Leases (Tables)

6 Months Ended

Jun. 30, 2024

The components of lease cost, included in Operation and maintenance expense on the Registrants’ respective Condensed Statements of Consolidated Income, are as follows:


	Three Months Ended June 30,
	2024						2023
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Operating lease cost	$	1	$	1	$	1	$	1	$	—	$	1
Short-term lease cost	6		5		—		13		14		—

Total lease cost (1)	$	7	$	6	$	1	$	14	$	14	$	1

	Six Months Ended June 30,
	2024						2023
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Operating lease cost	$	2	$	2	$	1	$	3	$	1	$	1
Short-term lease cost	8		7		—		13		13		—

Total lease cost (1)	$	10	$	9	$	1	$	16	$	14	$	1

(1) CenterPoint Energy and Houston Electric defer finance lease costs for TEEEF to Regulatory assets for recovery rather than to Depreciation and Amortization in the Condensed Statements of Consolidated Income.

Schedule of Operating Lease Income

The components of lease income were as follows:


	Three Months Ended June 30,
	2024						2023
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Operating lease income	$	1	$	—	$	1	$	1	$	—	$	1
Variable lease income	1		—		—		—		—		—
Total lease income	$	2	$	—	$	1	$	1	$	—	$	1

	Six Months Ended June 30,
	2024						2023
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Operating lease income	$	3	$	—	$	2	$	3	$	—	$	2
Variable lease income	1		—		—		1		—		—
Total lease income	$	4	$	—	$	2	$	4	$	—	$	2

Schedule of Supplemental Balance Sheet Information Related To Leases

Supplemental balance sheet information related to leases was as follows:


	June 30, 2024									December 31, 2023
	CenterPoint Energy			Houston Electric			CERC			CenterPoint Energy			Houston Electric			CERC
	(in millions, except lease term and discount rate)
Assets:
Operating ROU assets (1)	$	17		$	6		$	4		$	13		$	6		$	4
Finance ROU assets (2)	478			478			—			526			526			—
Total leased assets	$	495		$	484		$	4		$	539		$	532		$	4

Liabilities:
Current operating lease liability (3)	$	3		$	1		$	1		$	3		$	1		$	1
Non-current operating lease liability (4)	14			4			3			10			5			3
Total leased liabilities (5)	$	17		$	5		$	4		$	13		$	6		$	4

Weighted-average remaining lease term (in years) - operating leases	11.6			3.4			3.4			4.7			3.9			3.1
Weighted-average discount rate - operating leases	4.49		%	4.11		%	3.95		%	4.13		%	4.09		%	3.60		%
Weighted-average remaining lease term (in years) - finance leases	5			5			—			5.5			5.5			—
Weighted-average discount rate - finance leases	3.60		%	3.60		%	—			3.60		%	3.60		%	—

(1)Reported within Other assets in the Registrants’ respective Condensed Consolidated Balance Sheets, net of accumulated amortization.

(2)Reported within Property, Plant and Equipment in the Registrants’ respective Condensed Consolidated Balance Sheets, net of accumulated amortization.

(3)Reported within Current other liabilities in the Registrants’ respective Condensed Consolidated Balance Sheets.

(4)Reported within Other liabilities in the Registrants’ respective Condensed Consolidated Balance Sheets.

(5)Finance lease liabilities were not significant as of June 30, 2024 or December 31, 2023 and are reported within Other long-term debt in the Registrants’ respective Condensed Consolidated Balance Sheets when applicable.

Schedule of Operating Lease Liability Maturity

As of June 30, 2024, finance lease liabilities were not significant to the Registrants. As of June 30, 2024, maturities of operating lease liabilities were as follows:


	CenterPoint Energy		Houston Electric		CERC
	(in millions)
Remainder of 2024	$	2	$	1	$	1
2025	4		2		2
2026	4		1		1
2027	2		1		—
2028	1		—		—
2029	10		—		—
2030 and beyond	1		—		—
Total lease payments	24		5		4
Less: Interest	7		—		—
Present value of lease liabilities	$	17	$	5	$	4

Schedule of Operating Lease Payments to be Received

As of June 30, 2024, maturities of undiscounted operating lease payments to be received are as follows:


	CenterPoint Energy		Houston Electric		CERC
	(in millions)
Remainder of 2024	$	3	$	—	$	2
2025	6		1		4
2026	7		—		5
2027	7		—		5
2028	7		—		5
2029	7		—		6
2030 and beyond	158		—		156
Total lease payments to be received	$	195	$	1	$	183

Schedule of Other Information Related To Leases

Other information related to leases is as follows:









	Six Months Ended June 30,
	2024						2023
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Operating cash flows from operating leases included in the measurement of lease liabilities	$	2	$	1	$	1	$	3	$	1	$	1