Derivative Instruments (Tables)
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6 Months Ended |
Jun. 30, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] |
The table below summarizes the Registrants’ outstanding interest rate hedging activity: | | | | | | | | | | | | | | | | | | | | June 30, 2019 | | December 31, 2018 | Hedging Classification | | Notional Principal | | | CenterPoint Energy (1) | | Houston Electric | | CenterPoint Energy | | Houston Electric | | | (in millions) | Economic hedge | | $ | 84 |
| | $ | — |
| | $ | — |
| | $ | — |
| Cash flow hedge | | — |
| | — |
| | 450 |
| | 450 |
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(1) Relates to interest rate derivative instruments at SIGECO.
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Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] |
The tables below summarize CenterPoint Energy’s and CERC’s current weather hedge gain (loss) activity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | | 2019 | | 2018 | Texas Operations | | Winter Season | | Bilateral Cap | | CenterPoint Energy | | CERC | | Winter Season | | Bilateral Cap | | CenterPoint Energy | | CERC | | | (in millions) | NGD | | 2018 – 2019 | | $ | 9 |
| | $ | — |
| | $ | — |
| | 2017 – 2018 | | $ | 8 |
| | $ | — |
| | $ | — |
| Electric operations | | 2018 – 2019 | | 8 |
| | — |
| | — |
| | 2017 – 2018 | | 9 |
| | — |
| | — |
| Total (1) | | | | | | $ | — |
|
| $ | — |
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| | | | | $ | — |
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| $ | — |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | 2019 | | 2018 | Texas Operations | | Winter Season | | Bilateral Cap | | CenterPoint Energy | | CERC | | Winter Season | | Bilateral Cap | | CenterPoint Energy | | CERC | | | (in millions) | NGD | | 2018 – 2019 | | $ | 9 |
| | $ | — |
| | $ | — |
| | 2017 – 2018 | | $ | 8 |
| | $ | — |
| | $ | — |
| Electric operations | | 2018 – 2019 | | 8 |
| | 3 |
| | — |
| | 2017 – 2018 | | 9 |
| | (4 | ) | | — |
| Total (1) | | | | | | $ | 3 |
| | $ | — |
| | | | | | $ | (4 | ) | | $ | — |
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(1) Weather hedge gains (losses) are recorded in Revenues in the Condensed Statements of Consolidated Income.
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Fair Value of Derivative Instruments [Table Text Block] |
The following tables present information about derivative instruments and hedging activities. The first three tables provide a balance sheet overview of Derivative Assets and Liabilities, while the last two tables provide a breakdown of the related income statement impacts.
Fair Value of Derivative Instruments and Hedged Items
CenterPoint Energy | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2019 | | December 31, 2018 | | | Balance Sheet Location | | Derivative Assets Fair Value | | Derivative Liabilities Fair Value | | Derivative Assets Fair Value | | Derivative Liabilities Fair Value | | | | | (in millions) | Derivatives designated as cash flow hedges: | | | | | | | | | Interest rate derivatives | | Current Liabilities: Non-trading derivative liabilities | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 24 |
| Derivatives designated as fair value hedges: | | | | | | | | | Natural gas derivatives (1) (2) (3) | | Current Liabilities: Non-trading derivative liabilities | | 11 |
| | — |
| | 1 |
| | 7 |
| Derivatives not designated as hedging instruments: | | | | | | | | | Natural gas derivatives (1) (2) (3) | | Current Assets: Non-trading derivative assets | | 103 |
| | 2 |
| | 103 |
| | 3 |
| Natural gas derivatives (1) (2) (3) | | Other Assets: Non-trading derivative assets | | 44 |
| | — |
| | 38 |
| | — |
| Natural gas derivatives (1) (2) (3) | | Current Liabilities: Non-trading derivative liabilities | | 74 |
| | 148 |
| | 62 |
| | 173 |
| Natural gas derivatives (1) (2) (3) | | Other Liabilities: Non-trading derivative liabilities | | 16 |
| | 41 |
| | 16 |
| | 25 |
| Interest rate derivatives | | Other Liabilities | | — |
| | 8 |
| | — |
| | — |
| Indexed debt securities derivative | | Current Liabilities | | — |
| | 755 |
| | — |
| | 601 |
| Total CenterPoint Energy | | $ | 248 |
| | $ | 954 |
| | $ | 220 |
| | $ | 833 |
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| | (1) | The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 2,186 Bcf or a net 355 Bcf long position and 1,674 Bcf or a net 140 Bcf long position as of June 30, 2019 and December 31, 2018, respectively. Certain natural gas contracts hedge basis risk only and lack a fixed price exposure. |
| | (2) | Natural gas contracts are presented on a net basis in CenterPoint Energy’s 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 CenterPoint Energy’s |
Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities is detailed in the Offsetting of Natural Gas Derivative Assets and Liabilities table below.
| | (3) | Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. |
Houston Electric | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2019 | | December 31, 2018 | | | Balance Sheet Location | | Derivative Assets Fair Value | | Derivative Liabilities Fair Value | | Derivative Assets Fair Value | | Derivative Liabilities Fair Value | | | | | (in millions) | Derivatives designated as cash flow hedges: | | | | | | | | | Interest rate derivatives | | Current Liabilities: Non-trading derivative liabilities | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 24 |
| Total Houston Electric | | $ | — |
| | $ | — |
| | $ | — |
| | $ | 24 |
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CERC | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2019 | | December 31, 2018 | | | Balance Sheet Location | | Derivative Assets Fair Value | | Derivative Liabilities Fair Value | | Derivative Assets Fair Value | | Derivative Liabilities Fair Value | | | | | (in millions) | Derivatives designated as fair value hedges: | | | | | | | | | Natural gas derivatives (1) (2) (3) | | Current Liabilities: Non-trading derivative liabilities | | $ | 11 |
| | $ | — |
| | $ | 1 |
| | $ | 7 |
| Derivatives not designated as hedging instruments: | | | | | | | | | Natural gas derivatives (1) (2) (3) | | Current Assets: Non-trading derivative assets | | 103 |
| | 2 |
| | 103 |
| | 3 |
| Natural gas derivatives (1) (2) (3) | | Other Assets: Non-trading derivative assets | | 44 |
| | — |
| | 38 |
| | — |
| Natural gas derivatives (1) (2) (3) | | Current Liabilities: Non-trading derivative liabilities | | 74 |
| | 142 |
| | 62 |
| | 173 |
| Natural gas derivatives (1) (2) (3) | | Other Liabilities: Non-trading derivative liabilities | | 16 |
| | 30 |
| | 16 |
| | 25 |
| Total CERC | | $ | 248 |
| | $ | 174 |
| | $ | 220 |
| | $ | 208 |
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| | (1) | The fair value shown for natural gas contracts is comprised of derivative gross volumes totaling 2,186 Bcf or a net 355 Bcf long position and 1,674 Bcf or a net 140 Bcf long position as of June 30, 2019 and December 31, 2018, respectively. Certain natural gas contracts hedge basis risk only and lack a fixed price exposure. |
| | (2) | Natural gas contracts are presented on a net basis in CERC’s 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 CERC’s Condensed Consolidated Balance Sheets. The net of total non-trading natural gas derivative assets and liabilities is detailed in the Offsetting of Natural Gas Derivative Assets and Liabilities table below. |
| | (3) | Derivative Assets and Derivative Liabilities include no material amounts related to physical forward transactions with Enable. |
Cumulative Basis Adjustment for Fair Value Hedges (CenterPoint Energy and CERC) | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2019 | | | Balance Sheet Location | | Carrying Amount of Hedged Assets/(Liabilities) | | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item | | | | | CenterPoint Energy | | CERC | | CenterPoint Energy | | CERC | | | | | (in millions) | Hedged items in fair value hedge relationship: | | | | | | | | | Natural gas inventory | | Current Assets: Natural gas inventory | | $ | 48 |
| | $ | 48 |
| | $ | (9 | ) | | $ | (9 | ) | Total | | $ | 48 |
| | $ | 48 |
| | $ | (9 | ) | | $ | (9 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | December 31, 2018 | | | Balance Sheet Location | | Carrying Amount of Hedged Assets/(Liabilities) | | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Item | | | | | CenterPoint Energy | | CERC | | CenterPoint Energy | | CERC | | | | | (in millions) | Hedged items in fair value hedge relationship: | | | | | | | | | Natural gas inventory | | Current Assets: Natural gas inventory | | $ | 57 |
| | $ | 57 |
| | $ | 1 |
| | $ | 1 |
| Total | | $ | 57 |
| | $ | 57 |
| | $ | 1 |
| | $ | 1 |
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Offsetting of Natural Gas Derivative Assets and Liabilities [Table Text Block] |
Offsetting of Natural Gas Derivative Assets and Liabilities (CenterPoint Energy and CERC)
CenterPoint Energy | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2019 | | December 31, 2018 | | | Gross Amounts Recognized (1) | | Gross Amounts Offset in the Consolidated Balance Sheets | | Net Amount Presented in the Consolidated Balance Sheets (2) | | 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 | | $ | 188 |
| | $ | (87 | ) | | $ | 101 |
| | $ | 166 |
| | $ | (66 | ) | | $ | 100 |
| Other Assets: Non-trading derivative assets | | 60 |
| | (16 | ) | | 44 |
| | 54 |
| | (16 | ) | | 38 |
| Current Liabilities: Non-trading derivative liabilities | | (149 | ) | | 116 |
| | (33 | ) | | (183 | ) | | 81 |
| | (102 | ) | Other Liabilities: Non-trading derivative liabilities | | (41 | ) | | 23 |
| | (18 | ) | | (25 | ) | | 20 |
| | (5 | ) | Total CenterPoint Energy | | $ | 58 |
| | $ | 36 |
| | $ | 94 |
| | $ | 12 |
| | $ | 19 |
| | $ | 31 |
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CERC | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2019 | | December 31, 2018 | | | Gross Amounts Recognized (1) | | Gross Amounts Offset in the Consolidated Balance Sheets | | Net Amount Presented in the Consolidated Balance Sheets (2) | | 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 | | $ | 188 |
| | $ | (87 | ) | | $ | 101 |
| | $ | 166 |
| | $ | (66 | ) | | $ | 100 |
| Other Assets: Non-trading derivative assets | | 60 |
| | (16 | ) | | 44 |
| | 54 |
| | (16 | ) | | 38 |
| Current Liabilities: Non-trading derivative liabilities | | (144 | ) | | 116 |
| | (28 | ) | | (183 | ) | | 81 |
| | (102 | ) | Other Liabilities: Non-trading derivative liabilities | | (30 | ) | | 23 |
| | (7 | ) | | (25 | ) | | 20 |
| | (5 | ) | Total CERC | | $ | 74 |
| | $ | 36 |
| | $ | 110 |
| | $ | 12 |
| | $ | 19 |
| | $ | 31 |
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| | (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 Registrant’s respective 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. |
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Income Statement Impact of Derivative Activity [Table Text Block] |
Income Statement Impact of Hedge Accounting Activity (CenterPoint Energy and CERC)
| | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | | 2019 | | 2018 | | | Location and Amount of Gain (Loss) recognized in Income on Hedging Relationship (1) | | | Non-utility cost of revenues, including natural gas | | | CenterPoint Energy | | CERC | | CenterPoint Energy | | CERC | | | (in millions) | Total amounts presented in the statements of income in which the effects of hedges are recorded | | $ | 910 |
| | $ | 769 |
| | $ | 790 |
| | $ | 790 |
| Gain (loss) on fair value hedging relationships: | | | | | | | | | Commodity contracts: | | | | | | | | | Hedged items - Natural gas inventory | | (4 | ) | | (4 | ) | | (12 | ) | | (12 | ) | Derivatives designated as hedging instruments | | 4 |
| | 4 |
| | 12 |
| | 12 |
| Amounts excluded from effectiveness testing recognized in earnings immediately | | (65 | ) | | (65 | ) | | 69 |
| | 69 |
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| | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | 2019 | | 2018 | | | Location and Amount of Gain (Loss) recognized in Income on Hedging Relationship (1) | | | Non-utility cost of revenues, including natural gas | | | CenterPoint Energy | | CERC | | CenterPoint Energy | | CERC | | | (in millions) | Total amounts presented in the statements of income in which the effects of hedges are recorded | | $ | 2,161 |
| | $ | 1,940 |
| | $ | 2,063 |
| | $ | 2,063 |
| Gain (loss) on fair value hedging relationships: | | | | | | | | | Commodity contracts: | | | | | | | | | Hedged items - Natural gas inventory | | (10 | ) | | (10 | ) | | (14 | ) | | (14 | ) | Derivatives designated as hedging instruments | | 10 |
| | 10 |
| | 14 |
| | 14 |
| Amounts excluded from effectiveness testing recognized in earnings immediately | | (79 | ) | | (79 | ) | | (2 | ) | | (2 | ) |
| | (1) | Income statement impact associated with cash flow hedge activity is related to gains and losses reclassified from Accumulated other comprehensive income into income. Amounts are immaterial for each Registrant in the three and six months ended June 30, 2019 and 2018, respectively. |
CenterPoint Energy | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | Income Statement Location | | 2019 | | 2018 | | 2019 | | 2018 | | | | | (in millions) | Effects of derivatives not designated as hedging instruments on the income statement: | | | | | | | | | Commodity contracts | | Gains (losses) in Non-utility revenues | | $ | 86 |
| | $ | 11 |
| | $ | 90 |
| | $ | 68 |
| Indexed debt securities derivative | | Loss on indexed debt securities | | (68 | ) | | (254 | ) | | (154 | ) | | (272 | ) | Total CenterPoint Energy | | $ | 18 |
| | $ | (243 | ) | | $ | (64 | ) | | $ | (204 | ) |
CERC | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | Income Statement Location | | 2019 | | 2018 | | 2019 | | 2018 | | | | | (in millions) | Effects of derivatives not designated as hedging instruments on the income statement: | | | | | | | | | Commodity contracts | | Gains (losses) in Non-utility revenues | | $ | 86 |
| | $ | 11 |
| | $ | 90 |
| | $ | 68 |
| Total CERC | | $ | 86 |
| | $ | 11 |
| | $ | 90 |
| | $ | 68 |
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Disclosure of Credit Derivatives [Table Text Block] |
CenterPoint Energy and CERC enter into financial derivative contracts containing material adverse change provisions. These provisions could require CenterPoint Energy or CERC to post additional collateral if the S&P or Moody’s credit ratings of CenterPoint Energy, Inc. or its subsidiaries, including CERC Corp., are downgraded. | | | | | | | | | | | | | | | | | | June 30, 2019 | | December 31, 2018 | | CenterPoint Energy | | CERC | | CenterPoint Energy | | CERC | | (in millions) | Aggregate fair value of derivatives containing material adverse change provisions in a net liability position | $ | 1 |
| | $ | 1 |
| | $ | 1 |
| | $ | 1 |
| Fair value of collateral already posted | — |
| | — |
| | — |
| | — |
| Additional collateral required to be posted if credit risk contingent features triggered | 1 |
| | 1 |
| | — |
| | — |
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