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Short-term Borrowings and Long-term Debt (Tables)
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Line of Credit Facilities
Debt Transactions. During the nine months ended September 30, 2022, in addition to CERC’s debt exchange discussed further below, the following debt instruments were issued or incurred:

RegistrantIssuance DateDebt InstrumentAggregate Principal AmountInterest Rate Maturity Date
(in millions)
Houston ElectricFebruary 2022
General Mortgage Bonds (1)
$300 3.00%2032
Houston ElectricFebruary 2022
General Mortgage Bonds (1)
500 3.60%2052
Houston ElectricSeptember 2022
General Mortgage Bonds (2)
500 4.45%2032
Houston ElectricSeptember 2022
General Mortgage Bonds (2)
300 4.85%2052
Total Houston Electric 1,600 
CERCJune 2022
Senior Notes (3)
500 4.40%2032
CERCAugust 2022
Term Loan (4)
500 
SOFR (5) + 0.70%
2023
Total CERC1,000 
Total CenterPoint Energy $2,600 

(1)Total proceeds, net of discounts and issuance expenses and fees, of approximately $784 million were used for general limited liability company purposes, including capital expenditures and the repayment of all or a portion of Houston Electric’s borrowings under the CenterPoint Energy money pool.
(2)Total proceeds, net of discounts and issuance expenses and fees, of approximately $789 million were used for general limited liability company purposes, including capital expenditures, the repayment of all or a portion of Houston Electric’s borrowings under the CenterPoint Energy money pool and the redemption of outstanding general mortgage bonds discussed below.
(3)Total proceeds, net of discounts and issuance expenses and fees, of approximately $495 million were used for general corporate purposes, including the issuance by CERC Corp.’s current subsidiaries, Indiana Gas and VEDO, of intercompany notes to CERC Corp. in June 2022; these subsidiaries used the funds to repay intercompany debt owed to VUH in connection with the Restructuring in June 2022.
(4)Total proceeds, net of transaction expenses and fees, of approximately $500 million were used for general corporate purposes, including the repayment of CERC’s outstanding commercial paper balances.
(5)As defined in the term loan agreement, which includes an adjustment of 0.10% per annum.
During the nine months ended September 30, 2022, the following debt instruments were repaid at maturity or redeemed prior to maturity with proceeds received from the sale of Energy Transfer units discussed further in Note 10:
RegistrantRepayment/Redemption DateDebt InstrumentAggregate Principal AmountInterest RateMaturity Date
(in millions)
CERC (1)
January 2022Floating Rate Senior Notes$425 
Three-month LIBOR plus 0.5%
2023
Total CERC425 
Houston ElectricAugust 2022General Mortgage Bonds300 2.25%2022
Total Houston Electric300 
CenterPoint Energy (2)
January 2022First Mortgage Bonds5 0.82%2022
CenterPoint Energy (3)
March 2022Senior Notes250 3.85%2024
CenterPoint Energy (4)
March 2022Senior Notes350 4.25%2028
Total CenterPoint Energy$1,330 

(1)In January 2022, CERC provided notice of partial redemption, and on January 31, 2022, CERC redeemed a portion ($425 million) of the outstanding $1 billion aggregate principal amount of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest on the principal amount being redeemed.
(2)First Mortgage Bonds issued by SIGECO.
(3)In March 2022, CenterPoint Energy provided notice of redemption, and on March 31, 2022, CenterPoint Energy redeemed all of the remaining outstanding senior notes of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest of approximately $2 million, the write off of issuance costs of $1 million and an applicable make-whole premium of approximately $7 million, for a total redemption price of $260 million.
(4)In March 2022, CenterPoint Energy provided notice of partial redemption, and on March 31, 2022, CenterPoint Energy redeemed a portion ($350 million) of the outstanding $500 million aggregate principal amount of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest of approximately $6 million, the write off of issuance costs of $3 million and an applicable make-whole premium of approximately $34 million, for a total redemption price of $393 million.
The Registrants had the following revolving credit facilities as of September 30, 2022:
Execution
 Date 		RegistrantSize of
Facility
Draw Rate of LIBOR plus (1)
Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio 
Debt for Borrowed Money to Capital
Ratio as of
September 30, 2022 (2)
Termination Date
(in millions)
February 4, 2021CenterPoint Energy $2,400 1.625%65.0%(3)59.9%February 4, 2024
February 4, 2021Houston Electric300 1.375%67.5%(3)52.3%February 4, 2024
February 4, 2021CERC 900 1.250%65.0%49.8%February 4, 2024
Total$3,600 

(1)Based on current credit ratings.
(2)As defined in the revolving credit facility agreements, excluding Securitization Bonds.
(3)For CenterPoint Energy and Houston Electric, the financial covenant limit will temporarily increase to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive 12-month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification.
The table below reflects the utilization of the Registrants’ respective revolving credit facilities:
September 30, 2022December 31, 2021
RegistrantLoansLetters
of Credit
Commercial
Paper (1)
Weighted Average Interest RateLoansLetters
of Credit
Commercial
Paper (1)
Weighted Average Interest Rate
(in millions, except weighted average interest rate)
CenterPoint Energy $— $11 $454 3.22 %$— $11 $1,400 0.34 %
CenterPoint Energy (2)
— — — — %— — 350 0.21 %
Houston Electric— — — — %— — — — %
CERC — — 575 3.38 %— — 899 0.26 %
Total$— $11 $1,029 $— $11 $2,649 

(1)Outstanding commercial paper generally has maturities of 60 days or less and each Registrants’ commercial paper program is backstopped by such Registrants’ long-term credit facilities. Houston Electric does not have a commercial paper program.
(2)This credit facility was entered into by VUH and was guaranteed by SIGECO, Indiana Gas and VEDO. This credit facility was terminated in connection with the Restructuring, as discussed above.