XML 43 R26.htm IDEA: XBRL DOCUMENT
v3.23.1

Revenue Recognition and Allowance for Credit Losses | 3 Months Ended
--- | ---
Mar. 31, 2023
Revenue from Contract with Customer [Abstract] |
Revenue Recognition and Allowance for Credit Losses | Revenue Recognition and Allowance for Credit Losses Revenues from Contracts with Customers In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Registrants expect to be entitled to receive in exchange for these goods or services. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. The following tables disaggregate revenues by reportable segment and major source: CenterPoint Energy
|  | Three Months Ended March 31, 2023
|  | Electric |  | Natural Gas |  | Corporate and Other |  | Total
|  | (in millions)
Revenue from contracts |  | $ | 958 |  |  | $ | 1,752 |  |  | $ | 51 |  |  | $ | 2,761 |
Other (1) |  | (6) |  |  | 23 |  |  | 1 |  |  | 18 |
Total revenues |  | $ | 952 |  |  | $ | 1,775 |  |  | $ | 52 |  |  | $ | 2,779 |
|  | Three Months Ended March 31, 2022
|  | Electric |  | Natural Gas |  | Corporate and Other |  | Total
|  | (in millions)
Revenue from contracts |  | $ | 898 |  |  | $ | 1,845 |  |  | $ | 45 |  |  | $ | 2,788 |
Other (1) |  | (5) |  |  | (21) |  |  | 1 |  |  | (25) |
Total revenues |  | $ | 893 |  |  | $ | 1,824 |  |  | $ | 46 |  |  | $ | 2,763 |
(1)Primarily consists of income from ARPs and leases. Total lease income was $2 million and $1 million for the three months ended March 31, 2023 and 2022, respectively. Houston Electric
|  |  | Three Months Ended March 31,
|  |  |  |  | 2023 |  | 2022
|  |  |  | (in millions)
Revenue from contracts |  |  |  |  | $ | 803 |  |  | $ | 756 |
Other (1) |  |  |  |  | (11) |  |  | (10) |
Total revenues |  |  |  |  | $ | 792 |  |  | $ | 746 |
(1)Primarily consists of income from ARPs and leases. Lease income was not significant for the three months ended March 31, 2023 and 2022. CERC
|  |  |  | Three Months Ended March 31,
|  |  |  |  |  | 2023 |  | 2022
|  |  |  |  | (in millions)
Revenue from contracts |  |  |  |  |  | $ | 1,700 |  |  | $ | 1,785 |
Other (1) |  |  |  |  |  | 17 |  |  | (22) |
Total revenues |  |  |  |  |  | $ | 1,717 |  |  | $ | 1,763 |
(1)Primarily consists of income from ARPs and leases. Lease income was not significant for the three months ended March 31, 2023 and 2022. Revenues from Contracts with Customers Electric (CenterPoint Energy and Houston Electric). Houston Electric distributes electricity to customers over time, and customers consume the electricity when delivered. Indiana Electric generates, transmits and distributes electricity to customers over time, and customers consume the electricity when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by state regulators, such as the PUCT and the IURC, is recognized as electricity is delivered and represents amounts both billed and unbilled. Discretionary services requested by customers are provided at a point in time with control transferring upon the completion of the service. Revenue for discretionary services provided by Houston Electric is recognized upon completion of service based on the tariff rates set by the PUCT. Payments for electricity distribution and discretionary services are aggregated and received on a monthly basis. Houston Electric performs transmission services over time as a stand-ready obligation to provide a reliable network of transmission systems. Revenue is recognized upon time elapsed, and the monthly tariff rate set by the regulator. Payments are received on a monthly basis. Indiana Electric customers are billed monthly and payment terms, set by the regulator, require payment within a month of billing. Natural Gas (CenterPoint Energy and CERC). CenterPoint Energy and CERC distribute and transport natural gas to customers over time, and customers consume the natural gas when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by the state governing agency for that service area, is recognized as natural gas is delivered and represents amounts both billed and unbilled. Discretionary services requested by the customer are satisfied at a point in time and revenue is recognized upon completion of service and the tariff rates set by the applicable state regulator. Payments of natural gas distribution, transportation and discretionary services are aggregated and received on a monthly basis. Contract Balances. When the timing of delivery of service is different from the timing of the payments made by customers and when the right to consideration is conditioned on something other than the passage of time, the Registrants recognize either a contract asset (performance precedes billing) or a contract liability (customer payment precedes performance). Those customers that prepay are represented by contract liabilities until the performance obligations are satisfied. The Registrants’ contract assets are included in Accrued unbilled revenues in their Condensed Consolidated Balance Sheets. As of March 31, 2023, CenterPoint Energy’s contract assets primarily relate to Energy Systems Group contracts where revenue is recognized using the input method. The Registrants’ contract liabilities are included in Accounts payable and Other current liabilities in their Condensed Consolidated Balance Sheets. On an aggregate basis as of March 31, 2023, CenterPoint Energy’s contract liabilities primarily relate to Energy Systems Group contracts where revenue is recognized using the input method. The opening and closing balances of accounts receivable, other accrued unbilled revenue, contract assets and contract liabilities from contracts with customers are as follows: CenterPoint Energy
| Accounts Receivable |  | Other Accrued Unbilled Revenues |  | Contract Assets |  | Contract Liabilities
| (in millions)
Opening balance as of December 31, 2022 | $ | 858 |  |  | $ | 764 |  |  | $ | 4 |  |  | $ | 45 |
Closing balance as of March 31, 2023 | 837 |  |  | 398 |  |  | 4 |  |  | 56 |
Increase (decrease) | $ | (21) |  |  | $ | (366) |  |  | $ | — |  |  | $ | 11 |
The amount of revenue recognized during the three-month period ended March 31, 2023 that was included in the opening contract liability was $21 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between CenterPoint Energy’s performance and the customer’s payment. Houston Electric
| Accounts Receivable |  | Other Accrued Unbilled Revenues |  |  |  | Contract Liabilities
| (in millions)
Opening balance as of December 31, 2022 | $ | 271 |  |  | $ | 142 |  |  |  |  | $ | 2 |
Closing balance as of March 31, 2023 | 240 |  |  | 89 |  |  |  |  | 3 |
Increase (decrease) | $ | (31) |  |  | $ | (53) |  |  |  |  | $ | 1 |
The amount of revenue recognized during the three-month period ended March 31, 2023 that was included in the opening contract liability was $1 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between Houston Electric’s performance and the customer’s payment. CERC
| Accounts Receivable |  | Other Accrued Unbilled Revenues |  |  |  |
| (in millions) |  |
Opening balance as of December 31, 2022 | $ | 478 |  |  | $ | 573 |  |  |  |  |  |  |
Closing balance as of March 31, 2023 | 509 |  |  | 275 |  |  |  |  |  |  |
Increase (decrease) | $ | 31 |  |  | $ | (298) |  |  |  |  |  |  |
CERC does not have any opening or closing contract asset or contract liability balances. Remaining Performance Obligations (CenterPoint Energy). The table below discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts and (2) when CenterPoint Energy expects to recognize this revenue. Such contracts include energy performance and sustainable infrastructure services contracts of Energy Systems Group, which are included in Corporate and Other.
| Rolling 12 Months |  | Thereafter |  | Total
| (in millions) |  |
Revenue expected to be recognized on contracts in place as of March 31, 2023: |  |  |  |  |  |  |
Corporate and Other | $ | 282 |  |  | $ | 535 |  |  | $ | 817 |  |  |
| $ | 282 |  |  | $ | 535 |  |  | $ | 817 |  |  |
Practical Expedients and Exemption. Sales taxes and other similar taxes collected from customers are excluded from the transaction price. For contracts for which revenue from the satisfaction of the performance obligations is recognized in the amount invoiced, the practical expedient was elected and revenue expected to be recognized on these contracts has not been disclosed. Allowance for Credit Losses CenterPoint Energy and CERC segregate financial assets that fall under the scope of Topic 326, primarily trade receivables due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, among others. Houston Electric had no material changes in its methodology to recognize losses on financial assets that fall under the scope of Topic 326, primarily due to the nature of its customers and regulatory environment. For a discussion of regulatory deferrals, including those related to COVID-19, see Note 6.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration