The following is a list of regulatory assets and liabilities reflected on the Registrants’ Condensed Consolidated Balance Sheets:



	June 30, 2018									December 31, 2017
	CenterPoint Energy			Houston Electric			CERC			CenterPoint Energy			Houston Electric			CERC
Regulatory Assets:	(in millions)
Current regulatory assets (1)	$	55		$	—		$	55		$	130		$	—		$	130
Non-current regulatory assets:
Securitized regulatory assets	1,293			1,293			—			1,590			1,590			—
Unrecognized equity return (2)	(242		)	(242		)	—			(287		)	(287		)	—
Unamortized loss on reacquired debt	72			72			—			75			75			—
Pension and postretirement-related regulatory asset (3)	623			32			18			646			31			20
Hurricane Harvey restoration costs (4)	63			56			7			64			58			6
Regulatory assets related to TCJA (5)	48			33			15			48			33			15
Other long-term regulatory assets (6)	210			77			133			211			70			140
Total non-current regulatory assets	2,067			1,321			173			2,347			1,570			181
Total regulatory assets	2,122			1,321			228			2,477			1,570			311
Regulatory Liabilities:
Current regulatory liabilities (7)	43			6			37			24			22			2
Non-current regulatory liabilities:
Regulatory liabilities related to TCJA (5)	1,389			885			504			1,354			862			492
Estimated removal costs	885			279			606			878			285			593
Other long-term regulatory liabilities	247			101			146			232			116			116
Total non-current regulatory liabilities	2,521			1,265			1,256			2,464			1,263			1,201
Total regulatory liabilities	2,564			1,271			1,293			2,488			1,285			1,203
Total regulatory assets and liabilities, net	$	(442	)	$	50		$	(1,065	)	$	(11	)	$	285		$	(892	)


(1)	Current regulatory assets are included in Prepaid expenses and other current assets in the Registrants’ Condensed Consolidated Balance Sheets.

(2)

The unrecognized equity return will be recognized as it is recovered in rates through 2024. During the three months ended June 30, 2018 and 2017, CenterPoint Energy and Houston Electric recognized approximately $24 million and $10 million, respectively, of the allowed equity return. During the six months ended June 30, 2018 and 2017, CenterPoint Energy and Houston Electric recognized approximately $45 million and $17 million, respectively, of the allowed equity return. The timing of CenterPoint Energy’s and Houston Electric’s recognition of the equity return will vary each period based on amounts actually collected during the period. The actual amounts recognized are adjusted at least annually to correct any over-collections or under-collections during the preceding 12 months.


(3)	Includes a portion of NGD’s actuarially determined pension and other postemployment expense in excess of the amount being recovered through rates that is being deferred for rate making purposes, of which $5 million and $7 million as of June 30, 2018 and December 31, 2017, respectively, were not earning a return.


(4)	The Registrants are not earning a return on Hurricane Harvey restoration costs.


(5)	The EDIT and deferred revenues will be recovered or refunded to customers as required by tax and regulatory authorities.


(6)	Other long-term regulatory assets that are not earning a return were not material as of June 30, 2018 and December 31, 2017.


(7)	Current regulatory liabilities are included in Other current liabilities in the Registrants’ Condensed Consolidated Balance Sheets.