Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

CENTERPOINT ENERGY, INC. AND SUBSIDIARIES

CONDENSED STATEMENTS OF CONSOLIDATED INCOME

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions, except per share amounts)
Revenues:
Utility revenues	$	2,137	$	1,929	$	5,097	$	4,835
Non-utility revenues	15		15		30		29
Total	2,152		1,944		5,127		4,864
Expenses:
Utility natural gas, fuel and purchased power	281		300		1,251		1,306
Non-utility cost of revenues, including natural gas	—		2		1		3
Operation and maintenance	742		715		1,508		1,462
Depreciation and amortization	445		370		868		733
Taxes other than income taxes	150		140		307		294
Total	1,618		1,527		3,935		3,798
Operating Income	534		417		1,192		1,066
Other Income (Expense):
Loss on sale	—		—		—		(43)
Gain (loss) on equity securities, net	(151)		43		(106)		122
Gain (loss) on indexed debt securities	148		(42)		104		(121)
Interest expense and other finance charges	(240)		(191)		(505)		(425)
Interest expense on Securitization Bonds	(21)		(4)		(35)		(8)
Other income, net	27		30		56		40
Total	(237)		(164)		(486)		(435)
Income Before Income Taxes	297		253		706		631
Income tax expense	53		55		146		136
Net Income	$	244	$	198	$	560	$	495

Basic Earnings Per Common Share	$	0.37	$	0.30	$	0.85	$	0.76
Diluted Earnings Per Common Share	$	0.37	$	0.30	$	0.84	$	0.76

Weighted Average Common Shares Outstanding, Basic	657		653		655		652
Weighted Average Common Shares Outstanding, Diluted	666		654		663		654

See Combined Notes to Interim Condensed Financial Statements

Table of Contents

CENTERPOINT ENERGY, INC. AND SUBSIDIARIES

CONDENSED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Net income	$	244	$	198	$	560	$	495
Other comprehensive income (loss):
Adjustment to pension and other postretirement plans (net of tax expense of $0, $0, $0, and $0 respectively)	1		1		1		1
Reclassification of deferred gain from cash flow hedges realized in net income (net of tax benefit of $0, $0, $0 and $0)	—		(1)		—		(1)
Total	1		—		1		—
Comprehensive income	$	245	$	198	$	561	$	495

See Combined Notes to Interim Condensed Financial Statements

Table of Contents

CENTERPOINT ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	June 30, 2026		December 31, 2025
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents ($45 and $34 related to VIEs, respectively)	$	49	$	38
Investment in equity securities	404		510
Accounts receivable ($27 and $6 related to VIEs, respectively), less allowance for credit losses of $28 and $25, respectively	777		806
Accrued unbilled revenues ($14 and $4 related to VIEs, respectively), less allowance for credit losses of $1 and $2, respectively	371		600
Materials and supplies	609		517
Natural gas and coal inventory	138		215
Taxes receivable	114		36
Current assets held for sale	2,617		2,669
Regulatory assets	255		170
Prepaid expenses and other current assets ($18 and $6 related to VIEs, respectively)	120		140
Total current assets	5,454		5,701
Property, Plant and Equipment, Net:
Property, plant and equipment	46,512		44,676
Less: accumulated depreciation and amortization	11,129		10,620
Property, plant and equipment, net	35,383		34,056
Other Assets:
Goodwill	3,550		3,550
Regulatory assets ($1,802 and $683 related to VIEs, respectively)	3,619		3,005
Other non-current assets	244		222
Total other assets	7,413		6,777
Total Assets	$	48,250	$	46,534

See Combined Notes to Interim Condensed Financial Statements

Table of Contents

CENTERPOINT ENERGY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS – (continued)

(Unaudited)


	June 30, 2026		December 31, 2025
	(in millions, except par value and shares)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings	$	—	$	500
Current portion of VIE Securitization Bonds long-term debt	120		41

Current portion of other long-term debt	1,616		1,873
Indexed debt securities derivative	451		564
Accounts payable	1,098		1,300
Taxes accrued	217		344
Interest accrued ($21 and $7 related to VIEs, respectively)	353		313
Dividends accrued	—		150
Customer deposits ($8 and $2 related to VIEs, respectively)	94		89
Current liabilities held for sale	441		520
Other current liabilities ($0 and $15 related to VIEs, respectively)	467		566
Total current liabilities	4,857		6,260
Other Liabilities:
Deferred income taxes, net	4,855		4,602
Benefit obligations	476		491
Regulatory liabilities	2,633		2,692
Other non-current liabilities	803		770
Total other liabilities	8,767		8,555
Long-term Debt, Net:
VIE Securitization Bonds, net	1,746		664
Other long-term debt, net	21,160		19,902
Total long-term debt, net	22,906		20,566
Commitments and Contingencies (Note 11)
Shareholders’ Equity:
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 658,700,905 shares and 652,869,575 shares outstanding, respectively	6		6
Additional paid-in capital	9,288		9,130
Retained earnings	2,451		2,043
Accumulated other comprehensive loss	(25)		(26)
Total shareholders’ equity	11,720		11,153
Total Liabilities and Shareholders’ Equity	$	48,250	$	46,534

See Combined Notes to Interim Condensed Financial Statements

Table of Contents

CENTERPOINT ENERGY, INC. AND SUBSIDIARIES

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

(Unaudited)


	Six Months Ended June 30,
	2026		2025
	(in millions)
Cash Flows from Operating Activities:
Net income	$	560	$	495
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	868		733
Deferred income taxes	220		74
Loss on sale	—		43
(Gain) loss on equity securities	106		(122)
(Gain) loss on indexed debt securities	(104)		121
Pension and postretirement contributions	(40)		(87)
Changes in other assets and liabilities:
Accounts receivable and unbilled revenues, net	349		214
Inventory	(8)		24
Accounts payable	(330)		(330)
Other current assets	(193)		118
Other current liabilities	(235)		(251)
Other non-current assets	(130)		(9)
Other non-current liabilities	(7)		2
Other operating activities, net	4		(55)
Net cash provided by operating activities	1,060		970
Cash Flows from Investing Activities:
Capital expenditures	(2,568)		(2,167)
Payment for asset acquisition	—		(357)
Proceeds from divestitures	—		1,219
Other investing activities, net	41		(36)
Net cash used in investing activities	(2,527)		(1,341)
Cash Flows from Financing Activities:
Decrease in short-term borrowings, net	—		(3)
Proceeds from (payments of) commercial paper, net	(502)		1,056
Proceeds from long-term debt and term loans, net	3,441		735
Payments of long-term debt and term loans, including make-whole premiums	(1,271)		(1,030)
Payment of debt issuance costs	(24)		(12)
Payment of dividends on Common Stock	(302)		(287)
Proceeds from issuances of Common Stock, net	165		—
Other financing activities, net	(18)		(19)
Net cash provided by financing activities	1,489		440
Net Increase in Cash, Cash Equivalents and Restricted Cash	22		69
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	49		30
Cash, Cash Equivalents and Restricted Cash at End of Period	$	71	$	99

Supplemental Disclosure of Cash Flow Information
Cash paid for interest, net of capitalized interest	$	510	$	487
Cash paid (refunds received) for income taxes, net	11		(5)

Supplemental Disclosure of Non-cash Transactions
Accounts payable related to capital expenditures	$	451	$	309

See Combined Notes to Interim Condensed Financial Statements

Table of Contents

CENTERPOINT ENERGY, INC. AND SUBSIDIARIES

CONDENSED STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
	(in millions of dollars and shares, except authorized shares and par value)
Common Stock, $0.01 par value; authorized 1,000,000,000 shares
Balance, beginning of period	653	$	6	652	$	6	653	$	6	652	$	6
Issuances of Common Stock	5	—		—	—		5	—		—	—
Issuances related to benefit and investment plans	1	—		1	—		1	—		1	—
Balance, end of period	659	6		653	6		659	6		653	6
Additional Paid-in-Capital
Balance, beginning of period		9,110			9,097			9,130			9,105
Issuances of Common Stock, net of issuance costs		165			—			165			—
Issuances related to benefit and investment plans		13			10			(7)			2
Balance, end of period		9,288			9,107			9,288			9,107
Retained Earnings
Balance, beginning of period		2,359			1,869			2,043			1,572
Net income		244			198			560			495
Common Stock dividends declared (see Note 15)		(152)			(144)			(152)			(144)
Balance, end of period		2,451			1,923			2,451			1,923
Accumulated Other Comprehensive Loss
Balance, beginning of period		(26)			(17)			(26)			(17)
Other comprehensive income		1			—			1			—
Balance, end of period		(25)			(17)			(25)			(17)
Total Shareholders’ Equity		$	11,720		$	11,019		$	11,720		$	11,019

See Combined Notes to Interim Condensed Financial Statements

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 June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Revenues	$	1,167	$	1,008	$	2,158	$	1,892
Expenses:
Operation and maintenance	492		482		964		930
Depreciation and amortization	245		196		477		375
Taxes other than income taxes	82		78		163		153
Total	819		756		1,604		1,458
Operating Income	348		252		554		434
Other Income (Expense):
Interest expense and other finance charges	(99)		(90)		(199)		(176)
Interest expense on Securitization Bonds	(18)		—		(28)		—
Other income, net	19		15		42		23
Total	(98)		(75)		(185)		(153)
Income Before Income Taxes	250		177		369		281
Income tax expense	48		36		71		56
Net Income	$	202	$	141	$	298	$	225

See Combined Notes to Interim Condensed Financial Statements

Table of Contents

CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC AND SUBSIDIARIES

(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	June 30, 2026		December 31, 2025
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents ($39 and $25 related to VIEs, respectively)	$	39	$	25
Accounts and notes receivable, net ($26 and $5 related to VIEs, respectively), less allowance for credit losses of $2 and $2, respectively	440		326
Accrued unbilled revenues ($13 and $3 related to VIEs, respectively)	203		169
Accounts and notes receivable–affiliated companies	184		4
Materials and supplies	442		357
Prepaid expenses and other current assets ($16 and $4 related to VIEs, respectively)	35		49
Total current assets	1,343		930
Property, Plant and Equipment, Net:
Property, plant and equipment	24,820		23,947
Less: accumulated depreciation and amortization	5,187		4,944
Property, plant and equipment, net	19,633		19,003
Other Assets:
Regulatory assets ($1,508 and $384 related to VIEs, respectively)	2,254		1,612
Other non-current assets	50		33
Total other assets	2,304		1,645
Total Assets	$	23,280	$	21,578




LIABILITIES AND MEMBER’S EQUITY
Current Liabilities:
Short-term borrowings	$	—	$	500
Current portion of VIE Securitization Bonds long-term debt	106		27
Current portion of other long-term debt	600		300
Accounts payable	596		579
Accounts and notes payable–affiliated companies	104		151
Taxes accrued	139		265
Interest accrued ($19 and $5 related to VIEs, respectively)	169		133
Other current liabilities ($8 and $17 related to VIEs, respectively)	219		198
Total current liabilities	1,933		2,153
Other Liabilities:
Deferred income taxes, net	1,738		1,609
Benefit obligations	49		38
Regulatory liabilities	765		850
Other non-current liabilities	145		144
Total other liabilities	2,697		2,641
Long-term Debt, net:
VIE Securitization Bonds, net	1,459		369
Other long-term debt, net	9,378		8,883
Total long-term debt, net	10,837		9,252
Commitments and Contingencies (Note 11)
Member’s Equity:
Common stock	—		—
Additional paid-in capital	5,683		5,683
Retained earnings	2,132		1,851
Accumulated other comprehensive loss	(2)		(2)
Total member’s equity	7,813		7,532
Total Liabilities and Member’s Equity	$	23,280	$	21,578

See Combined Notes to Interim Condensed Financial Statements

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)


	Six Months Ended June 30,
	2026		2025
	(in millions)
Cash Flows from Operating Activities:
Net income	$	298	$	225
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	477		375
Deferred income taxes	113		20
Changes in other assets and liabilities:
Accounts receivable and unbilled revenues, net	(148)		(93)
Accounts receivable/payable–affiliated companies	9		(51)
Inventory	(78)		—
Accounts payable	49		(135)
Other current assets	26		21
Other current liabilities	(100)		(19)
Other non-current assets	(110)		(198)
Other non-current liabilities	(53)		(18)
Other operating activities, net	(23)		(10)
Net cash provided by operating activities	460		117
Cash Flows from Investing Activities:
Capital expenditures	(1,686)		(1,308)
(Increase) decrease in notes receivable–affiliated companies	(182)		368
Other investing activities, net	46		59
Net cash used in investing activities	(1,822)		(881)
Cash Flows from Financing Activities:
Proceeds from long-term debt and term loan, net	1,991		500
Payments of long-term debt	(516)		—
Increase (decrease) in notes payable–affiliated companies	(54)		453
Payment of debt issuance costs	(16)		(5)
Dividend to parent	(17)		(182)
Other financing activities, net	—		(1)
Net cash provided by financing activities	1,388		765
Net Increase in Cash, Cash Equivalents and Restricted Cash	26		1
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	29		14
Cash, Cash Equivalents and Restricted Cash at End of Period	$	55	$	15

Supplemental Disclosure of Cash Flow Information
Cash paid for interest, net of capitalized interest	$	202	$	176
Cash paid for income taxes, net	8		29

Supplemental Disclosure of Non-cash Transactions
Accounts payable related to capital expenditures	$	218	$	224

See Combined Notes to Interim Condensed Financial Statements

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 June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
	(in millions, except share amounts)
Common Stock
Balance, beginning of period	1,000	$	—	1,000	$	—	1,000	$	—	1,000	$	—
Balance, end of period	1,000	—		1,000	—		1,000	—		1,000	—
Additional Paid-in-Capital
Balance, beginning of period		5,683			5,589			5,683			5,589
Balance, end of period		5,683			5,589			5,683			5,589
Retained Earnings
Balance, beginning of period		1,930			1,565			1,851			1,571
Net income		202			141			298			225
Dividend to parent		—			(92)			(17)			(182)
Balance, end of period		2,132			1,614			2,132			1,614
Accumulated Other Comprehensive Loss
Balance, beginning of period		(2)			(1)			(2)			(1)
Balance, end of period		(2)			(1)			(2)			(1)
Total Member’s Equity		$	7,813		$	7,202		$	7,813		$	7,202

See Combined Notes to Interim Condensed Financial Statements

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 June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Revenues:
Utility revenues	$	747	$	719	$	2,432	$	2,495
Non-utility revenues	13		12		25		24
Total	760		731		2,457		2,519
Expenses:
Utility natural gas	211		231		1,076		1,140
Non-utility cost of revenues, including natural gas	—		2		1		3
Operation and maintenance	203		187		452		443
Depreciation and amortization	151		131		293		273
Taxes other than income taxes	64		56		134		129
Total	629		607		1,956		1,988
Operating Income	131		124		501		531
Other Income (Expense):
Gain on sale	—		—		—		52
Interest expense and other finance charges	(44)		(39)		(110)		(95)
Other income, net	6		12		9		14
Total	(38)		(27)		(101)		(29)
Income Before Income Taxes	93		97		400		502
Income tax expense	11		11		88		111
Net Income	$	82	$	86	$	312	$	391

See Combined Notes to Interim Condensed Financial Statements

Table of Contents

CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES

(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	June 30, 2026		December 31, 2025
	(in millions)
ASSETS
Current Assets:

Accounts receivable, less allowance for credit losses of $23 and $19, respectively	$	261	$	391
Accrued unbilled revenues, less allowance for credit losses of $0 and $2, respectively	116		372
Accounts receivable–affiliated companies	13		6
Materials and supplies	119		114
Natural gas inventory	101		165

Current assets held for sale	2,443		2,495
Regulatory assets	226		169
Prepaid expenses and other current assets	32		48
Total current assets	3,311		3,760
Property, Plant and Equipment, Net:
Property, plant and equipment	15,366		14,540
Less: accumulated depreciation and amortization	4,013		3,820
Property, plant and equipment, net	11,353		10,720
Other Assets:
Goodwill	1,242		1,242
Regulatory assets	458		479
Other non-current assets	64		63
Total other assets	1,764		1,784
Total Assets	$	16,428	$	16,264

See Combined Notes to Interim Condensed Financial Statements

Table of Contents

CENTERPOINT ENERGY RESOURCES CORP. AND SUBSIDIARIES

(AN INDIRECT, WHOLLY-OWNED SUBSIDIARY OF CENTERPOINT ENERGY, INC.)

CONDENSED CONSOLIDATED BALANCE SHEETS – (continued)

(Unaudited)


	June 30, 2026		December 31, 2025
	(in millions)
LIABILITIES AND STOCKHOLDER’S EQUITY
Current Liabilities:

Current portion of long-term debt	$	—	$	60
Accounts payable	368		480
Accounts and notes payable–affiliated companies	92		394
Taxes accrued	96		165
Interest accrued	74		74
Customer deposits	76		76
Current liabilities held for sale	441		520
Other current liabilities	155		242
Total current liabilities	1,302		2,011
Other Liabilities:
Deferred income taxes, net	1,549		1,426
Benefit obligations	61		62
Regulatory liabilities	1,643		1,616
Other non-current liabilities	334		317
Total other liabilities	3,587		3,421
Long-term Debt, Net	5,069		4,657
Commitments and Contingencies (Note 11)
Stockholder’s Equity:
Common stock	—		—
Additional paid-in capital	4,519		4,519
Retained earnings	1,936		1,641
Accumulated other comprehensive income	15		15
Total stockholder’s equity	6,470		6,175
Total Liabilities and Stockholder’s Equity	$	16,428	$	16,264

See Combined Notes to Interim Condensed Financial Statements

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)


	Six Months Ended June 30,
	2026		2025
	(in millions)
Cash Flows from Operating Activities:
Net income	$	312	$	391
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	293		273
Deferred income taxes	110		38
Gain on sale	—		(52)
Pension and postretirement contributions	(4)		—
Changes in other assets and liabilities:
Accounts receivable and unbilled revenues, net	476		338
Accounts receivable/payable–affiliated companies	(18)		(24)
Inventory	59		24
Accounts payable	(185)		(89)
Other current assets	(100)		112
Other current liabilities	(166)		(138)
Other non-current assets	(19)		214
Other non-current liabilities	2		(33)
Other operating activities, net	5		(29)
Net cash provided by operating activities	765		1,025
Cash Flows from Investing Activities:
Capital expenditures	(836)		(665)
Increase in notes receivable–affiliated companies	—		(1)
Proceeds from divestiture	—		1,219
Other investing activities, net	27		(98)
Net cash used in investing activities	(809)		455
Cash Flows from Financing Activities:
Decrease in short-term borrowings, net	—		(3)
Payments of commercial paper, net	(206)		(407)
Proceeds from long-term debt and term loan, net	800		—
Payments of long-term debt and term loan	(248)		(421)
Decrease in notes payable-affiliated companies	(291)		—

Dividends to parent	(17)		(650)

Other financing activities, net	6		(1)
Net cash provided by (used in) financing activities	44		(1,482)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	—		(2)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	—		2
Cash, Cash Equivalents and Restricted Cash at End of Period	$	—	$	—

Supplemental Disclosure of Cash Flow Information
Cash paid for interest, net of capitalized interest	$	226	$	113
Cash paid (refunds received) for income taxes, net	3		(1)

Supplemental Disclosure of Non-cash Transactions
Accounts payable related to capital expenditures	$	132	$	82

See Combined Notes to Interim Condensed Financial Statements

Table of Contents

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 June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
	(in millions, except share amounts)
Common Stock
Balance, beginning of period	1,000	$	—	1,000	$	—	1,000	$	—	1,000	$	—
Balance, end of period	1,000	—		1,000	—		1,000	—		1,000	—
Additional Paid-in-Capital
Balance, beginning of period		4,519			4,519			4,519			4,519
Balance, end of period		4,519			4,519			4,519			4,519
Retained Earnings
Balance, beginning of period		1,869			1,940			1,641			1,732
Net income		82			86			312			391
Dividend to parent		(15)			(553)			(17)			(650)
Balance, end of period		1,936			1,473			1,936			1,473
Accumulated Other Comprehensive Income
Balance, beginning of period		15			17			15			17

Balance, end of period		15			17			15			17
Total Stockholder’s Equity		$	6,470		$	6,009		$	6,470		$	6,009

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. No Registrant makes any 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 2025 Form 10-K. The Combined Notes to the 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. Additionally, certain amounts from prior years have been reclassified to conform to the current presentation. 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 June 30, 2026, CenterPoint Energy’s indirect, wholly-owned operating subsidiaries included:

Houston Electric, which provides electric transmission service to transmission service customers in the ERCOT region and distribution service to REPs serving the Texas Gulf Coast area that includes the city of Houston;
CERC Corp., which (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, which 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 June 30, 2026, 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.

Principles of Consolidation. The accompanying Interim Condensed Financial Statements are 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 June 30, 2026, CenterPoint Energy, Houston Electric and SIGECO had VIEs including Transition Bond Company IV, Restoration Bond Company II, Restoration Bond Company III and the SIGECO Securitization Subsidiary, which are consolidated. The consolidated VIEs are wholly-owned, bankruptcy-remote, special purpose entities that were formed solely for

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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 Restoration Bond Company II, Restoration Bond Company III and the SIGECO

Securitization Subsidiary are payable only from and secured by 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 2025 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 for the periods presented:


	June 30, 2026						December 31, 2025
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Cash and cash equivalents (1)	$	49	$	39	$	—	$	38	$	25	$	—
Restricted cash included in Prepaid expenses and other current assets (2)	22		16		—		11		4		—
Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows	$	71	$	55	$	—	$	49	$	29	$	—

(1)Cash and cash equivalents related to VIEs as of June 30, 2026 and December 31, 2025 included $45 million and $34 million, respectively, at CenterPoint Energy and $39 million and $25 million, respectively, at Houston Electric.

(2)Restricted cash primarily related to accounts established by CenterPoint Energy and Houston Electric to collateralize the Securitization Bonds issued by the Bond Companies and the SIGECO Securitization Subsidiary. These restricted cash accounts are not available for withdrawal until the maturity of the Securitization Bonds.

Recent Accounting Pronouncements

In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818), which establishes recognition, measurement, presentation, and disclosure requirements for environmental credits and related environmental credit obligations. The guidance is effective for public business entities for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. The requirements will be applied on a retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period of adoption. Early adoption is permitted. The Registrants are currently assessing the impact of adopting this standard on their respective consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, 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.

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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.

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) Held for Sale, Divestiture and Acquisition (CenterPoint Energy and CERC)

Held for Sale. 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, which is comprised of the following: (i) $1.42 billion in cash payable to CERC Corp. upon closing of the 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 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 transaction and payable to CERC Corp. as provided by the terms and conditions of the Seller Note Agreement. The transaction is expected to close in the fourth quarter of 2026, subject to the satisfaction of 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 transaction is not subject to a financing condition and will not close prior to October 1, 2026 without the consent of CERC Corp. As of June 30, 2026, the assets included approximately 6,000 miles of transmission and distribution pipeline in Ohio serving approximately 334,000 metered customers. The Ohio natural gas LDC business is reflected in CenterPoint Energy’s Natural Gas reportable segment and CERC’s single reportable segment. A filing was made on January 9, 2026, notifying the PUCO of the execution of the Ohio Securities Purchase Agreement. The PUCO issued a Finding and Order on June 24, 2026 accepting the Joint Notice of Transaction subject to certain conditions and requirements. No applications for rehearing were filed by the relevant deadline, and as such, the Finding and Order has become final and non-appealable.

In October 2025, certain assets and liabilities representing the Ohio natural gas LDC business met the held for sale criteria. The assets and liabilities of the Ohio natural gas LDC business classified as held for sale in CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets, as applicable, included the following for the periods presented:

CenterPoint Energy


	June 30, 2026		December 31, 2025
	(in millions)
Accounts receivable, net	$	47	$	47
Accrued unbilled revenues	15		45
Materials and supplies	10		9
Property, plant and equipment, net	1,793		1,803
Goodwill	393		393
Regulatory assets	359		372
Total current assets held for sale	$	2,617	$	2,669

Accounts payable	$	33	$	100
Taxes accrued	36		37
Customer deposits	4		5
Other current liabilities	2		8
Regulatory liabilities	324		328
Other non-current liabilities	42		42
Total current liabilities held for sale	$	441	$	520

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CERC


	June 30, 2026		December 31, 2025
	(in millions)
Accounts receivable, net	$	47	$	47
Accrued unbilled revenues	15		45
Materials and supplies	10		9
Property, plant and equipment, net	1,793		1,803
Goodwill	219		219
Regulatory assets	359		372
Total current assets held for sale	$	2,443	$	2,495

Accounts payable	$	33	$	100
Taxes accrued	36		37
Customer deposits	4		5
Other current liabilities	2		8
Regulatory liabilities	324		328
Other non-current liabilities	42		42
Total current liabilities held for sale	$	441	$	520

Although the Ohio natural gas LDC business meets the held for sale criteria, its announced disposal does not represent a strategic shift for CenterPoint Energy and CERC as both will retain significant operations in, and will continue to invest in, their natural gas businesses. Therefore, the assets and liabilities, as well as the related income and expenses, associated with this transaction were not reflected as discontinued operations on CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets and Condensed Statements of Consolidated Income, as applicable. Since the depreciation on the assets of the Ohio natural gas LDC business will continue to be reflected in revenues through customer rates until the expected closing of the transaction and will be reflected in the carryover basis of the rate-regulated assets once sold, CenterPoint Energy and CERC will continue to record depreciation on those assets through the expected closing of the transaction.

The pre-tax income for the Ohio natural gas LDC business, excluding corporate allocations, included in CenterPoint Energy’s and CERC’s Condensed Statements of Consolidated Income is as follows for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Income Before Income Taxes	$	20	$	19	$	52	$	54

Divestiture of Louisiana and Mississippi natural gas LDC 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. 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 more than 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.

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 six months ended June 30, 2025. CenterPoint Energy and CERC received $6 million from the LAMS Buyers related to working capital and other customary adjustments set forth in the LAMS Asset Purchase Agreement during the six months ended June 30, 2026.

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 was $48 million during the six months ended June 30, 2025.

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

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written notice. As of June 30, 2026, substantially all services under the Transition Services Agreement have been terminated.

CenterPoint Energy’s and CERC’s charges to the LAMS Buyers for reimbursement of transition services costs were $6 million during the three months ended June 30, 2026 and $18 million during the six months ended June 30, 2026. 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 $4 million and $9 million as of June 30, 2026 and December 31, 2025, respectively.

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. On February 3, 2025, the IURC approved Indiana Electric’s request to convey PTCs to customers through the new tax adjustment rider. 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.

(4) Revenue

The following tables disaggregate revenues by reportable segment and major source for the periods presented:

CenterPoint Energy


	Three Months Ended June 30, 2026
	Electric		Natural Gas		Corporate and Other		Total
	(in millions)
Revenue from contracts with customers	$	1,381	$	775	$	3	$	2,159
Other (1)	(9)		2		1		(6)
Eliminations	—		—		(1)		(1)
Total revenues	$	1,372	$	777	$	3	$	2,152


	Three Months Ended June 30, 2025
	Electric		Natural Gas		Corporate and Other		Total
	(in millions)
Revenue from contracts with customers	$	1,195	$	756	$	2	$	1,953
Other (1)	(4)		(5)		1		(8)
Eliminations	—		(1)		—		(1)
Total revenues	$	1,191	$	750	$	3	$	1,944


	Six Months Ended June 30, 2026
	Electric		Natural Gas		Corporate and Other		Total
	(in millions)
Revenue from contracts with customers	$	2,594	$	2,535	$	5	$	5,134
Other (1)	(13)		7		2		(4)
Eliminations	—		(1)		(2)		(3)
Total revenues	$	2,581	$	2,541	$	5	$	5,127


	Six Months Ended June 30, 2025
	Electric		Natural Gas		Corporate and Other		Total
	(in millions)
Revenue from contracts with customers	$	2,267	$	2,639	$	3	$	4,909
Other (1)	(10)		(35)		2		(43)
Eliminations	—		(2)		—		(2)
Total revenues	$	2,257	$	2,602	$	5	$	4,864

(1)Primarily consists of the impact of ARPs and leases.

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Houston Electric


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Revenue from contracts with customers	$	1,180	$	1,014	$	2,182	$	1,906
Other (1)	(13)		(6)		(24)		(14)
Total revenues	$	1,167	$	1,008	$	2,158	$	1,892

(1)Primarily consists of the impact of ARPs and leases.

CERC


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Revenue from contracts with customers	$	759	$	736	$	2,454	$	2,555
Other (1)	1		(5)		3		(36)
Total revenues	$	760	$	731	$	2,457	$	2,519

(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) (2)		Accrued Unbilled Revenues (2)
	(in millions)
Opening balance as of December 31, 2025	$	722	$	600
Closing balance as of June 30, 2026	701		371
Decrease	$	(21)	$	(229)

(1)Excludes balances related to customer or vendor cost reimbursements and insurance that are not attributable to revenues from contracts with customers.

(2)The opening balance as of December 31, 2025 and the closing balance as of June 30, 2026 also excluded amounts classified as held for sale associated with the Ohio natural gas LDC business.

Houston Electric


	Accounts Receivable (1)		Accrued Unbilled Revenues
	(in millions)
Opening balance as of December 31, 2025	$	300	$	169
Closing balance as of June 30, 2026	406		203
Increase	$	106	$	34

(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) (2)		Accrued Unbilled Revenues (2)
	(in millions)
Opening balance as of December 31, 2025	$	357	$	372
Closing balance as of June 30, 2026	239		116
Decrease	$	(118)	$	(256)

(1)Excludes balances related to customer or vendor cost reimbursements and insurance that are not attributable to revenues from contracts with customers.

(2)The opening balance as of December 31, 2025 and the closing balance as of June 30, 2026 also excluded amounts classified as held for sale associated with the Ohio natural gas LDC business.

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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 for the periods presented:

Pension Benefits (CenterPoint Energy)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Service cost (1)	$	6	$	6	$	13	$	12
Interest cost (2)	19		19		38		39
Expected return on plan assets (2)	(20)		(20)		(41)		(40)
Amortization of net loss (2)	8		7		15		14
Settlement income	(1)		—		(1)		—
Net periodic cost	$	12	$	12	$	24	$	25

(1)Included in Operation and maintenance expense in CenterPoint 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 June 30,
	2026						2025
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)

Interest cost (1)	$	4	$	2	$	1	$	4	$	2	$	1
Expected return on plan assets (1)	(2)		(1)		(1)		(2)		(1)		(1)
Amortization of prior service cost (credit) (1)	—		(2)		—		—		(1)		—
Amortization of net loss (1)	(2)		(1)		—		(3)		(2)		(1)
Net periodic cost (benefit)	$	—	$	(2)	$	—	$	(1)	$	(2)	$	(1)

	Six Months Ended June 30,
	2026						2025
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)

Interest cost (1)	$	7	$	3	$	2	$	7	$	3	$	2
Expected return on plan assets (1)	(3)		(2)		(1)		(3)		(2)		(1)
Amortization of prior service cost (credit) (1)	(1)		(3)		—		(1)		(2)		1
Amortization of net loss (1)	(4)		(2)		—		(5)		(3)		(2)
Net periodic cost (benefit)	$	(1)	$	(4)	$	1	$	(2)	$	(4)	$	—

(1)Included in Other income, net in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of regulatory deferrals.

Benefit Plan Contributions

The table below reflects the contributions made to the pension and postretirement benefit plans during the period presented:


	Three Months Ended June 30, 2026						Six Months Ended June 30, 2026
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Pension plans	$	18	$	—	$	—	$	34	$	—	$	—
Postretirement benefit plans	2		—		2		6		—		4

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(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:


	June 30, 2026						December 31, 2025
	CenterPoint Energy (1)		Houston Electric (2)		CERC (3)		CenterPoint Energy (1)		Houston Electric (2)		CERC (3)
	(in millions)
Unrecognized equity return	$	300	$	110	$	124	$	310	$	135	$	111

(1)In addition to the amounts described in (2) and (3) below, primarily includes CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments in SIGECO.

(2)Primarily includes Houston Electric’s allowed equity return on TEEEF costs and certain storm restoration costs.

(3)Primarily includes 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 for the period presented:


	Three Months Ended June 30,
	2026						2025
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Allowed equity return recognized	$	35	$	33	$	1	$	7	$	5	$	1

	Six Months Ended June 30,
	2026						2025
	CenterPoint Energy		Houston Electric		CERC		CenterPoint Energy		Houston Electric		CERC
	(in millions)
Allowed equity return recognized	$	47	$	43	$	2	$	9	$	6	$	2

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 Indiana and Texas, and continue to recover the natural gas cost in Minnesota. As of June 30, 2026 and December 31, 2025, each of CenterPoint Energy and CERC had recorded current regulatory assets of $35 million and $70 million associated with the February 2021 Winter Storm Event.

See Note 11(c) for further information regarding litigation related to the February 2021 Winter Storm Event.

Texas Public Securitization

The Texas Natural Gas Securitization Finance Corporation (TNGSFC) issued customer rate relief bonds in March 2023, and on March 23, 2023, CenterPoint Energy and CERC, collectively, received approximately $1.1 billion in cash proceeds from

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the issuance and sale of the state’s customer rate relief bonds. As CenterPoint Energy and CERC have no future financial obligations for the repayment of the state’s customer rate relief bonds, the customer rate relief bonds are not recorded on CenterPoint Energy’s or CERC’s balance sheets. The state’s customer rate relief bonds are backed in part by customer rate relief property, including customer rate relief charges, which are non-bypassable uniform monthly volumetric charges to be paid by all existing and future sales customers as a component of each regulated utility’s gas cost, separate from their base rate. CERC acts as a collection agent, whose duties include management, servicing and administration of a portion of the customer rate relief property which is associated with the customer rate relief charge imposed on customers of CERC under the guidance and direction from the Railroad Commission. The TNGSFC, and not CenterPoint Energy or CERC, is the owner of the customer rate relief property. The assets of the TNGSFC are not available to pay creditors of CenterPoint Energy, CERC, or their affiliates. While the customer rate relief charges will be included by CERC in their monthly billings, the billing amount is established by the Railroad Commission. CERC will remit all customer rate relief charges collected to the financing entity set up by the Railroad Commission. Therefore, the collection and servicing of customer rate relief charges have no impact on the respective Statements of Consolidated Income of CenterPoint Energy or CERC.

Indiana Electric Securitization of Generation Retirements (CenterPoint Energy)

On June 29, 2023, in connection with the securitization of 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 and used a portion of the net proceeds from the issuance to purchase the securitization property from SIGECO.

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, such qualified costs. 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 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.

TEEEF (CenterPoint Energy and Houston Electric)

Pursuant to Texas legislation passed in 2021, Houston Electric entered into two leases for medium (5.7 MW) and large (27 MW to 32 MW) TEEEF. 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. 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 $72 million and $78 million as of June 30, 2026 and December 31, 2025, 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 $86 million and $123 million as of June 30, 2026 and December 31, 2025, respectively.

Right of use finance lease assets, such as assets acquired under the long-term leases, were evaluated for impairment under the long-lived asset impairment model by assessing if a capital disallowance from a regulator was probable through monitoring the outcome of rate cases and other proceedings until the TEEEF finance lease assets were taken out of the rate base of the regulated utility. Following removal of the large and medium TEEEF units from the rate base of the regulated utility, as proposed in the proceeding further described below, such TEEEF units are subject to impairment testing under Accounting Standards Codification 360. 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 during the three and six months ended June 30, 2026 or 2025.

Effective January 1, 2023, all medium and large TEEEF were leased under the long-term lease agreement. The long-term lease agreement includes up to 519 MW of TEEEF, all of which were delivered as of December 31, 2022, triggering lease commencement at delivery, with an initial term ending in 2029 for all such TEEEF leases. The remaining finance lease liability associated with the commenced long-term TEEEF agreement was not significant as of June 30, 2026 and December 31, 2025 and relates to removal costs that will be incurred at the end of the lease term. As of June 30, 2026, Houston Electric had secured a first lien on the assets leased under the prepayment agreement.

On December 19, 2024, Houston Electric announced a proposal to release its 15 large TEEEF units to ERCOT at CPS Energy facilities to serve the greater San Antonio region for a period of up to two years. On April 18, 2025, a proposal was filed

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with the PUCT (Docket 57980) seeking approval of the aforementioned release to ERCOT and CPS Energy, 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 (the “ERCOT Transaction”), subject to PUCT approval in Docket 57980, to release the 15 large TEEEF units to the San Antonio area until March 2027 unless terminated earlier pursuant to the provisions of the ERCOT Transaction, 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 complete one or more future transactions involving the large TEEEF units; because the TEEEF units would not be available to serve customers during such time, Houston Electric 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. On October 13, 2025, intervenor testimony was filed. On November 21, 2025, Houston Electric filed supplemental testimony proposing removal of its five medium TEEEF units from its fleet and rates. On June 26, 2026, Houston Electric filed a stipulation and agreement supporting removal of the 15 large units and 5 medium units effective May 1, 2025 and January 1, 2026, respectively, an agreed motion for interim rates effective August 15, 2026, settlement testimony, and agreed motion to admit evidence and remand proceeding back to the PUCT. On June 29, 2026, SOAH granted the requested motions and remanded the proceeding to the PUCT. If approved by the PUCT, the current revenue requirement will be reduced by $112 million.

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 Houston Electric’s 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 and medium TEEEF units approved in Docket 53442. On June 29, 2025, Order No. 9 was issued to abate this complaint case until a final order is issued in Docket 57980.

Pursuant to Texas legislation passed in 2023, Houston Electric has entered into contractual arrangements to facilitate access to small (200 kW to 1,250 kW) TEEEF units. In January, 2025, the PUCT adopted the TEEEF Rule, which refined the scope of TEEEF filings that can be made pursuant to applicable Texas regulations, and in February 2026, the TEEEF Rule was amended pursuant to Texas Senate Bill 231 to, among other things, prohibit TDUs from entering into, renewing or extending leases for TEEEF units unless such units have a maximum generation capacity of 5 or fewer MW and are rapidly deployable. 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, with exceptions for emergency situations or if the lease includes a provision allowing for the alteration of the lease based on applicable PUCT orders or rules. 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 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 December 3, 2025, Houston Electric filed a stipulation and settlement agreement. On March 12, 2026, the PUCT issued an order authorizing Houston Electric to enter into a lease 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 a term of 36 months.

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.

In September 2025, Restoration Bond Company II issued approximately $401.5 million aggregate principal amount of the Restoration Bond Company II Securitization Bonds and used a portion of the net proceeds from the issuance to purchase the system restoration property, which was composed of system restoration costs previously classified within Regulatory assets and Property, plant and equipment on Houston Electric’s Condensed Consolidated Balance Sheets, from Houston Electric. Subsequent to the issuance of the Restoration Bond Company II Securitization Bonds, the system restoration property is reflected within Regulatory Assets on Houston Electric’s Condensed Consolidated Balance Sheets.

The Restoration Bond Company II Securitization 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 associated with the May 2024 Storm Events as authorized by the PUCT. 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 Restoration Bond Company II Securitization Bonds except to remit

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collections of system restoration charges as set forth in a servicing agreement between Houston Electric and Restoration Bond Company II.

Hurricane Beryl and Subsequent Storm Events

Houston Electric’s electric delivery system suffered significant damage as a result of Hurricane Beryl and certain other

significant storms. 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.

In February 2026, Restoration Bond Company III issued approximately $1.193 billion aggregate principal amount of the Restoration Bond Company III Securitization Bonds and used a portion of the net proceeds from the issuance to purchase the system restoration property, which was composed of system restoration costs previously classified within Regulatory assets and Property, plant and equipment on Houston Electric’s Condensed Consolidated Balance Sheets, from Houston Electric. Subsequent to the issuance of the Restoration Bond Company III Securitization Bonds, the system restoration property is reflected within Regulatory Assets on Houston Electric’s Condensed Consolidated Balance Sheets.

The Restoration Bond Company III Securitization 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 associated with Hurricane Beryl and certain other significant storms as authorized by the PUCT. Restoration Bond Company III, not Houston Electric, is the owner of the system restoration property, and the assets of Restoration Bond Company III are not available to pay the creditors of Houston Electric or its affiliates, other than Restoration Bond Company III. Houston Electric has no payment obligations with respect to the Restoration Bond Company III Securitization Bonds except to remit collections of system restoration charges as set forth in a servicing agreement between Houston Electric and Restoration Bond Company III.

See Note 11(c) for information regarding litigation related to Hurricane Beryl.

(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.

Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets and inputs other than quoted prices that are observable for the asset or liability. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value the Registrants’ Level 2 interest rate derivative assets or liabilities and natural gas derivative assets or liabilities, if any. CenterPoint 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 June 30, 2026 and December 31, 2025, the Registrants did not have any assets or liabilities classified as Level 3.

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The following tables present information about the Registrants’ assets and liabilities measured at fair value on a recurring basis as of the dates presented and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value:

CenterPoint Energy


	June 30, 2026						December 31, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(in millions)
Investment in equity securities	$	404	$	—	$	—	$	404	$	510	$	—	$	—	$	510
Investments, including money market funds (1) (3)	43		—		—		43		23		—		—		23
Total assets	$	447	$	—	$	—	$	447	$	533	$	—	$	—	$	533
Liabilities
Indexed debt securities derivative	$	—	$	451	$	—	$	451	$	—	$	564	$	—	$	564
Total liabilities	$	—	$	451	$	—	$	451	$	—	$	564	$	—	$	564

Houston Electric


	June 30, 2026						December 31, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(in millions)
Investments, including money market funds (2) (3)	$	26	$	—	$	—	$	26	$	6	$	—	$	—	$	6

Total assets	$	26	$	—	$	—	$	26	$	6	$	—	$	—	$	6

CERC


	June 30, 2026						December 31, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(in millions)

Investments, including money market funds (1)	$	16	$	—	$	—	$	16	$	16	$	—	$	—	$	16

Total assets	$	16	$	—	$	—	$	16	$	16	$	—	$	—	$	16

(1)Primarily included in Other non-current assets in the respective Condensed Consolidated Balance Sheets.

(2)Primarily included in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets.

(3)Includes amounts associated with capital contributions made to the Bond Companies.

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 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.


	June 30, 2026						December 31, 2025
	CenterPoint Energy (1)		Houston Electric (1)		CERC		CenterPoint Energy (1)		Houston Electric (1)		CERC
Short-term borrowings and long-term debt, including current maturities	(in millions)


Carrying amount	$	24,642	$	11,543	$	5,069	$	22,980	$	10,079	$	4,717
Fair value	23,938		10,605		5,026		22,377		9,292		4,711

(1)Includes Securitization Bonds.

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(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 June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
AT&T Common	$	(85)	$	7	$	(43)	$	63
Charter Common	(64)		34		(58)		57
WBD Common	(2)		2		(5)		2
Gain (loss) on equity securities, net	$	(151)	$	43	$	(106)	$	122

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
	June 30, 2026	December 31, 2025	June 30, 2026		December 31, 2025
			(in millions)
AT&T Common	10,212,945	10,212,945	$	211	$	254
Charter Common	872,503	872,503	124		182
WBD Common	2,470,685	2,470,685	66		71
Other			3		3
Investment in equity securities			$	404	$	510

(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 June 30, 2026. 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 for the periods presented:


	June 30, 2026	December 31, 2025
	(in shares)
AT&T Common	0.7185	0.7185
Charter Common	0.061382	0.061382
WBD Common	0.173817	0.173817

On February 27, 2026, Paramount Skydance Corporation (“Paramount”) and WBD announced they entered into a definitive merger agreement under which Paramount will pay $31.00 per share in cash for all outstanding shares of WBD. If the merger closes, WBD shares would be exchanged for cash and as a result, reference shares would consist of AT&T Common and Charter Common. According to Paramount’s public statements, the merger is expected to close in the second half of 2026.

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 June 30, 2026, the ZENS, having an original principal amount of $828 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.

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(9) Short-term Borrowings and Long-term Debt

Debt Issuances. In January 2026, CERC Corp. entered into a delayed draw term loan agreement pursuant to which the banks party thereto committed to provide term loans in an aggregate principal amount of up to $800 million by March 30, 2026 in up to three separate borrowings, subject to the satisfaction or waiver of certain customary conditions. The maturity date of the term loan is July 16, 2027. The borrowings under the term loan agreement bear interest at CERC’s option, at a rate per annum equal to either (i) Term SOFR (as defined in the term loan agreement), plus a margin of 0.85%, or (ii) the Alternate Base Rate (as defined in the term loan agreement). CERC Corp. borrowed $500 million on January 20, 2026 and borrowed the remaining $300 million on March 25, 2026. CERC used the proceeds thereof for general corporate purposes.

In February 2026, Restoration Bond Company III issued and sold approximately $1.193 billion aggregate principal amount of the Restoration Bond Company III Securitization Bonds in three tranches with initial principal amounts of $298,370,000, $397,825,000 and $497,279,000, with interest rates of 3.899%, 4.480% and 4.864% and scheduled final payment dates of December 2030, June 2035 and December 2039, respectively. Restoration Bond Company III used the net proceeds from the issuance to purchase the system restoration property from Houston Electric.

In February 2026, Houston Electric issued and sold $800 million aggregate principal amount of its 4.85% General Mortgage Bonds, Series AR, due 2036. Total proceeds, net of transaction expenses and fees, were approximately $791 million, which was used for general limited liability company purposes, including capital expenditures and working capital purposes.

2029 Convertible Senior Notes. In February 2026, CenterPoint Energy issued and sold $650 million aggregate principal amount of the 2029 Convertible Senior Notes. The 2029 Convertible Notes bear interest at a rate of 2.875% per year. Total proceeds, net of transaction expenses and fees, were approximately $642 million, which were used for general corporate purposes.

Interest on the 2029 Convertible Notes is payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2026. The 2029 Convertible Notes will mature on May 15, 2029, 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 February 15, 2029, the 2029 Convertible Notes are convertible only under certain conditions. On or after February 15, 2029 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2029 Convertible Notes may convert all or any portion of their 2029 Convertible Notes at any time at the conversion rate then in effect, irrespective of the conditions. CenterPoint Energy may not redeem the 2029 Convertible Notes prior to the maturity date.

Upon conversion of the 2029 Convertible Notes, CenterPoint Energy will pay cash up to the aggregate principal amount of the 2029 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 2029 Convertible Notes being converted. The conversion rate for the 2029 Convertible Notes is initially 18.6524 shares of Common Stock per $1,000 principal amount of 2029 Convertible Notes (equivalent to an initial conversion price of approximately $53.61 per share of Common Stock). The initial conversion price of the 2029 Convertible Notes represents a premium of approximately 25.0% over the last reported sale price of the Common Stock on the NYSE on February 23, 2026. Initially, a maximum of 15,155,010 shares of Common Stock may be issued upon conversion of the 2029 Convertible Notes based on the initial maximum conversion rate of 23.3154 shares of Common Stock per $1,000 principal amount of 2029 Convertible Notes. The conversion rate will be subject to adjustment in some events (as described in the 2029 Convertible Notes Indenture) but will not be adjusted for any accrued and unpaid interest.

Debt Repayments. On February 11, 2026, CERC Corp. commenced sending out notices of full prepayment relating to (i) $10 million aggregate principal amount of its 4.25% Senior Notes, Series B, due June 5, 2043, (ii) $40 million aggregate principal amount of its 4.36% Senior Notes, Series B, due December 15, 2045, (iii) $35 million aggregate principal amount of its 5.99% Senior Notes, Series C, due November 30, 2041, (iv) $60 million aggregate principal amount of its 5.02% Senior Notes, Series B, due November 30, 2026 and (v) $100 million aggregate principal amount of its 5.00% Senior Notes due February 3, 2042, pursuant to Note Purchase Agreements, each dated as of May 27, 2022, by and among CERC Corp. and the purchasers party thereto. Such notes were prepaid on March 27, 2026 at 100% of the principal amount plus accrued and unpaid interest and a Make-Whole Amount (as defined in the respective Note Purchase Agreements). Each of CenterPoint Energy and CERC recognized a loss on early extinguishment of debt of approximately $13 million for the three months ended March 31, 2026, which is included in Interest expense and other finance charges on their respective Statements of Consolidated Income.

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In February 2026, Houston Electric repaid the $500 million outstanding amount of its term loan, including accrued and unpaid interest thereon, and, following the repayment, the term loan agreement was terminated.

In June 2026, CenterPoint Energy repaid at maturity $500 million aggregate principal amounts of its outstanding 1.45% senior notes due 2026 at a price equal to 100% of the principal amount thereof plus accrued and unpaid interest thereon.

Credit Facilities. The Registrants had the following revolving credit facilities as of June 30, 2026:


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 June 30, 2026 (2)	Termination Date
		(in millions)
CenterPoint Energy	December 6, 2022	$	2,400	1.500	%	65.0%	(3)	59.2%	December 6, 2028
CenterPoint Energy (4)	December 6, 2022	250		1.125	%	65.0%		45.0%	December 6, 2028
Houston Electric	December 6, 2022	300		1.250	%	67.5%	(3)	56.1%	December 6, 2028
CERC	December 6, 2022	1,050		1.125	%	65.0%		40.2%	December 6, 2028
Total		$	4,000

(1)Based on credit ratings as of June 30, 2026.

(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 June 30, 2026.

The table below reflects the utilization of the Registrants’ respective revolving credit facilities:


	June 30, 2026								December 31, 2025
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)	$	—	$	—	$	124	3.80	%	$	—	$	—	$	420	3.78	%
CenterPoint Energy (2)	—		—		—		—	%	—		—		—		—	%
Houston Electric	—		—		—		—	%	—		—		—		—	%
CERC (1)	—		—		353		3.80	%	—		—		559		3.86	%
Total	$	—	$	—	$	477			$	—	$	—	$	979

(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.

(2)This credit facility was issued by SIGECO.

Liens. As of June 30, 2026, Houston Electric’s assets were subject to liens securing approximately $10.1 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 condensed 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 June 30, 2026, approximately $5.3 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

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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 June 30, 2026, SIGECO had approximately $1.5 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 June 30, 2026, SIGECO was permitted to issue additional bonds under its mortgage indenture up to 70% of then currently unfunded property additions and approximately $1 billion of additional first mortgage bonds could be issued on this basis.

(10) Income Taxes

The Registrants reported the following effective tax rates for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
CenterPoint Energy (1)	18	%	22	%	21	%	22	%
Houston Electric (2)	19	%	20	%	19	%	20	%
CERC (3)	11	%	11	%	22	%	22	%

(1)CenterPoint Energy’s lower effective tax rate for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was due primarily to a decrease in nondeductible goodwill and a decrease in state taxes. CenterPoint Energy’s lower effective tax rate for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was due primarily to a decrease in nondeductible goodwill.

(2)Houston Electric’s lower effective tax rate for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily driven by a decrease in state income taxes. Houston Electric’s lower effective tax rate for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily driven by a decrease in state income taxes.

(3)CERC’s effective tax rate did not change for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Increases in state income taxes were offset by decreases in nondeductible goodwill.

CERC’s effective tax rate did not change for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Lower state tax expense and nondeductible goodwill was offset by a decrease in excess deferred tax amortization resulting from the sale of Louisiana and Mississippi LDC businesses in the first quarter of 2025.

CenterPoint Energy reported a net uncertain tax liability, inclusive of interest and penalties, of $20 million as of June 30, 2026. The Registrants believe that it is reasonably possible that the Registrants will recognize a $20 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.

Tax Audits and Settlements. Tax years through 2023 have been audited and settled with the IRS for CenterPoint Energy. For tax years 2024, 2025 and 2026, the Registrants are participants in the IRS’s Compliance Assurance Process.

(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 June 30, 2026 and December 31, 2025 because these contracts meet an exception as “normal purchases contracts” or do not meet the definition of a derivative. Natural gas supply commitments also include transportation contracts that do not meet the definition of a derivative.

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As of June 30, 2026, CenterPoint Energy and CERC had the following undiscounted minimum purchase obligations:


	CenterPoint Energy						CERC
	Natural Gas Supply		Electric Supply (1)		Other (2)		Natural Gas Supply
	(in millions)
Remainder of 2026	$	330	$	56	$	71	$	327
2027	623		127		156		616
2028	576		100		142		570
2029	555		98		10		549
2030	507		81		2		501
Thereafter	1,377		1,538		52		1,353
Total	$	3,968	$	2,000	$	433	$	3,916

(1)Primarily related to PPAs with commitments ranging from 20 years to 27 years.

(2)Primarily related to commitments for utility equipment, including meters and transformers, with the remaining commitments related to information technology services and software.

Excluded from the table above are estimates for cash 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) 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 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 $426 million as of June 30, 2026 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 June 30, 2026 and December 31, 2025 related to its obligation under the outstanding guarantees.

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(c) Legal, Environmental and Other Matters

Legal Matters

Litigation Related to Hurricane Beryl. Various federal, state and local governmental and regulatory agencies and other entities called for or conducted 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. Ongoing and future inquiries, investigations and proposed legislation regarding Hurricane Beryl could adversely affect our business, financial condition, results of operations and cash flows, including with respect to our recovery of costs incurred as a result of Hurricane Beryl or future severe weather events; the assessment of financial penalties; changes to Houston Electric’s system, service territories, operations and/or regulatory treatment; and the viability for Houston Electric to continue leasing TEEEF. 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. As of June 30, 2026, the case remains stayed. 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 sought damages in excess of $100 million for, among other things, business interruption, property damage and loss, cost of repair, loss of use and market value, lost income, nuisance, extreme mental anguish and/or punitive damages. On July 30, 2025, the plaintiffs in the putative class action on behalf of all residential customers nonsuited without prejudice all claims and causes of action. In addition, the plaintiffs in the other two putative class actions have amended their petitions to remove all class action allegations and assert claims of negligence, gross negligence, nuisance and/or intentional misconduct. One of those lawsuits is brought by approximately 220 individually named plaintiffs, and the other lawsuit includes approximately 50 individually named plaintiffs. In addition, thirteen individual actions are currently pending in Harris County District Courts. These actions assert 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 wrongful death, personal injury, or property damage and seek damages in excess of $1 million each. Six of the thirteen additional lawsuits are on behalf of a collective approximately 465 individuals or entities who claim losses due to power outages, with damages in excess of $1 million being sought in five of the suits and in excess of $5 million in the sixth suit. These cases have been or will be transferred to the designated MDL pretrial court. CenterPoint Energy, CenterPoint Energy Service Company, LLC and/or Houston Electric filed dispositive motions in the two former putative class action cases and certain individual actions. On December 1, 2025, the MDL pretrial court granted Houston Electric’s dispositive motion in one individual action brought by a business alleging losses due to a power outage following Hurricane Beryl. Following this ruling, this action, as well as two other actions in which the plaintiffs alleged losses due to power outages following Hurricane Beryl, were dismissed or non-suited. On January 28, 2026, the MDL pretrial court denied dispositive motions filed by CenterPoint Energy, CenterPoint Energy Service Company, LLC and/or Houston Electric in individual actions alleging personal injury or property damage. Houston Electric filed notices of appeal of these orders, and briefing in Houston Electric’s appeal in the property damage case is complete. The claims against CenterPoint Energy and Houston Electric in the personal injury case were non-suited and the related appeal was dismissed. After the appeal was dismissed, the personal injury plaintiff again sued CenterPoint Energy and Houston Electric. On March 19, 2026, the MDL pretrial court ruled on CenterPoint Energy and/or Houston Electric’s dispositive motions in the two former putative class actions, granting the motions as to the plaintiffs’ claims for negligence, fraud and nuisance but denying them as to plaintiffs’ gross negligence claims. On June 19, 2026, CenterPoint Energy and Houston Electric filed a petition for writ of mandamus as to the MDL pretrial court’s denial of the dispositive motions on plaintiffs’ gross negligence claims. 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

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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 certain of 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, CenterPoint Energy Service Company, LLC 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.

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, 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 June 30, 2026, 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 150 of those lawsuits. The plaintiffs in the lawsuits asserted negligence, gross negligence and nuisance causes of action, among others, against CenterPoint Energy, Utility Holding and Houston Electric. Following the filing of dispositive motions under Rule 91a of the Texas Rules of Civil Procedure in five representative or “bellwether” cases in the MDL proceeding and related mandamus proceedings in the court of appeals and the Supreme Court of Texas, the plaintiffs’ claims against CenterPoint Energy and Houston Electric have been dismissed with the exception of the plaintiffs’ gross negligence claims. With respect to the plaintiffs’ gross negligence claims, the Supreme Court of Texas concluded that the plaintiffs should be given the opportunity to replead those claims. Following issuance of the Texas Supreme Court’s decision on September 11, 2025, most plaintiffs filed amended petitions, and four bellwether cases were selected for another round of motions to dismiss based on plaintiffs’ petitions. Briefing on the TDUs’ pleadings-based motions is complete, but a hearing date on these motions has not yet been set. The claims against Utility Holding have been dismissed in light of the judge’s initial rulings on the Rule 91a dispositive motions. The TDUs (including Houston Electric) also filed a motion to dismiss under Chapter 150 of the Texas Civil Practice and Remedies Code 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 of merit by a qualified engineer with their petition, as required by Texas law. On November 13, 2024, the MDL judge 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. Aside from the filing of amended pleadings and certain dispositive motions in response, all litigation otherwise remains stayed in the MDL. CenterPoint Energy and Houston Electric intend to vigorously defend themselves against the remaining claims.

In February 2023, multiple 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.). There are two main remaining lawsuits—one filed in Harris County and one in Tom Green County—which were brought by an entity that purports to be an assignee of the claims of tens of thousands of persons and entities. These suits, generally allege that the defendants engaged in gas market manipulation, including by intentionally withholding, suppressing, or diverting supplies of natural gas in connection with the February 2021 Winter Storm Event. Plaintiffs allege that this manipulation impacted gas supply and prices and caused blackouts and other damage. Plaintiffs assert claims for tortious interference with existing contract, private nuisance, and unjust enrichment. The lawsuits do not specify the amount of damages sought, but seek broad categories of actual, compensatory, consequential, economic and punitive damages; restitution and disgorgement; pre- and post-judgment interest; costs and attorneys’ fees; and other relief. All of these lawsuits have been transferred to the existing MDL proceeding referenced above. These gas market cases are in addition to the 220 cases noted above regarding electric market issues.

CERC has vigorously defended itself against the claims raised in the gas market cases. On February 2, 2024, CERC filed pleas to the jurisdiction in the three cases in which it was served on February 2, 2024 and again on May 17, 2024; CERC also partially joined the other defendants’ motions to dismiss and additional 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

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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. One of the three cases against CERC was a putative class action, but that case has been dismissed. On January 17, 2025, the plaintiffs in the putative class action case filed an unopposed motion to dismiss their appeal, which the Court of Appeals granted on February 4, 2025. CERC is still a defendant in two remaining cases. The parties have completed their briefing for the Court of Appeals for the First District of Texas and await a ruling.

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’ 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 by the Parish of Jefferson) is Primary Fuels, Inc., a predecessor company of CenterPoint Energy, which operated in the oilfield at issue in the case from 1983-1989. All 42 suits were removed to Louisiana federal courts twice and were stayed for several years pending the federal 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 ruled on the merits of a jurisdictional issue in a related case that does not include Primary Fuels, Inc. On April 17, 2026, the United States Supreme Court ruled on the jurisdictional issue in the related case, holding that the defendants satisfied a key requirement for federal jurisdiction in that case. The Supreme Court did not resolve whether defendants in other cases can satisfy the requirements for federal court jurisdiction. The Fifth Circuit is considering jurisdictional issues – after the United States Supreme Court’s ruling -- in an appeal of the remand order issued in Rozel. As of June 30, 2026, the Louisiana 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 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 gas manufacturing and storage sites have been identified for which CenterPoint

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Energy and CERC may have some remedial responsibility. A remedial investigation/feasibility study was completed at 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.

(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:


	June 30, 2026
	CenterPoint Energy		CERC
	(in millions, except years)
Amount accrued for remediation	$	12	$	10
Minimum estimated remediation costs	9		7
Maximum estimated remediation costs	50		41
Minimum years of remediation	5		5
Maximum years of remediation	50		50

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.

CCR Legacy Rule (CenterPoint Energy). 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. On February 10, 2026, the EPA published a final rule extending various deadlines under the CCR Legacy Rule, including those related to facility evaluation requirements. 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. On April 13, 2026, the EPA published amendments to the CCR Legacy Rule which, if finalized, could rescind further investigation and remediation requirements for those Indiana Electric sites referenced above.

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.

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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.

(12) Earnings Per Share (CenterPoint Energy)

The methodology for calculating basic and diluted earnings per share was disclosed in our combined 2025 Form 10-K. Except as described below, there have been no material changes in those disclosures.

Diluted earnings per common share reflects the dilutive impact of potential issuances of shares of Common Stock associated with outstanding equity forward sale agreements described in Note 15. 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 convertible notes, see Note 9.

The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions, except per share and share amounts)
Numerator:
Net income	$	244	$	198	$	560	$	495
Denominator:
Weighted average common shares outstanding – basic	657,204,000		652,783,000		655,321,000		652,474,000
Plus:
Restricted stock	1,323,000		1,060,000		1,932,000		1,109,000
Equity forwards	3,616,000		201,000		3,468,000		100,000
Convertible notes (1)	4,048,000		—		2,081,000		—
Weighted average common shares outstanding – diluted	666,191,000		654,044,000		662,802,000		653,683,000

Earnings Per Common Share:
Basic	$	0.37	$	0.30	$	0.85	$	0.76
Diluted	$	0.37	$	0.30	$	0.84	$	0.76

(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.

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As of June 30, 2026, reportable segments by Registrant and information about each Registrant’s CODM were as follows:

CenterPoint Energy

CenterPoint Energy’s Electric reportable segment consisted of (i) electric transmission and distribution services in the Texas Gulf Coast area in the ERCOT region; (ii) electric transmission and distribution services primarily to southwestern Indiana; and (iii) power generation and wholesale power operations in the MISO region.
CenterPoint Energy’s Natural Gas reportable segment following the closing of the sale of the Louisiana and Mississippi natural gas LDC businesses on March 31, 2025 consisted of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, and industrial customers in Indiana, Minnesota, Ohio and Texas; and (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP. On October 20, 2025, CenterPoint Energy, through CERC Corp., entered into the Ohio Securities Purchase Agreement to sell all of the issued and outstanding equity interests in CEOH. The transaction is expected to close in the fourth quarter of 2026, subject to the satisfaction of customary closing conditions. For further information, see Note 3 to the Interim Condensed Financial Statements.
CenterPoint Energy’s Corporate and Other reportable segment consisted 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 consisted of electric transmission services to transmission service customers in the ERCOT region and distribution service 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 closing of the sale of the Louisiana and Mississippi natural gas LDC businesses on March 31, 2025 consisted of (i) intrastate natural gas sales to, and natural gas transportation and distribution for, residential, commercial, and industrial customers in Indiana, Minnesota, Ohio and Texas; and (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP. On October 20, 2025, CenterPoint Energy, through CERC Corp., entered into the Ohio Securities Purchase Agreement to sell all of the issued and outstanding equity interests in CEOH. The transaction is expected to close in the fourth quarter of 2026, subject to the satisfaction of customary closing conditions. For further information, see Note 3 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.

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Financial data for reportable segments is as follows for the periods presented:

CenterPoint Energy


	Three Months Ended June 30, 2026
	Electric		Natural Gas		Corporate and Other		Total Reportable Segments		Eliminations		Total
	(in millions)
Revenues from external customers	$	1,372	$	777	$	3	$	2,152	$	—	$	2,152
Intersegment revenues	—		—		1		1		(1)		—
Utility natural gas, fuel and purchased power	67		214		—		281		—		281
Non-utility cost of revenues, including natural gas	—		—		—		—		—		—
Operation and maintenance	532		212		(1)		743		(1)		742
Depreciation and amortization	283		157		5		445		—		445
Taxes other than income taxes	83		64		3		150		—		150
Interest expense and other finance charges	138		46		84		268		(7)		261
Interest income (1)	(5)		(1)		(5)		(11)		7		(4)
Other expense (income), net (2)	(18)		(6)		4		(20)		—		(20)
Income tax expense (benefit)	55		11		(13)		53		—		53
Net income (loss)	$	237	$	80	$	(73)	$	244	$	—	$	244



	Three Months Ended June 30, 2025
	Electric		Natural Gas		Corporate and Other		Total Reportable Segments		Eliminations		Total
	(in millions)
Revenues from external customers	$	1,191	$	750	$	3	$	1,944	$	—	$	1,944
Intersegment revenues	—		1		—		1		(1)		—
Utility natural gas, fuel and purchased power	65		236		—		301		(1)		300
Non-utility cost of revenues, including natural gas	—		2		—		2		—		2
Operation and maintenance	523		195		(3)		715		—		715
Depreciation and amortization	230		137		3		370		—		370
Taxes other than income taxes	80		56		4		140		—		140
Interest expense and other finance charges	106		43		60		209		(14)		195
Interest expense (income) (1)	(7)		(10)		3		(14)		14		—
Other income, net (2)	(18)		(5)		(8)		(31)		—		(31)
Income tax expense	41		11		3		55		—		55
Net income (loss)	$	171	$	86	$	(59)	$	198	$	—	$	198

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	Six Months Ended June 30, 2026
	Electric		Natural Gas		Corporate and Other		Total Reportable Segments		Eliminations		Total
	(in millions)
Revenues from external customers	$	2,581	$	2,541	$	5	$	5,127	$	—	$	5,127
Intersegment revenues	—		1		2		3		(3)		—
Utility natural gas, fuel and purchased power	148		1,104		—		1,252		(1)		1,251
Non-utility cost of revenues, including natural gas	—		1		—		1		—		1
Operation and maintenance	1,045		470		(5)		1,510		(2)		1,508
Depreciation and amortization	552		305		11		868		—		868
Taxes other than income taxes	168		135		4		307		—		307
Interest expense and other finance charges	269		116		171		556		(16)		540
Interest income (1)	(9)		(1)		(13)		(23)		16		(7)
Other expense (income), net (2)	(40)		(10)		3		(47)		—		(47)
Income tax expense (benefit)	71		92		(17)		146		—		146
Net income (loss)	$	377	$	330	$	(147)	$	560	$	—	$	560



	Six Months Ended June 30, 2025
	Electric		Natural Gas		Corporate and Other		Total Reportable Segments		Eliminations		Total
	(in millions)
Revenues from external customers	$	2,257	$	2,602	$	5	$	4,864	$	—	$	4,864
Intersegment revenues	—		2		—		2		(2)		—
Utility natural gas, fuel and purchased power	139		1,169		—		1,308		(2)		1,306
Non-utility cost of revenues, including natural gas	—		3		—		3		—		3
Operation and maintenance	1,007		460		(5)		1,462		—		1,462
Depreciation and amortization	440		284		9		733		—		733
Taxes other than income taxes	158		130		6		294		—		294
Interest expense and other finance charges	207		102		145		454		(21)		433
Interest income (1)	(11)		(10)		—		(21)		21		—
Other expense (income), net (2)	(28)		36		(6)		2		—		2
Income tax expense (benefit)	66		116		(46)		136		—		136
Net income (loss)	$	279	$	314	$	(98)	$	495	$	—	$	495

(1) Interest income earned on cash and cash equivalents related to VIEs of less than $1 million for the three and six months ended June 30, 2026 and 2025, is included in Other income (expense), net on CenterPoint Energy’s Condensed Statements of Consolidated Income.

(2) Other income (expense), net 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
		Six Months Ended June 30,
			2026		2025
	(in millions)
Electric			$	1,774	$	1,716
Natural Gas			890		696
Corporate and Other			10		18
Consolidated			$	2,674	$	2,430

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	Total Assets
	June 30, 2026		December 31, 2025
	(in millions)
Electric	$	28,348	$	26,649
Natural Gas	18,558		18,405
Corporate and Other (1)	1,344		1,480
Consolidated	$	48,250	$	46,534

(1)Total assets included pension and other postemployment-related regulatory assets of $370 million and $383 million as of June 30, 2026 and December 31, 2025, 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 Condensed Statements of Consolidated Income. For financial data related to segment total assets, see Houston Electric’s Condensed Consolidated Balance Sheets. Expenditures for long-lived assets were $1.6 billion and $1.2 billion for the six months ended June 30, 2026 and 2025, respectively. Financial data related to interest income is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)				(in millions)
Interest income (1)	$	4	$	7	$	7	$	9

(1)Reflected in Other income, net on Houston Electric’s Condensed Statements of Consolidated Income and includes interest income earned on cash and cash equivalents related to VIEs of less than $1 million for three and six months ended June 30, 2026 and 2025.

CERC

CERC consists of a single reportable segment. For financial data related to income and expenses for the single reportable segment, see CERC’s Condensed Statements of Consolidated Income. For financial data related to segment total assets, see CERC’s Condensed Consolidated Balance Sheets. Expenditures for long-lived assets were $852 million and $667 million for the six months ended June 30, 2026 and 2025, respectively. Financial data related to interest income is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)				(in millions)
Interest income (1)	$	1	$	9	$	1	$	10

(1)Reflected in Other income, net on CERC’s Condensed Statements of Consolidated Income.

(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 as of the periods presented:


	June 30, 2026						December 31, 2025
	Houston Electric			CERC			Houston Electric			CERC
	(in millions, except interest rates)
Money pool investments (borrowings) (1)	$	182		$	—		$	(54)		$	(291)
Weighted average interest rate	3.85		%	—		%	3.83		%	3.83		%

(1)Included in Accounts and notes receivable–affiliated companies in Houston Electric’s Condensed Consolidated Balance Sheets as of June 30, 2026 and Accounts and notes payable–affiliated companies in Houston Electric’s and CERC’s respective Condensed Consolidated Balance Sheets as of December 31, 2025.

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Houston Electric and CERC affiliate-related transactions were as follows for the periods presented:


	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
	Houston Electric		CERC		Houston Electric		CERC		Houston Electric		CERC		Houston Electric		CERC
	(in millions)
Interest income (expense), net (1)	$	3	$	(2)	$	(2)	$	9	$	4	$	(3)	$	—	$	10

(1) Interest income is 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 Condensed Statements of Consolidated Income.

CenterPoint Energy and its affiliates provide 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 and CERC provide other miscellaneous services to affiliates of CenterPoint Energy. Houston Electric provides certain services to CERC, including 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, including line locating and other miscellaneous services. Each of these services are billed at actual cost, either directly or as an allocation. These billings and charges are not necessarily indicative of what would have been incurred had subsidiaries of CenterPoint Energy, Houston Electric and CERC not been affiliates.

The table below presents charges (billings) 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 for the periods presented:


	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
	Houston Electric		CERC		Houston Electric		CERC		Houston Electric		CERC		Houston Electric		CERC
	(in millions)
Corporate service charges	$	53	$	62	$	47	$	51	$	106	$	125	$	90	$	106
Affiliate service charges (billings), net	—		(2)		—		—		—		(4)		(1)		1

(15) Equity (CenterPoint Energy)

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 June 30,				Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025		2026		2025		2026		2025
Common Stock	$	0.230	$	0.220	$	0.230	$	0.220	$	0.230	$	0.220	$	0.460	$	0.440

Common Stock (CenterPoint Energy)

(a) Equity Distribution Agreement

On May 15, 2026, CenterPoint Energy entered into a 2026 Equity Distribution Agreement with respect to the offering and sale from time to time of shares of Common Stock, having an aggregate gross sales price of up to $1 billion. Upon entry into the 2026 Equity Distribution Agreement, CenterPoint Energy terminated the 2024 Equity Distribution Agreement. At the time of such termination, Common Stock having an aggregate gross sales price of approximately $85 million remained unsold under such prior program. Sales of Common Stock may be made by any method permitted by applicable law and deemed to be an “at the market offering” as defined in Rule 415 of the Securities Act. CenterPoint Energy may also enter into one or more forward sale agreements with the 2026 ATM Forward Purchasers pursuant to master forward confirmations and related supplemental

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confirmations. The offer and sale of Common Stock under the 2026 Equity Distribution Agreement will terminate upon the earliest of (1) the sale of all Common Stock subject to the 2026 Equity Distribution Agreement, (2) termination of the 2026 Equity Distribution Agreement, or (3) May 15, 2029. As of June 30, 2026, no shares of Common Stock had been sold under the 2026 Equity Distribution Agreement.

In April 2025, CenterPoint Energy entered into separate forward sale agreements pursuant to the 2024 Equity Distribution Agreement with certain of the 2024 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. In May 2025, CenterPoint Energy entered into a forward sale agreement with a 2024 ATM Forward Purchaser relating to 521,962 shares of Common Stock at an initial forward price of $37.49 per share. As initial pricing terms were based on market prices for Common Stock, no amounts were recorded at the execution of the forward sale agreements. The forward sale agreements required 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 $165 million or (2) net settle the transactions in whole or in part through the delivery or receipt of cash or shares of Common Stock.

On May 1, 2026, CenterPoint Energy issued 4,480,628 shares of Common Stock to the counterparties for cash of

approximately $165 million. The forward price used to determine amounts due at settlement was calculated based on a floating interest rate factor equal to the overnight bank funding rate less a spread of 75 basis points, and was 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 was less than or more than the spread on any day, the interest rate factor resulted in a reduction or an increase, respectively, of the forward sale price.

(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. 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 $910 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 June 30, 2026 by CenterPoint Energy’s delivery of approximately $185 million of cash or 4,193,909 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 June 30,
	2026		2025
	CenterPoint Energy		CERC		CenterPoint Energy		CERC
	(in millions)
Beginning Balance	$	(26)	$	15	$	(17)	$	17



Amounts reclassified from accumulated other comprehensive income (loss):
Prior service cost (1)	1		1		1		1
Actuarial gain (1)	—		(1)		—		(1)
Reclassification of deferred gain from cash flow hedges realized in net income	—		—		(1)		—

Other comprehensive income	1		—		—		—
Ending Balance	$	(25)	$	15	$	(17)	$	17

	Six Months Ended June 30,
	2026		2025
	CenterPoint Energy		CERC		CenterPoint Energy		CERC
	(in millions)
Beginning Balance	$	(26)	$	15	$	(17)	$	17



Amounts reclassified from accumulated other comprehensive income (loss):
Prior service cost (1)	1		1		1		1
Actuarial gain (1)	—		(1)		—		(1)
Reclassification of deferred gain from cash flow hedges realized in net income	—		—		(1)		—

Other comprehensive income	1		—		—		—
Ending Balance	$	(25)	$	15	$	(17)	$	17

(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

Dividends Declared (CenterPoint Energy)


Equity Instrument						Declaration Date						Record Date						Payment Date						Per Share
Common Stock						July 15, 2026						August 20, 2026						September 10, 2026						$	0.240

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