Restatement (Notes)

9 Months Ended

Sep. 30, 2015

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

Restatement of Condensed Statement of Consolidated Cash Flows

As disclosed in Note 6, CenterPoint Houston participates in a centralized cash management arrangement or money pool with affiliates. Investments in the money pool are included in the condensed consolidated balance sheets as accounts and notes receivable–affiliated companies, while borrowings are included in accounts and notes payable–affiliated companies. Under generally accepted accounting principles, receivables from an affiliate in a centralized cash management arrangement such as the money pool are considered loans, and corresponding changes should be classified in cash flows from investing activities in the statements of consolidated cash flows, while payables are considered borrowings and should be classified in cash flows from financing activities. Subsequent to the issuance of CenterPoint Houston’s consolidated financial statements for the three and nine months ended September 30, 2015, CenterPoint Houston determined that borrowings from the money pool were incorrectly classified in its condensed statement of consolidated cash flows, resulting in an overstatement of accounts receivable/payable–affiliated companies and net cash provided by operating activities by approximately $120 million, an understatement of increase in notes payable–affiliated companies by approximately $120 million and an overstatement of net cash used in financing activities by approximately $120 million. As a result, the accompanying condensed statement of consolidated cash flows for the nine months ended September 30, 2015 has been restated from the amounts previously reported to reflect correct cash flow classification of borrowings from the money pool. There was no effect on CenterPoint Houston’s previously reported statements of consolidated income, consolidated balance sheets, and statements of consolidated member’s equity for the three and nine months ended September 30, 2015.

A summary of the significant effects of the restatement is as follows:

	Nine Months Ended September 30, 2015
	As Restated			As Previously Reported
	(in millions)
Condensed Statements of Consolidated Cash Flows:
Cash Flows from Operating Activities:
Accounts receivable/payable–affiliated companies	$	(23	)	$	97
Net cash provided by operating activities	687			807
Cash Flows from Financing Activities:
Increase in notes payable–affiliated companies	120			—
Net cash used in financing activities	(190		)	(310		)