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Document and Entity Information - USD ($)	3 Months Ended
Document and Entity Information - USD ($)	Mar. 31, 2018	Apr. 24, 2018	Jun. 30, 2017
Entity Information [Line Items]
Entity Registrant Name	CENTERPOINT ENERGY HOUSTON ELECTRIC LLC
Entity Central Index Key	0000048732
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		1,000
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 0

CONDENSED STATEMENTS OF CONSOLIDATED INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues	$ 755	$ 638
Expenses:
Operation and maintenance	342	341
Depreciation and amortization	233	152
Taxes other than income taxes	61	60
Total	636	553
Operating Income	119	85
Other Income (Expense):
Interest and other finance charges	(33)	(33)
Interest on Securitization Bonds	(16)	(20)
Other, net	(3)	(4)
Total	(52)	(57)
Income Before Income Taxes	67	28
Income tax expense	15	10
Net Income	$ 52	$ 18

CONDENSED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net income	$ 52	$ 18
Other comprehensive income:
Net deferred gain (loss) from cash flow hedges (net of tax of $1 and $-0-)	4	(1)
Total	4	(1)
Comprehensive income	$ 56	$ 17

CONDENSED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Tax expense (benefit) on net deferred gains (losses) from cash flow hedges	$ 1	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents ($181 and $230 related to VIEs, respectively)	$ 191	$ 238
Accounts and notes receivable ($86 and $73 related to VIEs, respectively), less bad debt reserve of $1 and $1, respectively	299	284
Accounts and notes receivable–affiliated companies	140	7
Accrued unbilled revenues	96	120
Inventory	115	119
Other ($37 and $35 related to VIEs, respectively)	62	62
Total current assets	903	830
Property, Plant and Equipment:
Property, plant and equipment	11,660	11,496
Less: accumulated depreciation and amortization	3,694	3,633
Property, plant and equipment, net	7,966	7,863
Other Assets:
Regulatory assets ($1,455 and $1,590 related to VIEs, respectively)	1,457	1,570
Other	32	29
Total other assets	1,489	1,599
Total Assets	10,358	10,292
Current Liabilities:
Current portion of VIE Securitization Bonds long-term debt	444	434
Accounts payable	201	243
Accounts and notes payable–affiliated companies	39	104
Taxes accrued	74	116
Interest accrued	53	65
Other	110	120
Total current liabilities	921	1,082
Other Liabilities:
Deferred income taxes, net	1,040	1,059
Benefit obligations	144	146
Regulatory liabilities	1,265	1,263
Other	54	54
Total other liabilities	2,503	2,522
Long-term Debt:
VIE Securitization Bonds, net	1,260	1,434
Other, net	3,280	2,885
Total long-term debt, net	4,540	4,319
Commitments and Contingencies (Note 9)
Member’s Equity:
Common stock	0	0
Paid-in capital	1,697	1,696
Retained earnings	693	673
Accumulated other comprehensive income	4	0
Total member’s equity	2,394	2,369
Total Liabilities and Member’s Equity	$ 10,358	$ 10,292

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Cash and cash equivalents ($181 and $230 related to VIEs, respectively)	$ 191	$ 238
Bad debt reserve	1	1
Accounts and notes receivable, net	299	284
Other	62	62
Regulatory assets	1,457	1,570
Variable Interest Entity, Primary Beneficiary [Member]
Cash and cash equivalents ($181 and $230 related to VIEs, respectively)	181	230
Accounts and notes receivable, net	86	73
Other	37	35
Regulatory assets	$ 1,455	$ 1,590

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities:
Net income	$ 52	$ 18
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	233	152
Amortization of deferred financing costs	3	3
Deferred income taxes	(20)	8
Changes in other assets and liabilities:
Accounts and notes receivable, net	9	23
Accounts receivable/payable–affiliated companies	(5)	(56)
Inventory	4	4
Accounts payable	(16)	48
Taxes receivable	0	(3)
Interest and taxes accrued	(54)	(68)
Net regulatory assets and liabilities	(26)	(28)
Other current assets	2	0
Other current liabilities	(2)	(3)
Other assets	1	3
Other liabilities	(2)	4
Other, net	1	(1)
Net cash provided by operating activities	180	104
Cash Flows from Investing Activities:
Capital expenditures	(230)	(210)
Increase in notes receivable–affiliated companies	(133)	(107)
Other, net	(1)	(2)
Net cash used in investing activities	(364)	(319)
Cash Flows from Financing Activities:
Proceeds from long-term debt, net	398	298
Payments of long-term debt	(165)	(155)
Decrease in notes payable–affiliated companies	(60)	0
Dividend to parent	(32)	(32)
Debt issuance costs	(3)	(2)
Other, net	1	1
Net cash provided by financing activities	139	110
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(45)	(105)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	274	381
Cash, Cash Equivalents and Restricted Cash at End of Period	$ 229	$ 276

Background and Basis of Presentation	3 Months Ended
Background and Basis of Presentation	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Basis of Presentation [Text Block]	Background and Basis of Presentation General. Included in this Form 10-Q are the Interim Condensed Financial Statements of Houston Electric. The Interim Condensed Financial Statements are unaudited, omit certain financial statement disclosures and should be read with the 2017 Form 10-K. Background. Houston Electric is an indirect, wholly-owned subsidiary of CenterPoint Energy, Inc., a public utility holding company. Houston Electric provides electric transmission and distribution services to REPs serving over 2.4 million metered customers in the Texas Gulf Coast area that includes the city of Houston. As of March 31, 2018, Houston Electric had the following subsidiaries: Bond Company II, Bond Company III, Restoration Bond Company and Bond Company IV. As of March 31, 2018, Houston Electric had VIEs consisting of the Bond Companies, which it consolidates. The consolidated VIEs are wholly-owned, bankruptcy-remote, special purpose entities that were formed specifically for the purpose of securitizing transition and system restoration-related property. Creditors of Houston Electric have no recourse to any assets or revenues of the Bond Companies. The bonds issued by these VIEs are payable only from and secured by transition and system restoration property, and the bondholders have no recourse to the general credit of Houston Electric. Basis of Presentation. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Houston Electric’s Interim Condensed Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the respective periods. Amounts reported in Houston Electric’s Condensed Statements of Consolidated Income are not necessarily indicative of amounts expected for a full-year period due to the effects of, among other things, (a) seasonal fluctuations in demand for energy, (b) timing of maintenance and other expenditures and (c) acquisitions and dispositions of businesses, assets and other interests. Houston Electric consists of a single reportable business segment: Electric Transmission & Distribution.

New Accounting Pronouncements

3 Months Ended

Mar. 31, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements [Text Block]

New Accounting Pronouncements

The following table provides an overview of recently adopted or issued accounting pronouncements applicable to Houston Electric.



Recently Adopted Accounting Standards
ASU Number and Name	Description	Date of Adoption	Financial Statement Impact upon Adoption
ASU 2014-09- Revenue from Contracts with Customers (Topic 606) and related amendments	This standard provides a comprehensive new revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. Transition method: modified retrospective	January 1, 2018	Houston Electric added a revenue recognition footnote (Note 3) to address the disclosure requirements, and it did not identify significant changes to revenue recognition. A substantial amount of Houston Electric’s revenues are tariff based, which were not significantly impacted by these ASUs.
ASU 2017-05- Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets	This standard clarifies when and how to apply ASC 610-20, which was issued as part of ASU 2014-09. It amends or supersedes the guidance in ASC 350 and ASC 360 on determining a gain or loss recognized upon the derecognition of nonfinancial assets. Transition method: modified retrospective	January 1, 2018	The adoption of this standard did not have an impact on Houston Electric’s financial position, results of operations or disclosures.



Recently Adopted Accounting Standards
ASU Number and Name	Description	Date of Adoption	Financial Statement Impact upon Adoption
ASU 2016-01- Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ASU 2018-03-Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities	This standard requires equity investments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value and to recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. It does not change the guidance for classifying and measuring investments in debt securities and loans. It also changes certain disclosure requirements and other aspects related to recognition and measurement of financial assets and financial liabilities. Transition method: cumulative-effect adjustment to beginning retained earnings, and two features prospective	January 1, 2018	The adoption of this standard did not have an impact on Houston Electric’s financial position, results of operations or disclosures.
ASU 2016-15- Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments	This standard provides clarifying guidance on the classification of certain cash receipts and payments in the statement of cash flows and eliminates the variation in practice related to such classifications. Transition method: retrospective	January 1, 2018	The adoption did not have a material impact on Houston Electric’s financial position, results of operations or disclosures. However, the statement of cash flows reflects an increase in investing activities and a corresponding decrease in operating activities of $-0- and $2 million for the three months ended March 31, 2018 and 2017, respectively, due to the requirement that cash proceeds from COLI policies be classified as cash inflows from investing activity.
ASU 2016-18- Statement of Cash Flows (Topic 230): Restricted Cash	This standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. As a result, the statement of cash flows will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Transition method: retrospective	January 1, 2018	The adoption of this standard did not have an impact on Houston Electric’s financial position, results of operations or disclosures. However, the statement of cash flows is reconciled to cash, cash equivalents and restricted cash, resulting in a decrease in investing activities of $2 million and an increase in investing activities of $4 million for the three months ended March 31, 2018 and 2017, respectively.
ASU 2017-01- Business Combinations (Topic 805): Clarifying the Definition of a Business	This standard revises the definition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then under ASU 2017-01, the asset or group of assets is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs to be more closely aligned with how outputs are described in ASC 606. Transition method: prospective	January 1, 2018	The adoption of this revised definition will reduce the number of transactions that are accounted for as a business combination, and therefore may have a potential impact on Houston Electric’s accounting for future acquisitions.
ASU 2017-07- Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost	This standard requires an employer to report the service cost component of the net periodic pension cost and postretirement benefit cost in the same line item(s) as other employee compensation costs arising from services rendered during the period; all other components will be presented separately from the line item(s) that includes the service cost and outside of any subtotal of operating income. In addition, only the service cost component will be eligible for capitalization in assets. Transition method: retrospective for the presentation of the service cost component and other components; prospective for the capitalization of the service cost component.	January 1, 2018	The adoption of this standard did not have a material impact on Houston Electric’s financial position, results of operations, cash flows or disclosures; however, it resulted in an increase to operating income and a corresponding decrease to other income of $7 million and $8 million in the three months ended March 31, 2018 and 2017, respectively. Other components previously capitalized in assets will be recorded as regulatory assets, prospectively.



Issued, Not Yet Effective Accounting Standards
ASU Number and Name	Description	Date of Adoption	Financial Statement Impact upon Adoption
ASU 2016-02- Leases (Topic 842) and related amendments ASU 2018-01- Leases (Topic 842) Land Easement Practical Expedient for Transition to Topic 842	ASU 2016-02 provides a comprehensive new lease model that requires lessees to recognize assets and liabilities for most leases and would change certain aspects of lessor accounting. Transition method: modified retrospective ASU 2018-01 allows entities to elect not to assess whether existing land easements that were not previously accounted for in accordance with ASC 840 Leases under ASC 842 Leases when transitioning to the new leasing standard.	January 1, 2019 Early adoption is permitted	Houston Electric will elect the practical expedient on existing easements provided by ASU 2018-01 and is evaluating other available transitional practical expedients. Houston Electric is in the process of reviewing contracts to identify leases as defined in ASU 2016-02 and expects to recognize on the statements of financial position right-of-use assets and lease liabilities for the majority of its leases that are currently classified as operating leases. Houston Electric is continuing to assess the impact that adoption of these standards will have on its financial position, results of operations, cash flows and disclosures.
ASU 2017-12- Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities	This standard expands an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness, eases certain documentation and assessment requirements, and updates the presentation and disclosure requirements. Transition method: cumulative-effect adjustment for elimination of the separate measurement of ineffectiveness; prospective for presentation and disclosure	January 1, 2019 Early adoption is permitted	Houston Electric is currently assessing the impact that adoption of this standard will have on its financial position, results of operations, cash flows and disclosures.
ASU 2018-02-Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income	This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA and requires entities to provide certain disclosures regarding stranded tax effects. Transition method: either in the period of adoption or retrospective	January 1, 2019 Early adoption is permitted	The adoption of this standard will allow Houston Electric to reclass stranded deferred tax adjustments primarily related to benefit plans from other comprehensive income to retained earnings. Houston Electric is currently assessing the impact that adoption of this standard will have on its financial position and disclosures.

Management believes that other recently adopted standards and recently issued standards that are not yet effective will not have a material impact on Houston Electric’s financial position, results of operations or cash flows upon adoption.

Revenue Recognition

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue Recognition [Text Block]

Revenue Recognition

Houston Electric adopted ASC 606 and all related amendments on January 1, 2018 using the modified retrospective method for those contracts that were not completed as of the date of adoption. Application of the new revenue standard did not result in a cumulative effect adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the new standard did not have a material impact on Houston Electric’s financial position, results of operations or cash flows.

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which Houston Electric expects to be entitled to receive in exchange for these goods or services. Contract assets and liabilities are not material.

The following table disaggregates revenues by major source:



	Three Months Ended March 31,
	2018			2017
	(in millions)
Revenue from contracts	$	761		$	644
Other (1)	(6		)	(6		)
	$	755		$	638

(1)

Primarily consists of income from ARPs and leases. ARPs are contracts between Houston Electric and the PUCT, not between Houston Electric and a customer. Houston Electric recognizes ARP revenue as other revenues when the PUCT-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period.

Revenues from Contracts with Customers

Houston Electric distributes electricity to customers over time and customers consume the electricity when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by the PUCT, is recognized as electricity is delivered and represents amounts both billed and unbilled. Discretionary services requested by customers are provided at a point in time with control transferring upon the completion of the service. Revenue for discretionary services is recognized upon completion of service based on the tariff rates set by the PUCT. Payments for electricity distribution and discretionary services are aggregated and received on a monthly basis. Houston Electric performs transmission services over time as a stand-ready obligation to provide a reliable network of transmission systems. Revenue is recognized upon time elapsed, and the monthly tariff rate set by the PUCT. Payments are received on a monthly basis.

Practical Expedients and Exemption. Sales taxes and other similar taxes collected from customers are excluded from the transaction price.

Employee Benefit Plans

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Employee Benefit Plans [Text Block]

Employee Benefit Plans

Houston Electric’s employees participate in CenterPoint Energy’s postretirement benefit plan. Houston Electric’s net periodic cost, before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes, includes the following components relating to postretirement benefits:



	Three Months Ended March 31,
	2018			2017
	(in millions)
Interest cost (1)	$	2		$	2
Expected return on plan assets (1)	(1		)	(1		)
Amortization of prior service credit (1)	(1		)	(1		)
Net periodic cost	$	—		$	—


(1)	Included in Other, net in the Condensed Statements of Consolidated Income.

Houston Electric expects to contribute a total of approximately $10 million to the postretirement benefit plan in 2018, of which approximately $2 million was contributed during the three months ended March 31, 2018.

Regulatory Accounting

3 Months Ended

Mar. 31, 2018

Regulatory Assets and Liabilities, Other Disclosures [Abstract]

Regulatory Accounting [Text Block]

Regulatory Accounting

The following is a list of regulatory assets and liabilities reflected on Houston Electric’s Condensed Consolidated Balance Sheets:



	March 31, 2018			December 31, 2017
	(in millions)
Regulatory Assets:
Non-current regulatory assets:
Securitized regulatory assets	$	1,455		$	1,590
Unrecognized equity return (1)	(266		)	(287		)
Unamortized loss on reacquired debt	74			75
Pension and postretirement-related regulatory asset	32			31
Hurricane Harvey restoration costs (2)	57			58
Regulatory assets related to TCJA (3)	33			33
Other long-term regulatory assets (4)	72			70
Total regulatory assets	1,457			1,570
Regulatory Liabilities:
Current regulatory liabilities (5)	14			22
Non-current regulatory liabilities:
Regulatory liabilities related to TCJA (3)	874			862
Estimated removal costs	282			285
Other long-term regulatory liabilities	109			116
Total non-current regulatory liabilities	1,265			1,263
Total regulatory liabilities	1,279			1,285
Total regulatory assets and liabilities, net	$	178		$	285

(1)

The unrecognized equity return will be recognized as it is recovered in rates through 2024. During the three months ended March 31, 2018 and 2017, Houston Electric recognized approximately $21 million and $7 million, respectively, of the allowed equity return. The timing of Houston Electric’s recognition of the equity return will vary each period based on amounts actually collected during the period. The actual amounts recognized are adjusted at least annually to correct any over-collections or under-collections during the preceding 12 months.


(2)	Houston Electric is not earning a return on its Hurricane Harvey restoration costs.


(3)	The EDIT and deferred revenues will be recovered or refunded to customers as required by tax and regulatory authorities.


(4)	Other long-term regulatory assets that are not earning a return were not material as of March 31, 2018 and December 31, 2017.


(5)	Current regulatory liabilities are included in Other current liabilities in Houston Electric’s Condensed Consolidated Balance Sheets.

Fair Value Measurements

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements [Text Block]

Fair Value Measurements

Assets and liabilities that are recorded at fair value in the Condensed 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 are investments listed in active markets. As of March 31, 2018 and December 31, 2017, Houston Electric held Level 1 investments of $53 million and $51 million, respectively, which were primarily investments in money market funds and are included in other current assets and other assets in the Condensed Consolidated Balance Sheets.

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. Houston Electric had no Level 2 assets or liabilities as of either March 31, 2018 or December 31, 2017.

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 Houston Electric’s judgments about the assumptions market participants would use in determining fair value. Houston Electric had no Level 3 assets or liabilities as of either March 31, 2018 or December 31, 2017.

Houston Electric determines the appropriate level for each financial asset and liability on a quarterly basis and recognizes transfers between levels at the end of the reporting period. For the three months ended March 31, 2018, there were no transfers between levels.

Estimated Fair Value of Financial Instruments

The fair values of cash and cash equivalents and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been 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 Condensed Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy.



	March 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities:	(in millions)
Long-term debt, including the current portion	$	4,984	$	5,131	$	4,753	$	5,034

- 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 + Details

Related Party Transactions and Major Customers

3 Months Ended

Mar. 31, 2018

Related Party Transactions and Major Customers

(a) Related Party Transactions

Houston Electric participates in a money pool through which it can borrow or invest on a short-term basis. Funding needs are aggregated and external borrowing or investing is based on the net cash position. The net funding requirements of the money pool are expected to be met with borrowings under CenterPoint Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper.

The table below summarizes Houston Electric’s money pool activity:



	March 31, 2018			December 31, 2017
	(in millions)
Money pool investments (borrowings) (1)	$	133		$	(60	)
Weighted average interest rate	2.27		%	1.90		%


(1)	Included in Accounts and notes receivable (payable)–affiliated companies in the Condensed Consolidated Balance Sheets.

Affiliate related net interest income (expense) was not material for either the three months ended March 31, 2018 or 2017.

CenterPoint Energy provides some corporate services to Houston Electric. The costs of services have been charged directly to Houston Electric using methods that management believes are reasonable. These methods include negotiated usage rates, dedicated asset assignment and proportionate corporate formulas based on operating expenses, assets, gross margin, employees and a composite of assets, gross margin and employees. CERC provides certain services to Houston Electric. These services are billed at actual cost, either directly or as an allocation and include line locating and other miscellaneous services. Additionally, Houston Electric provides a number of services to CERC. These services are billed at actual cost, either directly or as an allocation and include fleet services, shop services, geographic services, surveying and right-of-way services, radio communications, data circuit management and field operations. These charges are not necessarily indicative of what would have been incurred had Houston Electric not been an affiliate.

Amounts charged to and by Houston Electric for these services were as follows and are included primarily in operation and maintenance expenses:



	Three Months Ended March 31,
	2018			2017
	(in millions)
Corporate service charges	$	44		$	42
Charges from CERC for services provided	3			2
Billings to CERC for services provided	(5		)	(3		)

Houston Electric paid dividends on its common shares to Utility Holding, LLC as follows:



	Three Months Ended March 31,
	2018		2017
	(in millions)
Dividend to parent	$	32	$	32

(b) Major Customers

Houston Electric’s transmission and distribution revenues from major customers are as follows:



	Three Months Ended March 31,
	2018		2017
	(in millions)
Affiliates of NRG	$	161	$	152
Affiliates of Vistra Energy Corp.	54		47

Long-term Debt

3 Months Ended

Mar. 31, 2018

Long-term Debt, Unclassified [Abstract]

Long-term Debt [Text Block]

Long-term Debt

Debt Issuances. During the three months ended March 31, 2018, Houston Electric issued the following general mortgage bonds:



Issuance Date	Aggregate Principal Amount		Interest Rate	Maturity Date
	(in millions)
February 2018	$	400	3.95%	2048

The proceeds from the issuance of these bonds were used for general limited liability company purposes.

Revolving Credit Facility. Houston Electric had the following revolving credit facility and utilization of such facility:



		March 31, 2018				December 31, 2017
Size of Facility		Loans		Letters of Credit		Loans		Letters of Credit
(in millions)
$	300	$	—	$	4	$	—	$	4

Execution Date

Size of

Facility

Draw Rate of LIBOR plus (1)

Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio (2)

Debt for Borrowed Money to Capital

Ratio as of

March 31, 2018 (3)

Termination Date

(in millions)

March 3, 2016

300

1.125%

65%

51.2%

March 3, 2022


(1)	Based on current credit ratings.

(2)

The financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and Houston Electric 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 Houston Electric delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of Houston Electric’s certification or (iii) the revocation of such certification.


(3)	As defined in the revolving credit facility agreement, excluding Securitization Bonds.

Houston Electric was in compliance with all financial debt covenants as of March 31, 2018.

Hedging of Interest Expense for Future Debt Issuances. In January and February 2018, Houston Electric entered into forward interest rate agreements with multiple counterparties, having an aggregate notional amount of $200 million. These agreements were executed to hedge, in part, volatility in the 30-year U.S. treasury rate by reducing Houston Electric’s exposure to variability in cash flows related to interest payments of Houston Electric’s $400 million issuance of fixed rate debt in February 2018. These forward interest rate agreements were designated as cash flow hedges. Accordingly, the effective portion of realized gains associated with the forward interest rate agreements, which totaled approximately $5 million, is a component of accumulated other comprehensive income in 2018 and will be amortized over the life of the fixed rate debt.

Other. As of both March 31, 2018 and December 31, 2017, Houston Electric had issued $118 million of general mortgage bonds as collateral for long-term debt of CenterPoint Energy. These bonds are not reflected in the consolidated financial statements because of the contingent nature of the obligations.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies [Text Block]	Commitments and Contingencies Legal Matters Gas Market Manipulation Cases. CenterPoint Energy, Houston Electric or their predecessor, Reliant Energy, and certain of their former subsidiaries have been named as defendants in certain lawsuits described below. Under a master separation agreement between CenterPoint Energy and a former subsidiary, RRI, CenterPoint Energy and its subsidiaries are entitled to be indemnified by RRI and its successors for any losses, including certain attorneys’ fees and other costs, arising out of these lawsuits. In May 2009, RRI sold its Texas retail business to a subsidiary of NRG and RRI changed its name to RRI Energy, Inc. In December 2010, Mirant Corporation merged with and became a wholly-owned subsidiary of RRI, and RRI changed its name to GenOn. In December 2012, NRG acquired GenOn through a merger in which GenOn became a wholly-owned subsidiary of NRG. None of the sale of the retail business, the merger with Mirant Corporation, or the acquisition of GenOn by NRG alters RRI’s (now GenOn’s) contractual obligations to indemnify CenterPoint Energy and its subsidiaries, including Houston Electric, for certain liabilities, including their indemnification obligations regarding the gas market manipulation litigation. A large number of lawsuits were filed against numerous gas market participants in a number of federal and western state courts in connection with the operation of the natural gas markets in 2000–2002. CenterPoint Energy and its affiliates have since been released or dismissed from all such cases. CES, a subsidiary of CERC Corp., was a defendant in a case now pending in federal court in Nevada alleging a conspiracy to inflate Wisconsin natural gas prices in 2000–2002. On May 24, 2016, the district court granted CES’s motion for summary judgment, dismissing CES from the case. The plaintiffs have appealed that ruling. CenterPoint Energy and CES intend to continue vigorously defending against the plaintiffs’ claims. In June 2017, GenOn and various affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code. In December 2017, GenOn received court approval of a restructuring plan and is expected to emerge from Chapter 11 in mid-2018. CenterPoint Energy, CERC, and CES submitted proofs of claim in the bankruptcy proceedings to protect their indemnity rights. If GenOn were unable to meet its indemnity obligations or satisfy a liability that has been assumed in the gas market manipulation litigation, then Houston Electric, CenterPoint Energy or CERC could incur liability and be responsible for satisfying the liability. Houston Electric does not expect the ultimate outcome of the case against CES to have a material adverse effect on its financial condition, results of operations or cash flows. Environmental Matters Asbestos. Some facilities owned by Houston Electric contain or have contained asbestos insulation and other asbestos-containing materials. CenterPoint Energy and its subsidiaries, including Houston Electric, are from time to time named, along with numerous others, as defendants in lawsuits filed by a number of individuals who claim injury due to exposure to asbestos, and CenterPoint Energy anticipates that additional claims may be asserted in the future. Although their ultimate outcome cannot be predicted at this time, Houston Electric does not expect these matters, either individually or in the aggregate, to have a material adverse effect on Houston Electric’s financial condition, results of operations or cash flows. Other Environmental. From time to time, Houston Electric identifies the presence of environmental contaminants during its operations or on property where its predecessor companies have conducted operations. Other such sites involving contaminants may be identified in the future. Houston Electric has and expects to continue to remediate any identified sites consistent with its state and federal legal obligations. From time to time, Houston Electric has received notices, and may receive notices in the future, from regulatory authorities or others regarding its status as a PRP in connection with sites found to require remediation due to the presence of environmental contaminants. In addition, Houston Electric has been, or may be, named from time to time as a defendant in litigation related to such sites. Although the ultimate outcome of such matters cannot be predicted at this time, Houston Electric does not expect these matters, either individually or in the aggregate, to have a material adverse effect on its financial condition, results of operations or cash flows. Other Proceedings Houston Electric is involved in other legal, environmental, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies regarding matters arising in the ordinary course of business. From time to time, Houston Electric is also a defendant in legal proceedings with respect to claims brought by various plaintiffs against broad groups of participants in the energy industry. Some of these proceedings involve substantial amounts. Houston Electric regularly analyzes current information and, as necessary, provides accruals for probable and reasonably estimable liabilities on the eventual disposition of these matters. Houston Electric does not expect the disposition of these matters to have a material adverse effect on its financial condition, results of operations or cash flows.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes [Text Block]	Income Taxes The effective tax rate reported for the three months ended March 31, 2018 was 22% compared to 36% for the same period in 2017. The lower effective tax rate for the three months ended March 31, 2018 was primarily due to the reduction in the federal corporate income tax rate from 35% to 21% effective January 1, 2018 as prescribed by the TCJA. Houston Electric reported no uncertain tax liability as of March 31, 2018 and expects no significant changes to the uncertain tax liability over the next twelve months. Tax years through 2015 have been audited and settled with the IRS. For the 2016 through 2018 tax years, CenterPoint Energy is a participant in the IRS’s Compliance Assurance Process.

Supplemental Disclosure of Cash Flow Information

3 Months Ended

Mar. 31, 2018

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

Supplemental Disclosure of Cash Flow Information

The table below provides supplemental disclosure of cash flow information:



	Three Months Ended March 31,
	2018		2017
Cash Payments/Receipts:	(in millions)
Interest, net of capitalized interest	$	61	$	64
Income taxes, net	16		—
Non-cash transactions:
Accounts payable related to capital expenditures	$	78	$	57

The table below provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the amount reported in the Condensed Statements of Consolidated Cash Flows:



	March 31, 2018		December 31, 2017
	(in millions)
Cash and cash equivalents	$	191	$	238
Restricted cash included in Other current assets	37		35
Restricted cash included in Other non-current assets	1		1
Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows	$	229	$	274

New Accounting Pronouncements (Tables)

3 Months Ended

Mar. 31, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

The following table provides an overview of recently adopted or issued accounting pronouncements applicable to Houston Electric.



Recently Adopted Accounting Standards
ASU Number and Name	Description	Date of Adoption	Financial Statement Impact upon Adoption
ASU 2014-09- Revenue from Contracts with Customers (Topic 606) and related amendments	This standard provides a comprehensive new revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. Transition method: modified retrospective	January 1, 2018	Houston Electric added a revenue recognition footnote (Note 3) to address the disclosure requirements, and it did not identify significant changes to revenue recognition. A substantial amount of Houston Electric’s revenues are tariff based, which were not significantly impacted by these ASUs.
ASU 2017-05- Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets	This standard clarifies when and how to apply ASC 610-20, which was issued as part of ASU 2014-09. It amends or supersedes the guidance in ASC 350 and ASC 360 on determining a gain or loss recognized upon the derecognition of nonfinancial assets. Transition method: modified retrospective	January 1, 2018	The adoption of this standard did not have an impact on Houston Electric’s financial position, results of operations or disclosures.



Recently Adopted Accounting Standards
ASU Number and Name	Description	Date of Adoption	Financial Statement Impact upon Adoption
ASU 2016-01- Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ASU 2018-03-Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities	This standard requires equity investments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value and to recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. It does not change the guidance for classifying and measuring investments in debt securities and loans. It also changes certain disclosure requirements and other aspects related to recognition and measurement of financial assets and financial liabilities. Transition method: cumulative-effect adjustment to beginning retained earnings, and two features prospective	January 1, 2018	The adoption of this standard did not have an impact on Houston Electric’s financial position, results of operations or disclosures.
ASU 2016-15- Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments	This standard provides clarifying guidance on the classification of certain cash receipts and payments in the statement of cash flows and eliminates the variation in practice related to such classifications. Transition method: retrospective	January 1, 2018	The adoption did not have a material impact on Houston Electric’s financial position, results of operations or disclosures. However, the statement of cash flows reflects an increase in investing activities and a corresponding decrease in operating activities of $-0- and $2 million for the three months ended March 31, 2018 and 2017, respectively, due to the requirement that cash proceeds from COLI policies be classified as cash inflows from investing activity.
ASU 2016-18- Statement of Cash Flows (Topic 230): Restricted Cash	This standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. As a result, the statement of cash flows will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. Transition method: retrospective	January 1, 2018	The adoption of this standard did not have an impact on Houston Electric’s financial position, results of operations or disclosures. However, the statement of cash flows is reconciled to cash, cash equivalents and restricted cash, resulting in a decrease in investing activities of $2 million and an increase in investing activities of $4 million for the three months ended March 31, 2018 and 2017, respectively.
ASU 2017-01- Business Combinations (Topic 805): Clarifying the Definition of a Business	This standard revises the definition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then under ASU 2017-01, the asset or group of assets is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs to be more closely aligned with how outputs are described in ASC 606. Transition method: prospective	January 1, 2018	The adoption of this revised definition will reduce the number of transactions that are accounted for as a business combination, and therefore may have a potential impact on Houston Electric’s accounting for future acquisitions.
ASU 2017-07- Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost	This standard requires an employer to report the service cost component of the net periodic pension cost and postretirement benefit cost in the same line item(s) as other employee compensation costs arising from services rendered during the period; all other components will be presented separately from the line item(s) that includes the service cost and outside of any subtotal of operating income. In addition, only the service cost component will be eligible for capitalization in assets. Transition method: retrospective for the presentation of the service cost component and other components; prospective for the capitalization of the service cost component.	January 1, 2018	The adoption of this standard did not have a material impact on Houston Electric’s financial position, results of operations, cash flows or disclosures; however, it resulted in an increase to operating income and a corresponding decrease to other income of $7 million and $8 million in the three months ended March 31, 2018 and 2017, respectively. Other components previously capitalized in assets will be recorded as regulatory assets, prospectively.



Issued, Not Yet Effective Accounting Standards
ASU Number and Name	Description	Date of Adoption	Financial Statement Impact upon Adoption
ASU 2016-02- Leases (Topic 842) and related amendments ASU 2018-01- Leases (Topic 842) Land Easement Practical Expedient for Transition to Topic 842	ASU 2016-02 provides a comprehensive new lease model that requires lessees to recognize assets and liabilities for most leases and would change certain aspects of lessor accounting. Transition method: modified retrospective ASU 2018-01 allows entities to elect not to assess whether existing land easements that were not previously accounted for in accordance with ASC 840 Leases under ASC 842 Leases when transitioning to the new leasing standard.	January 1, 2019 Early adoption is permitted	Houston Electric will elect the practical expedient on existing easements provided by ASU 2018-01 and is evaluating other available transitional practical expedients. Houston Electric is in the process of reviewing contracts to identify leases as defined in ASU 2016-02 and expects to recognize on the statements of financial position right-of-use assets and lease liabilities for the majority of its leases that are currently classified as operating leases. Houston Electric is continuing to assess the impact that adoption of these standards will have on its financial position, results of operations, cash flows and disclosures.
ASU 2017-12- Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities	This standard expands an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness, eases certain documentation and assessment requirements, and updates the presentation and disclosure requirements. Transition method: cumulative-effect adjustment for elimination of the separate measurement of ineffectiveness; prospective for presentation and disclosure	January 1, 2019 Early adoption is permitted	Houston Electric is currently assessing the impact that adoption of this standard will have on its financial position, results of operations, cash flows and disclosures.
ASU 2018-02-Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income	This standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA and requires entities to provide certain disclosures regarding stranded tax effects. Transition method: either in the period of adoption or retrospective	January 1, 2019 Early adoption is permitted	The adoption of this standard will allow Houston Electric to reclass stranded deferred tax adjustments primarily related to benefit plans from other comprehensive income to retained earnings. Houston Electric is currently assessing the impact that adoption of this standard will have on its financial position and disclosures.

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table disaggregates revenues by major source:



	Three Months Ended March 31,
	2018			2017
	(in millions)
Revenue from contracts	$	761		$	644
Other (1)	(6		)	(6		)
	$	755		$	638

(1)

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2018

Retirement Benefits [Abstract]

Schedule of Defined Benefit Plans Disclosures [Table Text Block]



	Three Months Ended March 31,
	2018			2017
	(in millions)
Interest cost (1)	$	2		$	2
Expected return on plan assets (1)	(1		)	(1		)
Amortization of prior service credit (1)	(1		)	(1		)
Net periodic cost	$	—		$	—


(1)	Included in Other, net in the Condensed Statements of Consolidated Income.

Regulatory Accounting (Tables)

3 Months Ended

Mar. 31, 2018

Regulatory Assets and Liabilities, Other Disclosures [Abstract]

Schedule of Regulatory Assets and Liabilities [Table Text Block]

The following is a list of regulatory assets and liabilities reflected on Houston Electric’s Condensed Consolidated Balance Sheets:



	March 31, 2018			December 31, 2017
	(in millions)
Regulatory Assets:
Non-current regulatory assets:
Securitized regulatory assets	$	1,455		$	1,590
Unrecognized equity return (1)	(266		)	(287		)
Unamortized loss on reacquired debt	74			75
Pension and postretirement-related regulatory asset	32			31
Hurricane Harvey restoration costs (2)	57			58
Regulatory assets related to TCJA (3)	33			33
Other long-term regulatory assets (4)	72			70
Total regulatory assets	1,457			1,570
Regulatory Liabilities:
Current regulatory liabilities (5)	14			22
Non-current regulatory liabilities:
Regulatory liabilities related to TCJA (3)	874			862
Estimated removal costs	282			285
Other long-term regulatory liabilities	109			116
Total non-current regulatory liabilities	1,265			1,263
Total regulatory liabilities	1,279			1,285
Total regulatory assets and liabilities, net	$	178		$	285

(1)


(2)	Houston Electric is not earning a return on its Hurricane Harvey restoration costs.


(3)	The EDIT and deferred revenues will be recovered or refunded to customers as required by tax and regulatory authorities.


(4)	Other long-term regulatory assets that are not earning a return were not material as of March 31, 2018 and December 31, 2017.


(5)	Current regulatory liabilities are included in Other current liabilities in Houston Electric’s Condensed Consolidated Balance Sheets.

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]



	March 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities:	(in millions)
Long-term debt, including the current portion	$	4,984	$	5,131	$	4,753	$	5,034

Related Party Transactions and Major Customers (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Money Pool Investment and Borrowing [Table Text Block]

The table below summarizes Houston Electric’s money pool activity:



	March 31, 2018			December 31, 2017
	(in millions)
Money pool investments (borrowings) (1)	$	133		$	(60	)
Weighted average interest rate	2.27		%	1.90		%


(1)	Included in Accounts and notes receivable (payable)–affiliated companies in the Condensed Consolidated Balance Sheets.

Amounts charged to and by Houston Electric for these services were as follows and are included primarily in operation and maintenance expenses:



	Three Months Ended March 31,
	2018			2017
	(in millions)
Corporate service charges	$	44		$	42
Charges from CERC for services provided	3			2
Billings to CERC for services provided	(5		)	(3		)

Houston Electric paid dividends on its common shares to Utility Holding, LLC as follows:



	Three Months Ended March 31,
	2018		2017
	(in millions)
Dividend to parent	$	32	$	32

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

Houston Electric’s transmission and distribution revenues from major customers are as follows:



	Three Months Ended March 31,
	2018		2017
	(in millions)
Affiliates of NRG	$	161	$	152
Affiliates of Vistra Energy Corp.	54		47

Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2018

Long-term Debt, Unclassified [Abstract]

Schedule of Debt [Table Text Block]

Debt Issuances. During the three months ended March 31, 2018, Houston Electric issued the following general mortgage bonds:



Issuance Date	Aggregate Principal Amount		Interest Rate	Maturity Date
	(in millions)
February 2018	$	400	3.95%	2048

Schedule of Line of Credit Facilities [Table Text Block]

Revolving Credit Facility. Houston Electric had the following revolving credit facility and utilization of such facility:



		March 31, 2018				December 31, 2017
Size of Facility		Loans		Letters of Credit		Loans		Letters of Credit
(in millions)
$	300	$	—	$	4	$	—	$	4

Execution Date

Size of

Facility

Draw Rate of LIBOR plus (1)

Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio (2)

Debt for Borrowed Money to Capital

Ratio as of

March 31, 2018 (3)

Termination Date

(in millions)

March 3, 2016

300

1.125%

65%

51.2%

March 3, 2022


(1)	Based on current credit ratings.

(2)


(3)	As defined in the revolving credit facility agreement, excluding Securitization Bonds.

Supplemental Disclosure of Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2018

Supplemental Cash Flow Elements [Abstract]

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

The table below provides supplemental disclosure of cash flow information:



	Three Months Ended March 31,
	2018		2017
Cash Payments/Receipts:	(in millions)
Interest, net of capitalized interest	$	61	$	64
Income taxes, net	16		—
Non-cash transactions:
Accounts payable related to capital expenditures	$	78	$	57



	March 31, 2018		December 31, 2017
	(in millions)
Cash and cash equivalents	$	191	$	238
Restricted cash included in Other current assets	37		35
Restricted cash included in Other non-current assets	1		1
Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows	$	229	$	274

Background and Basis of Presentation (Details) customer in Millions	Mar. 31, 2018 customer
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of metered customers	2.4

New Accounting Pronouncements (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accounting Standards Update 2016-15 [Member]
Effect of change on cash flow activities due to adoption of new ASU	$ 0	$ 2
Accounting Standards Update 2016-18 [Member]
Effect of change on cash flow activities due to adoption of new ASU	(2)	4
Accounting Standards Update 2017-07 [Member]
Increase to operating income and corresponding decrease to other net income from the adoption of ASU 2017-07	$ 7	$ 8

Revenue Recognition (Details) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2018

Mar. 31, 2017

Disaggregation of Revenue [Abstract]

Revenue from contracts

$ 761

$ 644

Other (1)

^[1]

(6)

Revenues

$ 755

$ 638

[1]

Employee Benefit Plans (Details) - Other Postretirement Benefit Plans [Member] - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2018

Mar. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

Net periodic cost

^[1]

$ 0

Expected contribution to postretirement benefit plan in current year

Total contribution to the plan during the period

Other, net [Member]

Defined Benefit Plan Disclosure [Line Items]

Interest cost (1)

Expected return on plan assets (1)

(1)

Amortization of prior service credit (1)

$ (1)

[1]	Included in Other, net in the Condensed Statements of Consolidated Income.

Regulatory Accounting (Details) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2018

Mar. 31, 2017

Dec. 31, 2017

Securitized regulatory assets

$ 1,455

$ 1,590

Unrecognized equity return (1)

^[1]

(266)

(287)

Unamortized loss on reacquired debt

Regulatory assets

1,457

1,570

Total regulatory assets

1,457

1,570

Regulatory liabilities

1,265

1,263

Total regulatory liabilities

1,279

1,285

Total regulatory assets and liabilities, net

178

285

Amount of allowed equity return on the true-up balance that was recognized in the period

$ 7

Hurricane Harvey [Member]

Regulatory assets

^[2]

Amounts related to TCJA [Member]

Regulatory liabilities

^[3]

874

862

Removal Costs [Member]

Regulatory liabilities

282

285

Other Regulatory Assets (Liabilities) [Member]

Regulatory liabilities

109

116

Pension and Other Postretirement Plans Costs [Member]

Regulatory assets

Other Regulatory Assets (Liabilities) [Member]

Regulatory assets

^[4]

Amounts related to TCJA [Member]

Regulatory assets

^[3]

Other current liabilities [Member]

Current regulatory liabilities (5)

^[5]

$ 14

$ 22

[1]	The unrecognized equity return will be recognized as it is recovered in rates through 2024. During the three months ended March 31, 2018 and 2017, Houston Electric recognized approximately $21 million and $7 million, respectively, of the allowed equity return. The timing of Houston Electric’s recognition of the equity return will vary each period based on amounts actually collected during the period. The actual amounts recognized are adjusted at least annually to correct any over-collections or under-collections during the preceding 12 months.
[2]	Houston Electric is not earning a return on its Hurricane Harvey restoration costs.
[3]	The EDIT and deferred revenues will be recovered or refunded to customers as required by tax and regulatory authorities.
[4]	Other long-term regulatory assets that are not earning a return were not material as of March 31, 2018 and December 31, 2017.
[5]	Current regulatory liabilities are included in Other current liabilities in Houston Electric’s Condensed Consolidated Balance Sheets.

Fair Value Measurements (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Transfer of Level 1 to Level 2 assets	$ 0
Transfer of Level 2 to Level 1 assets	0
Transfer of Level 1 to Level 2 liabilities	0
Transfer of Level 2 to Level 1 liabilities	0
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of investments	53,000,000	$ 51,000,000
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of assets or liabilities	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of assets or liabilities	0	0
Carrying Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term debt, including the current portion	4,984,000,000	4,753,000,000
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Long-term debt, including the current portion	$ 5,131,000,000	$ 5,034,000,000

Related Party Transactions and Major Customers (Details) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2018

Mar. 31, 2017

Dec. 31, 2017

Dividend to parent

$ 32

Revenues from major customers

755

638

Affiliates of NRG Energy, Inc. [Member]

Revenues from major customers

161

152

Affiliates of Vistra Energy Corp. [Member]

Revenues from major customers

Operation And Maintenance Expense [Member] | CenterPoint Energy [Member]

Corporate service charges

Operation And Maintenance Expense [Member] | CERC Corp [Member]

Corporate service charges

Other revenues from transactions with related party

$ (5)

$ (3)

Investments [Member]

Weighted average interest rate of money pool investments

2.27%

1.90%

Accounts and notes receivable (payable) - affiliate companies [Member]

Money pool investments (borrowings) (1)

^[1]

$ 133

$ (60)

[1]	Included in Accounts and notes receivable (payable)–affiliated companies in the Condensed Consolidated Balance Sheets.

Long-term Debt (Details)
$ in Millions

3 Months Ended

Feb. 28, 2018

USD ($)

Mar. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Debt Instrument [Line Items]

Size of credit facility

$ 300

General mortgage bonds used as collateral

118

Revolving Credit Facility [Member]

Debt Instrument [Line Items]

Long-term line of credit

Letter of Credit [Member]

Debt Instrument [Line Items]

Long-term line of credit

$ 4

Line of Credit [Member]

Debt Instrument [Line Items]

Percentage on limitation of debt to total capitalization under covenant

^[1]

65.00%

Percentage on limitation of debt to total capitalization under covenant amended (in hundredths)

70.00%

Ratio of indebtedness to net capital

^[2]

0.512

System restoration costs threshold for increase in permitted debt to EBITDA covenant ratio

$ 100

Consecutive period for system restoration costs to exceed $100 million (in months)

Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member]

Debt Instrument [Line Items]

Basis spread on LIBOR

^[3]

1.125%

Treasury Lock [Member] | January thru February [Member]

Debt Instrument [Line Items]

Aggregate notional amount

$ 200

Effective portion of realized gains

$ 5

General Mortgage Bonds Due 2048 [Member]

Debt Instrument [Line Items]

Principal amount of debt issued

$ 400

Interest rate of debt issued

3.95%

Maturity date of debt issued

Mar. 01, 2048

[1]	The financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and Houston Electric 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 Houston Electric delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of Houston Electric’s certification or (iii) the revocation of such certification.
[2]	As defined in the revolving credit facility agreement, excluding Securitization Bonds.
[3]	Based on current credit ratings.

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	22.00%	36.00%
Federal statutory income tax rate	21.00%	35.00%

Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016
Interest, net of capitalized interest	$ 61	$ 64
Income taxes, net	16	0
Accounts payable related to capital expenditures	78	57
Cash and cash equivalents	191		$ 238
Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows	229	$ 276	274	$ 381
Other Current Assets [Member]
Restricted cash	37		35
Other Noncurrent Assets [Member]
Restricted cash	$ 1		$ 1