Property, Plant and Equipment

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

(a) Property, Plant and Equipment

Property, plant and equipment includes the following:



	Weighted Average Useful	December 31,
	Lives (Years)	2014		2013
		(in millions)
Transmission	41	$	2,057	$	1,926
Distribution	30	6,170		5,848
Other	15	1,166		967
Total		9,393		8,741
Accumulated depreciation		3,050		2,907
Property, plant and equipment, net		$	6,343	$	5,834

(b) Depreciation and Amortization

The following table presents depreciation and amortization expense for 2014, 2013 and 2012:



	Year Ended December 31,
	2014		2013		2012
	(in millions)
Depreciation expense	$	295	$	280	$	265
Amortization of securitized regulatory assets	441		383		442
Other amortization	32		22		22
Total depreciation and amortization	$	768	$	685	$	729

A reconciliation of the changes in the asset retirement obligation (ARO) liability is as follows (in millions):



	December 31,
	2014		2013
Beginning balance	$	33	$	29
Accretion expense	1		1
Revisions in estimates of cash flows	2		3
Ending balance	$	36	$	33

CenterPoint Houston recorded asset retirement obligations associated with the removal of asbestos and asbestos-containing material in its buildings, including substation building structures. CenterPoint Houston also recorded asset retirement obligations relating to treated wood poles for electric distribution, distribution transformers containing PCB (also known as Polychlorinated Biphenyl), and underground fuel storage tanks. The estimates of future liabilities were developed using historical information, and where available, quoted prices from outside contractors.

The increase of $2 million in the ARO from the revision of estimate in 2014 is primarily attributable to an increase in the expected future cash flows for asbestos remediation. The increase of $3 million in the ARO from the revision of estimate in 2013 is primarily attributable to an increase in disposal costs. There were no material additions or settlements during the years ended December 31, 2014 and 2013.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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