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CENTERPOINT ENERGY HOUSTON ELECTRIC LLC

For the period ended Jun 30, 2026. Filed Jul 28, 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.

Jun 30, 2026 · Filed Jul 28, 2026

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

Extracted filing text, with the paragraph anchors used by the comparison.

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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 June 30,Six Months Ended June 30,
20262025Favorable (Unfavorable)20262025Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues$1,372$1,191$181$2,581$2,257$324
Expenses:
Utility natural gas, fuel and purchased power6765(2)148139(9)
Operation and maintenance532523(9)1,0451,007(38)
Depreciation and amortization283230(53)552440(112)
Taxes other than income taxes8380(3)168158(10)
Total expenses965898(67)1,9131,744(169)
Operating Income407293114668513155
Other Income (Expense):
Interest expense and other finance charges(138)(106)(32)(269)(207)(62)
Other income, net2325(2)493910
Income Before Income Taxes29221280448345103
Income tax expense5541(14)7166(5)
Net Income$237$171$66$377$279$98
Throughput (in GWh):
Residential9,3849,588(2)%15,78216,231(3)%
Total30,30630,313—%55,26355,064—%
Weather (percentage of normal weather for service area):
Cooling degree days105%114%(9)%116%117%(1)%
Heating degree days59%80%(21)%88%101%(13)%
Number of metered customers at end of period:
Residential2,705,1112,663,3652%2,705,1112,663,3652%
Total3,042,2312,996,7322%3,042,2312,996,7322%

The following table provides variance explanations for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 as well as for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 by major income statement caption for CenterPoint Energy’s Electric reportable segment:

Favorable (Unfavorable)
Three Months Ended June 30, 2026 vs 2025Six Months Ended June 30, 2026 vs 2025
(in millions)
Revenues
Customer rates and the impact of the change in rate design$82$131
Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below3689
Customer growth712
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(3)11
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items below6287
Weather, efficiency improvements and other usage impacts(4)(16)
Cost of fuel and purchased power, offset in utility natural gas, fuel and purchased power below69
Total$181$324
Utility natural gas, fuel and purchased power
Cost of purchased power, offset in revenues above$—$24
Cost of fuel, including coal, natural gas, and fuel oil, offset in revenues above(2)(33)
Total$(2)$(9)
Operation and maintenance
Transmission costs billed by transmission providers, offset in revenues above$(19)$(47)
Contract services124
Energy efficiency, and other pass-through, offset in revenues above—(2)
Corporate support services42
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items(2)(2)
Labor and benefits511
All other operation and maintenance expense, including materials and supplies and insurance(9)(4)
Total$(9)$(38)
Depreciation and amortization
Ongoing additions to plant-in-service$(29)$(58)
Amortization of regulatory assets2837
Lease expense associated with TEEEF units no longer eligible for regulatory deferral(10)(34)
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items(42)(57)
Total$(53)$(112)
Taxes other than income taxes
Incremental capital projects placed in service, and the impact of updated property tax rates$(3)$(10)
Total$(3)$(10)
Interest expense and other finance charges
Changes in outstanding debt$(9)$(26)
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items above(18)(28)
Other, primarily AFUDC and impacts of regulatory deferrals(5)(8)
Total$(32)$(62)
Other income, net
Other income, including AFUDC - equity and intersegment interest income$(2)$10
Total$(2)$10

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 June 30,Six Months Ended June 30,
20262025Favorable (Unfavorable)20262025Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues$777$751$26$2,542$2,604$(62)
Expenses:
Utility natural gas and fuel214236221,1041,16965
Non-utility cost of revenues, including natural gas—22132
Operation and maintenance212195(17)470460(10)
Depreciation and amortization157137(20)305284(21)
Taxes other than income taxes6456(8)135130(5)
Total expenses647626(21)2,0152,04631
Operating Income1301255527558(31)
Other Income (Expense):
Loss on sale————(43)43
Interest expense and other finance charges(46)(43)(3)(116)(102)(14)
Other income, net715(8)1117(6)
Income Before Income Taxes9197(6)422430(8)
Income tax expense1111—9211624
Net Income$80$86$(6)$330$314$16
Throughput (in Bcf):
Residential2225(12)%117143(18)%
Commercial and Industrial8186(6)%209234(11)%
Total103111(7)%326377(14)%
Weather (percentage of 10-year average for service area):
Heating degree days84%88%(4)%90%97%(7)%
Number of metered customers at end of period:
Residential3,739,2763,714,6721%3,739,2763,714,6721%
Commercial and Industrial285,466279,5262%285,466279,5262%
Total4,024,7423,994,1981%4,024,7423,994,1981%

The following table provides variance explanations for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 as well as for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 by major income statement caption for CenterPoint Energy’s Natural Gas reportable segment:

Favorable (Unfavorable)
Three Months Ended June 30, 2026 vs 2025Six Months Ended June 30, 2026 vs 2025
(in millions)
Revenues
Cost of natural gas, offset in utility natural gas and fuel below$(21)$(6)
Gross receipts tax, offset in taxes other than income taxes below25
Weather and usage(2)(20)
Non-volumetric and miscellaneous revenue67
Energy efficiency and other pass-through, offset in operation and maintenance below37
Non-utility revenues12
Customer growth27
Customer rates and impact of the change in rate design3584
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—(148)
Total$26$(62)
Utility natural gas and fuel
Cost of natural gas, offset in revenues above$22$7
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—58
Total$22$65
Operation and maintenance
All other operations and maintenance expense, including bad debt expense$(15)$(16)
Energy efficiency and other pass-through, offset in revenues above(3)(7)
Contract services(5)(13)
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—20
Labor and benefits43
Corporate support services23
Total$(17)$(10)
Depreciation and amortization
Ongoing additions to plant-in-service$(17)$(37)
Amortization of regulatory assets(3)2
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—14
Total$(20)$(21)
Taxes other than income taxes
Gross receipts tax, offset in revenues above$(2)$(5)
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—8
Incremental capital projects placed in service, and the impact of updated property tax rates(6)(8)
Total$(8)$(5)
Loss on sale
Loss on sale of Louisiana and Mississippi natural gas LDC businesses$—$43
Total$—$43
Interest expense and other finance charges
Changes in outstanding debt$(12)$(35)
Other, primarily AFUDC and impacts of regulatory deferrals911
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—10
Total$(3)$(14)
Other income, net
Other income, including AFUDC - Equity and intersegment interest income$(8)$(6)
Total$(8)$(6)

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 June 30,Six Months Ended June 30,
20262025Favorable (Unfavorable)20262025Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues:
TDU$1,104$1,008$96$2,068$1,892$176
Bond Companies63—6390—90
Total revenues1,1671,0081592,1581,892266
Expenses:
Operation and maintenance, excluding Bond Companies490482(8)962930(32)
Depreciation and amortization, excluding Bond Companies202196(6)417375(42)
Taxes other than income taxes8278(4)163153(10)
Bond Companies45—(45)62—(62)
Total expenses819756(63)1,6041,458(146)
Operating Income34825296554434120
Other Income (Expense):
Interest expense and other finance charges(99)(90)(9)(199)(176)(23)
Interest expense on Securitization Bonds(18)—(18)(28)—(28)
Other income, net19154422319
Income Before Income Taxes2501777336928188
Income tax expense4836(12)7156(15)
Net Income$202$141$61$298$225$73
Throughput (in GWh):
Residential9,0719,272(2)%15,12515,545(3)%
Total29,02029,109—%52,68452,913—%
Weather (percentage of 10-year average for service area):
Cooling degree days106%117%(11)%119%120%(1)%
Heating degree days64%110%(46)%105%92%13%
Number of metered customers at end of period:
Residential2,570,2292,528,9812%2,570,2292,528,9812%
Total2,887,5192,842,7182%2,887,5192,842,7182%

The following table provides variance explanations for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 as well as for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 by major income statement caption for Houston Electric:

Favorable (Unfavorable)
Three Months Ended June 30, 2026 vs 2025Six Months Ended June 30, 2026 vs 2025
(in millions)
Revenues
Customer rates and the impact of the change in rate design$63$88
Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below3689
Customer growth611
Energy efficiency, partially offset in both operation and maintenance below—1
Miscellaneous revenues—5
Weather, efficiency improvements and other usage impacts(9)(18)
Bond Companies, offset in other line items below6390
Total$159$266
Operation and maintenance, excluding Bond Companies
Transmission costs billed by transmission providers, offset in revenues above$(19)$(47)
Contract services116
Energy efficiency, offset in revenues above—(1)
Corporate support services42
Labor and benefits613
All other operation and maintenance expense, including materials and supplies and insurance(10)(5)
Total$(8)$(32)
Depreciation and amortization, excluding Bond Companies
Ongoing additions to plant-in-service$(24)$(46)
Amortization of regulatory assets2737
Lease expense associated with TEEEF units no longer eligible for regulatory deferral(9)(33)
Total$(6)$(42)
Taxes other than income taxes
Incremental capital projects placed in service, and the impact of changes to tax rates$(4)$(10)
Total$(4)$(10)
Bond Companies
Operations and maintenance and depreciation expense, offset in revenues above$(45)$(62)
Total$(45)$(62)
Interest expense and other finance charges
Changes in outstanding debt$(6)$(18)
Other, primarily AFUDC and impacts of regulatory deferrals(3)(5)
Total$(9)$(23)
Interest expense on Securitization Bonds
Change in outstanding principal balance, offset in revenues above$(18)$(28)
Total$(18)$(28)
Other income, net
Other income, including AFUDC - equity and affiliate interest income$4$19
Total$4$19

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

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 June 30,Six Months Ended June 30,
20262025Favorable (Unfavorable)20262025Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues$760$731$29$2,457$2,519$(62)
Expenses:
Utility natural gas211231201,0761,14064
Non-utility cost of revenues, including natural gas—22132
Operation and maintenance203187(16)452443(9)
Depreciation and amortization151131(20)293273(20)
Taxes other than income taxes6456(8)134129(5)
Total expenses629607(22)1,9561,98832
Operating Income1311247501531(30)
Other Income (Expense):
Gain on sale————52(52)
Interest expense and other finance charges(44)(39)(5)(110)(95)(15)
Other income, net612(6)914(5)
Income Before Income Taxes9397(4)400502(102)
Income tax expense1111—8811123
Net Income$82$86$(4)$312$391$(79)
Throughput (in Bcf):
Residential2224(8)%114139(18)%
Commercial and Industrial7175(5)%187211(11)%
Total9399(6)%301350(14)%
Weather (percentage of 10-year average for service area):
Heating degree days85%88%(3)%90%97%(7)%
Number of metered customers at end of period:
Residential3,634,4233,609,9241%3,634,4233,609,9241%
Commercial and Industrial274,846268,9042%274,846268,9042%
Total3,909,2693,878,8281%3,909,2693,878,8281%

The following table provides variance explanations for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 as well as for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 by major income statement caption for CERC:

Favorable (Unfavorable)
Three Months Ended June 30, 2026 vs 2025Six Months Ended June 30, 2026 vs 2025
(in millions)
Revenues
Cost of natural gas, offset in utility natural gas, fuel and purchased power below$(20)$(5)
Gross receipts tax, offset in taxes other than income taxes below25
Weather and usage(2)(20)
Energy efficiency and other pass-through, offset in operation and maintenance below48
Non-volumetric and miscellaneous revenue67
Non-utility revenues12
Customer growth37
Customer rates and impact of the change in rate design3582
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—(148)
Total$29$(62)
Utility natural gas
Cost of natural gas, offset in revenues above$20$5
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—59
Total$20$64
Operation and maintenance
All other operations and maintenance expense, including bad debt expense$(14)$(16)
Energy efficiency and other pass-through, offset in revenues above(4)(8)
Contract services(4)(11)
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—20
Labor and benefits43
Corporate support services23
Total$(16)$(9)
Depreciation and amortization
Ongoing additions to plant-in-service$(17)$(36)
Amortization of regulatory assets(3)2
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—14
Total$(20)$(20)
Taxes other than income taxes
Gross receipts tax, offset in revenues above$(2)$(5)
Incremental capital projects placed in service, and the impact of updated property tax rates(4)(6)
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025(2)6
Total$(8)$(5)
Gain on sale
Gain on sale of Louisiana and Mississippi natural gas LDC businesses$—$(52)
Total$—$(52)
Interest expense and other finance charges
Changes in outstanding debt$(13)$(35)
Other, primarily AFUDC and impacts of regulatory deferrals810
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—10
Total$(5)$(15)
Other income, net
Other income, including AFUDC - Equity and affiliate interest income$(6)$(5)
Total$(6)$(5)

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

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.