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Reportable Segments
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Reportable Segments [Text Block] Reportable Segments

The Registrants’ determination of reportable segments considers the strategic operating units under which the Registrants manage sales, allocate resources and assess performance of various products and services to wholesale or retail customers in differing regulatory environments. As of January 1, 2020, the Registrants’ CODM views net income as the measure of profit or loss for the reportable segments rather than the previous measure of operating income. Certain prior year amounts have been reclassified to conform to the current year presentation.

As of December 31, 2019, reportable segments in continuing operations by Registrant are as follows:
Registrants
 
Houston Electric T&D
 
Indiana Electric Integrated
 
Natural Gas Distribution
 
Midstream Investments
CenterPoint Energy
 
X
 
X
 
X
 
X
Houston Electric
 
X
 
 
 
 
 
 
CERC
 
 
 
 
 
X
 
 

•
CenterPoint Energy’s and Houston Electric’s Houston Electric T&D reportable segment consists of electric transmission and distribution services in the Texas Gulf Coast area.

•
CenterPoint Energy’s Indiana Electric Integrated reportable segment consists of electric transmission and distribution services primarily to southwestern Indiana and includes power generation and wholesale power operations.

•
CenterPoint Energy’s Natural Gas Distribution reportable segment consists of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas; (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP, formerly included in the Energy Services reportable segment; and (iii) temporary delivery of LNG and CNG throughout the contiguous 48 states through MES, formerly included in the Energy Services reportable segment.

•
CERC’s Natural Gas Distribution reportable segment consists of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas; (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP, formerly included in the Energy Services reportable segment; and (iii) temporary delivery of LNG and CNG throughout the contiguous 48 states through MES, formerly included in the Energy Services reportable segment.

•
CenterPoint Energy’s Midstream Investments reportable segment consists of the equity investment in Enable (excluding the Enable Series A Preferred Units).

•
CenterPoint Energy’s Corporate and Other consists of energy performance contracting and sustainable infrastructure services through ESG and other corporate operations which support all of the business operations of CenterPoint Energy.

•
CERC’s Corporate and Other consists primarily of corporate operations which support all of the business operations of CERC.

Discontinued Operations

On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to
sell the Infrastructure Services Disposal Group, which consists of underground pipeline construction and repair services. Accordingly, the previously reported Infrastructure Services reportable segment has been eliminated. The transaction closed on April 9, 2020. For further information, see Note 4.

Additionally, on February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group, which consists of substantially all of the businesses within the Energy Services reportable segment. Accordingly, the previously reported Energy Services reportable segment has been eliminated. The transaction is expected to close in the second quarter of 2020. For further information, see Note 4.

Expenditures for long-lived assets include property, plant and equipment. Intersegment sales are eliminated in consolidation, except as described in Note 2(b).

Recast financial data for reportable segments and products and services are as follows:

CenterPoint Energy
 
Revenues
from
External
Customers
 
Equity in Earnings of Unconsolidated Affiliates
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
  
Net Income (Loss)
 
(in millions)
For the year ended December 31, 2019:
 
 
 
 
 
 
 
 
 
 
 
  
 
Houston Electric T&D (3)
$
2,996

 
$
—

 
$
648

 
$
22

(1)
$
(164
)
(2)
$
80

 
$
362

Indiana Electric Integrated
523

 
—

 
91

 
—

 
(22
)
 
16

 
57

Natural Gas Distribution
3,745

 
—

 
420

 
7

 
(103
)
 
50

 
261

Midstream Investments
—

 
229

 
—

 
8

 
(53
)
 
53

 
131

Corporate and Other
300

 
1

 
66

 
178

 
(384
)
 
(107
)
 
(129
)
Eliminations
—

 
—

 
—

 
(198
)
 
198

 
—

 
—

Continuing Operations
$
7,564

 
$
230

 
$
1,225

 
$
17

 
$
(528
)
 
$
92

 
682

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
 
 
109

Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
$
791

For the year ended December 31, 2018:
 

 
 
 
 

 
 

 
 
 
 

 
 

Houston Electric T&D (3)
$
3,232

 
$
—

 
$
917

 
$
1

(1)
$
(138
)
(2)
$
89

 
$
334

Natural Gas Distribution
3,030

 
—

 
280

 
5

 
(66
)
 
37

 
170

Midstream Investments
—

 
307

 
—

 
—

 
(10
)
 
73

 
224

Corporate and Other
15

 
—

 
33

 
115

 
(244
)
 
(44
)
 
(332
)
Eliminations
—

 
—

 
—

 
(97
)
 
97

 
—

 


Continuing Operations
$
6,277

 
$
307

 
$
1,230

 
$
24

 
$
(361
)
 
$
155

 
396

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
 
 
(28
)
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
$
368

For the year ended December 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston Electric T&D (3)
$
2,997

 
$
—

 
$
724

 
$
1

(1)
$
(128
)
(2)
$
(7
)
 
$
429

Natural Gas Distribution
2,688

 
—

 
263

 
5

 
(70
)
 
103

 
167

Midstream Investments
—

 
265

 
—

 
—

 
—

 
104

 
161

Corporate and Other
14

 
—

 
33

 
90

 
(211
)
 
(978
)
 
951

Eliminations
—

 
—

 
—

 
(96
)
 
96

 
—

 
—

Continuing Operations
$
5,699

 
$
265

 
$
1,020

 
$
—

 
$
(313
)
 
$
(778
)
  
$
1,708

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
 
 
84

Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
$
1,792


(1)
Excludes interest income from Securitization Bonds of $5 million, $4 million and $2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

(2)
Excludes interest expense on Securitization Bonds of $39 million, $59 million and $77 million for the years ended December 31, 2019, 2018 and 2017, respectively.

 
Total Assets
 
Expenditures for Long-lived Assets
 
December 31,
 
December 31,
 
2019
  
2018
 
2017
 
2019
 
2018
  
2017
 
(in millions)
Houston Electric T&D
$
11,264

 
$
10,509

 
$
10,292

 
$
1,033

 
$
952

 
$
924

Indiana Electric Integrated
3,168

 
—

 
—

 
183

 
—

 
—

Natural Gas Distribution
14,105

  
7,137

 
6,771

 
1,098

 
638

 
523

Midstream Investments
2,473

 
2,482

 
2,472

 
—

 
—

 
—

Corporate and Other, net of eliminations (4)
2,555

  
5,856

 
2,275

 
194

 
110

 
36

Continuing Operations
33,565

  
25,984

 
21,810

 
2,508

 
1,700

 
1,483

Assets Held for Sale/Discontinued Operations
1,964

 
1,109

 
972

 
79

 
20

 
11

Consolidated
$
35,529

 
$
27,093

 
$
22,782

 
$
2,587

 
$
1,720

 
$
1,494



(3)
CenterPoint Energy’s Houston Electric T&D’s revenues from major customers are as follows:
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in millions)
Affiliates of NRG
 
$
727

 
$
705

 
$
713

Affiliates of Vistra Energy Corp.
 
263

 
251

 
229



(4)
Total assets included pension and other postemployment-related regulatory assets of $584 million, $665 million and $600 million as of December 31, 2019, 2018 and 2017, respectively. Additionally, total assets as of December 31, 2018 included $3.9 billion of temporary investments included in Cash and cash equivalents on CenterPoint Energy’s Consolidated Balance Sheets.

Houston Electric

Houston Electric consists of a single reportable segment; therefore, a tabular reportable segment presentation has not been
included. Houston Electric’s revenues from major external customers are as follows:

 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in millions)
Affiliates of NRG
 
$
727

 
$
705

 
$
713

Affiliates of Vistra Energy Corp.
 
263

 
251

 
229


CERC

 
Revenues
from
External
Customers
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
  
Net Income (Loss)
 
(in millions)
For the year ended December 31, 2019:
 
 
 
 
 
 
 
 
 
  
 
Natural Gas Distribution
$
3,013

 
$
293

 
$
6

 
$
(75
)
 
$
45

 
$
199

Corporate and Other
5

 
—

 
98

 
(140
)
 
(48
)
 
(10
)
Eliminations
—

 
—

 
(99
)
 
99

 
—

 
—

Continuing Operations
$
3,018

 
$
293

 
$
5

 
$
(116
)
 
$
(3
)
 
189

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
23

Consolidated
 
 
 
 
 
 
 
 
 
 
$
212

For the year ended December 31, 2018:
 

 
 

 
 

 
 
 
 

 
 

Natural Gas Distribution
$
3,030

 
$
280

 
$
5

 
$
(66
)
 
$
37

 
$
170

Corporate and Other
1

 
—

 
80

 
(140
)
 
(6
)
 
(72
)
Eliminations
—

 
—

 
(84
)
 
84

 
—

 
—

Continuing Operations
$
3,031

 
$
280

 
$
1

 
$
(122
)
 
$
31

 
98

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
110

Consolidated
 
 
 
 
 
 
 
 
 
 
$
208

For the year ended December 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Distribution
$
2,688

 
$
263

 
$
5

 
$
(70
)
 
$
103

 
$
167

Corporate and Other
—

 
—

 
89

 
(147
)
 
(417
)
 
333

Eliminations
—

 
—

 
(94
)
 
94

 
—

 
—

Continuing Operations
$
2,688

 
$
263

 
$
—

 
$
(123
)
 
$
(314
)
  
500

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
245

Consolidated
 
 
 
 
 
 
 
 
 
 
$
745




 
Total Assets
 
Expenditures for Long-lived Assets
 
December 31,
 
December 31,
 
2019
  
2018
 
2017 (1)
 
2019
 
2018
  
2017
 
(in millions)
Natural Gas Distribution
$
7,698

  
$
7,131

 
$
6,763

 
$
773

 
$
638

 
$
523

Corporate and Other, net of eliminations
(90
)
  
57

 
(49
)
 
—

 
—

 
—

Continuing Operations
7,608

  
7,188

 
6,714

 
773

 
638

 
523

Assets Held for Sale
904

 
1,109

 
3,444

 
12

 
20

 
11

Consolidated
$
8,512

 
$
8,297

 
$
10,158

 
$
785

 
$
658

 
$
534


(1)
Assets Held for Sale for 2017 includes the $2,472 million investment in Enable prior to the Internal Spin. See Note 4.
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
Revenues by Products and Services:
 
CenterPoint Energy
 
Houston Electric
 
CERC
 
CenterPoint Energy
 
Houston Electric
 
CERC
 
CenterPoint Energy
 
Houston Electric
 
CERC
 
 
(in millions)
Electric delivery
 
$
3,019

 
$
2,990

 
$
—

 
$
3,232

 
$
3,234

 
$
—

 
$
2,997

 
$
2,998

 
$
—

Retail electric sales
 
486

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Wholesale electric sales
 
14

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Retail gas sales
 
3,563

 
—

 
2,831

 
2,857

 
—

 
2,857

 
2,530

 
—

 
2,530

Wholesale gas sales
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Gas transportation and processing
 
33

 
—

 
33

 
32

 
—

 
32

 
29

 
—

 
29

Infrastructure services
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Energy products and services
 
449

 
—

 
154

 
156

 
—

 
142

 
143

 
—

 
129

Total
 
$
7,564

 
$
2,990

 
$
3,018

 
$
6,277

 
$
3,234

 
$
3,031

 
$
5,699

 
$
2,998

 
$
2,688