Income Taxes (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The Registrants reported the following effective tax rates:



	Three Months Ended March 31,
	2019		2018
CenterPoint Energy (1)	12	%	22	%
Houston Electric (2)	18	%	22	%
CERC - Continuing operations (3)	16	%	20	%
CERC - Discontinued operations (4)	—	%	25	%

(1)

CenterPoint Energy’s lower effective tax rate for the three months ended March 31, 2019 compared to the three months ended March 31, 2018 was primarily due to remeasurement of state tax liability for changes in apportionment and filing methodologies resulting from the Merger and an increase in the amount of amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions.


(2)	Houston Electric’s lower effective tax rate for the three months ended March 31, 2019 compared to the three months ended March 31, 2018 was primarily due to an increase in the amount of amortization of the net regulatory EDIT liability as decreed by regulators.


(3)	CERC’s lower effective tax rate on income from continuing operations for the three months ended March 31, 2019 compared to the three months ended March 31, 2018 was primarily due to an increase in the amount of amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions.


(4)	CERC’s effective tax rate from discontinued operations for the three months ended March 31, 2018 was a result of the 21% federal income tax rate plus allocable state income taxes. There is no comparable period in 2019 since the Internal Spin was completed in the third quarter of 2018.