Related Party Transactions (Houston Electric and CERC) (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Money Pool Investment and Borrowing

The table below summarizes CenterPoint Energy money pool activity:


	September 30, 2022						December 31, 2021
	Houston Electric			CERC			Houston Electric			CERC
	(in millions, except interest rates)
Money pool investments (borrowings) (1)	$	360		$	—		$	(512)		$	(224)
Weighted average interest rate	3.25		%	3.25		%	0.34		%	0.34		%

(1)Included in Accounts and notes receivable (payable)–affiliated companies on Houston Electric’s and CERC’s respective Condensed Consolidated Balance Sheets.

Schedule of Related Party Transactions

Amounts charged for these services were as follows and are included primarily in operation and maintenance expenses:


	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
	Houston Electric		CERC		Houston Electric		CERC		Houston Electric		CERC		Houston Electric		CERC
	(in millions)
Corporate service charges	$	38	$	54	$	46	$	64	$	114	$	163	$	136	$	178
Net affiliate service charges (billings)	3		(3)		(4)		4		(12)		12		(6)		6

The table below presents transactions among Houston Electric, CERC and their parent, CenterPoint Energy.


	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
	Houston Electric		CERC		Houston Electric		CERC		Houston Electric		CERC		Houston Electric		CERC
	(in millions)
Cash dividends paid to parent	$	74	$	13	$	—	$	—	$	141	$	124	$	—	$	—
Cash dividend paid to parent related to the sale of the Arkansas and Oklahoma Natural Gas businesses	—		—		—		—		—		720		—		—
Cash contribution from parent	—		—		—		—		1,143		125		—		—
Net assets acquired in the Restructuring (1)	—		—		—		—		—		2,345		—		—
Non-cash capital contribution from parent in payment for property, plant and equipment below	—		—		—		—		38		54		—		—
Cash paid to parent for property, plant and equipment below	—		—		—		—		65		61		—		—
Property, plant and equipment from parent (2)	—		—		—		—		103		115		—		—

(1) The Restructuring was a common control transaction that required the recasting of financial information to the earliest period presented. Therefore, the net asset transfer is not reflected during the current period on CERC’s Condensed Statements of Consolidated Changes in Equity.

(2) Property, plant and equipment purchased from CenterPoint Energy at its net carrying value on the date of purchase.

Schedule of Error Corrections and Prior Period Adjustments

The following table presents the as reported and recast amounts for CERC’s Condensed Consolidated Balance Sheet.


	December 31, 2021
	As Reported		Recast
	(in millions)
Total Assets	$	11,110	$	16,153
Total Liabilities	8,109		11,020
Retained Earnings	765		1,017
Total Equity	3,001		5,133

The following table presents the as reported and recast amounts for CERC’s Condensed Statements of Consolidated Income.


	Three Months Ended September 30, 2021				Nine Months Ended September 30, 2021
	As Reported		Recast		As Reported		Recast
	(in millions)
Net income (loss)	$	(1)	$	8	$	208	$	303