CENTERPOINT ENERGY HOUSTON ELECTRIC LLC
For the period ended Mar 31, 2026. Filed Apr 23, 2026.
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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, 2026 · Filed Apr 23, 2026
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(13) Reportable Segments
The Registrants’ determination of reportable segments considers the strategic operating units under which the CODM manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments.
As of March 31, 2026, reportable segments by Registrant and information about each Registrant’s CODM were as follows:
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’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.
Financial data for reportable segments is as follows for the periods presented:
| Three Months Ended March 31, 2026 | ||||||
|---|---|---|---|---|---|---|
| Electric | Natural Gas | Corporate and Other | Total Reportable Segments | Eliminations | Total | |
| (in millions) | ||||||
| Revenues from external customers | $1,209 | $1,764 | $2 | $2,975 | $— | $2,975 |
| Intersegment revenues | — | 1 | 1 | 2 | (2) | — |
| Utility natural gas, fuel and purchased power | 81 | 890 | — | 971 | (1) | 970 |
| Non-utility cost of revenues, including natural gas | — | 1 | — | 1 | — | 1 |
| Operation and maintenance expenses | 513 | 258 | (4) | 767 | (1) | 766 |
| Depreciation and amortization | 269 | 148 | 6 | 423 | — | 423 |
| Taxes other than income taxes | 85 | 71 | 1 | 157 | — | 157 |
| Interest expense and other finance charges | 131 | 70 | 87 | 288 | (9) | 279 |
| Interest income (1) | (4) | — | (8) | (12) | 9 | (3) |
| Other income, net (2) | (22) | (4) | (1) | (27) | — | (27) |
| Income tax expense (benefit) | 16 | 81 | (4) | 93 | — | 93 |
| Net income (loss) | $140 | $250 | $(74) | $316 | $— | $316 |
| Three Months Ended March 31, 2025 | ||||||
|---|---|---|---|---|---|---|
| Electric | Natural Gas | Corporate and Other | Total Reportable Segments | Eliminations | Total | |
| (in millions) | ||||||
| Revenues from external customers | $1,066 | $1,852 | $2 | $2,920 | $— | $2,920 |
| Intersegment revenues | — | 1 | — | 1 | (1) | — |
| Utility natural gas, fuel and purchased power | 74 | 933 | — | 1,007 | (1) | 1,006 |
| Non-utility cost of revenues, including natural gas | — | 1 | — | 1 | — | 1 |
| Operation and maintenance expenses | 484 | 265 | (2) | 747 | — | 747 |
| Depreciation and amortization | 210 | 147 | 6 | 363 | — | 363 |
| Taxes other than income taxes | 78 | 74 | 2 | 154 | — | 154 |
| Interest expense and other finance charges | 101 | 59 | 85 | 245 | (7) | 238 |
| Income tax expense (benefit) | 25 | 105 | (49) | 81 | — | 81 |
| Interest income (1) | (4) | (2) | (7) | (13) | 7 | (6) |
| Other expense (income), net (2) | (10) | 43 | 6 | 39 | — | 39 |
| Net income (loss) | $108 | $228 | $(39) | $297 | $— | $297 |
(1) Interest income earned on cash and cash equivalents related to VIEs of less than $1 million for each of the three months ended March 31, 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 | ||
|---|---|---|
| Three Months Ended March 31, | ||
| 2026 | 2025 | |
| (in millions) | ||
| Electric | $834 | $971 |
| Natural Gas | 332 | 363 |
| Corporate and Other | 8 | 6 |
| Consolidated | $1,174 | $1,340 |
| Total Assets | ||
|---|---|---|
| March 31, 2026 | December 31, 2025 | |
| (in millions) | ||
| Electric | $28,051 | $26,649 |
| Natural Gas | 18,399 | 18,405 |
| Corporate and Other (1) | 1,387 | 1,480 |
| Consolidated | $47,837 | $46,534 |
(1)Total assets included pension and other postemployment-related regulatory assets of $377 million and $383 million as of March 31, 2026 and December 31, 2025, respectively.
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 $768 million and $579 million for the three months ended March 31, 2026 and 2025, respectively. Financial data related to interest income is as follows:
| Three Months Ended March 31, | ||
|---|---|---|
| 2026 | 2025 | |
| (in millions) | ||
| Interest income (1) | $3 | $2 |
(1)Reflected in Other income (expense), 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 each of the three months ended March 31, 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 $319 million and $291 million for the three months ended March 31, 2026 and 2025, respectively. Financial data related to interest income is as follows:
| Three Months Ended March 31, | ||
|---|---|---|
| 2026 | 2025 | |
| (in millions) | ||
| Interest income (1) | $— | $1 |
(1)Reflected in Other income (expense), net on CERC’s Condensed Statements of Consolidated Income.
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