Regulatory Matters

The following is a list of regulatory assets/liabilities reflected on Houston Electric’s Consolidated Balance Sheets as of December 31, 2016 and 2015:



	December 31,
	2016			2015
	(in millions)
Securitized regulatory assets	$	1,919		$	2,373
Unrecognized equity return (1)	(329		)	(393		)
Unamortized loss on reacquired debt	84			93
Pension and postretirement-related regulatory asset	34			50
Other long-term regulatory assets (2)	85			88
Total regulatory assets	1,793			2,211

Estimated removal costs	345			350
Other long-term regulatory liabilities	185			192
Total regulatory liabilities	530			542

Total regulatory assets and liabilities, net	$	1,263		$	1,669

(1)

The unrecognized allowed equity return will be recognized as it is recovered in rates through 2024. During the years ended December 31, 2016, 2015 and 2014, Houston Electric recognized approximately $64 million, $49 million and $68 million, respectively, of the allowed equity return. The timing of Houston Electric’s recognition of the allowed equity return will vary each period based on amounts actually collected during the period. The actual amounts recovered for the allowed equity return are reviewed and adjusted at least annually by the PUCT to correct any over-collections or under-collections during the preceding 12 months and to provide for the full and timely recovery of the allowed equity return.


(2)	Other regulatory assets that are not earning a return were not material as of December 31, 2016 and 2015.