CenterPoint Energy 2014 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2014 CenterPoint Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 197

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197

($3 million), partially offset by customer growth ($26 million) from the addition of over 44,000 new customers and higher transmission-
related
revenues net of the costs billed by transmission providers ($9 million).
Natural Gas Distribution
The following table provides summary data of our Natural Gas Distribution business segment for 2014 , 2013 and 2012
(in millions, except
throughput and customer data):
2014 Compared to 2013. Our Natural Gas Distribution business segment reported operating income of $287 million
for 2014 compared to
$263 million for 2013. Operating income increased $24 million primarily due to increased usage as a result of colder weather compared to the
prior year, partially mitigated by weather hedges and weather normalization adjustments ($16 million), rate increases ($37 million) and increased
economic activity across our footprint including the addition of approximately 36,000 customers ($10 million). These increases were partially
offset by increased contractor expense, including pipeline integrity work ($10 million), higher depreciation and amortization ($16 million), an
increase in taxes ($7 million), and increased other operating expenses ($6 million). Increased expense related to energy efficiency programs ($8
million) and increased expense related to higher gross receipt taxes ($4 million) were offset by a corresponding increase in the related revenues.
2013 Compared to 2012.
Our Natural Gas Distribution business segment reported operating income of $263 million for 2013 compared to
$226 million for 2012. Operating income increased $37 million primarily due to increased usage as a result of colder weather compared to the
prior year, partially mitigated by weather hedges and weather normalization adjustments ($29 million), rate increases ($29 million), and
increased economic activity across our footprint including the addition of approximately 33,000 residential customers ($7 million). These
increases were partially offset by increased operating expenses ($6 million), higher bad debt expense ($5 million), higher depreciation and
amortization expense ($12 million) and an increase in taxes ($5 million), primarily attributable to property taxes. Increased expense related to
energy efficiency programs ($17 million) and increased expense related to higher gross receipt taxes ($26 million) were offset by a
corresponding increase in the related revenues.
51
Year Ended December 31,
2014
2013
2012
Revenues
$
3,301
$
2,863
$
2,342
Expenses:
Natural gas
1,961
1,607
1,196
Operation and maintenance
700
667
637
Depreciation and amortization
201
185
173
Taxes other than income taxes
152
141
110
Total expenses
3,014
2,600
2,116
Operating Income
$
287
$
263
$
226
Throughput (in Bcf):
Residential
197
182
140
Commercial and industrial
270
265
243
Total Throughput
467
447
383
Number of customers at end of period:
Residential
3,124,542
3,090,966
3,058,695
Commercial and industrial
249,272
247,100
246,413
Total
3,373,814
3,338,066
3,305,108