Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Fair value, assets and liabilities measured on a recurring basis

The following tables present information about the Registrants’ assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value.

CenterPoint Energy


	September 30, 2022						December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(in millions)
Equity securities	$	452	$	—	$	—	$	452	$	1,439	$	—	$	—	$	1,439
Investments, including money market funds (1)	32		—		—		32		42		—		—		42
Interest rate derivatives	—		1		—		1		—		—		—		—
Natural gas derivatives	—		34		—		34		—		14		—		14



Total assets	$	484	$	35	$	—	$	519	$	1,481	$	14	$	—	$	1,495
Liabilities
Indexed debt securities derivative	$	—	$	522	$	—	$	522	$	—	$	903	$	—	$	903
Interest rate derivatives	—		—		—		—		—		14		—		14




Total liabilities	$	—	$	522	$	—	$	522	$	—	$	917	$	—	$	917

Houston Electric


	September 30, 2022						December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(in millions)
Investments, including money market funds (1)	$	17	$	—	$	—	$	17	$	27	$	—	$	—	$	27

Total assets	$	17	$	—	$	—	$	17	$	27	$	—	$	—	$	27

CERC


	September 30, 2022						December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(in millions)

Investments, including money market funds (1)	$	13	$	—	$	—	$	13	$	14	$	—	$	—	$	14
Natural gas derivatives	—		27		—		27		—		12		—		12
Total assets	$	13	$	27	$	—	$	40	$	14	$	12	$	—	$	26

(1)Amounts are included in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets.

Schedule of Estimated fair value of financial instruments, debt instruments

The fair values of cash and cash equivalents, investments in debt and equity securities measured at fair value 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 ZENS indexed debt securities derivative 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’ Condensed Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy.


	September 30, 2022						December 31, 2021
	CenterPoint Energy (1)		Houston Electric (1)		CERC		CenterPoint Energy (1)		Houston Electric (1)		CERC
Long-term debt, including current maturities	(in millions)


Carrying amount	$	15,066	$	6,628	$	4,571	$	16,086	$	5,495	$	5,552
Fair value	13,482		5,649		4,324		17,385		6,230		5,999

(1)Includes Securitization Bond debt.