecognized equity return (2) | (187) | | | (137) | | | (8) | | | | | | | | | | | | | | Total amounts recovered in customer rates | 1,013 | | | 705 | | | 30 | | Total Regulatory Assets | $ | 2,112 | | | $ | 848 | | | $ | 238 | | Total Current Regulatory Assets | $ | 18 | | | $ | — | | | $ | 18 | | Total Non-Current Regulatory Assets | $ | 2,094 | | | $ | 848 | | | $ | 220 | | Regulatory Liabilities: | | | | | | Regulatory liabilities related to TCJA | $ | 1,484 | | | $ | 764 | | | $ | 421 | | Estimated removal costs | 1,470 | | | 231 | | | 656 | | Other regulatory liabilities | 566 | | | 300 | | | 178 | | Total Regulatory Liabilities | $ | 3,520 | | | $ | 1,295 | | | $ | 1,255 | | Total Current Regulatory Liabilities (5) | $ | 72 | | | $ | 43 | | | $ | 29 | | Total Non-Current Regulatory Liabilities | $ | 3,448 | | | $ | 1,252 | | | $ | 1,226 | |
(1)Pension and postretirement-related regulatory assets balances are measured annually, and the ending amortization period may change based on the actuarial valuation. (2)Represents the following: (a) CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments in Indiana; (b) Houston Electric’s allowed equity return on its true-up balance of stranded costs, other changes and related interest resulting from the formerly integrated electric utilities prior to Texas deregulation to be recovered in rates through 2024 and certain storm restoration balances pending recovery in the next rate proceeding; and (c) CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacements expenditures in Texas. (3)Of the $1.1 billion, $527 million and $111 million currently being recovered in customer rates related to CenterPoint Energy, Houston Electric and CERC, respectively, $558 million, $459 million and $7 million is earning a return, respectively. The weighted average recovery period of regulatory assets currently being recovered in base rates, not earning a return, which totals $175 million, $67 million and $69 million for CenterPoint Energy, Houston Electric and CERC, respectively, is 11 years, 23 years and 2 years, respectively. Regulatory assets not earning a return with perpetual or undeterminable lives have been excluded from the weighted average recovery period calculation. (4)Current regulatory assets for CenterPoint Energy and CERC include extraordinary gas costs of $1,256 million and $1,182 million, respectively. (5)Current regulatory liabilities are included in Other current liabilities in each of the Registrants’ respective Consolidated Balance Sheets. The table below reflects the amount of allowed equity return recognized by each Registrant in its Statements of Consolidated Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2021 | | 2020 | | 2019 | | CenterPoint Energy | | Houston Electric | | CERC | | CenterPoint Energy | | Houston Electric | | CERC | | CenterPoint Energy | | Houston Electric | | CERC | | (in millions) | Allowed equity return recognized | $ | 40 | | | $ | 37 | | | $ | 1 | | | $ | 31 | | | $ | 31 | | | $ | — | | | $ | 45 | | | $ | 45 | | | $ | — | |
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