XML 150 R33.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Fair Value Measurements | 12 Months Ended
--- | ---
Dec. 31, 2023
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements Assets and liabilities that are recorded at fair value in the Registrants’ Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined below and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are exchange-traded derivatives and equity securities. Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value the Registrants’ Level 2 natural gas derivative assets or liabilities. CenterPoint Energy’s Level 2 indexed debt securities derivative is valued using an option model and a discounted cash flow model, which uses projected dividends on the ZENS-Related Securities and a discount rate as observable inputs. Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Unobservable inputs reflect the Registrants’ judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Registrants develop these inputs based on the best information available, including the Registrants’ own data. The Registrants determine the appropriate level for each financial asset and liability on a quarterly basis and recognize transfers between levels at the end of the reporting period. The following tables present information about the Registrants’ assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2023 and December 31, 2022, and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value. CenterPoint Energy
| December 31, 2023 |  | December 31, 2022
| Level 1 |  | Level 2 |  | Level 3 |  |  |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  |  |  | Total
Assets | (in millions)
Equity securities | $ | 541 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 541 |  |  | $ | 510 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 510 |
Investments, including money market funds (1) | 31 |  |  | — |  |  | — |  |  |  |  | 31 |  |  | 32 |  |  | — |  |  | — |  |  |  |  | 32 |
Interest rate derivatives | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  |  |  | 1 |
Natural gas derivatives | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 11 |  |  | — |  |  |  |  | 11 |
Total assets | $ | 572 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 572 |  |  | $ | 542 |  |  | $ | 12 |  |  | $ | — |  |  |  |  | $ | 554 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indexed debt securities derivative | $ | — |  |  | $ | 605 |  |  | $ | — |  |  |  |  | $ | 605 |  |  | $ | — |  |  | $ | 578 |  |  | $ | — |  |  |  |  | $ | 578 |
Natural gas derivatives | — |  |  | 12 |  |  | — |  |  |  |  | 12 |  |  | — |  |  | — |  |  | — |  |  |  |  | — |
Total liabilities | $ | — |  |  | $ | 617 |  |  | $ | — |  |  |  |  | $ | 617 |  |  | $ | — |  |  | $ | 578 |  |  | $ | — |  |  |  |  | $ | 578 |
Houston Electric
| December 31, 2023 |  | December 31, 2022
| Level 1 |  | Level 2 |  | Level 3 |  |  |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  |  |  | Total
Assets | (in millions)
Investments, including money market funds (1) | $ | 14 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 14 |  |  | $ | 17 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 17 |
Total assets | $ | 14 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 14 |  |  | $ | 17 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 17 |
CERC
| December 31, 2023 |  | December 31, 2022
| Level 1 |  | Level 2 |  | Level 3 |  |  |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  |  |  | Total
Assets | (in millions)
Investments, including money market funds (1) | $ | 15 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 15 |  |  | $ | 14 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 14 |
Natural gas derivatives | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 9 |  |  | — |  |  |  |  | 9 |
Total assets | $ | 15 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 15 |  |  | $ | 14 |  |  | $ | 9 |  |  | $ | — |  |  |  |  | $ | 23 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Natural gas derivatives | $ | — |  |  | $ | 11 |  |  | $ | — |  |  |  |  | $ | 11 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |
Total liabilities | $ | — |  |  | $ | 11 |  |  | $ | — |  |  |  |  | $ | 11 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |
(1)Amounts are included in Prepaid expenses and other current assets in the respective Consolidated Balance Sheets. During 2023 and 2022, CenterPoint Energy did not have any assets or liabilities designated as Level 3. Items Measured at Fair Value on a Nonrecurring Basis For a discussion of the valuation of the Arkansas and Oklahoma Natural Gas businesses in 2021, see Note 4. Estimated Fair Value of Financial Instruments The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s equity securities, including ZENS related derivative liabilities, are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy.
| December 31, 2023 |  | December 31, 2022
| CenterPoint Energy (1) |  | Houston Electric (1) |  | CERC |  | CenterPoint Energy (1) |  | Houston Electric (1) |  | CERC
Long-term debt, including current maturities | (in millions)
Carrying amount | $ | 18,609 |  |  | $ | 7,587 |  |  | $ | 4,670 |  |  | $ | 16,338 |  |  | $ | 6,353 |  |  | $ | 4,826 |
Fair value | 17,804 |  |  | 6,917 |  |  | 4,627 |  |  | 14,990 |  |  | 5,504 |  |  | 4,637 |
(1)Includes Securitization Bond debt.

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

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration