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Stock-Based Incentive Compensation Plans and Employee Benefit Plans (Tables) | 12 Months Ended
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Dec. 31, 2023
Disclosure of Stock-Based Incentive Compensation Plans and Employee Benefit Plans [Abstract] |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes CenterPoint Energy’s expenses related to LTIPs for 2023, 2022 and 2021:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in millions)
LTIP compensation expense (1) | $ | 65 |  |  | $ | 51 |  |  | $ | 48 |
Income tax benefit recognized | 15 |  |  | 12 |  |  | 11 |
Actual tax benefit realized for tax deductions | 17 |  |  | 6 |  |  | 4 |
(1)Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income and shown prior to any amounts capitalized.
Share-Based Compensation, Activity | The following tables summarize CenterPoint Energy’s LTIP activity for 2023
| Year Ended December 31, 2023
| Shares (Thousands) |  | Weighted-Average Grant Date Fair Value |  | Remaining Average Contractual Life (Years) |  | Aggregate Intrinsic Value (2) (Millions)
Performance Awards (1) |  |  |  |  |  |  |
Outstanding and nonvested as of December 31, 2022 | 5,157 |  |  | $ | 24.26 |  |  |  |  |
Granted | 1,960 |  |  | 29.18 |  |  |  |  |
Forfeited or canceled | (291) |  |  | 27.38 |  |  |  |  |
Vested and released to participants | (1,601) |  |  | 23.08 |  |  |  |  |
Outstanding and nonvested as of December 31, 2023 | 5,225 |  |  | $ | 25.95 |  |  | 1.1 |  | $ | 101 |
Stock Unit Awards |  |  |  |  |  |  |
Outstanding and nonvested as of December 31, 2022 | 2,296 |  |  | $ | 25.03 |  |  |  |  |
Granted | 606 |  |  | 30.83 |  |  |  |  |
Forfeited or canceled | (93) |  |  | 27.10 |  |  |  |  |
Vested and released to participants | (948) |  |  | 24.48 |  |  |  |  |
Outstanding and nonvested as of December 31, 2023 | 1,861 |  |  | $ | 26.91 |  |  | 0.7 |  | $ | 53 |
(1)Reflects maximum performance achievement. (2)Reflects the impact of current expectations of achievement and stock price.
Share-Based Compensation Arrangement By Award, Weighted Average Grant Date Fair Value, Grant Date Intrinsic Value, and Vested Grant Date Fair Value | Additional information related to the Performance Awards and Stock Unit Awards is as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in millions, except for per unit amounts)
Performance Awards |
Weighted-average grant date fair value per unit of awards granted | $ | 29.18 |  |  | $ | 28.12 |  |  | $ | 21.89 |
Total intrinsic value of awards received by participants | 47 |  |  | 13 |  |  | 7 |
Vested grant date fair value | 37 |  |  | 13 |  |  | 8 |
Stock Unit Awards |  |  |  |  |
Weighted-average grant date fair value per unit of awards granted | $ | 30.83 |  |  | $ | 28.44 |  |  | $ | 24.20 |
Total intrinsic value of awards received by participants | 28 |  |  | 14 |  |  | 11 |
Vested grant date fair value | 23 |  |  | 13 |  |  | 11 |
Schedule of Net Benefit Costs | CenterPoint Energy’s net periodic cost includes the following components relating to pension, including the non-qualified benefit plans:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in millions)
Service cost (1) | $ | 25 |  |  | $ | 29 |  |  | $ | 39 |
Interest cost (2) | 76 |  |  | 73 |  |  | 59 |
Expected return on plan assets (2) | (76) |  |  | (87) |  |  | (103) |
Amortization of net loss (2) | 28 |  |  | 31 |  |  | 36 |
Settlement cost (2) (3) | — |  |  | 126 |  |  | 38 |
Net periodic cost | $ | 53 |  |  | $ | 172 |  |  | $ | 69 |
(1)Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. (2)Amounts presented in the table above are included in Other, net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals. (3)A one-time, non-cash settlement cost is required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. In 2023, 2022 and 2021, CenterPoint Energy recognized non-cash settlement cost due to lump sum settlement payments. The transfer of assets related to the 2022 Annuity Lift-Out is considered a lump sum settlement payment. Postretirement benefits are accrued over the active service period of employees. The net postretirement benefit cost includes the following components:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC
| (in millions)
Service cost (1) | $ | 1 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 1 |
Interest cost (2) | 13 |  |  | 5 |  | 5 |  | 9 |  |  | 4 |  |  | 3 |  |  | 9 |  |  | 4 |  |  | 3 |
Expected return on plan assets (2) | (5) |  | (4) |  | (1) |  | (5) |  |  | (4) |  |  | (1) |  |  | (4) |  |  | (3) |  |  | (1) |
Amortization of prior service cost (credit) (2) | (2) |  | (5) |  | 2 |  | (3) |  |  | (4) |  |  | 2 |  |  | (4) |  |  | (5) |  |  | 1 |
Amortization of net loss (2) | (8) |  | (4) |  | (3) |  | (4) |  |  | (2) |  |  | (1) |  |  | — |  |  | — |  |  | — |
Net postretirement benefit cost (credit) | $ | (1) |  |  | $ | (8) |  |  | $ | 4 |  |  | $ | (1) |  |  | $ | (6) |  |  | $ | 4 |  |  | $ | 3 |  |  | $ | (4) |  |  | $ | 4 |
(1)Amounts presented in the table above are included in Operation and maintenance expense in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. (2)Amounts presented in the table above are included in Other, net in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals.
Schedule of Assumptions Used | CenterPoint Energy used the following assumptions to determine net periodic cost relating to pension benefits:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Discount rate | 5.15 | % |  | 2.80 | % |  | 2.45 | %
Expected return on plan assets | 6.50 |  |  | 5.00 |  |  | 5.00 |
Rate of increase in compensation levels | 4.99 |  |  | 4.95 |  |  | 5.05 |
The following assumptions were used to determine net periodic cost relating to postretirement benefits:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC
Discount rate | 5.15 | % |  | 5.15 | % |  | 5.15 | % |  | 2.85 | % |  | 2.85 | % |  | 2.85 | % |  | 2.50 | % |  | 2.50 | % |  | 2.50 | %
Expected return on plan assets | 5.13 |  |  | 5.26 |  |  | 4.69 |  |  | 3.22 |  |  | 3.32 |  |  | 2.86 |  |  | 3.20 |  |  | 3.30 |  |  | 2.85 |
Schedule of Net Pension and Post-retirement Benefit Costs | The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in the Consolidated Balance Sheets as well as the key assumptions of CenterPoint Energy’s pension plans. The measurement dates for plan assets and obligations were December 31, 2023 and 2022.
| December 31,
| 2023 |  | 2022
| (in millions, except for actuarial assumptions)
Change in Benefit Obligation |  |  |
Benefit obligation, beginning of year | $ | 1,553 |  |  | $ | 2,298 |
Service cost | 25 |  |  | 29 |
Interest cost | 76 |  |  | 73 |
Benefits paid (4) | (147) |  |  | (509) |
Actuarial (gain) loss (1) | 41 |  |  | (338) |
Plan amendment | — |  |  | — |
Benefit obligation, end of year | 1,548 |  |  | 1,553 |
Change in Plan Assets |  |  |
Fair value of plan assets, beginning of year | 1,212 |  |  | 2,072 |
Employer contributions | 32 |  |  | 35 |
Benefits paid (4) | (147) |  |  | (509) |
Actual investment return | 107 |  |  | (386) |
Fair value of plan assets, end of year | 1,204 |  |  | 1,212 |
Funded status, end of year | $ | (344) |  |  | $ | (341) |
Amounts Recognized in Balance Sheets |  |  |
Non-current assets | $ | 4 |  |  | $ | — |
Current liabilities-other | (7) |  |  | (7) |
Other liabilities-benefit obligations | (341) |  |  | (334) |
Net liability, end of year | $ | (344) |  |  | $ | (341) |
Actuarial Assumptions |  |  |
Discount rate (2) | 4.95 | % |  | 5.15 | %
Expected return on plan assets (3) | 6.50 |  |  | 6.50 |
Rate of increase in compensation levels | 4.97 |  |  | 4.99 |
Interest crediting rate | 3.00 |  |  | 3.00 |
(1)Significant sources of loss for 2023 include the decrease in discount rate from 5.15% to 4.95%, partially offset by significant sources of gain that include actual return on assets exceeding expected return on plan assets during 2023. (2)The discount rate assumption was determined by matching the projected cash flows of CenterPoint Energy’s plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. (3)The expected rate of return assumption was developed using the targeted asset allocation of CenterPoint Energy’s plans and the expected return for each asset class. (4)Benefits paid for 2022 includes $136 million related to the 2022 Annuity Lift-Out. The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in consolidated balance sheets and the key assumptions of the postretirement plans. The measurement dates for plan assets and benefit obligations were December 31, 2023 and 2022.
| December 31,
| 2023 |  | 2022
| CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC
| (in millions, except for actuarial assumptions)
Change in Benefit Obligation |  |  |  |  |  |  |  |  |  |  |
Benefit obligation, beginning of year | $ | 263 |  |  | $ | 115 |  |  | $ | 92 |  |  | $ | 336 |  |  | $ | 148 |  |  | $ | 118 |
Service cost | 1 |  |  | — |  |  | 1 |  |  | 2 |  |  | — |  |  | 1 |
Interest cost | 13 |  |  | 5 |  |  | 5 |  |  | 9 |  |  | 4 |  |  | 3 |
Participant contributions | 6 |  |  | 2 |  |  | 3 |  |  | 6 |  |  | 2 |  |  | 3 |
Benefits paid | (20) |  |  | (8) |  |  | (8) |  |  | (20) |  |  | (7) |  |  | (8) |
Plan amendment | — |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | 2 |
Actuarial (gain) loss (1) | — |  |  | (1) |  |  | — |  |  | (73) |  |  | (32) |  |  | (27) |
Benefit obligation, end of year | 263 |  |  | 113 |  |  | 93 |  |  | 263 |  |  | 115 |  |  | 92 |
Change in Plan Assets |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets, beginning of year | 109 |  |  | 84 |  |  | 25 |  |  | 132 |  |  | 104 |  |  | 29 |
Employer contributions | 7 |  |  | — |  |  | 4 |  |  | 8 |  |  | 1 |  |  | 4 |
Participant contributions | 6 |  |  | 2 |  |  | 3 |  |  | 6 |  |  | 2 |  |  | 3 |
Benefits paid | (20) |  |  | (8) |  |  | (8) |  |  | (20) |  |  | (7) |  |  | (8) |
Actual investment return | 10 |  |  | 8 |  |  | 2 |  |  | (17) |  |  | (16) |  |  | (3) |
Fair value of plan assets, end of year | 112 |  |  | 86 |  |  | 26 |  |  | 109 |  |  | 84 |  |  | 25 |
Funded status, end of year | $ | (151) |  |  | $ | (27) |  |  | $ | (67) |  |  | $ | (154) |  |  | $ | (31) |  |  | $ | (67) |
Amounts Recognized in Balance Sheets |  |  |  |  |  |  |  |  |  |  |
Current liabilities — other | $ | (7) |  |  | $ | — |  |  | $ | (4) |  |  | $ | (7) |  |  | $ | — |  |  | $ | (4) |
Other liabilities — benefit obligations | (144) |  |  | (27) |  |  | (63) |  |  | (147) |  |  | (31) |  |  | (64) |
Net liability, end of year | $ | (151) |  |  | $ | (27) |  |  | $ | (67) |  |  | $ | (154) |  |  | $ | (31) |  |  | $ | (68) |
Actuarial Assumptions |  |  |  |  |  |  |  |  |  |  |
Discount rate (2) | 4.95 | % |  | 4.95 | % |  | 4.95 | % |  | 5.15 | % |  | 5.15 | % |  | 5.15 | %
Expected return on plan assets (3) | 5.13 |  |  | 5.26 |  |  | 4.69 |  |  | 3.66 |  |  | 3.75 |  |  | 3.35 |
Medical cost trend rate assumed for the next year - Pre-65 | 7.25 |  |  | 7.25 |  |  | 7.25 |  |  | 6.50 |  |  | 6.50 |  |  | 6.50 |
Medical/prescription drug cost trend rate assumed for the next year - Post-65 | 22.76 |  |  | 22.76 |  |  | 22.76 |  |  | 23.66 |  |  | 23.66 |  |  | 23.66 |
Prescription drug cost trend rate assumed for the next year - Pre-65 | 9.00 |  |  | 9.00 |  |  | 9.00 |  |  | 8.00 |  |  | 8.00 |  |  | 8.00 |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50 |  |  | 4.50 |  |  | 4.50 |  |  | 4.50 |  |  | 4.50 |  |  | 4.50 |
Year that the cost trend rates reach the ultimate trend rate - Pre-65 | 2033 |  | 2033 |  | 2033 |  | 2032 |  | 2032 |  | 2032
Year that the cost trend rates reach the ultimate trend rate - Post-65 | 2033 |  | 2033 |  | 2033 |  | 2032 |  | 2032 |  | 2032
(1)Significant sources of loss for 2023 include updated life insurance rates and the decrease in discount rate from 5.15% to 4.95%. (2)The discount rate assumption was determined by matching the projected cash flows of the plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. (3)The expected rate of return assumption was developed using the targeted asset allocation of the plans and the expected return for each asset class.
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table displays pension benefits related to CenterPoint Energy’s pension plans that have accumulated benefit obligations in excess of plan assets:
| December 31,
| 2023 |  | 2022
| Pension (Qualified) |  | Pension (Non-qualified) |  | Pension (Qualified) |  | Pension (Non-qualified)
| (in millions)
Accumulated benefit obligation | $ | 1,496 |  |  | $ | 48 |  |  | $ | 1,497 |  |  | $ | 51 |
Projected benefit obligation | 1,500 |  |  | 48 |  |  | 1,502 |  |  | 51 |
Fair value of plan assets | 1,204 |  |  | — |  |  | 1,212 |  |  | — |
Schedule of Accumulated Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss (gain) consist of the following:
| December 31,
| 2023 |  | 2022
| Pension Benefits |  | Postretirement Benefits |  | Pension Benefits |  | Postretirement Benefits
| CenterPoint Energy |  | CenterPoint Energy |  | CERC |  | CenterPoint Energy |  | CenterPoint Energy |  | CERC
| (in millions)
Unrecognized actuarial loss (gain) | $ | 69 |  |  | $ | (34) |  |  | $ | (27) |  |  | $ | 70 |  |  | $ | (36) |  |  | $ | (28) |
Unrecognized prior service cost | — |  |  | 12 |  |  | 10 |  |  | — |  |  | 13 |  |  | 11 |
Net amount recognized in accumulated other comprehensive loss (gain) | $ | 69 |  |  | $ | (22) |  |  | $ | (17) |  |  | $ | 70 |  |  | $ | (23) |  |  | $ | (17) |
Changes in accumulated comprehensive income (loss) are as follows:
| Year Ended December 31,
| 2023 |  | 2022
| CenterPoint Energy |  |  |  | CERC |  | CenterPoint Energy |  |  |  | CERC
| (in millions)
Beginning Balance | $ | (31) |  |  |  |  | $ | 16 |  |  | $ | (64) |  |  |  |  | $ | 10 |
Other comprehensive income (loss) before reclassifications: |  |  |  |  |  |  |  |  |  |  |
Remeasurement of pension and other postretirement plans | (8) |  |  |  |  | — |  |  | (40) |  |  |  |  | 10 |
Amounts reclassified from accumulated other comprehensive loss: |  |  |  |  |  |  |  |  |  |  |
Net deferred gain from cash flow hedges | 1 |  |  |  |  | — |  |  | — |  |  |  |  | — |
Prior service cost (1) | 1 |  |  |  |  | (2) |  |  | (1) |  |  |  |  | (1) |
Actuarial losses (1) | 1 |  |  |  |  | 2 |  |  | 8 |  |  |  |  | 1 |
Settlement (2) | — |  |  |  |  | — |  |  | 67 |  |  |  |  | — |
Reclassification of deferred loss from cash flow hedges realized in net income | — |  |  |  |  | — |  |  | 1 |  |  |  |  | — |
Tax benefit (expense) | 1 |  |  |  |  | — |  |  | (2) |  |  |  |  | (4) |
Net current period other comprehensive income (loss) | (4) |  |  |  |  | — |  |  | 33 |  |  |  |  | 6 |
Ending Balance | $ | (35) |  |  |  |  | $ | 16 |  |  | $ | (31) |  |  |  |  | $ | 16 |
(1)Amounts are included in the computation of net periodic cost and are reflected in Other, net in each of the Registrants’ respective Statements of Consolidated Income. (2)Amounts presented represent a one-time, non-cash settlement cost (benefit), prior to regulatory deferrals, which are required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. Amounts presented in the table above are included in Other income (expense), net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals.
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The changes in plan assets and benefit obligations recognized in other comprehensive income during 2023 are as follows:
| Pension Benefits |  | Postretirement Benefits
| CenterPoint Energy |  | CenterPoint Energy |  | CERC
| (in millions)
Net loss (gain) | $ | 2 |  |  | $ | — |  |  | $ | 1 |
Amortization of net loss | (3) |  |  | 2 |  |  | (2) |
Amortization of prior service cost | — |  |  | (1) |  |  | 1 |
Settlement | — |  |  | — |  |  | — |
Total recognized in comprehensive income | $ | (1) |  |  | $ | 1 |  |  | $ | — |
Total recognized in net periodic costs and Other comprehensive income | $ | 52 |  |  | $ | — |  |  | $ | 4 |
Target Allocation of Plan Assets | As part of the investment strategy discussed above, CenterPoint Energy maintained the following weighted-average allocation targets for its pension plans as of December 31, 2023:
| Minimum |  | Maximum
U.S. equity | 17 | % |  | 27 | %
International equity | 9 | % |  | 19 | %
Real estate | 2 | % |  | 11 | %
Fixed income | 54 | % |  | 64 | %
Cash | — | % |  | 2 | %
As part of the investment strategy discussed above, the Registrants maintained the following weighted-average allocation targets for the postretirement plans as of December 31, 2023:
| CenterPoint Energy |  | Houston Electric |  | CERC
| Minimum |  | Maximum |  | Minimum |  | Maximum |  | Minimum |  | Maximum
U.S. equities | 14 | % |  | 24 | % |  | 13 | % |  | 23 | % |  | 15 | % |  | 25 | %
International equities | 3 | % |  | 13 | % |  | 3 | % |  | 13 | % |  | 2 | % |  | 12 | %
Fixed income | 69 | % |  | 79 | % |  | 69 | % |  | 79 | % |  | 68 | % |  | 78 | %
Cash | — | % |  | 2 | % |  | — | % |  | 2 | % |  | — | % |  | 2 | %
Schedule of Allocation of Plan Assets | The following tables set forth by level, within the fair value hierarchy (see Note 10), CenterPoint Energy’s pension plan assets at fair value as of December 31, 2023 and 2022:
| Fair Value Measurements as of December 31,
| 2023 |  | 2022
| (Level 1) |  | (Level 2) |  | (Level 3) |  | Total |  | (Level 1) |  | (Level 2) |  | (Level 3) |  | Total
| (in millions)
Cash | $ | 21 |  |  | $ | — |  |  | $ | — |  |  | $ | 21 |  |  | $ | 7 |  |  | $ | — |  |  | $ | — |  |  | $ | 7 |
Corporate bonds: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade or above | — |  |  | 469 |  |  | — |  |  | 469 |  |  | — |  |  | 467 |  |  | — |  |  | 467 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. companies | 30 |  |  | — |  |  | — |  |  | 30 |  |  | 29 |  |  | — |  |  | — |  |  | 29 |
Cash received as collateral from securities lending | 94 |  |  | — |  |  | — |  |  | 94 |  |  | 47 |  |  | — |  |  | — |  |  | 47 |
U.S. treasuries and government agencies | 178 |  |  | — |  |  | — |  |  | 178 |  |  | 163 |  |  | — |  |  | — |  |  | 163 |
Mortgage backed securities | — |  |  | 15 |  |  | — |  |  | 15 |  |  | — |  |  | 6 |  |  | — |  |  | 6 |
Asset backed securities | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Municipal bonds | — |  |  | 25 |  |  | — |  |  | 25 |  |  | — |  |  | 24 |  |  | — |  |  | 24 |
International government bonds | — |  |  | 9 |  |  | — |  |  | 9 |  |  | — |  |  | 10 |  |  | — |  |  | 10 |
Obligation to return cash received as collateral from securities lending | (94) |  |  | — |  |  | — |  |  | (94) |  |  | (47) |  |  | — |  |  | — |  |  | (47) |
Financial instruments | — |  |  | (4) |  |  | — |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | — |
Total investments at fair value | $ | 229 |  |  | $ | 515 |  |  | $ | — |  |  | 744 |  |  | $ | 199 |  |  | $ | 509 |  |  | $ | — |  |  | 708 |
Investments measured by net asset value per share or its equivalent (1) (2) |  |  |  |  |  |  | 460 |  |  |  |  |  |  |  |  | 504 |
Total Investments |  |  |  |  |  |  | $ | 1,204 |  |  |  |  |  |  |  |  | $ | 1,212 |
(1)Represents investments in pooled investment funds and common collective trust funds. (2)The amounts invested in pooled investment funds were 100% allocated to real estate. The amounts invested common collective trust funds were allocated as follows:
|  |  | As of December 31,
|  |  | 2023 |  |  |  | 2022
International equities |  |  | 40 | % |  |  |  | 40 | %
U.S. equities |  |  | 59 | % |  |  |  | 56 | %
Fixed income |  |  | 1 | % |  |  |  | 4 | %
The following table sets forth by level, within the fair value hierarchy (see Note 10), the Registrants’ postretirement plan assets at fair value as of December 31, 2023 and 2022:
| Fair Value Measurements as of December 31,
| 2023 |  | 2022
| Mutual Funds
| (Level 1) |  | (Level 2) |  | (Level 3) |  | Total |  | (Level 1) |  | (Level 2) |  | (Level 3) |  | Total
| (in millions)
CenterPoint Energy | $ | 113 |  |  | $ | — |  |  | $ | — |  |  | $ | 113 |  |  | $ | 109 |  |  | $ | — |  |  | $ | — |  |  | $ | 109 |
Houston Electric | 86 |  |  | — |  |  | — |  |  | 86 |  |  | 84 |  |  | — |  |  | — |  |  | 84 |
CERC | 26 |  |  | — |  |  | — |  |  | 26 |  |  | 25 |  |  | — |  |  | — |  |  | 25 |
The amounts invested in mutual funds were allocated as follows:
| As of December 31,
| 2023 |  | 2022
| CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC
Fixed income | 72 | % |  | 72 | % |  | 71 | % |  | 74 | % |  | 74 | % |  | 74 | %
U.S. equities | 20 | % |  | 19 | % |  | 22 | % |  | 18 | % |  | 17 | % |  | 20 | %
International equities | 8 | % |  | 9 | % |  | 6 | % |  | 8 | % |  | 8 | % |  | 6 | %
Benefit Plan Contributions | The Registrants made the following contributions in 2023 and are required to make the following minimum contributions in 2024 to the indicated benefit plans below:
| Contributions in 2023 |  | Expected Minimum Contributions in 2024
| CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC
| (in millions)
Qualified pension plans | $ | 24 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |
Non-qualified pension plans | 8 |  |  | — |  |  | — |  |  | 7 |  |  | — |  |  | — |
Postretirement benefit plans | 7 |  |  | — |  |  | 4 |  |  | 8 |  |  | 1 |  |  | 4 |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid by the pension and postretirement benefit plans:
| Pension Benefits |  | Postretirement Benefits
| CenterPoint Energy |  | CenterPoint Energy |  | Houston Electric |  | CERC
| (in millions)
2024 | $ | 141 |  |  | $ | 14 |  |  | $ | 6 |  |  | $ | 5 |
2025 | 143 |  |  | 16 |  |  | 6 |  |  | 6 |
2026 | 137 |  |  | 17 |  |  | 7 |  |  | 6 |
2027 | 135 |  |  | 19 |  |  | 8 |  |  | 7 |
2028 | 133 |  |  | 20 |  |  | 9 |  |  | 7 |
2029-2033 | 606 |  |  | 107 |  |  | 49 |  |  | 36 |
Defined Contribution Plan Disclosures | CenterPoint Energy allocates the savings plan benefit expense to Houston Electric and CERC related to their respective employees. The following table summarizes the Registrants’ savings plan benefit expense for 2023, 2022 and 2021:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC
| (in millions) |  |
Savings plan benefit expenses (1) | $ | 67 |  |  | $ | 23 |  |  | $ | 20 |  |  | $ | 72 |  |  | $ | 23 |  |  | $ | 22 |  |  | $ | 58 |  |  | $ | 20 |  |  | $ | 23 |
(1)Amounts presented in the table above are included in Operation and maintenance expense in the Registrants’ respective Statements of Consolidated Income and shown prior to any amounts capitalized.
Other Benefit Plans | Expenses related to other benefit plans were recorded as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC
| (in millions) |  |
Postemployment benefits | $ | (1) |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 3 |  |  | $ | 1 |  |  | $ | 2 |
Deferred compensation plans | (1) |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | — |
Amounts related to other benefit plans were included in Benefit Obligations in the Registrants’ accompanying Consolidated Balance Sheets as follows:
| December 31, 2023 |  | December 31, 2022
| CenterPoint Energy |  | Houston Electric |  | CERC |  | CenterPoint Energy |  | Houston Electric |  | CERC
| (in millions)
Postemployment benefits | $ | 5 |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 9 |  |  | $ | 3 |  |  | $ | 4 |
Deferred compensation plans | 26 |  |  | 3 |  |  | 1 |  |  | 28 |  |  | 4 |  |  | 1 |
Split-dollar life insurance arrangements | 46 |  |  | 1 |  |  | — |  |  | 22 |  |  | 1 |  |  | — |
Other Employee Matters | As of December 31, 2023, the Registrants’ employees were covered by collective bargaining agreements as follows:
|  |  | Percentage of Employees Covered
| Agreement Expiration |  | CenterPoint Energy |  | Houston Electric |  | CERC
IBEW Local 66 | May 2026 |  | 17 | % |  | 53 | % |  | — | %
OPEIU Local 12 | December 2025 |  | 2 | % |  | — | % |  | 2 | %
Gas Workers Union Local 340 | April 2025 |  | 5 | % |  | — | % |  | 13 | %
IBEW Locals 1393 and USW Locals 12213 & 7441 | December 2026 |  | 3 | % |  | — | % |  | 8 | %
IBEW Locals 949 | December 2025 |  | 3 | % |  | — | % |  | 7 | %
USW Locals 13-227 | June 2027 |  | 5 | % |  | — | % |  | 13 | %
USW Locals 13-1 | June 2027 |  | — | % |  | — | % |  | 1 | %
IBEW Local 702 | June 2025 |  | 3 | % |  | — | % |  | — | %
Teamsters Local 135/215 | September 2024 |  | — | % |  | — | % |  | — | %
UWUA Local 175 | October 2024 |  | 2 | % |  | — | % |  | 4 | %
Total |  |  | 40 | % |  | 53 | % |  | 48 | %

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