(Mark One) | |
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2016 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE TRANSITION PERIOD FROM __________________ TO __________________ |
Texas | 74-0694415 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1111 Louisiana | |
Houston, Texas 77002 | (713) 207-1111 |
(Address and zip code of principal executive offices) | (Registrant’s telephone number, including area code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) |
PART I. | FINANCIAL INFORMATION | ||
Item 1. | |||
Three and Nine Months Ended September 30, 2016 and 2015 (unaudited) | |||
Three and Nine Months Ended September 30, 2016 and 2015 (unaudited) | |||
September 30, 2016 and December 31, 2015 (unaudited) | |||
Nine Months Ended September 30, 2016 and 2015 (unaudited) | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II. | OTHER INFORMATION | ||
Item 1. | |||
Item 1A. | |||
Item 5. | |||
Item 6. |
GLOSSARY | ||
AOL | AOL Inc. | |
APSC | Arkansas Public Service Commission | |
ArcLight | ArcLight Capital Partners, LLC | |
ASU | Accounting Standards Update | |
Atmos Energy Marketing | Atmos Energy Marketing, LLC, a wholly-owned subsidiary of Atmos Energy Holdings, Inc., a wholly-owned subsidiary of Atmos Energy Corporation | |
AT&T | AT&T Inc. | |
AT&T Common | AT&T common stock | |
Bcf | Billion cubic feet | |
BDA | Billing Determinant Adjustment | |
Bond Companies | Transition and system restoration bond companies | |
Brazos Valley Connection | A portion of the Houston region transmission project between Houston Electric’s Zenith substation and the Gibbons Creek substation owned by the Texas Municipal Power Agency | |
CECL | Current expected credit losses | |
CenterPoint Energy | CenterPoint Energy, Inc., and its subsidiaries | |
CERC Corp. | CenterPoint Energy Resources Corp. | |
CERC | CERC Corp., together with its subsidiaries | |
CES | CenterPoint Energy Services, Inc. | |
Charter | Charter Communications, Inc. | |
Charter Common | Charter common stock | |
CIP | Conservation Improvement Program | |
Continuum | The retail energy services business of Continuum Retail Energy Services, LLC, including its wholly-owned subsidiary Lakeshore Energy Services, LLC and the natural gas wholesale assets of Continuum Energy Services, LLC | |
DCRF | Distribution Cost Recovery Factor | |
Dodd-Frank | Dodd-Frank Wall Street Reform and Consumer Protection Act | |
EECR | Energy Efficiency Cost Recovery | |
EECRF | Energy Efficiency Cost Recovery Factor | |
Enable | Enable Midstream Partners, LP | |
FASB | Financial Accounting Standards Board | |
Fitch | Fitch, Inc. | |
Form 10-Q | Quarterly Report on Form 10-Q | |
GenOn | GenOn Energy, Inc. | |
GRIP | Gas Reliability Infrastructure Program | |
GWh | Gigawatt-hours | |
Houston Electric | CenterPoint Energy Houston Electric, LLC and its subsidiaries | |
IBEW | International Brotherhood of Electrical Workers | |
Interim Condensed Financial Statements | Condensed consolidated interim financial statements and notes | |
IRS | Internal Revenue Service | |
LIBOR | London Interbank Offered Rate | |
LPSC | Louisiana Public Service Commission | |
MGPs | Manufactured gas plants | |
Moody’s | Moody’s Investors Service, Inc. | |
MPSC | Mississippi Public Service Commission | |
MPUC | Minnesota Public Utilities Commission | |
NAV | Net asset value |
GLOSSARY (cont.) | ||
NECA | National Electrical Contractors Association | |
NGD | Natural gas distribution business | |
NGLs | Natural gas liquids | |
NRG | NRG Energy, Inc. | |
OCC | Oklahoma Corporation Commission | |
OGE | OGE Energy Corp. | |
PBRC | Performance Based Rate Change | |
PHMSA | Pipeline and Hazardous Materials Safety Administration | |
Private Placement | An agreement with Enable to purchase an aggregate of 14,520,000 Series A Preferred Units | |
PRPs | Potentially responsible parties | |
REIT | Real Estate Investment Trust | |
Reliant Energy | Reliant Energy, Incorporated | |
REP | Retail electric provider | |
ROE | Return on equity | |
RRA | Rate Regulation Adjustment | |
RRI | Reliant Resources, Inc. | |
RSP | Rate Stabilization Plan | |
SEC | Securities and Exchange Commission | |
Securitization Bonds | Transition and system restoration bonds | |
Series A Preferred Units | Enable’s 10% Series A Fixed-to-Floating Non-Cumulative Redeemable Perpetual Preferred Units | |
S&P | Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies | |
TCOS | Transmission Cost of Service | |
TDU | Transmission and distribution utility | |
Texas Utility Commission | Public Utility Commission of Texas | |
Time Common | Time Inc. common stock | |
Transition Agreements | Services Agreement, Employee Transition Agreement, Transitional Seconding Agreement and other agreements entered into in connection with the formation of Enable | |
TW | Time Warner Inc. | |
TW Common | TW common stock | |
TWC | Time Warner Cable Inc. | |
TWC Common | TWC common stock | |
TW Securities | Charter Common, Time Common and TW Common | |
Verizon | Verizon Communications, Inc. | |
VIE | Variable interest entity | |
ZENS | 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 | |
2015 Form 10-K | Annual Report on Form 10-K for the year ended December 31, 2015 |
• | the performance of Enable, the amount of cash distributions we receive from Enable, Enable’s ability to redeem the Series A Preferred Units in certain circumstances and the value of our interest in Enable, and factors that may have a material impact on such performance, cash distributions and value, including factors such as: |
◦ | competitive conditions in the midstream industry, and actions taken by Enable’s customers and competitors, including the extent and timing of the entry of additional competition in the markets served by Enable; |
◦ | the timing and extent of changes in the supply of natural gas and associated commodity prices, particularly prices of natural gas and NGLs, the competitive effects of the available pipeline capacity in the regions served by Enable, and the effects of geographic and seasonal commodity price differentials, including the effects of these circumstances on re-contracting available capacity on Enable’s interstate pipelines; |
◦ | the demand for crude oil, natural gas, NGLs and transportation and storage services; |
◦ | environmental and other governmental regulations, including the availability of drilling permits and the regulation of hydraulic fracturing; |
◦ | recording of non-cash goodwill, long-lived asset or other than temporary impairment charges by or related to Enable; |
◦ | changes in tax status; |
◦ | access to debt and equity capital; and |
◦ | the availability and prices of raw materials and services for current and future construction projects; |
• | state and federal legislative and regulatory actions or developments affecting various aspects of our businesses (including the businesses of Enable), including, among others, energy deregulation or re-regulation, pipeline integrity and safety, health care reform, financial reform, tax legislation and actions regarding the rates charged by our regulated businesses; |
• | timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment; |
• | industrial, commercial and residential growth in our service territories and changes in market demand, including the effects of energy efficiency measures and demographic patterns; |
• | future economic conditions in regional and national markets and their effect on sales, prices and costs; |
• | weather variations and other natural phenomena, including the impact of severe weather events on operations and capital; |
• | our ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; |
• | the timing and extent of changes in commodity prices, particularly natural gas, and the effects of geographic and seasonal commodity price differentials; |
• | problems with regulatory approval, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or in cost overruns that cannot be recouped in rates; |
• | local, state and federal legislative and regulatory actions or developments relating to the environment, including those related to global climate change; |
• | the impact of unplanned facility outages; |
• | any direct or indirect effects on our facilities, operations and financial condition resulting from terrorism, cyber-attacks, data security breaches or other attempts to disrupt our businesses or the businesses of third parties, or other catastrophic events such as fires, earthquakes, explosions, leaks, floods, droughts, hurricanes, pandemic health events or other occurrences; |
• | our ability to invest planned capital and the timely recovery of our investment in capital; |
• | our ability to control operation and maintenance costs; |
• | actions by credit rating agencies; |
• | the sufficiency of our insurance coverage, including availability, cost, coverage and terms; |
• | the investment performance of our pension and postretirement benefit plans; |
• | commercial bank and financial market conditions, our access to capital, the cost of such capital, and the results of our financing and refinancing efforts, including availability of funds in the debt capital markets; |
• | changes in interest rates or rates of inflation; |
• | inability of various counterparties to meet their obligations to us; |
• | non-payment for our services due to financial distress of our customers; |
• | effectiveness of our risk management activities; |
• | timely and appropriate regulatory actions allowing securitization or other recovery of costs associated with any future hurricanes or natural disasters; |
• | our potential business strategies and strategic initiatives, including restructurings, joint ventures and acquisitions or dispositions of assets or businesses, which we cannot assure you will be completed or will have the anticipated benefits to us; |
• | acquisition and merger activities involving us or our competitors; |
• | our or Enable’s ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; |
• | the ability of GenOn (formerly known as RRI Energy, Inc., Reliant Energy and RRI), a wholly-owned subsidiary of NRG, and its subsidiaries to satisfy their obligations to us, including indemnity obligations, or obligations in connection with the contractual arrangements pursuant to which we are their guarantor; |
• | the outcome of litigation; |
• | the ability of REPs, including REP affiliates of NRG and Energy Future Holdings Corp., to satisfy their obligations to us and our subsidiaries; |
• | changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; |
• | the timing and outcome of any audits, disputes and other proceedings related to taxes; |
• | the effective tax rates; |
• | the effect of changes in and application of accounting standards and pronouncements; and |
• | other factors we discuss in “Risk Factors” in Item 1A of Part I of our 2015 Form 10-K, which is incorporated herein by reference, and other reports we file from time to time with the SEC. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | $ | 1,889 | $ | 1,630 | $ | 5,447 | $ | 5,595 | |||||||
Expenses: | |||||||||||||||
Natural gas | 683 | 527 | 2,031 | 2,410 | |||||||||||
Operation and maintenance | 505 | 479 | 1,539 | 1,465 | |||||||||||
Depreciation and amortization | 324 | 268 | 873 | 724 | |||||||||||
Taxes other than income taxes | 93 | 91 | 288 | 289 | |||||||||||
Total | 1,605 | 1,365 | 4,731 | 4,888 | |||||||||||
Operating Income | 284 | 265 | 716 | 707 | |||||||||||
Other Income (Expense): | |||||||||||||||
Gain (loss) on marketable securities | 77 | (134 | ) | 187 | (72 | ) | |||||||||
Gain (loss) on indexed debt securities | (72 | ) | 129 | (258 | ) | 62 | |||||||||
Interest and other finance charges | (83 | ) | (88 | ) | (256 | ) | (266 | ) | |||||||
Interest on securitization bonds | (23 | ) | (25 | ) | (70 | ) | (80 | ) | |||||||
Equity in earnings (losses) of unconsolidated affiliate, net | 73 | (794 | ) | 164 | (699 | ) | |||||||||
Other, net | 20 | 12 | 41 | 36 | |||||||||||
Total | (8 | ) | (900 | ) | (192 | ) | (1,019 | ) | |||||||
Income (Loss) Before Income Taxes | 276 | (635 | ) | 524 | (312 | ) | |||||||||
Income tax expense (benefit) | 97 | (244 | ) | 193 | (129 | ) | |||||||||
Net Income (Loss) | $ | 179 | $ | (391 | ) | $ | 331 | $ | (183 | ) | |||||
Basic Earnings (Loss) Per Share | $ | 0.42 | $ | (0.91 | ) | $ | 0.77 | $ | (0.43 | ) | |||||
Diluted Earnings (Loss) Per Share | $ | 0.41 | $ | (0.91 | ) | $ | 0.76 | $ | (0.43 | ) | |||||
Dividends Declared Per Share | $ | 0.2575 | $ | 0.2475 | $ | 0.7725 | $ | 0.7425 | |||||||
Weighted Average Shares Outstanding, Basic | 431 | 430 | 431 | 430 | |||||||||||
Weighted Average Shares Outstanding, Diluted | 433 | 430 | 433 | 430 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income (loss) | $ | 179 | $ | (391 | ) | $ | 331 | $ | (183 | ) | |||||
Other comprehensive income: | |||||||||||||||
Adjustment related to pension and other postretirement plans (net of tax of $2, $1, $1 and $3) | 1 | 1 | 1 | 5 | |||||||||||
Net deferred gain from cash flow hedges (net of tax of $1, $-0-, $-0-, $-0-) | 2 | — | 1 | — | |||||||||||
Total | 3 | 1 | 2 | 5 | |||||||||||
Comprehensive income (loss) | $ | 182 | $ | (390 | ) | $ | 333 | $ | (178 | ) |
September 30, 2016 | December 31, 2015 | ||||||
Current Assets: | |||||||
Cash and cash equivalents ($269 and $264 related to VIEs, respectively) | $ | 270 | $ | 264 | |||
Investment in marketable securities | 814 | 805 | |||||
Accounts receivable ($97 and $64 related to VIEs, respectively), less bad debt reserve of $18 and $20, respectively | 682 | 593 | |||||
Accrued unbilled revenues | 186 | 279 | |||||
Natural gas inventory | 160 | 168 | |||||
Materials and supplies | 191 | 179 | |||||
Non-trading derivative assets | 49 | 89 | |||||
Taxes receivable | 23 | 172 | |||||
Prepaid expenses and other current assets ($38 and $35 related to VIEs, respectively) | 154 | 140 | |||||
Total current assets | 2,529 | 2,689 | |||||
Property, Plant and Equipment: | |||||||
Property, plant and equipment | 17,500 | 16,650 | |||||
Less: accumulated depreciation and amortization | 5,417 | 5,113 | |||||
Property, plant and equipment, net | 12,083 | 11,537 | |||||
Other Assets: | |||||||
Goodwill | 862 | 840 | |||||
Regulatory assets ($1,999 and $2,373 related to VIEs, respectively) | 2,756 | 3,129 | |||||
Notes receivable – unconsolidated affiliate | — | 363 | |||||
Non-trading derivative assets | 24 | 36 | |||||
Investment in unconsolidated affiliate | 2,535 | 2,594 | |||||
Preferred units – unconsolidated affiliate | 363 | — | |||||
Other | 134 | 102 | |||||
Total other assets | 6,674 | 7,064 | |||||
Total Assets | $ | 21,286 | $ | 21,290 |
September 30, 2016 | December 31, 2015 | ||||||
Current Liabilities: | |||||||
Short-term borrowings | $ | 43 | $ | 40 | |||
Current portion of VIE securitization bonds long-term debt | 410 | 391 | |||||
Indexed debt | 112 | 145 | |||||
Current portion of other long-term debt | 250 | 328 | |||||
Indexed debt securities derivative | 562 | 442 | |||||
Accounts payable | 422 | 483 | |||||
Taxes accrued | 134 | 158 | |||||
Interest accrued | 93 | 117 | |||||
Non-trading derivative liabilities | 19 | 11 | |||||
Other | 353 | 343 | |||||
Total current liabilities | 2,398 | 2,458 | |||||
Other Liabilities: | |||||||
Deferred income taxes, net | 5,206 | 5,047 | |||||
Non-trading derivative liabilities | 4 | 5 | |||||
Benefit obligations | 909 | 904 | |||||
Regulatory liabilities | 1,279 | 1,276 | |||||
Other | 282 | 273 | |||||
Total other liabilities | 7,680 | 7,505 | |||||
Long-term Debt: | |||||||
VIE securitization bonds | 1,931 | 2,276 | |||||
Other long-term debt | 5,805 | 5,590 | |||||
Total long-term debt | 7,736 | 7,866 | |||||
Commitments and Contingencies (Note 14) | |||||||
Shareholders’ Equity: | |||||||
Common stock (430,681,855 shares and 430,262,703 shares outstanding, respectively) | 4 | 4 | |||||
Additional paid-in capital | 4,190 | 4,180 | |||||
Accumulated deficit | (658 | ) | (657 | ) | |||
Accumulated other comprehensive loss | (64 | ) | (66 | ) | |||
Total shareholders’ equity | 3,472 | 3,461 | |||||
Total Liabilities and Shareholders’ Equity | $ | 21,286 | $ | 21,290 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income (loss) | $ | 331 | $ | (183 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 873 | 724 | |||||
Amortization of deferred financing costs | 19 | 21 | |||||
Deferred income taxes | 150 | (264 | ) | ||||
Unrealized loss (gain) on marketable securities | (187 | ) | 72 | ||||
Loss (gain) on indexed debt securities | 258 | (62 | ) | ||||
Write-down of natural gas inventory | 1 | 4 | |||||
Equity in (earnings) losses of unconsolidated affiliate, net of distributions | (164 | ) | 843 | ||||
Pension contributions | (7 | ) | (63 | ) | |||
Changes in other assets and liabilities, excluding acquisitions: | |||||||
Accounts receivable and unbilled revenues, net | 86 | 450 | |||||
Inventory | (5 | ) | 33 | ||||
Taxes receivable | 149 | 122 | |||||
Accounts payable | (90 | ) | (332 | ) | |||
Fuel cost recovery | (43 | ) | 71 | ||||
Non-trading derivatives, net | 23 | (7 | ) | ||||
Margin deposits, net | 65 | 20 | |||||
Interest and taxes accrued | (48 | ) | (39 | ) | |||
Net regulatory assets and liabilities | (26 | ) | 92 | ||||
Other current assets | (9 | ) | 22 | ||||
Other current liabilities | 31 | (36 | ) | ||||
Other assets | — | 6 | |||||
Other liabilities | 29 | 9 | |||||
Other, net | 16 | 15 | |||||
Net cash provided by operating activities | 1,452 | 1,518 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (1,047 | ) | (1,131 | ) | |||
Acquisitions, net of cash acquired | (102 | ) | — | ||||
Decrease in notes receivable – unconsolidated affiliate | 363 | — | |||||
Investment in preferred units – unconsolidated affiliate | (363 | ) | — | ||||
Distributions from unconsolidated affiliate in excess of cumulative earnings | 223 | 74 | |||||
Decrease (increase) in restricted cash of Bond Companies | (2 | ) | 9 | ||||
Proceeds from sale of marketable securities | 178 | 32 | |||||
Other, net | 11 | (8 | ) | ||||
Net cash used in investing activities | (739 | ) | (1,024 | ) | |||
Cash Flows from Financing Activities: | |||||||
Increase (decrease) in short-term borrowings, net | 3 | (4 | ) | ||||
Proceeds of commercial paper, net | 63 | 302 | |||||
Proceeds from long-term debt | 600 | — | |||||
Payments of long-term debt | (855 | ) | (513 | ) | |||
Debt issuance costs | (9 | ) | — | ||||
Payment of dividends on common stock | (332 | ) | (319 | ) | |||
Distribution to ZENS note holders | (178 | ) | (32 | ) | |||
Other, net | 1 | 1 | |||||
Net cash used in financing activities | (707 | ) | (565 | ) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | 6 | (71 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 264 | 298 | |||||
Cash and Cash Equivalents at End of Period | $ | 270 | $ | 227 | |||
Supplemental Disclosure of Cash Flow Information: | |||||||
Cash Payments: | |||||||
Interest, net of capitalized interest | $ | 324 | $ | 323 | |||
Income tax (refunds), net | (105 | ) | 12 | ||||
Non-cash transactions: | |||||||
Accounts payable related to capital expenditures | 75 | 87 |
• | Houston Electric, which engages in the electric transmission and distribution business in the Texas Gulf Coast area that includes the city of Houston; and |
• | CERC Corp. (together with its subsidiaries), which owns and operates natural gas distribution systems. A wholly-owned subsidiary of CERC Corp. offers variable and fixed-price physical natural gas supplies primarily to commercial and industrial customers and electric and natural gas utilities. As of September 30, 2016, CERC Corp. also owned approximately 55.4% of the limited partner interests in Enable, which owns, operates and develops natural gas and crude oil infrastructure assets. |
(in millions) | ||||
Total purchase price consideration | $ | 102 | ||
Receivables | $ | 76 | ||
Derivative assets | 38 | |||
Property and equipment | 1 | |||
Identifiable intangibles | 38 | |||
Total assets acquired | 153 | |||
Accounts payable | 49 | |||
Derivative liabilities | 24 | |||
Total liabilities assumed | 73 | |||
Identifiable net assets acquired | 80 | |||
Goodwill | 22 | |||
Net assets acquired | $ | 102 |
Estimate Fair Value | Estimate Useful Life | |||||
(in millions) | (in years) | |||||
Customer relationships | $ | 34 | 15 | |||
Covenants not to compete | 4 | 4 | ||||
Total identifiable intangibles | $ | 38 |
Three Months Ended September 30, | |||||||||||||||
2016 | 2015 | ||||||||||||||
Pension Benefits (1) | Postretirement Benefits (1) | Pension Benefits (1) | Postretirement Benefits (1) | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 10 | $ | 1 | $ | 10 | $ | 1 | |||||||
Interest cost | 23 | 4 | 24 | 5 | |||||||||||
Expected return on plan assets | (26 | ) | (2 | ) | (30 | ) | (2 | ) | |||||||
Amortization of prior service cost (credit) | 3 | (1 | ) | 2 | — | ||||||||||
Amortization of net loss | 15 | — | 14 | 1 | |||||||||||
Settlement cost (2) | — | — | 1 | — | |||||||||||
Net periodic cost | $ | 25 | $ | 2 | $ | 21 | $ | 5 | |||||||
Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | ||||||||||||||
Pension Benefits (1) | Postretirement Benefits (1) | Pension Benefits (1) | Postretirement Benefits (1) | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 28 | $ | 2 | $ | 30 | $ | 2 | |||||||
Interest cost | 70 | 13 | 70 | 15 | |||||||||||
Expected return on plan assets | (76 | ) | (5 | ) | (90 | ) | (5 | ) | |||||||
Amortization of prior service cost (credit) | 7 | (2 | ) | 7 | (1 | ) | |||||||||
Amortization of net loss | 47 | — | 43 | 3 | |||||||||||
Settlement cost (2) | — | — | 10 | — | |||||||||||
Curtailment gain (3) | — | (3 | ) | — | — | ||||||||||
Net periodic cost | $ | 76 | $ | 5 | $ | 70 | $ | 14 |
(1) | Net periodic cost in these tables is before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes. |
(2) | A one-time, non-cash settlement charge is required when lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of net periodic cost for that year. Due to the amount of lump sum payment distributions from the non-qualified pension plan during the three and nine months |
(3) | A curtailment gain or loss is required when the expected future services of a significant number of current employees are reduced or eliminated for the accrual of benefits. In May 2016, Houston Electric entered into a renegotiated collective bargaining agreement with the IBEW Local Union 66 that provides that for Houston Electric union employees covered under the agreement who retire on or after January 1, 2017, retiree medical and prescription drug coverage will be provided exclusively through the NECA/IBEW Family Medical Care Plan in exchange for the payment of monthly premiums as determined under the agreement. As a result, the accrued postretirement benefits related to such future Houston Electric union retirees were eliminated. Houston Electric recognized a curtailment gain of $3 million as an accelerated recognition of the prior service credit that would otherwise be recognized in future periods. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Pension and Postretirement Plans | Pension and Postretirement Plans | ||||||||||||||
(in millions) | |||||||||||||||
Beginning Balance | $ | (65 | ) | $ | (81 | ) | $ | (65 | ) | $ | (85 | ) | |||
Other comprehensive income (loss) before reclassifications (1) | — | — | (4 | ) | — | ||||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||
Prior service cost (2) | 1 | 1 | 1 | 1 | |||||||||||
Actuarial losses (2) | 2 | 1 | 5 | 7 | |||||||||||
Tax expense | (2 | ) | (1 | ) | (1 | ) | (3 | ) | |||||||
Net current period other comprehensive income | 1 | 1 | 1 | 5 | |||||||||||
Ending Balance | $ | (64 | ) | $ | (80 | ) | $ | (64 | ) | $ | (80 | ) |
(1) | Total other comprehensive income (loss) related to the remeasurement of the postretirement plan. |
(2) | These accumulated other comprehensive components are included in the computation of net periodic cost. |
(a) | Non-Trading Activities |
(b) | Derivative Fair Values and Income Statement Impacts |
Fair Value of Derivative Instruments | ||||||||||
September 30, 2016 | ||||||||||
Total derivatives not designated as hedging instruments | Balance Sheet Location | Derivative Assets Fair Value | Derivative Liabilities Fair Value | |||||||
(in millions) | ||||||||||
Natural gas derivatives (1) (2) (3) | Current Assets: Non-trading derivative assets | $ | 51 | $ | 2 | |||||
Natural gas derivatives (1) (2) (3) | Other Assets: Non-trading derivative assets | 24 | — | |||||||
Natural gas derivatives (1) (2) (3) | Current Liabilities: Non-trading derivative liabilities | 19 | 41 | |||||||
Natural gas derivatives (1) (2) (3) | Other Liabilities: Non-trading derivative liabilities | 4 | 11 | |||||||
Indexed debt securities derivative | Current Liabilities | — | 562 | |||||||
Total | $ | 98 | $ | 616 |
(1) | The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 1,080 Bcf or a net 16 Bcf short position. Of the net short position, basis swaps constitute a net 128 Bcf long position. |
(2) | Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $50 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, offset by collateral netting of $6 million. |
(3) | Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. |
Offsetting of Natural Gas Derivative Assets and Liabilities | ||||||||||||
September 30, 2016 | ||||||||||||
Gross Amounts Recognized (1) | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amount Presented in the Consolidated Balance Sheets (2) | ||||||||||
(in millions) | ||||||||||||
Current Assets: Non-trading derivative assets | $ | 70 | $ | (21 | ) | $ | 49 | |||||
Other Assets: Non-trading derivative assets | 28 | (4 | ) | 24 | ||||||||
Current Liabilities: Non-trading derivative liabilities | (43 | ) | 24 | (19 | ) | |||||||
Other Liabilities: Non-trading derivative liabilities | (11 | ) | 7 | (4 | ) | |||||||
Total | $ | 44 | $ | 6 | $ | 50 |
(1) | Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. |
(2) | The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. |
Fair Value of Derivative Instruments | ||||||||||
December 31, 2015 | ||||||||||
Total derivatives not designated as hedging instruments | Balance Sheet Location | Derivative Assets Fair Value | Derivative Liabilities Fair Value | |||||||
(in millions) | ||||||||||
Natural gas derivatives (1) (2) (3) | Current Assets: Non-trading derivative assets | $ | 90 | $ | 2 | |||||
Natural gas derivatives (1) (2) (3) | Other Assets: Non-trading derivative assets | 36 | — | |||||||
Natural gas derivatives (1) (2) (3) | Current Liabilities: Non-trading derivative liabilities | 10 | 60 | |||||||
Natural gas derivatives (1) (2) (3) | Other Liabilities: Non-trading derivative liabilities | 4 | 25 | |||||||
Indexed debt securities derivative | Current Liabilities | — | 442 | |||||||
Total | $ | 140 | $ | 529 |
(1) | The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 767 Bcf or a net 112 Bcf long position. Of the net long position, basis swaps constitute 133 Bcf. |
(2) | Natural gas contracts are presented on a net basis in the Condensed Consolidated Balance Sheets as they are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due and causes derivative assets (liabilities) to be ultimately presented net in a liability (asset) account within the Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities was a $109 million asset as shown on CenterPoint Energy’s Condensed Consolidated Balance Sheets (and as detailed in the table below), and was comprised of the natural gas contracts derivative assets and liabilities separately shown above, offset by collateral netting of $56 million. |
(3) | Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. |
Offsetting of Natural Gas Derivative Assets and Liabilities | ||||||||||||
December 31, 2015 | ||||||||||||
Gross Amounts Recognized (1) | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amount Presented in the Consolidated Balance Sheets (2) | ||||||||||
(in millions) | ||||||||||||
Current Assets: Non-trading derivative assets | $ | 100 | $ | (11 | ) | $ | 89 | |||||
Other Assets: Non-trading derivative assets | 40 | (4 | ) | 36 | ||||||||
Current Liabilities: Non-trading derivative liabilities | (62 | ) | 51 | (11 | ) | |||||||
Other Liabilities: Non-trading derivative liabilities | (25 | ) | 20 | (5 | ) | |||||||
Total | $ | 53 | $ | 56 | $ | 109 |
(1) | Gross amounts recognized include some derivative assets and liabilities that are not subject to master netting arrangements. |
(2) | The derivative assets and liabilities on the Condensed Consolidated Balance Sheets exclude accounts receivable or accounts payable that, should they exist, could be used as offsets to these balances in the event of a default. |
Income Statement Impact of Derivative Activity | ||||||||||
Three Months Ended September 30, | ||||||||||
Total derivatives not designated as hedging instruments | Income Statement Location | 2016 | 2015 | |||||||
(in millions) | ||||||||||
Natural gas derivatives | Gains (Losses) in Revenues | $ | 31 | $ | 39 | |||||
Natural gas derivatives | Gains (Losses) in Expenses: Natural Gas | (13 | ) | (30 | ) | |||||
Indexed debt securities derivative | Gains (Losses) in Other Income (Expense) | (72 | ) | 129 | ||||||
Total | $ | (54 | ) | $ | 138 |
Income Statement Impact of Derivative Activity | ||||||||||
Nine Months Ended September 30, | ||||||||||
Total derivatives not designated as hedging instruments | Income Statement Location | 2016 | 2015 | |||||||
(in millions) | ||||||||||
Natural gas derivatives | Gains (Losses) in Revenues | $ | 1 | $ | 88 | |||||
Natural gas derivatives | Gains (Losses) in Expenses: Natural Gas | 35 | (72 | ) | ||||||
Indexed debt securities derivative | Gains (Losses) in Other Income (Expense) | (258 | ) | 62 | ||||||
Total | $ | (222 | ) | $ | 78 |
(c) | Credit Risk Contingent Features |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Netting Adjustments (1) | Balance as of September 30, 2016 | |||||||||||||||
(in millions) | |||||||||||||||||||
Assets | |||||||||||||||||||
Corporate equities | $ | 816 | $ | — | $ | — | $ | — | $ | 816 | |||||||||
Investments, including money market funds (2) | 55 | — | — | — | 55 | ||||||||||||||
Natural gas derivatives (3) | 4 | 72 | 22 | (25 | ) | 73 | |||||||||||||
Total assets | $ | 875 | $ | 72 | $ | 22 | $ | (25 | ) | $ | 944 | ||||||||
Liabilities | |||||||||||||||||||
Indexed debt securities derivative | $ | — | $ | 562 | $ | — | $ | — | $ | 562 | |||||||||
Natural gas derivatives (3) | 5 | 44 | 5 | (31 | ) | 23 | |||||||||||||
Total liabilities | $ | 5 | $ | 606 | $ | 5 | $ | (31 | ) | $ | 585 |
(1) | Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $6 million posted with the same counterparties. |
(2) | Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. |
(3) | Natural gas derivatives include no material amounts related to physical forward transactions with Enable. |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Netting Adjustments (1) | Balance as of December 31, 2015 | |||||||||||||||
(in millions) | |||||||||||||||||||
Assets | |||||||||||||||||||
Corporate equities | $ | 807 | $ | — | $ | — | $ | — | $ | 807 | |||||||||
Investments, including money market funds (2) | 53 | — | — | — | 53 | ||||||||||||||
Natural gas derivatives (3) | 4 | 115 | 21 | (15 | ) | 125 | |||||||||||||
Total assets | $ | 864 | $ | 115 | $ | 21 | $ | (15 | ) | $ | 985 | ||||||||
Liabilities | |||||||||||||||||||
Indexed debt securities derivative | $ | — | $ | 442 | $ | — | $ | — | $ | 442 | |||||||||
Natural gas derivatives (3) | 13 | 65 | 9 | (71 | ) | 16 | |||||||||||||
Total liabilities | $ | 13 | $ | 507 | $ | 9 | $ | (71 | ) | $ | 458 |
(1) | Amounts represent the impact of legally enforceable master netting arrangements that allow CenterPoint Energy to settle positive and negative positions and also include cash collateral of $56 million posted with the same counterparties. |
(2) | Amounts are included in Prepaid Expenses and Other Current Assets in the Condensed Consolidated Balance Sheets. |
(3) | Natural gas derivatives include no material amounts related to physical forward transactions with Enable. |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Derivative Assets and Liabilities, Net | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions) | |||||||||||||||
Beginning balance | $ | 16 | $ | 10 | $ | 12 | $ | 17 | |||||||
Purchases | — | — | 12 | — | |||||||||||
Total gains | 9 | 5 | 13 | 5 | |||||||||||
Total settlements | (8 | ) | (2 | ) | (24 | ) | (8 | ) | |||||||
Transfers into Level 3 | — | 1 | 5 | 1 | |||||||||||
Transfers out of Level 3 | — | — | (1 | ) | (1 | ) | |||||||||
Ending balance (1) | $ | 17 | $ | 14 | $ | 17 | $ | 14 | |||||||
The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date | $ | 6 | $ | 6 | $ | 14 | $ | 7 |
(1) | CenterPoint Energy did not have significant Level 3 sales during either of the three or nine months ended September 30, 2016 or 2015. |
September 30, 2016 | December 31, 2015 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Financial assets: | |||||||||||||||
Notes receivable – unconsolidated affiliate | $ | — | $ | — | $ | 363 | $ | 356 | |||||||
Financial liabilities: | |||||||||||||||
Long-term debt | $ | 8,396 | $ | 9,139 | $ | 8,585 | $ | 9,067 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(in millions) | ||||||||||||||||
Operating revenues | $ | 620 | $ | 646 | $ | 1,658 | $ | 1,852 | ||||||||
Cost of sales, excluding depreciation and amortization | 268 | 287 | 717 | 856 | ||||||||||||
Impairment of goodwill and other long-lived assets | 8 | 1,105 | 8 | 1,105 | ||||||||||||
Operating income (loss) | 139 | (975 | ) | 299 | (778 | ) | ||||||||||
Net income (loss) attributable to Enable | 110 | (985 | ) | 231 | (817 | ) | ||||||||||
Reconciliation of Equity in Earnings (Losses), net: | ||||||||||||||||
CenterPoint Energy’s interest | $ | 61 | $ | (546 | ) | $ | 128 | $ | (453 | ) | ||||||
Basis difference amortization (1) | 12 | 2 | 36 | 4 | ||||||||||||
Impairment of CenterPoint Energy’s equity method investment in Enable | — | (250 | ) | — | (250 | ) | ||||||||||
CenterPoint Energy’s equity in earnings (losses), net (2) | $ | 73 | $ | (794 | ) | $ | 164 | $ | (699 | ) |
(1) | Equity in earnings (losses) of unconsolidated affiliates includes CenterPoint Energy’s share of Enable’s earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in Enable’s net assets. The basis difference is amortized over approximately 33 years, the average life of the assets to which the basis difference is attributed. |
(2) | These amounts include CenterPoint Energy’s share of Enable’s impairment of goodwill and long-lived assets and the impairment of CenterPoint Energy’s equity method investment in Enable totaling $862 million during the three and nine months ended September 30, 2015. This impairment is partially offset by $68 million and $163 million of earnings for the three and nine months ended September 30, 2015, respectively. |
September 30, 2016 | December 31, 2015 | |||||||
(in millions) | ||||||||
Current assets | $ | 408 | $ | 381 | ||||
Non-current assets | 10,833 | 10,845 | ||||||
Current liabilities | 338 | 615 | ||||||
Non-current liabilities | 3,174 | 3,080 | ||||||
Non-controlling interest | 11 | 12 | ||||||
Preferred equity | 362 | — | ||||||
Enable partners’ equity | 7,356 | 7,519 | ||||||
Reconciliation of Equity Method Investment in Enable: | ||||||||
CenterPoint Energy’s ownership interest in Enable partners’ capital | $ | 4,073 | $ | 4,163 | ||||
CenterPoint Energy’s basis difference | (1,538 | ) | (1,569 | ) | ||||
CenterPoint Energy’s equity method investment in Enable | $ | 2,535 | $ | 2,594 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(in millions) | ||||||||||||||||
Investment in Enable’s common and subordinated units | $ | 74 | $ | 74 | $ | 223 | $ | 219 | ||||||||
Investment in Enable’s Series A Preferred Units | 9 | — | 13 | (1) | — |
December 31, 2015 | Continuum Acquisition (1) | September 30, 2016 | |||||||||
(in millions) | |||||||||||
Natural Gas Distribution | $ | 746 | $ | — | $ | 746 | |||||
Energy Services | 83 | (2) | 22 | 105 | |||||||
Other Operations | 11 | — | 11 | ||||||||
Total | $ | 840 | $ | 22 | $ | 862 |
(in millions) | ||||
Cash payment to ZENS note holders | $ | 178 | ||
Indexed debt – reduction | (40 | ) | ||
Indexed debt securities derivative – reduction | (21 | ) | ||
Loss on indexed debt securities | $ | 117 |
(a) | Short-term Borrowings |
(b) | Long-term Debt |
September 30, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||
Size of Facility | Loans | Letters of Credit | Commercial Paper | Size of Facility | Loans | Letters of Credit | Commercial Paper | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
CenterPoint Energy | $ | 1,600 | $ | — | $ | 6 | $ | 539 | (1) | $ | 1,200 | $ | — | $ | 6 | $ | 716 | (1) | ||||||||||||||
Houston Electric | 300 | — | 4 | — | 300 | 200 | (2) | 4 | — | |||||||||||||||||||||||
CERC Corp. | 600 | — | 3 | 459 | (3) | 600 | — | 2 | 219 | (3) | ||||||||||||||||||||||
Total | $ | 2,500 | $ | — | $ | 13 | $ | 998 | $ | 2,100 | $ | 200 | $ | 12 | $ | 935 |
(1) | Weighted average interest rate was 0.81% and 0.79% as of September 30, 2016 and December 31, 2015, respectively. |
(2) | Weighted average interest rate was 1.637% as of December 31, 2015. |
(3) | Weighted average interest rate was 0.76% and 0.81% as of September 30, 2016 and December 31, 2015, respectively. |
(a) | Natural Gas Supply Commitments |
(b) | Legal, Environmental and Other Matters |
(c) | Guarantees |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions, except share and per share amounts) | |||||||||||||||
Net income (loss) | $ | 179 | $ | (391 | ) | $ | 331 | $ | (183 | ) | |||||
Basic weighted average shares outstanding | 430,682,000 | 430,262,000 | 430,581,000 | 430,152,000 | |||||||||||
Plus: Incremental shares from assumed conversions: | |||||||||||||||
Restricted stock (1) | 2,714,000 | — | 2,714,000 | — | |||||||||||
Diluted weighted average shares | 433,396,000 | 430,262,000 | 433,295,000 | 430,152,000 | |||||||||||
Basic earnings (loss) per share | |||||||||||||||
Net income (loss) | $ | 0.42 | $ | (0.91 | ) | $ | 0.77 | $ | (0.43 | ) | |||||
Diluted earnings (loss) per share | |||||||||||||||
Net income (loss) | $ | 0.41 | $ | (0.91 | ) | $ | 0.76 | $ | (0.43 | ) |
(1) | 1,759,000 incremental shares from assumed conversions of restricted stock have not been included in the computation of diluted earnings (loss) per share for either the three months or nine months ended September 30, 2015, as their inclusion would be anti-dilutive. |
For the Three Months Ended September 30, 2016 | |||||||||||
Revenues from External Customers | Net Intersegment Revenues | Operating Income | |||||||||
(in millions) | |||||||||||
Electric Transmission & Distribution | $ | 908 | (1) | $ | — | $ | 257 | ||||
Natural Gas Distribution | 370 | 7 | 22 | ||||||||
Energy Services | 608 | 6 | 5 | ||||||||
Midstream Investments (2) | — | — | — | ||||||||
Other Operations | 3 | — | — | ||||||||
Eliminations | — | (13 | ) | — | |||||||
Consolidated | $ | 1,889 | $ | — | $ | 284 |
For the Three Months Ended September 30, 2015 | |||||||||||
Revenues from External Customers | Net Intersegment Revenues | Operating Income | |||||||||
(in millions) | |||||||||||
Electric Transmission & Distribution | $ | 827 | (1) | $ | — | $ | 244 | ||||
Natural Gas Distribution | 353 | 6 | 11 | ||||||||
Energy Services | 446 | 6 | 7 | ||||||||
Midstream Investments (2) | — | — | — | ||||||||
Other Operations | 4 | — | 3 | ||||||||
Eliminations | — | (12 | ) | — | |||||||
Consolidated | $ | 1,630 | $ | — | $ | 265 |
For the Nine Months Ended September 30, 2016 | ||||||||||||||||
Revenues from External Customers | Net Intersegment Revenues | Operating Income | Total Assets as of September 30, 2016 | |||||||||||||
(in millions) | ||||||||||||||||
Electric Transmission & Distribution | $ | 2,331 | (1) | $ | — | $ | 498 | $ | 10,090 | |||||||
Natural Gas Distribution | 1,672 | 21 | 202 | 5,732 | ||||||||||||
Energy Services | 1,433 | 17 | 11 | 990 | ||||||||||||
Midstream Investments (2) | — | — | — | 2,535 | ||||||||||||
Other Operations | 11 | — | 5 | 2,920 | (3) | |||||||||||
Eliminations | — | (38 | ) | — | (981 | ) | ||||||||||
Consolidated | $ | 5,447 | $ | — | $ | 716 | $ | 21,286 |
For the Nine Months Ended September 30, 2015 | ||||||||||||||||
Revenues from External Customers | Net Intersegment Revenues | Operating Income | Total Assets as of December 31, 2015 | |||||||||||||
(in millions) | ||||||||||||||||
Electric Transmission & Distribution | $ | 2,144 | (1) | $ | — | $ | 498 | $ | 10,028 | |||||||
Natural Gas Distribution | 1,958 | 21 | 176 | 5,657 | ||||||||||||
Energy Services | 1,482 | 28 | 29 | 857 | ||||||||||||
Midstream Investments (2) | — | — | — | 2,594 | ||||||||||||
Other Operations | 11 | — | 4 | 2,879 | (3) | |||||||||||
Eliminations | — | (49 | ) | — | (725 | ) | ||||||||||
Consolidated | $ | 5,595 | $ | — | $ | 707 | $ | 21,290 |
(1) | Electric Transmission & Distribution revenues from major customers are as follows: |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(in millions) | ||||||||||||||||
Affiliates of NRG | $ | 223 | $ | 222 | $ | 527 | $ | 578 | ||||||||
Affiliates of Energy Future Holdings Corp. | $ | 71 | $ | 67 | $ | 166 | $ | 170 |
(2) | Midstream Investments’ equity earnings (losses) are as follows: |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(in millions) | ||||||||||||||||
Enable (a) | $ | 73 | $ | (794 | ) | $ | 164 | $ | (699 | ) |
(a) | These amounts include CenterPoint Energy’s share of Enable’s impairment of goodwill and long-lived assets and the impairment of CenterPoint Energy’s equity method investment in Enable totaling $862 million during the three and nine months ended September 30, 2015. This impairment is partially offset by $68 million and $163 million of earnings for the three and nine months ended September 30, 2015, respectively. |
September 30, 2016 | December 31, 2015 | |||||||
(in millions) | ||||||||
Enable | $ | 2,535 | $ | 2,594 |
(3) | Included in total assets of Other Operations as of September 30, 2016 and December 31, 2015 are pension and other postemployment-related regulatory assets of $775 million and $814 million, respectively. |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF CENTERPOINT ENERGY, INC. AND SUBSIDIARIES |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | $ | 1,889 | $ | 1,630 | $ | 5,447 | $ | 5,595 | |||||||
Expenses | 1,605 | 1,365 | 4,731 | 4,888 | |||||||||||
Operating Income | 284 | 265 | 716 | 707 | |||||||||||
Interest and Other Finance Charges | (83 | ) | (88 | ) | (256 | ) | (266 | ) | |||||||
Interest on Securitization Bonds | (23 | ) | (25 | ) | (70 | ) | (80 | ) | |||||||
Equity in Earnings (Losses) of Unconsolidated Affiliate, net | 73 | (794 | ) | 164 | (699 | ) | |||||||||
Other Income, net | 25 | 7 | (30 | ) | 26 | ||||||||||
Income (Loss) Before Income Taxes | 276 | (635 | ) | 524 | (312 | ) | |||||||||
Income Tax Expense (Benefit) | 97 | (244 | ) | 193 | (129 | ) | |||||||||
Net Income (Loss) | $ | 179 | $ | (391 | ) | $ | 331 | $ | (183 | ) | |||||
Basic Earnings (Loss) Per Share | $ | 0.42 | $ | (0.91 | ) | $ | 0.77 | $ | (0.43 | ) | |||||
Diluted Earnings (Loss) Per Share | $ | 0.41 | $ | (0.91 | ) | $ | 0.76 | $ | (0.43 | ) |
• | a $867 million increase in equity earnings from our investment in Enable, as 2015 results included impairment charges of $862 million, discussed further in Note 8; |
• | a $211 million increase in the gain on marketable securities included in Other Income, net shown above; |
• | a $19 million increase in operating income (discussed below by segment); |
• | a $9 million increase in cash distributions on Series A Preferred Units included in Other Income, net shown above; |
• | a $5 million decrease in interest expense due to lower weighted average interest rates on outstanding debt; and |
• | a $2 million decrease in interest expense related to lower outstanding balances of our Securitization Bonds. |
• | a $201 million increase in losses on the underlying value of the indexed debt securities related to the ZENS included in Other Income, net shown above. |
• | a $863 million increase in equity earnings from our investment in Enable, as 2015 results included impairment charges of $862 million, discussed further in Note 8; |
• | a $259 million increase in the gain on marketable securities included in Other Income, net shown above; |
• | a $13 million increase in cash distributions on Series A Preferred Units included in Other Income, net shown above; |
• | a $10 million decrease in interest expense due to lower weighted average interest rates on outstanding debt; |
• | a $10 million decrease in interest expense related to lower outstanding balances of our Securitization Bonds; and |
• | a $9 million increase in operating income (discussed below by segment). |
• | a $322 million increase in income tax expense due to higher income before tax; |
• | a $320 million increase in the loss on indexed debt securities related to the ZENS included in Other Income, net shown above, resulting from a loss of $117 million from the Charter merger in 2016 compared to a loss of $7 million from Verizon’s acquisition of AOL in 2015 and increased losses of $210 million in the underlying value of the indexed debt securities; |
• | a $4 million decrease in interest income included in Other Income, net shown above; and |
• | a $3 million decrease in dividend income included in Other Income, net shown above. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions) | |||||||||||||||
Electric Transmission & Distribution | $ | 257 | $ | 244 | $ | 498 | $ | 498 | |||||||
Natural Gas Distribution | 22 | 11 | 202 | 176 | |||||||||||
Energy Services | 5 | 7 | 11 | 29 | |||||||||||
Other Operations | — | 3 | 5 | 4 | |||||||||||
Total Consolidated Operating Income | $ | 284 | $ | 265 | $ | 716 | $ | 707 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions, except throughput and customer data) | |||||||||||||||
Revenues: | |||||||||||||||
TDU | $ | 725 | $ | 683 | $ | 1,881 | $ | 1,782 | |||||||
Bond Companies | 183 | 144 | 450 | 362 | |||||||||||
Total revenues | 908 | 827 | 2,331 | 2,144 | |||||||||||
Expenses: | |||||||||||||||
Operation and maintenance, excluding Bond Companies | 336 | 322 | 995 | 944 | |||||||||||
Depreciation and amortization, excluding Bond Companies | 96 | 86 | 285 | 253 | |||||||||||
Taxes other than income taxes | 59 | 56 | 173 | 167 | |||||||||||
Bond Companies | 160 | 119 | 380 | 282 | |||||||||||
Total expenses | 651 | 583 | 1,833 | 1,646 | |||||||||||
Operating Income | $ | 257 | $ | 244 | $ | 498 | $ | 498 | |||||||
Operating Income: | |||||||||||||||
TDU | $ | 234 | $ | 219 | $ | 428 | $ | 418 | |||||||
Bond Companies (1) | 23 | 25 | 70 | 80 | |||||||||||
Total segment operating income | $ | 257 | $ | 244 | $ | 498 | $ | 498 | |||||||
Throughput (in GWh): | |||||||||||||||
Residential | 10,776 | 10,388 | 23,427 | 23,284 | |||||||||||
Total | 26,518 | 25,612 | 66,839 | 65,378 | |||||||||||
Number of metered customers at end of period: | |||||||||||||||
Residential | 2,116,312 | 2,069,213 | 2,116,312 | 2,069,213 | |||||||||||
Total | 2,389,014 | 2,337,806 | 2,389,014 | 2,337,806 |
(1) | Represents the amount necessary to pay interest on the Securitization Bonds. |
• | customer growth of $10 million from the addition of over 51,000 new customers; |
• | higher equity return of $7 million, primarily related to true-up proceeds; |
• | higher DCRF revenues of $6 million, primarily due to the implementation of new rates in September from the 2016 filing; and |
• | higher transmission-related revenues of $18 million, which were partially offset by increased transmission costs billed by transmission providers of $13 million. |
• | customer growth of $24 million from the addition of over 51,000 new customers; |
• | higher transmission-related revenues of $65 million, which were partially offset by increased transmission costs billed by transmission providers of $41 million; and |
• | higher equity return of $17 million, primarily related to true-up proceeds. |
• | higher depreciation, primarily due to ongoing additions to plant in service, and other taxes of $38 million; |
• | higher operation and maintenance expenses of $8 million, primarily due to contract services and corporate services; |
• | lower right-of-way revenues of $4 million; and |
• | lower usage, net of the weather hedge, of $3 million, primarily due to milder weather. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions, except throughput and customer data) | |||||||||||||||
Revenues | $ | 377 | $ | 359 | $ | 1,693 | $ | 1,979 | |||||||
Expenses: | |||||||||||||||
Natural gas | 104 | 106 | 679 | 1,014 | |||||||||||
Operation and maintenance | 159 | 155 | 526 | 510 | |||||||||||
Depreciation and amortization | 61 | 55 | 180 | 165 | |||||||||||
Taxes other than income taxes | 31 | 32 | 106 | 114 | |||||||||||
Total expenses | 355 | 348 | 1,491 | 1,803 | |||||||||||
Operating Income | $ | 22 | $ | 11 | $ | 202 | $ | 176 | |||||||
Throughput (in Bcf): | |||||||||||||||
Residential | 12 | 12 | 105 | 128 | |||||||||||
Commercial and industrial | 51 | 52 | 193 | 196 | |||||||||||
Total Throughput | 63 | 64 | 298 | 324 | |||||||||||
Number of customers at end of period: | |||||||||||||||
Residential | 3,143,357 | 3,110,645 | 3,143,357 | 3,110,645 | |||||||||||
Commercial and industrial | 251,043 | 248,911 | 251,043 | 248,911 | |||||||||||
Total | 3,394,400 | 3,359,556 | 3,394,400 | 3,359,556 |
• | rate increases of $8 million; |
• | rate stabilization of $7 million, reflecting adjustments from decoupling in Minnesota and Arkansas; |
• | lower bad debt expense of $3 million; |
• | lower sales and use tax of $3 million; and |
• | customer growth of $1 million from the addition of approximately 35,000 new customers. |
• | increased depreciation and amortization of $6 million, primarily due to ongoing additions to plant in service; and |
• | increased labor and benefits expense of $5 million. |
• | rate increases of $34 million; |
• | rate stabilization of $11 million, reflecting adjustments from decoupling in Minnesota and Arkansas; and |
• | customer growth of $3 million from the addition of approximately 35,000 new customers. |
• | higher depreciation and amortization of $15 million, primarily due to ongoing additions to plant in service; and |
• | increased labor and benefits expense of $9 million. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions, except throughput and customer data) | |||||||||||||||
Revenues | $ | 614 | $ | 452 | $ | 1,450 | $ | 1,510 | |||||||
Expenses: | |||||||||||||||
Natural gas | 591 | 433 | 1,389 | 1,445 | |||||||||||
Operation and maintenance | 16 | 11 | 43 | 32 | |||||||||||
Depreciation and amortization | 1 | 1 | 5 | 3 | |||||||||||
Taxes other than income taxes | 1 | — | 2 | 1 | |||||||||||
Total expenses | 609 | 445 | 1,439 | 1,481 | |||||||||||
Operating Income | $ | 5 | $ | 7 | $ | 11 | $ | 29 | |||||||
Mark-to-market gain (loss) | $ | (2 | ) | $ | 5 | $ | (18 | ) | $ | 3 | |||||
Throughput (in Bcf) | 200 | 138 | 570 | 459 | |||||||||||
Number of customers at end of period | 31,669 | 18,052 | 31,669 | 18,052 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(in millions) | ||||||||||||||||
Enable (1) | $ | 73 | $ | (794 | ) | $ | 164 | $ | (699 | ) |
(1) | These amounts include our share of Enable’s impairment of goodwill and long-lived assets and the impairment of our equity method investment in Enable totaling $862 million during the three and nine months ended September 30, 2015 (see Note 8). This impairment is partially offset by $68 million and $163 million of earnings for the three and nine months ended September 30, 2015, respectively. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions) | |||||||||||||||
Revenues | $ | 3 | $ | 4 | $ | 11 | $ | 11 | |||||||
Expenses | 3 | 1 | 6 | 7 | |||||||||||
Operating Income | $ | — | $ | 3 | $ | 5 | $ | 4 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Cash provided by (used in): | |||||||
Operating activities | $ | 1,452 | $ | 1,518 | |||
Investing activities | (739 | ) | (1,024 | ) | |||
Financing activities | (707 | ) | (565 | ) |
• | capital expenditures of approximately $334 million; |
• | scheduled principal payments on Securitization Bonds of $63 million; |
• | dividend payments on CenterPoint Energy, Inc. common stock; and |
• | interest payments on debt. |
Execution Date | Company | Size of Facility | Amount Utilized at October 21, 2016 (1) | Termination Date | ||||||||
(in millions) | ||||||||||||
March 3, 2016 | CenterPoint Energy | $ | 1,600 | $ | 486 | (2) | March 3, 2021 | |||||
March 3, 2016 | Houston Electric | 300 | 4 | (3) | March 3, 2021 | |||||||
March 3, 2016 | CERC Corp. | 600 | 379 | (4) | March 3, 2021 |
(1) | Based on the consolidated debt to capitalization covenant in our revolving credit facility and the revolving credit facility of each of Houston Electric and CERC Corp., we would have been permitted to utilize the full capacity of such revolving credit facilities, which aggregated $2.5 billion as of September 30, 2016. |
(2) | Represents outstanding commercial paper of $480 million and outstanding letters of credit of $6 million. |
(3) | Represents outstanding letters of credit. |
(4) | Represents outstanding commercial paper of $375 million and outstanding letters of credit of $4 million. |
Moody’s | S&P | Fitch | ||||||||||
Company/Instrument | Rating | Outlook (1) | Rating | Outlook (2) | Rating | Outlook (3) | ||||||
CenterPoint Energy Senior Unsecured Debt | Baa1 | Stable | BBB+ | Developing | BBB | Stable | ||||||
Houston Electric Senior Secured Debt | A1 | Stable | A | Developing | A | Stable | ||||||
CERC Corp. Senior Unsecured Debt | Baa2 | Stable | A- | Developing | BBB | Stable |
(1) | A Moody’s rating outlook is an opinion regarding the likely direction of an issuer’s rating over the medium term. |
(2) | An S&P rating outlook assesses the potential direction of a long-term credit rating over the intermediate to longer term. |
(3) | A Fitch rating outlook indicates the direction a rating is likely to move over a one- to two-year period. |
• | cash collateral requirements that could exist in connection with certain contracts, including our weather hedging arrangements, and gas purchases, gas price and gas storage activities of our Natural Gas Distribution and Energy Services business segments; |
• | acceleration of payment dates on certain gas supply contracts, under certain circumstances, as a result of increased gas prices and concentration of natural gas suppliers; |
• | increased costs related to the acquisition of natural gas; |
• | increases in interest expense in connection with debt refinancings and borrowings under credit facilities; |
• | various legislative or regulatory actions; |
• | incremental collateral, if any, that may be required due to regulation of derivatives; |
• | the ability of GenOn and its subsidiaries to satisfy their obligations in respect of GenOn’s indemnity obligations to us and our subsidiaries or in connection with the contractual obligations to a third party pursuant to which our subsidiary is their guarantor; |
• | the ability of REPs, including REP affiliates of NRG and Energy Future Holdings Corp., to satisfy their obligations to us and our subsidiaries; |
• | slower customer payments and increased write-offs of receivables due to higher gas prices or changing economic conditions; |
• | the outcome of litigation brought by or against us; |
• | contributions to pension and postretirement benefit plans; |
• | restoration costs and revenue losses resulting from future natural disasters such as hurricanes and the timing of recovery of such restoration costs; and |
• | various other risks identified in “Risk Factors” in Item 1A of Part I of our 2015 Form 10-K. |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
Item 1. | LEGAL PROCEEDINGS |
Item 1A. | RISK FACTORS |
Item 5. | OTHER INFORMATION |
Item 6. | EXHIBITS |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | ||||
3.1 | Restated Articles of Incorporation of CenterPoint Energy | CenterPoint Energy’s Form 8-K dated July 24, 2008 | 1-31447 | 3.2 | ||||
3.2 | Second Amended and Restated Bylaws of CenterPoint Energy | CenterPoint Energy’s Form 10-K for the year ended December 31, 2015 | 1-31447 | 3(b) | ||||
3.3 | Statement of Resolutions Deleting Shares Designated Series A Preferred Stock of CenterPoint Energy | CenterPoint Energy’s Form 10-K for the year ended December 31, 2011 | 1-31447 | 3(c) | ||||
4.1 | Form of CenterPoint Energy Stock Certificate | CenterPoint Energy’s Registration Statement on Form S-4 | 3-69502 | 4.1 | ||||
4.2 | $1,600,000,000 Credit Agreement, dated as of March 3, 2016, among CenterPoint Energy, as Borrower, and the banks named therein | CenterPoint Energy’s Form 8-K dated March 3, 2016 | 1-31447 | 4.1 | ||||
4.3 | $300,000,000 Credit Agreement, dated as of March 3, 2016, among Houston Electric, as Borrower, and the banks named therein | CenterPoint Energy’s Form 8-K dated March 3, 2016 | 1-31447 | 4.2 | ||||
4.4 | $600,000,000 Credit Agreement, dated as of March 3, 2016, among CERC Corp., as Borrower, and the banks named therein | CenterPoint Energy’s Form 8-K dated March 3, 2016 | 1-31447 | 4.3 | ||||
+4.5 | Twenty-Fifth Supplemental Indenture, dated as of August 11, 2016, to the General Mortgage Indenture, dated as of October 10, 2002, between Houston Electric and the Trustee | |||||||
+4.6 | Officer’s Certificate, dated as of August 11, 2016, setting forth the form, terms and provisions of the Twenty-Sixth Series of General Mortgage Bonds | |||||||
+12 | Computation of Ratios of Earnings to Fixed Charges | |||||||
+31.1 | Rule 13a-14(a)/15d-14(a) Certification of Scott M. Prochazka | |||||||
+31.2 | Rule 13a-14(a)/15d-14(a) Certification of William D. Rogers | |||||||
+32.1 | Section 1350 Certification of Scott M. Prochazka | |||||||
+32.2 | Section 1350 Certification of William D. Rogers |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | ||||
+101.INS | XBRL Instance Document | |||||||
+101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
+101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
+101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
+101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | |||||||
+101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
CENTERPOINT ENERGY, INC. | |
By: | /s/ Kristie L. Colvin |
Kristie L. Colvin | |
Senior Vice President and Chief Accounting Officer | |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | ||||
3.1 | Restated Articles of Incorporation of CenterPoint Energy | CenterPoint Energy’s Form 8-K dated July 24, 2008 | 1-31447 | 3.2 | ||||
3.2 | Second Amended and Restated Bylaws of CenterPoint Energy | CenterPoint Energy’s Form 10-K for the year ended December 31, 2015 | 1-31447 | 3(b) | ||||
3.3 | Statement of Resolutions Deleting Shares Designated Series A Preferred Stock of CenterPoint Energy | CenterPoint Energy’s Form 10-K for the year ended December 31, 2011 | 1-31447 | 3(c) | ||||
4.1 | Form of CenterPoint Energy Stock Certificate | CenterPoint Energy’s Registration Statement on Form S-4 | 3-69502 | 4.1 | ||||
4.2 | $1,600,000,000 Credit Agreement, dated as of March 3, 2016, among CenterPoint Energy, as Borrower, and the banks named therein | CenterPoint Energy’s Form 8-K dated March 3, 2016 | 1-31447 | 4.1 | ||||
4.3 | $300,000,000 Credit Agreement, dated as of March 3, 2016, among Houston Electric, as Borrower, and the banks named therein | CenterPoint Energy’s Form 8-K dated March 3, 2016 | 1-31447 | 4.2 | ||||
4.4 | $600,000,000 Credit Agreement, dated as of March 3, 2016, among CERC Corp., as Borrower, and the banks named therein | CenterPoint Energy’s Form 8-K dated March 3, 2016 | 1-31447 | 4.3 | ||||
+4.5 | Twenty-Fifth Supplemental Indenture, dated as of August 11, 2016, to the General Mortgage Indenture, dated as of October 10, 2002, between Houston Electric and the Trustee | |||||||
+4.6 | Officer’s Certificate, dated as of August 11, 2016, setting forth the form, terms and provisions of the Twenty-Sixth Series of General Mortgage Bonds | |||||||
+12 | Computation of Ratios of Earnings to Fixed Charges | |||||||
+31.1 | Rule 13a-14(a)/15d-14(a) Certification of Scott M. Prochazka | |||||||
+31.2 | Rule 13a-14(a)/15d-14(a) Certification of William D. Rogers | |||||||
+32.1 | Section 1350 Certification of Scott M. Prochazka | |||||||
+32.2 | Section 1350 Certification of William D. Rogers |
Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | ||||
+101.INS | XBRL Instance Document | |||||||
+101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
+101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
+101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
+101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | |||||||
+101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC | ||
Dated: August 11, 2016 | By: | /s/ Kristie L. Colvin |
Name: | Kristie L. Colvin | |
Title: | Senior Vice President and Chief Accounting Officer | |
THE BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION (successor in trust to JPMORGAN CHASE BANK), as Trustee | ||
Dated: August 11, 2016 | By: | /s/ Valere Boyd |
Name: | Valere Boyd | |
Title: | Vice President |
STATE OF TEXAS | ) |
) ss | |
COUNTY OF HARRIS | ) |
/s/ Alida E. Duggan |
Notary Public |
On August 10, 2016 before me, | Marvin G. Cuenca, Notary Public |
(insert name and title of the officer) |
(8) | Not applicable. |
(9) | Not applicable. |
(10) | Not applicable. |
(11) | Not applicable. |
(12) | Not applicable. |
(13) | See subsection (7) above. |
(14) | Not applicable. |
(15) | Not applicable. |
(16) | Not applicable. |
(18) | Not applicable. |
(19) | Not applicable. |
(20) | For purposes of the Bonds, "Business Day" shall mean any day, other than Saturday or Sunday, on which commercial banks and foreign exchange markets are open for business, including dealings in deposits in U.S. dollars, in New York, New York. |
(21) | Not applicable. |
(22) | The Bonds shall have such other terms and provisions as are provided in the form thereof attached hereto as Exhibit A, and shall be issued in substantially such form. |
9. | The First Mortgage Collateralization Date has not occurred. |
/s/ Kristie L. Colvin |
Kristie L. Colvin |
Senior Vice President and Chief Accounting Officer |
/s/ Valere Boyd |
Valere Boyd |
Vice President |
Original Interest Accrual Date: August 11, 2016 | Redeemable: Yes [X] No [ ] | |
Stated Maturity: September 1, 2026 | Redemption Date: At any time. | |
Interest Rate: 2.40% | Redemption Price: on any date prior to June 1, 2026 at a price equal to the greater of (i) 100% of the principal amount of this Security or the portion hereof to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on this Security or the portion thereof to be redeemed that would be due if this Security matured on June 1, 2026 but for the redemption (not including any portion of such payments of interest accrued to the Redemption Date) discounted to the Redemption Date on a semiannual basis at the applicable Treasury Rate plus 15 basis points; plus, in each case, accrued and unpaid interest to the Redemption Date on the principal amount being redeemed; or on or after June 1, 2026, at a price equal to 100% of the principal amount of this Security or the portion thereof to be redeemed plus accrued and unpaid interest to the Redemption Date on the principal amount being redeemed. | |
Interest Payment Dates: March 1 and September 1 | ||
Regular Record Dates: February 15 and August 15 immediately preceding the respective Interest Payment Date | ||
Principal Amount | Registered No. T-1 |
$300,000,000* | CUSIP 15189X AQ1 |
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC | |
Attest: ___________________________________ | By: ______________________________________________ |
Vincent A. Mercaldi | Kristie L. Colvin |
Assistant Secretary | Senior Vice President and Chief Accounting Officer |
THE BANK OF NEW YORK MELLON TRUST | |
COMPANY, NATIONAL ASSOCIATION, as Trustee | |
By: ______________________________________________ | |
Aggregate Principal | ||||||||
Amount of Securities | ||||||||
Decrease in Aggregate | Increase in Aggregate | Remaining After | Notation by | |||||
Date of | Principal Amount of | Principal Amount of | Such Decrease or | Security | ||||
Adjustment | Securities | Securities | Increase | Registrar |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(in millions, except ratios) | |||||||
Net income (loss) | $ | 331 | $ | (183 | ) | ||
Equity in losses (earnings) of unconsolidated affiliates, net of distributions | 59 | 917 | |||||
Income tax expense (benefit) | 193 | (129 | ) | ||||
Capitalized interest | (5 | ) | (7 | ) | |||
578 | 598 | ||||||
Fixed charges, as defined: | |||||||
Interest | 326 | 346 | |||||
Capitalized interest | 5 | 7 | |||||
Interest component of rentals charged to operating expense | 3 | 3 | |||||
Total fixed charges | 334 | 356 | |||||
Earnings, as defined | $ | 912 | $ | 954 | |||
Ratio of earnings to fixed charges | 2.73 | 2.68 |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Scott M. Prochazka | |
Scott M. Prochazka | |
President and Chief Executive Officer |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ William D. Rogers | |
William D. Rogers | |
Executive Vice President and Chief Financial Officer |
/s/ Scott M. Prochazka | |
Scott M. Prochazka | |
President and Chief Executive Officer | |
November 4, 2016 |
/s/ William D. Rogers | |
William D. Rogers | |
Executive Vice President and Chief Financial Officer | |
November 4, 2016 |
Document and Entity Supplemental Information Document - USD ($) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Oct. 21, 2016 |
Jun. 30, 2015 |
|
Entity Information [Line Items] | |||
Entity Registrant Name | CENTERPOINT ENERGY INC. | ||
Entity Central Index Key | 0001130310 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 430,682,420 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 8,146,639,191 |
Condensed Statements of Consolidated Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Statement [Abstract] | ||||
Revenues | $ 1,889 | $ 1,630 | $ 5,447 | $ 5,595 |
Expenses: | ||||
Natural gas | 683 | 527 | 2,031 | 2,410 |
Operation and maintenance | 505 | 479 | 1,539 | 1,465 |
Depreciation and amortization | 324 | 268 | 873 | 724 |
Taxes other than income taxes | 93 | 91 | 288 | 289 |
Total | 1,605 | 1,365 | 4,731 | 4,888 |
Operating Income | 284 | 265 | 716 | 707 |
Other Income (Expense): | ||||
Gain (loss) on marketable securities | 77 | (134) | 187 | (72) |
Gain (loss) on indexed debt securities | (72) | 129 | (258) | 62 |
Interest and other finance charges | (83) | (88) | (256) | (266) |
Interest on securitization bonds | (23) | (25) | (70) | (80) |
Equity in earnings (losses) of unconsolidated affiliate, net | 73 | (794) | 164 | (699) |
Other, net | 20 | 12 | 41 | 36 |
Total | (8) | (900) | (192) | (1,019) |
Income (Loss) Before Income Taxes | 276 | (635) | 524 | (312) |
Income tax expense (benefit) | 97 | (244) | 193 | (129) |
Net Income (Loss) | $ 179 | $ (391) | $ 331 | $ (183) |
Basic Earnings (Loss) Per Share | $ 0.42 | $ (0.91) | $ 0.77 | $ (0.43) |
Diluted Earnings (Loss) Per Share | 0.41 | (0.91) | 0.76 | (0.43) |
Dividends Declared Per Share | $ 0.2575 | $ 0.2475 | $ 0.7725 | $ 0.7425 |
Weighted Average Shares Outstanding, Basic | 430,682,000 | 430,262,000 | 430,581,000 | 430,152,000 |
Weighted Average Shares Outstanding, Diluted | 433,396,000 | 430,262,000 | 433,295,000 | 430,152,000 |
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 179 | $ (391) | $ 331 | $ (183) |
Other comprehensive income: | ||||
Adjustment related to pension and other postretirement plans (net of tax of $2, $1, $1 and $3) | 1 | 1 | 1 | 5 |
Net deferred gain from cash flow hedges (net of tax of $1, $-0-, $-0-, $-0-) | 2 | 0 | 1 | 0 |
Total | 3 | 1 | 2 | 5 |
Comprehensive income (loss) | $ 182 | $ (390) | $ 333 | $ (178) |
Comprehensive Income Parentheticals - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Tax benefit (expense) on adjustment related to pension and postretirement plans | $ (2) | $ (1) | $ (1) | $ (3) |
Tax expense on net deferred gain from cash flow hedges | $ 1 | $ 0 | $ 0 | $ 0 |
Balance Sheets Parentheticals - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Cash and cash equivalents | $ 270 | $ 264 |
Bad debt reserve | 18 | 20 |
Accounts receivable, net | 682 | 593 |
Prepaid expenses and other current assets | 154 | 140 |
Regulatory assets | $ 2,756 | $ 3,129 |
Total common stock outstanding (in shares) | 430,681,855 | 430,262,703 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash and cash equivalents | $ 269 | $ 264 |
Accounts receivable, net | 97 | 64 |
Prepaid expenses and other current assets | 38 | 35 |
Regulatory assets | $ 1,999 | $ 2,373 |
Background and Basis of Presentation |
9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Background and Basis of Presentation [Text Block] | Background and Basis of Presentation General. Included in this Form 10-Q are the Interim Condensed Financial Statements of CenterPoint Energy. The Interim Condensed Financial Statements are unaudited, omit certain financial statement disclosures and should be read with the 2015 Form 10-K. Background. CenterPoint Energy, Inc. is a public utility holding company. CenterPoint Energy’s operating subsidiaries own and operate electric transmission and distribution facilities and natural gas distribution facilities, and both CenterPoint Energy and its operating subsidiaries own interests in Enable as described in Note 8. As of September 30, 2016, CenterPoint Energy’s indirect, wholly-owned subsidiaries included:
As of September 30, 2016, CenterPoint Energy had VIEs consisting of Bond Companies, which it consolidates. The consolidated VIEs are wholly-owned, bankruptcy-remote, special purpose entities that were formed specifically for the purpose of securitizing transition and system restoration-related property. Creditors of CenterPoint Energy have no recourse to any assets or revenues of Bond Companies. The bonds issued by these VIEs are payable only from and secured by transition and system restoration property, and the bondholders have no recourse to the general credit of CenterPoint Energy. Basis of Presentation. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. CenterPoint Energy’s Interim Condensed Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the respective periods. Amounts reported in CenterPoint Energy’s Condensed Statements of Consolidated Income are not necessarily indicative of amounts expected for a full-year period due to the effects of, among other things, (a) seasonal fluctuations in demand for energy and energy services, (b) changes in energy commodity prices, (c) timing of maintenance and other expenditures and (d) acquisitions and dispositions of businesses, assets and other interests. For a description of CenterPoint Energy’s reportable business segments, see Note 16. |
New Accounting Pronouncements |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements [Text Block] | New Accounting Pronouncements In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02). ASU 2015-02 changes the analysis that reporting organizations must perform to evaluate whether they should consolidate certain legal entities, such as limited partnerships. The changes include, among others, modification of the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities and elimination of the presumption that a general partner should consolidate a limited partnership. ASU 2015-02 does not amend the related party guidance for situations in which power is shared between two or more entities that hold interests in a VIE. CenterPoint Energy adopted ASU 2015-02 on January 1, 2016, which CenterPoint Energy determined did not have a material impact on its financial position, results of operations, cash flows and disclosures. In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost (ASU 2015-03). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. CenterPoint Energy adopted ASU 2015-03 retrospectively on January 1, 2016, which resulted in a reduction of other long-term assets, indexed debt and total long-term debt on its Condensed Consolidated Balance Sheets. CenterPoint Energy had debt issuance costs, excluding amounts related to credit facility arrangements, of $44 million as of both September 30, 2016 and December 31, 2015. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (ASU 2015-07). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy investments for which fair values are measured at NAV using the practical expedient. Entities will be required to disclose the fair value of investments measured using the NAV practical expedient so that financial statement users can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. CenterPoint Energy adopted ASU 2015-07 on January 1, 2016, which will have an impact on its employee benefit plan disclosures, beginning with its annual report on Form 10-K for the year ended December 31, 2016. This standard did not have an impact on CenterPoint Energy’s financial position, results of operations or cash flows. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments (ASU 2015-16). ASU 2015-16 eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, an acquirer would recognize a measurement-period adjustment during the period in which the amount of the adjustment is determined. CenterPoint Energy adopted ASU 2015-16 on January 1, 2016, which did not have an impact on its financial position, results of operations or cash flows. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). ASU 2016-01 requires equity investments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value and to recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. It does not change the guidance for classifying and measuring investments in debt securities and loans. ASU 2016-01 also changes certain disclosure requirements and other aspects related to recognition and measurement of financial assets and financial liabilities. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. CenterPoint Energy is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02). ASU 2016-02 provides a comprehensive new lease model that requires lessees to recognize assets and liabilities for most leases and would change certain aspects of lessor accounting. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. CenterPoint Energy is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novation on Existing Hedge Accounting Relationships (ASU 2016-05). ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in an existing hedging relationship would not, in and of itself, be considered a termination of the derivative instrument or a change in a critical term of the hedging relationship. This clarification applies to both cash flow and fair value hedging relationships. CenterPoint Energy adopted ASU 2016-05 prospectively in the first quarter of 2016, which did not have an impact on its financial position, results of operations, cash flows and disclosures. In March, April, and May 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (ASU 2016-08), ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing (ASU 2016-10), and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients (ASU 2016-12), respectively. ASU 2016-08, ASU 2016-10, and ASU 2016-12 clarify certain aspects of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which supersedes most current revenue recognition guidance. CenterPoint Energy is currently evaluating the impact that ASU 2016-08, ASU 2016-10, ASU 2016-12, and ASU 2014-09 will have on its financial position, results of operations, cash flows and disclosures and expects to adopt these ASUs on January 1, 2018. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). ASU 2016-09 will change the accounting for certain aspects of share-based payments to employees, including the recognition of income tax effects of vested or settled awards in the income statement, instead of within additional paid-in capital. It will also increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligations. ASU 2016-09 will allow companies to elect between two different methods to account for forfeitures of share-based payments. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. CenterPoint Energy does not expect the adoption of this standard to have a material impact on its financial position, results of operations, cash flows and disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). ASU 2016-13 requires a new model called the CECL model to estimate credit losses for financial assets subject to credit losses and measured at amortized cost and certain off-balance sheet credit exposures. This includes loans, held-to-maturity debt securities, loan commitments, financial guarantees, and net investments in leases, as well as reinsurance and trade receivables. Upon initial recognition of the exposure, the CECL model requires an entity to estimate the credit losses expected over the life of an exposure based on historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. The update also amends the other-than-temporary impairment model for debt securities classified as available-for-sale. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted beginning after December 15, 2018. CenterPoint Energy is currently assessing the impact that this standard will have on its financial position, results of operations, cash flows and disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230)-Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). ASU 2016-15 provides clarifying guidance on the classification of certain cash receipts and payments in the statement of cash flows and eliminates the variation in practice related to such classifications. ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. CenterPoint Energy is currently assessing the impact that this standard will have on its statement of cash flows. Management believes that other recently issued standards, which are not yet effective, will not have a material impact on CenterPoint Energy’s consolidated financial position, results of operations or cash flows upon adoption. |
Acquisition |
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Acquisition [Text Block] | Acquisition On April 1, 2016, CES, an indirect, wholly-owned subsidiary of CenterPoint Energy, closed the previously announced agreement to acquire the retail energy services business and natural gas wholesale assets of Continuum for a preliminary purchase price of $98 million, including working capital. After working capital adjustments, the final purchase price was $102 million and allocated to identifiable assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The following table summarizes the final purchase price allocation and the fair value amounts recognized for the assets acquired and liabilities assumed related to the acquisition:
The goodwill of $22 million resulting from the acquisition reflects the excess of the purchase price over the fair value of the net identifiable assets acquired. The goodwill recorded as part of the acquisition primarily reflects the value of the complementary operational and geographic footprints, along with the scale, geographic reach and expanded capabilities. Identifiable intangible assets were recorded at estimated fair value as determined by management based on available information, which includes a valuation prepared by an independent third party. The significant assumptions used in arriving at the estimated identifiable intangible asset values included management’s estimates of future cash flows, the discount rate which is based on the weighted average cost of capital for comparable publicly traded guideline companies and projected customer attrition rates. The useful lives for the identifiable intangible assets were determined using methods that approximate the pattern of economic benefit provided by the utilization of the assets. The estimated fair value of the identifiable intangible assets and related useful lives as included in the final purchase price allocation include:
Amortization expense related to the above identifiable intangible assets was $1 million and $2 million for the three and nine months ended September 30, 2016, respectively. Revenues of approximately $170 million and $270 million, respectively, and operating income of approximately $2 million and $2 million, respectively, attributable to the acquisition are included in CenterPoint Energy’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2016. As Continuum was a non-public company that did not prepare interim financial information and the acquisition included the purchase of both businesses and assets, the historical financial information for the businesses and assets acquired was impracticable to obtain. As a result, pro forma results of the acquired businesses and assets are not presented. |
Employee Benefit Plans |
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Employee Benefit Plans [Text Block] | Employee Benefit Plans CenterPoint Energy’s net periodic cost includes the following components relating to pension and postretirement benefits:
CenterPoint Energy’s changes in accumulated comprehensive loss related to defined benefit and postretirement plans are as follows:
CenterPoint Energy expects to contribute a total of approximately $8 million to its pension plans in 2016, of which approximately $2 million and $7 million were contributed during the three and nine months ended September 30, 2016, respectively. CenterPoint Energy expects to contribute a total of approximately $16 million to its postretirement benefit plan in 2016, of which approximately $4 million and $12 million were contributed during the three and nine months ended September 30, 2016, respectively. |
Regulatory Accounting |
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Sep. 30, 2016 | |
Regulatory Assets and Liabilities, Other Disclosures [Abstract] | |
Regulatory Accounting [Text Block] | Regulatory Accounting As of September 30, 2016, Houston Electric has not recognized an allowed equity return of $341 million because such return will be recognized as it is recovered in rates. During the three months ended September 30, 2016 and 2015, Houston Electric recognized approximately $22 million and $16 million, respectively, of the allowed equity return not previously recognized. During the nine months ended September 30, 2016 and 2015, Houston Electric recognized approximately $52 million and $37 million, respectively, of the allowed equity return not previously recognized. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments [Text Block] | Derivative Instruments CenterPoint Energy is exposed to various market risks. These risks arise from transactions entered into in the normal course of business. CenterPoint Energy utilizes derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices, weather and interest rates on its operating results and cash flows. Such derivatives are recognized in CenterPoint Energy’s Condensed Consolidated Balance Sheets at their fair value unless CenterPoint Energy elects the normal purchase and sales exemption for qualified physical transactions. A derivative may be designated as a normal purchase or sale if the intent is to physically receive or deliver the product for use or sale in the normal course of business. CenterPoint Energy has a Risk Oversight Committee composed of corporate and business segment officers that oversees commodity price, weather and credit risk activities, including CenterPoint Energy’s marketing, risk management services and hedging activities. The committee’s duties are to establish CenterPoint Energy’s commodity risk policies, allocate board-approved commercial risk limits, approve the use of new products and commodities, monitor positions and ensure compliance with CenterPoint Energy’s risk management policies, procedures and limits established by CenterPoint Energy’s board of directors. CenterPoint Energy’s policies prohibit the use of leveraged financial instruments. A leveraged financial instrument, for this purpose, is a transaction involving a derivative whose financial impact will be based on an amount other than the notional amount or volume of the instrument.
Derivative Instruments. CenterPoint Energy enters into certain derivative instruments to manage physical commodity price risk and does not engage in proprietary or speculative commodity trading. These financial instruments do not qualify or are not designated as cash flow or fair value hedges. Weather Hedges. CenterPoint Energy has weather normalization or other rate mechanisms that mitigate the impact of weather on NGD in Arkansas, Louisiana, Mississippi, Minnesota and Oklahoma. NGD and electric operations in Texas do not have such mechanisms, although fixed customer charges are historically higher in Texas for NGD compared to CenterPoint Energy’s other jurisdictions. As a result, fluctuations from normal weather may have a positive or negative effect on NGD’s results in Texas and on Houston Electric’s results in its service territory. CenterPoint Energy has historically entered into heating-degree day swaps for certain NGD jurisdictions to mitigate the effect of fluctuations from normal weather on its results of operations and cash flows for the winter heating season, which contained a bilateral dollar cap of $16 million in 2014–2015. However, NGD did not enter into heating-degree day swaps for the 2015–2016 winter season as a result of NGD’s Minnesota division implementing a full decoupling pilot in July 2015. CenterPoint Energy entered into weather hedges for the Houston Electric service territory, which contained bilateral dollar caps of $8 million, $7 million and $9 million for the 2014–2015, 2015–2016 and 2016–2017 winter seasons, respectively. The swaps are based on 10-year normal weather. During both the three months ended September 30, 2016 and 2015, CenterPoint Energy recognized no gains or losses related to these swaps. During the nine months ended September 30, 2016 and 2015, CenterPoint Energy recognized gains of $3 million and losses of $9 million, respectively, related to these swaps. Weather hedge gains and losses are included in revenues in the Condensed Statements of Consolidated Income. Hedging of Interest Expense for Future Debt Issuances. In April 2016, Houston Electric entered into forward interest rate agreements with several counterparties, having an aggregate notional amount of $150 million. These agreements were executed to hedge, in part, volatility in the 5-year U.S. treasury rate by reducing Houston Electric’s exposure to variability in cash flows related to interest payments of Houston Electric’s $300 million issuance of fixed rate debt in May 2016. These forward interest rate agreements were designated as cash flow hedges. The realized gains and losses associated with the agreements were immaterial. In June and July 2016, Houston Electric entered into forward interest rate agreements with several counterparties, having an aggregate notional amount of $300 million. These agreements were executed to hedge, in part, volatility in the 10-year U.S. treasury rate by reducing Houston Electric’s exposure to variability in cash flows related to interest payments of Houston Electric’s $300 million issuance of fixed rate debt in August 2016. These forward interest rate agreements were designated as cash flow hedges. Accordingly, the effective portion of realized gains and losses associated with the agreements, which totaled $1.1 million, is a component of accumulated other comprehensive income and will be amortized over the life of the bonds. The ineffective portion of the gains and losses was recorded in income and was immaterial.
The following tables present information about CenterPoint Energy’s derivative instruments and hedging activities. The first four tables provide a balance sheet overview of CenterPoint Energy’s Derivative Assets and Liabilities as of September 30, 2016 and December 31, 2015, while the last two tables provide a breakdown of the related income statement impacts for the three and nine months ended September 30, 2016 and 2015.
Realized and unrealized gains and losses on natural gas derivatives are recognized in the Condensed Statements of Consolidated Income as revenue for retail sales derivative contracts and as natural gas expense for financial natural gas derivatives and non-retail related physical natural gas derivatives. Realized and unrealized gains and losses on indexed debt securities are recorded as Other Income (Expense) in the Condensed Statements of Consolidated Income.
CenterPoint Energy enters into financial derivative contracts containing material adverse change provisions. These provisions could require CenterPoint Energy to post additional collateral if the S&P or Moody’s credit ratings of CenterPoint Energy, Inc. or its subsidiaries are downgraded. The total fair value of the derivative instruments that contain credit risk contingent features that are in a net liability position as of September 30, 2016 and December 31, 2015 was $2 million and $3 million, respectively. CenterPoint Energy posted no assets as collateral towards derivative instruments that contain credit risk contingent features as of both September 30, 2016 and December 31, 2015. If all derivative contracts (in a net liability position) containing credit risk contingent features were triggered as of both September 30, 2016 and December 31, 2015, $2 million of additional assets would be required to be posted as collateral. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Text Block] | Fair Value Measurements Assets and liabilities that are recorded at fair value in the Condensed Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined below and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are exchange-traded derivatives and equity securities. Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value CenterPoint Energy’s Level 2 assets or liabilities. Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Unobservable inputs reflect CenterPoint Energy’s judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. CenterPoint Energy develops these inputs based on the best information available, including CenterPoint Energy’s own data. A market approach is utilized to value CenterPoint Energy’s Level 3 assets or liabilities. As of September 30, 2016, CenterPoint Energy’s Level 3 assets and liabilities are comprised of physical forward contracts and options. Level 3 physical forward contracts are valued using a discounted cash flow model which includes illiquid forward price curve locations (ranging from $0.77 to $7.90 per one million British thermal units) as an unobservable input. Level 3 options are valued through Black-Scholes (including forward start) option models which include option volatilities (ranging from 0% to 73%) as an unobservable input. CenterPoint Energy’s Level 3 derivative assets and liabilities consist of both long and short positions (forwards and options) and their fair value is sensitive to forward prices and volatilities. If forward prices decrease, CenterPoint Energy’s long forwards lose value whereas its short forwards gain in value. If volatility decreases, CenterPoint Energy’s long options lose value whereas its short options gain in value. CenterPoint Energy determines the appropriate level for each financial asset and liability on a quarterly basis and recognizes transfers between levels at the end of the reporting period. For the nine months ended September 30, 2016, there were no transfers between Level 1 and 2. CenterPoint Energy also recognizes purchases of Level 3 financial assets and liabilities at their fair market value at the end of the reporting period. The following tables present information about CenterPoint Energy’s assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015, and indicate the fair value hierarchy of the valuation techniques utilized by CenterPoint Energy to determine such fair value.
The following table presents additional information about assets or liabilities, including derivatives that are measured at fair value on a recurring basis for which CenterPoint Energy has utilized Level 3 inputs to determine fair value:
Estimated Fair Value of Financial Instruments The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by the market price. These assets and liabilities, which are not measured at fair value in the Condensed Consolidated Balance Sheets but for which the fair value is disclosed, would be classified as Level 1 or Level 2 in the fair value hierarchy.
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Unconsolidated Affiliates |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unconsolidated Affiliates [Text Block] | Unconsolidated Affiliate On May 1, 2013 (the Formation Date) CERC Corp., OGE and ArcLight closed on the formation of Enable. CenterPoint Energy has the ability to significantly influence the operating and financial policies of Enable and, accordingly, accounts for its investment in Enable’s common and subordinated units using the equity method of accounting. CenterPoint Energy’s maximum exposure to loss related to Enable, a VIE in which CenterPoint Energy is not the primary beneficiary, is limited to its equity investment and preferred unit investment as presented in the Condensed Consolidated Balance Sheets as of September 30, 2016, the guarantees discussed in Note 14, and outstanding current accounts receivable from Enable. On February 18, 2016, CenterPoint Energy purchased in a Private Placement an aggregate of 14,520,000 Series A Preferred Units from Enable for a total purchase price of $363 million, which is accounted for as a cost method investment. In connection with the Private Placement, Enable redeemed $363 million of notes owed to a wholly-owned subsidiary of CERC Corp., which bore interest at an annual rate of 2.10% to 2.45%. CenterPoint Energy recorded interest income of $-0- and $2 million during the three months ended September 30, 2016 and 2015, respectively, and $1 million and $6 million during the nine months ended September 30, 2016 and 2015, respectively, and had interest receivable from Enable of $-0- and $4 million as of September 30, 2016 and December 31, 2015, respectively, on its notes receivable. Effective on the Formation Date, CenterPoint Energy and Enable entered into the Transition Agreements. Under the Services Agreement, CenterPoint Energy agreed to provide certain support services to Enable such as accounting, legal, risk management and treasury functions for an initial term, which ended on April 30, 2016. CenterPoint Energy is providing certain services to Enable on a year-to-year basis. Enable may terminate (i) the entire Services Agreement with at least 90 days’ notice prior to the end of any extension term, or (ii) either any service provided under the Services Agreement, or the entire Services Agreement, at any time upon approval by its board of directors and with at least 180 days’ notice. CenterPoint Energy billed Enable for reimbursement of transition services of $1 million and $3 million during the three months ended September 30, 2016 and 2015, respectively, and $6 million and $10 million during the nine months ended September 30, 2016 and 2015, respectively, under the Transition Agreements. Actual transition services costs are recorded net of reimbursements received from Enable. CenterPoint Energy had accounts receivable from Enable of $2 million and $3 million as of September 30, 2016 and December 31, 2015, respectively, for amounts billed for transition services. CenterPoint Energy incurred natural gas expenses, including transportation and storage costs, of $22 million and $23 million during the three months ended September 30, 2016 and 2015, respectively, and $79 million and $87 million during the nine months ended September 30, 2016 and 2015, respectively, for transactions with Enable. CenterPoint Energy had accounts payable to Enable of $8 million and $11 million as of September 30, 2016 and December 31, 2015, respectively, from such transactions. As of September 30, 2016, CenterPoint Energy held an approximate 55.4% limited partner interest in Enable, consisting of 94,151,707 common units and 139,704,916 subordinated units. As of September 30, 2016, CenterPoint Energy and OGE each owned a 50% management interest in the general partner of Enable and a 40% and 60% interest, respectively, in the incentive distribution rights held by the general partner. Additionally, as of September 30, 2016, CenterPoint Energy held 14,520,000 Series A Preferred Units in Enable. CenterPoint Energy evaluates its equity method investments and cost method investments for impairment when factors indicate that a decrease in value of its investment has occurred and the carrying amount of its investment may not be recoverable. An impairment loss, based on the excess of the carrying value over the best estimate of fair value of the investment, is recognized in earnings when an impairment is deemed to be other than temporary. Considerable judgment is used in determining if an impairment loss is other than temporary and the amount of any impairment. As of September 30, 2016, the carrying value of CenterPoint Energy’s equity method investment in Enable was $10.84 per unit, which includes limited partner common and subordinated units, a general partner interest and incentive distribution rights. On September 30, 2016, Enable’s common unit price closed at $15.25. As there were no identified events or changes in circumstances that may have a significant adverse effect on the fair value of CenterPoint Energy’s cost method investment in Enable’s Series A Preferred Units as of September 30, 2016, and the investment’s fair value is not readily determinable, an estimate of the fair value of the cost method investment was not performed. Summarized unaudited consolidated income information for Enable is as follows:
Summarized unaudited consolidated balance sheet information for Enable is as follows:
Distributions Received from Unconsolidated Affiliate:
(1)Represents the period from February 18, 2016 to September 30, 2016. |
Goodwill |
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Goodwill [Text Block] | Goodwill Goodwill by reportable business segment as of December 31, 2015 and changes in the carrying amount of goodwill as of September 30, 2016 are as follows:
(1) See Note 3. (2) Amount presented is net of the accumulated goodwill impairment charge of $252 million. CenterPoint Energy performs its goodwill impairment tests at least annually and evaluates goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. The impairment evaluation for goodwill is performed by using a two-step process. In the first step, the fair value of each reporting unit is compared with the carrying amount of the reporting unit, including goodwill. The estimated fair value of the reporting unit is generally determined on the basis of discounted cash flows. If the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, then a second step must be completed in order to determine the amount of the goodwill impairment that should be recorded. In the second step, the implied fair value of the reporting unit’s goodwill is determined by allocating the reporting unit’s fair value to all of its assets and liabilities other than goodwill (including any unrecognized intangible assets) in a manner similar to a purchase price allocation. The resulting implied fair value of the goodwill that results from the application of this second step is then compared to the carrying amount of the goodwill and an impairment charge is recorded for the difference. CenterPoint Energy performed its annual impairment test in the third quarter of 2016 and determined, based on the results of the first step, that no impairment charge was required for any reportable segment. |
Capital Stock |
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Class of Stock Disclosures [Abstract] | |
Capital Stock [Text Block] | Capital Stock CenterPoint Energy, Inc. has 1,020,000,000 authorized shares of capital stock, comprised of 1,000,000,000 shares of $0.01 par value common stock and 20,000,000 shares of $0.01 par value cumulative preferred stock. As of September 30, 2016, 430,682,021 shares of CenterPoint Energy, Inc. common stock were issued and 430,681,855 shares were outstanding. As of December 31, 2015, 430,262,869 shares of CenterPoint Energy, Inc. common stock were issued and 430,262,703 shares were outstanding. Outstanding common shares exclude 166 treasury shares as of both September 30, 2016 and December 31, 2015. |
Indexed Debt Securities (ZENS) and Securities Related to ZENS |
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Indexed Debt Securities [Text Block] | Indexed Debt Securities (ZENS) and Securities Related to ZENS (a) Investment in Securities Related to ZENS In 1995, CenterPoint Energy sold a cable television subsidiary to TW and received TW securities as partial consideration. A subsidiary of CenterPoint Energy now holds 7.1 million shares of TW Common, 0.9 million shares of Time Common and 0.9 million shares of Charter Common, which are classified as trading securities and are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. Unrealized gains and losses resulting from changes in the market value of the TW Securities are recorded in CenterPoint Energy’s Statements of Consolidated Income. (b) ZENS In September 1999, CenterPoint Energy issued ZENS having an original principal amount of $1 billion of which $828 million remain outstanding at September 30, 2016. Each ZENS note was originally exchangeable at the holder’s option at any time for an amount of cash equal to 95% of the market value of the reference shares of TW Common attributable to such note. The number and identity of the reference shares attributable to each ZENS note are adjusted for certain corporate events. Prior to the merger described below, the reference shares for each ZENS note consisted of 0.5 share of TW Common, 0.125505 share of TWC Common and 0.0625 share of Time Common. On May 26, 2015, Charter announced that it had entered into a definitive merger agreement with TWC. On September 21, 2015, Charter shareholders approved the announced transaction with TWC. Pursuant to the merger agreement, upon closing of the merger, TWC Common would be exchanged for cash and Charter Common and as a result, reference shares for the ZENS would consist of Charter Common, TW Common and Time Common. The merger closed on May 18, 2016. CenterPoint Energy received $100 and 0.4891 shares of Charter Common for each share of TWC Common held, resulting in cash proceeds of $178 million and 872,531 shares of Charter Common. In accordance with the terms of the ZENS, CenterPoint Energy remitted $178 million to ZENS note holders in June 2016, which reduced contingent principal. As a result, CenterPoint Energy recorded the following:
As of September 30, 2016, the reference shares for each ZENS note consisted of 0.5 share of TW Common, 0.0625 share of Time Common and 0.061382 share of Charter Common, and the contingent principal balance was $517 million. On October 22, 2016, AT&T announced that it had entered into a definitive agreement to acquire TW in a stock and cash transaction. Pursuant to the agreement, TW Common would be exchanged for cash and AT&T Common, and as a result, reference shares would consist of Charter Common, Time Common and AT&T Common. AT&T announced that the merger is expected to close by the end of 2017. |
Short-Term Borrowings and Long-term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Borrowings and Long-term Debt [Text Block] | Short-term Borrowings and Long-term Debt
Inventory Financing. NGD has asset management agreements associated with its utility distribution service in Arkansas, north Louisiana and Oklahoma that extend through 2019. Pursuant to the provisions of the agreements, NGD sells natural gas and agrees to repurchase an equivalent amount of natural gas during the winter heating seasons at the same cost, plus a financing charge. These transactions are accounted for as a financing and had an associated principal obligation of $43 million and $40 million as of September 30, 2016 and December 31, 2015, respectively.
Debt Repayments. In May 2016, CERC retired approximately $325 million aggregate principal amount of its 6.15% senior notes at their maturity. The retirement of senior notes was financed by the issuance of commercial paper. Houston Electric General Mortgage Bonds. In May 2016, Houston Electric issued $300 million aggregate principal amount of 1.85% general mortgage bonds due 2021. In August 2016, Houston Electric issued $300 million aggregate principal amount of 2.40% general mortgage bonds due 2026. The proceeds from the issuance of these bonds were used to repay short-term debt and for general corporate purposes. Credit Facilities. On March 4, 2016, CenterPoint Energy announced that it had refinanced its existing $2.1 billion revolving credit facilities, which would have expired in 2019, with new revolving credit facilities totaling an aggregate $2.5 billion. The credit agreements evidencing the new revolving credit facilities provide for five-year senior unsecured revolving credit facilities in amounts of $1.6 billion for CenterPoint Energy, $300 million for Houston Electric and $600 million for CERC Corp. As of September 30, 2016 and December 31, 2015, CenterPoint Energy, Houston Electric and CERC Corp. had the following revolving credit facilities and utilization of such facilities:
CenterPoint Energy’s $1.6 billion revolving credit facility, which is scheduled to terminate on March 3, 2021, can be drawn at LIBOR plus 1.25% based on CenterPoint Energy’s current credit ratings. The revolving credit facility contains a financial covenant which limits CenterPoint Energy’s consolidated debt (with certain exceptions, including but not limited to Securitization Bonds) to an amount not to exceed 65% of CenterPoint Energy’s consolidated capitalization. As of September 30, 2016, CenterPoint Energy’s debt (excluding Securitization Bonds) to capital ratio, as defined in its credit facility agreement, was 55.5%. The financial covenant limit will temporarily increase from 65% 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 twelve-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. Houston Electric’s $300 million revolving credit facility, which is scheduled to terminate on March 3, 2021, can be drawn at LIBOR plus 1.125% based on Houston Electric’s current credit ratings. The revolving credit facility contains a financial covenant which limits Houston Electric’s consolidated debt (with certain exceptions, including but not limited to Securitization Bonds) to an amount not to exceed 65% of Houston Electric’s consolidated capitalization. As of September 30, 2016, Houston Electric’s debt (excluding Securitization Bonds) to capital ratio, as defined in its credit facility agreement, was 51.7%. The financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and Houston Electric certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive twelve-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 Houston Electric delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of Houston Electric’s certification or (iii) the revocation of such certification. CERC Corp.’s $600 million revolving credit facility, which is scheduled to terminate on March 3, 2021, can be drawn at LIBOR plus 1.25% based on CERC Corp.’s current credit ratings. The revolving credit facility contains a financial covenant which limits CERC’s consolidated debt to an amount not to exceed 65% of CERC’s consolidated capitalization. As of September 30, 2016, CERC’s debt to capital ratio, as defined in its credit facility agreement, was 34.7%. CenterPoint Energy, Houston Electric and CERC Corp. were in compliance with all financial covenants as of September 30, 2016. |
Income Taxes |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Income Taxes The effective tax rate reported for the three months ended September 30, 2016 was 35% compared to 38% for the same period in 2015. The effective tax rate reported for the nine months ended September 30, 2016 was 37% compared to 41% for the same period in 2015. The higher effective tax rates for the three and nine months ended September 30, 2015 were primarily due to lower earnings from the impairment of CenterPoint Energy’s investment in Enable. CenterPoint Energy reported no uncertain tax liability as of September 30, 2016 and expects no significant change to the uncertain tax liability over the next twelve months. CenterPoint Energy’s consolidated federal income tax returns have been audited and settled through 2014. CenterPoint Energy is under examination by the IRS for 2015 and 2016. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies [Text Block] | Commitments and Contingencies
Natural gas supply commitments include natural gas contracts related to CenterPoint Energy’s Natural Gas Distribution and Energy Services business segments, which have various quantity requirements and durations, that are not classified as non-trading derivative assets and liabilities in CenterPoint Energy’s Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015 as these contracts meet an exception as “normal purchases contracts” or do not meet the definition of a derivative. Natural gas supply commitments also include natural gas transportation contracts that do not meet the definition of a derivative. As of September 30, 2016, minimum payment obligations for natural gas supply commitments are approximately $132 million for the remaining three months in 2016, $454 million in 2017, $455 million in 2018, $267 million in 2019, $124 million in 2020 and $133 million after 2020.
Legal Matters Gas Market Manipulation Cases. CenterPoint Energy, Houston Electric or their predecessor, Reliant Energy, and certain of their former subsidiaries have been named as defendants in certain lawsuits described below. Under a master separation agreement between CenterPoint Energy and a former subsidiary, RRI, CenterPoint Energy and its subsidiaries are entitled to be indemnified by RRI and its successors for any losses, including certain attorneys’ fees and other costs, arising out of these lawsuits. In May 2009, RRI sold its Texas retail business to a subsidiary of NRG and RRI changed its name to RRI Energy, Inc. In December 2010, Mirant Corporation merged with and became a wholly-owned subsidiary of RRI, and RRI changed its name to GenOn. In December 2012, NRG acquired GenOn through a merger in which GenOn became a wholly-owned subsidiary of NRG. None of the sale of the retail business, the merger with Mirant Corporation, or the acquisition of GenOn by NRG alters RRI’s (now GenOn’s) contractual obligations to indemnify CenterPoint Energy and its subsidiaries, including Houston Electric, for certain liabilities, including their indemnification obligations regarding the gas market manipulation litigation, nor does it affect the terms of existing guarantee arrangements for certain GenOn gas transportation contracts discussed below. A large number of lawsuits were filed against numerous gas market participants in a number of federal and western state courts in connection with the operation of the natural gas markets in 2000–2002. CenterPoint Energy and its affiliates have since been released or dismissed from all such cases. CES, a subsidiary of CERC Corp., was a defendant in a case now pending in federal court in Nevada alleging a conspiracy to inflate Wisconsin natural gas prices in 2000–2002. On May 24, 2016, the district court granted CES’s motion for summary judgment, dismissing CES from the case. That ruling is subject to appeal. CenterPoint Energy and CES intend to continue vigorously defending against the plaintiffs’ claims. CenterPoint Energy does not expect the ultimate outcome of this matter to have a material adverse effect on its financial condition, results of operations or cash flows. Environmental Matters Manufactured Gas Plant Sites. CERC and its predecessors operated MGPs in the past. With respect to certain Minnesota MGP sites, CERC has completed state-ordered remediation and continues state-ordered monitoring and water treatment. As of September 30, 2016, CERC had a recorded liability of $7 million for continued monitoring and any future remediation required by regulators in Minnesota. The estimated range of possible remediation costs for the sites for which CERC believes it may have responsibility was $4 million to $29 million based on remediation continuing for 30 to 50 years. The cost estimates are based on studies of a site or industry average costs for remediation of sites of similar size. The actual remediation costs will depend on the number of sites to be remediated, the participation of other PRPs, if any, and the remediation methods used. In addition to the Minnesota sites, the Environmental Protection Agency and other regulators have investigated MGP sites that were owned or operated by CERC or may have been owned by one of its former affiliates. CenterPoint Energy does not expect the ultimate outcome of these matters to have a material adverse effect on the financial condition, results of operations or cash flows of either CenterPoint Energy or CERC. Asbestos. Some facilities owned by CenterPoint Energy or its predecessors contain or have contained asbestos insulation and other asbestos-containing materials. CenterPoint Energy and its subsidiaries are from time to time named, along with numerous others, as defendants in lawsuits filed by a number of individuals who claim injury due to exposure to asbestos, and CenterPoint Energy anticipates that additional claims may be asserted in the future. Although their ultimate outcome cannot be predicted at this time, CenterPoint Energy does not expect these matters, either individually or in the aggregate, to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows. Other Environmental. From time to time CenterPoint Energy identifies the presence of environmental contaminants during its operations or on property where its predecessor companies have conducted operations. Other such sites involving contaminants may be identified in the future. CenterPoint Energy has and expects to continue to remediate identified sites consistent with its legal obligations. From time to time CenterPoint Energy has received notices from regulatory authorities or others regarding its status as a PRP in connection with sites found to require remediation due to the presence of environmental contaminants. In addition, CenterPoint Energy has been named from time to time as a defendant in litigation related to such sites. Although the ultimate outcome of such matters cannot be predicted at this time, CenterPoint Energy does not expect these matters, either individually or in the aggregate, to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows. Other Proceedings CenterPoint Energy is involved in other legal, environmental, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies regarding matters arising in the ordinary course of business. From time to time, CenterPoint Energy is also a defendant in legal proceedings with respect to claims brought by various plaintiffs against broad groups of participants in the energy industry. Some of these proceedings involve substantial amounts. CenterPoint Energy regularly analyzes current information and, as necessary, provides accruals for probable and reasonably estimable liabilities on the eventual disposition of these matters. CenterPoint Energy does not expect the disposition of these matters to have a material adverse effect on CenterPoint Energy’s financial condition, results of operations or cash flows.
Prior to the distribution of CenterPoint Energy’s ownership in RRI to its shareholders, CERC had guaranteed certain contractual obligations of what became RRI’s trading subsidiary. When the companies separated, RRI agreed to secure CERC against obligations under the guarantees RRI had been unable to extinguish by the time of separation. Pursuant to such agreement, as amended in December 2007, RRI (now GenOn) agreed to provide to CERC cash or letters of credit as security against CERC’s obligations under its remaining guarantees for demand charges under certain gas transportation agreements if and to the extent changes in market conditions expose CERC to a risk of loss on those guarantees based on an annual calculation, with any required collateral to be posted each December. The undiscounted maximum potential payout of the demand charges under these transportation contracts, which will be in effect until 2018, was approximately $15 million as of September 30, 2016. Based on market conditions in the fourth quarter of 2016 at the time the most recent annual calculation was made under the agreement, GenOn was not obligated to post any security. If GenOn should fail to perform the contractual obligations, CERC could have to honor its guarantee and, in such event, any collateral then provided as security may be insufficient to satisfy CERC’s obligations. In 2010, CenterPoint Energy provided a guarantee (the CenterPoint Midstream Guarantee) with respect to the performance of certain obligations of Enable under a long-term gas gathering and treating agreement with an indirect, wholly-owned subsidiary of Royal Dutch Shell plc. Under the terms of the omnibus agreement entered into in connection with the closing of the formation of Enable, Enable and CenterPoint Energy have agreed to use commercially reasonable efforts and cooperate with each other to terminate the CenterPoint Midstream Guarantee and to release CenterPoint Energy from such guarantee. As of September 30, 2016, CenterPoint Energy had guaranteed Enable’s obligations up to an aggregate amount of $50 million under the CenterPoint Midstream Guarantee. CERC Corp. had also provided a guarantee of collection of $1.1 billion of Enable’s senior notes due 2019 and 2024. This guarantee was subordinated to all senior debt of CERC Corp. and was automatically released on May 1, 2016. The fair value of these guarantees is not material. |
Earnings Per Share |
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Earnings Per Share [Text Block] | Earnings Per Share The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per share calculations:
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Reportable Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Business Segments [Text Block] | 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, Energy Services, Midstream Investments and Other Operations. The electric transmission and distribution function 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. Energy Services represents CenterPoint Energy’s non-rate regulated gas sales and services operations. Midstream Investments consists of CenterPoint Energy’s investment in Enable. Other Operations consists primarily of other corporate operations which support all of CenterPoint Energy’s business operations. Financial data for business segments is as follows:
Midstream Investments’ total assets are as follows:
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Subsequent Events |
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Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On October 27, 2016, CenterPoint Energy’s board of directors declared a regular quarterly cash dividend of $0.2575 per share of common stock payable on December 9, 2016, to shareholders of record as of the close of business on November 16, 2016. On October 31, 2016, CES, an indirect, wholly-owned subsidiary of CenterPoint Energy, announced an agreement to acquire Atmos Energy Marketing for approximately $120 million, including estimated working capital of $80 million. The transaction is conditioned upon the receipt of certain third party consents and approvals, including expiration of any Hart-Scott-Rodino waiting period. CenterPoint Energy expects the transaction to close in early 2017. On November 1, 2016, Enable declared a quarterly cash distribution of $0.318 per unit on all of its outstanding common and subordinated units for the quarter ended September 30, 2016. Accordingly, CERC Corp. expects to receive a cash distribution of approximately $74 million from Enable in the fourth quarter of 2016 to be made with respect to CERC Corp.’s investment in common and subordinated units in Enable for the third quarter of 2016. On November 1, 2016, Enable declared a quarterly cash distribution of $0.625 per Series A Preferred Unit for the quarter ended September 30, 2016. Accordingly, CenterPoint Energy expects to receive a cash distribution of approximately $9 million from Enable in the fourth quarter of 2016 to be made with respect to CenterPoint Energy’s investment in Series A Preferred Units of Enable for the third quarter of 2016. |
Acquisition (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the final purchase price allocation and the fair value amounts recognized for the assets acquired and liabilities assumed related to the acquisition:
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Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The estimated fair value of the identifiable intangible assets and related useful lives as included in the final purchase price allocation include:
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Employee Benefit Plans (Tables) |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | CenterPoint Energy’s net periodic cost includes the following components relating to pension and postretirement benefits:
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | CenterPoint Energy’s changes in accumulated comprehensive loss related to defined benefit and postretirement plans are as follows:
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Derivative Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments [Table Text Block] | The following tables present information about CenterPoint Energy’s derivative instruments and hedging activities. The first four tables provide a balance sheet overview of CenterPoint Energy’s Derivative Assets and Liabilities as of September 30, 2016 and December 31, 2015, while the last two tables provide a breakdown of the related income statement impacts for the three and nine months ended September 30, 2016 and 2015.
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Offsetting of Natural Gas Derivative Assets and Liabilities [Table Text Block] |
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Income Statement Impact of Derivative Activity [Table Text Block] | Realized and unrealized gains and losses on natural gas derivatives are recognized in the Condensed Statements of Consolidated Income as revenue for retail sales derivative contracts and as natural gas expense for financial natural gas derivatives and non-retail related physical natural gas derivatives. Realized and unrealized gains and losses on indexed debt securities are recorded as Other Income (Expense) in the Condensed Statements of Consolidated Income.
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value, assets measured on a recurring basis [Table Text Block] | The following tables present information about CenterPoint Energy’s assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015, and indicate the fair value hierarchy of the valuation techniques utilized by CenterPoint Energy to determine such fair value.
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Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs [Table Text Block] | The following table presents additional information about assets or liabilities, including derivatives that are measured at fair value on a recurring basis for which CenterPoint Energy has utilized Level 3 inputs to determine fair value:
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Estimated fair value of financial instruments, debt instruments [Table Text Block] | Estimated Fair Value of Financial Instruments The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by the market price. These assets and liabilities, which are not measured at fair value in the Condensed Consolidated Balance Sheets but for which the fair value is disclosed, would be classified as Level 1 or Level 2 in the fair value hierarchy.
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Unconsolidated Affiliates (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments [Table Text Block] | Summarized unaudited consolidated income information for Enable is as follows:
Summarized unaudited consolidated balance sheet information for Enable is as follows:
Distributions Received from Unconsolidated Affiliate:
(1)Represents the period from February 18, 2016 to September 30, 2016. |
Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | Goodwill by reportable business segment as of December 31, 2015 and changes in the carrying amount of goodwill as of September 30, 2016 are as follows:
(1) See Note 3. (2) Amount presented is net of the accumulated goodwill impairment charge of $252 million. |
Indexed Debt Securities (ZENS) and Securities Related to ZENS (Tables) |
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Schedule of Indexed Debt Securities and Marketable Securities [Table Text Block] | On May 26, 2015, Charter announced that it had entered into a definitive merger agreement with TWC. On September 21, 2015, Charter shareholders approved the announced transaction with TWC. Pursuant to the merger agreement, upon closing of the merger, TWC Common would be exchanged for cash and Charter Common and as a result, reference shares for the ZENS would consist of Charter Common, TW Common and Time Common. The merger closed on May 18, 2016. CenterPoint Energy received $100 and 0.4891 shares of Charter Common for each share of TWC Common held, resulting in cash proceeds of $178 million and 872,531 shares of Charter Common. In accordance with the terms of the ZENS, CenterPoint Energy remitted $178 million to ZENS note holders in June 2016, which reduced contingent principal. As a result, CenterPoint Energy recorded the following:
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Short-Term Borrowings and Long-term Debt Credit Facilities (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | Credit Facilities. On March 4, 2016, CenterPoint Energy announced that it had refinanced its existing $2.1 billion revolving credit facilities, which would have expired in 2019, with new revolving credit facilities totaling an aggregate $2.5 billion. The credit agreements evidencing the new revolving credit facilities provide for five-year senior unsecured revolving credit facilities in amounts of $1.6 billion for CenterPoint Energy, $300 million for Houston Electric and $600 million for CERC Corp. As of September 30, 2016 and December 31, 2015, CenterPoint Energy, Houston Electric and CERC Corp. had the following revolving credit facilities and utilization of such facilities:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per share calculations:
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Reportable Business Segments (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial data for business segments is as follows:
Midstream Investments’ total assets are as follows:
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Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Electric Transmission & Distribution revenues from major customers are as follows:
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Midstream Investments [Table Text Block] | Midstream Investments’ equity earnings (losses) are as follows:
Midstream Investments’ total assets are as follows:
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Background and Basis of Presentation (Details) |
Sep. 30, 2016 |
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Enable Midstream Partners [Member] | |
Equity Method Investment, Ownership Percentage | 55.40% |
New Accounting Pronouncements (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
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Unamortized Debt Issuance Expense | $ 44 | $ 44 |
Employee Benefit Plans (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||||||
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Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Defined Benefit Plan, Change in Accumulated Comprehensive Loss [Roll Forward] | |||||||||||||||
Beginning Balance | $ (65) | $ (81) | $ (65) | $ (85) | |||||||||||
Other comprehensive income (loss) before reclassifications (1) | [1] | 0 | 0 | (4) | 0 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||
Prior service cost (2) | [2] | 1 | 1 | 1 | 1 | ||||||||||
Actuarial losses (2) | [2] | 2 | 1 | 5 | 7 | ||||||||||
Tax expense | (2) | (1) | (1) | (3) | |||||||||||
Net current period other comprehensive income | 1 | 1 | 1 | 5 | |||||||||||
Ending Balance | (64) | (80) | (64) | (80) | |||||||||||
Pension Plans, Defined Benefit [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Service cost | [3] | 10 | 10 | 28 | 30 | ||||||||||
Interest cost | [3] | 23 | 24 | 70 | 70 | ||||||||||
Expected return on plan assets | [3] | (26) | (30) | (76) | (90) | ||||||||||
Amortization of prior service cost (credit) | [3] | 3 | 2 | 7 | 7 | ||||||||||
Amortization of net loss | [3] | 15 | 14 | 47 | 43 | ||||||||||
Settlement cost (2) | [3],[4] | 0 | 1 | 0 | 10 | ||||||||||
Curtailment gain (3) | [3],[5] | 0 | 0 | ||||||||||||
Net periodic cost | [3] | 25 | 21 | 76 | 70 | ||||||||||
Total contributions expected in current year | 8 | ||||||||||||||
Total contributions to the plans during the period | 2 | 7 | |||||||||||||
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||
Service cost | [3] | 1 | 1 | 2 | 2 | ||||||||||
Interest cost | [3] | 4 | 5 | 13 | 15 | ||||||||||
Expected return on plan assets | [3] | (2) | (2) | (5) | (5) | ||||||||||
Amortization of prior service cost (credit) | [3] | (1) | 0 | (2) | (1) | ||||||||||
Amortization of net loss | [3] | 0 | 1 | 0 | 3 | ||||||||||
Settlement cost (2) | [3],[4] | 0 | 0 | 0 | 0 | ||||||||||
Curtailment gain (3) | [3],[5] | (3) | 0 | ||||||||||||
Net periodic cost | [3] | 2 | $ 5 | 5 | $ 14 | ||||||||||
Total contributions expected in current year | 16 | ||||||||||||||
Total contributions to the plans during the period | $ 4 | $ 12 | |||||||||||||
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Regulatory Accounting (Details) - CenterPoint Houston [Member] - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
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Amount of allowed equity return on the true-up balance that has not been recognized | $ 341 | $ 341 | ||
Amount of allowed equity return on the true-up balance that was recognized in the period | $ 22 | $ 16 | $ 52 | $ 37 |
Derivative Instruments Derivative Fair Values (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||
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Sep. 30, 2016
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Sep. 30, 2015
USD ($)
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Sep. 30, 2016
USD ($)
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Sep. 30, 2015
USD ($)
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Dec. 31, 2015
USD ($)
Bcf
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Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative Asset, Fair Value | $ 98,000,000 | $ 98,000,000 | $ 140,000,000 | ||||||||||||||||||||
Indexed debt securities derivative | 616,000,000 | 616,000,000 | 529,000,000 | ||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (54,000,000) | $ 138,000,000 | (222,000,000) | $ 78,000,000 | |||||||||||||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||||||||||||||||
Total fair value of the derivative instruments that contain credit risk contingent features that are in a net liability position | 2,000,000 | 2,000,000 | 3,000,000 | ||||||||||||||||||||
The aggregate fair value of assets already posted as collateral | 0 | 0 | 0 | ||||||||||||||||||||
Credit Risk Contingent Features assets | 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||||||||||||||||
Natural gas derivatives [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 1,080 | 767 | |||||||||||||||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||||||||||||||||
Gross Amounts Recognized | [1] | 44,000,000 | $ 44,000,000 | $ 53,000,000 | |||||||||||||||||||
Gross amounts offset, Net | 6,000,000 | 6,000,000 | 56,000,000 | ||||||||||||||||||||
Net Amount Presented in the Consolidated Balance Sheets | [2] | 50,000,000 | 50,000,000 | 109,000,000 | |||||||||||||||||||
Collateral Netting | 6,000,000 | 6,000,000 | 56,000,000 | ||||||||||||||||||||
Natural gas derivatives [Member] | Gains (Losses) in Revenue [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 31,000,000 | 39,000,000 | 1,000,000 | 88,000,000 | |||||||||||||||||||
Natural gas derivatives [Member] | Gains (Losses) in Expense: Natural Gas [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (13,000,000) | (30,000,000) | 35,000,000 | (72,000,000) | |||||||||||||||||||
Natural gas derivatives [Member] | Current Assets [Member] | |||||||||||||||||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||||||||||||||||
Gross Amounts Recognized | [1] | 70,000,000 | 70,000,000 | 100,000,000 | |||||||||||||||||||
Gross amounts offset | (21,000,000) | (21,000,000) | (11,000,000) | ||||||||||||||||||||
Derivative Asset | [2] | 49,000,000 | 49,000,000 | 89,000,000 | |||||||||||||||||||
Natural gas derivatives [Member] | Other Assets [Member] | |||||||||||||||||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||||||||||||||||
Gross Amounts Recognized | [1] | 28,000,000 | 28,000,000 | 40,000,000 | |||||||||||||||||||
Gross amounts offset | (4,000,000) | (4,000,000) | (4,000,000) | ||||||||||||||||||||
Derivative Asset | [2] | 24,000,000 | 24,000,000 | 36,000,000 | |||||||||||||||||||
Natural gas derivatives [Member] | Current Liabilities [Member] | |||||||||||||||||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||||||||||||||||
Gross Amounts Recognized | [1] | (43,000,000) | (43,000,000) | (62,000,000) | |||||||||||||||||||
Gross amounts offset | 24,000,000 | 24,000,000 | 51,000,000 | ||||||||||||||||||||
Derivative Liability | [2] | (19,000,000) | (19,000,000) | (11,000,000) | |||||||||||||||||||
Natural gas derivatives [Member] | Other Liabilities [Member] | |||||||||||||||||||||||
Derivative, Fair Value, Net [Abstract] | |||||||||||||||||||||||
Gross Amounts Recognized | [1] | (11,000,000) | (11,000,000) | (25,000,000) | |||||||||||||||||||
Gross amounts offset | 7,000,000 | 7,000,000 | 20,000,000 | ||||||||||||||||||||
Derivative Liability | [2] | (4,000,000) | (4,000,000) | (5,000,000) | |||||||||||||||||||
Indexed debt securities derivative | Gains (losses) in Other Income (Expense) [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (72,000,000) | $ 129,000,000 | (258,000,000) | $ 62,000,000 | |||||||||||||||||||
Not Designated as Hedging Instrument [Member] | Natural gas derivatives [Member] | Current Assets [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative Asset, Fair Value | [3] | 51,000,000 | [4],[5] | 51,000,000 | [4],[5] | 90,000,000 | [6],[7] | ||||||||||||||||
Indexed debt securities derivative | [3] | 2,000,000 | [4],[5] | 2,000,000 | [4],[5] | 2,000,000 | [6],[7] | ||||||||||||||||
Not Designated as Hedging Instrument [Member] | Natural gas derivatives [Member] | Other Assets [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative Asset, Fair Value | [3] | 24,000,000 | [4],[5] | 24,000,000 | [4],[5] | 36,000,000 | [6],[7] | ||||||||||||||||
Indexed debt securities derivative | [3] | 0 | [4],[5] | 0 | [4],[5] | 0 | [6],[7] | ||||||||||||||||
Not Designated as Hedging Instrument [Member] | Natural gas derivatives [Member] | Current Liabilities [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative Asset, Fair Value | [3] | 19,000,000 | [4],[5] | 19,000,000 | [4],[5] | 10,000,000 | [6],[7] | ||||||||||||||||
Indexed debt securities derivative | [3] | 41,000,000 | [4],[5] | 41,000,000 | [4],[5] | 60,000,000 | [6],[7] | ||||||||||||||||
Not Designated as Hedging Instrument [Member] | Natural gas derivatives [Member] | Other Liabilities [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative Asset, Fair Value | [3] | 4,000,000 | [4],[5] | 4,000,000 | [4],[5] | 4,000,000 | [6],[7] | ||||||||||||||||
Indexed debt securities derivative | [3] | 11,000,000 | [4],[5] | 11,000,000 | [4],[5] | 25,000,000 | [6],[7] | ||||||||||||||||
Not Designated as Hedging Instrument [Member] | Indexed debt securities derivative | Current Liabilities [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative Asset, Fair Value | 0 | 0 | 0 | ||||||||||||||||||||
Indexed debt securities derivative | $ 562,000,000 | $ 562,000,000 | $ 442,000,000 | ||||||||||||||||||||
Short [Member] | Natural gas derivatives [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 16 | ||||||||||||||||||||||
Long [Member] | Natural gas derivatives [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 112 | ||||||||||||||||||||||
Swap [Member] | Long [Member] | Natural gas derivatives [Member] | |||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | |||||||||||||||||||||||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 128 | 133 | |||||||||||||||||||||
|
Unconsolidated Affiliates Description (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 18, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Preferred units – unconsolidated affiliate | $ 363 | $ 363 | $ 0 | |||
Service Agreement Notice For Termination At Term End, Number of Days | 90 days | |||||
Service Agreement Notice For Termination At Will, Number Of Days | 180 days | |||||
Enable Midstream Partners [Member] | ||||||
Equity Method Investment, Ownership Percentage | 55.40% | 55.40% | ||||
Equity Method Investment, Carrying Value Per Unit | $ 10.84 | $ 10.84 | ||||
Enable Midstream Partners [Member] | ||||||
Share Price | $ 15.25 | $ 15.25 | ||||
Series A Preferred Stock [Member] | Enable Midstream Partners [Member] | ||||||
Purchase of Preferred Units, Price Per Unit | 14,520,000 | |||||
Preferred units – unconsolidated affiliate | $ 363 | $ 363 | ||||
Purchase of Preferred Units, Number of Units Purchased | 14,520,000 | 14,520,000 | ||||
Common Stock [Member] | Enable Midstream Partners [Member] | ||||||
Equity Method Investment, Ownership, Shares | 94,151,707 | 94,151,707 | ||||
Subordinated Units [Member] | Enable Midstream Partners [Member] | ||||||
Equity Method Investment, Ownership, Shares | 139,704,916 | 139,704,916 | ||||
Enable Midstream Partners [Member] | ||||||
Extinguishment of Debt, Amount | $ 363 | |||||
Interest Income (Expense), Net | $ 0 | $ 2 | $ 1 | $ 6 | ||
Interest Receivable | 0 | 0 | 4 | |||
Transitional Service [Member] | Enable Midstream Partners [Member] | ||||||
Reimbursement for Transitional Services | 1 | 3 | 6 | 10 | ||
Transitional Service cost receivable | 2 | 2 | 3 | |||
Natural Gas Expenses [Member] | Enable Midstream Partners [Member] | ||||||
Cost of natural gas purchases, affiliates | 22 | $ 23 | 79 | $ 87 | ||
Due to Affiliate | $ 8 | $ 8 | $ 11 | |||
Enable Midstream Partners [Member] | CERC Corp [Member] | ||||||
Management Rights Ownership Percentage | 50.00% | |||||
Incentive Distribution Right | 40.00% | |||||
Enable Midstream Partners [Member] | OGE [Member] | ||||||
Management Rights Ownership Percentage | 50.00% | |||||
Incentive Distribution Right | 60.00% | |||||
Indebtedness to CERC Corp. [Member] | Enable Midstream Partners [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 2.10% | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.45% |
Unconsolidated Affiliates Financial Data (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||||||||||||
CenterPoint Energy’s equity method investment in Enable | $ 2,535,000,000 | $ 2,535,000,000 | $ 2,594,000,000 | ||||||||||
Enable Midstream Partners [Member] | |||||||||||||
Basis Difference, Amortization Period | 33 years | ||||||||||||
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) [Abstract] | |||||||||||||
Operating revenues | 620,000,000 | $ 646,000,000 | $ 1,658,000,000 | $ 1,852,000,000 | |||||||||
Cost of sales, excluding depreciation and amortization | 268,000,000 | 287,000,000 | 717,000,000 | 856,000,000 | |||||||||
Impairment of goodwill and other long-lived assets | 8,000,000 | 1,105,000,000 | 8,000,000 | 1,105,000,000 | |||||||||
Operating income (loss) | 139,000,000 | (975,000,000) | 299,000,000 | (778,000,000) | |||||||||
Net income (loss) attributable to Enable | 110,000,000 | (985,000,000) | 231,000,000 | (817,000,000) | |||||||||
CenterPoint Energy’s interest | 61,000,000 | (546,000,000) | 128,000,000 | (453,000,000) | |||||||||
Basis difference amortization (1) | [1] | 12,000,000 | 2,000,000 | 36,000,000 | 4,000,000 | ||||||||
Impairment of CenterPoint Energy’s equity method investment in Enable | 0 | (250,000,000) | 0 | (250,000,000) | |||||||||
CenterPoint Energy’s equity in earnings (losses), net (2) | [2] | 73,000,000 | (794,000,000) | 164,000,000 | (699,000,000) | ||||||||
Income (Loss) From Equity Method Investment, Excluding Impairment Charge | 68,000,000 | 163,000,000 | |||||||||||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||||||||||||
Current assets | 408,000,000 | 408,000,000 | 381,000,000 | ||||||||||
Non-current assets | 10,833,000,000 | 10,833,000,000 | 10,845,000,000 | ||||||||||
Current liabilities | 338,000,000 | 338,000,000 | 615,000,000 | ||||||||||
Non-current liabilities | 3,174,000,000 | 3,174,000,000 | 3,080,000,000 | ||||||||||
Non-controlling interest | 11,000,000 | 11,000,000 | 12,000,000 | ||||||||||
Preferred equity | 362,000,000 | 362,000,000 | 0 | ||||||||||
Enable partners’ equity | 7,356,000,000 | 7,356,000,000 | 7,519,000,000 | ||||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||||||||||||
CenterPoint Energy’s ownership interest in Enable partners’ capital | 4,073,000,000 | 4,073,000,000 | 4,163,000,000 | ||||||||||
CenterPoint Energy’s basis difference | (1,538,000,000) | (1,538,000,000) | (1,569,000,000) | ||||||||||
CenterPoint Energy’s equity method investment in Enable | 2,535,000,000 | 2,535,000,000 | $ 2,594,000,000 | ||||||||||
CenterPoint Energy [Member] | Enable Midstream Partners [Member] | |||||||||||||
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) [Abstract] | |||||||||||||
Impairment Charges | 862,000,000 | 862,000,000 | |||||||||||
Common Stock [Member] | Enable Midstream Partners [Member] | |||||||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | 74,000,000 | 74,000,000 | 223,000,000 | 219,000,000 | |||||||||
Preferred Stock [Member] | Enable Midstream Partners [Member] | |||||||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 9,000,000 | $ 0 | $ 13,000,000 | [3] | $ 0 | ||||||||
|
Goodwill (Details) - USD ($) $ in Millions |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
||||||
Goodwill [Line Items] | |||||||
Goodwill, Beginning Balance | $ 840 | ||||||
Goodwill, Acquired During Period | [1] | 22 | |||||
Goodwill, Ending Balance | 862 | ||||||
Natural Gas Distribution [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill, Beginning Balance | 746 | ||||||
Goodwill, Acquired During Period | [1] | 0 | |||||
Goodwill, Ending Balance | 746 | ||||||
Energy Services [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill, Beginning Balance | [2] | 83 | |||||
Goodwill, Acquired During Period | [1] | 22 | |||||
Goodwill, Ending Balance | 105 | ||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 252 | ||||||
Corporate and Other [Member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill, Beginning Balance | 11 | ||||||
Goodwill, Acquired During Period | [1] | 0 | |||||
Goodwill, Ending Balance | $ 11 | ||||||
|
Capital Stock (Details) - $ / shares |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Capital stock shares authorized (in shares) | 1,020,000,000 | |
Common stock shares authorized (in shares) | 1,000,000,000 | |
Common stock shares par value (in dollars per share) | $ 0.01 | |
Cumulative preferred stock shares authorized (in shares) | 20,000,000 | |
Cumulative preferred stock par value (in dollars per share) | $ 0.01 | |
Total common stock issued (in shares) | 430,682,021 | 430,262,869 |
Total common stock outstanding (in shares) | 430,681,855 | 430,262,703 |
Treasury stock (in shares) | 166 | 166 |
Indexed Debt Securities (ZENS) and Securities Related to ZENS (Details) $ / shares in Units, $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2016
USD ($)
shares
|
Sep. 30, 2015
USD ($)
|
May 18, 2016
$ / shares
shares
|
May 17, 2016 |
|
Cash payment to ZENS note holders | $ 178 | $ 32 | ||
Indexed debt – reduction | (40) | |||
Indexed debt securities derivative – reduction | (21) | |||
Loss on indexed debt securities | 117 | |||
Subordinated Debt ZENS [Member] | ||||
Debt Instrument, Face Amount | 1,000 | |||
Long-term Debt, Gross | $ 828 | |||
Subordinated Note Cash Exchangeable Percentage Of Fair Value | 95.00% | |||
Debt Instrument Contingent Principal Amount Outstanding | $ 517 | |||
TW Common [Member] | ||||
Investment Owned, Balance, Shares | shares | 7,100,000 | |||
TW Common [Member] | Subordinated Debt ZENS [Member] | ||||
Number Of Shares Referenced In Exchangeable Subordinated Note | 0.5 | 0.5 | ||
TWC Common [Member] | ||||
Cash received per share of TWC Common held | $ / shares | $ 100 | |||
Fractional Shares Exchanged for each TWC Common Shares Held | shares | 0.4891 | |||
TWC Common [Member] | Subordinated Debt ZENS [Member] | ||||
Number Of Shares Referenced In Exchangeable Subordinated Note | 0.125505 | |||
Time Common [Member] | ||||
Investment Owned, Balance, Shares | shares | 900,000 | |||
Time Common [Member] | Subordinated Debt ZENS [Member] | ||||
Number Of Shares Referenced In Exchangeable Subordinated Note | 0.0625 | 0.0625 | ||
Charter Common [Member] | ||||
Investment Owned, Balance, Shares | shares | 900,000 | |||
Cash Proceeds Received | $ 178 | |||
Total Charter Common Shares Received in Exchange for TWC Common Shares Held | shares | 872,531 | |||
Charter Common [Member] | Subordinated Debt ZENS [Member] | ||||
Number Of Shares Referenced In Exchangeable Subordinated Note | 0.061382 |
Short-Term Borrowings and Long-term Debt (Details) $ in Millions |
9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Aug. 08, 2016
USD ($)
|
May 13, 2016
USD ($)
|
May 01, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|||||||||
Short-term Debt [Line Items] | |||||||||||||
Total short term borrowings | $ 43 | $ 40 | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Total credit facility amount | 2,500 | 2,100 | |||||||||||
CenterPoint Houston [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Total credit facility amount | $ 300 | 300 | |||||||||||
Debt Instrument, Term | 5 years | ||||||||||||
CERC Corp [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Total credit facility amount | $ 600 | 600 | |||||||||||
Debt Instrument, Term | 5 years | ||||||||||||
Parent Company [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Total credit facility amount | $ 1,600 | 1,200 | |||||||||||
Debt Instrument, Term | 5 years | ||||||||||||
Revolving Credit Facility [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | $ 0 | 200 | |||||||||||
Revolving Credit Facility [Member] | CenterPoint Houston [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | 0 | $ 200 | [1] | ||||||||||
Debt, Weighted Average Interest Rate | 1.637% | ||||||||||||
Revolving Credit Facility [Member] | CERC Corp [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | 0 | $ 0 | |||||||||||
Revolving Credit Facility [Member] | Parent Company [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | $ 0 | 0 | |||||||||||
Line of Credit [Member] | CenterPoint Houston [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Percentage on limitation of debt to total capitalization under covenant | 65.00% | ||||||||||||
Ratio of Indebtedness to Net Capital | 0.517 | ||||||||||||
Percentage on limitation of debt to total capitalization under covenant amended | 70.00% | ||||||||||||
System restoration costs threshold for increase in permitted debt to EBITDA covenant ratio | $ 100 | ||||||||||||
Consecutive Period for System Restoration Costs to Exceed $100 million (in months) | 12 | ||||||||||||
Line of Credit [Member] | CenterPoint Houston [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Basis Spread on LIBOR | 1.125% | ||||||||||||
Line of Credit [Member] | CERC Corp [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Percentage on limitation of debt to total capitalization under covenant | 65.00% | ||||||||||||
Ratio of Indebtedness to Net Capital | 0.347 | ||||||||||||
Line of Credit [Member] | CERC Corp [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Basis Spread on LIBOR | 1.25% | ||||||||||||
Line of Credit [Member] | Parent Company [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Percentage on limitation of debt to total capitalization under covenant | 65.00% | ||||||||||||
Ratio of Indebtedness to Net Capital | 0.555 | ||||||||||||
Percentage on limitation of debt to total capitalization under covenant amended | 70.00% | ||||||||||||
System restoration costs threshold for increase in permitted debt to EBITDA covenant ratio | $ 100 | ||||||||||||
Consecutive Period for System Restoration Costs to Exceed $100 million (in months) | 12 | ||||||||||||
Line of Credit [Member] | Parent Company [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Basis Spread on LIBOR | 1.25% | ||||||||||||
Letter of Credit [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | $ 13 | 12 | |||||||||||
Letter of Credit [Member] | CenterPoint Houston [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | 4 | 4 | |||||||||||
Letter of Credit [Member] | CERC Corp [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | 3 | 2 | |||||||||||
Letter of Credit [Member] | Parent Company [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | 6 | 6 | |||||||||||
Commercial Paper [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | 998 | 935 | |||||||||||
Commercial Paper [Member] | CenterPoint Houston [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | 0 | 0 | |||||||||||
Commercial Paper [Member] | CERC Corp [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | [2] | $ 459 | $ 219 | ||||||||||
Debt, Weighted Average Interest Rate | 0.76% | 0.81% | |||||||||||
Commercial Paper [Member] | Parent Company [Member] | |||||||||||||
Line of Credit Facility [Abstract] | |||||||||||||
Long-term Line of Credit | [3] | $ 539 | $ 716 | ||||||||||
Debt, Weighted Average Interest Rate | 0.81% | 0.79% | |||||||||||
Product Financing Arrangement [Member] | |||||||||||||
Short-term Debt [Line Items] | |||||||||||||
Total short term borrowings | $ 43 | $ 40 | |||||||||||
Senior Notes [Member] | CERC Corp [Member] | |||||||||||||
Debt Instruments [Abstract] | |||||||||||||
Debt Instrument, Face Amount | $ 325 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.15% | ||||||||||||
Bonds General Mortgage Due 2026 [Member] | CenterPoint Houston [Member] | |||||||||||||
Debt Instruments [Abstract] | |||||||||||||
Debt Instrument, Face Amount | $ 300 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.40% | ||||||||||||
Bonds General Mortgage Due 2021 [Member] | CenterPoint Houston [Member] | |||||||||||||
Debt Instruments [Abstract] | |||||||||||||
Debt Instrument, Face Amount | $ 300 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.85% | ||||||||||||
|
Income Taxes (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Effective Income Tax Rate Reconciliation, Percent | 35.00% | 38.00% | 37.00% | 41.00% |
Commitments and Contingencies (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
GenOn Demand Charges Transportation Contracts [Member] | CERC Corp [Member] | |
Guarantees | |
Approximate amount of undiscounted maximum obligation under guarantee | $ 15 |
CenterPoint Midstream Guarantees [Member] | |
Guarantees | |
Approximate amount of undiscounted maximum obligation under guarantee | 50 |
Enable Guaranteed Senior Notes [Member] | CERC Corp [Member] | |
Guarantees | |
Approximate amount of undiscounted maximum obligation under guarantee | 1,100 |
Minnesota Service Territory [Member] | CERC Corp [Member] | |
Environmental Matters | |
Liability recorded for remediation of Minnesota sites | 7 |
Minnesota Service Territory [Member] | CERC Corp [Member] | Minimum [Member] | |
Environmental Matters | |
Estimated remediation costs for the Minnesota sites | $ 4 |
Site Contingency, Years to Resolve Contingency | 30 years |
Minnesota Service Territory [Member] | CERC Corp [Member] | Maximum [Member] | |
Environmental Matters | |
Estimated remediation costs for the Minnesota sites | $ 29 |
Site Contingency, Years to Resolve Contingency | 50 years |
Natural Gas Supply Commitments [Member] | |
Natural Gas Supply Commitments | |
2016 | $ 132 |
2017 | 454 |
2018 | 455 |
2019 | 267 |
2020 | 124 |
After 2020 | $ 133 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|||||
Net income (loss) | $ 179 | $ (391) | $ 331 | $ (183) | ||||
Basic weighted average shares outstanding | 430,682,000 | 430,262,000 | 430,581,000 | 430,152,000 | ||||
Plus: Incremental shares from assumed conversions: | ||||||||
Diluted weighted average shares | 433,396,000 | 430,262,000 | 433,295,000 | 430,152,000 | ||||
Basic earnings (loss) per share | ||||||||
Net income (loss) | $ 0.42 | $ (0.91) | $ 0.77 | $ (0.43) | ||||
Diluted earnings (loss) per share | ||||||||
Net income (loss) | $ 0.41 | $ (0.91) | $ 0.76 | $ (0.43) | ||||
Restricted Stock [Member] | ||||||||
Plus: Incremental shares from assumed conversions: | ||||||||
Restricted stock (1) | 2,714,000 | 0 | [1] | 2,714,000 | 0 | [1] | ||
Diluted earnings (loss) per share | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,759,000 | 1,759,000 | ||||||
|
Reportable Business Segments (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | $ 1,889 | $ 1,630 | $ 5,447 | $ 5,595 | ||||||||||
Operating Income | 284 | 265 | 716 | 707 | ||||||||||
Assets | 21,286 | 21,286 | $ 21,290 | |||||||||||
Equity in earnings (losses) of unconsolidated affiliate, net | 73 | (794) | 164 | (699) | ||||||||||
Investment in unconsolidated affiliate | 2,535 | 2,535 | 2,594 | |||||||||||
Electric Transmission and Distribution [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | [1] | 908 | 827 | 2,331 | 2,144 | |||||||||
Operating Income | 257 | 244 | 498 | 498 | ||||||||||
Electric Transmission and Distribution [Member] | Affiliates of NRG Energy, Inc. [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 223 | 222 | 527 | 578 | ||||||||||
Electric Transmission and Distribution [Member] | Affiliates of Energy Future Holdings Corp. [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 71 | 67 | 166 | 170 | ||||||||||
Natural Gas Distribution [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 370 | 353 | 1,672 | 1,958 | ||||||||||
Operating Income | 22 | 11 | 202 | 176 | ||||||||||
Energy Services [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 608 | 446 | 1,433 | 1,482 | ||||||||||
Operating Income | 5 | 7 | 11 | 29 | ||||||||||
Midstream Investments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | [2] | 0 | 0 | 0 | 0 | |||||||||
Operating Income | [2] | 0 | 0 | 0 | 0 | |||||||||
Other Operations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 3 | 4 | 11 | 11 | ||||||||||
Operating Income | 0 | 3 | 5 | 4 | ||||||||||
Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (13) | (12) | (38) | (49) | ||||||||||
Assets | (981) | (981) | (725) | |||||||||||
Intersegment Eliminations [Member] | Electric Transmission and Distribution [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 0 | 0 | 0 | 0 | ||||||||||
Intersegment Eliminations [Member] | Natural Gas Distribution [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (7) | (6) | (21) | (21) | ||||||||||
Intersegment Eliminations [Member] | Energy Services [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | (6) | (6) | (17) | (28) | ||||||||||
Intersegment Eliminations [Member] | Midstream Investments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | [2] | 0 | 0 | 0 | 0 | |||||||||
Intersegment Eliminations [Member] | Other Operations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 0 | 0 | 0 | 0 | ||||||||||
Operating Segments [Member] | Electric Transmission and Distribution [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Assets | 10,090 | 10,090 | 10,028 | |||||||||||
Operating Segments [Member] | Natural Gas Distribution [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Assets | 5,732 | 5,732 | 5,657 | |||||||||||
Operating Segments [Member] | Energy Services [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Assets | 990 | 990 | 857 | |||||||||||
Operating Segments [Member] | Midstream Investments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Assets | [2] | 2,535 | 2,535 | 2,594 | ||||||||||
Operating Segments [Member] | Other Operations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Assets | [3] | 2,920 | 2,920 | 2,879 | ||||||||||
Enable Midstream Partners [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Investment in unconsolidated affiliate | 2,535 | 2,535 | 2,594 | |||||||||||
Income (Loss) From Equity Method Investment, Excluding Impairment Charge | 68 | 163 | ||||||||||||
Enable Midstream Partners [Member] | Midstream Investments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Equity in earnings (losses) of unconsolidated affiliate, net | [4] | 73 | (794) | 164 | (699) | |||||||||
Investment in unconsolidated affiliate | 2,535 | 2,535 | 2,594 | |||||||||||
Pension and Other Postretirement Plans Costs [Member] | Other Operations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Regulatory Assets | $ 775 | $ 775 | $ 814 | |||||||||||
CenterPoint Energy [Member] | Enable Midstream Partners [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Impairment Charges | $ 862 | $ 862 | ||||||||||||
|
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 09, 2016 |
Nov. 16, 2016 |
Nov. 01, 2016 |
Oct. 31, 2016 |
Oct. 27, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Subsequent Event [Line Items] | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.2575 | $ 0.2475 | $ 0.7725 | $ 0.7425 | |||||
Approximate Total Acquisition Costs, Including Estimated Working Capital | $ 102 | $ 0 | |||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends Payable, Date Declared | Oct. 27, 2016 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.2575 | ||||||||
Dividends Payable, Date to be Paid, Day, Month and Year | Dec. 09, 2016 | ||||||||
Dividends Payable, Date of Record, Day, Month and Year | Nov. 16, 2016 | ||||||||
Subsequent Event [Member] | Enable Midstream Partners [Member] | Common Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends Payable, Date Declared | Nov. 01, 2016 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.318 | ||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 74 | ||||||||
Subsequent Event [Member] | Enable Midstream Partners [Member] | Redeemable Preferred Stock [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends Payable, Date Declared | Nov. 01, 2016 | ||||||||
Preferred Stock, Dividends Per Share, Declared | $ 0.625 | ||||||||
Cost Method Investment, Dividends Or Distributions | $ 9 | ||||||||
Atmos Energy Marketing [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Business Acquisition, Date of Acquisition Agreement Announcement | Oct. 31, 2016 | ||||||||
Approximate Total Acquisition Costs, Including Estimated Working Capital | $ 120 | ||||||||
Estimated Working Capital | $ 80 |
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