CenterPoint Energy 2013 Annual Report Download - page 30

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As of December 31, 2013, Enable’s assets included approximately 11,000 miles of gathering pipelines, 12 major processing
plants with approximately 2.1 Bcf/d of processing capacity, approximately 7,900 miles of interstate pipelines (including SESH),
approximately 2,300 miles of intrastate pipelines and eight storage facilities comprising 86.5 Bcf of storage capacity.
Enable’s Gathering and Processing segment. Enable provides gathering, processing, treating, compression, dehydration and
natural gas liquids (NGL) fractionation for natural gas producers. Six of Enable’s processing plants in the Anadarko basin are
interconnected via its large-diameter, rich gas gathering system in western Oklahoma, which spans 18 counties and has
approximately 1.2 Bcf/d of processing capacity. Enable refers to this system as its “super-header” system. Enable has configured
this system to optimize the flow of natural gas and the utilization of the processing plants connected to it. Enable has made
investments to expand the super-header system, including its newest plant located in Custer County, Oklahoma (the McClure
Plant) that was placed in service in December 2013. The McClure Plant increased Enable’s natural gas processing capacity in the
basin by over 15%, providing an additional 200 MMcf/d of natural gas processing capacity. Enable expects to continue to grow
the capacity of the super-header system through the planned addition of another new cryogenic processing plant and related
gathering pipelines. The new plant, which will be located in Grady County, Oklahoma (the Bradley plant), will provide an additional
200 MMcf/d of processing capacity and is expected to be completed in the first quarter of 2015.
Enable’s gathering and processing systems compete with gatherers and processors of all types and sizes, including those
affiliated with various producers, other major pipeline companies and various independent midstream entities. Enable’s primary
competitors are master limited partnerships who are active in the regions where it operates. In the process of selling NGLs, Enable
competes against other natural gas processors extracting and selling NGLs.
Enable’s Transportation and Storage segment. Enable’s natural gas transportation and storage business segment consists of
its interstate pipelines, its intrastate pipelines and its storage assets. Enable provides pipeline takeaway capacity for natural gas
producers from supply basins to market hubs and critical natural gas supply for industrial end users and utilities, such as local
distribution companies (LDCs) and power generators. Enable’s interstate pipeline system, including SESH, includes approximately
7,900 miles of transportation pipelines and extends from western Oklahoma and the Texas Panhandle to Alabama and from
Louisiana to Illinois. Enable’s eight storage facilities in Oklahoma, Louisiana and Illinois have 86.5 Bcf of storage capacity.
Enable generates revenue primarily by charging demand fees pursuant to applicable tariffs for the transportation and storage
of natural gas on its system.
Enable’s interstate pipelines compete with other interstate and intrastate pipelines. The principal elements of competition
among pipelines are rates, terms of service, and flexibility and reliability of service.
SESH. CenterPoint Southeastern Pipelines Holding, LLC, a wholly owned subsidiary of CERC, owned a 25.05% interest in
SESH as of December 31, 2013. SESH owns a 1.0 Bcf per day, 274-mile interstate pipeline that runs from the Perryville Hub in
Louisiana to Coden, Alabama. The pipeline was placed into service in the third quarter of 2008. The rates charged by SESH for
interstate transportation services are regulated by the FERC.
On May 1, 2013, CenterPoint Energy contributed a 24.95% interest in SESH to Enable. CERC has certain put rights, and
Enable has certain call rights, exercisable with respect to the 25.05% interest in SESH retained by CERC, under which CERC
would contribute its retained interest in SESH, in exchange for a specified number of limited partner units in Enable and a cash
payment, payable either from CERC to Enable or from Enable to CERC, for changes in the value of SESH. Affiliates of Spectra
Energy Corp own the remaining 50% interest in SESH.
Other Operations
Our Other Operations business segment includes office buildings and other real estate used in our business operations and
other corporate operations that support all of our business operations.
Financial Information About Segments
For financial information about our segments, see Note 17 to our consolidated financial statements, which note is incorporated
herein by reference.