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Short-term Borrowings and Long-term Debt (Tables) | 9 Months Ended
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Sep. 30, 2023
Debt Disclosure [Abstract] |
Schedule of Line of Credit Facilities | Debt Transactions. During the nine months ended September 30, 2023, the following debt instruments were issued or incurred:
Registrant |  | Issuance Date |  | Debt Instrument |  | Aggregate Principal Amount |  | Interest Rate |  | Maturity Date
|  | (in millions)
Houston Electric |  | March 2023 |  | General Mortgage Bonds (1) |  | $ | 600 |  |  | 4.95% |  | 2033
Houston Electric |  | March 2023 |  | General Mortgage Bonds (1) |  | 300 |  |  | 5.30% |  | 2053
Houston Electric |  | September 2023 |  | General Mortgage Bonds (13) |  | 500 |  |  | 5.20% |  | 2028
|  |  |  | Total Houston Electric |  | 1,400 |  |  |  |  |
CERC |  | February 2023 |  | Term Loan (2) |  | 500 |  |  | SOFR (3) + 0.85% |  | 2024
CERC |  | February 2023 |  | Senior Notes (4) |  | 600 |  |  | 5.25% |  | 2028
CERC |  | February 2023 |  | Senior Notes (4) |  | 600 |  |  | 5.40% |  | 2033
CERC |  | May 2023 |  | Senior Notes (5) |  | 300 |  |  | 5.25% |  | 2028
|  |  |  | Total CERC |  | 2,000 |  |  |  |  |
CenterPoint Energy (6) |  | March 2023 |  | First Mortgage Bonds (7) |  | 100 |  |  | 4.98% |  | 2028
CenterPoint Energy (6) |  | March 2023 |  | First Mortgage Bonds (7) |  | 80 |  |  | 5.04% |  | 2033
CenterPoint Energy |  | March 2023 |  | Term Loan (8) |  | 250 |  |  | SOFR (3) + 1.50% |  | 2023
CenterPoint Energy (9) |  | June 2023 |  | Securitization Bonds (10) |  | 341 |  |  | 5.026% - 5.172% |  | 2038-2043
CenterPoint Energy |  | August 2023 |  | Convertible Notes (11) |  | 1,000 |  |  | 4.25% |  | 2026
CenterPoint Energy |  | August 2023 |  | Senior Notes (12) |  | 400 |  |  | 5.25% |  | 2026
|  |  |  | Total CenterPoint Energy |  | $ | 5,571 |  |  |  |  |
(1)Total proceeds from Houston Electric’s March 2023 issuances of general mortgage bonds, net of transaction expenses and fees, were approximately $890 million. Approximately $593 million of such proceeds were used for general limited liability company purposes, including capital expenditures, working capital and the repayment of all or a portion of Houston Electric’s borrowings under the CenterPoint Energy money pool, and approximately $296 million of such proceeds will be disbursed or allocated to finance or refinance, in part or in full, new or existing projects that meet stated criteria. (2)Total proceeds, net of transaction expenses and fees, of approximately $500 million were used for general corporate purposes, including the repayment of CERC’s outstanding commercial paper balances. (3)As defined in the applicable term loan agreement, which includes an adjustment of 0.10% per annum. (4)Total proceeds from CERC’s February 2023 issuances of senior notes, net of transaction expenses and fees, of approximately $1.2 billion were used for general corporate purposes, including the repayment of (i) all or a portion of CERC’s outstanding 0.700% senior notes due 2023, (ii) all or a portion of CERC’s outstanding floating rate senior notes due 2023 and (iii) a portion of CERC’s outstanding commercial paper balances. (5)Total proceeds, net of issuance premiums, transaction expenses and fees, of approximately $308 million, which includes approximately $3 million of accrued interest, were used for general corporate purposes, including repayment of all or a portion of CERC’s outstanding $500 million term loan due February 2024. (6)Issued by SIGECO. (7)Total proceeds from SIGECO’s March 2023 issuances of first mortgage bonds, net of transaction expenses and fees, of approximately $179 million were used for general corporate purposes, including repaying short-term debt and refunding long-term debt at maturity or otherwise. (8)Total proceeds, net of transaction expenses and fees, of approximately $250 million were used for general corporate purposes, including the repayment of CenterPoint Energy’s outstanding commercial paper balances. The full outstanding amount of the term loan, including accrued and unpaid interest, was repaid in March 2023 and, following the repayment, the term loan agreement was terminated. (9)Issued by the SIGECO Securitization Subsidiary. Scheduled final payment dates are November 15, 2036 and May 15, 2041. The SIGECO Securitization Bonds will be repaid over time through a securitization charge imposed on retail electric customers in SIGECO’s service territory. See Notes 1 and 6 for further details. (10)Total proceeds from the SIGECO Securitization Subsidiary’s June 2023 issuance of SIGECO Securitization Bonds, net of transaction expenses and fees, of approximately $337 million were used to pay SIGECO the purchase price of the securitization property. SIGECO used the net proceeds from the sale of the securitization property (after payment of upfront financing costs) to reimburse or pay for qualified costs approved by the IURC related to the completed retirement of its A.B. Brown 1 and 2 coal-powered generation units. (11)Total proceeds, net of discounts, transaction fees and expenses, of $985 million were used for general corporate purposes, including the redemption of CenterPoint Energy’s Series A Preferred Stock on September 1, 2023, and the repayment of a portion of CenterPoint Energy’s outstanding commercial paper. See additional information below. (12)Total proceeds, net of discounts, transaction fees and expenses, of $397 million were used for general corporate purposes, including the repayment of a portion of CenterPoint Energy’s outstanding commercial paper. (13)Total proceeds from Houston Electric’s September 2023 issuances of general mortgage bonds, net of transaction expenses and fees, of approximately $496 million were used for general limited liability company purposes, including capital expenditures, working capital and the repayment of all of Houston Electric’s borrowings under the CenterPoint Energy money pool. During the nine months ended September 30, 2023, the following debt instruments were repaid at maturity or redeemed prior to maturity with proceeds received from the Texas securitization discussed further in Note 6 or through the issuance of new debt. The table does not include Bond Company payments for which there is a dedicated revenue stream,
Registrant |  | Repayment/Redemption Date |  | Debt Instrument |  | Aggregate Principal Amount |  | Interest Rate |  | Maturity Date
|  |  |  |  |  | (in millions) |  |  |  |
CERC |  | March 2023 |  | Term Loan (3) |  | $ | 500 |  |  | SOFR (2) + 0.70% |  | 2023
CERC |  | March 2023 |  | Senior Notes |  | 700 |  |  | 0.70% |  | 2023
CERC |  | March 2023 |  | Floating Rate Senior Notes |  | 575 |  |  | Three-month LIBOR plus 0.5% |  | 2023
CERC |  | May 2023 |  | Term Loan (4) |  | 500 |  |  | SOFR (2) + 0.85% |  | 2024
|  |  |  | Total CERC |  | 2,275 |  |  |  |  |
CenterPoint Energy (1) |  | January 2023 |  | First Mortgage Bonds |  | 11 |  |  | 4.00% |  | 2044
CenterPoint Energy |  | March 2023 |  | Term Loan (3) |  | 250 |  |  | SOFR (2) + 1.50% |  | 2023
|  |  |  | Total CenterPoint Energy |  | $ | 2,536 |  |  |  |  |
(1) On December 16, 2022, SIGECO provided notice of redemption and on January 17, 2023, SIGECO redeemed $11 million aggregate principal amount of SIGECO’s outstanding first mortgage bonds due 2044 at a redemption price equal to 100% of the principal amount of the first mortgage bonds to be redeemed plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. (2) As defined in the applicable term loan agreement, which includes an adjustment of 0.10% per annum. (3) The full outstanding amount of the term loan, including accrued and unpaid interest, was repaid in March 2023 and, following the repayment, the term loan agreement was terminated. (4) The full outstanding amount of the term loan, including accrued and unpaid interest, was repaid in May 2023 and, following the repayment, the term loan agreement was terminated. The Registrants had the following revolving credit facilities as of September 30, 2023:
Execution Date |  | Registrant |  | Size of Facility |  | Draw Rate of SOFR plus (1) |  | Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio |  | Debt for Borrowed Money to Capital Ratio as of September 30, 2023 (2) |  | Termination Date
|  |  |  | (in millions) |  |  |  |  |  |  |  |
December 6, 2022 |  | CenterPoint Energy |  | $ | 2,400 |  |  | 1.500% |  | 65.0% | (3) | 59.2% |  | December 6, 2027
December 6, 2022 |  | CenterPoint Energy (4) |  | 250 |  |  | 1.125% |  | 65.0% |  | 43.8% |  | December 6, 2027
December 6, 2022 |  | Houston Electric |  | 300 |  |  | 1.250% |  | 67.5% | (3) | 52.4% |  | December 6, 2027
December 6, 2022 |  | CERC |  | 1,050 |  |  | 1.125% |  | 65.0% |  | 38.2% |  | December 6, 2027
|  | Total |  | $ | 4,000 |  |  |  |  |  |  |  |  |
(1)Based on current credit ratings. (2)As defined in the revolving credit facility agreements, excluding Securitization Bonds. (3)For CenterPoint Energy and Houston Electric, the financial covenant limit will temporarily increase to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive 12-month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification. (4)This credit facility was issued by SIGECO. The table below reflects the utilization of the Registrants’ respective revolving credit facilities:
|  | September 30, 2023 |  |  | December 31, 2022
Registrant |  | Loans |  | Letters of Credit |  | Commercial Paper (2) |  | Weighted Average Interest Rate |  |  | Loans |  | Letters of Credit |  | Commercial Paper (2) |  | Weighted Average Interest Rate
|  | (in millions, except weighted average interest rate)
CenterPoint Energy |  | $ | — |  |  | $ | 8 |  |  | $ | 1,079 |  |  | 5.50 | % |  |  | $ | — |  |  | $ | 11 |  |  | $ | 1,770 |  |  | 4.71 | %
CenterPoint Energy (1) |  | — |  |  | — |  |  | — |  |  | — | % |  |  | — |  |  | — |  |  | — |  |  | — | %
Houston Electric |  | — |  |  | — |  |  | — |  |  | — | % |  |  | — |  |  | — |  |  | — |  |  | — | %
CERC |  | — |  |  | 1 |  |  | — |  |  | — | % |  |  | — |  |  | — |  |  | 805 |  |  | 4.67 | %
Total |  | $ | — |  |  | $ | 9 |  |  | $ | 1,079 |  |  |  |  |  | $ | — |  |  | $ | 11 |  |  | $ | 2,575 |  |  |
(1)This credit facility was issued by SIGECO. (2)Outstanding commercial paper generally has maturities of 60 days or less and each Registrants’ commercial paper program is backstopped by such Registrants’ long-term credit facilities. Neither Houston Electric nor SIGECO has a commercial paper program.

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- Definition Tabular disclosure of short-term or long-term contractual arrangements with lenders, including letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19(b),22(b)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 + Details
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