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Reportable Segments
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Reportable Business Segments [Text Block] Reportable Segments

The Registrants’ determination of reportable segments considers the strategic operating units under which the Registrants’ CODM manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. As of January 1, 2020, the Registrants’ CODM views net income as the measure of profit or loss for the reportable segments rather than the previous measure of operating income. Certain prior year amounts have been reclassified to conform to the current year presentation.

As of June 30, 2020, reportable segments by Registrant were as follows:
Registrant
 
Houston Electric T&D
 
Indiana Electric Integrated
 
Natural Gas Distribution
 
Midstream Investments
CenterPoint Energy
 
X
 
X
 
X
 
X
Houston Electric
 
X
 
 
 
 
 
 
CERC
 
 
 
 
 
X
 
 

•
CenterPoint Energy’s and Houston Electric’s Houston Electric T&D reportable segment consists of electric transmission and distribution services in the Texas Gulf Coast area.

•
CenterPoint Energy’s Indiana Electric Integrated reportable segment consists of electric transmission and distribution services primarily to southwestern Indiana and includes power generation and wholesale power operations.

•
CenterPoint Energy’s Natural Gas Distribution reportable segment consists of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas; (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP, formerly included in the Energy Services reportable segment; and (iii) temporary delivery of LNG and CNG throughout the contiguous 48 states through MES, formerly included in the Energy Services reportable segment.

•
CERC’s Natural Gas Distribution reportable segment consists of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas; (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP, formerly included in the Energy Services reportable segment; and (iii) temporary delivery of LNG and CNG throughout the contiguous 48 states through MES, formerly included in the Energy Services reportable segment.

•
CenterPoint Energy’s Midstream Investments reportable segment consists of the equity investment in Enable (excluding the Enable Series A Preferred Units).

CenterPoint Energy’s Corporate and Other consists of energy performance contracting and sustainable infrastructure services through ESG and other corporate operations which support all of the business operations of CenterPoint Energy. CERC’s Corporate and Other consists primarily of corporate operations which support all of the business operations of CERC.

Discontinued Operations

On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group, which consists of underground pipeline construction and repair services. Accordingly, the previously reported Infrastructure Services reportable segment has been eliminated. The transaction closed on April 9, 2020. See Note 3 for further information.

Additionally, on February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group, which consists of non-rate regulated natural gas sales and service operations. Accordingly, the previously reported Energy Services reportable segment has been eliminated. The transaction closed on June 1, 2020. See Note 3 for further information.

Financial data for reportable segments is as follows, including Corporate and Other, Eliminations and Discontinued Operations for reconciliation purposes:

CenterPoint Energy
 
Three Months Ended June 30,
 
2020
 
Revenues from
External
Customers
 
Equity in Earnings of Unconsolidated Affiliates
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Houston Electric T&D
$
720

(3)
$
—

 
$
140

 
$
—

(1)
$
(43
)
(2)
$
16

 
$
87

Indiana Electric Integrated
128

 
—

 
26

 
—

 
(5
)
 
5

 
19

Natural Gas Distribution
641

 
—

 
113

 
2

 
(29
)
 
3

 
33

Midstream Investments
—

 
43

 
—

 
1

 
(13
)
 
7

 
24

Corporate and Other
86

 
—

 
18

 
27

 
(67
)
 
(2
)
 
(28
)
Eliminations
—

 
—

 
—

 
(29
)
 
29

 
—

 
—

Continuing Operations
$
1,575

 
$
43

 
$
297

 
$
1

 
$
(128
)
 
$
29

 
135

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
 
 
(30
)
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
$
105

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
2019
 
Revenues from
External
Customers
 
Equity in Earnings of Unconsolidated Affiliates
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Houston Electric T&D
$
765

(3)
$
—

 
$
176

 
$
6

(1)
$
(42
)
(2)
$
23

 
$
100

Indiana Electric Integrated
140

 
—

 
25

 
—

 
(7
)
 
3

 
16

Natural Gas Distribution
673

 
—

 
107

 
—

 
(24
)
 
1

 
23

Midstream Investments
—

 
74

 
—

 
3

 
(14
)
 
13

 
50

Corporate and Other
80

 
—

 
14

 
39

 
(94
)
 
(25
)
 
(38
)
Eliminations
—

 
—

 
—

 
(47
)
 
47

 
—

 
—

Consolidated
$
1,658

 
$
74

 
$
322

 
$
1

 
$
(134
)
 
$
15

 
151

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
 
 
44

Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
$
195


 
Six Months Ended June 30,
 
2020
 
Revenues from
External
Customers
 
Equity in Earnings of Unconsolidated Affiliates
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Houston Electric T&D
$
1,358

(3)
$
—

 
$
269

 
$
1

(1)
$
(84
)
(2)
$
21

 
$
124

Indiana Electric Integrated
257

 
—

 
51

 
—

 
(11
)
 
8

 
(152
)
Natural Gas Distribution
1,959

 
—

 
224

 
3

 
(61
)
 
59

 
237

Midstream Investments
—

 
(1,432
)
(4
)
—

 
1

 
(27
)
 
(354
)
 
(1,103
)
Corporate and Other
168

 
—

 
35

 
75

 
(163
)
 
(52
)
 
(24
)
Eliminations
—

 
—

 
—

 
(79
)
 
79

 
—

 
—

Continuing Operations
$
3,742

 
$
(1,432
)
 
$
579

 
$
1

 
$
(267
)
 
$
(318
)
 
(918
)
Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
 
 
(176
)
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
$
(1,094
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Six Months Ended June 30,
 
2019
 
Revenues from
External
Customers
 
Equity in Earnings of Unconsolidated Affiliates
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Houston Electric T&D
$
1,454

(3)
$
—

 
$
351

 
$
10

(1)
$
(82
)
(2)
$
29

 
$
130

Indiana Electric Integrated
223

 
—

 
41

 
—

 
(10
)
 
1

 
7

Natural Gas Distribution
2,088

 
—

 
202

 
1

 
(47
)
 
27

 
143

Midstream Investments
—

 
136

 
—

 
5

 
(26
)
 
41

 
74

Corporate and Other
122

 
—

 
28

 
85

 
(178
)
 
(69
)
 
(60
)
Eliminations
—

 
—

 
—

 
(88
)
 
88

 
—

 
—

Consolidated
$
3,887

 
$
136

 
$
622

 
$
13

 
$
(255
)
 
$
29

 
294

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
 
 
70

Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
$
364



(1)
Excludes interest income from Securitization Bonds of $-0- and $1 million for the three and six months ended June 30, 2020, respectively, and $1 million and $3 million for the three and six months ended June 30, 2019, respectively.

(2)
Excludes interest expense on Securitization Bonds of $7 million and $15 million for the three and six months ended June 30, 2020, respectively, and $10 million and $22 million for the three and six months ended June 30, 2019, respectively.

(3)
CenterPoint Energy’s Houston Electric T&D’s revenues from major external customers are as follows:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2020
 
2019
 
2020
 
2019
 
 
(in millions)
Affiliates of NRG
 
$
174

 
$
165

 
$
330

 
$
316

Affiliates of Vistra Energy Corp.
 
92

 
59

 
173

 
113



(4)
Includes the impairment of CenterPoint Energy’s equity method investment in Enable of $1,541 million recorded during the three months ended March 31, 2020.

Houston Electric

Houston Electric consists of a single reportable segment; therefore, a tabular reportable segment presentation has not been
included.

Houston Electric’s T&D revenues from major external customers are as follows:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2020
 
2019
 
2020
 
2019
 
 
(in millions)
Affiliates of NRG
 
$
174

 
$
165

 
$
330

 
$
316

Affiliates of Vistra Energy Corp.
 
92

 
59

 
173

 
113



CERC
 
Three Months Ended June 30,
 
2020
 
Revenues from
External
Customers
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Natural Gas Distribution
$
480

 
$
74

 
$
2

 
$
(20
)
 
$
1

 
$
20

Corporate and Other
3

 
—

 
25

 
(36
)
 
(5
)
 
(3
)
Eliminations
—

 
—

 
(27
)
 
27

 
—

 
—

Continuing Operations
$
483

 
$
74

 
$
—

 
$
(29
)
 
$
(4
)
 
17

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
(4
)
Consolidated
 
 
 
 
 
 
 
 
 
 
$
13

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
2019
 
Revenues from
External
Customers
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Benefit
 
Net Income (Loss)
 
(in millions)
Natural Gas Distribution
$
526

 
$
73

 
$
2

 
$
(19
)
 
$
—

 
$
10

Corporate and Other
—

 
—

 
29

 
(39
)
 
(5
)
 
(8
)
Eliminations
—

 
—

 
(28
)
 
28

 
—

 
—

Continuing Operations
$
526

 
$
73

 
$
3

 
$
(30
)
 
$
(5
)
 
2

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
26

Consolidated
 
 
 
 
 
 
 
 
 
 
$
28

 
Six Months Ended June 30,
 
2020
 
Revenues from
External
Customers
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Natural Gas Distribution
$
1,488

 
$
148

 
$
3

 
$
(41
)
 
$
45

 
$
154

Corporate and Other
6

 
—

 
46

 
(67
)
 
(14
)
 
(6
)
Eliminations
—

 
—

 
(49
)
 
49

 
—

 
—

Continuing Operations
$
1,494

 
$
148

 
$
—

 
$
(59
)
 
$
31

 
148

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
(68
)
Consolidated
 
 
 
 
 
 
 
 
 
 
$
80

 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
2019
 
Revenues from
External
Customers
 
Depreciation
and
Amortization
 
Interest Income
 
Interest Expense
 
Income Tax Expense
(Benefit)
 
Net Income (Loss)
 
(in millions)
Natural Gas Distribution
$
1,737

 
$
146

 
$
3

 
$
(38
)
 
$
26

 
$
129

Corporate and Other
1

 
—

 
49

 
(70
)
 
(13
)
 
(17
)
Eliminations
—

 
—

 
(49
)
 
49

 
—

 
—

Continuing Operations
$
1,738

 
$
146

 
$
3

 
$
(59
)
 
$
13

 
112

Discontinued Operations, net
 
 
 
 
 
 
 
 
 
 
54

Consolidated
 
 
 
 
 
 
 
 
 
 
$
166





CenterPoint Energy and CERC
 
Total Assets
 
June 30, 2020
 
December 31, 2019
 
CenterPoint
 Energy
 
CERC
 
CenterPoint
Energy
 
CERC
 
(in millions)
Houston Electric T&D
$
11,097

 
$
—

 
$
11,264

 
$
—

Indiana Electric Integrated
3,083

 
—

 
3,168

 
—

Natural Gas Distribution
14,055

 
7,609

 
14,105

 
7,698

Midstream Investments
917

 
—

 
2,473

 
—

Corporate and Other, net of eliminations
2,996

 
(14
)
 
2,555

 
(90
)
Continuing Operations
32,148

 
7,595

 
33,565

 
7,608

Assets Held for Sale
—

 
—

 
1,964

 
904

Consolidated
$
32,148

 
$
7,595

 
$
35,529

 
$
8,512