CenterPoint Energy 2015 Annual Report Download - page 59

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• rateincreasesof$37million;and
• increasedeconomicactivityacrossourfootprintof$10million,includingtheadditionofapproximately36,000customers.
Theseincreaseswerepartiallyoffsetby:
• increasedcontractorexpenseof$10million,includingpipelineintegritywork;
•higherdepreciationandamortizationof$16million;
• increaseintaxesof$7million;and
• increasedotheroperatingexpensesof$6million.
Increasedexpenserelatedtoenergyefficiencyprogramsof$8millionandincreasedexpenserelatedtohighergrossreceipttaxesof$4millionwereoffsetby
acorrespondingincreaseintherelatedrevenues.
Energy Services
ThefollowingtableprovidessummarydataofourEnergyServicesbusinesssegmentfor2015,2014and2013:
Year Ended December 31,
2015
2014
2013
(in millions, except throughput and customer data)
Revenues $ 1,957
$ 3,179
$ 2,401
Expenses:
Naturalgas 1,867
3,073
2,336
Operationandmaintenance 42
47
46
Depreciationandamortization 5
5
5
Taxesotherthanincometaxes 1
2
1
Totalexpenses 1,915
3,127
2,388
OperatingIncome $ 42
$ 52
$ 13
Mark-to-marketgain(loss) $ 4
$ 29
$(2)
Throughput(inBcf) 618
631
600
Numberofcustomersatendofperiod(1) 18,099
17,964
17,510
(1) These numbers do not include approximately 9,700 and 8,800 natural gas customers as of December 31, 2014 and 2013, respectively, that are under
residentialandsmallcommercialchoiceprogramsinvoicedbytheirhostutility.
2015 Compared to 2014 . OurEnergyServicesbusinesssegmentreportedoperatingincomeof$42millionfor2015comparedto$52millionfor2014.The
decreaseinoperatingincomeof$10millionwasduetoa$25milliondecreasefrommark-to-marketaccountingforderivativesassociatedwithcertainnaturalgas
purchasesandsalesusedtolockineconomicmargins.In2015,a$4millionmark-to-marketbenefitwasrecordedascomparedtoabenefitof$29millionin2014.
Offsettingthisdecreasewasa$5millionreductioninoperationandmaintenanceexpensesanda$4million benefitrelatedtoalowerinventorywritedownin
2015.Theremainingincreaseinoperatingincomewasprimarilyduetoimprovedmarginsresultingfromreducedfixedcosts.
2014 Compared to 2013 . OurEnergyServicesbusinesssegmentreportedoperatingincomeof$52millionfor2014comparedto$13millionfor2013.The
increaseinoperatingincomeof$39millionwasprimarilyduetoa$31millionincreasefrommark-to-marketaccountingforderivativesassociatedwithcertain
naturalgaspurchasesandsalesusedtolockineconomicmargins.A$29millionmark-to-marketgainwasincurredin2014comparedtoachargeof$2millionin
2013. The remaining increase in operating income was primarily due to improved margins resulting from weather-related optimization of existing gas
transportationassets,reducedfixedcostsandincreasedthroughputandpricevolatility.
55