Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value, Assets Measured on a Recurring Basis

The following tables present information about the Registrants’ assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2021 and December 31, 2020, and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value.

CenterPoint Energy


	December 31, 2021						December 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(in millions)
Equity securities	$	1,439	$	—	$	—	$	1,439	$	873	$	—	$	—	$	873
Investments, including money market funds (1)	42		—		—		42		43		—		—		43

Natural gas derivatives	—		14		—		14		—		—		—		—


Total assets	$	1,481	$	14	$	—	$	1,495	$	916	$	—	$	—	$	916

Liabilities
Indexed debt securities derivative	$	—	$	903	$	—	$	903	$	—	$	953	$	—	$	953
Interest rate derivatives	—		14		—		14		—		20		—		20
Natural gas derivatives	—		—		—		—		—		10		—		10


Total liabilities	$	—	$	917	$	—	$	917	$	—	$	983	$	—	$	983

Houston Electric


	December 31, 2021						December 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(in millions)
Investments, including money market funds (1)	$	27	$	—	$	—	$	27	$	26	$	—	$	—	$	26

Total assets	$	27	$	—	$	—	$	27	$	26	$	—	$	—	$	26

CERC


	December 31, 2021						December 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(in millions)

Investments, including money market funds (1)	$	14	$	—	$	—	$	14	$	13	$	—	$	—	$	13



Total assets	$	14	$	—	$	—	$	14	$	13	$	—	$	—	$	13

(1)Amounts are included in Prepaid and Other Current Assets in the respective Consolidated Balance Sheets.

Estimated Fair Value of Financial Instruments, Debt Instruments

The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s equity securities, including ZENS related derivative liabilities, are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy.


	December 31, 2021						December 31, 2020
	CenterPoint Energy (1)		Houston Electric (1)		CERC		CenterPoint Energy (1)		Houston Electric (1)		CERC
Long-term debt, including current maturities	(in millions)


Carrying amount	$	16,086	$	5,495	$	4,380	$	13,401	$	5,019	$	2,428
Fair value	17,385		6,230		4,682		15,226		5,957		2,855

(1)Includes Securitization Bond debt.