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Employee Benefit Plans
 9 Months Ended
Sep. 30, 2017
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans [Text Block]
Employee Benefit Plans

Houston Electric’s employees participate in CenterPoint Energy’s postretirement benefit plan. Houston Electric’s net periodic cost includes the following components relating to postretirement benefits:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
(in millions)
Service cost
 
$
—

 
$
—

 
$
—

 
$
1

Interest cost
 
3

 
2

 
7

 
8

Expected return on plan assets
 
(1
)
 
(1
)
 
(3
)
 
(4
)
Amortization of prior service credit
 
(2
)
 
(1
)
 
(4
)
 
(2
)
Curtailment gain (1)
 
—

 
—

 
—

 
(3
)
Net periodic cost (2)
 
$
—

 
$
—

 
$
—

 
$
—



(1)
A curtailment gain or loss is required when the expected future services of a significant number of current employees are reduced or eliminated for the accrual of benefits. In May 2016, Houston Electric entered into a renegotiated collective bargaining agreement with the IBEW Local Union 66 that provides that for Houston Electric union employees covered under the agreement who retire on or after January 1, 2017, retiree medical and prescription drug coverage will be provided exclusively through the NECA/IBEW Family Medical Care Plan in exchange for the payment of monthly premiums as determined under the agreement. As a result, the accrued postretirement benefits related to such future Houston Electric union retirees were eliminated. In 2016, Houston Electric recognized a curtailment gain of $3 million as an accelerated recognition of the prior service credit that would otherwise be recognized in future periods.

(2)
Net periodic cost in this table is before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes.  

Houston Electric expects to contribute approximately $9 million to its postretirement benefit plan in 2017, of which approximately $2 million and $7 million were contributed during the three and nine months ended September 30, 2017, respectively.