Property, Plant and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

(a) Property, Plant and Equipment

Property, plant and equipment includes the following:


		December 31, 2023						December 31, 2022
	Weighted Average Useful Lives	Property, Plant and Equipment, Gross		Accumulated Depreciation & Amortization		Property, Plant and Equipment, Net		Property, Plant and Equipment, Gross		Accumulated Depreciation & Amortization		Property, Plant and Equipment, Net
	(in years)	(in millions)
CenterPoint Energy
Electric transmission and distribution	37	$	19,151	$	4,762	$	14,389	$	19,154	$	5,317	$	13,837
Electric generation (1)	25	1,381		315		1,066		2,120		813		1,307
Natural gas distribution	32	16,492		4,337		12,155		15,097		4,135		10,962


Finance ROU asset mobile generation	7.5	662		136		526		662		41		621
Other property	22	2,710		993		1,717		695		279		416
Total		$	40,396	$	10,543	$	29,853	$	37,728	$	10,585	$	27,143
Houston Electric
Electric transmission and distribution	37	$	16,800	$	3,641	$	13,159	$	14,791	$	3,556	$	11,235

Finance ROU asset mobile generation	7.5	662		136		526		662		41		621
Other property	20	2,053		692		1,361		2,300		695		1,605
Total		$	19,515	$	4,469	$	15,046	$	17,753	$	4,292	$	13,461
CERC
Natural gas distribution	31	$	15,591	$	4,136	$	11,455	$	14,316	$	3,946	$	10,370

Other property	15	81		33		48		63		27		36
Total		$	15,672	$	4,169	$	11,503	$	14,379	$	3,973	$	10,406

(1)SIGECO and AGC own a 300 MW unit at the Warrick Power Plant (Warrick Unit 4) as tenants in common as of December 31, 2023. SIGECO’s share of the cost of this unit as of December 31, 2023, is $198 million with accumulated depreciation totaling $171 million. Under the operating agreement, AGC and SIGECO shared equally in the cost of operation and output of the unit. SIGECO’s share of operating costs is included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income. SIGECO exited joint operations of Warrick 4 on January 1, 2024.

(b) Depreciation and Amortization

The following table presents depreciation and amortization expense for 2023, 2022 and 2021:


	Year Ended December 31,
	2023						2022						2021
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Depreciation	$	1,092	$	484	$	459	$	1,013	$	434	$	420	$	1,024	$	391	$	466
Amortization of securitized regulatory assets	163		155		—		191		191		—		213		213		—
Other amortization	146		109		34		84		45		28		79		38		17
Total	$	1,401	$	748	$	493	$	1,288	$	670	$	448	$	1,316	$	642	$	483

The Registrants account for an ARO at fair value in the period during which the legal obligation is incurred if a reasonable estimate of fair value and its settlement date can be made. At the timing of recording an ARO, the associated asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset. The Registrants recognize a regulatory asset or liability for the timing differences between the recognition of expenses and costs recovered through the ratemaking process. The estimates of future liabilities are developed using a discounted cash flow model based upon estimates and assumptions of future costs, interest rates, credit-adjusted risk-free rates and the estimated timing of settlement.

The Registrants have recorded AROs associated with the removal of asbestos and asbestos-containing material in its buildings, including substation building structures. CenterPoint Energy recorded AROs relating to the closure of the ash ponds at A.B. Brown and F.B. Culley. CenterPoint Energy and Houston Electric also recorded AROs relating to treated wood poles for electric distribution, distribution transformers containing PCB (also known as Polychlorinated Biphenyl), and underground fuel storage tanks. CenterPoint Energy and CERC also recorded AROs relating to gas pipelines abandoned in place.

A reconciliation of the changes in the ARO liability recorded in Other non-current liabilities on each of the Registrants’ respective Consolidated Balance Sheets is as follows:


	December 31, 2023						December 31, 2022
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Beginning balance	$	610	$	36	$	420	$	659	$	42	$	479

Accretion expense (1)	23		1		16		20		1		15
Revisions in estimates (2)	(43)		3		(56)		(69)		(7)		(74)
Ending balance	$	590	$	40	$	380	$	610	$	36	$	420

(1)Reflected in Regulatory assets on each of the Registrants’ respective Consolidated Balance Sheets.

(2)In 2023 and 2022, CenterPoint Energy and CERC reflected a decrease in their respective ARO liability, which was primarily attributable to increases in the long-term interest rates used for discounting in the ARO calculation. In 2023, Houston Electric reflected an increase in its ARO liability attributable to an increase in discount rates and disposal costs, while in 2022, Houston Electric reflected a decrease in its ARO liability, which was primarily attributable to increases in the long-term interest rates used for discounting in the ARO calculation.