CENTERPOINT ENERGY INC

For the period ended Mar 31, 2025. Filed Apr 24, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed Apr 24, 2025

CNP$40.66+1.7%Stored close · as of Nov 6, 2026

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Contents

Recent Events

Equity Distribution Agreement. In April 2025, CenterPoint Energy entered into forward sale agreements with counterparties relating to 3,277,764 shares and 680,902 shares of Common Stock at an initial forward price of $36.29 and $36.72, respectively. For additional information, see Note 15 and Note 16 to the Interim Condensed Financial Statements.

Divestiture of Louisiana and Mississippi Natural Gas Businesses. On March 31, 2025, CenterPoint Energy, through its subsidiary CERC Corp., completed the sale of its Louisiana and Mississippi natural gas LDC businesses for approximately $1.2 billion, subject to adjustment as set forth in the LAMS Asset Purchase Agreement, including adjustments based on net working capital, regulatory assets and liabilities and capital expenditures at closing. For information about this transaction, see Note 3 to the Interim Condensed Financial Statements.

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. For information about this transaction, see Note 3 to the Interim Condensed Financial Statements.

Regulatory Proceedings. For further information, see Note 6 to the Interim Condensed Financial Statements. For information related to our pending and completed regulatory proceedings to date in 2025, see “Liquidity and Capital Resources —Regulatory Matters” below.

Debt Transactions. For information about debt transactions to date in 2025, see Note 9 to the Interim Condensed Financial Statements.

CENTERPOINT ENERGY CONSOLIDATED RESULTS OF OPERATIONS

For information regarding factors that may affect the future results of our consolidated operations, see “Risk Factors” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K.

Net income for the three months ended March 31, 2025 and 2024 was as follows:

	Three Months Ended March 31,
	2025	2024	Favorable (Unfavorable)
(in millions)
Electric	$108	$121	$(13)
Natural Gas	228	283	(55)
Total Utility Operations	336	404	(68)
Corporate and Other (1)	(39)	(54)	15
Total CenterPoint Energy	$297	$350	$(53)

(1)Includes unallocated corporate costs, interest income and interest expense and intercompany eliminations.

Three months ended March 31, 2025 compared to three months ended March 31, 2024

Net income decreased $53 million primarily due to the following items:

a decrease in net income of $13 million for the Electric reportable segment, as further discussed below;

a decrease in net income of $55 million for the Natural Gas reportable segment, as further discussed below; and

an increase in net income of $15 million for Corporate and Other, primarily due to the favorable impact of accrued income tax benefits offset in other segments. This increase was partially offset by $14 million associated with increased borrowing costs.

CENTERPOINT ENERGY’S RESULTS OF OPERATIONS BY REPORTABLE SEGMENT

CenterPoint Energy’s CODM views net income as the measure of profit or loss for the reportable segments. Segment results include inter-segment interest income and expense, which may result in inter-segment profit and loss.

The following discussion of CenterPoint Energy’s results of operations is separated into two reportable segments, Electric and Natural Gas.

Electric (CenterPoint Energy)

For information regarding factors that may affect the future results of operations of CenterPoint Energy’s Electric reportable segment, see “Risk Factors — Risk Factors Affecting Operations — Electric Generation, Transmission and Distribution,” “— Risk Factors Affecting Regulatory, Environmental and Legal Risks,” “— Risk Factors Affecting Financial, Economic and Market Risks,” “— Risk Factors Affecting Safety and Security Risks” and “— General and Other Risks” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K.

The following table provides summary data of CenterPoint Energy’s Electric reportable segment:

	Three Months Ended March 31,
	2025	2024	Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues	$1,066	$1,049	$17
Expenses:
Utility natural gas, fuel and purchased power	74	43	(31)
Operation and maintenance	484	475	(9)
Depreciation and amortization	210	226	16
Taxes other than income taxes	78	78	—
Total expenses	846	822	(24)
Operating Income	220	227	(7)
Other Income (Expense):
Interest expense and other finance charges	(101)	(91)	(10)
Other income, net	14	16	(2)
Income Before Income Taxes	133	152	(19)
Income tax expense	25	31	6
Net Income	$108	$121	$(13)
Throughput (in GWh):
Residential	6,643	5,963	11%
Total	24,749	23,063	7%
Weather (percentage of normal weather for service area):
Cooling degree days	138%	104%	34%
Heating degree days	105%	91%	14%
Number of metered customers at end of period:
Residential	2,651,381	2,604,026	2%
Total	2,983,906	2,932,702	2%

The following table provides variance explanations for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 by major income statement caption for CenterPoint Energy’s Electric reportable segment:

	Favorable (Unfavorable)
(in millions)
Revenues
Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below	$(10)
Customer rates and the impact of the change in rate design	16
Customer growth	7
Cost of fuel and purchased power, offset in utility natural gas, fuel and purchased power below	31
Energy efficiency, offset in operation and maintenance below	(3)
Miscellaneous revenues, including service connections and off-system sales	(8)
Equity return, related to the annual true-up of transition charges for amounts over or under collected in prior periods	(8)
Weather, efficiency improvements and other usage impacts	24
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items below	(32)
Total	$17
Utility natural gas, fuel and purchased power
Cost of purchased power, offset in revenues above	$(27)
Cost of fuel, including coal, natural gas, and fuel oil, offset in revenues above	(4)
Total	$(31)
Operation and maintenance
Transmission costs billed by transmission providers, offset in revenues above	$6
Contract services	2
Corporate support services	(9)
Labor and benefits	(1)
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items	1
Energy efficiency, offset in revenues above	(1)
All other operation and maintenance expense, including materials and supplies and insurance	(7)
Total	$(9)
Depreciation and amortization
Ongoing additions to plant-in-service	$(15)
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items	31
Total	$16
Interest expense and other finance charges
Changes in outstanding debt	$(19)
Other, primarily AFUDC and impacts of regulatory deferrals	8
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items above	1
Total	$(10)
Other income, net
Other income, including AFUDC - Equity	$(1)
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items above	(1)
Total	$(2)

Income Tax Expense. For a discussion of effective tax rate per period by Registrant, see Note 10 to the Interim Condensed Financial Statements.

Natural Gas (CenterPoint Energy)

For information regarding factors that may affect the future results of operations of CenterPoint Energy’s Natural Gas reportable segment, see “Risk Factors — Risk Factors Affecting Operations — Natural Gas,” “— Risk Factors Affecting Regulatory, Environmental and Legal Risks,” “— Risk Factors Affecting Financial, Economic and Market Risks,” “— Risk Factors Affecting Safety and Security Risks” and “— General and Other Risks” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K.

The following table provides summary data of CenterPoint Energy’s Natural Gas reportable segment:

	Three Months Ended March 31,
	2025	2024	Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues	$1,853	$1,570	$283
Expenses:
Utility natural gas and fuel	933	744	(189)
Non-utility cost of revenues, including natural gas	1	1	—
Operation and maintenance	265	234	(31)
Depreciation and amortization	147	132	(15)
Taxes other than income taxes	74	65	(9)
Total expenses	1,420	1,176	(244)
Operating Income	433	394	39
Other Income (Expense):
Loss on sale	(43)	—	(43)
Interest expense and other finance charges	(59)	(51)	(8)
Other income, net	2	3	(1)
Income Before Income Taxes	333	346	(13)
Income tax expense	105	63	(42)
Net Income	$228	$283	$(55)
Throughput (in Bcf):
Residential	118	74	59%
Commercial and Industrial	149	101	48%
Total	267	175	53%
Weather (percentage of 10-year average for service area):
Heating degree days	99%	82%	17%
Number of metered customers at end of period:
Residential	4,079,888	4,026,029	1%
Commercial and Industrial	306,075	303,018	1%
Total	4,385,963	4,329,047	1%

	Favorable (Unfavorable)
(in millions)
Revenues
Cost of natural gas, offset in utility natural gas and fuel below	$189
Energy efficiency and other pass-through, offset in operation and maintenance below	17
Gross receipts tax, offset in taxes other than income taxes below	6
Non-volumetric and miscellaneous revenue	2
Weather and usage	23
Customer growth	4
Non-utility revenues	3
Customer rates and impact of the change in rate design	39
Total	$283
Utility natural gas and fuel
Cost of natural gas, offset in revenues above	$(189)
Total	$(189)
Operation and maintenance
All other operations and maintenance expense, including bad debt expense	$(5)
Contract services	(2)
Labor and benefits	(5)
Corporate support services	(2)
Energy efficiency and other pass-through, offset in revenues above	(17)
Total	$(31)
Depreciation and amortization
Ongoing additions to plant-in-service	$(15)
Total	$(15)
Taxes other than income taxes
Gross receipts tax, offset in revenues above	$(6)
Incremental capital projects placed in service, and the impact of updated property tax rates	(3)
Total	$(9)
Loss on sale
Loss on sale of Louisiana and Mississippi natural gas LDC businesses	$(43)
Total	$(43)
Interest expense and other finance charges
Other, primarily AFUDC and impacts of regulatory deferrals	$(1)
Changes in outstanding debt	(7)
Total	$(8)
Other income, net
Other income, including AFUDC - Equity	$(1)
Total	$(1)

Income Tax Expense. For a discussion of effective tax rate per period by Registrant, see Note 10 to the Interim Condensed Financial Statements.

HOUSTON ELECTRIC CONSOLIDATED RESULTS OF OPERATIONS

Houston Electric’s CODM views net income as the measure of profit or loss for its single reportable segment. Houston Electric’s results of operations are affected by seasonal fluctuations in the demand for electricity. Houston Electric’s results of operations are also affected by, among other things, the actions of various governmental authorities having jurisdiction over rates Houston Electric charges, debt service costs, income tax expense, Houston Electric’s ability to collect receivables from REPs and Houston Electric’s ability to recover its regulatory assets. For more information regarding factors that may affect the future results of operations of Houston Electric’s business, see “Risk Factors — Risk Factors Affecting Operations — Electric Generation, Transmission and Distribution,” “— Risk Factors Affecting Regulatory, Environmental and Legal Risks,” “— Risk Factors Affecting Financial, Economic and Market Risks,” “— Risk Factors Affecting Safety and Security Risks” and “— General and Other Risks” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K and in Part II, Item 1A of this combined Form 10-Q.

The following table provides summary data of Houston Electric’s single reportable segment:

	Three Months Ended March 31,
	2025	2024	Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues:
TDU	$884	$868	$16
Bond Companies	—	33	(33)
Total revenues	884	901	(17)
Expenses:
Operation and maintenance, excluding Bond Companies	448	437	(11)
Depreciation and amortization, excluding Bond Companies	179	167	(12)
Taxes other than income taxes	75	75	—
Bond Companies	—	32	32
Total expenses	702	711	9
Operating Income	182	190	(8)
Other Income (Expense):
Interest expense and other finance charges	(86)	(76)	(10)
Interest expense on Securitization Bonds	—	(1)	1
Other income, net	8	11	(3)
Income Before Income Taxes	104	124	(20)
Income tax expense	20	25	5
Net Income	$84	$99	$(15)
Throughput (in GWh):
Residential	6,274	5,624	12%
Total	23,802	22,005	8%
Weather (percentage of 10-year average for service area):
Cooling degree days	137%	104%	33%
Heating degree days	106%	92%	14%
Number of metered customers at end of period:
Residential	2,517,224	2,470,925	2%
Total	2,830,184	2,780,362	2%

The following table provides variance explanations for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 by major income statement caption for Houston Electric:

	Favorable (Unfavorable)
(in millions)
Revenues
Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below	$(10)
Customer rates and the impact of the change in rate design	14
Customer growth	5
Energy efficiency, partially offset in operations and maintenance below	1
Miscellaneous revenues	(2)
Equity return, related to the annual true-up of transition charges for amounts over or under collected in prior periods	(8)
Weather, efficiency improvements and other usage impacts	16
Bond Companies, offset in other line items below	(33)
Total	$(17)
Operation and maintenance, excluding Bond Companies
Transmission costs billed by transmission providers, offset in revenues above	$6
Contract services	—
All other operation and maintenance expense, including materials and supplies and insurance	(7)
Corporate support services	(8)
Energy efficiency, offset in revenues above	(1)
Labor and benefits	(1)
Total	$(11)
Depreciation and amortization, excluding Bond Companies
Ongoing additions to plant-in-service	$(12)
Total	$(12)
Bond Companies expense
Operations and maintenance and depreciation expense, offset in revenues above	$32
Total	$32
Interest expense and other finance charges
Changes in outstanding debt	$(18)
Other, primarily AFUDC and impacts of regulatory deferrals	8
Total	$(10)
Interest expense on Securitization Bonds
Lower outstanding principal balance, offset in revenues above	$1
Total	$1
Other income, net
Other income, including AFUDC - Equity	$(3)
Total	$(3)

CERC CONSOLIDATED RESULTS OF OPERATIONS

CERC’s CODM views net income as the measure of profit or loss for its single reportable segment. CERC’s results of operations are affected by seasonal fluctuations in the demand for natural gas. CERC’s results of operations are also affected by, among other things, the actions of various federal, state and local governmental authorities having jurisdiction over rates CERC charges, debt service costs and income tax expense, CERC’s ability to collect receivables from customers and CERC’s ability to recover its regulatory assets. For more information regarding factors that may affect the future results of operations for CERC’s business, see “Risk Factors — Risk Factors Affecting Operations — Natural Gas,” “— Risk Factors Affecting Regulatory, Environmental and Legal Risks,” “— Risk Factors Affecting Financial, Economic and Market Risks,” “— Risk Factors Affecting Safety and Security Risks” and “— General and Other Risks” in Part I, Item 1A of the Registrants’ combined 2024 Form 10-K.

	Three Months Ended March 31,
	2025	2024	Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues	$1,788	$1,512	$276
Expenses:
Utility natural gas	909	724	(185)
Non-utility cost of revenues, including natural gas	1	1	—
Operation and maintenance	256	226	(30)
Depreciation and amortization	142	127	(15)
Taxes other than income taxes	73	64	(9)
Total expenses	1,381	1,142	(239)
Operating Income	407	370	37
Other Income (Expense):
Gain on sale	52	—	52
Interest expense and other finance charges	(56)	(49)	(7)
Other income, net	2	3	(1)
Income Before Income Taxes	405	324	81
Income tax expense	100	60	(40)
Net Income	$305	$264	$41
Throughput (in Bcf):
Residential	115	71	62%
Commercial and Industrial	136	93	46%
Total	251	164	53%
Weather (percentage of 10-year average for service area):
Heating degree days	99%	82%	17%
Number of metered customers at end of period:
Residential	3,974,567	3,921,286	1%
Commercial and Industrial	295,417	292,398	1%
Total	4,269,984	4,213,684	1%

The following table provides variance explanations for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 by major income statement caption for CERC:

	Favorable (Unfavorable)
(in millions)
Revenues
Cost of natural gas, offset in utility natural gas below	$185
Energy efficiency and other pass-through, offset in operation and maintenance below	17
Gross receipts tax, offset in taxes other than income taxes below	6
Non-volumetric and miscellaneous revenue	2
Weather and usage	23
Customer growth	4
Non-utility revenues	3
Customer rates	36
Total	$276
Utility natural gas
Cost of natural gas, offset in revenues above	$(185)
Total	$(185)
Operation and maintenance
All other operations and maintenance expense, including bad debt expense	$(4)
Contract services	(3)
Labor and benefits	(4)
Corporate support services	(2)
Energy efficiency and other pass-through, offset in revenues above	$(17)
Total	$(30)
Depreciation and amortization
Ongoing additions to plant-in-service	$(15)
Total	$(15)
Taxes other than income taxes
Gross receipts tax, offset in revenues above	$(6)
Incremental capital projects placed in service, and the impact of updated property tax rates	(3)
Total	$(9)
Gain on sale
Gain on sale of Louisiana and Mississippi natural gas LDC businesses	$52
Total	$52
Interest expense and other finance charges
Other, primarily AFUDC and impacts of regulatory deferrals	$(1)
Changes in outstanding debt	(6)
Total	$(7)
Other income, net
Other income, including AFUDC - Equity	$(1)
Total	$(1)

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