Related Party Transactions and Major Customers

12 Months Ended

Dec. 31, 2011

Related Party Transactions and Major Customers [Abstract]

Related Party Transactions Disclosure [Text Block]

Related Party Transactions and Major Customers

(a) Related Party Transactions

CenterPoint Houston participates in a money pool through which it can borrow or invest on a short-term basis. Funding needs are aggregated and external borrowing or investing is based on the net cash position. The net funding requirements of the money pool are expected to be met with borrowings under CenterPoint Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper.  CenterPoint Houston had investments in the money pool of $899 million and $1.0 billion at December 31, 2010 and 2011, which are included in accounts and notes receivable-affiliated companies in the Consolidated Balance Sheets.  At December 31, 2011, CenterPoint Houston’s money pool investment bore interest of 0.07%.

At December 31, 2010 and 2011, CenterPoint Houston had a $750 million note receivable from its parent, which bears interest at the prime rate, 3.25% at December 31, 2011.

For each of the years ended December 31, 2009, 2010 and 2011, CenterPoint Houston had net interest income related to affiliate borrowings of $19 million.

CenterPoint Energy provides some corporate services to CenterPoint Houston. The costs of services have been charged directly to CenterPoint Houston using methods that management believes are reasonable. These methods include negotiated usage rates, dedicated asset assignment and proportionate corporate formulas based on operating expenses, assets, gross margin, employees and a composite of assets, gross margin and employees. These charges are not necessarily indicative of what would have been incurred had CenterPoint Houston not been an affiliate. Amounts charged to CenterPoint Houston for these services were $126 million, $132 million and $142 million in 2009, 2010 and 2011, respectively, and are included primarily in operation and maintenance expenses.

(b) Major Customers

During 2009, 2010 and 2011, revenues derived from energy delivery charges provided by CenterPoint Houston to REPs that are affiliates of NRG Energy, Inc. (NRG) totaled $634 million, $583 million and $594 million, respectively.  During 2009, 2010 and 2011, revenues derived from energy delivery charges provided by CenterPoint Houston to REPs that are affiliates of Energy Future Holdings Corp. totaled $182 million, $185 million and $182 million, respectively.