Financial Analysis

Commitments and Contingencies (a) Purchase Obligations (CenterPoint Energy and CERC) Commitments include minimum purchase obligations related to CenterPoint Energys and CERCs Natural Gas reportable segment and CenterPoint Energys Electric reportable segment. Contracts with minimum payment obligations have various quantity requirements and durations and are not classified as non-trading derivative assets and liabilities in CenterPoint Energys and CERCs Consolidated Balance Sheets as of December 31, 2025 and 2024 because these contracts meet an exception as normal purchases contracts or do not meet the definition of a derivative. Natural gas supply commitments also include transportation contracts that do not meet the definition of a derivative. As of December 31, 2025, CenterPoint Energy and CERC had the following undiscounted minimum purchase obligations: CenterPoint Energy CERC Natural Gas Supply Electric Supply (1) Other (2) Natural Gas Supply (in millions) 2026 $ 689 $ 131 $ 158 $ 684 2027 591 157 198 587 2028 546 98 137 542 2029 526 96 8 522 2030 484 80 117 480 Thereafter 1,344 1,574 1 1,322 Total $ 4,180 $ 2,136 $ 619 $ 4,137 (1) Primarily related to PPAs with commitments ranging from 20 years to 27 years. (2) Primarily related to technology hardware and software agreements. Excluded from the table above are estimates for cash outlays from other PPAs through Indiana Electric that do not have minimum thresholds but require payment when energy is generated by the provider. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt: The Registrants had the following short-term borrowings and long-term debt outstanding as of the dates presented: December 31, 2025 December 31, 2024 Long-Term Current (1) Long-Term Current (1) (in millions) CenterPoint Energy: ZENS due 2029 (2) $ $ $ $ 2 CenterPoint Energy senior notes 1.45% to 5.25% due 2026 to 2049 2,470 1,517 3,950 CenterPoint Energy Junior Subordinated Notes 5.95% to 7.00% due 2055 to 2056 2,000 1,300 CenterPoint Energy pollution control bonds 5.125% due 2028 (3) 68 68 CenterPoint Energy commercial paper (4) 420 382 SIGECO first mortgage bonds 3.45% to 6.18% due 2025 to 2055 (5) 1,459 944 41 SIGECO Securitization Bonds 5.026% to 5.172% due 2036 to 2041 (6) 299 13 311 13 Unamortized debt issuance costs (56) (3) (48) Unamortized discount and premium, net (3) (6) Houston Electric debt (see details below) 9,252 827 8,322 500 CERC debt (see details below) 4,657 60 5,174 10 Total CenterPoint Energy debt $ 20,566 $ 2,414 $ 20,397 $ 566 Houston Electric: Short Term Borrowings: Term loan (7) $ $ 500 $ $ 500 Long-term debt: General mortgage bonds 2.35% to 6.95% due 2026 to 2053 (8) 8,978 300 8,412 Other 1 1 Restoration Bond Company II Securitization Bonds 4.26% to 4.83% due 2035 to 2040 (9) 375 27 Unamortized debt issuance costs (73) (62) Unamortized discount and premium, net (29) (29) Total Houston Electric debt $ 9,252 $ 827 $ 8,322 $ 500 CERC (10): Senior notes 1.75% to 6.625% du …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregate revenues by reportable segment and major source for the periods presented: CenterPoint Energy Year Ended December 31, 2025 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 4,829 $ 4,503 $ 5 $ 9,337 Other (1) 37 (17) 3 23 Eliminations (3) (3) Total revenues $ 4,866 $ 4,483 $ 8 $ 9,357 Year Ended December 31, 2024 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 4,558 $ 3,990 $ 4 $ 8,552 Other (1) 32 58 3 93 Eliminations (2) (2) Total revenues $ 4,590 $ 4,046 $ 7 $ 8,643 Year Ended December 31, 2023 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 4,275 $ 4,210 $ 127 $ 8,612 Other (1) 15 69 3 87 Eliminations (3) (3) Total revenues $ 4,290 $ 4,276 $ 130 $ 8,696 (1) Primarily consists of income from ARPs and leases. Houston Electric Year Ended December 31, 2025 2024 2023 (in millions) Revenue from contracts with customers $ 4,054 $ 3,930 $ 3,684 Other (1) 30 9 (7) Total revenues $ 4,084 $ 3,939 $ 3,677 (1) Primarily consists of income from ARPs and leases. CERC Year Ended December 31, 2025 2024 2023 (in millions) Revenue from contracts with customers $ 4,362 $ 3,868 $ 4,083 Other (1) (18) 57 66 Total revenues $ 4,344 $ 3,925 $ 4,149 (1) Primarily consists of income from ARPs and leases. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Assets and liabilities that are recorded at fair value in the Registrants 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 generally are exchange-traded derivatives and equity securities. 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. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value the Registrants Level 2 interest rate derivative assets or liabilities and natural gas derivative assets or liabilities. CenterPoint Energys Level 2 indexed debt securities derivative is valued using an option model and a discounted cash flow model, which uses projected dividends on the ZENS-Related Securities and a discount rate as observable inp …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill (CenterPoint Energy and CERC) CenterPoint Energys goodwill by reportable segment is as follows for the periods presented: Electric (1) Natural Gas Corporate and Other Total (in millions) Balance at December 31, 2023 $ 936 $ 2,920 $ 304 $ 4,160 Held for Sale (2) 217 217 Balance at December 31, 2024 936 2,703 304 3,943 Held for Sale (3) 393 393 Balance at December 31, 2025 $ 936 $ 2,310 $ 304 $ 3,550 (1) Balances are presented net of the accumulated goodwill impairment charge of $185 million recorded in 2020. (2) Represents goodwill attributable to the Louisiana and Mississippi natural gas LDC businesses classified as held for sale as of December 31, 2024 and subsequently derecognized following completion of the sale on March 31, 2025. CenterPoint Energy did not recognize any goodwill impairments within the Natural Gas reportable segment for the year ended December 31, 2024. For further information, see Note 4. (3) Represents goodwill attributable to the Ohio natural gas LDC business classified as held for sale as of December 31, 2025. CenterPoint Energy did not recognize any goodwill impairments within the Natural Gas reportable segment for the year ended December 31, 2025. For further information, see Note 4. CERCs goodwill is as follows for the periods presented: Total (in millions) Balance at December 31, 2023 $ 1,583 Held for Sale (1) 122 Balance at December 31, 2024 1,461 Held for Sale (2) 219 Balance at December 31, 2025 $ 1,242 (1) Represents goodwill attributa …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The components of the Registrants income tax expense (benefit) were as follows for the periods presented: Year Ended December 31, 2025 2024 2023 (in millions) CenterPoint Energy Current income tax expense (benefit): Federal $ 64 $ (17) $ 106 State 9 (9) 33 Total current income tax expense (benefit) 73 (26) 139 Deferred income tax expense (benefit): Federal 174 218 119 State (52) 3 (88) Total deferred income tax expense 122 221 31 Total income tax expense $ 195 $ 195 $ 170 Year Ended December 31, 2025 2024 2023 (in millions) Houston Electric Current income tax expense (benefit): Federal $ 47 $ 62 $ (26) State 19 15 34 Total current income tax expense 66 77 8 Deferred income tax expense: Federal 80 60 159 State 1 1 1 Total deferred income tax expense 81 61 160 Total income tax expense $ 147 $ 138 $ 168 CERC Current income tax expense (benefit): Federal $ 88 $ 55 $ 12 State 1 (6) 3 Total current income tax expense 89 49 15 Deferred income tax expense (benefit): Federal 70 60 95 State (62) (5) (136) Total deferred income tax expense (benefit) 8 55 (41) Total income tax expense (benefit) $ 97 $ 104 $ (26) A reconciliation of income tax expense (benefit) using the federal statutory income tax rate to the actual income tax expense and resulting effective income tax rate were as follows for the periods presented: Year Ended December 31, 2025 2024 2023 Amount Percent Amount Percent Amount Percent (in millions, except percentages) CenterPoint Energy (1) (2) (3) (4) Income …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases In 2021, Houston Electric entered into a temporary short-term lease and long-term leases for TEEEF. The short-term lease agreement expired on December 31, 2022. Effective January 1, 2023, all TEEEF assets were leased under the long-term lease agreement. Expenses associated with the short-term lease, including carrying costs, are deferred to a regulatory asset and totaled $78 million and $89 million as of December 31, 2025 and 2024, respectively. The long-term lease agreement includes up to 519 MW of TEEEF, all of which was delivered as of December 31, 2022, triggering lease commencement at delivery, with an initial term ending in 2029 for all TEEEF leases. The remaining finance lease liability associated with the commenced long-term TEEEF agreement was not significant as of December 31, 2025 and 2024 and relates to removal costs that will be incurred at the end of the lease term. As of December 31, 2025, Houston Electric had secured a first lien on all the assets leased under the prepayment agreement. For TEEEF units included within the rate-regulated utilities, expenses associated with the long-term lease, including variable costs associated with the operation and maintenance of the TEEEF assets, depreciation expense on the right of use asset and carrying costs, are deferred to a regulatory asset as a recoverable cost under the 2021 Texas legislation and totaled $123 million and $158 million as of December 31, 2025 and 2024, respectively. For further discussion of the …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In September 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). This ASU modernizes the accounting for software costs to adapt to an incremental and iterative software development method. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and may be applied using a prospective, modified prospective or retrospective transition approach. The Registrants are currently evaluating the impact of this ASU on their respective consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures (ASU 2024-03). This ASU improves disclosure of a public business entitys expense by requiring disaggregated disclosure of expenses in commonly presented expense captions. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. Early adoption is permitted. The Registrants are currently evaluating the impact of this ASU on their respective consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). This ASU enhances the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-09 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Related Party Transactions (Houston Electric and CERC) Houston Electric and CERC participate in CenterPoint Energys money pool through which they 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 CenterPoint Energy money pool are expected to be met with borrowings under CenterPoint Energys revolving credit facility or the sale of CenterPoint Energys commercial paper. The table below summarizes CenterPoint Energy money pool activity as of the dates presented: December 31, 2025 December 31, 2024 Houston Electric CERC Houston Electric CERC (in millions, except interest rates) Money pool investments (borrowings) (1) $ (54) $ (291) $ 368 $ Weighted average interest rate 3.83 % 3.83 % 4.65 % % (1) Included in Accounts and notes payableaffiliated companies in Houston Electrics and CERCs respective Consolidated Balance Sheets as of December 31, 2025 and Accounts and notes receivableaffiliated companies in Houston Electrics Consolidated Balance Sheets as of December 31, 2024, as applicable. Houston Electric and CERC affiliate-related transactions were as follows for the periods presented: Year Ended December 31, 2025 2024 2023 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Interest income, net (1) $ 1 $ 7 $ 9 $ 2 $ 2 $ 10 (1) Interest income is included in Other, net on Houston Electrics and CERCs respective Statements of Co …

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Revenue In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Registrants expect to be entitled to receive in exchange for these goods or services. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-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. The following tables disaggregate revenues by reportable segment and major source for the periods presented: CenterPoint Energy Year Ended December 31, 2025 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 4,829 $ 4,503 $ 5 $ 9,337 Other (1) 37 (17) 3 23 Eliminations (3) (3) Total revenues $ 4,866 $ 4,483 $ 8 $ 9,357 Year Ended December 31, 2024 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 4,558 $ 3,990 $ 4 $ 8,552 Other (1) 32 58 3 93 Eliminations (2) (2) Total revenues $ 4,590 $ 4,046 $ 7 $ 8,643 Year En …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Reportable Segments The Registrants determination of reportable segments considers the strategic operating units under which its CODM manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. As of December 31, 2025, reportable segments by Registrant and information about each Registrants CODM were as follows: CenterPoint Energy CenterPoint Energys Electric reportable segment consisted of (i) electric transmission and distribution services in the Texas Gulf Coast area in the ERCOT region; (ii) electric transmission and distribution services primarily to southwestern Indiana, and (iii) power generation and wholesale power operations in the MISO region. CenterPoint Energys Natural Gas reportable segment following the closing of the sale of the Louisiana and Mississippi natural gas LDC businesses on March 31, 2025 consisted of (i) intrastate natural gas sales to, and natural gas transportation and distribution for, residential, commercial and industrial customers in Indiana, Minnesota, Ohio and Texas; and (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP. On October 20, 2025, CenterPoint Energy, through CERC Corp., entered into the Ohio Securities Purchase Agreement to sell all of the issued and outstanding equity interests in CEOH. The transaction is expected to close in the fourth quarter of 202 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies (a) Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP 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. (b) Revenues The Registrants record revenue for electricity delivery and natural gas sales and services under the accrual method and these revenues are recognized upon delivery to customers. Electricity deliveries not billed by month-end are accrued based on actual AMS meter data, supply volumes, estimated line loss and applicable tariff rates. Natural gas sales not billed by month-end are accrued based upon estimated purchased gas volumes, estimated lost and unaccounted for gas and currently effective tariff rates. For further discussion, see Note 5. (c) MISO Transactions Indiana Electric is a member of the MISO. MISO-related purchase and sale transactions are recorded using settlement information provided by the MISO. These purchase and sale transactions are accounted for on at least a net hourly position, in which net purchases within that interval are recorded as Utility natural gas, fuel and purchased power and net sales within that interval are recorded as Utility revenues on CenterPoint Energys Statem …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Equity (CenterPoint Energy) Dividends Declared and Paid (CenterPoint Energy) CenterPoint Energys dividends declared and dividends paid are as follows for the periods presented: Dividends Declared Per Share Dividends Paid Per Share 2025 2024 2023 2025 2024 2023 Common Stock $ 0.890 $ 0.830 $ 0.780 $ 0.880 $ 0.810 $ 0.770 Series A Preferred Stock (1) $ $ $ 30.625 $ $ $ 61.250 (1) All of the outstanding shares of Series A Preferred Stock were redeemed during 2023 as further described below. Common Stock (CenterPoint Energy) (a) Underwritten Offering On August 9, 2024, CenterPoint Energy issued 9,754,194 shares of Common Stock in an underwritten public offering at a price of $25.36 per share, for net proceeds of $247 million after deducting issuance costs. The proceeds from the offering were used for the repayment of a portion of CenterPoint Energys then-outstanding commercial paper. (b) Equity Distribution Agreement On January 10, 2024, CenterPoint Energy entered into an Equity Distribution Agreement with certain financial institutions with respect to the offering and sale from time to time of shares of Common Stock, having an aggregate gross sales price of up to $500 million. Sales of Common Stock may be made by any method permitted by applicable law and deemed to be an at the market offering as defined in Rule 415 of the Securities Act. The offer and sale of Common Stock under the Equity Distribution Agreement will terminate upon the earliest of (1) the sale of all Common Stoc …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events CERC Term Loan In January 2026, CERC Corp. entered into a delayed draw term loan agreement pursuant to which the banks party thereto have committed to provide term loans in an aggregate principal amount of up to $800 million by March 30, 2026 in up to three separate borrowings, subject to the satisfaction or waiver of certain customary conditions. If not fully utilized, the term loan commitments expire on March 31, 2026. The maturity date of the term loan is July 16, 2027. The borrowings under the term loan agreement bear interest at CERCs option, at a rate per annum equal to either (i) Term SOFR (as defined in the term loan agreement), plus a margin of 0.85%, or (ii) the Alternate Base Rate (as defined in the term loan agreement). CERC Corp. borrowed $500 million on January 20, 2026, and expects to borrow the remaining $300 million during the first quarter of 2026. CERC intends to use the proceeds thereof for general corporate purposes. CERC Prepayment Notice On February 11, 2026, CERC Corp. commenced sending out notices of full prepayment relating to (i) $10 million aggregate principal amount of its 4.25% Senior Notes, Series B, due June 5, 2043, (ii) $40 million aggregate principal amount of its 4.36% Senior Notes, Series B, due December 15, 2045, (iii) $35 million aggregate principal amount of its 5.99% Senior Notes, Series C, due November 30, 2041, (iv) $60 million aggregate principal amount of its 5.02% Senior Notes, Series B, due November 30, 2026 and …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies (a) Purchase Obligations (CenterPoint Energy and CERC) Commitments include minimum purchase obligations related to CenterPoint Energys and CERCs Natural Gas reportable segment and CenterPoint Energys Electric reportable segment. Contracts with minimum payment obligations have various quantity requirements and durations and are not classified as non-trading derivative assets and liabilities in CenterPoint Energys and CERCs Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 because these contracts meet an exception as normal purchases contracts or do not meet the definition of a derivative. Natural gas supply commitments also include transportation contracts that do not meet the definition of a derivative. As of June 30, 2026, CenterPoint Energy and CERC had the following undiscounted minimum purchase obligations: CenterPoint Energy CERC Natural Gas Supply Electric Supply (1) Other (2) Natural Gas Supply (in millions) Remainder of 2026 $ 330 $ 56 $ 71 $ 327 2027 623 127 156 616 2028 576 100 142 570 2029 555 98 10 549 2030 507 81 2 501 Thereafter 1,377 1,538 52 1,353 Total $ 3,968 $ 2,000 $ 433 $ 3,916 (1) Primarily related to PPAs with commitments ranging from 20 years to 27 years. (2) Primarily related to commitments for utility equipment, including meters and transformers, with the remaining commitments related to information technology services and software. Excluded from the table above are estimates for cash outlay …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Short-term Borrowings and Long-term Debt Debt Issuances. In January 2026, CERC Corp. entered into a delayed draw term loan agreement pursuant to which the banks party thereto committed to provide term loans in an aggregate principal amount of up to $800 million by March 30, 2026 in up to three separate borrowings, subject to the satisfaction or waiver of certain customary conditions. The maturity date of the term loan is July 16, 2027. The borrowings under the term loan agreement bear interest at CERCs option, at a rate per annum equal to either (i) Term SOFR (as defined in the term loan agreement), plus a margin of 0.85%, or (ii) the Alternate Base Rate (as defined in the term loan agreement). CERC Corp. borrowed $500 million on January 20, 2026 and borrowed the remaining $300 million on March 25, 2026. CERC used the proceeds thereof for general corporate purposes. In February 2026, Restoration Bond Company III issued and sold approximately $1.193 billion aggregate principal amount of the Restoration Bond Company III Securitization Bonds in three tranches with initial principal amounts of $298,370,000, $397,825,000 and $497,279,000, with interest rates of 3.899%, 4.480% and 4.864% and scheduled final payment dates of December 2030, June 2035 and December 2039, respectively. Restoration Bond Company III used the net proceeds from the issuance to purchase the system restoration property from Houston Electric. In February 2026, Houston Electric issued and sold $800 million aggr …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregate revenues by reportable segment and major source for the periods presented: CenterPoint Energy Three Months Ended June 30, 2026 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 1,381 $ 775 $ 3 $ 2,159 Other (1) (9) 2 1 (6) Eliminations (1) (1) Total revenues $ 1,372 $ 777 $ 3 $ 2,152 Three Months Ended June 30, 2025 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 1,195 $ 756 $ 2 $ 1,953 Other (1) (4) (5) 1 (8) Eliminations (1) (1) Total revenues $ 1,191 $ 750 $ 3 $ 1,944 Six Months Ended June 30, 2026 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 2,594 $ 2,535 $ 5 $ 5,134 Other (1) (13) 7 2 (4) Eliminations (1) (2) (3) Total revenues $ 2,581 $ 2,541 $ 5 $ 5,127 Six Months Ended June 30, 2025 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 2,267 $ 2,639 $ 3 $ 4,909 Other (1) (10) (35) 2 (43) Eliminations (2) (2) Total revenues $ 2,257 $ 2,602 $ 5 $ 4,864 (1) Primarily consists of the impact of ARPs and leases. Houston Electric Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) Revenue from contracts with customers $ 1,180 $ 1,014 $ 2,182 $ 1,906 Other (1) (13) (6) (24) (14) Total revenues $ 1,167 $ 1,008 $ 2,158 $ 1,892 (1) Primarily consists of the impact of ARPs and leases. CERC Three Months Ended …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Assets and liabilities that are recorded at fair value in the Registrants 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 generally are exchange-traded derivatives and equity securities. 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. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value the Registrants Level 2 interest rate derivative assets or liabilities and natural gas derivative assets or liabilities, if any. CenterPoint Energys Level 2 indexed debt securities derivative is valued using an option model and a discounted cash flow model, which uses projected dividends on the ZENS-Related Securities and a discount rate …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The Registrants reported the following effective tax rates for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 CenterPoint Energy (1) 18 % 22 % 21 % 22 % Houston Electric (2) 19 % 20 % 19 % 20 % CERC (3) 11 % 11 % 22 % 22 % (1) CenterPoint Energys lower effective tax rate for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was due primarily to a decrease in nondeductible goodwill and a decrease in state taxes. CenterPoint Energys lower effective tax rate for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was due primarily to a decrease in nondeductible goodwill. (2) Houston Electrics lower effective tax rate for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily driven by a decrease in state income taxes. Houston Electrics lower effective tax rate for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily driven by a decrease in state income taxes. (3) CERCs effective tax rate did not change for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Increases in state income taxes were offset by decreases in nondeductible goodwill. CERCs effective tax rate did not change for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Lower state tax expense and nondeductible goodwill was offset by a d …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes recognition, measurement, presentation, and disclosure requirements for environmental credits and related environmental credit obligations. The guidance is effective for public business entities for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. The requirements will be applied on a retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period of adoption. Early adoption is permitted. The Registrants are currently assessing the impact of adopting this standard on their respective consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). This ASU modernizes the accounting for software costs to adapt to an incremental and iterative software development method. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, and may be applied using a prospective, modified prospective or retrospective transition approach. The Registrants are currently evaluating the impact of this ASU on their respective consolidated financial statements. In November 2024, the …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans The Registrants 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 pension and postretirement benefits for the periods presented: Pension Benefits (CenterPoint Energy) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) Service cost (1) $ 6 $ 6 $ 13 $ 12 Interest cost (2) 19 19 38 39 Expected return on plan assets (2) (20) (20) (41) (40) Amortization of net loss (2) 8 7 15 14 Settlement income (1) (1) Net periodic cost $ 12 $ 12 $ 24 $ 25 (1) Included in Operation and maintenance expense in CenterPoint Energys Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. (2) Included in Other income, net in CenterPoint Energys Condensed Statements of Consolidated Income, net of regulatory deferrals. Postretirement Benefits Three Months Ended June 30, 2026 2025 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Interest cost (1) $ 4 $ 2 $ 1 $ 4 $ 2 $ 1 Expected return on plan assets (1) (2) (1) (1) (2) (1) (1) Amortization of prior service cost (credit) (1) (2) (1) Amortization of net loss (1) (2) (1) (3) (2) (1) Net periodic cost (benefit) $ $ (2) $ $ (1) $ (2) $ (1) Six Months Ended June 30, 2026 2025 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electr …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Related Party Transactions (Houston Electric and CERC) Houston Electric and CERC participate in CenterPoint Energys money pool through which they 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 CenterPoint Energy money pool are expected to be met with borrowings under CenterPoint Energys revolving credit facility or the sale of CenterPoint Energys commercial paper. The table below summarizes CenterPoint Energy money pool activity as of the periods presented: June 30, 2026 December 31, 2025 Houston Electric CERC Houston Electric CERC (in millions, except interest rates) Money pool investments (borrowings) (1) $ 182 $ $ (54) $ (291) Weighted average interest rate 3.85 % % 3.83 % 3.83 % (1) Included in Accounts and notes receivableaffiliated companies in Houston Electrics Condensed Consolidated Balance Sheets as of June 30, 2026 and Accounts and notes payableaffiliated companies in Houston Electrics and CERCs respective Condensed Consolidated Balance Sheets as of December 31, 2025. Houston Electric and CERC affiliate-related transactions were as follows for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Interest income (expense), net (1) $ 3 $ (2) $ (2) $ 9 $ 4 $ (3) $ $ 10 (1) Interest income is inc …

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Revenue The following tables disaggregate revenues by reportable segment and major source for the periods presented: CenterPoint Energy Three Months Ended June 30, 2026 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 1,381 $ 775 $ 3 $ 2,159 Other (1) (9) 2 1 (6) Eliminations (1) (1) Total revenues $ 1,372 $ 777 $ 3 $ 2,152 Three Months Ended June 30, 2025 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 1,195 $ 756 $ 2 $ 1,953 Other (1) (4) (5) 1 (8) Eliminations (1) (1) Total revenues $ 1,191 $ 750 $ 3 $ 1,944 Six Months Ended June 30, 2026 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 2,594 $ 2,535 $ 5 $ 5,134 Other (1) (13) 7 2 (4) Eliminations (1) (2) (3) Total revenues $ 2,581 $ 2,541 $ 5 $ 5,127 Six Months Ended June 30, 2025 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts with customers $ 2,267 $ 2,639 $ 3 $ 4,909 Other (1) (10) (35) 2 (43) Eliminations (2) (2) Total revenues $ 2,257 $ 2,602 $ 5 $ 4,864 (1) Primarily consists of the impact of ARPs and leases. Houston Electric Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) Revenue from contracts with customers $ 1,180 $ 1,014 $ 2,182 $ 1,906 Other (1) (13) (6) (24) (14) Total revenues $ 1,167 $ 1,008 $ 2,158 $ 1,892 (1) Primarily consists of the impact of ARPs and leases. CERC Three Mont …

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Reportable Segments The Registrants determination of reportable segments considers the strategic operating units under which the CODM manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. As of June 30, 2026, reportable segments by Registrant and information about each Registrants CODM were as follows: CenterPoint Energy CenterPoint Energys Electric reportable segment consisted of (i) electric transmission and distribution services in the Texas Gulf Coast area in the ERCOT region; (ii) electric transmission and distribution services primarily to southwestern Indiana; and (iii) power generation and wholesale power operations in the MISO region. CenterPoint Energys Natural Gas reportable segment following the closing of the sale of the Louisiana and Mississippi natural gas LDC businesses on March 31, 2025 consisted of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, and industrial customers in Indiana, Minnesota, Ohio and Texas; and (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP. On October 20, 2025, CenterPoint Energy, through CERC Corp., entered into the Ohio Securities Purchase Agreement to sell all of the issued and outstanding equity interests in CEOH. The transaction is expected to close in the fourth quarter of 2026, s …

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Equity (CenterPoint Energy) Dividends Declared and Paid (CenterPoint Energy) CenterPoint Energys dividends declared and dividends paid are presented below: Dividends Declared Per Share Dividends Paid Per Share Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 2026 2025 2026 2025 Common Stock $ 0.230 $ 0.220 $ 0.230 $ 0.220 $ 0.230 $ 0.220 $ 0.460 $ 0.440 Common Stock (CenterPoint Energy) (a) Equity Distribution Agreement On May 15, 2026, CenterPoint Energy entered into a 2026 Equity Distribution Agreement with respect to the offering and sale from time to time of shares of Common Stock, having an aggregate gross sales price of up to $1 billion. Upon entry into the 2026 Equity Distribution Agreement, CenterPoint Energy terminated the 2024 Equity Distribution Agreement. At the time of such termination, Common Stock having an aggregate gross sales price of approximately $85 million remained unsold under such prior program. Sales of Common Stock may be made by any method permitted by applicable law and deemed to be an at the market offering as defined in Rule 415 of the Securities Act. CenterPoint Energy may also enter into one or more forward sale agreements with the 2026 ATM Forward Purchasers pursuant to master forward confirmations and related supplemental confirmations. The offer and sale of Common Stock under the 2026 Equity Distribution Agreement will terminate upon the earliest of (1) the sale o …

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Subsequent Events Dividends Declared (CenterPoint Energy) Equity Instrument Declaration Date Record Date Payment Date Per Share Common Stock July 15, 2026 August 20, 2026 September 10, 2026 $ 0.240

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