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Derivative Instruments (Tables) | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Notional Amounts of Outstanding Derivative Positions | The table below summarizes CenterPoint Energy’s and Houston Electric’s outstanding interest rate hedging activity:
|  | September 30, 2024 |  |  |  | December 31, 2023
Hedging Classification |  | Notional Principal
|  | (in millions)
CenterPoint Energy: |  |  |  |  |  |  |  |
Cash flow hedge (1) (2) |  | $ | — |  |  |  |  | $ | 200 |  |  |
Economic hedge (3) |  | $ | 150 |  |  |  |  | $ | — |  |  |
Houston Electric: |  |  |  |  |  |  |  |
Cash flow hedge (2) |  | $ | — |  |  |  |  | $ | 100 |  |  |
Economic hedge (3) |  | $ | 150 |  |  |  |  | $ | — |  |  |
(1)Relates to interest rate derivative instruments at CenterPoint Energy that terminated on May 8, 2024. The interest rate swap agreements were designated as cash flow hedges of forecasted transactions. CenterPoint Energy records all changes in the fair value of cash flow hedges in accumulated other comprehensive income (loss) until the underlying hedged transaction occurs, when it reclassifies that amount into earnings. (2)Relates to interest rate derivative instruments at Houston Electric that terminated on February 26, 2024. The interest rate treasury lock agreements were designated as cash flow hedges of forecasted transactions. Houston Electric records all changes in the fair value of cash flow hedges to a regulatory asset or liability, which is amortized over the life of the associated debt being hedged. (3)Relates to interest rate derivative instruments at Houston Electric with a termination date of December 24, 2025.
Schedule of Fair Value of Derivative Instruments | The following tables provide a balance sheet overview of the Registrants’ derivative assets and liabilities in the periods presented:
|  |  |  | September 30, 2024 |  | December 31, 2023 |  |
|  | Balance Sheet Location |  | Derivative Assets Fair Value |  | Derivative Liabilities Fair Value |  | Derivative Assets Fair Value |  | Derivative Liabilities Fair Value |  |
| CenterPoint Energy: |  |  | (in millions) |  |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
| Natural gas derivatives (1) | Current Assets: Non-trading derivative assets |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |
| Natural gas derivatives (1) | Current Liabilities: Non-trading derivative liabilities |  | — |  |  | 5 |  |  | — |  |  | 9 |  |  |
| Natural gas derivatives (1) | Other Liabilities: Non-trading derivative liabilities |  | — |  |  | 2 |  |  | — |  |  | 3 |  |  |
| Indexed debt securities derivative (2) | Current Liabilities |  | — |  |  | 591 |  |  | — |  |  | 605 |  |  |
|  | Total |  | $ | 1 |  |  | $ | 598 |  |  | $ | — |  |  | $ | 617 |  |  |
(1)Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract was in a liability position with no offsetting amounts as of September 30, 2024 and December 31, 2023, respectively. As of September 30, 2024 and December 31, 2023, the notional volume of natural gas derivatives were 32,251 MMBtu per day and 27,421 MMBtu per day, respectively. (2)Derivative component of the ZENS obligation that represents the ZENS holder’s option to receive the appreciated value of the reference shares at maturity and other payments to which they may be entitled. See Note 10 for further information.
|  |  |  | September 30, 2024 |  | December 31, 2023
|  | Balance Sheet Location |  | Derivative Assets Fair Value |  | Derivative Liabilities Fair Value |  | Derivative Assets Fair Value |  | Derivative Liabilities Fair Value
| CERC: |  |  | (in millions)
| Derivatives not designated as hedging instruments: |  |
| Natural gas derivatives (1) | Current Assets: Non-trading derivative assets |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| Natural gas derivatives (1) | Current Liabilities: Non-trading derivative liabilities |  | — |  |  | 4 |  |  | — |  |  | 8 |
| Natural gas derivatives (1) | Other Liabilities: Non-trading derivative liabilities |  | — |  |  | 2 |  |  | — |  |  | 3 |
|  | Total |  | $ | 1 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 11 |
(1)Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract was in a liability position with no offsetting amounts as of September 30, 2024 and December 31, 2023, respectively. As of September 30, 2024 and December 31, 2023, the notional volume of natural gas derivatives were 27,644 MMBtu per day and 23,504 MMBtu per day, respectively.
Schedule of Income Statement Impact of Derivative Activity | The table below provides the related income statement impacts of derivative activity for the periods presented:
|  |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | Income Statement Location |  | 2024 |  | 2023 |  | 2024 |  | 2023
CenterPoint Energy: |  |  |  |  |  |  |  | (in millions)
Derivatives not designated as hedging instruments: |  |
Indexed debt securities derivative (1) |  | Gain (loss) on indexed debt securities |  | $ | (53) |  |  | $ | (47) |  |  | $ | 14 |  |  | $ | (52) |
(1)The indexed debt securities derivative is recorded at fair value and changes in the fair value are recorded in CenterPoint Energy’s Condensed Statements of Consolidated Income. Cash inflows and outflows associated with derivatives are included in operating activities on the statement of cash flows. (c) Credit Risk Contingent Features (CenterPoint Energy and CERC) Certain of CenterPoint Energy’s and CERC’s derivative instruments contain provisions that require CenterPoint Energy and CERC to maintain an investment grade credit rating on their respective long-term unsecured unsubordinated debt from S&P and Moody’s. If CenterPoint Energy’s or CERC’s debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or additional collateral. No collateral had been posted for CenterPoint Energy or CERC as of September 30, 2024 or December 31, 2023. The table below sets forth additional detail for the periods presented:
| September 30, 2024 |  | December 31, 2023
| CenterPoint Energy |  | CERC |  | CenterPoint Energy |  | CERC
| (in millions)
Aggregate fair value of derivatives containing material adverse change provisions in a net liability position | $ | 5 |  |  | $ | 4 |  |  | $ | 9 |  |  | $ | 8 |
Additional collateral required to be posted if credit risk contingent features triggered | 5 |  |  | 4 |  |  | 9 |  |  | 8 |

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