Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2021

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	$	—