Long-term Debt



	December 31, 2015					December 31, 2014
	Long-Term			Current (1)		Long-Term			Current (1)
	(in millions)
Long-term debt:
Bank Loans	$	200		$	—	$	—		$	—
First mortgage bonds 9.15% due 2021	102			—		102			—
General mortgage bonds 2.25% to 6.95% due 2022 to 2044 (2)	1,912			—		1,912			—
System restoration bonds 3.46% to 4.243% due 2018 to 2022	365			50		415			48
Transition bonds 0.901% to 5.302% due 2017 to 2024	1,918			341		2,259			324
Other	(8		)	—		(8		)	—
Total long-term debt	$	4,489		$	391	$	4,680		$	372


(1)	Includes amounts due or scheduled to be paid within one year of the date noted.


(2)	Debt issued as collateral is excluded from the financial statements because of the contingent nature of the obligation.

Transition and System Restoration Bonds. As of December 31, 2015, CenterPoint Houston had special purpose subsidiaries consisting of transition and system restoration bond companies, which it consolidates. The consolidated special purpose subsidiaries are wholly-owned bankruptcy remote entities that were formed solely for the purpose of purchasing and owning transition or system restoration property through the issuance of transition bonds or system restoration bonds and activities incidental thereto. These transition bonds and system restoration bonds are payable only through the imposition and collection of “transition” or “system restoration” charges, as defined in the Texas Public Utility Regulatory Act, which are irrevocable, non-bypassable charges payable by most of CenterPoint Houston’s retail electric customers in order to provide recovery of authorized qualified costs. CenterPoint Houston has no payment obligations in respect of the transition and system restoration bonds other than to remit the applicable transition or system restoration charges it collects. Each special purpose entity is the sole owner of the right to impose, collect and receive the applicable transition or system restoration charges securing the bonds issued by that entity. Creditors of CenterPoint Energy or CenterPoint Houston have no recourse to any assets or revenues of the transition and system restoration bond companies (including the transition and system restoration charges), and the holders of transition bonds or system restoration bonds have no recourse to the assets or revenues of CenterPoint Energy or CenterPoint Houston.

Revolving Credit Facility. As of December 31, 2015 and 2014, CenterPoint Houston had the following revolving credit facility and utilization of such facility:



December 31, 2015							December 31, 2014
Size of Facility		Loans			Letters of Credit		Size of Facility		Loans		Letters of Credit
(in millions)
$	300	$	200	(1)	$	4	$	300	$	—	$	4


(1)	Weighted average interest rate was 1.637% as of December 31, 2015.

CenterPoint Houston’s $300 million revolving credit facility, which is scheduled to terminate on September 9, 2019, can be drawn at LIBOR plus 1.125% based on CenterPoint Houston’s current credit ratings. The revolving credit facility contains a financial covenant which limits CenterPoint Houston’s consolidated debt (excluding transition and system restoration bonds) to an amount not to exceed 65% of CenterPoint Houston’s consolidated capitalization. CenterPoint Houston was in compliance with all financial covenants as of December 31, 2015. As of December 31, 2015, CenterPoint Houston’s debt (excluding transition and system restoration bonds) to capital ratio, as defined in its credit facility agreement, was 51.7%.

Maturities. CenterPoint Houston has no maturities of long-term debt for 2016 through 2020 other than the maturity of $200 million of bank loans in 2019. CenterPoint Houston’s scheduled payments on transition and system restoration bonds are $391 million in 2016, $411 million in 2017, $434 million in 2018, $458 million in 2019 and $231 million in 2020.

Liens. As of December 31, 2015, CenterPoint Houston’s assets were subject to liens securing approximately $102 million of first mortgage bonds. Sinking or improvement fund and replacement fund requirements on the first mortgage bonds may be satisfied by certification of property additions. Sinking fund and replacement fund requirements for 2015, 2014 and 2013 have been satisfied by certification of property additions. The replacement fund requirement to be satisfied in 2016 is approximately $223 million, and the sinking fund requirement to be satisfied in 2016 is approximately $1.6 million. CenterPoint Houston expects to meet these 2016 obligations by certification of property additions. As of December 31, 2015, CenterPoint Houston’s assets were also subject to liens securing approximately $2.1 billion of general mortgage bonds which are junior to the liens of the first mortgage bonds.