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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Results of Operations by Reportable Segment
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 further 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 2025 Form 10-K.
The following table provides summary data of CenterPoint Energy’s Electric reportable segment:
| Three Months Ended March 31, | |||
|---|---|---|---|
| 2026 | 2025 | Favorable (Unfavorable) | |
| (in millions, except operating statistics) | |||
| Revenues | $1,209 | $1,066 | $143 |
| Expenses: | |||
| Utility natural gas, fuel and purchased power | 81 | 74 | (7) |
| Operation and maintenance | 513 | 484 | (29) |
| Depreciation and amortization | 269 | 210 | (59) |
| Taxes other than income taxes | 85 | 78 | (7) |
| Total expenses | 948 | 846 | (102) |
| Operating Income | 261 | 220 | 41 |
| Other Income (Expense): | |||
| Interest expense and other finance charges | (131) | (101) | (30) |
| Other income, net | 26 | 14 | 12 |
| Income Before Income Taxes | 156 | 133 | 23 |
| Income tax expense | 16 | 25 | 9 |
| Net Income | $140 | $108 | $32 |
| Throughput (in GWh): | |||
| Residential | 6,398 | 6,643 | (4)% |
| Total | 24,957 | 24,749 | 1% |
| Weather (percentage of normal weather for service area): | |||
| Cooling degree days | 219% | 138% | 81% |
| Heating degree days | 91% | 105% | (14)% |
| Number of metered customers at end of period: | |||
| Residential | 2,688,307 | 2,651,381 | 1% |
| Total | 3,023,460 | 2,983,906 | 1% |
The following table provides variance explanations for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 by major income statement caption for CenterPoint Energy’s Electric reportable segment:
| Favorable (Unfavorable) | |
|---|---|
| (in millions) | |
| Revenues | |
| Customer rates and the impact of the change in rate design | $49 |
| Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below | 53 |
| Customer growth | 5 |
| Energy efficiency, partially offset in operation and maintenance below | 1 |
| Pass-through revenues, offset in operation and maintenance below | 5 |
| Miscellaneous revenues, including service connections and off-system sales | 14 |
| Bond Companies and SIGECO Securitization Subsidiary, offset in other line items below | 25 |
| Weather, efficiency improvements and other usage impacts | (12) |
| Cost of fuel and purchased power, offset in utility natural gas, fuel and purchased power below | 3 |
| Total | $143 |
| Utility natural gas, fuel and purchased power | |
| Cost of purchased power, offset in revenues above | $24 |
| Cost of fuel, including coal, natural gas, and fuel oil, offset in revenues above | (31) |
| Total | $(7) |
| Operation and maintenance | |
| Transmission costs billed by transmission providers, offset in revenues above | $(28) |
| Contract services | (8) |
| Energy efficiency, and other pass-through, offset in revenues above | (2) |
| Corporate support services | (5) |
| Labor and benefits | 6 |
| All other operation and maintenance expense, including materials and supplies and insurance | 8 |
| Total | $(29) |
| Depreciation and amortization | |
| Ongoing additions to plant-in-service | $(29) |
| Amortization of regulatory assets | 9 |
| Lease expense associated with TEEEF units no longer eligible for regulatory deferral | (24) |
| Bond Companies and SIGECO Securitization Subsidiary, offset in other line items | (15) |
| Total | $(59) |
| Taxes other than income taxes | |
| Incremental capital projects placed in service, and the impact of updated property tax rates | $(7) |
| Total | $(7) |
| Interest expense and other finance charges | |
| Changes in outstanding debt | $(17) |
| Bond Companies and SIGECO Securitization Subsidiary, offset in other line items above | (10) |
| Other, primarily AFUDC and impacts of regulatory deferrals | (3) |
| Total | $(30) |
| Other income, net | |
| Other income, including AFUDC - equity | $12 |
| Total | $12 |
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 2025 Form 10-K.
The following table provides summary data of CenterPoint Energy’s Natural Gas reportable segment:
| Three Months Ended March 31, | |||
|---|---|---|---|
| 2026 | 2025 | Favorable (Unfavorable) | |
| (in millions, except operating statistics) | |||
| Revenues | $1,765 | $1,853 | $(88) |
| Expenses: | |||
| Utility natural gas and fuel | 890 | 933 | 43 |
| Non-utility cost of revenues, including natural gas | 1 | 1 | — |
| Operation and maintenance | 258 | 265 | 7 |
| Depreciation and amortization | 148 | 147 | (1) |
| Taxes other than income taxes | 71 | 74 | 3 |
| Total expenses | 1,368 | 1,420 | 52 |
| Operating Income | 397 | 433 | (36) |
| Other Income (Expense): | |||
| Loss on sale | — | (43) | 43 |
| Interest expense and other finance charges | (70) | (59) | (11) |
| Other income, net | 4 | 2 | 2 |
| Income Before Income Taxes | 331 | 333 | (2) |
| Income tax expense | 81 | 105 | 24 |
| Net Income | $250 | $228 | $22 |
| Throughput (in Bcf): | |||
| Residential | 95 | 118 | (19)% |
| Commercial and Industrial | 128 | 149 | (14)% |
| Total | 223 | 267 | (16)% |
| Weather (percentage of 10-year average for service area): | |||
| Heating degree days | 99% | 99% | —% |
| Number of metered customers at end of period: | |||
| Residential | 3,749,264 | 4,079,888 | (8)% |
| Commercial and Industrial | 288,159 | 306,075 | (6)% |
| Total | 4,037,423 | 4,385,963 | (8)% |
The following table provides variance explanations for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 by major income statement caption for CenterPoint Energy’s Natural Gas reportable segment:
| Favorable (Unfavorable) | |
|---|---|
| (in millions) | |
| Revenues | |
| Cost of natural gas, offset in utility natural gas and fuel below | $15 |
| Gross receipts tax, offset in taxes other than income taxes below | 3 |
| Weather and usage | (18) |
| Non-volumetric and miscellaneous revenue | 1 |
| Energy efficiency and other pass-through, offset in operation and maintenance below | 4 |
| Non-utility revenues | 1 |
| Customer growth | 5 |
| Customer rates and impact of the change in rate design | 49 |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | (148) |
| Total | $(88) |
| Utility natural gas and fuel | |
| Cost of natural gas, offset in revenues above | $(15) |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 58 |
| Total | $43 |
| Operation and maintenance | |
| All other operations and maintenance expense, including bad debt expense | $6 |
| Energy efficiency and other pass-through, offset in revenues above | (4) |
| Contract services | (15) |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 20 |
| Labor and benefits | (1) |
| Corporate support services | 1 |
| Total | $7 |
| Depreciation and amortization | |
| Ongoing additions to plant-in-service | $(18) |
| Amortization of regulatory assets | 3 |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 14 |
| Total | $(1) |
| Taxes other than income taxes | |
| Gross receipts tax, offset in revenues above | $(3) |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 8 |
| Incremental capital projects placed in service, and the impact of updated property tax rates | (2) |
| Total | $3 |
| Loss on sale | |
| Loss on sale of Louisiana and Mississippi natural gas LDC businesses | $43 |
| Total | $43 |
| Interest expense and other finance charges | |
| Changes in outstanding debt | $(23) |
| Other, primarily AFUDC and impacts of regulatory deferrals | 2 |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 10 |
| Total | $(11) |
| Other income, net | |
| Other income, including interest income from affiliated companies and AFUDC - Equity | 2 |
| 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.
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 2025 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, | |||
|---|---|---|---|
| 2026 | 2025 | Favorable (Unfavorable) | |
| (in millions, except operating statistics) | |||
| Revenues: | |||
| TDU | $964 | $884 | $80 |
| Bond Companies | 27 | — | 27 |
| Total revenues | 991 | 884 | 107 |
| Expenses: | |||
| Operation and maintenance, excluding Bond Companies | 472 | 448 | (24) |
| Depreciation and amortization, excluding Bond Companies | 215 | 179 | (36) |
| Taxes other than income taxes | 81 | 75 | (6) |
| Bond Companies | 17 | — | (17) |
| Total expenses | 785 | 702 | (83) |
| Operating Income | 206 | 182 | 24 |
| Other Income (Expense): | |||
| Interest expense and other finance charges | (100) | (86) | (14) |
| Interest expense on Securitization Bonds | (10) | — | (10) |
| Other income, net | 23 | 8 | 15 |
| Income Before Income Taxes | 119 | 104 | 15 |
| Income tax expense | 23 | 20 | (3) |
| Net Income | $96 | $84 | $12 |
| Throughput (in GWh): | |||
| Residential | 6,054 | 6,274 | (4)% |
| Total | 23,664 | 23,802 | (1)% |
| Weather (percentage of 10-year average for service area): | |||
| Cooling degree days | 209% | 137% | 72% |
| Heating degree days | 71% | 106% | (35)% |
| Number of metered customers at end of period: | |||
| Residential | 2,553,700 | 2,517,224 | 1% |
| Total | 2,869,089 | 2,830,184 | 1% |
The following table provides variance explanations for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 by major income statement caption for Houston Electric:
| Favorable (Unfavorable) | |
|---|---|
| (in millions) | |
| Revenues | |
| Customer rates and the impact of the change in rate design | $25 |
| Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below | 53 |
| Customer growth | 5 |
| Energy efficiency, partially offset in both operation and maintenance below | 1 |
| Miscellaneous revenues | 5 |
| Weather, efficiency improvements and other usage impacts | (9) |
| Bond Companies, offset in other line items below | 27 |
| Total | $107 |
| Operation and maintenance, excluding Bond Companies | |
| Transmission costs billed by transmission providers, offset in revenues above | $(28) |
| Contract services | (5) |
| Energy efficiency, offset in revenues above | (1) |
| Corporate support services | (5) |
| Labor and benefits | 7 |
| All other operation and maintenance expense, including materials and supplies and insurance | 8 |
| Total | $(24) |
| Depreciation and amortization, excluding Bond Companies | |
| Ongoing additions to plant-in-service | $(22) |
| Amortization of regulatory assets | 10 |
| Lease expense associated with TEEEF units no longer eligible for regulatory deferral | (24) |
| Total | $(36) |
| Taxes other than income taxes | |
| Incremental capital projects placed in service, and the impact of changes to tax rates | $(6) |
| Total | $(6) |
| Bond Companies | |
| Operations and maintenance and depreciation expense, offset in revenues above | $(17) |
| Total | $(17) |
| Interest expense and other finance charges | |
| Changes in outstanding debt | $(12) |
| Other, primarily AFUDC and impacts of regulatory deferrals | (2) |
| Total | $(14) |
| Interest expense on Securitization Bonds | |
| Change in outstanding principal balance, offset in revenues above | $(10) |
| Total | $(10) |
| Other income, net | |
| Other income, including AFUDC - Equity | $15 |
| Total | $15 |
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 2025 Form 10-K.
| Three Months Ended March 31, | |||
|---|---|---|---|
| 2026 | 2025 | Favorable (Unfavorable) | |
| (in millions, except operating statistics) | |||
| Revenues | $1,697 | $1,788 | $(91) |
| Expenses: | |||
| Utility natural gas | 865 | 909 | 44 |
| Non-utility cost of revenues, including natural gas | 1 | 1 | — |
| Operation and maintenance | 249 | 256 | 7 |
| Depreciation and amortization | 142 | 142 | — |
| Taxes other than income taxes | 70 | 73 | 3 |
| Total expenses | 1,327 | 1,381 | 54 |
| Operating Income | 370 | 407 | (37) |
| Other Income (Expense): | |||
| Gain on sale | — | 52 | (52) |
| Interest expense and other finance charges | (66) | (56) | (10) |
| Other income, net | 3 | 2 | 1 |
| Income Before Income Taxes | 307 | 405 | (98) |
| Income tax expense | 77 | 100 | 23 |
| Net Income | $230 | $305 | $(75) |
| Throughput (in Bcf): | |||
| Residential | 92 | 115 | (20)% |
| Commercial and Industrial | 116 | 136 | (15)% |
| Total | 208 | 251 | (17)% |
| Weather (percentage of 10-year average for service area): | |||
| Heating degree days | 99% | 99% | —% |
| Number of metered customers at end of period: | |||
| Residential | 3,643,839 | 3,974,567 | (8)% |
| Commercial and Industrial | 277,517 | 295,417 | (6)% |
| Total | 3,921,356 | 4,269,984 | (8)% |
The following table provides variance explanations for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 by major income statement caption for CERC:
| Favorable (Unfavorable) | |
|---|---|
| (in millions) | |
| Revenues | |
| Cost of natural gas, offset in utility natural gas, fuel and purchased power below | $15 |
| Gross receipts tax, offset in taxes other than income taxes below | 3 |
| Weather and usage | (18) |
| Energy efficiency and other pass-through, offset in operation and maintenance below | 4 |
| Non-volumetric and miscellaneous revenue | 1 |
| Non-utility revenues | 1 |
| Customer growth | 4 |
| Customer rates | 47 |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | $(148) |
| Total | $(91) |
| Utility natural gas | |
| Cost of natural gas, offset in revenues above | $(15) |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 59 |
| Total | $44 |
| Operation and maintenance | |
| All other operations and maintenance expense, including bad debt expense | $5 |
| Energy efficiency and other pass-through, offset in revenues above | (4) |
| Contract services | (14) |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 20 |
| Labor and benefits | (1) |
| Corporate support services | 1 |
| Total | $7 |
| Depreciation and amortization | |
| Ongoing additions to plant-in-service | $(17) |
| Amortization of regulatory assets | 3 |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 14 |
| Total | $— |
| Taxes other than income taxes | |
| Gross receipts tax, offset in revenues above | $(3) |
| Incremental capital projects placed in service, and the impact of updated property tax rates | (2) |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 8 |
| Total | $3 |
| Gain on sale | |
| Gain on sale of Louisiana and Mississippi natural gas LDC businesses | $(52) |
| Total | $(52) |
| Interest expense and other finance charges | |
| Changes in outstanding debt | $(20) |
| Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025 | 10 |
| Total | $(10) |
| Other income, net | |
| Other income, including interest income from affiliated companies and AFUDC - Equity | $1 |
| Total | $1 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.