Reportable Business Segments |
Reportable Business Segments
CenterPoint Energy’s determination of reportable business segments considers the strategic operating units under which CenterPoint Energy manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. CenterPoint Energy uses operating income as the measure of profit or loss for its business segments.
CenterPoint Energy’s reportable business segments include the following: Electric Transmission & Distribution, Natural Gas Distribution, Competitive Natural Gas Sales and Services, Interstate Pipelines, Field Services and Other Operations. The electric transmission and distribution function (CenterPoint Houston) is reported in the Electric Transmission & Distribution business segment. Natural Gas Distribution consists of intrastate natural gas sales to, and natural gas transportation and distribution for, residential, commercial, industrial and institutional customers. Competitive Natural Gas Sales and Services represents CenterPoint Energy’s non-rate regulated gas sales and services operations. The Interstate Pipelines business segment includes the interstate natural gas pipeline operations. The Field Services business segment includes the non-rate regulated natural gas gathering, processing and treating operations. Other Operations consists primarily of other corporate operations which support all of CenterPoint Energy’s business operations.
Financial data for business segments are as follows (in millions):
| | | | | | | | | | | | | | For the Three Months Ended June 30, 2011 | | Revenues from External Customers | | Net Intersegment Revenues | | Operating Income | Electric Transmission & Distribution | $ | 606 |
| (1) | $ | — |
| | $ | 185 |
| Natural Gas Distribution | 448 |
| | 4 |
| | 13 |
| Competitive Natural Gas Sales and Services | 581 |
| | 5 |
| | 3 |
| Interstate Pipelines | 111 |
| | 31 |
| | 60 |
| Field Services | 88 |
| | 10 |
| | 39 |
| Other Operations | 3 |
| | — |
| | 3 |
| Eliminations | — |
| | (50 | ) | | — |
| Consolidated | $ | 1,837 |
| | $ | — |
| | $ | 303 |
| | | | | | | | For the Three Months Ended June 30, 2012 | | Revenues from External Customers | | Net Intersegment Revenues | | Operating Income (Loss) | Electric Transmission & Distribution | $ | 676 |
| (1) | $ | — |
| | $ | 191 |
| Natural Gas Distribution | 360 |
| | 6 |
| | 9 |
| Competitive Natural Gas Sales and Services | 302 |
| | 6 |
| | (4 | ) | Interstate Pipelines | 88 |
| | 37 |
| | 52 |
| Field Services | 96 |
| | 8 |
| | 51 |
| Other Operations | 3 |
| | — |
| | 3 |
| Eliminations | — |
| | (57 | ) | | — |
| Consolidated | $ | 1,525 |
| | $ | — |
| | $ | 302 |
|
| | | | | | | | | | | | | | | | | | | For the Six Months Ended June 30, 2011 | | | | | Revenues from External Customers | | Net Intersegment Revenues | | Operating Income | | Total Assets as of December 31, 2011 | | Electric Transmission & Distribution | $ | 1,095 |
| (1) | $ | — |
| | $ | 286 |
| | $ | 11,221 |
| | Natural Gas Distribution | 1,655 |
| | 9 |
| | 155 |
| | 4,636 |
| | Competitive Natural Gas Sales and Services | 1,278 |
| | 14 |
| | 13 |
| | 1,089 |
| | Interstate Pipelines | 224 |
| | 65 |
| | 136 |
| | 3,867 |
| | Field Services | 166 |
| | 22 |
| | 75 |
| | 1,894 |
| | Other Operations | 6 |
| | — |
| | 2 |
| | 2,318 |
| (2) | Eliminations | — |
| | (110 | ) | | — |
| | (3,322 | ) | | Consolidated | $ | 4,424 |
| | $ | — |
| | $ | 667 |
| | $ | 21,703 |
| | | | | | | | | | | | For the Six Months Ended June 30, 2012 | | | | | Revenues from External Customers | | Net Intersegment Revenues | | Operating Income (Loss) | | Total Assets as of June 30, 2012 | | Electric Transmission & Distribution | $ | 1,207 |
| (1) | $ | — |
| | $ | 298 |
| | $ | 11,128 |
| | Natural Gas Distribution | 1,209 |
| | 11 |
| | 130 |
| | 4,503 |
| | Competitive Natural Gas Sales and Services | 822 |
| | 11 |
| | (3 | ) | | 1,023 |
| | Interstate Pipelines | 170 |
| | 82 |
| | 112 |
| | 3,935 |
| | Field Services | 195 |
| | 14 |
| | 98 |
| | 1,976 |
| | Other Operations | 6 |
| | — |
| | 5 |
| | 2,115 |
| (2) | Eliminations | — |
| | (118 | ) | | — |
| | (2,205 | ) | | Consolidated | $ | 3,609 |
| | $ | — |
| | $ | 640 |
| | $ | 22,475 |
| |
________________ | | (1) | Sales to affiliates of NRG in the three months ended June 30, 2011 and 2012 represented approximately $133 million and $153 million, respectively, of CenterPoint Houston’s transmission and distribution revenues. Sales to affiliates of Energy Future Holdings Corp. in the three months ended June 30, 2011 and 2012 represented approximately $41 million and $38 million, respectively, of CenterPoint Houston’s transmission and distribution revenues. Sales to affiliates of NRG in the six months ended June 30, 2011 and 2012 represented approximately $259 million and $293 million, respectively, of CenterPoint Houston’s transmission and distribution revenues. Sales to affiliates of Energy Future Holdings Corp. in the six months ended June 30, 2011 and 2012 represented approximately $82 million and $74 million, respectively, of CenterPoint Houston’s transmission and distribution revenues. |
| | (2) | Included in total assets of Other Operations as of December 31, 2011 and June 30, 2012 are pension and other postemployment related regulatory assets of $796 million and $769 million, respectively. |
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