[10-Q] CENTERPOINT ENERGY INC Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
CenterPoint Energy reported stronger results for Q3 2025. Revenue was $1,988 million versus $1,856 million a year ago, and operating income rose to $502 million from $424 million. Net income increased to $293 million from $193 million, with diluted EPS of $0.45 versus $0.30. Other income and expenses largely offset each other as gains on indexed debt securities were balanced by losses on equity securities and higher interest expense of $238 million versus $191 million.
Year to date, revenue reached $6,852 million (up from $6,381 million) and net income was $788 million (vs. $771 million). Operating cash flow for the nine months was $1,712 million, supporting capital expenditures of $3,389 million. Segment detail shows Houston Electric Q3 revenue of $1,132 million and net income of $231 million, while CERC posted total Q3 revenue of $607 million and operating income of $66 million. Shares outstanding were 652,868,273 as of October 20, 2025.
CenterPoint Energy ha riportato risultati più robusti nel terzo trimestre del 2025. Le entrate sono state di 1.988 milioni di dollari rispetto a 1.856 milioni di dollari un anno prima, e l’utile operativo è salito a 502 milioni di dollari da 424 milioni di dollari. L’utile netto è aumentato a 293 milioni di dollari da 193 milioni di dollari, con un utile per azione diluito di 0,45 dollari rispetto a 0,30. Altre entrate e spese hanno in gran parte compensato l’una con l’altra, poiché i guadagni su titoli indicizzati sono stati bilanciati da perdite su titoli azionari e da un maggior onere finanziario di 238 milioni rispetto a 191 milioni.
Anno fino ad oggi, le entrate hanno raggiunto 6.852 milioni di dollari (in aumento dai 6.381 milioni) e l’utile netto è stato di 788 milioni (contro 771 milioni). Il flusso di cassa operativo nei nove mesi è stato di 1.712 milioni, a supporto degli investimenti in capitale di 3.389 milioni. Il dettaglio per segmento mostra che l’energia elettrica di Houston nel terzo trimestre ha ricavi di 1.132 milioni e utile netto di 231 milioni, mentre CERC ha registrato entrate totali di 607 milioni e reddito operativo di 66 milioni. Le azioni in circolazione erano 652.868.273 al 20 ottobre 2025.
CenterPoint Energy reportó resultados más fuertes para el tercer trimestre de 2025. Los ingresos fueron 1.988 millones de dólares frente a 1.856 millones de dólares hace un año, y el ingreso operativo aumentó a 502 millones de dólares desde 424 millones de dólares. El ingreso neto aumentó a 293 millones de dólares desde 193 millones de dólares, con una ganancia por acción diluida de 0,45 dólares frente a 0,30. Otros ingresos y gastos se compensaron en gran medida entre sí, ya que las ganancias en valores de deuda indexados fueron equilibradas por pérdidas en valores de acciones y un mayor costo por intereses de 238 millones frente a 191 millones.
Año hasta la fecha, los ingresos alcanzaron 6.852 millones de dólares (desde 6.381 millones) y el ingreso neto fue de 788 millones (frente a 771 millones). El flujo de efectivo operativo de los nueve meses fue de 1.712 millones, para apoyar inversiones de capital de 3.389 millones. El detalle por segmento muestra que los ingresos de Houston Electric en el tercer trimestre fueron de 1.132 millones y el ingreso neto de 231 millones, mientras que CERC registró ingresos totales de 607 millones y un ingreso operativo de 66 millones. Las acciones en circulación eran 652,868,273 a 20 de octubre de 2025.
CenterPoint Energy는 2025년 3분기에 더 강한 실적을 보고했습니다. 매출은 전년 동기 19억8800만 달러에서 19억8600만 달러로 증가했고, 영업이익은 5억2000만 달러에서 4억2400만 달러로 올랐습니다. 순이익은 2억9300만 달러로 증가했고 희석주당순이익은 0.45달러로 0.30달러를 상회했습니다. 기타 수익과 비용은 주로 서로 상쇄했으며, 지수화된 채무증권의 이익은 주식증권의 손실 및 이자비용 증가로 2.38억 달러에 비례했습니다.
연도 누계로는 매출이 68억5200만 달러에 도달했고(전년동기 63억8100만 달러 대비), 순이익은 7억8800만 달러로 나타났습니다(전년동기 7억7100만 달러 대비). 9개월간 영업현금흐름은 17억1200만 달러로, 자본지출 33억8900만 달러를 지원했습니다. 부문별 세부정보로는 휴스턴 전력의 3분기 매출이 11억3200만 달러, 순이익은 2억3100만 달러였고, CERC는 3분기 매출 6억7천만 달러, 영업이익 6600만 달러를 기록했습니다. 2025년 10월 20일 기준 주식 수는 652,868,273주였습니다.
CenterPoint Energy a affiché des résultats plus solides au T3 2025. Le chiffre d’affaires s’est élevé à 1 988 millions de dollars contre 1 856 millions de dollars il y a un an, et le résultat opérationnel a progressé à 502 millions de dollars contre 424 millions de dollars. Le bénéfice net a augmenté à 293 millions de dollars contre 193 millions de dollars, avec un BPA dilué de 0,45 $ contre 0,30 $. Les autres revenus et charges se compensent largement, les gains sur les titres de dette indexés étant équilibrés par des pertes sur des titres actions et un coût d’intérêts plus élevé de 238 millions de dollars contre 191 millions.
YTD, le chiffre d’affaires atteint 6 852 millions de dollars (contre 6 381 millions) et le bénéfice net est de 788 millions (vs 771 millions). Le flux de trésorerie opérationnel sur neuf mois s’élève à 1 712 millions, soutenant des dépenses d’investissement en capital de 3 389 millions. Le détail par segment montre que les revenus de Houston Electric au T3 s’établissent à 1 132 millions et le bénéfice net à 231 millions, tandis que CERC affiche des revenus totaux de 607 millions et un résultat opérationnel de 66 millions. Les actions en circulation étaient de 652 868 273 au 20 octobre 2025.
CenterPoint Energy meldete robuste Ergebnisse im Q3 2025. Der Umsatz betrug 1.988 Millionen US-Dollar gegenüber 1.856 Millionen US-Dollar im Vorjahr, und das operative Ergebnis stieg auf 502 Millionen US-Dollar von 424 Millionen US-Dollar. Der Nettogewinn zog auf 293 Millionen US-Dollar von 193 Millionen US-Dollar an, mit einer verdünnten Gewinn pro Aktie von 0,45 US-Dollar gegenüber 0,30. Sonstige Erträge und Aufwendungen wirkten sich größtenteils aus, da Gewinne aus indexierten Schuldverschreibungen durch Verluste aus Aktienwerten und höhere Zinsaufwendungen von 238 Millionen gegenüber 191 Millionen ausgeglichen wurden.
Year to date betrug der Umsatz 6.852 Millionen US-Dollar (gegenüber 6.381 Millionen) und der Nettogewinn lag bei 788 Millionen (vs. 771 Millionen). Der operative Cashflow für die neun Monate betrug 1.712 Millionen und unterstützte Investitionen in Sachanlagen von 3.389 Millionen. Segmentdetails zeigen, dass der Umsatz von Houston Electric im Q3 1.132 Millionen und der Nettogewinn 231 Millionen betrugen, während CERC einen Umsatz von 607 Millionen und ein operatives Ergebnis von 66 Millionen verzeichnete. Die Anzahl der ausgegebenen Aktien betrug zum 20. Oktober 2025 652.868.273.
CenterPoint Energy أبلغت عن نتائج أقوى للربع الثالث من 2025. بلغت الإيرادات 1,988 مليون دولار مقابل 1,856 مليون دولار قبل عام، وارتفع الدخل التشغيلي إلى 502 مليون دولار من 424 مليون دولار. ارتفع صافي الدخل إلى 293 مليون دولار من 193 مليون دولار، مع ربحية السهم المخفف البالغة 0.45 دولار مقابل 0.30 دولار. وعمولات وأرباح أخرى تعادل بعضها بعضاً إلى حد كبير حيث تمت موازنة مكاسب الأوراق المالية المرتبطة بالمؤشرات بخسائر الأوراق المالية وارتفاع تكلفة الفوائد إلى 238 مليون دولار مقابل 191 مليون دولار.
حتى تاريخ السنة بلغت الإيرادات 6,852 مليون دولار (من 6,381 مليون) وكان صافي الدخل 788 مليون دولار (مقابل 771 مليون دولار). بلغ التدفق النقدي التشغيلي للثلاثة أرباع 1,712 مليون دولار، دعماً للنفقات الرأسمالية البالغة 3,389 مليون دولار. يبين تفصيل القطاعات أن إيرادات Houston Electric في الربع الثالث كانت 1,132 مليون دولار وصافي ربح قدره 231 مليون دولار، في حين سجلت CERC إيرادات كلية قدرها 607 مليون دولار ودخل تشغيلي قدره 66 مليون دولار. كانت نسبة الأسهم القائمة 652,868,273 سهم حتى 20 أكتوبر 2025.
CenterPoint Energy 在2025年第三季度报告了更强劲的业绩。收入为19.88亿美元，较一年前的18.56亿美元增长，经营利润从4.24亿美元增至5.02亿美元。净收入增至2.93亿美元，摊薄后每股收益为0.45美元，高于0.30美元。其他收益和支出基本相抵，因以指数化债务证券的收益被股票证券的亏损以及更高的利息支出（2.38亿美元）所抵消。
截至本年至今，收入达到68.52亿美元（高于63.81亿美元），净利润为7.88亿美元（对比7.71亿美元）。前九个月的经营性现金流为17.12亿美元，用于支持资本性支出33.89亿美元。分部明细显示，第三季度休斯敦电力的收入为11.32亿美元，净利润为2.31亿美元，而CERC的总收入为6.07亿美元，经营利润为6,600万美元。截至2025年10月20日，流通在外的股数为652,868,273股。
Positive
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Insights
Q3 profit rose; cash generation funded heavy capex.
CenterPoint Energy delivered Q3 revenue of
Below the line, interest expense rose to
Key dependencies include regulatory cost recovery and execution of planned capital programs. Actual impact on future results will depend on rate outcomes and segment performance detailed in ongoing filings.
CenterPoint Energy ha riportato risultati più robusti nel terzo trimestre del 2025. Le entrate sono state di 1.988 milioni di dollari rispetto a 1.856 milioni di dollari un anno prima, e l’utile operativo è salito a 502 milioni di dollari da 424 milioni di dollari. L’utile netto è aumentato a 293 milioni di dollari da 193 milioni di dollari, con un utile per azione diluito di 0,45 dollari rispetto a 0,30. Altre entrate e spese hanno in gran parte compensato l’una con l’altra, poiché i guadagni su titoli indicizzati sono stati bilanciati da perdite su titoli azionari e da un maggior onere finanziario di 238 milioni rispetto a 191 milioni.
Anno fino ad oggi, le entrate hanno raggiunto 6.852 milioni di dollari (in aumento dai 6.381 milioni) e l’utile netto è stato di 788 milioni (contro 771 milioni). Il flusso di cassa operativo nei nove mesi è stato di 1.712 milioni, a supporto degli investimenti in capitale di 3.389 milioni. Il dettaglio per segmento mostra che l’energia elettrica di Houston nel terzo trimestre ha ricavi di 1.132 milioni e utile netto di 231 milioni, mentre CERC ha registrato entrate totali di 607 milioni e reddito operativo di 66 milioni. Le azioni in circolazione erano 652.868.273 al 20 ottobre 2025.
CenterPoint Energy reportó resultados más fuertes para el tercer trimestre de 2025. Los ingresos fueron 1.988 millones de dólares frente a 1.856 millones de dólares hace un año, y el ingreso operativo aumentó a 502 millones de dólares desde 424 millones de dólares. El ingreso neto aumentó a 293 millones de dólares desde 193 millones de dólares, con una ganancia por acción diluida de 0,45 dólares frente a 0,30. Otros ingresos y gastos se compensaron en gran medida entre sí, ya que las ganancias en valores de deuda indexados fueron equilibradas por pérdidas en valores de acciones y un mayor costo por intereses de 238 millones frente a 191 millones.
Año hasta la fecha, los ingresos alcanzaron 6.852 millones de dólares (desde 6.381 millones) y el ingreso neto fue de 788 millones (frente a 771 millones). El flujo de efectivo operativo de los nueve meses fue de 1.712 millones, para apoyar inversiones de capital de 3.389 millones. El detalle por segmento muestra que los ingresos de Houston Electric en el tercer trimestre fueron de 1.132 millones y el ingreso neto de 231 millones, mientras que CERC registró ingresos totales de 607 millones y un ingreso operativo de 66 millones. Las acciones en circulación eran 652,868,273 a 20 de octubre de 2025.
CenterPoint Energy는 2025년 3분기에 더 강한 실적을 보고했습니다. 매출은 전년 동기 19억8800만 달러에서 19억8600만 달러로 증가했고, 영업이익은 5억2000만 달러에서 4억2400만 달러로 올랐습니다. 순이익은 2억9300만 달러로 증가했고 희석주당순이익은 0.45달러로 0.30달러를 상회했습니다. 기타 수익과 비용은 주로 서로 상쇄했으며, 지수화된 채무증권의 이익은 주식증권의 손실 및 이자비용 증가로 2.38억 달러에 비례했습니다.
연도 누계로는 매출이 68억5200만 달러에 도달했고(전년동기 63억8100만 달러 대비), 순이익은 7억8800만 달러로 나타났습니다(전년동기 7억7100만 달러 대비). 9개월간 영업현금흐름은 17억1200만 달러로, 자본지출 33억8900만 달러를 지원했습니다. 부문별 세부정보로는 휴스턴 전력의 3분기 매출이 11억3200만 달러, 순이익은 2억3100만 달러였고, CERC는 3분기 매출 6억7천만 달러, 영업이익 6600만 달러를 기록했습니다. 2025년 10월 20일 기준 주식 수는 652,868,273주였습니다.
CenterPoint Energy a affiché des résultats plus solides au T3 2025. Le chiffre d’affaires s’est élevé à 1 988 millions de dollars contre 1 856 millions de dollars il y a un an, et le résultat opérationnel a progressé à 502 millions de dollars contre 424 millions de dollars. Le bénéfice net a augmenté à 293 millions de dollars contre 193 millions de dollars, avec un BPA dilué de 0,45 $ contre 0,30 $. Les autres revenus et charges se compensent largement, les gains sur les titres de dette indexés étant équilibrés par des pertes sur des titres actions et un coût d’intérêts plus élevé de 238 millions de dollars contre 191 millions.
YTD, le chiffre d’affaires atteint 6 852 millions de dollars (contre 6 381 millions) et le bénéfice net est de 788 millions (vs 771 millions). Le flux de trésorerie opérationnel sur neuf mois s’élève à 1 712 millions, soutenant des dépenses d’investissement en capital de 3 389 millions. Le détail par segment montre que les revenus de Houston Electric au T3 s’établissent à 1 132 millions et le bénéfice net à 231 millions, tandis que CERC affiche des revenus totaux de 607 millions et un résultat opérationnel de 66 millions. Les actions en circulation étaient de 652 868 273 au 20 octobre 2025.
CenterPoint Energy meldete robuste Ergebnisse im Q3 2025. Der Umsatz betrug 1.988 Millionen US-Dollar gegenüber 1.856 Millionen US-Dollar im Vorjahr, und das operative Ergebnis stieg auf 502 Millionen US-Dollar von 424 Millionen US-Dollar. Der Nettogewinn zog auf 293 Millionen US-Dollar von 193 Millionen US-Dollar an, mit einer verdünnten Gewinn pro Aktie von 0,45 US-Dollar gegenüber 0,30. Sonstige Erträge und Aufwendungen wirkten sich größtenteils aus, da Gewinne aus indexierten Schuldverschreibungen durch Verluste aus Aktienwerten und höhere Zinsaufwendungen von 238 Millionen gegenüber 191 Millionen ausgeglichen wurden.
Year to date betrug der Umsatz 6.852 Millionen US-Dollar (gegenüber 6.381 Millionen) und der Nettogewinn lag bei 788 Millionen (vs. 771 Millionen). Der operative Cashflow für die neun Monate betrug 1.712 Millionen und unterstützte Investitionen in Sachanlagen von 3.389 Millionen. Segmentdetails zeigen, dass der Umsatz von Houston Electric im Q3 1.132 Millionen und der Nettogewinn 231 Millionen betrugen, während CERC einen Umsatz von 607 Millionen und ein operatives Ergebnis von 66 Millionen verzeichnete. Die Anzahl der ausgegebenen Aktien betrug zum 20. Oktober 2025 652.868.273.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________
FORM 10-Q
| (Mark One) | |||||
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended September 30, 2025
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| FOR THE TRANSITION PERIOD FROM __________________ TO __________________ | |||||
Commission file number 1-31447
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) | ||||||||||
(713 ) 207-1111
Registrant's telephone number, including area code
Commission file number 1-3187
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) | ||||||||||
(713 ) 207-1111
Registrant's telephone number, including area code
Commission file number 1-13265
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) | ||||||||||
(713 ) 207-1111
Registrant's telephone number, including area code
| Securities registered pursuant to Section 12(b) of the Act: | |||||||||||
| Registrant | Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||
| CenterPoint Energy, Inc. | |||||||||||
NYSE Texas | |||||||||||
| CenterPoint Energy Houston Electric, LLC | n/a | ||||||||||
| CenterPoint Energy Resources Corp. | n/a | ||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
| CenterPoint Energy, Inc. | þ | No | o | ||||||||||||||
| CenterPoint Energy Houston Electric, LLC | þ | No | o | ||||||||||||||
| CenterPoint Energy Resources Corp. | þ | No | o | ||||||||||||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
| CenterPoint Energy, Inc. | þ | No | o | ||||||||||||||
| CenterPoint Energy Houston Electric, LLC | þ | No | o | ||||||||||||||
| CenterPoint Energy Resources Corp. | þ | No | o | ||||||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Accelerated filer | Smaller reporting company | Emerging growth company | |||||||||||||||
| CenterPoint Energy, Inc. | þ | o | o | ||||||||||||||
| CenterPoint Energy Houston Electric, LLC | o | o | þ | ||||||||||||||
| CenterPoint Energy Resources Corp. | o | o | þ | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
| CenterPoint Energy, Inc. | Yes | ☐ | No | ||||||||||||||
| CenterPoint Energy Houston Electric, LLC | Yes | ☐ | No | ||||||||||||||
| CenterPoint Energy Resources Corp. | Yes | ☐ | No | ||||||||||||||
Indicate the number of shares outstanding of each of the issuers’ classes of common stock as of October 20, 2025:
| CenterPoint Energy, Inc. | shares of common stock outstanding, excluding 166 shares held as treasury stock | |||||||
| CenterPoint Energy Houston Electric, LLC | common shares outstanding, all held by Utility Holding, LLC, a wholly-owned subsidiary of CenterPoint Energy, Inc. | |||||||
| CenterPoint Energy Resources Corp. | shares of common stock outstanding, all held by Utility Holding, LLC, a wholly-owned subsidiary of CenterPoint Energy, Inc. | |||||||
CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp. meet the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and are therefore filing this form with the reduced disclosure format specified in General Instruction H(2) of Form 10-Q.
TABLE OF CONTENTS
| PART I. | FINANCIAL INFORMATION | ||||||||||
| Item 1. | Financial Statements | 1 | |||||||||
CenterPoint Energy, Inc. and Subsidiaries Financial Statements (Unaudited) | 1 | ||||||||||
CenterPoint Energy Houston Electric, LLC and Subsidiaries Financial Statements (Unaudited) | 7 | ||||||||||
CenterPoint Energy Resources Corp. and Subsidiaries Financial Statements (Unaudited) | 11 | ||||||||||
Combined Notes to Interim Condensed Financial Statements (Unaudited) | 17 | ||||||||||
(1) Background and Basis of Presentation | 17 | ||||||||||
(2) Accounting Policies and Recent Accounting Pronouncements | 18 | ||||||||||
(3) Acquisition and Divestiture | 19 | ||||||||||
(4) Revenue Recognition | 21 | ||||||||||
(5) Employee Benefit Plans | 23 | ||||||||||
(6) Regulatory Matters | 24 | ||||||||||
(7) Fair Value Measurements | 28 | ||||||||||
(8) Equity Securities and Indexed Debt Securities (ZENS) | 30 | ||||||||||
(9) Short-term Borrowings and Long-term Debt | 31 | ||||||||||
(10) Income Taxes | 34 | ||||||||||
(11) Commitments and Contingencies | 35 | ||||||||||
(12) Earnings Per Share | 42 | ||||||||||
(13) Reportable Segments | 42 | ||||||||||
(14) Related Party Transactions | 46 | ||||||||||
(15) Equity | 47 | ||||||||||
(16) Subsequent Events | 49 | ||||||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 51 | |||||||||
Recent Events | 51 | ||||||||||
Consolidated Results of Operations | 53 | ||||||||||
Results of Operations by Reportable Segment | 54 | ||||||||||
Certain Factors Affecting Future Earnings | 63 | ||||||||||
Liquidity and Capital Resources | 63 | ||||||||||
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 76 | |||||||||
| Item 4. | Controls and Procedures | 76 | |||||||||
| PART II. | OTHER INFORMATION | ||||||||||
| Item 1. | Legal Proceedings | 77 | |||||||||
| Item 1A. | Risk Factors | 77 | |||||||||
| Item 5. | Other Information | 77 | |||||||||
| Item 6. | Exhibits | 77 | |||||||||
Signatures | 81 | ||||||||||
i
| GLOSSARY | ||||||||
| AFUDC | Allowance for funds used during construction | |||||||
AI | Artificial intelligence | |||||||
ALJ | Administrative Law Judge | |||||||
AMA | Asset Management Agreement | |||||||
| Arevon | Arevon Energy, Inc., which was formed through the combination of Capital Dynamics, Inc.’s U.S. Clean Energy Infrastructure business unit and Arevon Asset Management | |||||||
ARO | Asset retirement obligation | |||||||
| ARP | Alternative revenue program | |||||||
ASU | Accounting Standards Update | |||||||
| AT&T Common | AT&T Inc. common stock | |||||||
| ATM Forward Purchasers | Bank of America, N.A., Barclays Bank PLC, Citibank, N.A., Goldman Sachs & Co. LLC, JPMorgan Chase Bank, National Association, Mizuho Markets Americas LLC, MUFG Securities EMEA plc and Royal Bank of Canada | |||||||
| ATM Forward Sellers | BofA Securities, Inc. Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and RBC Capital Markets, LLC | |||||||
| ATM Managers | BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and RBC Capital Markets, LLC | |||||||
| Bcf | Billion cubic feet | |||||||
| Board | Board of Directors of CenterPoint Energy, Inc. | |||||||
Bond Companies | Transition Bond Company IV and Restoration Bond Company II, each a consolidated VIE that is a wholly-owned, bankruptcy-remote, special purpose entity formed solely for the purpose of securitizing transition property or system restoration property through the issuance of transition bonds and system restoration bonds | |||||||
| BTA | Build Transfer Agreement | |||||||
| CAMT | Corporate Alternative Minimum Tax | |||||||
| CCN | Certificate of Convenience and Necessity | |||||||
| CCR | Coal Combustion Residuals | |||||||
| CECA | Clean Energy Cost Adjustment | |||||||
| CEIP | CenterPoint Energy Intrastate Pipelines, LLC, a wholly-owned subsidiary of CERC Corp. | |||||||
| CenterPoint Energy | CenterPoint Energy, Inc., and its subsidiaries | |||||||
CEOH | Vectren Energy Delivery of Ohio, LLC, doing business as CenterPoint Energy Ohio, which converted its corporate structure from Vectren Energy Delivery of Ohio, Inc. to an Ohio limited liability company on June 13, 2022, formerly a wholly-owned subsidiary of Vectren, acquired by CERC on June 30, 2022 | |||||||
CEP | Capital Expenditure Program | |||||||
| CERC | CERC Corp., together with its subsidiaries | |||||||
| CERC Corp. | CenterPoint Energy Resources Corp. | |||||||
| Charter Common | Charter Communications, Inc. common stock | |||||||
| CIP | Conservation Improvement Program | |||||||
| CODM | Chief Operating Decision Maker, who is each Registrant’s Chief Operating Executive | |||||||
| Common Stock | CenterPoint Energy, Inc. common stock, par value $0.01 per share | |||||||
| CPCN | Certificate of Public Convenience and Necessity | |||||||
| CSIA | Compliance and System Improvement Adjustment | |||||||
| DCRF | Distribution Cost Recovery Factor | |||||||
| DOC | U.S. Department of Commerce | |||||||
| DRR | Distribution Replacement Rider | |||||||
| DSMA | Demand Side Management Adjustment | |||||||
| ECA | Environmental Cost Adjustment | |||||||
| EDIT | Excess deferred income taxes | |||||||
| EECRF | Energy Efficiency Cost Recovery Factor | |||||||
| EEFC | Energy Efficiency Funding Component | |||||||
| EEFR | Energy Efficiency Funding Rider | |||||||
| Energy Systems Group | Energy Systems Group, LLC, previously a wholly-owned subsidiary of Vectren | |||||||
| EPA | Environmental Protection Agency | |||||||
ii
| GLOSSARY | ||||||||
| Equity Distribution Agreement | Equity Distribution Agreement, dated as of January 10, 2024, by and between CenterPoint Energy, the ATM Managers, the ATM Forward Purchasers and the ATM Forward Sellers | |||||||
| Equity Purchase Agreement | Equity Purchase Agreement, dated as of May 21, 2023, by and between Vectren Energy Services and ESG Holdings Group | |||||||
| ERCOT | Electric Reliability Council of Texas | |||||||
| ESG Holdings Group | ESG Holdings Group, LLC, a Delaware limited liability company, and an affiliate of Oaktree Capital Management | |||||||
| Exchange Act | The Securities Exchange Act of 1934, as amended | |||||||
| February 2021 Winter Storm Event | The extreme and unprecedented winter weather event in February 2021 (Winter Storm Uri) that resulted in electricity generation supply shortages, including in Texas, and natural gas supply shortages and increased wholesale prices of natural gas in the United States, primarily due to prolonged freezing temperatures | |||||||
FASB | Financial Accounting Standards Board | |||||||
| FERC | Federal Energy Regulatory Commission | |||||||
| Fitch | Fitch Ratings, Inc. | |||||||
| Form 10-Q | Quarterly Report on Form 10-Q | |||||||
GAAP | Generally Accepted Accounting Principles | |||||||
General Mortgage | General Mortgage Indenture, dated as of October 10, 2002, between Houston Electric and JPMorgan Chase Bank, as Trustee, as supplemented | |||||||
| GHG | Greenhouse gas | |||||||
GHRI | The Greater Houston Resiliency Initiative, which was initially announced by Houston Electric in August 2024 and includes targeted actions to improve the resiliency of Houston Electric’s electric grid, as well as improve customer communications and community partnerships | |||||||
| GRIP | Gas Reliability Infrastructure Program | |||||||
| GWh | Gigawatt-hours | |||||||
| Houston Electric | CenterPoint Energy Houston Electric, LLC and its subsidiaries | |||||||
Hurricane Beryl | The powerful and destructive storm that made landfall in Texas on July 8, 2024 and caused widespread damage to Houston Electric’s electric system | |||||||
| IDEM | Indiana Department of Environmental Management | |||||||
| Indiana Electric | Operations of SIGECO’s electric transmission and distribution services, and includes its power generating and wholesale power operations | |||||||
| Indiana Gas | Indiana Gas Company, Inc., formerly a wholly-owned subsidiary of Vectren, acquired by CERC on June 30, 2022 | |||||||
| Indiana North | Gas operations of Indiana Gas | |||||||
| Indiana South | Gas operations of SIGECO | |||||||
| Interim Condensed Financial Statements | Unaudited condensed consolidated interim financial statements and combined notes | |||||||
| IRA | Inflation Reduction Act of 2022 | |||||||
| IRP | Integrated Resource Plan | |||||||
| IRS | Internal Revenue Service | |||||||
ITC | U.S. International Trade Commission | |||||||
| IURC | Indiana Utility Regulatory Commission | |||||||
kV | Kilovolt | |||||||
kW | Kilowatt | |||||||
| LAMS Asset Purchase Agreement | Asset Purchase Agreement, dated as of February 19, 2024, by and among CERC Corp. and the LAMS Buyers | |||||||
| LAMS Buyers | Delta North Louisiana Gas Company, LLC (f/k/a Delta Utilities No. LA, LLC), a Delaware limited liability company, Delta South Louisiana Gas Company, LLC (f/k/a Delta Utilities S. LA, LLC), a Delaware limited liability company, Delta Mississippi Gas Company, LLC (f/k/a Delta Utilities MS, LLC), a Delaware limited liability company, and Delta Energy Resources, LLC (f/k/a Delta Shared Services Co., LLC), a Delaware limited liability company | |||||||
| LDC | Local distribution company | |||||||
Load Shed | Curtailing the amount of electricity a TDU can transmit and distribute to its customers | |||||||
| M&DOT | Mortgage and Deed of Trust, dated November 1, 1944, between Houston Lighting and Power Company and Chase Bank of Texas, National Association (formerly, South Texas Commercial National Bank of Houston), as Trustee, as amended and supplemented | |||||||
May 2024 Storm Events | The sudden and destructive severe weather events in May 2024 that included hurricane-like winds and tornadoes and resulted in widespread damage to Houston Electric’s electric delivery system | |||||||
iii
| GLOSSARY | ||||||||
May 2024 Storm Events System Restoration Bonds | Restoration Bond Company II’s Series 2025-A Senior Secured System Restoration Bonds relating to the securitization of system restoration costs in connection with the May 2024 Storm Events | |||||||
| MDL | Multi-district litigation | |||||||
| MGP | Manufactured gas plant | |||||||
| MISO | Midcontinent Independent System Operator | |||||||
| Moody’s | Moody’s Investors Service, Inc. | |||||||
| MPUC | Minnesota Public Utilities Commission | |||||||
| MW | Megawatt(s) | |||||||
| NERC | North American Electric Reliability Corporation | |||||||
NFGC | National Fuel Gas Company, a New Jersey corporation | |||||||
| NRG | NRG Energy, Inc. | |||||||
| NYSE | New York Stock Exchange | |||||||
OBBBA | One Big Beautiful Bill Act of 2025 | |||||||
Ohio Securities Purchase Agreement | Securities Purchase Agreement, dated as of October 20, 2025, by and between CERC Corp. and NFGC | |||||||
| Oriden | Oriden LLC | |||||||
| Origis | Origis Energy USA Inc. | |||||||
| OUCC | Indiana Office of Utility Consumer Counselor | |||||||
| PFD | Proposal for decision | |||||||
| Posey Solar | Posey Solar, LLC, a special purpose entity | |||||||
| Posey Solar Merger Agreement | Agreement and Plan of Merger, dated as of March 7, 2025, among SIGECO and Posey Solar | |||||||
| PPA | Power purchase agreement | |||||||
PRP | Potentially responsible party | |||||||
| PTCs | Production Tax Credits | |||||||
| PUCO | Public Utilities Commission of Ohio | |||||||
| PUCT | Public Utility Commission of Texas | |||||||
| Railroad Commission | Railroad Commission of Texas | |||||||
| RCRA | Resource Conservation and Recovery Act of 1976 | |||||||
| Registrants | CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp., collectively | |||||||
| REP | Retail electric provider | |||||||
| Restructuring | CERC Corp.’s common control acquisition of Indiana Gas and CEOH from VUH on June 30, 2022 | |||||||
Restoration Bond Company II | CenterPoint Energy Restoration Bond Company II, LLC, a wholly-owned subsidiary of Houston Electric | |||||||
| ROE | Return on equity | |||||||
| S&P | S&P Global Ratings | |||||||
| SEC | Securities and Exchange Commission | |||||||
Securities Act | The Securities Act of 1933, as amended | |||||||
| Securitization Bonds | Transition bonds issued by Transition Bond Company IV, system restoration bonds issued by Restoration Bond Company II and SIGECO Securitization Bonds issued by the SIGECO Securitization Subsidiary | |||||||
Seller Note Agreement | Seller Note Agreement by and between CERC Corp. and NFGC to be entered into at the closing of the proposed sale of all of the issued and outstanding equity interests in CEOH to NFGC contemplated by the Ohio Securities Purchase Agreement | |||||||
| SIGECO | Southern Indiana Gas and Electric Company, a wholly-owned subsidiary of Vectren | |||||||
SIGECO Securitization Bonds | SIGECO Securitization Subsidiary’s Series 2023-A Senior Secured Securitization Bonds relating to the securitization of qualified costs in connection with the retirement of SIGECO’s A.B. Brown Units 1 and 2 coal-fired generation facilities | |||||||
| SIGECO Securitization Subsidiary | SIGECO Securitization I, LLC, a direct, wholly-owned subsidiary of SIGECO | |||||||
SOAH | Texas State Office of Administrative Hearings | |||||||
| SOFR | Secured Overnight Financing Rate | |||||||
| SRC | Sales Reconciliation Component | |||||||
| SRP | The transmission and distribution system resiliency plan filed by Houston Electric with the PUCT on January 31, 2025 | |||||||
| TBD | To be determined | |||||||
TCA | Texas Consumer Association | |||||||
iv
| GLOSSARY | ||||||||
| TCOS | Transmission Cost of Service | |||||||
| TCRF | Transmission Cost Recovery Factor | |||||||
| TDSIC | Transmission, Distribution and Storage System Improvement Charge | |||||||
| TDU | Transmission and distribution utility | |||||||
| TEEEF | Assets leased or costs incurred as “temporary emergency electric energy facilities” under the Public Utility Regulatory Act Section 39.918, also referred to as temporary generation | |||||||
TEEEF Rule | Texas Administrative Code, Title 16, Section 25.56, which became effective January 8, 2025 and refined the scope of TEEEF filings that can be made pursuant to Public Utility Regulatory Act Section 39.918 | |||||||
Transition Bond Company IV | CenterPoint Energy Transition Bond Company IV, LLC, a wholly-owned subsidiary of Houston Electric | |||||||
Transition Services Agreement | Transition Services Agreement, dated as of March 31, 2025, by and among CenterPoint Energy Resources Corp., Delta North Louisiana Gas Company, LLC, Delta South Louisiana Gas Company, LLC, Delta Mississippi Gas Company, LLC, and Delta Energy Resources, LLC | |||||||
| Utility Holding | Utility Holding, LLC, a wholly-owned subsidiary of CenterPoint Energy | |||||||
| Vectren | Vectren, LLC, which converted its corporate structure from Vectren Corporation to a limited liability company on June 30, 2022, a wholly-owned subsidiary of CenterPoint Energy as of February 1, 2019 | |||||||
| Vectren Energy Services | Vectren Energy Services Corporation, an Indiana corporation and a wholly-owned subsidiary of CenterPoint Energy | |||||||
| VIE | Variable interest entity | |||||||
| Vistra Energy Corp. | Texas-based energy company focused on the competitive energy and power generation markets | |||||||
| VRP | Voluntary Remediation Program | |||||||
| WBD Common | Warner Bros. Discovery, Inc. Series A common stock | |||||||
| Winter Storm Elliott | From December 21 to 26, 2022, a historic extratropical cyclone created winter storm conditions, including blizzards, high winds, snowfall and record cold temperatures across the majority of the United States and parts of Canada | |||||||
| ZENS | 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 | |||||||
| ZENS-Related Securities | As of September 30, 2025 and December 31, 2024, consisted of AT&T Common, Charter Common and WBD Common | |||||||
2024 Form 10-K | Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed with the SEC on February 20, 2025 | |||||||
2026 Convertible Notes | CenterPoint Energy’s 4.25% Convertible Senior Notes due 2026 | |||||||
2028 Convertible Notes | CenterPoint Energy’s 3.00% Convertible Senior Notes due 2028 | |||||||
2028 Convertible Notes Indenture | Indenture, dated as of July 31, 2025, by and between CenterPoint Energy and The Bank of New York Mellon Trust Company, National Association, as trustee | |||||||
v
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
From time to time the Registrants make statements concerning their expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. You can generally identify forward-looking statements by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “target,” “will” or other similar words.
The Registrants have based their forward-looking statements on management’s beliefs and assumptions based on information reasonably available to management at the time the statements are made. The Registrants caution you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, the Registrants cannot assure you that actual results will not differ materially from those expressed or implied by the Registrants’ forward-looking statements. In this combined Form 10-Q, unless context requires otherwise, the terms “our,” “we” and “us” are used as abbreviated references to CenterPoint Energy, Inc. together with its consolidated subsidiaries, including Houston Electric, CERC and SIGECO.
The following are some of the factors that could cause actual results to differ from those expressed or implied by the Registrants’ forward-looking statements and apply to all Registrants unless otherwise indicated:
•The business strategies and strategic initiatives, restructurings, joint ventures and acquisitions or dispositions of assets or businesses involving us or our industry, including the ability to successfully complete such strategies, initiatives, transactions or plans on the timelines we expect or at all, such as the announced sale of our Ohio natural gas LDC business or the completed sale of our Louisiana and Mississippi natural gas LDC businesses, which we cannot assure will have the anticipated benefits to us;
•industrial, commercial and residential growth in our service territories and changes in market demand, including in relation to the expansion of data centers, energy refining and export facilities, including hydrogen facilities, electrification of industrial processes and transport and logistics, as well as the effects of energy efficiency measures and demographic patterns, and our ability to appropriately estimate and effectively manage such demand and the business opportunities relating to such matters;
•our ability to fund and invest planned capital and the timely recovery of our investments, including the timing of and amounts sought for those related to our 10-year capital plan, including Houston Electric’s GHRI and SRP, and Indiana Electric’s generation transition plan as part of its IRPs;
•our ability to successfully construct, operate, repair, maintain and restart electric generating facilities, natural gas facilities, TEEEF and electric transmission facilities, as applicable, including in the event of a widespread outage and in relation to complying with applicable environmental and safety standards and the implementation of a well-balanced energy and resource mix, as appropriate;
•timely and appropriate rate actions that allow and authorize timely recovery of costs and a reasonable return on investment, including the timing of and amounts sought for recovery of Houston Electric’s TEEEF leases and restoration costs relating to, among other things, Hurricane Beryl, and requested or favorable adjustments to rates and approval of other requested items as part of base rate proceedings or interim rate mechanisms;
•the timing and success of, and our ability to obtain approval for matters relating to, Houston Electric’s release of its 15 large 27 MW to 32 MW TEEEF units to the San Antonio area, reduction of its TEEEF fleet capacity and reduction of rates to reflect the removal of the 15 large TEEEF units from Houston Electric’s TEEEF fleet, as well as Houston Electric’s ability to complete one or more other future transactions involving various sizes of the TEEEF units on acceptable terms and conditions within the anticipated timeframe;
•economic conditions in regional and national markets, including economic uncertainty and volatility, potential for recession, changes to inflation and interest rates, and their effect on sales, prices and costs;
•weather variations and other natural phenomena, including the impact of severe weather events on operations, capital, legislation and/or regulations, such as seen in connection with the February 2021 Winter Storm Event, the May 2024 Storm Events and Hurricane Beryl;
•volatility in the markets for natural gas as a result of, among other factors, tariffs, legislation, bans, retaliatory trade measures taken against the United States or related governmental action, as well as armed conflicts, including the conflict in the Middle East and any broader related conflict, and the conflict in Ukraine, and the related sanctions on certain Russian entities;
•non-payment for our services due to financial distress of our customers and the ability of our customers, including REPs, to satisfy their obligations to CenterPoint Energy, Houston Electric, and CERC, and the negative impact on such ability related to adverse economic conditions and severe weather events;
vi
•public health threats and their effect on our operations, business and financial condition, our industries and the communities we serve, U.S. and world financial markets and supply chains, potential regulatory actions and changes in customer and stakeholder behavior relating thereto;
•federal, state and local legislative, executive and regulatory actions or developments affecting various aspects of our businesses, including, among others, any actions resulting from Hurricane Beryl, energy deregulation or re-regulation, pipeline integrity and safety and changes in regulation, legislation and governmental action pertaining to trade (including tariffs, bans, retaliatory trade measures taken against the United States or related governmental action), the implementation of budget and spending cuts to federal government agencies and programs, effects of government shutdowns, policies incentivizing or disincentivizing the development or utilization of alternative sources of generation (including distributed generation), health care, finance and actions regarding the rates charged by our regulated businesses;
•our ability to manage and timely execute our planned capital projects, including those contemplated in our 10-year capital plan such as Houston Electric’s GHRI and SRP, obtain the anticipated benefits of such projects, complete such projects within budget and manage costs and impacts of such projects on customer affordability;
•disruptions to the global supply chain, including as a result of volatility in commodity prices, trade agreements, changes in trade relationships, geopolitical and economic uncertainty, regulatory and policy instability, severe weather events, tariffs, bans, retaliatory trade measures, legislation and governmental action impacting the supply chain, that could prevent CenterPoint Energy from securing the resources needed to, among other things, fully execute on its 10-year capital plan, including the GHRI and SRP, or achieve its net zero and GHG emissions reduction goals and otherwise impact the affordability of our rates;
•the availability of, prices for and our ability to procure materials, supplies or services and scarcity of and changes in labor for current and future projects, including those relating to our GHRI and SRP and otherwise arising from our 10-year capital plan, and operations and maintenance costs, our ability to control such costs and cost-related impacts on the affordability of our rates;
•our ability to timely obtain and maintain necessary licenses and permits from local, federal and other regulatory authorities on acceptable terms and resolve third-party challenges to such licenses or permits as applicable;
•direct or indirect effects on our facilities, resources, operations, reputation and financial condition resulting from terrorism, cyberattacks or intrusions, data security breaches or other security incidents or other attempts to disrupt our businesses or the businesses of third parties, or other catastrophic events such as fires, earthquakes, explosions, leaks, floods, droughts, hurricanes, tornadoes, derecho events, ice storms and other severe weather events, wildfires, pandemic health events, geopolitical conflict, civil unrest or other occurrences;
•risks relating to potential wildfires, including damages to our network and losses in excess of insurance liability coverage;
•tax legislation and any changes in tax laws under the current or future administrations, including the effects of the OBBBA, Executive Order 14315, the IRA and any further changes to or the repeal of the IRA, and any potential changes to tax rates, CAMT imposed, tax credits and/or interest deductibility, as well as uncertainties involving state commissions’ and local municipalities’ regulatory requirements and determinations regarding the treatment of EDIT and our rates;
•our ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms;
•actions by credit rating agencies, including any potential downgrades to credit ratings;
•matters affecting regulatory approval, legislative or executive actions, construction, costs, implementation of necessary technology or other issues with respect to major capital projects and programs, including those contemplated in our 10-year capital plan, that result in delays or cancellation or in costs that cannot be recouped in rates;
•local, state and federal legislative, executive and regulatory actions or developments relating to the environment, including, among others, those related to global climate risk, air emissions, GHG emissions, carbon emissions, wastewater discharges and the handling and disposal of CCR that could impact operations, cost recovery of generation plant costs and related assets, and CenterPoint Energy’s net zero and GHG emissions reduction goals;
•the impact of unplanned facility outages or other closures;
•the sufficiency of our insurance coverage, including availability, cost, coverage and terms and ability to recover claims;
•impacts from CenterPoint Energy’s pension and postretirement benefit plans, such as the investment performance and increases to net periodic costs as a result of plan settlements and changes in assumptions, including discount rates;
•changes in interest rates and their impact on costs of borrowing and the valuation of CenterPoint Energy’s pension benefit obligation;
•commercial bank and financial market conditions, including disruptions in the banking industry, our access to capital, the cost of such capital, the results of our financing and refinancing efforts, including availability of funds in the capital markets, and impacts on our vendors, customers and suppliers;
•inability of various counterparties to meet their obligations to us;
•the extent and effectiveness of our risk management activities;
vii
•timely and appropriate regulatory actions, which include actions allowing requested securitization, for any hurricanes or other severe weather events, such as Hurricane Beryl, or natural disasters or other amounts sought for recovery of costs, including stranded coal-fired generation asset costs;
•our ability to attract, effectively transition, motivate and retain management and key employees and maintain good labor relations;
•changes in technology, including with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation, and their adoption by consumers, and our ability to anticipate and adapt to technological changes;
•advances in AI and our success in timely adopting, developing and deploying AI;
•the impact of climate risk and alternate energy sources on the demand for natural gas and electricity generated or transmitted by us;
•the timing and outcome of any audits, disputes and other proceedings related to taxes;
•the recording of impairment charges;
•political and economic developments and actions, including energy and environmental policies under the current administration;
•CenterPoint Energy’s ability to execute on its strategy, initiatives, targets and goals, including its net zero and GHG
emissions reduction goals and its operations and maintenance expenditure goals;
•the outcome of litigation, including litigation related to the February 2021 Winter Storm Event and Hurricane Beryl;
•the effect of changes in and application of accounting standards and pronouncements; and
•other factors discussed in “Risk Factors” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K, which are incorporated herein by reference, Part II, Item 1A of this combined Form 10-Q, and in other reports that the Registrants file from time to time with the SEC.
You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement and, other than as required under applicable securities laws, the Registrants undertake no obligation to update or revise any forward-looking statements. Investors should note that the Registrants announce material financial and other information in SEC filings, press releases and public conference calls. Based on guidance from the SEC, the Registrants may use the Investors section of CenterPoint Energy’s website (http://www.centerpointenergy.com) to communicate with investors about the Registrants. It is possible that the financial and other information posted there could be deemed to be material information. The information on CenterPoint Energy’s website is not part of this combined Form 10-Q.
viii
Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
CENTERPOINT ENERGY, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Utility revenues | $ | $ | $ | $ | |||||||||||||||||||
| Non-utility revenues | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Utility natural gas, fuel and purchased power | |||||||||||||||||||||||
| Non-utility cost of revenues, including natural gas | |||||||||||||||||||||||
| Operation and maintenance | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Taxes other than income taxes | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||
Loss on sale | ( | ||||||||||||||||||||||
| Gain (loss) on equity securities | ( | ( | |||||||||||||||||||||
| Gain (loss) on indexed debt securities | ( | ( | |||||||||||||||||||||
| Interest expense and other finance charges | ( | ( | ( | ( | |||||||||||||||||||
| Interest expense on Securitization Bonds | ( | ( | ( | ( | |||||||||||||||||||
| Other income, net | |||||||||||||||||||||||
| Total | ( | ( | ( | ( | |||||||||||||||||||
| Income Before Income Taxes | |||||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
| Net Income | $ | $ | $ | $ | |||||||||||||||||||
| Basic Earnings Per Common Share | $ | $ | $ | $ | |||||||||||||||||||
| Diluted Earnings Per Common Share | $ | $ | $ | $ | |||||||||||||||||||
| Weighted Average Common Shares Outstanding, Basic | |||||||||||||||||||||||
| Weighted Average Common Shares Outstanding, Diluted | |||||||||||||||||||||||
See Combined Notes to Interim Condensed Financial Statements
1
Table of Contents
CENTERPOINT ENERGY, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
Adjustment to pension and other postretirement plans (net of tax of $- | ( | ( | |||||||||||||||||||||
Net deferred gain from cash flow hedges (net of tax of $- | |||||||||||||||||||||||
Reclassification of deferred gain from cash flow hedges realized in net income (net of tax of $- | ( | ( | ( | ||||||||||||||||||||
| Total | ( | ( | |||||||||||||||||||||
| Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
See Combined Notes to Interim Condensed Financial Statements
2
Table of Contents
CENTERPOINT ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, 2025 | December 31, 2024 | ||||||||||
| (in millions) | |||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
Cash and cash equivalents ($ | $ | $ | |||||||||
| Investment in equity securities | |||||||||||
Accounts receivable ($ | |||||||||||
Accrued unbilled revenues ($ | |||||||||||
| Natural gas and coal inventory | |||||||||||
| Materials and supplies | |||||||||||
| Taxes receivable | |||||||||||
Current assets held for sale | |||||||||||
| Regulatory assets | |||||||||||
Prepaid expenses and other current assets ($ | |||||||||||
| Total current assets | |||||||||||
Property, Plant and Equipment, Net: | |||||||||||
| Property, plant and equipment | |||||||||||
| Less: accumulated depreciation and amortization | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Other Assets: | |||||||||||
| Goodwill | |||||||||||
Regulatory assets ($ | |||||||||||
| Other non-current assets | |||||||||||
| Total other assets | |||||||||||
| Total Assets | $ | $ | |||||||||
See Combined Notes to Interim Condensed Financial Statements
3
Table of Contents
CENTERPOINT ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS – (continued)
(Unaudited)
| September 30, 2025 | December 31, 2024 | ||||||||||
| (in millions, except par value and shares) | |||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Short-term borrowings | $ | $ | |||||||||
| Current portion of VIE Securitization Bonds long-term debt | |||||||||||
| Indexed debt, net | |||||||||||
| Current portion of other long-term debt | |||||||||||
| Indexed debt securities derivative | |||||||||||
| Accounts payable | |||||||||||
| Taxes accrued | |||||||||||
Interest accrued ($ | |||||||||||
| Dividends accrued | |||||||||||
| Customer deposits | |||||||||||
Current liabilities held for sale | |||||||||||
Other current liabilities ($ | |||||||||||
| Total current liabilities | |||||||||||
| Other Liabilities: | |||||||||||
| Deferred income taxes, net | |||||||||||
| Benefit obligations | |||||||||||
| Regulatory liabilities | |||||||||||
| Other non-current liabilities | |||||||||||
| Total other liabilities | |||||||||||
Long-term Debt, Net: | |||||||||||
| VIE Securitization Bonds, net | |||||||||||
| Other long-term debt, net | |||||||||||
| Total long-term debt, net | |||||||||||
Commitments and Contingencies (Note 11) | |||||||||||
| Shareholders’ Equity: | |||||||||||
Common stock, $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Total shareholders’ equity | |||||||||||
| Total Liabilities and Shareholders’ Equity | $ | $ | |||||||||
See Combined Notes to Interim Condensed Financial Statements
4
Table of Contents
CENTERPOINT ENERGY, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Cash Flows from Operating Activities: | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Deferred income taxes | |||||||||||
Loss on sale | |||||||||||
| Loss (gain) on equity securities | ( | ||||||||||
| Loss (gain) on indexed debt securities | ( | ||||||||||
Pension and postretirement contributions | ( | ( | |||||||||
| Changes in other assets and liabilities: | |||||||||||
| Accounts receivable and unbilled revenues, net | |||||||||||
| Inventory | ( | ||||||||||
| Taxes receivable | ( | ||||||||||
| Accounts payable | ( | ( | |||||||||
Current regulatory assets and liabilities | ( | ||||||||||
Other current assets and liabilities | ( | ( | |||||||||
Non-current regulatory assets and liabilities | ( | ||||||||||
| Other non-current assets and liabilities | |||||||||||
| Other operating activities, net | ( | ( | |||||||||
| Net cash provided by operating activities | |||||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Capital expenditures | ( | ( | |||||||||
Payment for asset acquisition | ( | ||||||||||
Proceeds from divestiture | |||||||||||
| Other investing activities, net | ( | ( | |||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Cash Flows from Financing Activities: | |||||||||||
Decrease in short-term borrowings, net | ( | ( | |||||||||
Payment of commercial paper, net | ( | ( | |||||||||
Proceeds from long-term debt and term loans, net | |||||||||||
| Payments of long-term debt and term loans, including make-whole premiums | ( | ( | |||||||||
| Payment of debt issuance costs | ( | ( | |||||||||
| Payment of dividends on Common Stock | ( | ( | |||||||||
| Proceeds from issuance of Common Stock, net | |||||||||||
| Other financing activities, net | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | |||||||||||
| Cash, Cash Equivalents and Restricted Cash at Beginning of Period | |||||||||||
| Cash, Cash Equivalents and Restricted Cash at End of Period | $ | $ | |||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid for interest, net of capitalized interest | $ | $ | |||||||||
Refunds received for income taxes, net | ( | ( | |||||||||
Supplemental Disclosure of Non-cash Transactions | |||||||||||
Accounts payable related to capital expenditures | $ | $ | |||||||||
ROU assets obtained in exchange for lease liabilities | |||||||||||
See Combined Notes to Interim Condensed Financial Statements
5
Table of Contents
CENTERPOINT ENERGY, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars and shares, except authorized shares and par value) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock, $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuances of Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuances related to benefit and investment plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additional Paid-in-Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuances of Common Stock, net of issuance costs | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Issuances related to benefit and investment plans | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock dividends declared (see Note 15) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Shareholders’ Equity | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Combined Notes to Interim Condensed Financial Statements
6
Table of Contents
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenues | $ | $ | $ | $ | |||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Operation and maintenance | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Taxes other than income taxes | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||
| Interest expense and other finance charges | ( | ( | ( | ( | |||||||||||||||||||
| Interest expense on Securitization Bonds | ( | ( | ( | ( | |||||||||||||||||||
| Other income, net | |||||||||||||||||||||||
| Total | ( | ( | ( | ( | |||||||||||||||||||
| Income Before Income Taxes | |||||||||||||||||||||||
| Income tax expense | |||||||||||||||||||||||
| Net Income | $ | $ | $ | $ | |||||||||||||||||||
See Combined Notes to Interim Condensed Financial Statements
7
Table of Contents
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, 2025 | December 31, 2024 | ||||||||||
| (in millions) | |||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
Cash and cash equivalents ($ | $ | $ | |||||||||
Accounts and notes receivable, less allowance for credit losses of $ | |||||||||||
| Accounts and notes receivable–affiliated companies | |||||||||||
Accrued unbilled revenues ($ | |||||||||||
| Materials and supplies | |||||||||||
| Taxes receivable | |||||||||||
Prepaid expenses and other current assets ($ | |||||||||||
| Total current assets | |||||||||||
Property, Plant and Equipment, Net: | |||||||||||
| Property, plant and equipment | |||||||||||
| Less: accumulated depreciation and amortization | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Other Assets: | |||||||||||
Regulatory assets ($ | |||||||||||
| Other non-current assets | |||||||||||
| Total other assets | |||||||||||
| Total Assets | $ | $ | |||||||||
| LIABILITIES AND MEMBER’S EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Short-term borrowings | $ | $ | |||||||||
| Current portion of VIE Securitization Bonds long-term debt | |||||||||||
| Current portion of other long-term debt | |||||||||||
| Accounts payable | |||||||||||
Accounts payable–affiliated companies | |||||||||||
| Taxes accrued | |||||||||||
Interest accrued ($ | |||||||||||
Other current liabilities ($ | |||||||||||
| Total current liabilities | |||||||||||
| Other Liabilities: | |||||||||||
| Deferred income taxes, net | |||||||||||
| Benefit obligations | |||||||||||
| Regulatory liabilities | |||||||||||
| Other non-current liabilities | |||||||||||
| Total other liabilities | |||||||||||
Long-term Debt, net: | |||||||||||
| VIE Securitization Bonds, net | |||||||||||
| Other long-term debt, net | |||||||||||
Total long-term debt, net | |||||||||||
Commitments and Contingencies (Note 11) | |||||||||||
| Member’s Equity: | |||||||||||
| Common stock | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Total member’s equity | |||||||||||
| Total Liabilities and Member’s Equity | $ | $ | |||||||||
See Combined Notes to Interim Condensed Financial Statements
8
Table of Contents
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Cash Flows from Operating Activities: | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Deferred income taxes | |||||||||||
| Changes in other assets and liabilities: | |||||||||||
Accounts receivable and unbilled revenues, net | ( | ( | |||||||||
| Accounts receivable/payable–affiliated companies | ( | ( | |||||||||
| Inventory | |||||||||||
| Accounts payable | ( | ( | |||||||||
| Taxes receivable | ( | ||||||||||
Current regulatory assets and liabilities | ( | ||||||||||
Other current assets and liabilities | |||||||||||
Non-current regulatory assets and liabilities | ( | ( | |||||||||
| Other non-current assets and liabilities | ( | ||||||||||
| Other operating activities, net | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Capital expenditures | ( | ( | |||||||||
(Increase) decrease in notes receivable–affiliated companies | ( | ||||||||||
| Other investing activities, net | ( | ||||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Cash Flows from Financing Activities: | |||||||||||
Proceeds from long-term debt and term loan, net | |||||||||||
| Payments of long-term debt | ( | ||||||||||
| Increase in notes payable–affiliated companies | |||||||||||
Payment of debt issuance costs | ( | ( | |||||||||
| Dividend to parent | ( | ( | |||||||||
| Contribution from parent | |||||||||||
| Other financing activities, net | ( | ( | |||||||||
| Net cash provided by financing activities | |||||||||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | |||||||||||
| Cash, Cash Equivalents and Restricted Cash at Beginning of Period | |||||||||||
| Cash, Cash Equivalents and Restricted Cash at End of Period | $ | $ | |||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid for interest, net of capitalized interest | $ | $ | |||||||||
Cash paid for income taxes, net | |||||||||||
Supplemental Disclosure of Non-cash Transactions | |||||||||||
Accounts payable related to capital expenditures | $ | $ | |||||||||
See Combined Notes to Interim Condensed Financial Statements
9
Table of Contents
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
| (in millions, except share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Additional Paid-in-Capital | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Contribution from parent | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||
| Dividend to parent | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Total Member’s Equity | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
See Combined Notes to Interim Condensed Financial Statements
10
Table of Contents
CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES
(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED STATEMENTS OF CONSOLIDATED INCOME
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Utility revenues | $ | $ | $ | $ | |||||||||||||||||||
| Non-utility revenues | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||
| Utility natural gas | |||||||||||||||||||||||
| Non-utility cost of revenues, including natural gas | |||||||||||||||||||||||
| Operation and maintenance | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Taxes other than income taxes | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||
| Gain on sale | |||||||||||||||||||||||
| Interest expense and other finance charges | ( | ( | ( | ( | |||||||||||||||||||
Other income, net | |||||||||||||||||||||||
| Total | ( | ( | ( | ( | |||||||||||||||||||
| Income Before Income Taxes | |||||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
See Combined Notes to Interim Condensed Financial Statements
11
Table of Contents
CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES
(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Adjustment to pension and other postretirement plans (net of tax of $- | ( | ( | ( | ||||||||||||||||||||
Other comprehensive loss | ( | ( | ( | ||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
See Combined Notes to Interim Condensed Financial Statements
12
Table of Contents
CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES
(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, 2025 | December 31, 2024 | ||||||||||
| (in millions) | |||||||||||
| ASSETS | |||||||||||
Current Assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowance for credit losses of $ | |||||||||||
Accrued unbilled revenues, less allowance for credit losses of $- | |||||||||||
Accounts receivable–affiliated companies | |||||||||||
| Materials and supplies | |||||||||||
| Natural gas inventory | |||||||||||
| Taxes receivable | |||||||||||
| Current assets held for sale | |||||||||||
| Regulatory assets | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Total current assets | |||||||||||
Property, Plant and Equipment, Net: | |||||||||||
| Property, plant and equipment | |||||||||||
| Less: accumulated depreciation and amortization | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Other Assets: | |||||||||||
| Goodwill | |||||||||||
| Regulatory assets | |||||||||||
| Other non-current assets | |||||||||||
| Total other assets | |||||||||||
| Total Assets | $ | $ | |||||||||
See Combined Notes to Interim Condensed Financial Statements
13
Table of Contents
CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES
(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS – (continued)
(Unaudited)
| September 30, 2025 | December 31, 2024 | ||||||||||
| (in millions) | |||||||||||
| LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Current portion of long-term debt | $ | $ | |||||||||
| Accounts payable | |||||||||||
| Accounts payable–affiliated companies | |||||||||||
| Taxes accrued | |||||||||||
| Interest accrued | |||||||||||
| Customer deposits | |||||||||||
| Current liabilities held for sale | |||||||||||
| Other current liabilities | |||||||||||
| Total current liabilities | |||||||||||
| Other Liabilities: | |||||||||||
| Deferred income taxes, net | |||||||||||
| Benefit obligations | |||||||||||
| Regulatory liabilities | |||||||||||
Other non-current liabilities | |||||||||||
| Total other liabilities | |||||||||||
Long-Term Debt, Net | |||||||||||
Commitments and Contingencies (Note 11) | |||||||||||
| Stockholder’s Equity: | |||||||||||
| Common stock | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive income | |||||||||||
| Total stockholder’s equity | |||||||||||
| Total Liabilities and Stockholder’s Equity | $ | $ | |||||||||
See Combined Notes to Interim Condensed Financial Statements
14
Table of Contents
CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES
(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Cash Flows from Operating Activities: | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Deferred income taxes | ( | ||||||||||
Gain on sale | ( | ||||||||||
| Changes in other assets and liabilities: | |||||||||||
| Accounts receivable and unbilled revenues, net | |||||||||||
| Accounts receivable/payable–affiliated companies | ( | ||||||||||
| Inventory | ( | ( | |||||||||
| Taxes receivable | ( | ||||||||||
| Accounts payable | ( | ( | |||||||||
Current regulatory assets and liabilities | ( | ||||||||||
Other current assets and liabilities | ( | ( | |||||||||
Non-current regulatory assets and liabilities | ( | ( | |||||||||
| Other non-current assets and liabilities | |||||||||||
| Other operating activities, net | ( | ( | |||||||||
| Net cash provided by operating activities | |||||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Capital expenditures | ( | ( | |||||||||
Decrease in notes receivable–affiliated companies | |||||||||||
| Proceeds from divestiture | |||||||||||
| Other investing activities, net | ( | ||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
| Cash Flows from Financing Activities: | |||||||||||
Decrease in short-term borrowings, net | ( | ( | |||||||||
Payments of commercial paper, net | ( | ( | |||||||||
Proceeds from long-term debt and term loan, net | |||||||||||
| Payments of long-term debt and term loan | ( | ||||||||||
Payment of debt issuance costs | ( | ||||||||||
Dividends to parent | ( | ( | |||||||||
| Contribution from parent | |||||||||||
| Other financing activities, net | ( | ( | |||||||||
Net cash provided by financing activities | ( | ||||||||||
Net Decrease in Cash, Cash Equivalents and Restricted Cash | ( | ||||||||||
| Cash, Cash Equivalents and Restricted Cash at Beginning of Period | |||||||||||
| Cash, Cash Equivalents and Restricted Cash at End of Period | $ | $ | |||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid for interest, net of capitalized interest | $ | $ | |||||||||
Cash paid (refunds received) for income taxes, net | ( | ||||||||||
Supplemental Disclosure of Non-cash Transactions | |||||||||||
Accounts payable related to capital expenditures | $ | $ | |||||||||
See Combined Notes to Interim Condensed Financial Statements
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CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES
(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)
CONDENSED STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
| (in millions, except share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Additional Paid-in-Capital | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Contribution from parent | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||||||||||||||||||
| Dividend to parent | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Stockholder’s Equity | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
See Combined Notes to Interim Condensed Financial Statements
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CENTERPOINT ENERGY, INC. AND SUBSIDIARIES
CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES
CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES
COMBINED NOTES TO INTERIM CONDENSED FINANCIAL STATEMENTS
(1) Background and Basis of Presentation
General. This combined Form 10-Q is filed separately by three registrants: CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp. Information contained herein relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other Registrants or the subsidiaries of CenterPoint Energy, Inc. other than itself or its subsidiaries.
Except as discussed in Note 9, no registrant has an obligation in respect of any other Registrant’s debt securities, and holders of such debt securities should not consider the financial resources or results of operations of any Registrant other than the obligor in making a decision with respect to such securities.
Basis of Presentation. Included in this combined Form 10-Q are the Interim Condensed Financial Statements of the Registrants. The Interim Condensed Financial Statements, which omit certain financial statement disclosures, are unaudited and should be read with the Registrants’ financial statements included in the Registrants’ combined 2024 Form 10-K. The Combined Notes to Interim Condensed Financial Statements apply to all Registrants and specific references to Houston Electric and CERC herein also pertain to CenterPoint Energy, unless otherwise indicated. The Interim Condensed Financial Statements reflect all normal and 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 the 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) changes in energy commodity prices and the impact of tariffs, (c) timing of maintenance and other expenditures and (d) acquisitions and dispositions of businesses, assets and other interests.
Background. CenterPoint Energy is a public utility holding company. CenterPoint Energy’s operating subsidiaries own and operate electric transmission, distribution and generation facilities and natural gas distribution systems.
As of September 30, 2025, CenterPoint Energy’s operating subsidiaries were as follows:
•Houston Electric owns and operates electric transmission and distribution facilities in the Texas Gulf Coast area that includes the city of Houston;
•CERC Corp. (i) directly owns and operates natural gas distribution systems in Minnesota and Texas, (ii) indirectly, through Indiana Gas and CEOH, owns and operates natural gas distribution systems in Indiana and Ohio, respectively, and (iii) owns and operates permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP; and
•SIGECO provides energy delivery services to electric and natural gas customers located in and near Evansville in southwestern Indiana and owns and operates electric generation assets to serve its electric customers and optimizes those assets in the wholesale power market.
As of September 30, 2025, CenterPoint Energy’s reportable segments were Electric, Natural Gas, and Corporate and Other. Houston Electric and CERC each consist of a single reportable segment. For a description of CenterPoint Energy’s reportable segments, see Note 13.
On March 7, 2025, SIGECO acquired 100 % of the equity interests in Posey Solar, which was constructing a 191 MW solar array in Posey County, Indiana, for approximately $357 million. On March 31, 2025, CenterPoint Energy, through its subsidiary CERC Corp., completed the sale of its Louisiana and Mississippi natural gas LDC businesses for approximately $1.2 billion, subject to adjustment as set forth in the LAMS Asset Purchase Agreement, including adjustments based on net working capital, regulatory assets and liabilities and capital expenditures at closing. For additional information related to both transactions, see Note 3.
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 proposed transaction is expected to close in the fourth quarter of 2026. For further information, see Note 16 to the Interim Condensed Financial Statements.
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Principles of Consolidation. The accompanying Interim Condensed Financial Statements have been prepared in conformity with GAAP. The accounts of the Registrants and their wholly-owned and majority-owned and controlled subsidiaries are included in the Interim Condensed Financial Statements. All intercompany transactions and balances are eliminated in consolidation; however, intercompany profits have not been eliminated when such amounts are probable of recovery under the affiliates’ rate regulation process.
As of September 30, 2025, CenterPoint Energy, Houston Electric and SIGECO had VIEs including Transition Bond Company IV, Restoration Bond Company II and the SIGECO Securitization Subsidiary, which are consolidated. The consolidated VIEs are wholly-owned, bankruptcy-remote, special purpose entities that were formed solely for the purpose of securitizing transition property or system restoration property or facilitating the securitization financing of qualified costs. CenterPoint Energy, through SIGECO, has a controlling financial interest in the SIGECO Securitization Subsidiary and is its primary beneficiary. Houston Electric has a controlling financial interest in each of the Bond Companies and is the primary beneficiary of each of the Bond Companies. Creditors of CenterPoint Energy, Houston Electric and SIGECO have no recourse to any assets or revenues of the Bond Companies or the SIGECO Securitization Subsidiary, as applicable. The Securitization Bonds issued by these VIEs are payable only from and secured by transition property, system restoration property or securitization property, as applicable, and the bondholders have no recourse to the general credit of CenterPoint Energy, Houston Electric or SIGECO. For further information, see Note 6.
The preparation of the Registrants’ 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.
(2) Accounting Policies and Recent Accounting Pronouncements
There have been no material changes in our significant accounting policies from those described in our combined 2024 Form 10-K.
Cash and Cash Equivalents and Restricted Cash
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:
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Cash and cash equivalents (1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Restricted cash included in Prepaid expenses and other current assets (2) | |||||||||||||||||||||||||||||||||||
| Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
(1)Cash and cash equivalents related to VIEs as of September 30, 2025 and December 31, 2024 included $31 million and $21 million, respectively, at CenterPoint Energy and $15 million and $14 million, respectively, at Houston Electric.
(2)Restricted cash primarily related to accounts established by CenterPoint Energy in connection with the issuance of the Securitization Bonds to collateralize the Securitization Bonds that were issued in these financing transactions. These restricted cash accounts are not available for withdrawal until the maturity of the Securitization Bonds.
Goodwill (CenterPoint Energy and CERC)
CenterPoint Energy and CERC perform goodwill impairment tests at least annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. Goodwill is evaluated for impairment by performing a qualitative assessment or using a quantitative test. If we choose to perform a qualitative assessment and determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative test is then performed; otherwise, no further testing is required. The quantitative test, if required, is performed by comparing the fair value of each reporting unit with the carrying amount of the reporting unit, including goodwill. The estimated fair value of the reporting unit is primarily determined based on an income approach or a weighted combination of income and market
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approaches. When the carrying amount is in excess of the estimated fair value of the reporting unit, the excess amount is recorded as an impairment charge, not to exceed the carrying amount of goodwill. CenterPoint Energy and CERC performed their annual goodwill impairment tests in the third quarter of 2025 and determined that no goodwill impairment charge was required for any reporting unit as a result of those tests.
Recent Accounting Pronouncements
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 is effective for annual periods beginning after December 15, 2024. The Registrants plan to adopt this ASU on December 31, 2025, on a retrospective basis. The adoption of this ASU is not expected to have an impact on our consolidated financial statements; however, it is expected to result in additional footnote disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures (“ASU 2024-03”). This ASU improves disclosure of a public business entity’s 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 September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-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.
Management believes that all other recently adopted and recently issued accounting standards that are not yet effective will not have a material impact on the Registrants’ financial position, results of operations or cash flows upon adoption.
(3) Acquisition and Divestiture (CenterPoint Energy and CERC)
Divestiture of Louisiana and Mississippi Natural Gas Businesses. On February 19, 2024, CERC Corp. entered into the LAMS Asset Purchase Agreement, pursuant to which CERC Corp. agreed to sell its Louisiana and Mississippi natural gas LDC businesses. The purchase price for the Louisiana and Mississippi natural gas LDC businesses was $1.2 billion, subject to adjustment as set forth in the LAMS Asset Purchase Agreement, including adjustments based on net working capital, regulatory assets and liabilities and capital expenditures at closing. The transaction closed on March 31, 2025. As of the closing date, the businesses included approximately 12,000 miles of main pipeline in Louisiana and Mississippi serving approximately 380,000 customers. Prior to the sale, the Louisiana and Mississippi natural gas LDC businesses were reflected in CenterPoint Energy’s Natural Gas reportable segment and CERC’s single reportable segment, as applicable.
The sale was considered an asset sale for tax purposes, requiring net deferred tax liabilities to be excluded from held for sale balances. The deferred taxes associated with the businesses were recognized as a deferred income tax benefit by CenterPoint Energy and CERC upon closing of the sale in 2025.
Although the Louisiana and Mississippi natural gas LDC businesses met the held for sale criteria as of December 31, 2024, their disposals did not represent a strategic shift for CenterPoint Energy or CERC, as both retain significant operations in, and continue to invest in, their natural gas businesses. Therefore, the assets and liabilities, as well as the related income and expenses, associated with these transactions were not reflected as discontinued operations on CenterPoint Energy’s or CERC’s Condensed Consolidated Balance Sheets and Condensed Statements of Consolidated Income, as applicable. Since the depreciation on the Louisiana and Mississippi natural gas LDC businesses’ assets continued to be reflected in revenues through customer rates until the closing of the transaction and was then reflected in the carryover basis of the rate-regulated assets after the sale, CenterPoint Energy and CERC continued to record depreciation on those assets through the closing of the transaction. The Registrants recorded assets and liabilities held for sale at the lower of their carrying value or their estimated fair value less cost to sell.
CenterPoint Energy and CERC recognized a loss of $43 million and a gain of $52 million, respectively, net of transaction costs of $21 million, in connection with the closing of the disposition of the Louisiana and Mississippi natural gas LDC businesses during the nine months ended September 30, 2025. Goodwill of $217 million and $122 million was allocated to the Louisiana and Mississippi natural gas LDC businesses by CenterPoint Energy and CERC, respectively, at the time the held for sale criteria was met and such amount was subsequently derecognized following the completion of the sale on March 31, 2025.
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As of September 30, 2025, CenterPoint Energy and CERC had a receivable of $12 million for working capital and other customary adjustments set forth in the LAMS Asset Purchase Agreement.
The assets and liabilities of the Louisiana and Mississippi natural gas LDC businesses classified as held for sale in CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets, as applicable, as of December 31, 2024 included the following:
| December 31, 2024 | |||||||||||
| CenterPoint Energy | CERC | ||||||||||
| (in millions) | |||||||||||
| Receivables, net | $ | $ | |||||||||
| Accrued unbilled revenues | |||||||||||
| Materials and supplies | |||||||||||
| Natural gas inventory | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Goodwill | |||||||||||
| Regulatory assets | |||||||||||
| Other | |||||||||||
| Total current assets held for sale | $ | $ | |||||||||
Short-term borrowings | $ | $ | |||||||||
| Accounts payable | |||||||||||
| Customer deposits | |||||||||||
| Regulatory liabilities | |||||||||||
| Other | |||||||||||
| Total current liabilities held for sale | $ | $ | |||||||||
The pre-tax income for the Louisiana and Mississippi natural gas LDC businesses, excluding interest and corporate allocations, included in CenterPoint Energy’s and CERC’s Condensed Statements of Consolidated Income is as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
Income Before Income Taxes | $ | $ | $ | $ | ||||||||||||||||||||||
Effective on the date of the closing of the disposition of the Louisiana and Mississippi natural gas LDC businesses, CERC entered into the Transition Services Agreement, whereby CERC agreed to provide certain transition services, including accounting, customer operations, procurement, and technology functions, for a term of up to 24 months. Subject to the conditions in the Transition Services Agreement, the LAMS Buyers may terminate these support services with 60 days prior written notice. CenterPoint Energy’s and CERC’s charges to the LAMS Buyers for reimbursement of transition services and one-time setup costs were $8.8 million and $24.8 million during the three and nine months ended September 30, 2025, respectively. CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets included a receivable due from the LAMS Buyers for transition services in the amount of $6.6 million as of September 30, 2025.
Acquisition of Posey Solar. On March 7, 2025, SIGECO acquired 100 % of the equity interests in Posey Solar, which was constructing a 191 MW solar array in Posey County, Indiana, for approximately $357 million. The purchase represents an asset acquisition. The lease obligations related to Posey Solar were approximately $35 million at the time of acquisition. The purchase was subject to terms and conditions in an order approved by the IURC on September 6, 2023, allowing Indiana Electric to recover project costs, net of PTCs, in rate base rather than a levelized rate, through base rates or the CECA mechanism, depending on which provides more timely recovery. Posey Solar was placed into service on May 30, 2025. Indiana Electric began recovering on the asset through updated base rates on June 17, 2025. On February 3, 2025, the IURC approved Indiana Electric’s request to convey PTCs to customers through the new tax adjustment rider.
Proposed Divestiture of Ohio Natural Gas LDC Business. 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 proposed transaction is expected to close in the fourth quarter of 2026. For further information, see Note 16 to the Interim Condensed Financial Statements.
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(4) Revenue Recognition
The following tables disaggregate revenues by reportable segment and major source:
CenterPoint Energy
Three Months Ended September 30, 2025 | |||||||||||||||||||||||
| Electric | Natural Gas | Corporate and Other | Total | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Revenue from contracts with customers | $ | $ | $ | $ | |||||||||||||||||||
| Other (1) | ( | ( | |||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended September 30, 2024 | |||||||||||||||||||||||
| Electric | Natural Gas | Corporate and Other | Total | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenue from contracts with customers | $ | $ | $ | $ | |||||||||||||||||||
| Other (1) | ( | ||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
Nine Months Ended September 30, 2025 | |||||||||||||||||||||||
| Electric | Natural Gas | Corporate and Other | Total | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenue from contracts with customers | $ | $ | $ | $ | |||||||||||||||||||
| Other (1) | ( | ( | ( | ||||||||||||||||||||
| Eliminations | ( | ( | |||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
Nine Months Ended September 30, 2024 | |||||||||||||||||||||||
| Electric | Natural Gas | Corporate and Other | Total | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenue from contracts with customers | $ | $ | $ | $ | |||||||||||||||||||
| Other (1) | ( | ||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
(1)Primarily consists of income from ARPs and leases.
Houston Electric
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenue from contracts with customers | $ | $ | $ | $ | |||||||||||||||||||
| Other (1) | ( | ( | ( | ( | |||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
(1)Primarily consists of income from ARPs and leases.
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CERC
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenue from contracts with customers | $ | $ | $ | $ | |||||||||||||||||||
| Other (1) | ( | ||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
(1)Primarily consists of income from ARPs and leases.
The opening and closing balances of accounts receivable and accrued unbilled revenues from contracts with customers are as follows:
CenterPoint Energy
Accounts Receivable (1) | Accrued Unbilled Revenues | ||||||||||||||||
| (in millions) | |||||||||||||||||
Opening balance as of December 31, 2024 | $ | $ | |||||||||||||||
Closing balance as of September 30, 2025 | |||||||||||||||||
Increase (decrease) | $ | $ | ( | ||||||||||||||
(1)Excludes balances related to customer or vendor cost reimbursements and insurance that are not attributable to revenues from contracts with customers. The opening balance as of December 31, 2024 also excluded receivables associated with the sale of CERC Corp.’s Louisiana and Mississippi natural gas LDC businesses.
Houston Electric
Accounts Receivable (1) | Accrued Unbilled Revenues | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Opening balance as of December 31, 2024 | $ | $ | |||||||||||||||||||||
Closing balance as of September 30, 2025 | |||||||||||||||||||||||
Increase | $ | $ | |||||||||||||||||||||
(1)Excludes balances related to customer or vendor cost reimbursements and insurance that are not attributable to revenues from contracts with customers.
CERC
Accounts Receivable (1) | Accrued Unbilled Revenues | ||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
Opening balance as of December 31, 2024 | $ | $ | |||||||||||||||||||||||||||
Closing balance as of September 30, 2025 | |||||||||||||||||||||||||||||
Decrease | $ | ( | $ | ( | |||||||||||||||||||||||||
(1)Excludes balances related to customer or vendor cost reimbursements and insurance that are not attributable to revenues from contracts with customers. The opening balance as of December 31, 2024 also excluded receivables associated with the sale of CERC Corp.’s Louisiana and Mississippi natural gas LDC businesses.
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(5) 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:
Pension Benefits (CenterPoint Energy)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Service cost (1) | $ | $ | $ | $ | |||||||||||||||||||
| Interest cost (2) | |||||||||||||||||||||||
| Expected return on plan assets (2) | ( | ( | ( | ( | |||||||||||||||||||
| Amortization of net loss (2) | |||||||||||||||||||||||
| Net periodic cost | $ | $ | $ | $ | |||||||||||||||||||
(1)Included in Operation and maintenance expense in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals.
(2)Included in Other income, net in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of regulatory deferrals.
Postretirement Benefits
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Service cost (1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Interest cost (2) | |||||||||||||||||||||||||||||||||||
| Expected return on plan assets (2) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Amortization of prior service cost (credit) (2) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Amortization of net loss (2) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Net periodic cost (benefit) | $ | $ | ( | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Service cost (1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost (2) | |||||||||||||||||||||||||||||||||||
Expected return on plan assets (2) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Amortization of prior service cost (credit) (2) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amortization of net loss (2) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
| Net periodic cost (benefit) | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||
(1)Included in Operation and maintenance expense in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals.
(2)Included in Other income (expense), net in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of regulatory deferrals.
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The table below reflects the expected contributions to be made to the pension and postretirement benefit plans during 2025:
| CenterPoint Energy | Houston Electric | CERC | |||||||||||||||
| (in millions) | |||||||||||||||||
Expected contributions to pension plans | $ | $ | $ | ||||||||||||||
Expected contributions to postretirement benefit plans | |||||||||||||||||
The table below reflects the contributions made to the pension and postretirement benefit plans during the periods presented:
| Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
Pension plans | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Postretirement benefit plans | |||||||||||||||||||||||||||||||||||
(6) Regulatory Matters
Equity Return
The Registrants are at times allowed by a regulator to defer an equity return as part of the recoverable carrying costs of a regulatory asset. A deferred equity return is capitalized for rate-making purposes, but it is not included in the Registrant’s regulatory assets on its Condensed Consolidated Balance Sheets. The allowed equity return is recognized in the Condensed Statements of Consolidated Income as it is recovered in rates. The recoverable allowed equity return not yet recognized by the Registrants is as follows:
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy (1) | Houston Electric (2) | CERC (3) | CenterPoint Energy (1) | Houston Electric (2) | CERC (3) | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
Unrecognized equity return | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
(1)In addition to the amounts described in (2) and (3) below, represents CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments at SIGECO.
(2)Represents Houston Electric’s allowed equity return on TEEEF costs and certain storm restoration costs.
(3)Represents CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacement expenditures in Texas and at Indiana Gas.
The table below reflects the amount of allowed equity return recognized by each Registrant in its Condensed Statements of Consolidated Income:
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
Allowed equity return recognized | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
Allowed equity return recognized | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
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February 2021 Winter Storm Event
In February 2021, certain of the Registrants’ jurisdictions experienced an extreme and unprecedented winter weather event that resulted in prolonged freezing temperatures, which impacted their businesses. The February 2021 Winter Storm Event impacted wholesale prices of CenterPoint Energy’s and CERC’s natural gas purchases and their ability to serve customers in their Natural Gas service territories, including due to the reduction in available natural gas capacity and impacts to CenterPoint Energy’s and CERC’s natural gas supply portfolio activities, and the effects of weather on their systems and their ability to transport natural gas, among other things. The overall natural gas market, including the markets from which CenterPoint Energy and CERC sourced a significant portion of their natural gas for their operations, experienced significant impacts caused by the February 2021 Winter Storm Event, resulting in extraordinary increases in the cost of natural gas purchased by CenterPoint Energy and CERC of approximately $2 billion. CenterPoint Energy and CERC have completed recovery of natural gas costs in Mississippi, Indiana, Louisiana and Texas, and continue to recover the natural gas cost in Minnesota. As of September 30, 2025, each of CenterPoint Energy and CERC had recorded current regulatory assets of $67 million and non-current regulatory assets of $21 million associated with the February 2021 Winter Storm Event. As of December 31, 2024, each of CenterPoint Energy and CERC had recorded current regulatory assets of $67 67
As of September 30, 2025 and December 31, 2024, as authorized by the PUCT, each of CenterPoint Energy and Houston Electric had recorded a regulatory asset of $7 million and $8 million for bad debt expenses resulting from REPs’ default on their obligation to pay delivery charges to Houston Electric net of collateral. Additionally, each of CenterPoint Energy and Houston Electric had recorded a regulatory asset of $18 million and $19 million as of September 30, 2025 and December 31, 2024, respectively, for reimbursement of costs associated with the February 2021 Winter Storm Event. Each of the aforementioned regulatory assets are being amortized over five years beginning April 28, 2025, which was the date that rates became effective following the PUCT’s final order in the Houston Electric rate case.
See Note 11(d) for further information regarding litigation related to the February 2021 Winter Storm Event.
Texas Public Securitization
The Texas Natural Gas Securitization Finance Corporation issued customer rate relief bonds in March 2023, and on March 23, 2023, CenterPoint Energy and CERC, collectively, received approximately $1.1 1.1
Indiana Electric Securitization of Generation Retirements (CenterPoint Energy)
On January 4, 2023, the IURC issued an order in accordance with Indiana Senate Enrolled Act 386 authorizing the issuance of up to $350 million in securitization bonds to securitize qualified costs associated with the retirements of Indiana Electric’s A.B. Brown coal-fired generation facilities. The SIGECO Securitization Subsidiary issued $341 million aggregate principal amount of the SIGECO Securitization Bonds on June 29, 2023 and used a portion of the net proceeds from the issuance of the SIGECO Securitization Bonds to purchase the securitization property from SIGECO. No gain or loss was recognized.
The SIGECO Securitization Bonds are secured by the securitization property, which includes the right to recover, through non-bypassable securitization charges payable by SIGECO’s retail electric customers, the qualified costs of SIGECO authorized by the IURC order. The SIGECO Securitization Subsidiary, and not SIGECO, is the owner of the securitization property, and the assets of the SIGECO Securitization Subsidiary are not available to pay the creditors of SIGECO or its affiliates, other than
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the SIGECO Securitization Subsidiary. SIGECO has no payment obligations with respect to the SIGECO Securitization Bonds except to remit collections of securitization charges as set forth in a servicing agreement between SIGECO and the SIGECO Securitization Subsidiary. The non-bypassable securitization charges are subject to a true-up mechanism.
Houston Electric TEEEF
Pursuant to legislation passed in 2021, Houston Electric entered into two leases for TEEEF (temporary generation). Houston Electric defers costs associated with the short-term and long-term leases that are probable of recovery and would otherwise be charged to expense in a regulatory asset, including allowed debt returns, and determined that such regulatory assets remain probable of recovery as of September 30, 2025. Expenses associated with the short-term lease, including carrying costs, were deferred in a regulatory asset as a recoverable cost under the 2021 Texas legislation and totaled $81 million and $89 million as of September 30, 2025 and December 31, 2024, respectively. Expenses associated with the long-term lease, including variable costs associated with the operation and maintenance of the TEEEF, depreciation expense on the right of use asset and carrying costs, are deferred in a regulatory asset as a recoverable cost under the 2021 Texas legislation and totaled $139 million and $158 million as of September 30, 2025 and December 31, 2024, respectively.
Right of use finance lease assets, such as assets acquired under the long-term leases, are evaluated for impairment under the long-lived asset impairment model by assessing if a capital disallowance from a regulator is probable through monitoring the outcome of rate cases and other proceedings. Houston Electric continues to monitor the ongoing proceedings and did not record any impairments or disallowances on its right of use assets or TEEEF regulatory assets in the three and nine months ended September 30, 2025 or September 30, 2024.
Effective January 1, 2023, all temporary generation assets were leased under the long-term lease agreement. The long-term lease agreement includes up to 505 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 September 30, 2025 and December 31, 2024 and relates to removal costs that will be incurred at the end of the lease term. As of September 30, 2025, Houston Electric had secured a first lien on the assets leased under the prepayment agreement, except for assets with lease payments totaling $17 million, which is being held in an escrow account, not controlled by Houston Electric, and the funds will be released either pro rata each month or when a first lien can be secured by Houston Electric on such assets.
On September 11, 2024, the TCA filed a complaint with the PUCT requesting that the PUCT modify its rulings with respect to its prior decisions related to the TEEEF filings made in 2022 and 2023. Specifically, the TCA requested that the PUCT end cost recovery and return on investment on all the large up to 32 MW and 5 MW TEEEF units approved in Docket 53442. On October 2, 2024, Houston Electric filed a response to the TCA complaint and requested that the complaint be dismissed due to the principles of res judicata and collateral estoppel. On October 8, 2024, the TCA supplemented its complaint and on October 9, 2024, PUCT staff filed a statement of position stating that Houston Electric’s response provided a strong argument for dismissal of the complaint, but also stating that it would be prudent to have a thorough legal argument from the TCA. On October 10, 2024, the PUCT issued Order No. 2 finding the TCA complaint insufficient and requiring supplemental information or amendment from the TCA by October 24, 2024; the TCA filed supplemental information on October 24, 2024. On November 14, 2024, the PUCT issued Order No. 4 denying the motion to reconsider and extending a deadline. On December 16, 2024, the PUCT issued Order No. 5 granting waiver of the requirement for informal disposition and soliciting PUCT staff recommendation by January 16, 2025. On January 16, 2025, the PUCT staff filed a supplemental recommendation recommending that the TCA had not met its requirement to first present its complaint to the City of Houston prior to presenting it to the PUCT. On February 26, 2025, the TCA filed its complaint with the City of Houston. On April 1, 2025, the TCA filed the response from the City of Houston dated March 12, 2025, which stated the matter is closed and the City of Houston does not have the authority to re-visit these dockets. The City of Houston also stated that the TCA may appeal to the PUCT and then district court. On April 29, 2025, the PUCT staff filed a supplemental statement of position and motion to dismiss the TCA’s complaint due to lack of jurisdiction. On May 19, 2025, the PUCT issued Order No. 8 lifting the abatement and requiring parties to file responses indicating whether they wish to proceed with or without a hearing. In response to Order No. 8, Houston Electric and the PUCT staff filed responses on June 20, 2025, supporting the dismissal of the TCA’s complaint without a hearing. The TCA also filed a response on June 20, 2025, to request that the parties be allowed to delay responding to the request for a hearing in this docket until a final settlement is made in Docket 57980 (Houston Electric’s application to remove the 15 large 27 MW to 32 MW TEEEF units from its TEEEF fleet) or, if the request for delay is not granted, to request that the hearing in this docket be scheduled after the settlement of Docket 57980. On June 29, 2025, Order No. 9 was issued, granting the TCA’s request to abate this complaint case until a final order is issued in Docket 57980.
On December 19, 2024, Houston Electric announced a proposal to release its 15 large 27 MW to 32 MW TEEEF units to the San Antonio area prior to the summer of 2025. The proposal was intended to help ERCOT address a potential energy
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shortfall and Load Shed risk. On April 18, 2025, a proposal was filed with the PUCT (Docket 57980), seeking approval of the aforementioned release to ERCOT, a corresponding reduction to TEEEF fleet capacity and a rate reduction to reflect the removal of the 15 large TEEEF units from Houston Electric’s TEEEF fleet. On June 4, 2025, Houston Electric entered into definitive documentation, subject to PUCT approval, to release the 15 large 27 MW to 32 MW TEEEF units to the San Antonio area for a period of up to two years, during which time Houston Electric will not receive revenue or profit from ERCOT and will not charge Houston-area customers for such TEEEF units while they remain in the San Antonio area serving ERCOT. Following the completion of service in the San Antonio area, Houston Electric anticipates that it would receive revenues from one or more future transactions involving various sizes of the TEEEF units, and therefore plans to continue to not charge customers for these units for any future periods. On June 5, 2025, certain intervenors submitted a joint request for hearing. On July 9, 2025, the PUCT referred this docket to the SOAH. The PUCT issued a preliminary order on July 10, 2025, listing the issues to be addressed. SOAH Order No. 1 required parties to confer and submit a proposed procedural schedule or request a prehearing conference by July 25, 2025. On July 25, 2025, Houston Electric requested a prehearing conference. On July 28, 2025, SOAH Order No. 2 was issued, setting a prehearing conference for August 22, 2025. On August 21, 2025, Houston Electric filed a joint proposed procedural schedule. On August 22, 2025, SOAH Order No. 3 was issued and cancelled the prehearing conference, adopted the procedural schedule, set the prehearing conference for November 12, 2025 and set the hearing on the merits for November 13 through November 14, 2025. On October 13, 2025, intervenor testimony was filed. PUCT staff testimony is due on October 23, 2025.
Following the passage of legislation in 2023 that allows for wider uses for TEEEF, Houston Electric entered into a lease with Energy Rental Solutions (“ERS”) to add smaller 200 kW to one MW TEEEF units to its existing TEEEF fleet. In response to both the May 2024 Storm Events and Hurricane Beryl, Houston Electric extended its lease with ERS and secured additional small TEEEF units under the ERS lease terms; the primary purpose of the smaller TEEEF units is to provide temporary electric service to medical facilities, cooling centers, assisted living facilities and critical care customers that are impacted by extended weather-related outages. Houston Electric’s lease with ERS expired on March 31, 2025, after the PUCT adopted the TEEEF Rule, which went into effect on January 8, 2025 and refined the scope of TEEEF filings that can be made pursuant to applicable Texas regulations. Among other things, the TEEEF Rule has specific provisions relating to when and how utilities must request PUCT authorization to lease TEEEF units, and it generally requires a utility to obtain preapproval prior to renewing or entering into a new lease of TEEEF units. Houston Electric believes that it continues to need small TEEEF units, and on May 27, 2025, Houston Electric filed an application pursuant to the TEEEF Rule requesting preapproval to enter into two leases for a combined approximately 20 MW of TEEEF capacity comprised of 36 small TEEEF units, each with a capacity range of 200 kW to 1,250 kW, for respective terms of 36 months. Approval of Houston Electric’s request in this filing will have no cost impact on customers at this time because cost determination will occur in a future proceeding. On July 28, 2025, the Texas Office of Public Utility Counsel requested a hearing. On August 26, 2025, Houston Electric and an intervenor each filed a list of issues. On September 9, 2025, the PUCT issued an order of referral to SOAH and requested assignment of an ALJ. A preliminary order providing a non-exhaustive list of issues that must be addressed was issued on September 11, 2025. On September 16, 2025, SOAH Order No. 1 was issued, ordering the parties to confer and submit a proposed procedural schedule or request a prehearing conference by September 26, 2025. On September 26, 2025, SOAH Order No. 2 was issued, extending the deadline to submit a proposed procedural schedule until October 3, 2025 and stating that this deadline may be further extended without order by agreement of the parties. On October 3, 2025, Houston Electric filed a letter of notification providing that all parties were engaged in constructive settlement talks and requested an abatement until October 17, 2025. On October 13, 2025, Houston Electric filed errata and supplemental testimony to modify its application to instead request preapproval of just one lease for all 36 small TEEEF units. On October 17, 2025, Houston Electric filed a letter indicating that the parties continue to engage in productive settlement negotiations and plan to file settlement documents or another status update by October 31, 2025.
May 2024 Storm Events
Houston Electric’s electric delivery system suffered significant damage as a result of the May 2024 Storm Events. As is common with electric utilities serving coastal regions, the poles, towers, wires, street lights and pole-mounted equipment that comprise Houston Electric’s transmission and distribution system are not covered by property insurance.
On November 8, 2024, Houston Electric filed an Application for Determination of System Restoration Costs with the PUCT to determine the reasonableness and necessity of approximately $502 million of costs (including estimated case processing expenses and carrying costs) incurred or expected to be incurred to restore service following the May 2024 Storm Events. On March 19, 2025, Houston Electric filed a settlement agreement with the PUCT, under which Houston Electric would be entitled to recover a total of $396 million in distribution-related costs relating to the May 2024 Storm Events, along with carrying costs from the date those costs were incurred until system restoration bonds are issued. The settlement agreement also provided for the recovery of $29 million in transmission-related costs related to the May 2024 Storm Events that will be eligible for recovery through existing mechanisms established to recover transmission costs. Houston Electric agreed to defer
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$17.5 million of its distribution-related costs to the Hurricane Beryl cost determination proceeding and further agreed to an overall $10 million reduction in costs as part of the settlement agreement. A final order approving the settlement agreement was issued by the PUCT on April 24, 2025. On January 24, 2025, Houston Electric filed a request for a Financing Order for the distribution costs included in the November 8, 2024 Application for Determination of System Restoration Costs. On April 23, 2025, Houston Electric filed a settlement agreement with the PUCT, under which Houston Electric would be entitled to securitize the approved distribution-related costs. A final order approving the settlement agreement was issued by the PUCT on June 5, 2025. The PUCT issued an irrevocable Financing Order on June 5, 2025, which became final and non-appealable on June 20, 2025.
In connection with the securitization of the system restoration costs incurred in connection with the May 2024 Storm Events, on June 20, 2025, Houston Electric and Restoration Bond Company II filed a registration statement, as amended on August 13, 2025 and as further amended on August 27, 2025, on Form SF-1 under the Securities Act with the SEC registering the public offering and sale of up to approximately $401.5 million aggregate principal amount of the May 2024 Storm Events System Restoration Bonds. The registration statement became effective on September 8, 2025. See Note 9 for additional detail on the issuance of the May 2024 Storm Events System Restoration Bonds.
Hurricane Beryl and Subsequent Storm Events
In 2024 and early 2025, Houston Electric’s service territory was damaged as a result of Hurricane Beryl and certain other significant storms. Houston Electric is deferring the related system restoration costs as management believes it is probable that such costs will be recovered through the regulatory process. The ultimate recovery of the system restoration costs (or a portion thereof) is expected to be sought through the issuance and sale of non-recourse securitization bonds for distribution-related costs. However, neither the amount nor timing of the recovery of the system restoration costs is certain.
On May 2, 2025, Houston Electric filed an Application for Determination of System Restoration Costs with the PUCT to determine the reasonableness and necessity of approximately $1.3 billion of costs (including estimated case processing expenses and carrying costs) incurred or expected to be incurred to restore service following Hurricane Beryl and certain other significant storms. Intervenor direct testimony was filed on June 30, 2025 and PUCT staff direct testimony was filed on July 3, 2025. Intervenor and PUCT staff disallowance positions totaled about $298.8 million and $4.7 million, respectively. Houston Electric’s rebuttal testimony was filed on July 18, 2025. On August 14, 2025, Houston Electric filed a settlement agreement with the PUCT, under which Houston Electric would be entitled to recover a total of $1.1 billion in distribution-related costs, along with carrying costs from the date those costs were incurred until the system restoration bonds are issued. The settlement agreement also provided for the recovery of $13 million in transmission-related costs that will be eligible for recovery through existing mechanisms established to recover transmission costs. As part of the settlement agreement, Houston Electric agreed to defer $78 million of its distribution-related costs to a regulatory asset and may request recovery and, if eligible, securitization of the deferral in a future rate case. Houston Electric further agreed as part of the settlement agreement to an overall $22 million reduction in distribution-related costs, which is comprised of shareholder equity carrying costs, and a $440,000 reduction in transmission-related costs, which is also comprised of shareholder equity carrying costs. On October 2, 2025, the PUCT voted to approve the settlement agreement with a modification to remove municipal legal fees and consulting and non-consulting fees from the securitization amount and defer such costs in a regulatory asset for recovery in a future ratemaking proceeding. On October 22, 2025, Houston Electric filed a letter to affirm the removal of $2.9 million of municipal legal fees and consulting and non-consulting fees from the securitization amount and defer these costs until a future rate making proceeding. This docket is included on a PUCT open meeting agenda on October 23, 2025.
(7) 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.
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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 Energy’s 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 inputs.
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 the Registrants’ judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Registrants develop these inputs based on the best information available, including the Registrants’ own data.
The Registrants determine the appropriate level for each financial asset and liability on a quarterly basis and recognize transfers between levels at the end of the reporting period. As of September 30, 2025 and December 31, 2024, the Registrants did not have any assets or liabilities classified as Level 3.
The following tables present information about the Registrants’ assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024 and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value.
CenterPoint Energy
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity securities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Investments, including money market funds (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Indexed debt securities derivative | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Houston Electric
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | (in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments, including money market funds (1) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
CERC
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments, including money market funds (1) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
(1)Included in Prepaid expenses and other current assets in the respective Condensed Consolidated Balance Sheets.
Estimated Fair Value of Financial Instruments
The fair values of cash and cash equivalents and investments in equity securities measured at fair value are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. Additionally, CenterPoint Energy’s ZENS indexed debt securities derivative is stated at fair value and is excluded from the table below. The fair value of each debt instrument included below is determined by multiplying the principal amount of each debt instrument by a
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combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Condensed Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy.
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy (1) | Houston Electric (1) | CERC | CenterPoint Energy (1) | Houston Electric | CERC | ||||||||||||||||||||||||||||||
| Long-term debt, including current maturities | (in millions) | ||||||||||||||||||||||||||||||||||
| Carrying amount | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Fair value | |||||||||||||||||||||||||||||||||||
(1)Includes Securitization Bonds, as applicable, and Short-term borrowings.
(8) Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy)
(a) Equity Securities
Gains and losses on equity securities, net of transaction costs, are recorded in Gain (loss) on equity securities in CenterPoint Energy’s Condensed Statements of Consolidated Income. The following table presents unrealized gains (losses), net on equity securities owned by CenterPoint Energy for each period presented:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| AT&T Common | $ | ( | $ | $ | $ | |||||||||||||||||||||
| Charter Common | ( | ( | ( | |||||||||||||||||||||||
| WBD Common | ( | |||||||||||||||||||||||||
| Total gains (losses) on equity securities, net | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
CenterPoint Energy and its subsidiaries hold shares of certain securities detailed in the table below, which are classified as trading securities. Shares of AT&T Common, Charter Common and WBD Common are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. The following table presents information on CenterPoint Energy’s equity securities for each period presented:
| Shares Held | Carrying Value | |||||||||||||||||||||||||
| September 30, 2025 | December 31, 2024 | September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| AT&T Common | $ | $ | ||||||||||||||||||||||||
| Charter Common | ||||||||||||||||||||||||||
| WBD Common | ||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||
(b) ZENS
In September 1999, CenterPoint Energy issued ZENS having an original principal amount of $1.0 billion, of which $828 million remained outstanding as of September 30, 2025. Each ZENS is exchangeable at the holder’s option at any time for an amount of cash equal to 95 % of the market value of the reference shares attributable to such note. The number and identity of the reference shares attributable to each ZENS are adjusted for certain corporate events. CenterPoint Energy’s reference shares for each ZENS consisted of the following:
| September 30, 2025 | December 31, 2024 | ||||||||||
| (in shares) | |||||||||||
| AT&T Common | |||||||||||
| Charter Common | |||||||||||
| WBD Common | |||||||||||
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CenterPoint Energy pays interest on the ZENS at an annual rate of 2 % plus the amount of any quarterly cash dividends paid in respect of the reference shares attributable to the ZENS. The principal amount of the ZENS is subject to increases or decreases to the extent that the annual yield from interest and cash dividends on the reference shares attributable to the ZENS is less than or more than 2.309 %. The adjusted principal amount is defined in the ZENS instrument as “contingent principal.” As of September 30, 2025, the ZENS, having an original principal amount of $828 million and a contingent principal amount of $2 million, were outstanding and were exchangeable, at the option of the holders, for cash equal to 95 % of the market value of the reference shares attributable to the ZENS.
(9) Short-term Borrowings and Long-term Debt
Debt Issuances. On January 31, 2025, CenterPoint Energy, through its wholly-owned subsidiary SIGECO, issued $165 million aggregate principal amount of 5.69 % First Mortgage Bonds, Series 2025A, Tranche A due 2055. Total proceeds, net of transaction expenses and fees, were approximately $164 million, which was used for the acquisition of Posey Solar. See Note 3 for additional detail.
In February 2025, Houston Electric issued $500 million aggregate principal amount of 4.80 % General Mortgage Bonds, Series AP, due 2030. Total proceeds, net of transaction expenses and fees, were approximately $495 million, which was used for general limited liability company purposes, including capital expenditures and working capital purposes.
On July 1, 2025, CenterPoint Energy, through its wholly-owned subsidiary SIGECO, entered into a bond purchase agreement with certain institutional investors, under which SIGECO agreed to sell, and each investor agreed to severally purchase (i) on July 1, 2025, $100 million aggregate principal amount of SIGECO’s 5.09 % First Mortgage Bonds, Series 2025B, Tranche A due 2031 (the “Series 2025B Tranche A Bonds”) and $105 million aggregate principal amount of SIGECO’s 5.52 % First Mortgage Bonds, Series 2025B, Tranche B due 2035 (the “Series 2025B Tranche B Bonds” and, together with the Series 2025B Tranche A Bonds, the “Series 2025B Bonds”), and (ii) on October 1, 2025 or such sooner date, as may be selected by SIGECO upon not less than five business days’ advance notice, $45 million aggregate principal amount of SIGECO’s 5.77 % First Mortgage Bonds, Series 2025C, Tranche A due 2040 (the “Series 2025C Tranche A Bonds”) and $100 million aggregate principal amount of SIGECO’s 6.18 % First Mortgage Bonds, Series 2025C, Tranche B due 2055 (the “Series 2025C Tranche B Bonds”, and together with the Series 2025C Tranche A Bonds, the “Series 2025C Bonds”) in the series and tranche as set forth in the bond purchase agreement.
On July 1, 2025, SIGECO closed on the offering of $205 million aggregate principal amount of the Series 2025B Bonds. The proceeds of the Series 2025B Bonds were used for general corporate purposes, including repaying short-term debt, refunding long-term debt at maturity or otherwise, and funding capital expenditures. The closing of the Series 2025C Bonds occurred on October 1, 2025. See Note 16 for further information.
In August 2025, Houston Electric issued $600 million aggregate principal amount of 4.95 % General Mortgage Bonds, Series AQ, due 2035. Total proceeds, net of transaction expenses and fees, were approximately $592 million, which were used for general limited liability company purposes, including capital expenditures and working capital purposes.
In September 2025, Restoration Bond Company II issued approximately $401.5 million aggregate principal amount of its Series 2025-A Senior Secured System Restoration Bonds in two tranches with interest rates of 4.255 % and 4.826 % and final maturity dates of December 2035 and June 2040, respectively. Restoration Bond Company II used the net proceeds from the issuance to purchase the system restoration property from Houston Electric. No gain or loss was recognized. The Series 2025-A Senior Secured System Restoration Bonds are secured by the system restoration property, which includes the right to recover, through non-bypassable system restoration charges payable by Houston Electric’s retail electric customers, the qualified costs of Houston Electric authorized by the PUCT Financing Order. Restoration Bond Company II, not Houston Electric, is the owner of the system restoration property, and the assets of Restoration Bond Company II are not available to pay the creditors of Houston Electric or its affiliates, other than Restoration Bond Company II. Houston Electric has no payment obligations with respect to the Series 2025-A Senior Secured System Restoration Bonds except to remit collections of system restoration charges as set forth in a servicing agreement between Houston Electric and Restoration Bond Company II. The non-bypassable system restoration charges are subject to a true-up mechanism.
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Convertible Senior Notes. On July 31, 2025, CenterPoint Energy issued $1 billion aggregate principal amount of 3.00 % Convertible Senior Notes due 2028. Total proceeds, net of transaction expenses and fees, were approximately $987 million, which was used for general corporate purposes, including repayment of a portion of CenterPoint Energy’s outstanding commercial paper and other debt.
Interest on the 2028 Convertible Notes is payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2026. The 2028 Convertible Notes will mature on August 1, 2028, unless earlier converted or repurchased by CenterPoint Energy in accordance with their terms.
Prior to the close of business on the business day immediately preceding May 1, 2028, the 2028 Convertible Notes are convertible only under certain conditions. On or after May 1, 2028 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2028 Convertible Notes may convert all or any portion of their 2028 Convertible Notes at any time at the conversion rate then in effect, irrespective of the conditions. CenterPoint Energy may not redeem the 2028 Convertible Notes prior to the maturity date.
Upon conversion of the 2028 Convertible Notes, CenterPoint Energy will pay cash up to the aggregate principal amount of the 2028 Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of Common Stock, or a combination of cash and shares of Common Stock, at CenterPoint Energy’s election, in respect of the remainder, if any, of CenterPoint Energy’s conversion obligation in excess of the aggregate principal amount of the 2028 Convertible Notes being converted. The conversion rate for the 2028 Convertible Notes is initially 21.4477 shares of Common Stock per $1,000 principal amount of 2028 Convertible Notes (equivalent to an initial conversion price of approximately $46.63 per share of Common Stock). The initial conversion price of the 2028 Convertible Notes represents a premium of approximately 25.0 % over the last reported sale price of the Common Stock on the NYSE on July 28, 2025. Initially, a maximum of 26,809,600 shares of Common Stock may be issued upon conversion of the 2028 Convertible Notes based on the initial maximum conversion rate of 26.8096 shares of Common Stock per $1,000 principal amount of 2028 Convertible Notes. The conversion rate will be subject to adjustment in some events (as described in the 2028 Convertible Notes Indenture) but will not be adjusted for any accrued and unpaid interest.
In addition, following certain corporate events that occur prior to the maturity date of the 2028 Convertible Notes, CenterPoint Energy will, in certain circumstances, increase the conversion rate for a holder of 2028 Convertible Notes who elects to convert its 2028 Convertible Notes in connection with such a corporate event. If CenterPoint Energy undergoes a fundamental change (as defined in the 2028 Convertible Notes Indenture) (other than an exempted fundamental change, as described in the 2028 Convertible Notes Indenture), holders of the 2028 Convertible Notes may require CenterPoint Energy to repurchase for cash all or any portion of their 2028 Convertible Notes at a fundamental change repurchase price equal to 100 % of the principal amount of the 2028 Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.
The 2028 Convertible Notes are senior unsecured obligations of CenterPoint Energy and rank senior in right of payment to any of CenterPoint Energy’s indebtedness that is expressly subordinated in right of payment to the 2028 Convertible Notes; equal in right of payment to any of CenterPoint Energy’s unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of CenterPoint Energy’s secured indebtedness it may incur in the future to the extent of the value of the assets securing such future secured indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables but excluding intercompany obligations and liabilities of a type not required to be reflected on a balance sheet of such subsidiaries in accordance with generally accepted accounting principles) of CenterPoint Energy’s subsidiaries.
Debt Repurchases. In March 2025, CERC, through its wholly-owned subsidiary Indiana Gas, repurchased $10 million aggregate principal amount of Indiana Gas’s 6.36 % Medium Term Notes, Series F, due 2028 at a redemption price equal to 104.8 % of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date.
In April 2025, CenterPoint Energy commenced cash tender offers for up to (i) $600 million aggregate purchase price of certain of CenterPoint Energy’s outstanding senior notes, ranging from 2.65 % to 5.40 % due 2026 to 2031, and (ii) $400 million aggregate purchase price of certain of CERC’s senior notes, ranging from 4.10 % to 5.40 % due 2028 to 2047. In May 2025, CenterPoint Energy accepted for purchase and paid approximately $1 billion aggregate purchase price of CenterPoint Energy’s and CERC’s notes pursuant to the tender offers. Upon completion of the tender offers, CenterPoint Energy cancelled approximately $634 million aggregate principal amount of its senior notes and CERC Corp. cancelled approximately $415 million aggregate principal amount of its senior notes pursuant to the terms of the respective indentures governing such notes. CenterPoint Energy and CERC recognized a gain on early extinguishment of debt of approximately $36 million and $9 million, respectively, for the nine months ended September 30, 2025, which is included in Interest expense and other finance charges on their Statements of Consolidated Income.
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In June 2025, CERC, through its wholly-owned subsidiary Indiana Gas, repaid at maturity $10 million aggregate principal amount of Indiana Gas’s 6.53 % Medium Term Notes, Series E due 2025 at a redemption price equal to 100 % of the principal amount to be redeemed plus accrued and unpaid interest thereon.
In July 2025, CenterPoint Energy, through its wholly-owned subsidiary SIGECO, repaid at maturity $41 million aggregate principal amount of SIGECO’s outstanding 3.45 % first mortgage bonds due 2025 at a redemption price equal to 100 % of the principal amount of the first mortgage bonds to be redeemed plus accrued and unpaid interest thereon.
Credit Facilities. On January 29, 2025, CenterPoint Energy, Houston Electric, CERC and SIGECO each entered into extension agreements to, among other things, extend the maturity date of the lenders’ commitments under each of their respective credit agreements by one year , from December 6, 2027 to December 6, 2028. The Registrants had the following revolving credit facilities as of September 30, 2025:
| Registrant | Execution Date | Size of Facility | Draw Rate of SOFR plus (1) | Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio | Debt for Borrowed Money to Capital Ratio as of September 30, 2025 (2) | Termination Date | ||||||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||||||||
| CenterPoint Energy | December 6, 2022 | $ | (3) | December 6, 2028 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy (4) | December 6, 2022 | December 6, 2028 | ||||||||||||||||||||||||||||||||||||
| Houston Electric | December 6, 2022 | (3) | December 6, 2028 | |||||||||||||||||||||||||||||||||||
| CERC | December 6, 2022 | December 6, 2028 | ||||||||||||||||||||||||||||||||||||
| Total | $ | |||||||||||||||||||||||||||||||||||||
(1)Based on credit ratings as of September 30, 2025.
(2)As defined in the revolving credit facility agreements, excluding Securitization Bonds.
(3)For CenterPoint Energy and Houston Electric, the financial covenant limit will temporarily increase to 70 % if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy 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 CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification.
(4)This credit facility was issued by SIGECO.
The Registrants, as well as the subsidiaries of CenterPoint Energy discussed above, were in compliance with all financial debt covenants as of September 30, 2025.
The table below reflects the utilization of the Registrants’ respective revolving credit facilities:
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Registrant | Loans | Letters of Credit | Commercial Paper | Weighted Average Interest Rate | Loans | Letters of Credit | Commercial Paper | Weighted Average Interest Rate | |||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except weighted average interest rate) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CenterPoint Energy (1) | $ | $ | $ | % | $ | $ | $ | % | |||||||||||||||||||||||||||||||||||||||||||||
CenterPoint Energy (2) | % | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Houston Electric | % | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
CERC (1) | % | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
(1)CenterPoint Energy’s and CERC’s outstanding commercial paper generally have maturities of up to 60 days and 30 days, respectively, and are backstopped by the respective issuer’s long-term revolving credit facility. As of September 30, 2025, CERC had outstanding balances of $280 million in commercial paper included in Current portion of long-
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term debt on its Consolidated Balance Sheet, as management expects to utilize current assets to repay these obligations.
(2)This credit facility was issued by SIGECO.
Liens. As of September 30, 2025, Houston Electric’s assets were subject to liens securing approximately $9.6 billion of general mortgage bonds outstanding under the General Mortgage, including approximately $68 million held in trust to secure pollution control bonds that mature in 2028 for which CenterPoint Energy is obligated. The general mortgage bonds that are held in trust to secure pollution control bonds are not reflected in Houston Electric’s consolidated financial statements because of the contingent nature of the obligations. Houston Electric may issue additional general mortgage bonds on the basis of retired bonds, 70 % of property additions or cash deposited with the trustee. As of September 30, 2025, approximately $4.3 billion of additional general mortgage bonds could be issued on the basis of retired bonds and 70 % of property additions. No first mortgage bonds are outstanding under the M&DOT, and Houston Electric is contractually obligated to not issue any additional first mortgage bonds under the M&DOT and is undertaking actions to release the lien of the M&DOT and terminate the M&DOT.
As of September 30, 2025, SIGECO had approximately $1.3 billion aggregate principal amount of first mortgage bonds outstanding. Generally, all of SIGECO’s real and tangible property is subject to the lien of SIGECO’s mortgage indenture which was amended and restated effective as of January 1, 2023. As of September 30, 2025, SIGECO was permitted to issue additional bonds under its mortgage indenture up to 70 % of then currently unfunded property additions and approximately $944 million of additional first mortgage bonds could be issued on this basis.
(10) Income Taxes
The Registrants reported the following effective tax rates:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
CenterPoint Energy (1) | ( | % | % | % | % | ||||||||||||||||||
Houston Electric (2) | % | % | % | % | |||||||||||||||||||
CERC (3) | ( | % | % | % | % | ||||||||||||||||||
(1)CenterPoint Energy’s lower effective tax rate for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily driven by a $74 million net benefit from state apportionment changes, resulting in a remeasurement of state deferred taxes. This benefit is partially offset by the impact of non-deductible goodwill associated with the sale of the Louisiana and Mississippi natural gas LDC businesses. CenterPoint Energy’s lower effective tax rate for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily driven by a $74 million net benefit from state apportionment changes, resulting in a remeasurement of state deferred taxes. This benefit is partially offset by the impact of non-deductible goodwill associated with the sale of the Louisiana and Mississippi natural gas LDC businesses and the absence of impacts associated with the state deferred tax remeasurement and valuation allowance related to the Louisiana and Mississippi natural gas LDC businesses recorded in 2024 upon classification as held for sale. For additional detail, see Note 3.
(2)Houston Electric’s lower effective tax rate for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily driven by a decrease in state income taxes.
(3)CERC’s lower effective tax rate for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily driven by a $73 million net benefit from state apportionment changes, resulting in a remeasurement of state deferred taxes. This benefit is partially offset by the impact of non-deductible goodwill associated with the sale of the Louisiana and Mississippi natural gas LDC businesses. CERC’s lower effective tax rate for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily driven by a $73 million net benefit from state apportionment changes, resulting in a remeasurement of state deferred taxes. This benefit is partially offset by the impact of non-deductible goodwill associated with the sale of the Louisiana and Mississippi natural gas LDC businesses and the absence of impacts associated with the state deferred tax remeasurement and valuation allowance related to the Louisiana and Mississippi natural gas LDC businesses recorded in 2024 upon classification as held for sale. For additional detail, see Note 3.
CenterPoint Energy reported a net uncertain tax liability, inclusive of interest and penalties, of $30 million as of September 30, 2025. The Registrants believe that it is reasonably possible that the Registrants will recognize a $11 million tax benefit, including penalties and interest, in the next 12 months as a result of a lapse of statutes on older exposures, a tax settlement, and/or a resolution of open audits.
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(11) Commitments and Contingencies
(a)Purchase Obligations (CenterPoint Energy and CERC)
Commitments include minimum purchase obligations related to CenterPoint Energy’s and CERC’s Natural Gas reportable segment and CenterPoint Energy’s 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 Energy’s and CERC’s Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 because these contracts meet an exception as “normal purchases contracts” or do not meet the definition of a derivative. Natural gas and coal supply commitments also include transportation contracts that do not meet the definition of a derivative.
As of September 30, 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) | |||||||||||||||||||||||
| Remainder of 2025 | $ | $ | $ | $ | |||||||||||||||||||
| 2026 | |||||||||||||||||||||||
| 2027 | |||||||||||||||||||||||
| 2028 | |||||||||||||||||||||||
| 2029 | |||||||||||||||||||||||
Thereafter | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
(1)Related to PPAs with commitments ranging from 20 years to 25 years.
(2)Related primarily 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. Costs arising from certain of these commitments are pass-through costs, generally collected dollar-for-dollar from retail customers through regulator-approved cost recovery mechanisms.
(b) AMAs (CenterPoint Energy and CERC)
CenterPoint Energy’s and CERC’s Natural Gas businesses continue to utilize AMAs associated with their utility distribution service in Indiana, Minnesota and Texas. The AMAs have varying terms, the longest of which expires in 2029. Pursuant to the provisions of the agreements, CenterPoint Energy’s and CERC’s Natural Gas businesses either sell natural gas to the asset manager and agree to repurchase an equivalent amount of natural gas throughout the year at the same cost, or simply purchase their full natural gas requirements at each delivery point from the asset manager. Generally, AMAs are contracts between CenterPoint Energy’s and CERC’s Natural Gas businesses and an asset manager that are intended to transfer the working capital obligation and maximize the utilization of the assets. In these agreements, CenterPoint Energy’s and CERC’s Natural Gas businesses agree to release transportation and storage capacity to other parties to manage natural gas storage, supply and delivery arrangements for CenterPoint Energy’s and CERC’s Natural Gas businesses and to use the released capacity for other purposes when it is not needed for CenterPoint Energy’s and CERC’s Natural Gas businesses. CenterPoint Energy’s and CERC’s Natural Gas businesses may receive compensation from the asset manager through payments made over the life of the AMAs. CenterPoint Energy’s and CERC’s Natural Gas businesses have an obligation to purchase their winter storage requirements that have been released to the asset manager under these AMAs. Amounts outstanding under these AMAs as of September 30, 2025 and December 31, 2024 were not material.
(c) Guarantees (CenterPoint Energy)
CenterPoint Energy recognizes guarantee obligations at fair value. CenterPoint Energy discloses parent company guarantees of a subsidiary’s obligation when that guarantee results in the exposure of a material obligation of the parent company even if the probability of fulfilling such obligation is considered remote.
On May 21, 2023, CenterPoint Energy, through Vectren Energy Services, entered into the Equity Purchase Agreement to
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sell Energy Systems Group. The sale closed on June 30, 2023.
In the normal course of business prior to the consummation of the transaction on June 30, 2023, CenterPoint Energy, primarily through Vectren, issued parent company level guarantees supporting Energy Systems Group’s obligations. When Energy Systems Group was wholly-owned by CenterPoint Energy, these guarantees did not represent incremental consolidated obligations, but rather, these guarantees represented guarantees of Energy Systems Group’s obligations to allow it to conduct business without posting other forms of assurance. For those obligations where potential exposure can be estimated, management estimated the maximum exposure under these guarantees to be approximately $444 million as of September 30, 2025 and expects the exposure to decrease pro rata. This exposure primarily relates to energy savings guarantees on federal energy savings performance contracts. Other parent company level guarantees, certain of which do not contain a cap on potential liability, were issued prior to the sale of Energy Systems Group in support of federal operations and maintenance projects for which a maximum exposure cannot be estimated based on the nature of the projects.
Under the terms of the Equity Purchase Agreement, ESG Holdings Group must generally use reasonable best efforts to replace existing CenterPoint Energy guarantees with credit support provided by a party other than CenterPoint Energy as of and after the closing of the transaction. The Equity Purchase Agreement also requires certain protections to be provided for any damages incurred by CenterPoint Energy in relation to these guarantees not released by closing. No additional guarantees were provided by CenterPoint Energy in favor of Energy Systems Group subsequent to the closing of the sale on June 30, 2023.
While there can be no assurance that performance under any of these parent company guarantees will not be required in the future, CenterPoint Energy considers the likelihood of a material amount being incurred to be remote. CenterPoint Energy believes that, from Energy Systems Group’s inception in 1994 to the closing of the sale of Energy Systems Group on June 30, 2023, Energy Systems Group had a history of generally meeting its performance obligations and energy savings guarantees and its installed products operated effectively. CenterPoint Energy recorded no amounts on its Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 related to its obligation under the outstanding guarantees.
(d) Legal, Environmental and Other Matters
Legal Matters
Litigation Related to Hurricane Beryl. Various federal, state and local governmental and regulatory agencies and other entities, such as the Texas Governor’s office, the Texas legislature and the PUCT, called for, conducted or are conducting inquiries and investigations into Hurricane Beryl, the efforts made by Houston Electric to prepare for, and respond to, this event, including the electric service outage issues, and the procurement of TEEEF. Moreover, additional governmental and regulatory agencies and other entities may conduct such inquiries and investigations. There are significant uncertainties around these inquiries and investigations and potential results and consequences, including with respect to our recovery of costs incurred as a result of Hurricane Beryl and whether any financial penalties will be assessed or changes to Houston Electric’s system, service territories, operations and/or regulatory treatment will result therefrom. Further, on January 22, 2025, a putative shareholder of CenterPoint Energy, Donel Davidson, filed a derivative petition in Harris County District Court, Texas, alleging breach of fiduciary duty and unjust enrichment on behalf of CenterPoint Energy against certain of its current and former directors and officers citing, in part, the topics of these inquiries and investigations. The action seeks to recover damages and other relief from the defendants on behalf of CenterPoint Energy. The action was removed to the Texas Business Courts, and on June 18, 2025, the parties filed an agreed upon stipulation to stay the case, which was approved by the court on June 24, 2025. Additionally, on February 12, 2025, a second putative shareholder of CenterPoint Energy made a demand on the Board to investigate the same basic allegations raised in the derivative petition filed by Donel Davidson.
CenterPoint Energy, CenterPoint Energy Service Company, LLC and Houston Electric are subject to current and potential future litigation and claims arising out of Hurricane Beryl, which litigation and claims could include allegations of, among other things, personal injury, wrongful death, property damage, various economic losses in connection with loss of power, unlawful business practices, and others. Following Hurricane Beryl, several putative class actions were filed against CenterPoint Energy and/or Houston Electric in the District Courts of Harris County, Texas, on behalf of individuals or entities who claim losses due to power outages lasting at least 48 hours as a result of Hurricane Beryl, such actions consisting of the following proposed classes: (1) all restaurants in Harris County, Galveston County, and Montgomery County; (2) all residential customers; and (3) all health, wellness, medical and beauty facilities in Harris County. These putative classes asserted claims and theories of negligence, gross negligence, nuisance, fraud, and/or violation of Houston Electric’s tariff for retail delivery service, and each seeks damages in excess of $100 two putative class actions have amended their petitions to remove all class action allegations and to assert only claims of gross negligence and intentional misconduct. One of those lawsuits is brought by
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approximately 220 individually named plaintiffs, and the other lawsuit includes approximately 45 individually named plaintiffs. Several individual actions have also been filed in Harris County District Courts asserting claims of negligence, negligence per se, negligent undertaking and/or gross negligence against CenterPoint Energy, CenterPoint Energy Service Company, LLC and/or Houston Electric. Certain plaintiffs in these actions allege personal injury or property damage and seek damages in excess of $1 million. These cases have been or will be transferred to the designated MDL pretrial court. CenterPoint Energy, CenterPoint Energy Service Company, LLC and Houston Electric intend to vigorously defend themselves against the lawsuits. CenterPoint Energy and its subsidiaries have general and excess liability insurance policies that provide coverage for third party bodily injury and property damage claims. Given the nature of some allegations, certain insurers have disputed, and more insurers may dispute, coverage for some types of claims or damages that have been or may in the future be alleged by plaintiffs. For example, CenterPoint Energy has received from two insurers denials of indemnity coverage in the cases arising out of power outages based on the failure to supply exclusion, and those insurers have also reserved their rights with respect to coverage in those actions. CenterPoint Energy and Houston Electric intend to continue to pursue all available insurance coverage for all of these matters. To date, there have not been demands, quantification, disclosure or discovery of damages by any party to any of the above legal matters that are sufficient to enable CenterPoint Energy and its subsidiaries to estimate exposure. Given that, as well as the preliminary nature of the proceedings, the number of parties and complexity of issues involved, and the uncertainties of litigation, CenterPoint Energy and its subsidiaries are unable to predict the outcome or consequences of any of the foregoing matters or to estimate a range of potential losses. For more information regarding Hurricane Beryl, see Note 6.
Litigation Related to the February 2021 Winter Storm Event. Various legal proceedings are still pending against numerous entities with respect to the February 2021 Winter Storm Event, including against CenterPoint Energy, Utility Holding, Houston Electric, and CERC. Like other Texas energy companies and TDUs, CenterPoint Energy and Houston Electric have become involved in certain investigations, litigation and other regulatory and legal proceedings regarding their efforts to restore power during the storm and their compliance with NERC, ERCOT and PUCT rules and directives. Additionally, like other natural gas market participants, CERC has been named in litigation alleging gas market manipulation.
CenterPoint Energy, Utility Holding, and Houston Electric, along with hundreds of other defendants (including ERCOT, power generation companies, other TDUs, natural gas producers, REPs, and other entities) received claims and lawsuits filed by plaintiffs alleging wrongful death, personal injury, property damage and other injuries and damages. As of September 30, 2025, there were approximately 220 pending lawsuits that are consolidated in Texas state court in Harris County, Texas, as part of the MDL proceeding related to the February 2021 Winter Storm Event, and CenterPoint Energy and Houston Electric, along with numerous other entities, have been named as defendants in approximately 155 of those lawsuits. One of the lawsuits in the MDL was a putative class action on behalf of everyone who received electric power via the ERCOT grid and sustained a power outage between February 10, 2021 and February 28, 2021. Additionally, Utility Holding is currently named as a defendant in one lawsuit in which CenterPoint Energy and Houston Electric are also named as defendants.
The judge overseeing the MDL issued an initial case management order and stayed all proceedings and discovery. Per the case management order, the judge entertained dispositive motions in five representative or “bellwether” cases and, in late January 2023, issued rulings on them. The judge ruled that ERCOT has sovereign immunity as a governmental entity and dismissed the suits against it. In a subsequent opinion in an unrelated matter, the Texas Supreme Court held that ERCOT is entitled to sovereign immunity. This ruling will apply to claims against ERCOT in the MDL. The MDL judge also dismissed all claims against the natural gas defendants (which list of natural gas defendants incorrectly included Utility Holding) and the REP defendants and some causes of action against the other defendants. CenterPoint Energy expects that the claims against Utility Holding will ultimately be dismissed in light of the judge’s initial rulings. As to the TDU and generator defendants, the judge dismissed some causes of action but denied the motions to dismiss claims for negligence, gross negligence, and nuisance, which denial the TDU defendants and generator defendants asked the courts of appeals to overturn. On April 2, 2024, a three-judge panel of the Court of Appeals for the Fourteenth District of Texas issued an opinion in the TDU mandamus proceeding, granting in part and denying in part the TDUs’ mandamus request. In its opinion, the panel granted the TDUs’ mandamus request relating to the TDUs’ motion to dismiss the plaintiffs’ claims for (1) negligence, (2) negligent nuisance and (3) strict liability nuisance and ordered those claims be dismissed. The panel denied the TDUs’ mandamus request relating to the TDUs’ motion to dismiss the plaintiffs’ gross negligence and intentional nuisance claims. On May 22, 2024, the TDUs filed a mandamus petition with the Supreme Court of Texas, seeking dismissal of the remaining claims. On June 27, 2025, the Supreme Court of Texas issued its decision and held that plaintiffs’ pleadings are insufficient as to both their intentional nuisance and gross negligence claims. The court dismissed plaintiffs’ intentional nuisance claims with prejudice, but concluded that plaintiffs should be given the opportunity to replead their gross negligence claims only.
In the generator mandamus proceeding that was pending in the Court of Appeals for the First District of Texas, a three-judge panel granted the generators’ mandamus request and ordered dismissal of all claims asserted against the generators’ defendants. The plaintiffs asked the entire First Court of Appeals to rehear the panel’s decision. On November 26, 2024, the First Court of Appeals denied that motion. The plaintiffs filed a petition for writ of mandamus with the Supreme Court of Texas on January 31, 2025, and on June 27, 2025, the Supreme Court of Texas requested briefing on the merits in that proceeding.
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The plaintiffs filed their brief on the merits on September 26, 2025, and the generator defendants’ response is currently due on November 17, 2025.
The MDL judge allowed defendants (including Houston Electric) to file several additional motions on preliminary legal issues. These motions included the TDUs’ motion to dismiss under Chapter 150 of the Texas Civil Practice and Remedies Code, which was filed in one of the bellwether cases and argued that all of plaintiffs’ claims should be dismissed because the plaintiffs did not include a sufficient certificate by a qualified engineer with their petition as required by Texas law, as well as a motion to deny class certification in the putative class action. On November 13, 2024, the MDL Court granted the TDUs’ motion to dismiss under Chapter 150, and on December 3, 2024, the plaintiffs filed a notice of appeal of that ruling. Briefing in this appellate proceeding is complete. On January 8, 2025, the MDL Court denied class certification in the putative class action. Following issuance of the order denying class certification, a new lawsuit was filed on behalf of approximately 140 plaintiffs in Harris County District Court against hundreds of defendants, including CenterPoint Energy and Houston Electric, and that case was transferred to the MDL on January 23, 2025. In addition, plaintiffs filed a notice of appeal of the denial of class certification on January 27, 2025, but dismissed that appeal on April 28, 2025. On August 13, 2025, the MDL judge signed orders dismissing all of the plaintiffs’ claims against the TDUs except gross negligence. On September 11, 2025, the MDL judge issued an order with a schedule for the plaintiffs to re-plead their gross negligence claims and for the TDUs to file certain dispositive motions in response. All litigation otherwise remains stayed in the MDL. CenterPoint Energy, Utility Holding, and Houston Electric intend to vigorously defend themselves against the claims raised.
CenterPoint Energy and Houston Electric have also responded to inquiries from the Texas Attorney General and the Galveston County District Attorney’s Office, and various other regulatory and governmental entities also conducted inquiries, investigations and other reviews of the February 2021 Winter Storm Event and the efforts made by various entities to prepare for, and respond to, the event, including the electric generation shortfall issues.
In February 2023, twelve lawsuits were filed in state district court in Harris County and Tom Green County, Texas, against dozens of gas market participants in Texas, including natural gas producers, processors, pipelines, marketers, sellers, traders, gas utilities, and financial institutions. Plaintiffs named CERC as a defendant, along with “CenterPoint Energy Services, Inc.,” incorrectly identifying it as CERC’s parent company (CenterPoint Energy previously divested CenterPoint Energy Services, Inc.). One lawsuit filed in Harris County is a putative class action on behalf of two classes of electric and natural gas customers (those who experienced a loss of electricity and/or natural gas, and those who were charged securitization-related surcharges on a utility bill or were otherwise charged higher rates for electricity and/or gas during the February 2021 Winter Storm Event), potentially including millions of class members. Two other lawsuits (one filed in Harris County and one in Tom Green County) were brought by an entity that purports to be an assignee of the claims of tens of thousands of persons and entities. These, and nine other similar lawsuits filed in Harris County, generally allege that the defendants engaged in gas market manipulation and price gouging, including by intentionally withholding, suppressing, or diverting supplies of natural gas in connection with the February 2021 Winter Storm Event, Winter Storm Elliott, and other severe weather conditions, and through financial market manipulation. Plaintiffs allege that this manipulation impacted gas supply and prices as well as the market, supply, and price of electricity in Texas and caused blackouts and other damage. Plaintiffs assert claims for tortious interference with existing contract, private nuisance, and unjust enrichment, and allege a broad array of injuries and damages, including personal injury, property damage, and harm from certain costs being securitized and passed on to ratepayers. The lawsuits do not specify the amount of damages sought, but seek broad categories of actual, compensatory, statutory, consequential, economic, and punitive damages; restitution and disgorgement; pre- and post-judgment interest; costs and attorneys’ fees; and other relief. All twelve lawsuits have been tagged for transfer to the existing MDL proceeding referenced above, but only three of the cases have been served against the defendants, including CERC. These gas market cases are in addition to the 220 cases noted above regarding electric market issues.
On February 2, 2024, CERC filed pleas to the jurisdiction in the three cases in which it was served; CERC also partially joined the other defendants’ motions to dismiss and additional pleas to the jurisdiction. On April 2, 2024, plaintiffs in the three served cases filed amended petitions rather than responding to pleas to the jurisdiction and motions to dismiss. Among other changes, plaintiffs in these three cases dismissed CenterPoint Energy Services, Inc., but maintained the same three causes of action as to the remaining defendants. CERC has vigorously defended itself against the claims raised, including filing updated pleas to the jurisdiction on May 17, 2024 in response to plaintiffs’ amended petitions and intends to continue to do so. On August 12, 2024, plaintiffs in the putative class action filed a motion for leave to amend to add additional plaintiffs/class representatives. Defendants opposed this motion on September 20, 2024. On September 23, 2024, the MDL judge heard oral argument on CERC’s plea to the jurisdiction and defendants’ motions to dismiss and other pleas to the jurisdiction. On November 7, 2024 and November 11, 2024, the MDL judge granted defendants’ motion to dismiss and CERC’s plea to the jurisdiction in all three cases. As a result of these rulings, all claims against CERC were dismissed with prejudice. Plaintiffs have appealed these rulings, and the appeals have been assigned to the Court of Appeals for the First District of Texas. On December 4, 2024, the MDL judge denied as moot a plaintiff’s motion for leave to amend to add additional plaintiffs/class representatives in the putative class action case. On January 17, 2025, the plaintiffs in the putative class action case filed an
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unopposed motion to dismiss their appeal, which the Court of Appeals granted on February 4, 2025. The parties have now completed their briefing.
To date, there have not been demands, quantification, disclosure or discovery of damages by any party to any of the above legal matters that are sufficient to enable CenterPoint Energy and its subsidiaries to estimate exposure. Given that, as well as the preliminary nature of the proceedings, the number of parties and complexity of issues involved, and the uncertainties of litigation, CenterPoint Energy and its subsidiaries are unable to predict the outcome or consequences of any of the foregoing matters or to estimate a range of potential losses. CenterPoint Energy and its subsidiaries have general and excess liability insurance policies that provide coverage for third party bodily injury and property damage claims. As CenterPoint Energy previously noted, given the nature of certain of the plaintiffs’ allegations, insurance coverage may not be available other than for third party bodily injury and property damage claims caused by an accident, and one of CenterPoint Energy’s insurers has reserved its rights with respect to coverage for plaintiffs’ intentional nuisance claims as well as plaintiffs’ claims in the gas market cases. CenterPoint Energy and its subsidiaries intend to continue to pursue all available insurance coverage for all of these matters.
Jefferson Parish. Several parishes and the State of Louisiana filed 42 suits under Louisiana’s State and Local Coastal Resources Management Act against hundreds of oil and gas companies seeking compensatory damages for contamination and erosion of the Louisiana coastline allegedly caused by historical oil and gas operations. One of the defendants in one of the lawsuits (filed in 2013 only by the Parish of Jefferson) is Primary Fuels, Inc., a predecessor company of CenterPoint Energy, which operated in Louisiana from 1983-1989. All 42 suits were removed to Louisiana federal courts twice and were stayed for several years pending the district courts’ consideration of various motions to remand and multiple appeals of remand orders. Several cases involving other parishes were remanded to Louisiana state court. To date, two of the 42 suits have substantially progressed in state court. The first case, Cameron Parish v. Auster Oil & Gas, Inc., et al., settled shortly before trial on confidential terms. The second case, Plaquemines Parish v. Rozel Operating Co., et al., was tried against one defendant, Chevron Corporation, and on April 4, 2025, the jury returned a verdict of $744.6 million. Before final judgment was entered, the Rozel case was stayed until the United States Supreme Court rules on the merits of a jurisdictional issue in a related case that does not include Primary Fuels, Inc. As of September 30, 2025, the federal district court had not ruled on Jefferson Parish’s motion to remand to state court the lawsuit which includes Primary Fuels, Inc. among the defendants. The timing of further progress in the Jefferson Parish case is uncertain and dependent in part on the court’s ruling on the motion to remand and further developments in other related Chevron Corporation cases.
Because of the procedurally preliminary nature of the proceedings in the case in which Primary Fuels, Inc. is a defendant, lack of information about both the scope of and damages for Jefferson Parish’s claim against Primary Fuels, Inc., the number of parties and complexity of issues involved, and the uncertainties of litigation, CenterPoint Energy and its subsidiaries are unable to predict the outcome or consequences of this matter or to estimate a range of potential losses. CenterPoint Energy intends to continue to vigorously defend itself against the claims raised and pursue any and all available insurance coverage.
Environmental Matters
MGP Sites. CenterPoint Energy, CERC and their predecessors, including predecessors of Vectren, operated MGPs in the past. The costs CenterPoint Energy or CERC, as applicable, expect to incur to fulfill their respective obligations are estimated by management using assumptions based on actual costs incurred, the timing of expected future payments and inflation factors, among others. While CenterPoint Energy and CERC have recorded obligations for all costs which are probable and estimable, including amounts they are presently obligated to incur in connection with activities at these sites, it is possible that future events may require remedial activities which are not presently foreseen, and those costs may not be subject to PRP or insurance recovery.
(i)Minnesota MGPs (CenterPoint Energy and CERC). With respect to certain Minnesota MGP sites, CenterPoint Energy and CERC have completed state-ordered remediation and continue state-ordered monitoring and water treatment. CenterPoint Energy and CERC recorded a liability as reflected in the table below for continued monitoring and any future remediation required by regulators in Minnesota.
(ii)Indiana MGPs (CenterPoint Energy and CERC). In the Indiana Gas service territory, the existence, location and certain general characteristics of 26 one of the sites under an agreed upon order between Indiana Gas and the IDEM, and a Record of Decision was issued by the IDEM in January 2000. The remaining sites have been submitted to the IDEM’s VRP. CenterPoint Energy has also identified its involvement in five manufactured gas plant sites in SIGECO’s service territory, all of which are currently enrolled in the IDEM’s VRP. CenterPoint Energy is currently conducting some level of remedial activities, including groundwater monitoring at certain sites.
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(iii)Other MGPs (CenterPoint Energy and CERC). In addition to the Minnesota and Indiana sites, the EPA and other regulators have investigated MGP sites that were owned or operated by CenterPoint Energy or CERC or may have been owned by one of their former affiliates.
Total costs that may be incurred in connection with addressing these sites cannot be determined at this time. The estimated accrued costs are limited to CenterPoint Energy’s and CERC’s share of the remediation efforts and are therefore net of exposures of other PRPs. The estimated range of possible remediation costs for the sites for which CenterPoint Energy and CERC believe they may have responsibility was based on remediation continuing for the minimum time frame given in the table below:
| September 30, 2025 | |||||||||||
| CenterPoint Energy | CERC | ||||||||||
| (in millions, except years) | |||||||||||
| Amount accrued for remediation | $ | $ | |||||||||
| Minimum estimated remediation costs | |||||||||||
| Maximum estimated remediation costs | |||||||||||
| Minimum years of remediation | |||||||||||
| Maximum years of remediation | |||||||||||
The cost estimates are based on studies of a site or industry average costs for remediation of sites of similar size. The actual remediation costs will depend on the number of sites to be remediated, the participation of other PRPs, if any, and the remediation methods used.
CenterPoint Energy and CERC do not expect the ultimate outcome of these matters to have a material adverse effect on the financial condition, results of operations or cash flows of either CenterPoint Energy or CERC.
Asbestos. Some facilities owned by the Registrants or their predecessors contain or have contained asbestos insulation and other asbestos-containing materials. The Registrants 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 the Registrants anticipate that additional claims may be asserted in the future. Although their ultimate outcome cannot be predicted at this time, the Registrants do not expect these matters, either individually or in the aggregate, to have a material adverse effect on their financial condition, results of operations or cash flows.
CCR Rule (CenterPoint Energy). In April 2015, the EPA finalized its CCR Rule, which regulates ash as non-hazardous material under the RCRA. The final rule allows beneficial reuse of ash, and a portion of the ash generated by Indiana Electric’s generating plants will continue to be reused.
Indiana Electric has three ash ponds, two at the F.B. Culley facility (Culley East and Culley West) and one at the A.B. Brown facility. Under the CCR Rule, Indiana Electric is required to perform integrity assessments, including ground water monitoring, at its F.B. Culley and A.B. Brown generating stations. Pursuant to the CCR Rule, both the Culley East and A.B. Brown facilities were taken out of service in a timely manner per the commitments made to the EPA in the extension requests filed for both ponds. On April 24, 2019, Indiana Electric received an order from the IURC approving recovery in rates of costs associated with the closure of the Culley West pond, which has already completed closure activities. On August 14, 2019, Indiana Electric filed its petition with the IURC for recovery of costs associated with the closure of the A.B. Brown ash pond, which would include costs associated with the excavation and recycling of ponded ash. This petition was subsequently approved by the IURC on May 13, 2020. On October 28, 2020, the IURC approved Indiana Electric’s ECA proceeding, which included the initiation of recovery of the federally mandated project costs.
On November 1, 2022, Indiana Electric filed for a CPCN to recover federally mandated costs associated with closure of the Culley East Pond, its third and final ash pond. Indiana Electric sought accounting and ratemaking relief for the project, and on June 8, 2023, Indiana Electric filed a revised CPCN for recovery of the federally mandated ash pond costs. On February 7, 2024 the IURC approved the federally mandated costs, both incurred and projected, of $52 million in capital costs, plus an estimated $133,000 in annual operation and maintenance expenses, for recovery through the ECA. Following approval of its most recent rate case, this project is now being recovered through base rates.
As of September 30, 2025, CenterPoint Energy had recorded an approximate $137 million ARO, which represents the discounted value of future cash flow estimates to close the ponds at A.B. Brown and F.B. Culley. This estimate is subject to change due to the contractual arrangements; continued assessments of the ash, closure methods, and the timing of closure;
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implications of Indiana Electric’s generation transition plan; changing environmental regulations; and proceeds received from the settlements in previously settled insurance proceedings. In addition to these AROs, Indiana Electric also anticipates equipment purchases of between $60 million and $80 million to complete the A.B. Brown closure project.
On April 25, 2024, the EPA released its final Hazardous and Solid Waste Management System; Disposal of Coal Combustion Residuals from Electric Utilities; Legacy CCR Surface Impoundments rule (CCR Legacy Rule), which was published in the Federal Register in May 2024. The CCR Legacy Rule requires companies to investigate previously closed impoundments that were used historically for ash disposal or locations which have had ash placed on them in amounts set forth in the CCR Legacy Rule. The Registrants have completed their preliminary review of potential sites that will require further investigation under the CCR Legacy Rule and identified certain sites in Indiana for further evaluation. During 2024, Indiana Electric recorded an approximate $11 million ARO with a corresponding increase of $11 million to Property, plant and equipment for amounts recoverable for electric generation stations that are currently in service. These estimates reflect the discounted value of future estimated capping costs for an area of historic ash placement at F.B. Culley. Indiana Electric will continue to refine the assumptions, engineering analyses and resulting cost estimates associated with this ARO and such refinement could materially impact the amount of the estimated ARO.
Clean Water Act Permitting of Groundwater and Power Plant Discharges. In April 2020, the U.S. Supreme Court issued an opinion providing that indirect discharges via groundwater or other non-point sources are subject to permitting and liability under the Clean Water Act when they are the functional equivalent of a direct discharge. On November 27, 2023, the EPA published draft guidance regarding the application of the “functional equivalent” analysis as related to permitting of certain discharges through groundwater to surface waters. The Registrants do not currently anticipate impacts from this guidance, but groundwater monitoring continues under the CCR Rule.
In 2015, the EPA finalized revisions to the existing steam electric wastewater discharge standards which set more stringent wastewater discharge limits and effectively prohibited further wet disposal of coal ash in ash ponds. In February 2019, the IURC approved Indiana Electric’s Effluent Limitation Guidelines Compliance Plan for its F.B. Culley Generating Station, which was completed in compliance with the requirements of the Effluent Limitation Guidelines. On April 25, 2024, the EPA released its final Supplemental Effluent Limitation Guidelines and Standards for the Steam Electric Generating Point Source Category. On September 29, 2025, the EPA released a proposed rule to extend various deadlines and other provisions of the 2024 Supplemental Effluent Limitation Guidelines. The Registrants currently anticipate that they will be in compliance with the Supplemental Effluent Limitation Guidelines at the Culley facility due to previous wastewater treatment upgrades.
Other Environmental. From time to time, the Registrants identify the presence of environmental contaminants during operations or on property where their predecessors have conducted operations. Other such sites involving contaminants may be identified in the future. The Registrants have and expect to continue to remediate any identified sites consistent with state and federal legal obligations. From time to time, the Registrants have received notices, and may receive notices in the future, from regulatory authorities or others regarding status as a PRP in connection with sites found to require remediation due to the presence of environmental contaminants. In addition, the Registrants have been, or may be, named from time to time as defendants in litigation related to such sites. Although the ultimate outcome of such matters cannot be predicted at this time, the Registrants do not expect these matters, either individually or in the aggregate, to have a material adverse effect on their financial condition, results of operations or cash flows.
Other Proceedings
The Registrants are 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, the Registrants are also defendants 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. The Registrants regularly analyze current information and, as necessary, provide accruals for probable and reasonably estimable liabilities on the eventual disposition of these matters. The Registrants do not expect the disposition of these matters to have a material adverse effect on the Registrants’ financial condition, results of operations or cash flows.
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(12) Earnings Per Share (CenterPoint Energy)
The methodology for calculating basic and diluted earnings per share was disclosed in our combined 2024 Form 10-K. Except as described below, there have been no material changes in those disclosures.
Until settlement of the equity forwards executed in April 2025 and May 2025 further described in Note 15, dilutive earnings per common share reflects the dilutive impact of potential issuances of shares of Common Stock associated with the outstanding equity forwards. The dilutive effect of equity forwards is determined under the treasury stock method. Share dilution occurs when the average market price of Common Stock is higher than the forward sales price at the end of the reporting period.
Diluted earnings per common share will also reflect the dilutive effect of potential conversions of our convertible notes into shares of Common Stock. Convertible debt in which the principal amount must be settled in cash is excluded from the calculation of diluted earnings per common share. There would be no interest expense adjustment to the numerator for the cash-settled portion of the convertible notes because that portion will always be settled in cash. The conversion spread value in shares will be included in diluted earnings per common share using the if-converted method if the average market price of Common Stock is higher than the conversion price. The denominator of diluted earnings per common share is determined by dividing the conversion spread value of the share-settled portion of the convertible notes as of the reporting date by the average share price over the reporting period. For further details about the 2028 Convertible Notes, see Note 9.
The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions, except per share and share amounts) | |||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
| Denominator: | |||||||||||||||||||||||
Weighted average common shares outstanding – basic | |||||||||||||||||||||||
Plus: | |||||||||||||||||||||||
| Restricted stock | |||||||||||||||||||||||
| Equity forwards | |||||||||||||||||||||||
Convertible notes (1) | |||||||||||||||||||||||
Weighted average common shares outstanding – diluted | |||||||||||||||||||||||
| Earnings Per Common Share: | |||||||||||||||||||||||
| Basic | $ | $ | $ | $ | |||||||||||||||||||
| Diluted | $ | $ | $ | $ | |||||||||||||||||||
(1)Related to the 2026 Convertible Notes.
(13) 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 September 30, 2025, reportable segments by Registrant and information about each Registrant’s CODM were as follows:
CenterPoint Energy
•CenterPoint Energy’s Electric reportable segment consists of electric transmission and distribution services in the Texas Gulf Coast area in the ERCOT region and electric transmission and distribution services primarily to southwestern Indiana and includes power generation and wholesale power operations in the MISO region.
•CenterPoint Energy’s Natural Gas reportable segment consists of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, and industrial customers in Indiana, Minnesota, Ohio and
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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 proposed transaction is expected to close in the fourth quarter of 2026. For further information, see Note 16 to the Interim Condensed Financial Statements.
•CenterPoint Energy’s Corporate and Other category consists of corporate support operations that support all of CenterPoint Energy’s business operations. CenterPoint Energy’s Corporate and Other also includes office buildings and other real estate used for business operations.
CenterPoint Energy’s CODM, the President and Chief Executive Officer, evaluates performance for all of its reportable segments based on segment net income. The CODM uses segment net income to allocate resources as part of the budgeting and forecasting process as well as during periodic budget-to-actual reviews.
Houston Electric
•Houston Electric’s single reportable segment consists of electric transmission services to transmission service customers in the ERCOT region and distribution services to REPs serving the Texas Gulf Coast area that includes the city of Houston.
Houston Electric’s CODM, the President and Chief Executive Officer, evaluates performance for its single reportable segment based on segment net income. The CODM uses segment net income to allocate resources as part of the budgeting and forecasting process as well as during periodic budget-to-actual reviews.
CERC
•CERC’s single reportable segment following the Restructuring and the closing of the sale of the Louisiana and Mississippi natural gas LDC businesses on March 31, 2025 consists 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 proposed transaction is expected to close in the fourth quarter of 2026. For further information, see Note 16 to the Interim Condensed Financial Statements.
CERC’s CODM, the President and Chief Executive Officer, evaluates performance for its single reportable segment based on segment net income. The CODM uses segment net income to allocate resources as part of the budgeting and forecasting process as well as during periodic budget-to-actual reviews.
Expenditures for long-lived assets include property, plant and equipment. Intersegment sales are eliminated in consolidation, except as described in Note 1.
Financial data for reportable segments is as follows:
CenterPoint Energy
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| Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||
Electric | Natural Gas | Corporate and Other | Total Reportable Segments | Eliminations | Total | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Utility natural gas, fuel and purchased power | |||||||||||||||||||||||||||||||||||
| Non-utility cost of revenues, including natural gas | |||||||||||||||||||||||||||||||||||
Operation and maintenance expenses | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||
Taxes other than income taxes | ( | ||||||||||||||||||||||||||||||||||
| Interest expense and other finance charges | ( | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Interest income (1) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other expense (income), net (2) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||
Electric | Natural Gas | Corporate and Other | Total Reportable Segments | Eliminations | Total | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Utility natural gas, fuel and purchased power | |||||||||||||||||||||||||||||||||||
| Non-utility cost of revenues, including natural gas | ( | ||||||||||||||||||||||||||||||||||
Operation and maintenance expenses | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||
Taxes other than income taxes | |||||||||||||||||||||||||||||||||||
Interest expense and other finance charges | ( | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||||||||||||||||||||
Interest income (1) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Other expense (income), net (2) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
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| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||
Electric | Natural Gas | Corporate and Other | Total Reportable Segments | Eliminations | Total | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Revenues from external customers | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
| Intersegment revenues | ( | ||||||||||||||||||||||||||||||||||
| Utility natural gas, fuel and purchased power | ( | ||||||||||||||||||||||||||||||||||
| Non-utility cost of revenues, including natural gas | |||||||||||||||||||||||||||||||||||
| Operation and maintenance expenses | ( | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||||||||||||||
| Taxes other than income taxes | |||||||||||||||||||||||||||||||||||
| Interest expense and other finance charges | ( | ||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | ( | ||||||||||||||||||||||||||||||||||
| Interest income (1) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Other expense (income), net (2) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Net income (loss) | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Electric | Natural Gas | Corporate and Other | Total Reportable Segments | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Utility natural gas, fuel and purchased power | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-utility cost of revenues, including natural gas | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operation and maintenance expenses | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes other than income taxes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense and other finance charges | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income (1) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense (income), net (2) | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Interest income from Securitization Bonds of less than $1 million and $1 million for the three months ended September 30, 2025 and 2024, respectively, and less than $1 million and $3 million for the nine months ended September 30, 2025 and 2024, respectively, is included in Other expense (income), net on CenterPoint Energy’s Statements of Consolidated Income.
(2) Amount primarily includes AFUDC equity, non-service cost for pension and postretirement benefits, Gain (loss) on equity securities, Gain (loss) on indexed debt securities and Loss on sale.
Expenditures for Long-lived Assets | ||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
| Electric | $ | $ | ||||||||||||||||||||||||||||||
| Natural Gas | ||||||||||||||||||||||||||||||||
Corporate and Other | ||||||||||||||||||||||||||||||||
| Consolidated | $ | $ | ||||||||||||||||||||||||||||||
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| Total Assets | |||||||||||
| September 30, 2025 | December 31, 2024 | ||||||||||
(in millions) | |||||||||||
| Electric | $ | $ | |||||||||
| Natural Gas | |||||||||||
Corporate and Other (1) | |||||||||||
| Consolidated | $ | $ | |||||||||
(1)Total assets included pension and other postemployment-related regulatory assets of $365 million and $384 million as of September 30, 2025 and December 31, 2024, respectively.
Houston Electric
Houston Electric consists of a single reportable segment. For financial data related to income and expenses for the single reportable segment, see Houston Electric’s Statements of Consolidated Income. For financial data related to segment total assets, see Houston Electric’s Consolidated Balance Sheets. Expenditures for long-lived assets were $1.9 billion and $1.4 billion for the nine months ended September 30, 2025 and 2024, respectively. Financial data related to interest income is as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | (in millions) | ||||||||||||||||||||||
Interest income (1) | $ | $ | $ | $ | |||||||||||||||||||
CERC
CERC consists of a single reportable segment. For financial data related to income and expenses for the single reportable segment, see CERC’s Statements of Consolidated Income. For financial data related to segment total assets, see CERC’s Consolidated Balance Sheets. Expenditures for long-lived assets were $1.1 billion and $1.1 billion for the nine months ended September 30, 2025 and 2024, respectively. Financial data related to interest income is as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | (in millions) | ||||||||||||||||||||||
Interest income (1) | $ | $ | $ | $ | |||||||||||||||||||
(14) Related Party Transactions (Houston Electric and CERC)
Houston Electric and CERC participate in CenterPoint Energy’s 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 Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper.
The table below summarizes CenterPoint Energy money pool activity:
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Houston Electric | CERC | Houston Electric | CERC | ||||||||||||||||||||
| (in millions, except interest rates) | |||||||||||||||||||||||
Money pool investments (1) | $ | $ | $ | $ | |||||||||||||||||||
| Weighted average interest rate | % | % | % | % | |||||||||||||||||||
(1)Included in Accounts and notes receivable–affiliated companies in Houston Electric’s respective Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024.
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Houston Electric and CERC affiliate-related transactions were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Houston Electric | CERC | Houston Electric | CERC | Houston Electric | CERC | Houston Electric | CERC | ||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income (expense), net (1) | $ | ( | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
(1) Interest income is included in Other income, net and interest expense is included in Interest expense and other finance charges on Houston Electric’s and CERC’s respective Statements of Consolidated Income.
CenterPoint Energy provides some corporate services to Houston Electric and CERC. The costs of services have been charged directly to Houston Electric and CERC using methods that management believes are reasonable. These methods include 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. Houston Electric provides certain 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. Additionally, 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. These charges are not necessarily indicative of what would have been incurred had Houston Electric and CERC not been affiliates.
The table below presents amounts charged for these services, which are included primarily in Operation and maintenance expenses on Houston Electric’s and CERC’s respective Condensed Statements of Consolidated Income:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Houston Electric | CERC | Houston Electric | CERC | Houston Electric | CERC | Houston Electric | CERC | ||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Corporate service charges | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Affiliate service charges (billings), net | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
(15) Equity
Dividends Declared and Paid (CenterPoint Energy)
CenterPoint Energy’s dividends declared and dividends paid are presented below:
Dividends Declared Per Share | Dividends Paid Per Share | |||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||
| Common Stock | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Common Stock (CenterPoint Energy)
(a) 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 Stock subject to the Equity Distribution Agreement, (2) termination of the Equity Distribution Agreement, or (3) May 17, 2026.
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In April 2025, CenterPoint Energy entered into separate forward sale agreements pursuant to the Equity Distribution Agreement with certain of the ATM Forward Purchasers relating to 3,277,764 shares and 680,902 shares of Common Stock at an initial forward price of $36.29 per share and $36.72 per share, respectively. The gross sales price of these shares totaled approximately $120 million and $25 million, respectively. In connection with these sales, the ATM Forward Sellers were deemed to have received commissions of approximately $1 million and less than $1 million, respectively. In May 2025, CenterPoint Energy entered into a forward sale agreement with an ATM Forward Purchaser relating to 521,962 shares of Common Stock at an initial forward price of $37.49 per share. The gross sales price of these shares totaled approximately $20 million. In connection with these sales, the ATM Forward Seller was deemed to have received a commission of less than $1 million. CenterPoint Energy has not received any proceeds from such sales of borrowed shares. On a settlement date or dates, if CenterPoint Energy elects to physically settle the forward sale agreements, CenterPoint Energy will issue shares of Common Stock to the counterparties at the then-applicable forward sale price. The forward price used to determine amounts due at settlement is calculated based on a floating interest rate factor equal to the overnight bank funding rate less a spread of 75 basis points, and will be subject to decrease on certain dates specified in the forward sale agreements by specified amounts related to expected dividends on the shares of the Common Stock during the term of the forward sale agreements. If the overnight bank funding rate is less than or more than the spread on any day, the interest rate factor will result in a reduction or an increase, respectively, of the forward sale price.As initial pricing terms were based on market prices for Common Stock, no amounts were recorded at the execution of the forward sale agreements. CenterPoint Energy will receive proceeds when settlement occurs and will record the proceeds in equity.
The forward sale agreements require CenterPoint Energy to, at its election on or prior to May 14, 2026, either (1) physically settle the transactions by issuing the total of 4,480,628 shares of Common Stock to the counterparties in exchange for cash of approximately $164 million or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares of Common Stock. Pursuant to such net settlement provisions, these agreements could have been settled on September 30, 2025 by CenterPoint Energy’s delivery of approximately $9.5 million of cash or 245,645 shares of Common Stock to the banking counterparties if CenterPoint Energy unilaterally elected net cash or net share settlement, respectively. As of September 30, 2025, CenterPoint Energy had approximately $85 million of remaining capacity available under the at-the-market program.
(b) Forward Sale Agreements
In May 2025, CenterPoint Energy entered into separate forward sale agreements with certain financial institutions relating to an aggregate of 24,864,865 shares of Common Stock at an initial forward price of $36.26 per share. On a settlement date or dates, if CenterPoint Energy elects to physically settle the forward sale agreements, CenterPoint Energy will issue shares of Common Stock to the counterparties at the then-applicable forward sale price. Each forward sale agreement provides that the initial forward sale price will be subject to adjustment based on a floating interest rate factor equal to the overnight bank funding rate less a spread of 75 basis points, and will be subject to decrease on each of certain dates specified in the relevant forward sale agreement by amounts related to expected dividends on shares of the Common Stock during the term of such forward sale agreement. If the overnight bank funding rate is less than or more than the spread on any day, the interest rate factor will result in a reduction or an increase, respectively of the forward sale price. As initial pricing terms were based on market prices for Common Stock, no amounts were recorded at the execution of the forward sale agreements. CenterPoint Energy will receive proceeds when settlement occurs and will record the proceeds in equity.
The forward sale agreements require CenterPoint Energy to, at its election on or prior to February 25, 2027, either (1) physically settle the transactions by issuing the total of 24,864,865 shares of Common Stock to the counterparties in exchange for cash of $907 million or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares of Common Stock. Pursuant to such net settlement provisions, these agreements could also have been settled on September 30, 2025 by CenterPoint Energy’s delivery of approximately $58 million of cash or 1,487,454 shares of Common Stock to the banking counterparties if CenterPoint Energy unilaterally elected net cash or net share settlement, respectively.
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Accumulated Other Comprehensive Income (Loss) (CenterPoint Energy and CERC)
Changes in accumulated comprehensive income (loss) are as follows:
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy | CERC | CenterPoint Energy | CERC | ||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Beginning Balance | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
| Actuarial losses (1) | ( | ( | |||||||||||||||||||||||||||||||||
Reclassification of deferred gain from cash flow hedges realized in net income | ( | ||||||||||||||||||||||||||||||||||
Other comprehensive income | ( | ( | |||||||||||||||||||||||||||||||||
| Ending Balance | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy | CERC | CenterPoint Energy | CERC | ||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Beginning Balance | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications: | |||||||||||||||||||||||||||||||||||
| Remeasurement of pension and other postretirement plans | ( | ||||||||||||||||||||||||||||||||||
Net deferred gain from cash flow hedges | |||||||||||||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Prior service cost (1) | |||||||||||||||||||||||||||||||||||
Actuarial losses (gain) (1) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Reclassification of deferred gain from cash flow hedges realized in net income | ( | ( | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Ending Balance | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||
(1)Amounts are included in the computation of net periodic cost and are reflected in Other income, net in each of the Registrants’ respective Condensed Statements of Consolidated Income.
(16) Subsequent Events
Debt Issuance (CenterPoint Energy)
On October 1, 2025, SIGECO closed on the remaining of the offering of $145 million aggregate principal amount of the Series 2025C Bonds. The proceeds of the 2025C Bonds were used for general corporate purposes, including repaying short-term debt, refunding long-term debt at maturity or otherwise, and funding capital expenditures.
Tender Offers (CenterPoint Energy and Houston Electric)
In September 2025, CenterPoint Energy commenced cash tender offers for up to (i) $300 million aggregate purchase price of certain of CenterPoint Energy’s outstanding senior notes, ranging from 2.65 % to 3.70 % due 2030 to 2049, and (ii) $200 million aggregate purchase price of certain of Houston Electric’s general mortgage bonds, ranging from 4.25 % to 4.50 % due 2044 to 2049. In October 2025, CenterPoint Energy accepted for purchase and paid approximately $504 million in connection with the settlement of the tender offers. Upon completion of the tender offers, CenterPoint Energy cancelled approximately $329 million aggregate principal amount of its senior notes and Houston Electric cancelled approximately $234 million aggregate principal amount of its general mortgage bonds pursuant to the terms of the respective indentures governing such securities, which are reflected in Current portion of other long-term debt on the CenterPoint Energy and Houston Electric Consolidated Balance Sheets. CenterPoint Energy expects to recognize a gain on early extinguishment of debt
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of approximately $25 million, which will be recognized in Interest income and other finance charges on its Statement of Consolidated Income in the fourth quarter of 2025. Houston Electric expects to recognize a gain on early extinguishment of debt of approximately $24 million, which will be deferred and recognized as a reduction within Regulatory assets on its Consolidated Balance Sheet in the fourth quarter of 2025.
Junior Subordinated Notes (CenterPoint Energy)
In October 2025, CenterPoint Energy issued $700 million aggregate principal amount of 5.950 % Fixed-to-Fixed Reset Rate Junior Subordinated Notes, Series D, due 2056 (the “Series D Notes”). Interest on the Series D Notes accrues from October 2, 2025 and is payable semiannually in arrears on April 1 and October 1 of each year, beginning on April 1, 2026, and maturing on April 1, 2056. The Series D Notes bear interest (i) from and including October 2, 2025 to, but excluding, April 1, 2031 at the rate of 5.950 % per annum and (ii) from and including April 1, 2031, during each five-year period following April 1, 2031 (each such five-year period, a “Series D Interest Reset Period”), at a rate per annum equal to the Five-Year Treasury Rate (as defined in the Junior Subordinated Notes Indenture) as of two business days prior to the beginning of the applicable Series D Interest Reset Period plus a spread of 2.223 %, with such rate per annum to be reset on each five-year anniversary of April 1, 2031; provided that the interest rate during any Series D Interest Reset Period will not reset below 5.950 % per annum (which is the same interest rate as in effect from and including the original issue date to, but excluding, April 1, 2031). So long as no event of default (as defined in the prospectus supplement relating to the offering of the Series D Notes) with respect to the Series D Notes has occurred and is continuing, CenterPoint Energy may, at its option, defer interest payments on the Series D Notes, from time to time, for one or more deferral periods of up to 20 consecutive semiannual interest payment periods, except that no such optional deferral period (as defined in the prospectus supplement relating to the offering of the Series D Notes) may extend beyond the final maturity date of the Series D Notes or end on a day other than the day immediately preceding an interest payment date.
During any optional deferral period, CenterPoint Energy (and its majority-owned subsidiaries, as applicable) will not (subject to certain exceptions as described in the Junior Subordinated Notes Indenture): (i) declare or pay any dividends or distributions on any of CenterPoint Energy’s capital stock; (ii) redeem, purchase, acquire or make a liquidation payment with respect to any of CenterPoint Energy’s capital stock; (iii) pay any principal, interest (to the extent such interest is deferrable) or premium on, or repay, repurchase or redeem any of CenterPoint Energy’s indebtedness that ranks equally with or junior to the Series D Notes in right of payment (including debt securities of other series, such as the other series of the Junior Subordinated Notes outstanding); or (iv) make any payments with respect to any guarantees by CenterPoint Energy of any indebtedness if such guarantees rank equally with or junior to the Series D Notes in right of payment.
The Series D Notes are CenterPoint Energy’s unsecured obligations and rank junior and subordinate in right of payment to the prior payment in full of CenterPoint Energy’s existing and future Senior Indebtedness (as defined in the Junior Subordinated Notes Indenture). Total proceeds for the sale of the Series D Notes, net of issuance costs and transaction expenses and fees, were approximately $691 million, which were used for general corporate purposes, including the repayment of a portion of CenterPoint Energy’s outstanding commercial paper.
Proposed Divestiture of Ohio Natural Gas LDC Business (CenterPoint Energy and CERC)
On October 20, 2025, CERC Corp. entered into the Ohio Securities Purchase Agreement to sell all of the issued and outstanding equity interests in CEOH to NFGC. The purchase price is $2.62 billion, subject to adjustment as set forth in the Ohio Securities Purchase Agreement. The purchase price is comprised of the following: (i) $1.42 billion in cash payable to CERC Corp. upon closing of the proposed transaction, subject to adjustments as set forth in the Ohio Securities Purchase Agreement, including adjustments based on net working capital, regulatory assets and liabilities and capital expenditures at closing of the proposed transaction; and (ii) a 364-day seller promissory note, in the original principal amount of $1.2 billion, to be issued by NFGC at the closing of the proposed transaction and payable to CERC Corp. as provided by the terms and conditions of the Seller Note Agreement. The completion of the proposed transaction is subject to customary closing conditions, including (i) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; (ii) completion of a notice filing and review with the PUCO; and (iii) customary conditions regarding the accuracy of the representations and warranties and compliance by the parties with their respective obligations under the Ohio Securities Purchase Agreement. The proposed transaction is not subject to a financing condition, will not close prior to October 1, 2026 without the consent of CERC Corp., and is expected to close in the fourth quarter of 2026, subject to satisfaction of the foregoing conditions. The proposed transaction did not qualify as held for sale as of September 30, 2025.
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Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF CENTERPOINT ENERGY, INC. AND SUBSIDIARIES
The following combined discussion and analysis should be read in combination with the Interim Condensed Financial Statements contained in this combined Form 10-Q and the Registrants’ combined 2024 Form 10-K. When discussing CenterPoint Energy’s consolidated financial information, it includes the results of Houston Electric and CERC, which, along with CenterPoint Energy, are collectively referred to as the Registrants. Unless the context indicates otherwise, specific references to Houston Electric and CERC also pertain to CenterPoint Energy. In this combined Form 10-Q, the terms “our,” “we” and “us” are used as abbreviated references to CenterPoint Energy, Inc. together with its consolidated subsidiaries, including Houston Electric and CERC, unless otherwise stated. No Registrant makes any representations as to the information related solely to CenterPoint Energy or the subsidiaries of CenterPoint Energy other than itself.
RECENT EVENTS
Ohio Securities Purchase Agreement. 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 proposed transaction is expected to close in the fourth quarter of 2026. For further information, see Note 16 the Interim Condensed Financial Statements.
CenterPoint Energy Board Leadership Structure Changes. On October 8, 2025, the Board unanimously appointed Jason P. Wells, Chief Executive Officer and President of CenterPoint Energy, to serve as Chair of the Board, effective immediately. Mr. Wells has served as a director on the Board since January 5, 2024. In addition, the Board approved the creation of a Lead Director of the Board position and the independent directors of the Board unanimously appointed independent director Christopher H. Franklin to serve as the Lead Director of the Board, effective immediately.
10-Year Capital Plan. On September 29, 2025, CenterPoint Energy announced a new 10-year capital plan to invest $65 billion from 2026 through 2035, inclusive of a $2 billion increase in planned capital expenditures through 2030. The new plan is expected to advance economic growth, enhance the experience of the Registrants’ customers and deliver consistent value for stakeholders across the Registrants’ jurisdictions.
CenterPoint Energy Appointment of Chief Operating Officer. On July 21, 2025, CenterPoint Energy announced the appointment of Jesus Soto, Jr. to the position of Executive Vice President and Chief Operating Officer of CenterPoint Energy, effective August 11, 2025.
One Big Beautiful Bill Act (OBBBA) and Executive Order 14315. On July 4, 2025, the OBBBA was signed into law. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and numerous changes to the energy tax credits initially introduced and expanded under the IRA. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. Additionally, on July 7, 2025, President Trump issued Executive Order 14315, which relates to the implementation of such changes to energy tax credits. The Registrants are evaluating the OBBBA for the effect on their future financial results, and the Registrants will consider the impacts of the OBBBA and Executive Order 14315, as well as related guidance, on any future generation projects, including any BTAs or PPAs, as applicable. As a result of the Registrants having limited generation activities qualifying for tax credits under the IRA, the Registrants do not expect material impacts resulting from the changes to the IRA.
Temporary Generation. In June 2025, Houston Electric entered into definitive documentation, subject to PUCT approval, with relevant parties to release the 15 large 27 MW to 32 MW TEEEF units to the San Antonio area for a period of up to two years, during which time Houston Electric will not receive revenue or profit from ERCOT and will also not charge Houston-area customers for these TEEEF units while they are in San Antonio serving ERCOT. On July 9, 2025, the PUCT referred this docket to the SOAH. Following various preliminary orders, the SOAH set the prehearing conference for November 12, 2025 and set the hearing on the merits for November 13 through November 14, 2025. For additional information, see Note 6 to the Interim Condensed Financial Statements.
Regulatory Proceedings. For further information, see Note 6 to the Interim Condensed Financial Statements. For information related to our pending and completed regulatory proceedings to date in 2025, see “Liquidity and Capital Resources —Regulatory Matters” below.
Debt Transactions. In October 2025, CenterPoint Energy completed cash tender offers for up to (i) $300 million aggregate purchase price of certain of CenterPoint Energy’s outstanding senior notes, ranging from 2.65% to 3.70% due 2030 to 2049, and (ii) $200 million aggregate purchase price of certain of Houston Electric’s general mortgage bonds, ranging from 4.25% to
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4.50% due 2044 to 2049. Additionally, in October 2025, CenterPoint Energy issued $700 million aggregate principal amount of 5.950% Fixed-to-Fixed Reset Rate Junior Subordinated Notes, Series D, due 2056. For information about debt transactions to date in 2025, see Note 9 and Note 16 to the Interim Condensed Financial Statements.
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CENTERPOINT ENERGY CONSOLIDATED RESULTS OF OPERATIONS
For information regarding factors that may affect the future results of our consolidated operations, see “Risk Factors” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K.
Net income (loss) for the three and nine months ended September 30, 2025 and 2024 was as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Favorable (Unfavorable) | 2025 | 2024 | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||||||||
| Electric | $ | 293 | $ | 226 | $ | 67 | $ | 572 | $ | 562 | $ | 10 | ||||||||||||||||||||||||||
| Natural Gas | 71 | 30 | 41 | 385 | 360 | 25 | ||||||||||||||||||||||||||||||||
| Total Utility Operations | 364 | 256 | 108 | 957 | 922 | 35 | ||||||||||||||||||||||||||||||||
Corporate and Other (1) | (71) | (63) | (8) | (169) | (151) | (18) | ||||||||||||||||||||||||||||||||
Total CenterPoint Energy | $ | 293 | $ | 193 | $ | 100 | $ | 788 | $ | 771 | $ | 17 | ||||||||||||||||||||||||||
(1)Includes unallocated corporate costs, interest income and interest expense and intercompany eliminations.
Three months ended September 30, 2025 compared to three months ended September 30, 2024
Net income increased $100 million primarily due to the following items:
•an increase in net income of $67 million for the Electric reportable segment, as further discussed below;
•an increase in net income of $41 million for the Natural Gas reportable segment, as further discussed below; and
•an increase in net loss of $8 million for Corporate and Other, primarily due to increased borrowing costs.
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024
Net income increased $17 million primarily due to the following items:
•an increase in net income of $10 million for the Electric reportable segment, as further discussed below;
•an increase in net income of $25 million for the Natural Gas reportable segment, as further discussed below; and
•an increase in net loss of $18 million for Corporate and Other, primarily due to a $34 million after-tax expense associated with increased borrowing costs partially offset by a $21 million after-tax gain on early extinguishment of debt with proceeds from the divestiture of the Louisiana and Mississippi natural gas LDCs. The remaining variance is primarily driven by an increase in income tax expense. See Note 3 and Note 9 for additional detail.
Income Tax Expense. For a discussion of effective tax rate per period, see Note 10 to the Interim Condensed Financial Statements.
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CENTERPOINT ENERGY’S RESULTS OF OPERATIONS BY REPORTABLE SEGMENT
CenterPoint Energy’s CODM views net income as the measure of profit or loss for the reportable segments. Segment results include inter-segment interest income and expense, which may result in inter-segment profit and loss.
The following discussion of CenterPoint Energy’s results of operations is separated into two reportable segments, Electric and Natural Gas.
Electric (CenterPoint Energy)
For information regarding factors that may affect the future results of operations of CenterPoint Energy’s Electric reportable segment, see “Risk Factors — Risk Factors Affecting Operations — Electric Generation, Transmission and Distribution,” “— Risk Factors Affecting Regulatory, Environmental and Legal Risks,” “— Risk Factors Affecting Financial, Economic and Market Risks,” “— Risk Factors Affecting Safety and Security Risks” and “— General and Other Risks” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K.
The following table provides summary data of CenterPoint Energy’s Electric reportable segment:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Favorable (Unfavorable) | 2025 | 2024 | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||
| (in millions, except operating statistics) | |||||||||||||||||||||||||||||||||||
| Revenues | $ | 1,365 | $ | 1,243 | $ | 122 | $ | 3,622 | $ | 3,499 | $ | 123 | |||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
| Utility natural gas, fuel and purchased power | 72 | 58 | (14) | 211 | 151 | (60) | |||||||||||||||||||||||||||||
| Operation and maintenance | 520 | 560 | 40 | 1,527 | 1,532 | 5 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 247 | 201 | (46) | 687 | 664 | (23) | |||||||||||||||||||||||||||||
| Taxes other than income taxes | 82 | 73 | (9) | 240 | 228 | (12) | |||||||||||||||||||||||||||||
| Total expenses | 921 | 892 | (29) | 2,665 | 2,575 | (90) | |||||||||||||||||||||||||||||
| Operating Income | 444 | 351 | 93 | 957 | 924 | 33 | |||||||||||||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||||||||||||||
| Interest expense and other finance charges | (116) | (88) | (28) | (323) | (276) | (47) | |||||||||||||||||||||||||||||
| Other income, net | 21 | 16 | 5 | 60 | 45 | 15 | |||||||||||||||||||||||||||||
| Income Before Income Taxes | 349 | 279 | 70 | 694 | 693 | 1 | |||||||||||||||||||||||||||||
| Income tax expense | 56 | 53 | (3) | 122 | 131 | 9 | |||||||||||||||||||||||||||||
| Net Income | $ | 293 | $ | 226 | $ | 67 | $ | 572 | $ | 562 | $ | 10 | |||||||||||||||||||||||
| Throughput (in GWh): | |||||||||||||||||||||||||||||||||||
| Residential | 12,088 | 11,807 | 2 | % | 28,318 | 27,219 | 4 | % | |||||||||||||||||||||||||||
| Total | 35,455 | 32,633 | 9 | % | 90,519 | 84,730 | 7 | % | |||||||||||||||||||||||||||
Weather (percentage of normal weather for service area): | |||||||||||||||||||||||||||||||||||
| Cooling degree days | 103 | % | 105 | % | (2) | % | 108 | % | 110 | % | (2) | % | |||||||||||||||||||||||
| Heating degree days | 29 | % | 11 | % | 18 | % | 100 | % | 82 | % | 18 | % | |||||||||||||||||||||||
| Number of metered customers at end of period: | |||||||||||||||||||||||||||||||||||
| Residential | 2,673,077 | 2,628,569 | 2 | % | 2,673,077 | 2,628,569 | 2 | % | |||||||||||||||||||||||||||
| Total | 3,006,945 | 2,959,281 | 2 | % | 3,006,945 | 2,959,281 | 2 | % | |||||||||||||||||||||||||||
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The following table provides variance explanations for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as well as for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 by major income statement caption for CenterPoint Energy’s Electric reportable segment:
| Favorable (Unfavorable) | ||||||||||||||
Three Months Ended September 30, 2025 vs 2024 | Nine Months Ended September 30, 2025 vs 2024 | |||||||||||||
| (in millions) | ||||||||||||||
| Revenues | ||||||||||||||
| Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below | $ | 39 | $ | 50 | ||||||||||
Customer rates and the impact of the change in rate design | 48 | 58 | ||||||||||||
| Customer growth | 8 | 21 | ||||||||||||
| Cost of fuel and purchased power, offset in utility natural gas, fuel and purchased power below | 2 | 46 | ||||||||||||
Energy efficiency, and other pass-through, offset in both operation and maintenance and utility natural gas, fuel and purchased power below as well as in customer rates above | 6 | 9 | ||||||||||||
| Miscellaneous revenues, including service connections and off-system sales | 1 | (15) | ||||||||||||
Lost revenues as a result of outages associated with Hurricane Beryl in 2024 | 10 | 10 | ||||||||||||
Equity return, related to true-up of transition charges for Transition Bond Company IV in 2024 | — | (18) | ||||||||||||
| Weather, efficiency improvements and other usage impacts | 7 | 37 | ||||||||||||
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items below | 1 | (75) | ||||||||||||
| Total | $ | 122 | $ | 123 | ||||||||||
| Utility natural gas, fuel and purchased power | ||||||||||||||
| Cost of purchased power, offset in revenues above | $ | (3) | $ | (37) | ||||||||||
| Cost of fuel, including coal, natural gas, and fuel oil, offset in revenues above | (11) | (23) | ||||||||||||
| Total | $ | (14) | $ | (60) | ||||||||||
| Operation and maintenance | ||||||||||||||
| Transmission costs billed by transmission providers, offset in revenues above | $ | (21) | $ | (24) | ||||||||||
Incremental storm expenses, including storm hardening expenses incurred in connection with accelerated operational activities after Hurricane Beryl in 2024 | 70 | 70 | ||||||||||||
| Contract services | 21 | (1) | ||||||||||||
Corporate support services | (7) | (18) | ||||||||||||
| Labor and benefits | 1 | — | ||||||||||||
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items | 1 | 4 | ||||||||||||
Energy efficiency offset in revenues above | (2) | (6) | ||||||||||||
| All other operation and maintenance expense, including materials and supplies and insurance | (23) | (20) | ||||||||||||
| Total | $ | 40 | $ | 5 | ||||||||||
| Depreciation and amortization | ||||||||||||||
| Ongoing additions to plant-in-service | $ | (23) | $ | (58) | ||||||||||
Lease expense associated with temporary generation units no longer eligible for regulatory deferral | (22) | (37) | ||||||||||||
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items | (1) | 72 | ||||||||||||
| Total | $ | (46) | $ | (23) | ||||||||||
| Taxes other than income taxes | ||||||||||||||
| Incremental capital projects placed in service, and the impact of updated property tax rates | $ | (9) | $ | (12) | ||||||||||
| Total | $ | (9) | $ | (12) | ||||||||||
| Interest expense and other finance charges | ||||||||||||||
| Changes in outstanding debt | $ | (28) | $ | (72) | ||||||||||
| Other, primarily AFUDC and impacts of regulatory deferrals | — | 23 | ||||||||||||
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items above | — | 2 | ||||||||||||
| Total | $ | (28) | $ | (47) | ||||||||||
| Other income, net | ||||||||||||||
Other income, including AFUDC - Equity | $ | 6 | $ | 18 | ||||||||||
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items above | (1) | (3) | ||||||||||||
| Total | $ | 5 | $ | 15 | ||||||||||
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Income Tax Expense. For a discussion of effective tax rate per period by Registrant, see Note 10 to the Interim Condensed Financial Statements.
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Natural Gas (CenterPoint Energy)
For information regarding factors that may affect the future results of operations of CenterPoint Energy’s Natural Gas reportable segment, see “Risk Factors — Risk Factors Affecting Operations — Natural Gas,” “— Risk Factors Affecting Regulatory, Environmental and Legal Risks,” “— Risk Factors Affecting Financial, Economic and Market Risks,” “— Risk Factors Affecting Safety and Security Risks” and “— General and Other Risks” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K.
The following table provides summary data of CenterPoint Energy’s Natural Gas reportable segment:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Favorable (Unfavorable) | 2025 | 2024 | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||
| (in millions, except operating statistics) | |||||||||||||||||||||||||||||||||||
| Revenues | $ | 622 | $ | 611 | $ | 11 | $ | 3,226 | $ | 2,876 | $ | 350 | |||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
Utility natural gas and fuel | 147 | 139 | (8) | 1,316 | 1,066 | (250) | |||||||||||||||||||||||||||||
Non-utility cost of revenues, including natural gas | 1 | 2 | 1 | 4 | 3 | (1) | |||||||||||||||||||||||||||||
| Operation and maintenance | 219 | 214 | (5) | 679 | 637 | (42) | |||||||||||||||||||||||||||||
| Depreciation and amortization | 139 | 129 | (10) | 423 | 403 | (20) | |||||||||||||||||||||||||||||
| Taxes other than income taxes | 53 | 51 | (2) | 183 | 177 | (6) | |||||||||||||||||||||||||||||
| Total expenses | 559 | 535 | (24) | 2,605 | 2,286 | (319) | |||||||||||||||||||||||||||||
| Operating Income | 63 | 76 | (13) | 621 | 590 | 31 | |||||||||||||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||||||||||||||
| Loss on sale | — | — | — | (43) | — | (43) | |||||||||||||||||||||||||||||
| Interest expense and other finance charges | (52) | (40) | (12) | (154) | (152) | (2) | |||||||||||||||||||||||||||||
Other income, net | 6 | 3 | 3 | 23 | 10 | 13 | |||||||||||||||||||||||||||||
| Income Before Income Taxes | 17 | 39 | (22) | 447 | 448 | (1) | |||||||||||||||||||||||||||||
Income tax expense (benefit) | (54) | 9 | 63 | 62 | 88 | 26 | |||||||||||||||||||||||||||||
Net Income | $ | 71 | $ | 30 | $ | 41 | $ | 385 | $ | 360 | $ | 25 | |||||||||||||||||||||||
| Throughput (in Bcf): | |||||||||||||||||||||||||||||||||||
| Residential | 14 | 16 | (13) | % | 157 | 141 | 11 | % | |||||||||||||||||||||||||||
| Commercial and Industrial | 79 | 91 | (13) | % | 313 | 321 | (2) | % | |||||||||||||||||||||||||||
| Total | 93 | 107 | (13) | % | 470 | 462 | 2 | % | |||||||||||||||||||||||||||
| Weather (percentage of 10-year average for service area): | |||||||||||||||||||||||||||||||||||
| Heating degree days | 51 | % | 23 | % | 28 | % | 97 | % | 79 | % | 18 | % | |||||||||||||||||||||||
| Number of metered customers at end of period: | |||||||||||||||||||||||||||||||||||
| Residential | 3,712,312 | 4,031,298 | (8) | % | 3,712,312 | 4,031,298 | (8) | % | |||||||||||||||||||||||||||
| Commercial and Industrial | 283,943 | 300,709 | (6) | % | 283,943 | 300,709 | (6) | % | |||||||||||||||||||||||||||
Total (1) | 3,996,255 | 4,332,007 | (8) | % | 3,996,255 | 4,332,007 | (8) | % | |||||||||||||||||||||||||||
(1)Decrease in number of metered customers is primarily attributable to customer accounts associated with the divestiture of the Louisiana and Mississippi natural gas LDCs. See Note 3 for additional detail.
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The following table provides variance explanations for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as well as for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 by major income statement caption for CenterPoint Energy’s Natural Gas reportable segment:
| Favorable (Unfavorable) | ||||||||||||||
Three Months Ended September 30, 2025 vs 2024 | Nine Months Ended September 30, 2025 vs 2024 | |||||||||||||
| (in millions) | ||||||||||||||
| Revenues | ||||||||||||||
Cost of natural gas, offset in utility natural gas and fuel below | $ | 19 | $ | 280 | ||||||||||
Energy efficiency and other pass-through, offset in operation and maintenance below | 2 | 19 | ||||||||||||
| Gross receipts tax, offset in taxes other than income taxes below | 2 | 5 | ||||||||||||
| Non-volumetric and miscellaneous revenue | 1 | 2 | ||||||||||||
| Weather and usage | (6) | 11 | ||||||||||||
| Customer growth | 2 | 9 | ||||||||||||
Non-utility revenues | 4 | 9 | ||||||||||||
Customer rates and impact of the change in rate design | 34 | 108 | ||||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | (47) | (93) | ||||||||||||
| Total | $ | 11 | $ | 350 | ||||||||||
Utility natural gas and fuel | ||||||||||||||
| Cost of natural gas, offset in revenues above | $ | (19) | $ | (280) | ||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 11 | 30 | ||||||||||||
| Total | $ | (8) | $ | (250) | ||||||||||
| Operation and maintenance | ||||||||||||||
All other operations and maintenance expense, including bad debt expense | $ | (2) | $ | (11) | ||||||||||
| Contract services | (1) | (6) | ||||||||||||
| Labor and benefits | (7) | (25) | ||||||||||||
| Corporate support services | (10) | (14) | ||||||||||||
| Energy efficiency and other pass-through, offset in revenues above | (2) | (19) | ||||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 17 | 33 | ||||||||||||
| Total | $ | (5) | $ | (42) | ||||||||||
| Depreciation and amortization | ||||||||||||||
| Ongoing additions to plant-in-service | $ | (23) | $ | (45) | ||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 13 | 25 | ||||||||||||
| Total | $ | (10) | $ | (20) | ||||||||||
| Taxes other than income taxes | ||||||||||||||
| Gross receipts tax, offset in revenues above | $ | (2) | $ | (5) | ||||||||||
| Incremental capital projects placed in service, and the impact of updated property tax rates | (5) | (10) | ||||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 5 | 9 | ||||||||||||
| Total | $ | (2) | $ | (6) | ||||||||||
Loss on sale | ||||||||||||||
Loss on sale of Louisiana and Mississippi natural gas LDC businesses | $ | — | $ | (43) | ||||||||||
| Total | $ | — | $ | (43) | ||||||||||
| Interest expense and other finance charges | ||||||||||||||
| Other, primarily AFUDC and impacts of regulatory deferrals | $ | (13) | $ | (6) | ||||||||||
| Changes in outstanding debt | (4) | (22) | ||||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 5 | 26 | ||||||||||||
| Total | $ | (12) | $ | (2) | ||||||||||
Other income, net | ||||||||||||||
Other income, including AFUDC - Equity | $ | 3 | $ | 35 | ||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | — | (22) | ||||||||||||
| Total | $ | 3 | $ | 13 | ||||||||||
Income Tax Expense. For a discussion of effective tax rate per period by Registrant, see Note 10 to the Interim Condensed Financial Statements.
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HOUSTON ELECTRIC CONSOLIDATED RESULTS OF OPERATIONS
Houston Electric’s CODM views net income as the measure of profit or loss for its single reportable segment. Houston Electric’s results of operations are affected by seasonal fluctuations in the demand for electricity. Houston Electric’s results of operations are also affected by, among other things, the actions of various governmental authorities having jurisdiction over rates Houston Electric charges, debt service costs, income tax expense, Houston Electric’s ability to collect receivables from REPs and Houston Electric’s ability to recover its regulatory assets. For more information regarding factors that may affect the future results of operations of Houston Electric’s business, see “Risk Factors — Risk Factors Affecting Operations — Electric Generation, Transmission and Distribution,” “— Risk Factors Affecting Regulatory, Environmental and Legal Risks,” “— Risk Factors Affecting Financial, Economic and Market Risks,” “— Risk Factors Affecting Safety and Security Risks” and “— General and Other Risks” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K and in Part II, Item 1A of this combined Form 10-Q.
The following table provides summary data of Houston Electric’s single reportable segment:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Favorable (Unfavorable) | 2025 | 2024 | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||
| (in millions, except operating statistics) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| TDU | $ | 1,130 | $ | 1,057 | $ | 73 | $ | 3,022 | $ | 2,926 | $ | 96 | |||||||||||||||||||||||
Bond Companies | 2 | 1 | 1 | 2 | 77 | (75) | |||||||||||||||||||||||||||||
| Total revenues | 1,132 | 1,058 | 74 | 3,024 | 3,003 | 21 | |||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
Operation and maintenance, excluding Bond Companies | 475 | 533 | 58 | 1,405 | 1,423 | 18 | |||||||||||||||||||||||||||||
Depreciation and amortization, excluding Bond Companies | 208 | 170 | (38) | 583 | 506 | (77) | |||||||||||||||||||||||||||||
| Taxes other than income taxes | 79 | 71 | (8) | 232 | 221 | (11) | |||||||||||||||||||||||||||||
Bond Companies | 2 | 1 | (1) | 2 | 77 | 75 | |||||||||||||||||||||||||||||
| Total expenses | 764 | 775 | 11 | 2,222 | 2,227 | 5 | |||||||||||||||||||||||||||||
| Operating Income | 368 | 283 | 85 | 802 | 776 | 26 | |||||||||||||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||||||||||||||
| Interest expense and other finance charges | (96) | (74) | (22) | (272) | (229) | (43) | |||||||||||||||||||||||||||||
| Interest expense on Securitization Bonds | (1) | (1) | — | (1) | (3) | 2 | |||||||||||||||||||||||||||||
| Other income, net | 11 | 12 | (1) | 34 | 33 | 1 | |||||||||||||||||||||||||||||
| Income Before Income Taxes | 282 | 220 | 62 | 563 | 577 | (14) | |||||||||||||||||||||||||||||
| Income tax expense | 51 | 41 | (10) | 107 | 112 | 5 | |||||||||||||||||||||||||||||
| Net Income | $ | 231 | $ | 179 | $ | 52 | $ | 456 | $ | 465 | $ | (9) | |||||||||||||||||||||||
| Throughput (in GWh): | |||||||||||||||||||||||||||||||||||
| Residential | 11,629 | 11,364 | 2 | % | 27,174 | 26,108 | 4 | % | |||||||||||||||||||||||||||
| Total | 33,995 | 31,228 | 9 | % | 86,908 | 81,059 | 7 | % | |||||||||||||||||||||||||||
| Weather (percentage of 10-year average for service area): | |||||||||||||||||||||||||||||||||||
| Cooling degree days | 100 | % | 104 | % | (4) | % | 109 | % | 109 | % | — | % | |||||||||||||||||||||||
| Heating degree days | — | % | — | % | — | % | 92 | % | 92 | % | — | % | |||||||||||||||||||||||
| Number of metered customers at end of period: | |||||||||||||||||||||||||||||||||||
| Residential | 2,538,496 | 2,495,669 | 2 | % | 2,538,496 | 2,495,669 | 2 | % | |||||||||||||||||||||||||||
| Total | 2,852,691 | 2,806,984 | 2 | % | 2,852,691 | 2,806,984 | 2 | % | |||||||||||||||||||||||||||
59
The following table provides variance explanations for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as well as for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 by major income statement caption for Houston Electric:
| Favorable (Unfavorable) | ||||||||||||||
| Three Months Ended September 30, 2025 vs 2024 | Nine Months Ended September 30, 2025 vs 2024 | |||||||||||||
| (in millions) | ||||||||||||||
| Revenues | ||||||||||||||
Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below | $ | 39 | $ | 50 | ||||||||||
Customer rates and the impact of the change in rate design | 18 | 10 | ||||||||||||
| Customer growth | 7 | 18 | ||||||||||||
Energy efficiency, partially offset in both operation and maintenance and utility natural gas, fuel and purchased power below | 2 | 6 | ||||||||||||
Miscellaneous revenues | 2 | 3 | ||||||||||||
Lost revenues as a result of outages associated with Hurricane Beryl in 2024 | 10 | 10 | ||||||||||||
| Equity return, related to true-up of transition charges for Transition Bond Company IV in 2024 | — | (18) | ||||||||||||
Weather, efficiency improvements and other usage impacts | (5) | 17 | ||||||||||||
Bond Companies, offset in other line items below | 1 | (75) | ||||||||||||
| Total | $ | 74 | $ | 21 | ||||||||||
Operation and maintenance, excluding Bond Companies | ||||||||||||||
| Transmission costs billed by transmission providers, offset in revenues above | $ | (20) | $ | (23) | ||||||||||
Incremental storm hardening expenses incurred in connection with accelerated operational activities after Hurricane Beryl | 70 | 70 | ||||||||||||
| Contract services | 22 | — | ||||||||||||
| All other operation and maintenance expense, including materials and supplies and insurance | (9) | (8) | ||||||||||||
Corporate support services | (5) | (16) | ||||||||||||
| Energy efficiency, offset in revenues above | (2) | (6) | ||||||||||||
| Labor and benefits | 2 | 1 | ||||||||||||
| Total | $ | 58 | $ | 18 | ||||||||||
| Depreciation and amortization, excluding Bond Companies | ||||||||||||||
| Ongoing additions to plant-in-service | $ | (16) | $ | (40) | ||||||||||
Lease expense associated with temporary generation units no longer eligible for regulatory deferral | (22) | (37) | ||||||||||||
| Total | $ | (38) | $ | (77) | ||||||||||
| Taxes other than income taxes | ||||||||||||||
| Incremental capital projects placed in service, and the impact of changes to tax rates | $ | (8) | $ | (11) | ||||||||||
| Total | $ | (8) | $ | (11) | ||||||||||
Bond Companies | ||||||||||||||
| Operations and maintenance and depreciation expense, offset in revenues above | $ | (1) | $ | 75 | ||||||||||
| Total | $ | (1) | $ | 75 | ||||||||||
| Interest expense and other finance charges | ||||||||||||||
| Changes in outstanding debt | $ | (23) | $ | (62) | ||||||||||
Other, primarily AFUDC and impacts of regulatory deferrals | 1 | 19 | ||||||||||||
| Total | $ | (22) | $ | (43) | ||||||||||
| Interest expense on Securitization Bonds | ||||||||||||||
| Lower outstanding principal balance, offset in revenues above | $ | — | $ | 2 | ||||||||||
| Total | $ | — | $ | 2 | ||||||||||
| Other income, net | ||||||||||||||
| Other income, including AFUDC - Equity | $ | (1) | $ | 3 | ||||||||||
| Bond Companies interest income, offset in other line items | — | (2) | ||||||||||||
| Total | $ | (1) | $ | 1 | ||||||||||
Income Tax Expense. For a discussion of effective tax rate per period, see Note 10 to the Interim Condensed Financial Statements.
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CERC CONSOLIDATED RESULTS OF OPERATIONS
CERC’s CODM views net income as the measure of profit or loss for its single reportable segment. CERC’s results of operations are affected by seasonal fluctuations in the demand for natural gas. CERC’s results of operations are also affected by, among other things, the actions of various federal, state and local governmental authorities having jurisdiction over rates CERC charges, debt service costs and income tax expense, CERC’s ability to collect receivables from customers and CERC’s ability to recover its regulatory assets. For more information regarding factors that may affect the future results of operations for CERC’s business, see “Risk Factors — Risk Factors Affecting Operations — Natural Gas,” “— Risk Factors Affecting Regulatory, Environmental and Legal Risks,” “— Risk Factors Affecting Financial, Economic and Market Risks,” “— Risk Factors Affecting Safety and Security Risks” and “— General and Other Risks” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K.
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | Favorable (Unfavorable) | 2025 | 2024 | Favorable (Unfavorable) | ||||||||||||||||||||||||||||||
| (in millions, except operating statistics) | |||||||||||||||||||||||||||||||||||
| Revenues | $ | 607 | $ | 600 | $ | 7 | $ | 3,126 | $ | 2,791 | $ | 335 | |||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
| Utility natural gas | 146 | 140 | (6) | 1,286 | 1,046 | (240) | |||||||||||||||||||||||||||||
| Non-utility cost of revenues, including natural gas | 1 | 1 | — | 4 | 2 | (2) | |||||||||||||||||||||||||||||
| Operation and maintenance | 211 | 207 | (4) | 654 | 614 | (40) | |||||||||||||||||||||||||||||
| Depreciation and amortization | 133 | 124 | (9) | 406 | 389 | (17) | |||||||||||||||||||||||||||||
| Taxes other than income taxes | 50 | 51 | 1 | 179 | 176 | (3) | |||||||||||||||||||||||||||||
| Total expenses | 541 | 523 | (18) | 2,529 | 2,227 | (302) | |||||||||||||||||||||||||||||
| Operating Income | 66 | 77 | (11) | 597 | 564 | 33 | |||||||||||||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||||||||||||||
| Gain on sale | — | — | — | 52 | — | 52 | |||||||||||||||||||||||||||||
| Interest expense and other finance charges | (49) | (38) | (11) | (144) | (145) | 1 | |||||||||||||||||||||||||||||
| Other income, net | 6 | 4 | 2 | 20 | 10 | 10 | |||||||||||||||||||||||||||||
| Income Before Income Taxes | 23 | 43 | (20) | 525 | 429 | 96 | |||||||||||||||||||||||||||||
Income tax expense (benefit) | (51) | 9 | 60 | 60 | 84 | 24 | |||||||||||||||||||||||||||||
| Net Income | $ | 74 | $ | 34 | $ | 40 | $ | 465 | $ | 345 | $ | 120 | |||||||||||||||||||||||
| Throughput (in Bcf): | |||||||||||||||||||||||||||||||||||
| Residential | 13 | 15 | (13) | % | 152 | 137 | 11 | % | |||||||||||||||||||||||||||
| Commercial and Industrial | 69 | 81 | (15) | % | 280 | 294 | (5) | % | |||||||||||||||||||||||||||
| Total | 82 | 96 | (15) | % | 432 | 431 | — | % | |||||||||||||||||||||||||||
| Weather (percentage of 10-year average for service area): | |||||||||||||||||||||||||||||||||||
| Heating degree days | 53 | % | 24 | % | 29 | % | 97 | % | 79 | % | 18 | % | |||||||||||||||||||||||
| Number of metered customers at end of period: | |||||||||||||||||||||||||||||||||||
| Residential | 3,607,811 | 3,926,819 | (8) | % | 3,607,811 | 3,926,819 | (8) | % | |||||||||||||||||||||||||||
| Commercial and Industrial | 273,354 | 290,128 | (6) | % | 273,354 | 290,128 | (6) | % | |||||||||||||||||||||||||||
Total (1) | 3,881,165 | 4,216,947 | (8) | % | 3,881,165 | 4,216,947 | (8) | % | |||||||||||||||||||||||||||
(1)Decrease in number of metered customers is primarily attributable to customer accounts associated with the divestiture of the Louisiana and Mississippi natural gas LDCs. See Note 3 for additional detail.
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The following table provides variance explanations for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 as well as for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 by major income statement caption for CERC:
| Favorable (Unfavorable) | ||||||||||||||
| Three Months Ended September 30, 2025 vs 2024 | Nine Months Ended September 30, 2025 vs 2024 | |||||||||||||
| (in millions) | ||||||||||||||
| Revenues | ||||||||||||||
Cost of natural gas, offset in utility natural gas below | $ | 17 | $ | 270 | ||||||||||
| Energy efficiency and other pass-through, offset in operation and maintenance below | 2 | 19 | ||||||||||||
| Gross receipts tax, offset in taxes other than income taxes below | 2 | 5 | ||||||||||||
| Non-volumetric and miscellaneous revenue | — | 2 | ||||||||||||
| Weather and usage | (7) | 10 | ||||||||||||
| Customer growth | 2 | 9 | ||||||||||||
Non-utility revenues | 4 | 9 | ||||||||||||
Customer rates | 34 | 104 | ||||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | (47) | (93) | ||||||||||||
| Total | $ | 7 | $ | 335 | ||||||||||
Utility natural gas | ||||||||||||||
| Cost of natural gas, offset in revenues above | $ | (17) | $ | (270) | ||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 11 | 30 | ||||||||||||
| Total | $ | (6) | $ | (240) | ||||||||||
| Operation and maintenance | ||||||||||||||
All other operations and maintenance expense, including bad debt expense | $ | (1) | $ | (7) | ||||||||||
| Contract services | (2) | (8) | ||||||||||||
| Labor and benefits | (6) | (24) | ||||||||||||
| Corporate support services | (10) | (14) | ||||||||||||
| Energy efficiency and other pass-through, offset in revenues above | (2) | (19) | ||||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 17 | 32 | ||||||||||||
| Total | $ | (4) | $ | (40) | ||||||||||
| Depreciation and amortization | ||||||||||||||
| Ongoing additions to plant-in-service | $ | (22) | $ | (42) | ||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 13 | 25 | ||||||||||||
| Total | $ | (9) | $ | (17) | ||||||||||
| Taxes other than income taxes | ||||||||||||||
| Gross receipts tax, offset in revenues above | $ | (2) | $ | (5) | ||||||||||
| Incremental capital projects placed in service, and the impact of updated property tax rates | (2) | (7) | ||||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 5 | 9 | ||||||||||||
| Total | $ | 1 | $ | (3) | ||||||||||
| Gain on sale | ||||||||||||||
Gain on sale of Louisiana and Mississippi natural gas LDC businesses | $ | — | $ | 52 | ||||||||||
| Total | $ | — | $ | 52 | ||||||||||
| Interest expense and other finance charges | ||||||||||||||
| Other, primarily AFUDC and impacts of regulatory deferrals | $ | (13) | $ | (6) | ||||||||||
| Changes in outstanding debt | (3) | (19) | ||||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 5 | 26 | ||||||||||||
| Total | $ | (11) | $ | 1 | ||||||||||
Other income, net | ||||||||||||||
Other income, including AFUDC - Equity | $ | 2 | $ | 33 | ||||||||||
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | — | (23) | ||||||||||||
| Total | $ | 2 | $ | 10 | ||||||||||
Income Tax Expense. For a discussion of effective tax rate per period, see Note 10 to the Interim Condensed Financial Statements.
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CERTAIN FACTORS AFFECTING FUTURE EARNINGS
For information on other developments, factors and trends that may impact the Registrants’ future earnings, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Certain Factors Affecting Future Earnings” in Item 7 of Part II and “Risk Factors” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K, and “Cautionary Statement Regarding Forward-Looking Information” in this combined Form 10-Q.
LIQUIDITY AND CAPITAL RESOURCES
Cash Flows
The following table summarizes the Registrants’ cash flows by category during the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Cash provided by (used in): | |||||||||||||||||||||||||||||||||||
| Operating activities | $ | 1,712 | $ | 652 | $ | 1,128 | $ | 1,250 | $ | 306 | $ | 858 | |||||||||||||||||||||||
| Investing activities | (2,602) | (2,038) | 36 | (2,559) | (1,044) | (982) | |||||||||||||||||||||||||||||
| Financing activities | 905 | 1,391 | (1,166) | 1,329 | 759 | 124 | |||||||||||||||||||||||||||||
Operating Activities. The following items contributed to increased (decreased) net cash provided by operating activities for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024:
| CenterPoint Energy | Houston Electric | CERC | |||||||||||||||
| (in millions) | |||||||||||||||||
| Changes in net income after adjusting for non-cash items | $ | (50) | $ | 27 | $ | (14) | |||||||||||
| Changes in working capital | (197) | (141) | (37) | ||||||||||||||
Changes in current regulatory assets and liabilities | 170 | 9 | 165 | ||||||||||||||
Changes in non-current regulatory assets and liabilities | 574 | 434 | (13) | ||||||||||||||
Changes in non-current assets and liabilities | 88 | 16 | 170 | ||||||||||||||
| Higher pension contribution | (106) | — | — | ||||||||||||||
| Other | (17) | 1 | (1) | ||||||||||||||
| $ | 462 | $ | 346 | $ | 270 | ||||||||||||
Investing Activities. The following items contributed to (increased) decreased net cash used in investing activities for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024:
| CenterPoint Energy | Houston Electric | CERC | |||||||||||||||
| (in millions) | |||||||||||||||||
Payment for asset acquisition | $ | (357) | $ | — | $ | — | |||||||||||
Net change in capital expenditures | (888) | (787) | (59) | ||||||||||||||
| Net change in notes receivable from affiliated companies | — | (379) | (1) | ||||||||||||||
Proceeds from divestiture | 1,219 | — | 1,219 | ||||||||||||||
| Other | (17) | 172 | (141) | ||||||||||||||
| $ | (43) | $ | (994) | $ | 1,018 | ||||||||||||
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Financing Activities. The following items contributed to (increased) decreased net cash provided by (used in) financing activities for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024:
| CenterPoint Energy | Houston Electric | CERC | |||||||||||||||
| (in millions) | |||||||||||||||||
| Net changes in commercial paper outstanding | $ | 115 | $ | — | $ | 239 | |||||||||||
Net changes in proceeds from issuances of Common Stock | (494) | — | — | ||||||||||||||
| Net changes in long-term debt and term loans outstanding, excluding commercial paper | (15) | 877 | (820) | ||||||||||||||
| Net changes in debt issuance costs | 8 | (12) | 4 | ||||||||||||||
| Net changes in short-term borrowings | (1) | — | (1) | ||||||||||||||
Increased payment of Common Stock dividends | (47) | — | — | ||||||||||||||
| Net change in notes payable from affiliated companies | — | (71) | — | ||||||||||||||
Change in contribution from parent | — | (230) | (290) | ||||||||||||||
Change in dividend to parent | — | 67 | (423) | ||||||||||||||
| Other | 10 | 1 | 1 | ||||||||||||||
| $ | (424) | $ | 632 | $ | (1,290) | ||||||||||||
Future Sources and Uses of Cash
The liquidity and capital requirements of the Registrants are affected primarily by results of operations, capital expenditures, storm restoration costs, debt service requirements, tax payments, working capital needs and various regulatory actions. Future capital expenditures (other than expenditures associated with the May 2024 Storm Events) are expected to primarily relate to investment in infrastructure. These capital expenditures are anticipated to enhance reliability and safety, increase resiliency and expand our systems through value-added projects. In addition to dividend payments on CenterPoint Energy’s Common Stock and interest payments on debt, the Registrants’ principal anticipated cash requirements for the remainder of 2025 include the following:
| CenterPoint Energy | Houston Electric | CERC | |||||||||||||||
(in millions) | |||||||||||||||||
Estimated capital expenditures (1) | $ | 1,539 | $ | 988 | $ | 515 | |||||||||||
Estimated restoration costs associated with May 2024 Storm Events (2) | 7 | — | — | ||||||||||||||
Scheduled principal payments on Securitization Bonds | 7 | — | — | ||||||||||||||
Scheduled principal payments on debt instruments | 1,000 | 700 | — | ||||||||||||||
| Expected contributions to pension plans and other post-retirement plans | 14 | — | — | ||||||||||||||
(1)Excludes expenditures for the restoration costs associated with the May 2024 Storm Events.
(2)Represents cash requirements associated with the estimated storm restoration costs for the remainder of 2025.
The Registrants expect that anticipated cash needs for the remainder of 2025 will be met with available cash flow from operations, as well as cash flows from financing (such as issuances of equity securities upon physical settlement of outstanding forward sale agreements and borrowings under credit facilities, commercial paper issuances or other sources). At this time, CenterPoint Energy does not anticipate the need for further sales of shares of Common Stock under the Equity Distribution Agreement. The issuance of securities in the capital markets and borrowings under additional credit facilities and term loans may not, however, be available on acceptable terms. The Registrants may also, from time to time, redeem, repurchase or otherwise acquire their outstanding debt securities through open market purchases, tender offers or pursuant to the terms of such securities.
For more information regarding the May 2024 Storm Events and Hurricane Beryl, see Note 6 and Note 9 to the Interim Condensed Financial Statements.
Off-Balance Sheet Arrangements
Other than Houston Electric’s general mortgage bonds issued as collateral for tax-exempt long-term debt of CenterPoint Energy as discussed in Note 9 and guarantees as discussed in Note 11(c) to the Interim Condensed Financial Statements, the Registrants have no off-balance sheet arrangements.
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Regulatory Matters
Houston Electric TEEEF
For information about Houston Electric’s TEEEF, see Note 6 to the Interim Condensed Financial Statements.
Hurricane Beryl
For additional information about Hurricane Beryl, see Note 6 to the Interim Condensed Financial Statements.
May 2024 Storm Events
For additional information about the May 2024 Storm Events, see Note 6 to the Interim Condensed Financial Statements.
Indiana Electric CPCN (CenterPoint Energy)
BTAs
Indiana Electric has pursued PTCs for solar projects following the passage of the IRA. On February 7, 2023, Indiana Electric filed a CPCN with the IURC to approve an amended BTA to purchase the 191 MW Posey Solar project. Indiana Electric requested that project costs, net of PTCs, be recovered in rate base rather than a levelized rate, through base rates or the CECA mechanism, depending on which provides more timely recovery. On September 6, 2023, the IURC issued an order approving the CPCN. On March 7, 2025, SIGECO completed the acquisition of Posey Solar from Arevon for a purchase price of approximately $357 million. Subsequent to the acquisition, and pursuant to the Posey Solar Merger Agreement, Posey Solar was merged into SIGECO. The Posey Solar project was placed in service in the second quarter of 2025 and is currently being recovered through base rates. In the applicable rate case, the IURC approved Indiana Electric’s request to convey PTCs to customers through the new tax adjustment rider. For further information, see Note 3 to the Interim Condensed Financial Statements.
On January 10, 2023, Indiana Electric filed a CPCN with the IURC to acquire a wind energy generating facility located in the central region of MISO through a BTA, and on June 6, 2023, the IURC issued an order approving the CPCN, thereby authorizing Indiana Electric to purchase the wind generating facility. In August 2025, due to changing project considerations and concerns about customer affordability, Indiana Electric exited negotiations relating to this wind energy generating facility.
PPAs
Indiana Electric sought approval in February 2021 for a 100 MW solar PPA with Clenera LLC in Warrick County, Indiana. The request accounted for increased cost of debt related to this PPA, which provides equivalent equity return to offset imputed debt during the 25-year life of the PPA. In October 2021, the IURC approved the Warrick County solar PPA but denied the request to preemptively offset imputed debt in the PPA cost. Due to rising project costs caused by inflation and supply chain issues affecting the energy industry, Clenera LLC and Indiana Electric were compelled to renegotiate terms of the agreement to increase the PPA price. On January 17, 2023, Indiana Electric filed a request with the IURC to amend the previously approved PPA with certain modifications. Revised purchase power costs are requested to be recovered through the fuel adjustment clause proceedings over the term of the amended PPA. On May 30, 2023, the IURC approved the Warrick County solar amended PPA; however, due to MISO interconnection study delays and estimated interconnection cost increases, on April 24, 2025, Indiana Electric provided notice that it was exercising its right to terminate the PPA, which terminated all further obligations of Indiana Electric with respect to the project.
On August 25, 2021, Indiana Electric filed with the IURC seeking approval to purchase 185 MW of solar power, under a 15-year PPA, from Oriden, which is developing a solar project in Vermillion County, Indiana, and 150 MW of solar power, under a 20-year PPA, from Origis, which is developing a solar project in Knox County, Indiana. On May 4, 2022, the IURC issued an order approving Indiana Electric to enter into both PPAs. In March 2022, when the results of the MISO interconnection study were completed, Origis advised Indiana Electric that the costs to construct the solar project in Knox County, Indiana had increased. The increase was largely driven by escalating commodity and supply chain costs impacting manufacturers worldwide. In August 2022, Indiana Electric and Origis entered into an amended PPA, which reiterated the terms contained in the 2021 PPA with certain modifications. On February 22, 2023, the IURC approved the Knox County solar amended PPA; however, due to MISO interconnection delays, the project in-service date has been delayed from 2024 to 2026. On January 17, 2023, Indiana Electric filed a request with the IURC to amend the previously approved PPA with Oriden with certain modifications. Revised purchase power costs were approved to be recovered through the fuel adjustment clause
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proceedings over the term of the amended PPA with Oriden. On May 30, 2023, the IURC approved the Vermillion County solar amended PPA; however, due to MISO interconnection study delays, the developer disclosed the project in-service date would be delayed to 2028. On May 9, 2025, Indiana Electric and Oriden terminated the PPA.
On May 1, 2024, Indiana Electric filed with the IURC seeking approval to purchase 147 MW of wind power under a 25-year PPA with an affiliate of NextEra Energy, Inc., which is developing a wind project in Knox County, Illinois. On November 6, 2024, the IURC approved the Knox County wind PPA, which provided for the recovery of the purchase power costs through the fuel adjustment clause proceedings over the term of the PPA. The facility is targeted to be in operation in late 2026.
On April 14, 2025, Indiana Electric filed with the IURC seeking approval to purchase 170 MW of wind power under a 25-year PPA with an affiliate of NextEra Energy, Inc., which is developing a wind project in Tama County, Iowa. On June 3, 2025, an amendment to the PPA was filed with the IURC requesting an extension of the PPA’s term from 25 to 27 years. The facility is targeted to be in operation by the fourth quarter of 2025. Indiana Electric expects a decision from the IURC in the fourth quarter of 2025. If Indiana Electric’s request is approved, the power purchase costs will be recovered through the fuel adjustment clause proceedings over the term of the PPA.
Natural Gas Combustion Turbines
On June 17, 2021, Indiana Electric filed a CPCN with the IURC seeking approval to construct two natural gas combustion turbines to replace portions of its existing coal-fired generation fleet. On June 28, 2022, the IURC approved the CPCN. The estimated $334 million turbine facility is being constructed at the previous site of the A.B. Brown power plant in Posey County, Indiana and is expected to provide a combined output of 460 MW. Indiana Electric received approval for depreciation expense and post in-service carrying costs to be deferred in a regulatory asset until the date Indiana Electric’s base rates include a return on and recovery of depreciation expense on the facility. A new approximately 23.5-mile pipeline was constructed and is operated by Texas Gas Transmission, LLC to supply natural gas to the turbine facility. FERC granted a certificate to construct the pipeline on October 20, 2022. On January 7, 2025, the United States Court of Appeals for the D.C. Circuit affirmed the FERC’s order granting the certificate. Indiana Electric granted its contractor a full notice to proceed to construct the turbines on December 9, 2022. In the second quarter of 2025, 230 MW of the facility was placed in service, and, due to a transformer manufacturing issue, the remaining 230 MW of the facility was placed in service in the third quarter of 2025. On February 6, 2025, the EPC contractor for Indiana Electric’s proposed natural gas combustion turbines provided a notice to Indiana Electric that the EPC contractor was identifying the impacts of the proposed tariffs on the project and intended to seek an equitable adjustment to the contract price for the project. Indiana Electric received approval from the IURC on February 3, 2025, to recover for each combustion turbine by adjusting base rates as they are placed in service. The first turbine and second turbine are currently being recovered in base rates that were updated on June 17, 2025 and October 1, 2025, respectively.
Stewart-West Bay Transmission Project (CenterPoint Energy and Houston Electric)
On April 30, 2025, Houston Electric filed a CCN application with the PUCT for approval to replace a portion of a 138 kV double circuit transmission line in Galveston County, Texas that connects Houston Electric’s Stewart and West Bay substations. On June 27, 2025, an order was issued dismissing all opposing parties from the proceeding. On August 11, 2025, a notice of approval of Houston Electric’s application was issued. The project is estimated to cost approximately $105 million, but the actual capital cost of the project will depend on construction costs and other factors. Completion of construction and energization of the line is anticipated to occur in the third quarter of 2027.
Texas Legislation (CenterPoint Energy, Houston Electric and CERC)
The Registrants are evaluating the effects of certain legislation passed in 2025 and associated PUCT rulemaking projects, including the following pieces of legislation that became law during the 89th Texas Legislature:
•House Bill 4384, effective June 20, 2025, allows LDCs to recover post in-service carry costs (PISCC) in GRIP filings. This allows LDCs to defer for future recovery as a regulatory asset PISCC, depreciation associated with unrecovered gross plant and ad valorem taxes associated with unrecovered gross plant.
•Senate Bill 231, effective June 20, 2025, revises the types of temporary generation units that may be used by a utility to have a maximum generation capacity of not more than 5 MW and be rapidly deployable.
•Senate Bill 1963, effective September 1, 2025, allows ERCOT utilities to securitize system restoration costs using a third-party government agency, which may allow for the debt to be off balance sheet and an abbreviated proceeding timeline. This bill also lowered the system restoration costs threshold from $100 million to $50 million, provided the effectiveness tests are met.
•Senate Bill 482, effective September 1, 2025, results in increased penalties for assaulting a utility worker to a third-degree felony, equal to assaulting a first responder, and for harassing a utility worker to a Class A misdemeanor.
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Solar Panel Issues (CenterPoint Energy)
CenterPoint Energy’s solar projects have been impacted, and any future solar projects may be impacted, by delays and/or increased costs. The potential delays and inflationary cost pressures communicated from the developers of our solar projects have been primarily due to (i) unavailability of solar panels and other uncertainties related to DOC investigation(s), (ii) the December 2021 Uyghur Forced Labor Prevention Act on solar modules and other products manufactured in China’s Xinjiang Uyghur Autonomous Region and (iii) persistent general global supply chain and labor availability issues. On April 21, 2025, the DOC announced its final affirmative determinations in the antidumping and countervailing duty investigations, determining that imports of silicon photovoltaic cells from Cambodia, Malaysia, Thailand and Vietnam are being dumped into the U.S. market and receiving countervailable subsidies. On May 20, 2025, the ITC announced its final determination that a U.S. industry is materially injured by reason of imports of silicon photovoltaic cells from Malaysia and Vietnam and a U.S. industry is threatened with material injury by reason of imports of silicon photovoltaic cells from Cambodia and Thailand. As a result of such determinations, the DOC has imposed certain duty rates on imports of silicon photovoltaic cells from Cambodia, Malaysia, Thailand and Vietnam. On July 1, 2025, the DOC initiated an investigation to determine the effects on national security of imports of polysilicon and its derivatives under Section 232 of the Trade Expansion Act of 1962. On August 7, 2025, based on a petition filed by the American Alliance for Solar Manufacturing Trade, the DOC announced the initiation of antidumping and countervailing duty investigations of silicon photovoltaic cells from India, Indonesia, and the Lao People’s Democratic Republic. On September 2, 2025, the ITC announced its preliminary determination that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of silicon photovoltaic cells from India, Indonesia and the Lao People’s Democratic Republic. The DOC is expected to announce its preliminary determinations for the antidumping and countervailing duty investigations by the end of 2025. Furthermore, in 2025, the U.S. government has announced and, in certain cases, rescinded, multiple tariffs on several foreign jurisdictions and imports into the United States. These tariffs, as well as new legislation, tariffs, bans, retaliatory trade measures or related governmental action, have already, and may continue to, further negatively impact the supply of solar panels. In addition to supply reductions, these or similar duties, legislation, tariffs, bans and other measures have and may in the future also put upward pressure on prices of these solar energy products, which may reduce our ability to acquire these items in a timely and cost-efficient manner. These impacts have resulted, and may continue to result in, cost increases for certain projects, and such impacts may require that we seek additional regulatory review and approvals. Additionally, significant changes to project costs and schedules as a result of these factors could impact the viability of the projects. For more information regarding potential delays, cancellations and supply chain disruptions, see “Risk Factors” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K.
Transmission and Distribution System Resiliency Plan (CenterPoint Energy and Houston Electric)
Following feedback from customers, external experts and other stakeholders, including elected officials and local agencies, Houston Electric filed a revised SRP with the PUCT on January 31, 2025 for review and approval. The filed SRP proposed to invest approximately $5.75 billion over a three-year period from 2026 to 2028 for transmission and distribution infrastructure, information technology and cybersecurity assets and event response capability. This plan proposed 39 resiliency-enhancing measures and a microgrid pilot program to be implemented over the three-year period. The SRP as filed had an estimated capital cost of approximately $5.54 billion and an estimated operations and maintenance expense of approximately $211 million. Approximately $2.17 billion of such cost was for transmission-related investments, and approximately $3.58 billion was for distribution-related investments. Intervenor testimony was filed on April 8, 2025, and PUCT staff testimony was filed on April 15, 2025. On June 12, 2025, Houston Electric announced that it had reached a settlement agreement with parties to its SRP, which provides for approximately $3.18 billion in distribution-related investments. The proposed transmission investments were removed from the SRP and will be implemented as appropriate outside of the SRP process. The agreement also includes the deferral of more than $240 million of the approximate $3.18 billion in SRP costs until the second half of 2029, which will help reduce the bill impact for customers by spreading costs over a four-year period instead of three years. Once approved, and while some cost recovery would be deferred into 2029, it is expected that all SRP work agreed upon in the settlement agreement will be completed in the proposed 2025 to 2028 timeframe. On July 31, 2025, Houston Electric delivered a presentation on the SRP at a PUCT open meeting, and on August 8, 2025, Houston Electric responded to a PUCT memo dated July 30, 2025 that requested additional information. On August 21, 2025, the SRP was additionally discussed at a PUCT open meeting and the PUCT requested further clarification related to the vegetation management resiliency measure included in the SRP. On September 11, 2025, the PUCT granted Houston Electric a window to file supplemental evidence related to the vegetation management measure included in the SRP on or before October 13, 2025. Houston Electric filed such supplemental evidence on October 6, 2025. The PUCT staff must file a recommendation on the sufficiency of the supplemental evidence by October 27, 2025. A decision from the PUCT is anticipated in the fourth quarter of 2025.
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Rate Change Applications
The Registrants are routinely involved in rate change applications before state regulatory authorities. Those applications include general rate cases, where the entire cost of service of the utility is assessed and reset. In addition, the Registrants are periodically involved in proceedings to adjust their capital tracking mechanisms (e.g., CSIA, DCRF, DRR, GRIP, TCOS, ECA, CECA and TDSIC), their decoupling mechanisms (e.g., decoupling and SRC), and their energy efficiency cost trackers (e.g., CIP, DSMA, EECRF, EEFC and EEFR).
Minnesota Gas Rate Case. On November 1, 2023, CERC filed an application with the MPUC requesting an adjustment to delivery charges in 2024 and 2025 for the natural gas business in Minnesota. The requested increase is approximately 6.5% or $85 million for 2024 and an additional approximately 3.7% or $52 million for 2025. The need for a rate change is primarily driven by continuing investment in the safety and reliability of the natural gas system, including new Intelis natural gas meters that feature an integrated safety shutoff valve, changes to depreciation rates that better reflect the actual life and salvage characteristics of assets and changes in other costs to serve customers. The request reflects a proposed 10.3% ROE on a 52.5% equity ratio. Interim rates for 2024 of $69 million, subject to refund, were implemented as of January 1, 2024. A request for interim rates of $33 million for 2025 was filed on September 30, 2024, approved at the December 3, 2024 hearing and approved by an order issued December 20, 2024. A unanimous settlement agreement was filed on November 25, 2024. The settlement provided for an increase of $60.8 million for 2024 and an additional $42.7 million for 2025. The parties agreed to an overall cost of capital of 7.07% for 2024 and 2025. The ALJ filed a report on February 13, 2025 recommending that the MPUC approve the settlement agreement. As required by the December 20, 2024 order, the difference between 2024 interim rates and the settled amount of $60.8 million was refunded to customers in March 2025. Exceptions to the ALJ report were filed on April 18, 2025. On May 29, 2025, the MPUC approved the settlement agreement. A final order approving the settlement agreement was issued by the MPUC on June 27, 2025 and final rates were implemented on September 1, 2025.
Houston Electric Rate Case. On March 6, 2024, Houston Electric filed an application with the PUCT requesting authority to change rates and charges for electric transmission and distribution service. The requested increase was approximately $17 million (1%) for retail customers and $43 million (6.6%) for wholesale transmission service, excluding TCRF and rate case expenses. The need for a rate increase was primarily driven by continuing investment that has been made to support customer growth and to bolster the safety and reliability of Houston Electric’s transmission and distribution system. The request reflected a proposed 10.4% ROE and a 45% equity ratio. Errata testimony was filed to correct minor errors included in the initial filing, which reduced the requested increase to $56 million compared to then-current rates. Houston Electric reached a settlement agreement with certain parties and submitted the agreement to the PUCT on January 29, 2025. The settlement reflects a $47 million reduction in annual revenues and a 9.65% ROE and a weighted average cost of capital of 6.606% based upon an as-filed 4.29% cost of debt, an agreed ROE of 9.65% and an agreed regulatory capital structure of 56.75% long-term debt and 43.25% equity. A final order approving the settlement agreement was issued by the PUCT on March 13, 2025. Final retail delivery rates were implemented on April 28, 2025. Final wholesale transmission rates were superseded by interim TCOS rates that went into effect on the same date.
Ohio Gas Rate Case. CEOH filed its Application and Standard Filing Requirement in October 2024 and the related testimony in November 2024. The filing seeks a revenue requirement increase of approximately $100 million based on a requested ROE of 10.4% and an equity percentage of 54.13%. The need for a rate increase was primarily driven by continuing investment in the safety and reliability of the natural gas system. On May 16, 2025, the PUCO staff filed its staff report recommending a revenue requirement range of $340.8 million to $350.3 million and a net increase of $25.1 million to $34.6 million based on an ROE range from 9.05% to 10.07% with a capitalization ratio of 52.3% common equity and 47.7% long-term debt. The PUCO staff recommendation includes amortization over 49 years and 65 years for CEP and DRR regulatory assets, respectively, compared to CEOH’s proposal to amortize over seven years. On June 16, 2025, CEOH filed objections to the PUCO staff report and supplemental testimony. On July 11, 2025, CEOH filed a stipulation and recommendation that outlined the agreed upon terms between CEOH, the Federal Executive Agencies, Ohio Energy Group, the City of Dayton, the Retail Energy Supply Association, Interstate Gas Supply, LLC and the PUCO staff. One intervening party to the case, Spire Marketing, Inc., is a non-opposing party, while another intervening party to the case, the Office of the Ohio Consumers’ Counsel, filed its testimony in opposition to the stipulation and recommendation on July 29, 2025. The stipulation and recommendation included a revenue requirement of $371.3 million, which would result in a revenue requirement increase of $59.6 million based on a rate of return of 7.1% comprised of a ROE of 9.85% with a capitalization ratio of 52.9% common equity, 47.1% long-term debt at a cost of debt of 4.02%. The stipulation and recommendation amortization periods for CEP and DRR regulatory assets within base rates and within the rider mechanisms is 15 years. The stipulation and recommendation included an extension of the CEP rider and DRR through 2029 investment with revised residential caps for dollars per month per customer ranging from $2.75 for 2025 investment to $9.95 for 2029 investment for the CEP rider, and from $2.56 for 2025 investment to $7.69 for 2029 investment for DRR. The evidentiary hearing commenced on July 21, 2025. The stipulating parties were crossed by the Office of the Ohio Consumers’ Counsel on July 28 and August 4, 2025, and the Office of the Ohio
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Consumers’ Counsel was crossed by the stipulating parties on July 29 and August 5, 2025. On July 29, 2025, a PUCO local public hearing was conducted. The parties filed initial briefs on August 26, 2025, and reply briefs on September 9, 2025. A final order is expected no sooner than the first quarter of 2026.
The table below reflects significant applications pending or completed since the Registrants’ combined 2024 Form 10-K was filed with the SEC through the date of the filing of this combined Form 10-Q:
| Mechanism | Annual Increase (Decrease) (1) (in millions) | Filing Date | Effective Date | Approval Date | Additional Information | |||||||||||||||||||||||||||
| CenterPoint Energy and Houston Electric (PUCT) | ||||||||||||||||||||||||||||||||
Rate Case | $ | (47) | March 2024 | April 2025 | March 2025 | See discussion above under Houston Electric Rate Case. | ||||||||||||||||||||||||||
TCOS | $ | 64 | February 2025 | April 2025 | April 2025 | Based on the net change in invested capital since its last base rate proceeding of approximately $614 million for the period January 1, 2024 through December 31, 2024. | ||||||||||||||||||||||||||
DCRF | $ | 123 | February 2025 | July 2025 | June 2025 | Based on the net change in distribution invested capital since its last base rate proceeding of approximately $1 billion for the period January 1, 2024 through December 31, 2024, for an incremental revenue increase of $123 million adjusted for load growth. | ||||||||||||||||||||||||||
TEEEF | $ | (24) | April 2025 | TBD | TBD | Seeks approval of: (1) a proposal to release Houston Electric’s 15 large 32 MW TEEEF units to ERCOT and CPS Energy beginning on or around May 1, 2025 to address a potential shortfall and Load Shed risk; (2) a corresponding reduction to the capacity of the Houston Electric TEEEF fleet; and (3) a reduction and update to Houston Electric’s rider TEEEF rate to reflect the removal of the 15 large 32 MW TEEEF units from Houston Electric’s TEEEF fleet. Houston Electric will make no revenue or profit from ERCOT for the time period when the 15 large 32 MW TEEEF units are in the San Antonio area being dispatched by ERCOT. | ||||||||||||||||||||||||||
TEEEF | N/A | May 2025 | TBD | TBD | Seeks authorization to lease additional small, 200 kW to 1,250 kW TEEEF units in accordance with the TEEEF Rule. Among other things, the TEEEF Rule requires that a utility obtain preapproval prior to entering into any lease renewal or new leases for TEEEF units. Approval of Houston Electric’s request in this filing will have no cost impact on customers at this time, as cost determination will occur in a future proceeding. On October 17, 2025, Houston Electric filed a letter indicating that the parties continue to engage in productive settlement negotiations and plan to file settlement documents or another status update by October 31, 2025. | |||||||||||||||||||||||||||
EECRF | $ | 40 | May 2025 | March 2026 | TBD | Requests $96 million, which is comprised primarily of the following: 2026 program costs of $50 million; $5 million related to the under-recovery of 2024 program costs; the 2024 earned bonus of $40 million; and 2026 projected evaluation, measurement and verification costs of $0.6 million. On September 8, 2025, the Sierra Club filed direct testimony. On September 19, 2025, the PUCT staff filed its recommendation requesting that SOAH approve the application as filed. On October 3, 2024, the PUCT staff petitioned (Docket No. 57172) to establish a secondary cap on utilities’ 2024 Program Year (PY) earned performance bonuses equal to 25% of utilities’ total expenditures for PY 2024, and on August 13, 2025, the PUCT issued a final order denying the PUCT staff’s petition. On October 7, 2025, Houston Electric filed an unanimous stipulation and settlement agreement for the full amount requested. On October 10, 2025, SOAH remanded this proceeding to the PUCT. | ||||||||||||||||||||||||||
TCOS | $ | 15 | August 2025 | October 2025 | October 2025 | Based on the net change in invested capital since its last TCOS proceeding of approximately $112 million for the period January 1, 2025 through June 30, 2025. | ||||||||||||||||||||||||||
DCRF | $ | 55 | August 2025 | TBD | TBD | Based on the net change in distribution invested capital since its last base rate proceeding of approximately $1.4 billion for the period January 1, 2024 through June 30, 2025 for an incremental revenue increase of $55 million adjusted for load growth. | ||||||||||||||||||||||||||
| CenterPoint Energy and CERC - Beaumont/East Texas, South Texas, Houston and Texas Coast (Railroad Commission) | ||||||||||||||||||||||||||||||||
Tax Act Rider | $ | 15 | August 2024 | June 2025 | May 2025 | Resulting from the Texas Gas Rate Case, the first Tax Act Rider Calculation was filed on August 1, 2024 pursuant to Docket No. OS-23-00015513 to recover the effects of the IRA and certain other tax-related costs for rates that became effective January 1, 2025. These effects include the return on the CAMT deferred tax asset (“DTA”) resulting from the IRA, income tax credits resulting from the IRA and the return on the increment or decrement in the net operating loss DTA included in the rate base and in the standard service base revenue requirement approved in the Texas Gas Rate Case. CERC believes its filing is consistent with the Tax Act Rider tariff approved in Docket No. OS-23-00015513. On October 1, 2024, certain parties filed comments disputing the application. Briefings were filed with an ALJ in November 2024. A hearing on the merits was held on February 21, 2025 and continued on March 21, 2025. On March 21, 2025, a unanimous settlement agreement was filed. On April 11, 2025, a PFD was issued. On May 13, 2025, the Railroad Commission considered the PFD at an open meeting and issued a Final Order approving the settlement agreement. | ||||||||||||||||||||||||||
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| Mechanism | Annual Increase (Decrease) (1) (in millions) | Filing Date | Effective Date | Approval Date | Additional Information | |||||||||||||||||||||||||||
Tax Act Rider | $ | 22 | August 2025 | January 2026 | October 2025 | The second Tax Act Rider was initially filed on August 1, 2025, and a revised filing was made on September 24, 2025, to recover the effects of the IRA and certain other tax-related costs for rates that would be effective for bills calculated on or after January 1, 2026. These effects include the return on the CAMT DTA resulting from the IRA, income tax credits resulting from the IRA and the return on the increment or decrement in the net operating loss DTA included in the rate base and in the standard service base revenue requirement approved in the Texas Gas Rate Case Docket No. OS-23-00015513. No comments from the parties were filed prior to the October 1, 2025 deadline for comments. The Railroad Commission accepted the Tax Act Rider filing on October 16, 2025. | ||||||||||||||||||||||||||
GRIP | $ | 70 | February 2025 | June 2025 | May 2025 | Based on net change in invested capital of $445 million. | ||||||||||||||||||||||||||
| CenterPoint Energy and CERC - Minnesota (MPUC) | ||||||||||||||||||||||||||||||||
Rate Case | $ | 104 | November 2023 | September 2025 | July 2025 | See discussion above under Minnesota Gas Rate Case. | ||||||||||||||||||||||||||
CIP Financial Incentive | $ | 8 | May 2025 | TBD | TBD | CIP Financial Incentive based on 2024 CIP program activity. | ||||||||||||||||||||||||||
CenterPoint Energy - Indiana South - Gas (IURC) | ||||||||||||||||||||||||||||||||
CSIA | $ | 2 | April 2025 | August 2025 | July 2025 | Requested an increase of $11.6 million to rate base, which reflects an approximately $1.5 million annual increase in current revenues, of which 80% is included in the mechanism and 20% is deferred until the next rate case. The mechanism also includes a change in (over)/under recovery variance of $1.9 million. The OUCC filed testimony on June 3, 2025, recommending minor changes. Indiana South filed a rebuttal on June 17, 2025, adopting the changes. The evidentiary hearing was held on June 30, 2025. A final order was issued on July 30, 2025, with rates effective August 1, 2025. | ||||||||||||||||||||||||||
CSIA | $ | 1 | October 2025 | TBD | TBD | Requested an increase of $13.0 million to rate base, which reflects an approximately $1.2 million annual increase in current revenues, of which 80% is included in the mechanism and 20% is deferred until the next rate case. The mechanism also includes a change in (over)/under recovery variance of $(2.1) million. The OUCC is expected to file testimony on December 2, 2025, and Indiana South’s rebuttal is due on December 16, 2025. An evidentiary hearing is scheduled for January 6, 2026. | ||||||||||||||||||||||||||
| CenterPoint Energy and CERC - Indiana North - Gas (IURC) | ||||||||||||||||||||||||||||||||
CSIA | $ | 9 | April 2025 | August 2025 | July 2025 | Requested an increase of $94.9 million to rate base, which reflects an approximately $8.6 million annual increase in current revenues, of which 80% is included in the mechanism and 20% is deferred until the next rate case. The mechanism also includes a change in (over)/under recovery variance of $5 million. The OUCC filed testimony on June 3, 2025. Indiana North filed rebuttal testimony on June 17, 2025. The evidentiary hearing was held on June 30, 2025. A final order was issued on July 30, 2025, with rates effective August 1, 2025. | ||||||||||||||||||||||||||
CSIA | $ | 8 | October 2025 | TBD | TBD | Requested an increase of $90.8 million to rate base, which reflects an approximately $7.6 million annual increase in current revenues, of which 80% is included in the mechanism and 20% is deferred until the next rate case. The mechanism also includes a change in (over)/under recovery variance of $(6.8) million. The OUCC is expected to file testimony on December 2, 2025, and Indiana North’s rebuttal is due on December 16, 2025. An evidentiary hearing is scheduled for January 6, 2026. | ||||||||||||||||||||||||||
CenterPoint Energy and CERC - Ohio - Gas (PUCO) | ||||||||||||||||||||||||||||||||
DRR | $ | 6 | May 2025 | September 2025 | August 2025 | Requested an increase of $54 million to rate base for investments made in 2024, which reflects a $6 million annual increase in current revenues. A change in (over)/under-recovery variance of ($0.03) million annually is also included in rates. PUCO staff and intervenor (Ohio Consumers’ Counsel) filed comments June 27, 2025. PUCO staff recommended approval. Ohio Consumers’ Counsel commented on affordability and provided potential solutions including stretching out the replacement program over a longer period of time, phasing in the annual increase, shifting from fixed charges to volumetric charges, and increasing funding for its bill assistance programs. A statement informing the PUCO of whether the issues raised in comments have been resolved was filed on July 11, 2025. Supplemental Testimony from CEOH and the Ohio Consumers’ Counsel was filed on July 22, 2025. A hearing was scheduled for July 29, 2025, with all parties waiving motions to strike, objections, and cross examination. A final PUCO opinion and order was issued on August 20, 2025, finding that the updated DRR rates are just and reasonable and stating that the correct forum for the Ohio Consumers’ Counsel’s arguments was the 2018 Rate Case, the 2022 Extension, or the 2024 Rate Case. Revised rates became effective on September 1, 2025. | ||||||||||||||||||||||||||
Rate Case | $ | 100 | October 2024 | TBD | TBD | See discussion above under Ohio Gas Rate Case. | ||||||||||||||||||||||||||
(1)Represents proposed increases (decreases) when effective date and/or approval date is not yet determined. Approved rates could differ materially from proposed rates.
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Tariffs
In 2025, the U.S. government has announced and, in certain cases, rescinded, multiple tariffs on several foreign jurisdictions and imports into the United States. For example, in March 2025, the U.S. government imposed a 25% tariff on steel imports (increased an additional 25% in June 2025), and in April 2025, the U.S. government announced a baseline tariff of 10% on products imported from most countries and an additional individualized reciprocal tariff on the countries with which the United States has the largest trade deficits, including China. In August 2025, the U.S. government imposed a 25% tariff on India in response to its continued importation of Russian oil, which is in addition to the pre-existing 25% individualized reciprocal tariff on India. Increased tariffs by the United States have led, and may continue to lead, to the imposition of retaliatory tariffs or other measures taken by foreign jurisdictions, which may in turn lead to additional tariffs imposed or measures taken by the United States. In August 2025, however, the U.S. Court of Appeals for the Federal Circuit ruled that many of the tariffs imposed under the Trump Administration exceed presidential authority and therefore are invalid, though the decision has been stayed pending U.S. Supreme Court review. This ruling introduces additional uncertainty as to the scope and durability of existing and future tariff measures. While the U.S. government has announced various trade deals, many such agreements are preliminary and may be subject to change. Further, any future disagreement between the U.S. government and other countries over the implementation of trade deals or any failure to obtain required governmental approvals or otherwise reach a final agreement could result in prolonged uncertainty regarding the scope and duration of such trade actions by the U.S. government and other countries. Such announcements, rescissions of tariffs on foreign jurisdictions and other trade actions have increased uncertainty regarding the ultimate effects of the tariffs on economic conditions. Current uncertainties about tariffs and their effects on trading relationships may affect the Registrants’ ability to access the capital markets, contribute to inflation in the markets in which the Registrants operate, increase commodity cost volatility, impact availability of goods and materials or otherwise negatively impact the global supply chain. The Registrants are continuing to monitor the economic effects of such announcements and developments, as well as the Registrants’ ability to mitigate their related impacts, but costs and other effects associated with the tariffs remain uncertain.
Greenhouse Gas and Climate-Related Regulation and Compliance (CenterPoint Energy)
There has been increasing attention at the local, state and international levels to the issue of climate risk. There has been a recent shift, however, in climate policy at the federal level in the United States. On June 11, 2025, the EPA proposed to repeal all GHG emissions standards for the power sector under Section 111 of the Clean Air Act. As an alternative, the EPA proposed to repeal a narrower set of requirements, including the emission guidelines for existing fossil fuel-fired steam electric generating units and the carbon capture and sequestration/storage-based standards for new base load stationary combustion turbines. On July 29, 2025, the EPA issued an interim final rule extending several compliance deadlines associated with the 2024 New Source Performance Standards (“NSPS OOOOb”) and Emissions Guidelines (“EG OOOOc”) for the oil and gas industry. NSPS OOOOb and EG OOOOc were published in March 2024 and took effect in May 2024. The EPA announced its intention to reconsider NSPS OOOOb and EG OOOOc in March 2025. On July 29, 2025, the EPA released a pre-publication proposed rule which would rescind EPA’s 2009 final rule under the Clean Air Act finding that GHGs endanger the public health and welfare of current and future generations (“Endangerment Finding”) and that emissions of GHGs from new motor vehicles contribute to GHG pollution that threatens the public health and welfare. On September 16, 2025, the EPA announced a proposal to end the Greenhouse Gas Reporting Program (“GHGRP”) for all sectors except petroleum and natural gas systems (excluding reporting for natural gas distribution, which would also be eliminated under the proposal). Reporting for petroleum and natural gas systems under the GHGRP would be deferred until 2034 under the proposal. The Registrants will monitor the proposed rules and evaluate the impacts of any final rules.
On March 6, 2024, the SEC adopted final rules that require the Registrants to disclose certain climate-related information in registration statements and annual reports. Litigation challenging the rules was filed by multiple parties in multiple jurisdictions, which was consolidated and assigned to the U.S. Court of Appeals for the Eighth Circuit. On April 4, 2024, the SEC announced it was voluntarily delaying the implementation of the climate disclosure rules while the U.S. Court of Appeals considered the litigation, and on March 27, 2025, the SEC voted to end the defense of the rules in the litigation. On September 12, 2025, the U.S. Court of Appeals issued an order to hold the petitions challenging the climate disclosure rules in abeyance pending further action by the SEC.
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Climate Risk Trends and Uncertainties
Changes in the U.S. presidential administration and significant expected increases in electric demand, as announced by organizations such as ERCOT and MISO, have shifted the energy landscape in the United States. Since taking office, President Trump has issued a series of executive orders and presidential memoranda that seek to increase investment in fossil fuel infrastructure, including by directing all heads of federal agencies to identify and begin the processes to suspend, revise or rescind all agency actions that are determined to be unduly burdensome on the identification, development or use of domestic energy resources, with particular attention to oil, natural gas, hydropower, biofuels, critical mineral and nuclear energy resources. Additionally, on July 4, 2025, the OBBBA was signed into law, which includes numerous changes to the energy tax credits initially introduced and expanded under the IRA, including accelerated phase outs for certain credits. Further, on July 7, 2025, President Trump issued Executive Order 14315, which relates to the implementation of such changes to energy tax credits. This shift in federal domestic energy policy has resulted in uncertainty with respect to the scope and speed of future renewable generation infrastructure development and the role that existing renewable generation will play in support of the U.S. energy grid. The long-term impacts of this domestic energy policy shift are uncertain, including with respect to impacts on the development of, and consequently the availability of, alternative energy sources (such as solar energy, including private solar, wind energy, microturbines, fuel cells, energy-efficient buildings and energy storage devices). Additionally, it is unclear whether, and if so how, the new domestic energy policy, including the potential suspension, revision or rescission of regulations restricting emissions (including methane emissions), will affect consumers’ and companies’ energy use, adoption of alternative energy sources or decisions to expand their facilities, including natural gas facilities.
Other Matters
Credit Facilities
The Registrants may draw on their respective revolving credit facilities from time to time to provide funds used for general corporate and limited liability company purposes, including to backstop CenterPoint Energy’s and CERC’s commercial paper programs. The facilities may also be utilized to obtain letters of credit. For further details related to the Registrants’ revolving credit facilities, see Note 9 to the Interim Condensed Financial Statements.
Based on the consolidated debt to capitalization covenant in the Registrants’ revolving credit facilities, the Registrants would have been permitted to utilize the full capacity of such revolving credit facilities, which aggregated approximately $4.0 billion as of September 30, 2025. As of October 20, 2025, the Registrants had the following revolving credit facilities and utilization of such facilities:
Amount Utilized as of October 20, 2025 | ||||||||||||||||||||||||||||||||||||||
| Registrant | Size of Facility | Loans | Letters of Credit | Commercial Paper | Weighted Average Interest Rate | Termination Date | ||||||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||||||||
| CenterPoint Energy | $ | 2,400 | $ | — | $ | — | $ | 50 | 4.19% | December 6, 2028 | ||||||||||||||||||||||||||||
| CenterPoint Energy (1) | 250 | — | — | — | —% | December 6, 2028 | ||||||||||||||||||||||||||||||||
| Houston Electric | 300 | — | — | — | —% | December 6, 2028 | ||||||||||||||||||||||||||||||||
| CERC | 1,050 | — | — | 310 | 4.19% | December 6, 2028 | ||||||||||||||||||||||||||||||||
| Total | $ | 4,000 | $ | — | $ | — | $ | 360 | ||||||||||||||||||||||||||||||
(1)This credit facility was issued by SIGECO.
The Registrants and SIGECO are currently in compliance with the various business and financial covenants in the four revolving credit facilities.
Debt Transactions
For detailed information about the Registrants’ debt transactions to date in 2025, see Note 9 to the Interim Condensed Financial Statements.
Securities Registered with the SEC
On May 17, 2023, the Registrants filed a joint shelf registration statement with the SEC registering indeterminate principal amounts of Houston Electric’s general mortgage bonds, CERC Corp.’s senior debt securities and CenterPoint Energy’s senior debt securities and junior subordinated debt securities and an indeterminate number of shares of Common Stock, shares of
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preferred stock, depositary shares, as well as stock purchase contracts and equity units. The joint shelf registration statement will expire on May 17, 2026. For information related to the Registrants’ debt issuances in 2025, see Note 9 to the Interim Condensed Financial Statements.
Additionally, for information related to shares of Common Stock sold pursuant to the forward sale agreements and the Equity Distribution Agreement in 2025, see Note 15 to the Interim Condensed Financial Statements.
Money Pool
The Registrants participate in a money pool through which they and certain of their subsidiaries 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 Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper.
The table below summarizes CenterPoint Energy money pool activity by Registrant as of October 20, 2025:
| Weighted Average Interest Rate | Houston Electric | CERC | |||||||||||||||
| (in millions) | |||||||||||||||||
Money pool investments (borrowings) | 4.25% | $ | 453 | $ | (200) | ||||||||||||
Impact on Liquidity of a Downgrade in Credit Ratings
The interest rate on borrowings under the credit facilities is based on each respective borrower’s credit ratings. As of October 20, 2025, Moody’s, S&P and Fitch had assigned the following credit ratings to the borrowers:
| Moody’s | S&P | Fitch | ||||||||||||||||||||||||||||||||||||||||||
| Registrant | Borrower/Instrument | Rating | Outlook (1) | Rating | Outlook (2) | Rating | Outlook (3) | |||||||||||||||||||||||||||||||||||||
| CenterPoint Energy | CenterPoint Energy Senior Unsecured Debt | Baa2 | Negative | BBB | Negative | BBB | Stable | |||||||||||||||||||||||||||||||||||||
| CenterPoint Energy | Vectren Corp. Issuer Rating | n/a | n/a | BBB+ | Negative | n/a | n/a | |||||||||||||||||||||||||||||||||||||
| CenterPoint Energy | SIGECO Senior Secured Debt | A1 | Stable | A | Negative | n/a | n/a | |||||||||||||||||||||||||||||||||||||
| Houston Electric | Houston Electric Senior Secured Debt | A2 | Negative | A | Negative | A | Negative | |||||||||||||||||||||||||||||||||||||
| CERC | CERC Corp. Senior Unsecured Debt | A3 | Stable | BBB+ | Negative | A- | Stable | |||||||||||||||||||||||||||||||||||||
| CERC | Indiana Gas Senior Unsecured Debt | n/a | n/a | BBB+ | Negative | n/a | n/a | |||||||||||||||||||||||||||||||||||||
(1)A Moody’s rating outlook is an opinion regarding the likely direction of an issuer’s rating over the medium term.
(2)An S&P outlook assesses the potential direction of a long-term credit rating over the intermediate to longer term.
(3)A Fitch rating outlook indicates the direction a rating is likely to move over a one- to two-year period.
The Registrants cannot assure that the ratings set forth above will remain in effect for any given period of time or that one or more of these ratings will not be lowered or withdrawn entirely by a rating agency. The Registrants note that these credit ratings are included for informational purposes and are not recommendations to buy, sell or hold the Registrants’ securities and may be revised or withdrawn at any time by the rating agency. Each rating should be evaluated independently of any other rating. Any future reduction or withdrawal of one or more of the Registrants’ credit ratings could have a material adverse impact on the Registrants’ ability to obtain short- and long-term financing, the cost of such financings and the execution of the Registrants’ commercial strategies.
A decline in credit ratings could increase borrowing costs under the Registrants’ revolving credit facilities. If the Registrants’ credit ratings had been downgraded one notch by S&P and Moody’s from the ratings that existed as of September 30, 2025, the impact on the borrowing costs under the four revolving credit facilities would have been insignificant. A decline in credit ratings would also increase the interest rate on long-term debt to be issued in the capital markets and could negatively impact the Registrants’ ability to complete capital market transactions and to access the commercial paper market. Additionally, a decline in credit ratings could increase cash collateral requirements and reduce earnings of CenterPoint Energy’s and CERC’s Natural Gas reportable segments.
Pipeline tariffs and contracts typically provide that if the credit ratings of a shipper or the shipper’s guarantor drop below a threshold level, which is generally investment grade ratings from both Moody’s and S&P, cash or other collateral may be demanded from the shipper in an amount equal to the sum of three months’ charges for pipeline services plus the unrecouped
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cost of any lateral built for such shipper. If the credit ratings of CERC Corp. decline below the applicable threshold levels, CERC might need to provide cash or other collateral of up to $293 million as of September 30, 2025. The amount of collateral will depend on seasonal variations in transportation levels.
ZENS and Securities Related to ZENS (CenterPoint Energy)
If CenterPoint Energy’s creditworthiness were to drop such that ZENS holders thought CenterPoint Energy’s liquidity was adversely affected or the market for the ZENS were to become illiquid, some ZENS holders might decide to exchange their ZENS for cash. Funds for the payment of cash upon exchange could be obtained from the sale of the shares of ZENS-Related Securities that CenterPoint Energy owns or from other sources. CenterPoint Energy owns shares of ZENS-Related Securities equal to approximately 100% of the reference shares used to calculate its obligation to the holders of the ZENS. ZENS exchanges result in a cash outflow because tax deferrals related to the ZENS and shares of ZENS-Related Securities would typically cease when ZENS are exchanged or otherwise retired and shares of ZENS-Related Securities are sold. The ultimate tax liability related to the ZENS and ZENS-Related Securities continues to increase by the amount of the tax benefit realized each year, and there could be a significant cash outflow when the taxes are paid as a result of the retirement or exchange of the ZENS. If all ZENS had been exchanged for cash on September 30, 2025, deferred taxes of approximately $861 million would have been payable in 2025. If all the ZENS-Related Securities had been sold on September 30, 2025, capital gains taxes of approximately $87 million would have been payable in 2025 based on 2025 tax rates in effect. As of September 30, 2025, CenterPoint Energy had both net operating loss and CAMT carryforwards available from its filed 2024 federal income tax return that can be applied to largely offset the cash outflow that would result from a retirement or exchange of the ZENS. For additional information about ZENS, see Note 8 to the Interim Condensed Financial Statements.
Cross Defaults
Under the Registrants’ respective revolving credit facilities, a payment default on, or a non-payment default, event or condition that permits acceleration of, any indebtedness for borrowed money and certain other specified types of obligations (including guarantees) exceeding $125 million by the borrower or any of their respective significant subsidiaries will cause a default under such borrower’s respective credit facility or term loan agreement. Under SIGECO’s revolving credit facility, a payment default on, or a non-payment default, event or condition that permits acceleration of, any indebtedness for borrowed money and certain other specific types of obligations (including guarantees) exceeding $75 million by SIGECO or any of its significant subsidiaries will cause a default under SIGECO’s credit facility. A default by CenterPoint Energy would not trigger a default under its subsidiaries’ debt instruments or revolving credit facilities.
Possible Acquisitions, Divestitures and Joint Ventures
From time to time, the Registrants consider the acquisition or the disposition of assets or businesses or possible joint ventures, strategic initiatives or other joint ownership arrangements with respect to assets or businesses. Any determination to take action in this regard will be based on market conditions and opportunities existing at the time, and accordingly, the timing, size or success of any efforts and the associated potential capital commitments are unpredictable. The Registrants may seek to fund all or part of any such efforts with proceeds from debt and/or equity issuances. Debt or equity financing may not, however, be available to the Registrants at that time due to a variety of events, including, among others, maintenance of our credit ratings, industry conditions, general economic conditions, market conditions and market perceptions. CenterPoint Energy has increased its planned capital expenditures in its Electric and Natural Gas businesses multiple times over the recent years to support rate base growth and may continue to do so in the future. The Registrants may continue to explore asset sales as a means to efficiently finance a portion of its increased capital expenditures in the future, subject to the considerations listed above. For further information, see Note 3 to the Interim Condensed Financial Statements.
On February 19, 2024, CenterPoint Energy, through its subsidiary CERC Corp., entered into the LAMS Asset Purchase Agreement to sell its Louisiana and Mississippi natural gas LDC businesses for approximately $1.2 billion, subject to adjustment as set forth in the LAMS Asset Purchase Agreement, including adjustments based on net working capital, regulatory assets and liabilities and capital expenditures at closing. The transaction closed on March 31, 2025. On March 7, 2025, SIGECO acquired 100% of the equity interests in Posey Solar, which was constructing a 191 MW solar array in Posey County, Indiana, for approximately $357 million. For further information, see Note 3 to the Interim Condensed Financial Statements. In May 2025, CenterPoint Energy announced that it is planning to sell its Ohio natural gas LDC business to support the efficient recycling of capital and portfolio optimization.
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 proposed transaction is expected to close in the fourth quarter of 2026. For further information, see Note 16 to the Interim Condensed Financial Statements.
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Collection of Receivables from REPs (CenterPoint Energy and Houston Electric)
Houston Electric’s receivables from the distribution of electricity are collected from REPs that supply the electricity Houston Electric distributes to their customers. Before conducting business, a REP must register with the PUCT and must meet certain financial qualifications. Nevertheless, adverse economic conditions, weather events such as the February 2021 Winter Storm Event, structural problems in the market served by ERCOT or financial difficulties of one or more REPs could impair the ability of these REPs to pay for Houston Electric’s services or could cause them to delay such payments. Houston Electric depends on these REPs to remit payments on a timely basis, and any delay or default in payment by REPs could adversely affect Houston Electric’s cash flows. In the event of a REP default, Houston Electric’s tariff provides a number of remedies, including the option for Houston Electric to request that the PUCT suspend or revoke the certification of the REP. Applicable regulatory provisions require that customers be shifted to another REP or a provider of last resort if a REP cannot make timely payments. However, Houston Electric remains at risk for payments related to services provided prior to the shift to the replacement REP or the provider of last resort. If a REP were unable to meet its obligations, it could consider, among various options, restructuring under the bankruptcy laws, in which event such REP might seek to avoid honoring its obligations and claims might be made against Houston Electric involving payments it had received from such REP. If a REP were to file for bankruptcy, Houston Electric may not be successful in recovering accrued receivables owed by such REP that are unpaid as of the date the REP filed for bankruptcy. However, PUCT regulations authorize utilities, such as Houston Electric, to defer bad debts resulting from defaults by REPs for recovery in future rate cases, subject to a review of reasonableness and necessity.
Other Factors that Could Affect Cash Requirements
In addition to the above factors, the Registrants’ liquidity and capital resources could also be negatively affected by:
•cash collateral requirements that could exist in connection with certain contracts, including weather hedging arrangements, and natural gas purchases, natural gas price and natural gas storage activities of CenterPoint Energy’s and CERC’s Natural Gas reportable segment;
•acceleration of payment dates on certain gas supply contracts, under certain circumstances, as a result of increased natural gas prices, and concentration of natural gas suppliers (CenterPoint Energy and CERC);
•increased costs related to the acquisition of natural gas (CenterPoint Energy and CERC);
•increased costs of certain goods, materials or services due to tariffs or trade restrictions imposed by the U.S. government, the imposition of retaliatory tariffs or other measures, and any effect on trading relationships between the United States and other countries;
•increases in interest expense in connection with debt refinancings and borrowings under credit facilities or term loans or the use of alternative sources of financings, including financings due to the May 2024 Storm Events and Hurricane Beryl;
•various legislative, executive or regulatory actions at the federal, state and local levels, including actions in response to Hurricane Beryl and actions pertaining to trade (including tariffs, bans, retaliatory trade measures taken against the United States or related governmental action);
•incremental collateral, if any, that may be required due to regulation of derivatives (CenterPoint Energy);
•the ability of REPs, including REP affiliates of NRG and Vistra Energy Corp., to satisfy their obligations to CenterPoint Energy and Houston Electric;
•slower customer payments and increased write-offs of receivables due to higher natural gas prices, changing economic conditions, public health threats or severe weather events, such as the May 2024 Storm Events and Hurricane Beryl (CenterPoint Energy and CERC);
•the satisfaction of any obligations pursuant to guarantees;
•the outcome of litigation, including litigation related to the February 2021 Winter Storm Event and Hurricane Beryl;
•contributions to pension and postretirement benefit plans;
•recovery of any losses under applicable insurance policies;
•restoration costs and revenue losses resulting from future natural disasters such as hurricanes or other severe weather events and the timing of and amounts sought for recovery of such restoration costs; and
•various other risks identified in “Risk Factors” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K, which are incorporated herein by reference, in Part II, Item 1A of this combined Form 10-Q, and in other reports that the Registrants file from time to time with the SEC.
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Certain Contractual Limits on Our Ability to Issue Securities and Borrow Money
Certain provisions in certain note purchase agreements relating to debt issued by CERC have the effect of restricting the amount of secured debt issued by CERC and debt issued by subsidiaries of CERC Corp. Additionally, Houston Electric and SIGECO are limited in the amount of mortgage bonds they can issue by the General Mortgage and SIGECO’s mortgage indenture, respectively. For information about the total debt to capitalization financial covenants in the Registrants’ and SIGECO’s revolving credit facilities, see Note 9 to the Interim Condensed Financial Statements.
CRITICAL ACCOUNTING POLICIES
A critical accounting policy is one that is both important to the presentation of the Registrants’ financial condition and results of operations and requires management to make difficult, subjective or complex accounting estimates. An accounting estimate is an approximation made by management of a financial statement element, item or account in the financial statements. Accounting estimates in the Registrants’ historical consolidated financial statements measure the effects of past business transactions or events, or the present status of an asset or liability. Additionally, different estimates that the Registrants could have used or changes in an accounting estimate that are reasonably likely to occur could have a material impact on the presentation of their financial condition, results of operations or cash flows. The circumstances that make these judgments difficult, subjective and/or complex have to do with the need to make estimates about the effect of matters that are inherently uncertain. Estimates and assumptions about future events and their effects cannot be predicted with certainty. The Registrants base their estimates on historical experience and on various other assumptions that they believe to be reasonable under the circumstances, the results of which form the basis for making judgments. These estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the Registrants’ operating environment changes. Our critical accounting policies that we deemed the most material in nature were reported in our combined 2024 Form 10-K. There has been no material changes with regard to these critical accounting policies.
Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Houston Electric and CERC meet the conditions specified in General Instruction H(1)(a) and (b) to Form 10-Q and are therefore permitted to use the reduced disclosure format for wholly-owned subsidiaries of reporting companies. Accordingly, Houston Electric and CERC have omitted from this report the information called for by Item 3 (Quantitative and Qualitative Disclosures About Market Risk) of Part I of the Form 10-Q.
Information regarding the Registrants’ quantitative and qualitative disclosures about market risk are disclosed in Part II, Item 7A of our combined 2024 Form 10-K. Except as described below, there have been no material changes in those disclosures.
Interest Rate Risk (CenterPoint Energy)
As of September 30, 2025, the Registrants had outstanding long-term debt and lease obligations and CenterPoint Energy had obligations under its ZENS that subject them to the risk of loss associated with movements in market interest rates. The Registrants seek to manage interest rate exposure by monitoring the effects of changes in market interest rates and using a combination of fixed and variable rate debt. Additionally, interest rate swaps are used to mitigate interest rate exposure when deemed appropriate.
CenterPoint Energy’s floating rate obligations aggregated $1.1 billion and $1.5 billion as of September 30, 2025 and December 31, 2024, respectively. If the floating interest rates were to increase by 100 basis points from September 30, 2025 rates, CenterPoint Energy’s combined interest expense would increase by approximately $11 million annually.
As of September 30, 2025 and December 31, 2024, CenterPoint Energy had outstanding fixed-rate debt (excluding indexed debt securities) aggregating $21.4 billion and $19.7 billion, respectively, in principal amount and having a fair value of $20.8 billion and $18.4 billion, respectively. Because these instruments are fixed-rate, they do not expose CenterPoint Energy to the risk of loss in earnings due to changes in market interest rates. However, the fair value of these instruments would increase by approximately $764 million if interest rates were to decline by 10% from levels on September 30, 2025. In general, such an increase in fair value would impact earnings and cash flows only if CenterPoint Energy were to reacquire all or a portion of these instruments in the open market prior to their maturity.
Item 4.CONTROLS AND PROCEDURES
In accordance with Exchange Act Rules 13a-15 and 15d-15, the Registrants carried out separate evaluations, under the supervision and with the participation of each company’s management, including the principal executive officer and principal financial officer, of the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report. Based on those evaluations, the principal executive officer and principal financial officer, in each case, concluded that the
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disclosure controls and procedures were effective as of September 30, 2025 to provide assurance that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and such information is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding disclosure.
There has been no change in the Registrants’ internal controls over financial reporting that occurred during the three months ended September 30, 2025 that has materially affected, or is reasonably likely to materially affect, the Registrants’ internal controls over financial reporting.
PART II. OTHER INFORMATION
Item 1.LEGAL PROCEEDINGS
For a description of material legal and regulatory proceedings, including environmental legal proceedings that involve a governmental authority as a party and that the Registrants reasonably believe would result in $1,000,000 or more of monetary sanctions, exclusive of interest and costs, under federal, state and local laws that have been enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment, affecting the Registrants, see Note 11(d) to the Interim Condensed Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Future Sources and Uses of Cash” and “— Regulatory Matters,” each of which is incorporated herein by reference. See also “Business — Regulation” and “— Environmental Matters” in Part I, Item 1 and “Legal Proceedings” in Part I, Item 3 of the Registrants’ combined 2024 Form 10-K.
Item 1A.RISK FACTORS
There have been no material changes from the risk factors disclosed in the Registrants’ combined 2024 Form 10-K.
Item 5.OTHER INFORMATION
Rule 10b5-1 Trading Arrangements
During the three months ended September 30, 2025, no director or officer of CenterPoint Energy, Houston Electric or CERC adopted terminated
Item 6.EXHIBITS
Exhibits filed herewith are designated by a cross (†); all exhibits not so designated are incorporated by reference to a prior filing as indicated. Agreements included as exhibits are included only to provide information to investors regarding their terms. The agreements listed below may contain representations, warranties and other provisions that were made, among other things, to provide the parties thereto with specified rights and obligations and to allocate risk among them, and such agreements should not be relied upon as constituting or providing any factual disclosures about the Registrants, any other persons, any state of affairs or other matters.
Pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, the Registrants have not filed as exhibits to this combined Form 10-Q certain long-term debt instruments, including indentures, under which the total amount of securities authorized does not exceed 10% of the total assets of the Registrants and its subsidiaries on a consolidated basis. The Registrants hereby agree to furnish a copy of any such instrument to the SEC upon request.
| Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||||||||||||
| 2.1* | Asset Purchase Agreement, dated February 19, 2024, among CenterPoint Energy Resources Corp. and Delta Utilities No. LA, LLC, Delta Utilities S. LA, LLC, Delta Utilities MS, LLC, and Delta Shared Services Co., LLC | CenterPoint Energy’s Form 8-K dated February 19, 2024 | 1-31447 | 1.1 | x | x | ||||||||||||||||||||||||||||||||||||||
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| Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||||||||||||
2.2* | Securities Purchase Agreement, dated October 20, 2025, by and between CenterPoint Energy Resources Corp. and National Fuel Gas Company | CenterPoint Energy’s Form 8-K dated October 20, 2025 | 1-31447 | 2.1 | x | x | ||||||||||||||||||||||||||||||||||||||
| 3.1 | Restated Articles of Incorporation of CenterPoint Energy | CenterPoint Energy’s Form 8-K dated July 24, 2008 | 1-31447 | 3.2 | x | |||||||||||||||||||||||||||||||||||||||
| 3.2 | Restated Certificate of Formation of Houston Electric | Houston Electric’s Form 10-Q for the quarter ended June 30, 2011 | 1-3187 | 3.1 | x | |||||||||||||||||||||||||||||||||||||||
| 3.3 | Certificate of Incorporation of RERC Corp. | CERC Form 10-K for the year ended December 31, 1997 | 1-13265 | 3(a)(1) | x | |||||||||||||||||||||||||||||||||||||||
| 3.4 | Certificate of Amendment changing the name to Reliant Energy Resources Corp. | CERC Form 10-K for the year ended December 31, 1998 | 1-13265 | 3(a)(3) | x | |||||||||||||||||||||||||||||||||||||||
| 3.5 | Certificate of Amendment changing the name to CenterPoint Energy Resources Corp. | CERC Form 10-Q for the quarter ended June 30, 2003 | 1-13265 | 3(a)(4) | x | |||||||||||||||||||||||||||||||||||||||
| 3.6 | Fifth Amended and Restated Bylaws of CenterPoint Energy | CenterPoint Energy’s Form 8-K dated September 26, 2025 | 1-31447 | 3.1 | x | |||||||||||||||||||||||||||||||||||||||
| 3.7 | Amended and Restated Limited Liability Company Agreement of Houston Electric | Houston Electric’s Form 10-Q for the quarter ended June 30, 2011 | 1-3187 | 3.2 | x | |||||||||||||||||||||||||||||||||||||||
| 3.8 | Bylaws of RERC Corp. | CERC Form 10-K for the year ended December 31, 1997 | 1-13265 | 3(b) | x | |||||||||||||||||||||||||||||||||||||||
| 3.9 | Statement of Resolutions Deleting Shares Designated Series A Preferred Stock of CenterPoint Energy | CenterPoint Energy’s Form 10-K for the year ended December 31, 2011 | 1-31447 | 3(c) | x | |||||||||||||||||||||||||||||||||||||||
4.1 | Amended and Restated Indenture of Mortgage and Deed of Trust dated as of January 1, 2023, between Southern Indiana Gas and Electric Company and Deutsche Bank Trust Company Americas, as Trustee | CenterPoint Energy’s Form 8-K dated February 1, 2023 | 1-31447 | 10.2 | x | |||||||||||||||||||||||||||||||||||||||
4.2 | Fifth Supplemental Indenture dated as of July 1, 2025, between Southern Indiana Gas and Electric Company and Deutsche Bank Trust Company Americas, as Trustee | CenterPoint Energy’s Form 8-K dated July 1, 2025 | 1-31447 | 4.2 | x | |||||||||||||||||||||||||||||||||||||||
†4.3 | Sixth Supplemental Indenture, dated as of October 1, 2025, between Southern Indiana Gas and Electric Company and Deutsche Bank Trust Company Americas, as Trustee | x | ||||||||||||||||||||||||||||||||||||||||||
4.4 | Indenture dated as of July 31, 2025, between CenterPoint Energy, Inc. and The Bank of New York Mellon Trust Company, National Association, as trustee | CenterPoint Energy’s Form 8-K dated July 31, 2025 | 1-31447 | 4.1 | x | |||||||||||||||||||||||||||||||||||||||
4.5 | Junior Subordinated Indenture, dated as of August 14, 2024, between CenterPoint Energy, Inc. and The Bank of New York Mellon Trust Company, National Association, as trustee | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2024 | 1-31447 | 4.1 | x | |||||||||||||||||||||||||||||||||||||||
†4.6 | Supplemental Indenture No. 3, dated as of October 2, 2025, to Exhibit 4.5 | x | ||||||||||||||||||||||||||||||||||||||||||
4.7 | General Mortgage Indenture, dated as of October 10, 2002, between Houston Electric and The Bank of New York Mellon Trust Company, National Association (successor in trust to JPMorgan Chase Bank) | Houston Electric’s Form 10-Q for the quarter ended September 30, 2002 | 1-3187 | 4(j)(1) | x | |||||||||||||||||||||||||||||||||||||||
4.8 | Ninth Supplemental Indenture, dated as of November 12, 2002, to Exhibit 4.7 | CenterPoint Energy’s Form 10-K for the year ended December 31, 2002) | 1-31447 | 4(k)(10) | x | |||||||||||||||||||||||||||||||||||||||
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| Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||||||||||||
4.9 | Twentieth Supplemental Indenture, dated as of December 9, 2008, to Exhibit 4.7 | Houston Electric’s Form 8-K dated January 6, 2009 | 1-3187 | 4.2 | x | |||||||||||||||||||||||||||||||||||||||
4.10 | Thirty-Eighth Supplemental Indenture, dated as of August 7, 2025, to Exhibit 4.7 | Houston Electric’s Form 8-K dated August 5, 2025 | 1-3187 | 4.4 | x | |||||||||||||||||||||||||||||||||||||||
†4.11 | Officer’s Certificate, dated as of August 7, 2025 | x | ||||||||||||||||||||||||||||||||||||||||||
4.12 | Indenture by and among CenterPoint Energy Restoration Bond Company II, LLC, U.S. Bank Trust Company, National Association, as Indenture Trustee, and U.S. Bank National Association, as Securities Intermediary (including the forms of the System Restoration Bonds and the form of Series Supplement), dated as of September 17, 2025 | Houston Electric’s Form 8-K dated September 17, 2025 | 1-3187 | 4.1 | x | |||||||||||||||||||||||||||||||||||||||
4.13 | Series Supplement by and between CenterPoint Energy Restoration Bond Company II, LLC and U.S. Bank Trust Company, National Association, as Indenture Trustee, dated as of September 17, 2025 | Houston Electric’s Form 8-K dated September 17, 2025 | 1-3187 | 4.2 | x | |||||||||||||||||||||||||||||||||||||||
10.1 | Bond Purchase Agreement dated July 1, 2025 among Southern Indiana Gas and Electric Company and the purchasers listed on Schedule B thereto | CenterPoint Energy’s Form 8-K dated July 1, 2025 | 1-31447 | 10.1 | x | |||||||||||||||||||||||||||||||||||||||
10.2 | Jesus Soto, Jr. Offer Letter | CenterPoint Energy’s Form 8-K dated July 21, 2025 | 1-31447 | 10.1 | x | |||||||||||||||||||||||||||||||||||||||
| 10.3 | Amended and Restated CenterPoint Energy 2005 Deferred Compensation Plan, effective January 1, 2009 | CenterPoint Energy’s Form 10-Q for the quarter ended September 30, 2008 | 1-31447 | 10.1 | x | |||||||||||||||||||||||||||||||||||||||
†10.4 | Fifth Amendment to Exhibit 10.3, effective January 1, 2026 | x | ||||||||||||||||||||||||||||||||||||||||||
| †31.1.1 | Rule 13a-14(a)/15d-14(a) Certification of Jason P. Wells | x | ||||||||||||||||||||||||||||||||||||||||||
| †31.1.2 | Rule 13a-14(a)/15d-14(a) Certification of Jesus Soto, Jr. | x | ||||||||||||||||||||||||||||||||||||||||||
| †31.1.3 | Rule 13a-14(a)/15d-14(a) Certification of Jesus Soto, Jr. | x | ||||||||||||||||||||||||||||||||||||||||||
| †31.2.1 | Rule 13a-14(a)/15d-14(a) Certification of Christopher A. Foster | x | ||||||||||||||||||||||||||||||||||||||||||
| †31.2.2 | Rule 13a-14(a)/15d-14(a) Certification of Christopher A. Foster | x | ||||||||||||||||||||||||||||||||||||||||||
| †31.2.3 | Rule 13a-14(a)/15d-14(a) Certification of Christopher A. Foster | x | ||||||||||||||||||||||||||||||||||||||||||
| †32.1.1 | Section 1350 Certification of Jason P. Wells | x | ||||||||||||||||||||||||||||||||||||||||||
| †32.1.2 | Section 1350 Certification of Jesus Soto, Jr. | x | ||||||||||||||||||||||||||||||||||||||||||
| †32.1.3 | Section 1350 Certification of Jesus Soto, Jr. | x | ||||||||||||||||||||||||||||||||||||||||||
| †32.2.1 | Section 1350 Certification of Christopher A. Foster | x | ||||||||||||||||||||||||||||||||||||||||||
| †32.2.2 | Section 1350 Certification of Christopher A. Foster | x | ||||||||||||||||||||||||||||||||||||||||||
| †32.2.3 | Section 1350 Certification of Christopher A. Foster | x | ||||||||||||||||||||||||||||||||||||||||||
| †101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | x | x | x | ||||||||||||||||||||||||||||||||||||||||
| †101.SCH | Inline XBRL Taxonomy Extension Schema Document | x | x | x | ||||||||||||||||||||||||||||||||||||||||
| †101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | x | x | x | ||||||||||||||||||||||||||||||||||||||||
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| Exhibit Number | Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||||||||||||
| †101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | x | x | x | ||||||||||||||||||||||||||||||||||||||||
| †101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | x | x | x | ||||||||||||||||||||||||||||||||||||||||
| †101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | x | x | x | ||||||||||||||||||||||||||||||||||||||||
| †104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | x | x | x | ||||||||||||||||||||||||||||||||||||||||
| * | Schedules to this agreement have been omitted pursuant to Items 601(a)(5) and 601(b)(2) of Regulation S-K. A copy of any omitted schedules will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished. | ||||
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Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| CENTERPOINT ENERGY, INC. | |||||
| CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC | |||||
| CENTERPOINT ENERGY RESOURCES CORP. | |||||
| By: | /s/ Kristie L. Colvin | ||||
Kristie L. Colvin | |||||
Senior Vice President and Chief Accounting Officer | |||||
| (Duly Authorized Officer and Principal Accounting Officer) | |||||
Date: October 23, 2025
81
FAQ
How did CNP perform in Q3 2025?
Q3 2025 revenue was $1,988 million and net income was $293 million, with diluted EPS of $0.45.
What were CenterPoint Energy’s year-to-date results for 2025?
For the nine months ended September 30, 2025, revenue was $6,852 million and net income was $788 million.
How did Houston Electric and CERC perform in Q3 2025?
Houston Electric had revenue of $1,132 million and net income of $231 million. CERC recorded total revenue of $607 million and operating income of $66 million.
What was operating cash flow and capital spending year-to-date?
Operating cash flow was $1,712 million and capital expenditures were $3,389 million for the nine months ended September 30, 2025.
What happened to interest expense in Q3 2025?
Interest expense and other finance charges increased to $238 million from $191 million in the prior-year quarter.
How many CNP shares were outstanding?
There were 652,868,273 shares outstanding as of October 20, 2025.
Centerpoint Energy Inc
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Oct 23, 2025
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CNP Stock Data
26.13B
649.83M
0.45%
100.64%
4.93%
Utilities - Regulated Electric
Electric Services
United States
HOUSTON