Short-term Borrowings and Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Schedule of Debt

Short-term Borrowings and Long-term Debt: As of December 31, 2023 and 2022, the Registrants had the following short-term borrowings and long-term debt outstanding:

	December 31, 2023				December 31, 2022
	Long-Term		Current (1)		Long-Term		Current (1)
	(in millions)
CenterPoint Energy:
ZENS due 2029 (2)	$	—	$	5	$	—	$	7
CenterPoint Energy senior notes 1.45% to 5.989% due 2024 to 2049	3,250		850		3,050		—
CenterPoint Energy pollution control bonds 5.125% due 2028 (3)	68		—		68		—
CenterPoint Energy commercial paper (4)	1,036		—		1,770		—
SIGECO first mortgage bonds 3.450% to 6.00% due 2024 to 2055 (5)	825		22		277		11
SIGECO securitization bonds 5.026% to 5.172% due 2036 to 2041 (6)	324		17		—		—
Other debt	—		—		—		4
Unamortized debt issuance costs	(35)		—		(15)		—
Unamortized discount and premium, net	(5)		—		(6)		—
Houston Electric debt (see details below)	7,426		161		6,197		156
CERC debt (see details below)	4,670		4		3,495		1,842
Total CenterPoint Energy debt	$	17,559	$	1,059	$	14,836	$	2,020

Houston Electric:
General mortgage bonds 2.35% to 6.95% due 2026 to 2053 (7)	$	7,512	$	—	$	6,112	$	—
Other	1		—		1		—
Bond Company IV:
Transition bonds 3.028% due 2024	—		161		161		156
Unamortized debt issuance costs	(59)		—		(50)		—
Unamortized discount and premium, net	(28)		—		(27)		—
Total Houston Electric debt	$	7,426	$	161	$	6,197	$	156

CERC (8):
Short-term borrowings:
Inventory financing (9)	$	—	$	4	$	—	$	11
Term loan	—		—		—		500
Total CERC short-term borrowings	—		4		—		511
Long-term debt:
Senior notes 1.75% to 6.625% due 2026 to 2047	$	4,120	$	—	$	2,620	$	1,331
Indiana Gas senior notes 6.34% to 7.08% due 2025 to 2029	96		—		96		—
Commercial paper (4)	484		—		805		—
Unamortized debt issuance costs	(31)		—		(22)		—
Unamortized discount and premium, net	1		—		(4)		—
Total CERC debt	$	4,670	$	4	$	3,495	$	1,842

(1)Includes amounts due or exchangeable within one year of the date noted.

(2)CenterPoint Energy’s ZENS obligation is bifurcated into a debt component and an embedded derivative component. For additional information regarding ZENS, see Note 11(b). As ZENS are exchangeable for cash at any time at the option of the holders, these notes are classified as a current portion of long-term debt.

(3)These pollution control bonds were secured by general mortgage bonds of Houston Electric as of December 31, 2023 and 2022 and are not reflected in Houston Electric’s consolidated financial statements because of the contingent nature of the obligations.

(4)Commercial paper issued by CenterPoint Energy and CERC Corp. has maturities up to 60 days and 30 days, respectively, and are backstopped by the respective issuer’s long-term revolving credit facility. Commercial paper is classified as long-term because the termination date of the facility that backstops the commercial paper is more than one year from the balance sheet date.

(5)The first mortgage bonds issued by SIGECO subject SIGECO’s properties to a lien under the related mortgage indenture as further discussed below.

(6)Scheduled final payment dates are November 15, 2036 and May 15, 2041. The SIGECO Securitization Bonds will be repaid over time through a securitization charge imposed on retail electric customers in SIGECO’s service territory.

(7)The general mortgage bonds issued by Houston Electric subject Houston Electric’s properties to a lien under the General Mortgage as further discussed below.

(8)Issued by CERC Corp.

(9)Represents AMA transactions accounted for as an inventory financing.

Schedule of Revolving Credit Facilities and Utilization of Such Facilities

During 2023, the following debt instruments were issued or incurred:

Registrant	Issuance Date	Debt Instrument	Aggregate Principal Amount		Interest Rate	Maturity Date
		(in millions, except for interest rates)
Houston Electric (1)	March 2023	General Mortgage Bonds	$	600	4.95%	2033
Houston Electric (1)	March 2023	General Mortgage Bonds	300		5.30%	2053
Houston Electric (2)	September 2023	General Mortgage Bonds	500		5.20%	2028
		Total Houston Electric	1,400
CERC (3)	February 2023	Term Loan	500		SOFR (4) + 0.85%	2024
CERC (5)	February 2023	Senior Notes	600		5.25%	2028
CERC (5)	February 2023	Senior Notes	600		5.40%	2033
CERC (6)	May 2023	Senior Notes	300		5.25%	2028
		Total CERC	2,000
CenterPoint Energy (7)	March 2023	First Mortgage Bonds	100		4.98%	2028
CenterPoint Energy (7)	March 2023	First Mortgage Bonds	80		5.04%	2033
CenterPoint Energy (8)	March 2023	Term Loan	250		SOFR (4) + 1.50%	2023
CenterPoint Energy (9)	June 2023	Securitization Bonds	341		5.026% - 5.172%	2038-2043
CenterPoint Energy (10)	August 2023	Convertible Notes	1,000		4.25%	2026
CenterPoint Energy (11)	August 2023	Senior Notes	400		5.25%	2026
CenterPoint Energy (12)	October 2023	First Mortgage Bonds	470		5.75% - 6.00%	2029-2034
		Total CenterPoint Energy	$	6,041

(1)Total proceeds from Houston Electric’s March 2023 issuances of general mortgage bonds, net of transaction expenses and fees, were approximately $890 million. Approximately $593 million of such proceeds were used for general limited liability company purposes, including capital expenditures, working capital and the repayment of all or a portion of Houston Electric’s borrowings under the CenterPoint Energy money pool, and approximately $296 million of such proceeds will be disbursed or allocated to finance or refinance, in part or in full, new or existing projects that meet stated criteria.

(2)Total proceeds from Houston Electric’s September 2023 issuances of general mortgage bonds, net of transaction expenses and fees, of approximately $496 million were used for general limited liability company purposes, including capital expenditures, working capital and the repayment of all of Houston Electric’s borrowings under the CenterPoint Energy money pool.

(3)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.

(4)As defined in the term loan agreement, which includes an adjustment of 0.10% per annum.

(5)Total proceeds from CERC’s February 2023 issuances of senior notes, net of transaction expenses and fees, of approximately $1.2 billion were used for general corporate purposes, including the repayment of (i) all or a portion of CERC’s outstanding 0.700% senior notes due 2023, (ii) all or a portion of CERC’s outstanding floating rate senior notes due 2023 and (iii) a portion of CERC’s outstanding commercial paper balances.

(6)Total proceeds, including issuance premiums and approximately $3 million of accrued interest, and net of transaction expenses and fees, of approximately $308 million were used for general corporate purposes, including repayment of a portion of CERC’s outstanding $500 million term loan due February 2024.

(7)Issued by SIGECO. Total proceeds from SIGECO’s March 2023 issuances of first mortgage bonds, net of transaction expenses and fees, of approximately $179 million were used for general corporate purposes, including repaying short-term debt.

(8)Total proceeds, net of transaction expenses and fees, of approximately $250 million were used for general corporate purposes, including the repayment of CenterPoint Energy’s outstanding commercial paper balances. The full outstanding amount of the term loan, including accrued and unpaid interest, was repaid in March 2023 and, following the repayment, the term loan agreement was terminated.

(9)Issued by SIGECO Securitization Subsidiary. Total proceeds from SIGECO Securitization Subsidiary’s June 2023 issuance of SIGECO Securitization Bonds, net of transaction expenses and fees, of approximately $337 million were used to pay SIGECO the purchase price of the securitization property. SIGECO used the net proceeds from the sale of the securitization property (after payment of upfront financing costs) to reimburse or pay for qualified costs approved by the IURC related to the completed retirement of its A.B. Brown 1 and 2 coal-powered generation units. See Notes 2 and 7 for further details.

(10)Total proceeds, net of discounts, transaction fees and expenses, of $985 million were used for general corporate purposes, including the redemption of CenterPoint Energy’s Series A Preferred Stock after its September 1, 2023 redemption date, and the repayment of a portion of CenterPoint Energy’s outstanding commercial paper. See additional information below.

(11)Total proceeds, net of discounts, transaction fees and expenses, of $397 million were used for general corporate purposes and the repayment of a portion of CenterPoint Energy’s outstanding commercial paper.

(12)SIGECO issued in three tranches: (i) $180 million first mortgage bonds bearing interest at 5.75% due 2029; (ii) $105 million first mortgage bonds bearing interest at 5.91% due 2030; and (iii) $185 million first mortgage bonds bearing interest at 6.00% due 2034. The net proceeds of $467 million were used for general corporate purposes.

The Registrants had the following revolving credit facilities as of December 31, 2023:

Execution  Date	Registrant	Size of Facility		Draw Rate of SOFR plus (1)	Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio		Debt for Borrowed Money to Capital Ratio as of December 31, 2023 (2)	Termination  Date
		(in millions)
December 6, 2022	CenterPoint Energy	$	2,400	1.500%	65%	(3)	59.6%	December 6, 2027
December 6, 2022	CenterPoint Energy (4)	250		1.125%	65%		46.5%	December 6, 2027
December 6, 2022	Houston Electric	300		1.250%	67.5%	(3)	52.6%	December 6, 2027
December 6, 2022	CERC	1,050		1.125%	65%		40.2%	December 6, 2027
	Total	$	4,000

(1)Based on credit ratings as of December 31, 2023.

(2)As defined in the revolving credit facility agreement, 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.

(4)This credit facility was issued by SIGECO.

The Registrants, as well as the subsidiaries of CenterPoint Energy discussed above, were in compliance with all financial debt covenants as of December 31, 2023.

As of December 31, 2023 and 2022, the Registrants had the following revolving credit facilities and utilization of such facilities:

	December 31, 2023										December 31, 2022
Registrant	Size of Facility		Loans		Letters of Credit		Commercial Paper		Weighted Average Interest Rate		Size of Facility		Loans		Letters of Credit		Commercial Paper		Weighted Average Interest Rate
	(in millions, except weighted average interest rate)
CenterPoint Energy (1)	$	2,400	$	—	$	—	$	1,036	5.54	%	$	2,400	$	—	$	11	$	1,770	4.71	%
CenterPoint Energy (2)	250		—		—		—		—	%	250		—		—		—		—	%
Houston Electric	300		—		—		—		—	%	300		—		—		—		—	%
CERC	1,050		—		1		484		5.53	%	1,050		—		—		805		4.67	%
Total	$	4,000	$	—	$	1	$	1,520			$	4,000	$	—	$	11	$	2,575

(1)CenterPoint Energy’s and CERC’s outstanding commercial paper generally have maturities up to 60 days and 30 days, respectively, and are backstopped by the respective issuer’s long-term revolving credit facility.

(2)This credit facility was issued by SIGECO.

Schedule of Extinguishment of Debt

The Registrants recorded the following losses on early extinguishment of debt, including make-whole premiums and recognition of deferred debt related costs, in Interest expense and other finance charges on their respective Statements of Consolidated Income unless specified otherwise:

	Year Ended December 31,
	2023		2022		2021
	(in millions)
CenterPoint Energy (1)	$	11	$	47	$	53
CERC	—		—		11
Houston Electric (2)	—		2		—

(1) The loss on early extinguishment of debt at CenterPoint Energy during 2023 was recorded as a regulatory asset.

(2) The loss on early extinguishment of debt at Houston Electric during 2022 was recorded as a regulatory asset.

Schedule of Maturities of Long-term Debt

Maturities. As of December 31, 2023, maturities of long-term debt through 2028, excluding the ZENS obligation and unamortized discounts, premiums and issuance costs, were as follows:

	CenterPoint Energy (1)		Houston  Electric (1)		CERC		Securitization Bonds
	(in millions)
2024	$	1,050	$	161	$	—	$	178
2025	64		—		10		13
2026	2,274		300		60		14
2027	1,860		300		510		14
2028	2,063		500		1,230		15

(1)These maturities include Securitization Bonds principal repayments on scheduled payment dates.

Schedule of Debt Repayments and Redemptions

During 2023, the following debt instruments were repaid at maturity or redeemed prior to maturity:

Registrant	Repayment/Redemption Date	Debt Instrument	Aggregate Principal		Interest Rate	Maturity Date
			(in millions)
CERC	March 2023	Term Loan (1)	$	500	SOFR (2) + 0.70%	2023
CERC	March 2023	Senior Notes	700		0.70%	2023
CERC	March 2023	Floating Rate Senior Notes	575		Three-month LIBOR plus 0.5%	2023
CERC	May 2023	Term Loan (3)	500		SOFR (2) + 0.85%	2024
CERC	December 2023	Senior Notes	57		3.72%	2023
		Total CERC	2,332
CenterPoint Energy (4)	January 2023	First Mortgage Bonds	11		4.00%	2044
CenterPoint Energy	March 2023	Term Loan (1)	250		SOFR (2) + 1.50%	2023
CenterPoint Energy (5)	December 2023	Floating Rate Senior Notes	350		SOFR plus 0.65%	2024
CenterPoint Energy (6)	December 2023	First Mortgage Bonds	80		6.72%	2029
		Total CenterPoint Energy	$	3,023

(1) The full outstanding amount of the term loan, including accrued and unpaid interest, was repaid in March 2023 and, following the repayment, the term loan agreement was terminated.

(2)    As defined in the term loan agreement, which includes an adjustment of 0.10% per annum.

(3) The full outstanding amount of the term loan, including accrued and unpaid interest, was repaid in May 2023 and, following the repayment, the term loan agreement was terminated.

(4)    On December 16, 2022, SIGECO provided notice of redemption and on January 17, 2023, SIGECO redeemed $11 million aggregate principal amount of SIGECO’s outstanding first mortgage bonds due 2044 at a redemption price equal to 100% of the principal amount of the first mortgage bonds to be redeemed plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

(5) On November 30, 2023, CenterPoint Energy provided notice of redemption and on December 15, 2023, CenterPoint Energy redeemed $350 million aggregate principal amount of outstanding floating rate senior notes due 2024 at a redemption price equal to 100% of the principal amount of the floating rate senior notes to be redeemed plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

(6) On November 17, 2023, SIGECO provided notice of redemption and on December 19, 2023, SIGECO redeemed $80 million aggregate principal amount of outstanding first mortgage bonds due 2029 at a redemption price equal to the sum of remaining principal and interest payments discounted at the treasury yield plus 10 basis points, plus interest accrued to the redemption date and an applicable make-whole premium.