Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Regulatory Assets and Liabilities

The following is a list of regulatory assets and liabilities reflected on the Registrants’ respective Consolidated Balance Sheets as of December 31, 2023 and 2022:


	December 31, 2023
	CenterPoint Energy		Houston Electric		CERC
	(in millions)
Regulatory Assets:
Future amounts recoverable from ratepayers related to:
Benefit obligations (1)	$	379	$	—	$	5
Asset retirement obligations & other	290		75		186
Net deferred income taxes	96		41		42
Total future amounts recoverable from ratepayers	765		116		233
Amounts deferred for future recovery related to:

Cost recovery riders	113		—		73
Hurricane and February 2021 Winter Storm Event restoration costs	149		123		26

Other regulatory assets	147		59		72
Gas recovery costs	27		—		27
Decoupling	17		—		17
COVID-19 incremental costs	12		8		4
TEEEF costs	48		48		—
Unrecognized equity return (2)	(63)		(39)		(16)
Total amounts deferred for future recovery	450		199		203
Amounts currently recovered in customer rates related to:
Authorized trackers and cost deferrals	535		44		375
Securitized regulatory assets	434		74		—
Unamortized loss on reacquired debt and hedging	106		72		11
Gas recovery costs	34		—		34
Extraordinary gas costs	208		—		208
Regulatory assets related to TCJA	47		47		—
Hurricane Harvey restoration costs	17		17		—
Benefit obligations	11		11		—
Emergency Generation Costs	208		208		—
Unrecognized equity return (3)	(141)		(36)		(53)

Total amounts recovered in customer rates (4)	1,459		437		575
Total Regulatory Assets	$	2,674	$	752	$	1,011
Total Current Regulatory Assets (5)	$	161	$	—	$	161
Total Non-Current Regulatory Assets	$	2,513	$	752	$	850

Regulatory Liabilities:
Regulatory liabilities related to TCJA	$	1,377	$	695	$	505
Estimated removal costs	1,322		91		1,150
Other regulatory liabilities	548		245		260
Total Regulatory Liabilities	$	3,247	$	1,031	$	1,915
Total Current Regulatory Liabilities (6)	$	39	$	6	$	33
Total Non-Current Regulatory Liabilities	$	3,208	$	1,025	$	1,882


	December 31, 2022
	CenterPoint Energy		Houston Electric		CERC
	(in millions)
Regulatory Assets:
Future amounts recoverable from ratepayers related to:
Benefit obligations (1)	$	392	$	—	$	5
Asset retirement obligations & other	237		64		155
Net deferred income taxes	83		34		40
Total future amounts recoverable from ratepayers	712		98		200
Amounts deferred for future recovery related to:
Extraordinary gas costs	1,073		—		1,073
Cost recovery riders	133		—		57
Hurricane and February 2021 Winter Storm Event restoration costs	129		113		16

Other regulatory assets	129		46		67
Gas recovery costs	108		—		108
Decoupling	3		—		3
COVID-19 incremental costs	13		8		5
TEEEF costs	182		182		—
Unrecognized equity return	(54)		(27)		(5)
Total amounts deferred for future recovery	1,716		322		1,324
Amounts currently recovered in customer rates related to:
Authorized trackers and cost deferrals	499		25		369
Securitized regulatory assets	229		229		—
Unamortized loss on reacquired debt and hedging	88		64		12
Gas recovery costs	79		—		30
Extraordinary gas costs	294		—		294
Regulatory assets related to TCJA	47		47		—
Hurricane Harvey restoration costs	30		30		—
Benefit obligations	18		18		—
Unrecognized equity return (3)	(134)		(55)		(49)

Total amounts recovered in customer rates	1,150		358		656
Total Regulatory Assets	$	3,578	$	778	$	2,180
Total Current Regulatory Assets (5)	$	1,385	$	—	$	1,336
Total Non-Current Regulatory Assets	$	2,193	$	778	$	844

Regulatory Liabilities:
Regulatory liabilities related to TCJA	$	1,436	$	716	$	536
Estimated removal costs	1,338		158		1,097
Other regulatory liabilities	496		281		193
Total Regulatory Liabilities	$	3,270	$	1,155	$	1,826
Total Current Regulatory Liabilities (6)	$	25	$	—	$	25
Total Non-Current Regulatory Liabilities	$	3,245	$	1,155	$	1,801

(1)Pension and postretirement-related regulatory assets balances are actuarially valued annually.

(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 TEEEF costs and storm restoration costs; and (c) CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacements expenditures in Texas.

(3)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; and (c) CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacements expenditures in Texas.

(4)Of the $1.5 billion, $437 million and $575 million currently being recovered in customer rates related to CenterPoint Energy, Houston Electric and CERC, respectively, $459 million, $365 million and $94 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 $428 million, $72 million and $320 million for CenterPoint Energy, Houston Electric and CERC, respectively, is 12 years, 28 years and 8 years, respectively. Regulatory assets not earning a return with perpetual or undeterminable lives have been excluded from the weighted average recovery period calculation.

(5)Current regulatory assets for both CenterPoint Energy and CERC include extraordinary gas costs of $86 million and $1,175 million as of December 31, 2023 and 2022, respectively.

(6)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,
	2023						2022						2021
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Allowed equity return recognized	$	41	$	38	$	2	$	45	$	42	$	2	$	40	$	37	$	2