Regulatory Matters

The following is a list of regulatory assets/liabilities reflected on CenterPoint Houston’s Consolidated Balance Sheets as of December 31, 2014 and 2013:



	December 31,
	2014			2013
	(in millions)
Securitized regulatory assets	$	2,738		$	3,179
Unrecognized equity return (1)	(442		)	(508		)
Unamortized loss on reacquired debt	104			111
Pension and postretirement-related regulatory asset (2)	107			90
Other long-term regulatory assets (3)	122			129
Total regulatory assets	2,629			3,001

Estimated removal costs	353			349
Other long-term regulatory liabilities	184			160
Total regulatory liabilities	537			509

Total regulatory assets and liabilities, net	$	2,092		$	2,492

(1)

As of December 31, 2014, CenterPoint Houston has not recognized an allowed equity return of $442 million because such return will be recognized as it is recovered in rates through 2024. During the years ended December 31, 2014, 2013 and 2012, CenterPoint Houston recognized approximately $68 million, $45 million and $47 million, respectively, of the allowed equity return. The timing of CenterPoint Houston’s recognition of the allowed equity return will vary each period based on amounts actually collected during the period. The actual amounts recovered for the allowed equity return are reviewed and adjusted at least annually by the Texas Utility Commission to correct any over-collections or under-collections during the preceding 12 months and to provide for the full and timely recovery of the allowed equity return.


(2)	CenterPoint Houston’s actuarially determined pension and other postemployment expense in excess of the amount being recovered through rates is being deferred for rate making purposes. Deferred pension and other postemployment expenses of $-0- and $5 million as of December 31, 2014 and 2013, respectively, were not earning a return.


(3)	Other regulatory assets that are not earning a return were not material as of December 31, 2014 and 2013. As of December 31, 2013, the amount is presented after the effect of the revisions to the prior period financial statement discussed in Note 2(n).