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Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The table below summarizes CenterPoint Energy’s and Houston Electric’s outstanding interest rate hedging activity:
March 31, 2024December 31, 2023
Hedging ClassificationNotional Principal
(in millions)
CenterPoint Energy:
Cash flow hedge (1) (2)
150 200 
Houston Electric:
Cash flow hedge (2)
— 100 
(1)Relates to interest rate derivative instruments at CenterPoint Energy with a termination date of December 31, 2029. The interest rate swap agreements were designated as cash flow hedges of forecasted transactions. CenterPoint Energy records all changes in the fair value of cash flow hedges in accumulated other comprehensive income (loss) until the underlying hedged transaction occurs, when it reclassifies that amount into earnings.
(2)Relates to interest rate derivative instruments at Houston Electric with a termination date of June 28, 2024. The interest rate treasury lock agreements were designated as cash flow hedges of forecasted transactions. Houston Electric records all changes in the fair value of cash flow hedges to a regulatory asset or liability, which is amortized over the life of the associated debt being hedged.
Schedule of Fair Value of Derivative Instruments
The following tables provide a balance sheet overview of CenterPoint Energy’s and CERC’s derivative assets and liabilities, while the last table provides a breakdown of the related income statement impacts.

March 31, 2024December 31, 2023
Balance Sheet LocationDerivative
Assets
Fair Value 		Derivative Liabilities
Fair Value		Derivative
Assets
Fair Value		Derivative Liabilities
Fair Value
CenterPoint Energy:
(in millions)
Derivatives designated as cash flow hedges:
Interest rate derivativesCurrent Assets: Non-trading derivative assets$3 $— $— $— 
Derivatives not designated as hedging instruments:
Natural gas derivatives (1)Current Liabilities: Non-trading derivative liabilities$— $9 $— $9 
Natural gas derivatives (1)
Other Liabilities: Non-trading derivative liabilities
— 3 — 3 
Indexed debt securities derivative (2)Current Liabilities— 520 — 605 
Total$3 $532 $— $617 
(1)Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract is in a liability position with no offsetting amounts as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, the notional volume of natural gas derivatives were 20,712 MMBtu per day and 27,421 MMBtu per day, respectively.
(2)Derivative component of the ZENS obligation that represents the ZENS holder’s option to receive the appreciated value of the reference shares at maturity and other payments to which they may be entitled. See Note 10 for further information.
March 31, 2024December 31, 2023
Balance Sheet LocationDerivative
Assets
Fair Value 		Derivative Liabilities
Fair Value		Derivative
Assets
Fair Value		Derivative Liabilities
Fair Value
CERC:
(in millions)
Derivatives not designated as hedging instruments:
Natural gas derivatives (1)
Current Liabilities: Non-trading derivative liabilities$— $8 $— $8 
Natural gas derivatives (1)
Other Liabilities: Non-trading derivative liabilities
— 2 — 3 
Total$— $10 $— $11 
(1)Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract is in a liability position with no offsetting amounts as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, the notional volume of natural gas derivatives were 17,753 MMBtu per day and 23,504 MMBtu per day, respectively.
Schedule of Income Statement Impact of Derivative Activity
The table below provides the related income statement impacts of derivative activity for the periods presented:

Three Months Ended March 31,
Income Statement Location20242023
CenterPoint Energy:
(in millions)
Derivatives not designated as hedging instruments:
Indexed debt securities derivative (1)
Gain (loss) on indexed debt securities$85 $(39)
(1)The indexed debt securities derivative is recorded at fair value and changes in the fair value are recorded in CenterPoint Energy’s Condensed Statements of Consolidated Income.

Cash inflows and outflows associated with derivatives are included in operating activities on the statement of cash flows.

(c) Credit Risk Contingent Features (CenterPoint Energy and CERC)

Certain of CenterPoint Energy’s and CERC’s derivative instruments contain provisions that require CenterPoint Energy and CERC to maintain an investment grade credit rating on their respective long-term unsecured unsubordinated debt from S&P and Moody’s. If CenterPoint Energy’s or CERC’s debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or additional collateral. The table below sets forth additional detail for the periods presented:
March 31, 2024December 31, 2023
CenterPoint EnergyCERCCenterPoint EnergyCERC
(in millions)
Aggregate fair value of derivatives containing material adverse change provisions in a net liability position$9 $8 $9 $8 
Fair value of collateral already posted— — — — 
Additional collateral required to be posted if credit risk contingent features triggered9 8 9 8