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Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) | 12 Months Ended
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Dec. 31, 2024
Indexed Debt Securities [Abstract] |
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) | Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) (a) Equity Securities Gains and losses on equity securities, net of transaction costs, are recorded as Gain (loss) on equity securities in CenterPoint Energy’s Statements of Consolidated Income. The following table presents unrealized gains (losses), net on equity securities owned by CenterPoint Energy for each period presented:
|  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
|  |  |  | (in millions) |  |
AT&T Common |  | $ | 62 |  |  | $ | (17) |  |  | $ | (63) |
Charter Common |  | (40) |  |  | 43 |  |  | (273) |
WBD Common |  | (2) |  |  | 5 |  |  | 23 |
Energy Transfer Common Units (1) |  | — |  |  | — |  |  | 95 |
Energy Transfer Series G Preferred Units (1) |  | — |  |  | — |  |  | (9) |
Total unrealized gains (losses) on equity securities, net |  | $ | 20 |  |  | $ | 31 |  |  | $ | (227) |
(1)In 2022, CenterPoint Energy completed the execution of its previously announced plan to exit the midstream sector by selling its remaining Energy Transfer Common Units and Energy Transfer Series G Preferred Units. CenterPoint Energy and its subsidiaries hold shares of certain securities, which are classified as trading securities. Shares of AT&T Common, Charter Common and WBD Common are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. The following table presented the shares held by CenterPoint Energy and their carrying value for each period presented:
|  | Shares Held at December 31, |  | Carrying Value at December 31,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
|  |  |  |  |  | (in millions)
AT&T Common |  | 10,212,945 |  |  | 10,212,945 |  |  | $ | 233 |  |  | $ | 171 |
Charter Common |  | 872,503 |  |  | 872,503 |  |  | 299 |  |  | 339 |
WBD Common |  | 2,470,685 |  |  | 2,470,685 |  |  | 26 |  |  | 28 |
Other |  |  |  |  |  | 3 |  |  | 3 |
Total |  |  |  |  |  | $ | 561 |  |  | $ | 541 |
(b) ZENS In September 1999, CenterPoint Energy issued ZENS having an original principal amount of $1.0 billion, of which $828 million remained outstanding as of December 31, 2024. Each ZENS is exchangeable at the holder’s option at any time for an amount of cash equal to 95% of the market value of the reference shares attributable to such note. The number and identity of the reference shares attributable to each ZENS are adjusted for certain corporate events. CenterPoint Energy’s reference shares for each ZENS consisted of the following as of the dates presented:
|  | December 31, 2024 |  | December 31, 2023
|  | (in shares)
AT&T Common |  | 0.7185 |  |  | 0.7185 |
Charter Common |  | 0.061382 |  |  | 0.061382 |
WBD Common |  | 0.173817 |  |  | 0.173817 |
CenterPoint Energy pays interest on the ZENS at an annual rate of 2% plus the amount of any quarterly cash dividends paid in respect of the reference shares attributable to the ZENS. The principal amount of the ZENS is subject to increases or decreases to the extent that the annual yield from interest and cash dividends on the reference shares attributable to the ZENS is less than or more than 2.309%. The adjusted principal amount is defined in the ZENS instrument as “contingent principal.” As of December 31, 2024, the ZENS, having an original principal amount of $828 million and a contingent principal amount of $9 million, were outstanding and were exchangeable, at the option of the holders, for cash equal to 95% of the market value of the reference shares attributable to the ZENS. As of December 31, 2024, the market value of such shares was approximately $558 million, which would provide an exchange amount of $640 for each $1,000 original principal amount of ZENS. At maturity of the ZENS in 2029, CenterPoint Energy will be obligated to pay in cash the higher of the contingent principal amount of the ZENS or an amount based on the then-current market value of the reference shares, which will include any additional publicly-traded securities distributed with respect to the current reference shares prior to maturity. The ZENS obligation is bifurcated into a debt component and a derivative component (the holder’s option to receive the appreciated value of the reference shares at maturity). The bifurcated debt component accretes through interest charges annually up to the contingent principal amount of the ZENS in 2029. Such accretion will be reduced by annual cash interest payments, as previously described. The derivative component is recorded at fair value and changes in the fair value of the derivative component are recorded as Gain (loss) on indexed debt securities in CenterPoint Energy’s Statements of Consolidated Income. Changes in the fair value of the ZENS-Related Securities held by CenterPoint Energy are expected to substantially offset changes in the fair value of the derivative component of the ZENS. The following table provides summarized financial information related to CenterPoint Energy’s investment in ZENS-Related Securities and each component of CenterPoint Energy’s ZENS obligation for the periods presented:
| ZENS-Related Securities |  | Debt Component of ZENS |  | Derivative Component of ZENS
| (in millions)
Balance as of December 31, 2021 | $ | 820 |  |  | $ | 10 |  |  | $ | 903 |
Accretion of debt component of ZENS | — |  |  | 17 |  |  | — |
2% interest paid | — |  |  | (17) |  |  | — |
Distribution to ZENS holders | — |  |  | (3) |  |  | — |
Gain on indexed debt securities | — |  |  | — |  |  | (325) |
Loss on ZENS-Related Securities | (313) |  |  | — |  |  | — |
Balance as of December 31, 2022 | 507 |  |  | 7 |  |  | 578 |
Accretion of debt component of ZENS | — |  |  | 17 |  |  | — |
2% interest paid | — |  |  | (17) |  |  | — |
Distribution to ZENS holders | — |  |  | (2) |  |  | — |
Loss on indexed debt securities | — |  |  | — |  |  | 27 |
Gain on ZENS-Related Securities | 31 |  |  | — |  |  | — |
Balance as of December 31, 2023 | 538 |  |  | 5 |  |  | 605 |
Accretion of debt component of ZENS | — |  |  | 16 |  |  | — |
2% interest paid | — |  |  | (17) |  |  | — |
Distribution to ZENS holders | — |  |  | (2) |  |  | — |
Loss on indexed debt securities | — |  |  | — |  |  | 14 |
Gain on ZENS-Related Securities | 20 |  |  | — |  |  | — |
Balance as of December 31, 2024 | $ | 558 |  |  | $ | 2 |  |  | $ | 619 |

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- Definition Indexed Debt Securities [Abstract] + References No definition available. + Details
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- Definition This item represents the entire disclosure related to Indexed Debt Securities (ZENS) and Time Warner Securities. + References No definition available. + Details
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