Divestitures (CenterPoint Energy and CERC) (Tables)

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations

The pre-tax income (loss) for Energy Systems Group, excluding interest and corporate allocations, included in CenterPoint Energy’s Statements of Consolidated Income is as follows:

	Year Ended December 31,
	2023 (1)		2022		2021
	(in millions)
Income (Loss) from Continuing Operations Before Income Taxes	$	(4)	$	2	$	(3)

(1)Reflects January 1, 2023 to June 30, 2023 results only due to of the sale of Energy Systems Group.

The pre-tax income for the Arkansas and Oklahoma Natural Gas businesses, excluding interest and corporate allocations, included in CenterPoint Energy’s and CERC’s Statements of Consolidated Income is as follows:

	Year Ended December 31,	Year Ended December 31,
		2022 (1)		2021
	(in millions)
Income from Continuing Operations Before Income Taxes		$	9	$	78

(1)Reflects January 1, 2022 to January 9, 2022 results only due to of the sale of the Arkansas and Oklahoma Natural Gas businesses.

A summary of discontinued operations presented in CenterPoint Energy’s Statements of Consolidated Income is as follows:

	Year Ended December 31, 2021
	(in millions)
Equity in earnings of unconsolidated affiliate, net	$	1,019
Income from discontinued operations before income taxes	1,019
Income tax expense	201
Net income from discontinued operations	$	818

CenterPoint Energy elected not to separately disclose discontinued operations on its Statements of Consolidated Cash Flows. Except as discussed in Note 2, long-lived assets are not depreciated or amortized once they are classified as held for sale. The following table summarizes CenterPoint Energy’s cash flows from discontinued operations and certain supplemental cash flow disclosures as applicable:

	Year Ended December 31, 2021
Cash flows from operating activities:	(in millions)
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on Enable Merger	$	(681)
Equity in earnings of unconsolidated affiliate	(339)
Distributions from unconsolidated affiliate	155
Cash flows from investing activities:
Transaction costs related to the Enable Merger	(49)
Cash received related to Enable Merger	5

Distributions Received from Enable (CenterPoint Energy):

	Year Ended December 31, 2021
	Per Unit		Cash Distribution
			(in millions)
Enable Common Units	$	0.6610	$	155
Enable Series A Preferred Units	2.2965		34
Total			$	189

Transactions with Enable (CenterPoint Energy and CERC):

The transactions with Enable through December 2, 2021 in the following tables exclude transactions with the Energy Services Disposal Group.

	Year Ended December 31, 2021
	(in millions)
Natural gas expenses, including transportation and storage costs (1)	$	85

(1)Included in Utility natural gas, fuel and purchased power on CenterPoint Energy’s Statements of Consolidated Income and in Utility natural gas on CERC’s Statements of Consolidated Income.

Summarized Financial Information for Enable (CenterPoint Energy)

Summarized consolidated income (loss) information for Enable is as follows:

		Year Ended December 31, 2021 (1)
	(in millions)
Operating revenues		$	3,466
Cost of sales, excluding depreciation and amortization		1,959
Depreciation and amortization		382
Operating income		634
Net income attributable to Enable Common Units		461
Reconciliation of Equity in Earnings (Losses), net before income taxes:
CenterPoint Energy’s interest		$	248
Basis difference amortization (2)		92
Loss on dilution, net of proportional basis difference recognition		(1)
Gain on Enable Merger		680
CenterPoint Energy’s equity in earnings (losses), net before income taxes (3)		$	1,019

(1)Reflects January 1, 2021 to December 2, 2021 results only due to the closing of the Enable Merger.

(2)Equity in earnings of unconsolidated affiliate includes CenterPoint Energy’s share of Enable earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference was being amortized through the year 2048 and ceased upon closing of the Enable Merger.

(3)Reported as discontinued operations on CenterPoint Energy’s Statements of Consolidated Income.