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Related Party Transactions (Houston Electric and CERC)
 9 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
Related Party Transactions (Houston Electric and CERC) Related Party Transactions (Houston Electric and CERC)
Houston Electric and CERC participate in CenterPoint Energy’s money pool through which they can borrow or invest on a short-term basis. Funding needs are aggregated and external borrowing or investing is based on the net cash position. The net funding requirements of the CenterPoint Energy money pool are expected to be met with borrowings under CenterPoint Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper.  

The table below summarizes CenterPoint Energy money pool activity:
September 30, 2023December 31, 2022
Houston ElectricCERCHouston ElectricCERC
 (in millions, except interest rates)
Money pool investments (borrowings) (1)
$400 $86 $(642)$— 
Weighted average interest rate
5.56 %5.56 %4.75 %4.75 %
(1)Included in Accounts and notes receivable (payable)–affiliated companies on Houston Electric’s and CERC’s respective Condensed Consolidated Balance Sheets.

CenterPoint Energy provides some corporate services to Houston Electric and CERC. The costs of services have been charged directly to Houston Electric and CERC using methods that management believes are reasonable. These methods include usage rates, dedicated asset assignment and proportionate corporate formulas based on operating expenses, assets, gross margin, employees and a composite of assets, gross margin and employees. Houston Electric provides certain services to CERC. These services are billed at actual cost, either directly or as an allocation and include fleet services, shop services, geographic services, surveying and right-of-way services, radio communications, data circuit management and field operations. Additionally, CERC provides certain services to Houston Electric. These services are billed at actual cost, either directly or as an allocation and include line locating and other miscellaneous services. These charges are not necessarily indicative of what would have been incurred had Houston Electric and CERC not been affiliates.

Amounts charged for these services were as follows and are included primarily in operation and maintenance expenses:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Houston ElectricCERCHouston ElectricCERCHouston ElectricCERCHouston ElectricCERC
(in millions)
Corporate service charges$40 $56 $38 $54 $115 $162 $114 $163 
Net affiliate service charges (billings)(1)1 3 (3)(7)7 (12)12 

The table below presents transactions among Houston Electric, CERC and their parent, CenterPoint Energy.
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Houston ElectricCERCHouston ElectricCERCHouston ElectricCERCHouston ElectricCERC
(in millions)
Cash dividends paid to parent$79 $36 $74 $13 $239 $347 $141 $124 
Cash dividend paid to parent related to the sale of the Arkansas and Oklahoma Natural Gas businesses— — — — — — — 720 
Cash contribution from parent 235 — — — 885 500 1,143 125 
Net assets acquired in the Restructuring— — — — — — — 2,345 
Non-cash capital contribution from parent in payment for property, plant and equipment below— — — — — — 38 54 
Cash paid to parent for property, plant and equipment below— — — — — — 65 61 
Property, plant and equipment from parent (1)
— — — — — — 103 115 

(1) Property, plant and equipment purchased from CenterPoint Energy at its net carrying value on the date of purchase.