CENTERPOINT ENERGY HOUSTON ELECTRIC LLC

Previous wording

Large-Load Customers. The PUCT has begun the process of implementing Texas Senate Bill 6 through various rulemaking processes, focused on establishing financial, operational, and interconnection requirements for large-load customers to ensure grid reliability and prevent stranded infrastructure costs. On June 18, 2026, the PUCT approved ERCOT’s Batch Zero process for large-user connection requests with the stated goal of ensuring large electricity users like data centers only connect in quantities and locations the Texas grid can reliably support. Houston Electric estimates that approximately 14 gigawatts of its potential large-load customers are eligible to be considered part of ERCOT’s Batch Zero process, including the execution of Facilities Extension Agreements with Houston Electric and posting of financial security. The amount of gigawatts ultimately connected to the Houston Electric system, the actual amount of electricity ultimately used by these customers, and the ultimate timing of these additional load connections and energization, if at all, remain uncertain due to a variety of factors, including, but not limited to ERCOT approval into Batch Zero, including into base load or studied load, timing of construction, potential legislative, regulatory, and other government actions, and availability of materials. In the third quarter of 2026, customers provided or committed approximately $900 million in either contributions in aid of construction or financial security to Houston Electric, a portion of which may be returned to large-load customers depending on project outcomes and contractual requirements. These amounts will continue to change as projects move through ERCOT reviews, load allocations are refined, and customers either advance toward construction and energization or exit the process.

Current wording

Large-Load Customers. The PUCT has begun the process of implementing Texas Senate Bill 6 through various rulemaking processes, focused on establishing financial, operational, and interconnection requirements for large-load customers to ensure grid reliability and prevent stranded infrastructure costs. On June 18, 2026, the PUCT approved ERCOT’s Batch Zero process for large-user connection requests with the stated goal of ensuring large electricity users like data centers only connect in quantities and locations the Texas grid can reliably support. Houston Electric originally submitted approximately 14 gigawatts of demand related to its potential large-load customers as part of ERCOT’s Batch Zero process, which included the execution of Facilities Extension Agreements with Houston Electric and posting of financial security by the customers. Houston Electric estimates that 10 gigawatts of its previously submitted base load demand and approximately two gigawatts of its previously submitted studied load demand remain as part of ERCOT’s Batch Zero process. The amount of gigawatts ultimately connected to the Houston Electric system, the actual amount of electricity ultimately used by these customers, and the ultimate timing of these additional load connections and energization, if at all, remain uncertain due to a variety of factors, including, but not limited to, ERCOT approval into Batch Zero, including into base load or studied load, timing of construction, legislative, regulatory and other government actions, and availability of materials. In the third quarter of 2026, customers provided approximately $290 million in contributions in aid of construction and approximately $600 million in financial security to Houston Electric, of which approximately $135 million was returned to large-load customers during the period. These amounts will continue to change as projects move through ERCOT reviews, load allocations are refined, and customers either advance toward construction and energization or exit the process.

Previous wording

CenterPoint Energy Appointment of Chief Accounting Officer. On February 23, 2026, CenterPoint Energy announced the appointment of Russell K. Wright to the position of Vice President and Chief Accounting Officer of CenterPoint Energy, effective March 2, 2026.

Current wording

CenterPoint Energy Appointment of Chief Human Resources Officer. Effective October 1, 2026, CenterPoint Energy appointed Lauren C. Clark to the position of Executive Vice President and Chief Human Resources Officer of CenterPoint Energy.

Previous wording

Updated 10-Year Capital Plan. In July 2026, CenterPoint Energy announced an increase in its 10-year capital plan of $1.2 billion to reflect total planned capital expenditures of approximately $66.7 billion through 2035. The plan is expected to advance economic growth, enhance the experience of the Registrants’ customers and deliver consistent value for stakeholders across the Registrants’ jurisdictions.

Current wording

Updated 10-Year Capital Plan. In October 2026, CenterPoint Energy announced an increase in its 10-year capital plan of $4 billion to reflect total planned capital expenditures of approximately $70.7 billion through 2035. The plan is expected to advance economic growth, enhance the experience of the Registrants’ customers and deliver consistent value for stakeholders across the Registrants’ jurisdictions.

Previous wording

Equity Distribution Agreement. On May 15, 2026, CenterPoint Energy entered into the 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. Sales of Common Stock under the 2026 Equity Distribution Agreement 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 pursuant to master forward confirmations and related supplemental confirmations. Upon entry into the Equity Distribution Agreement, CenterPoint Energy terminated the previous at-the-market program pursuant to the 2024 Equity Distribution Agreement. For further information, see Note 15 to the Interim Condensed Financial Statements.

Current wording

Equity Distribution Agreement. On May 15, 2026, CenterPoint Energy entered into the 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. Sales of Common Stock under the 2026 Equity Distribution Agreement 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 pursuant to master forward confirmations and related supplemental confirmations. Upon entry into the 2026 Equity Distribution Agreement, CenterPoint Energy terminated the previous at-the-market program pursuant to the 2024 Equity Distribution Agreement. For further information, see Note 15 to the Interim Condensed Financial Statements.

Previous wording

TEEEF. In June 2025, Houston Electric entered into the ERCOT Transaction, subject to PUCT approval, to release its 15 large (27 MW to 32 MW) TEEEF units to ERCOT at CPS Energy facilities to serve the greater San Antonio region until March 2027 unless terminated earlier pursuant to the provisions of the ERCOT Transaction, reduce its TEEEF fleet capacity and reduce its rates to reflect removal of the large TEEEF units from its fleet. Following the completion of service in the San Antonio area, Houston Electric anticipates that it would complete one or more future transactions involving its large TEEEF units. As the large TEEEF units would not be available to serve Houston Electric customers during such time, Houston Electric plans to continue to not charge customers for these units for any future periods. In November 2025, Houston Electric proposed to remove its five medium (5.7 MW) TEEEF units and to remove the associated lease costs from its rates effective January 1,

Current wording

TEEEF. In June 2025, Houston Electric entered into the ERCOT Transaction, subject to PUCT approval, to release its 15 large (27 MW to 32 MW) TEEEF units to ERCOT at CPS Energy facilities to serve the greater San Antonio region until March 2027 unless terminated earlier pursuant to the provisions of the ERCOT Transaction, reduce its TEEEF fleet capacity and reduce its rates to reflect removal of the large TEEEF units from its fleet. Following the completion of service in the San Antonio area, Houston Electric anticipates that it would complete one or more future transactions involving its large TEEEF units. As the large TEEEF units would not be available to serve Houston Electric customers during such time, Houston Electric plans to continue to not charge customers for these units for any future periods. In November 2025, Houston Electric proposed to remove its five medium (5.7 MW) TEEEF units and to remove the associated lease costs from its rates effective January 1, 2026. 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 October 9, 2026, the ALJ filed a revised proposed order, reflecting the previously implemented interim rates; assignment to a PUCT open meeting agenda is pending. For additional information, see Note 6 to the Interim Condensed Financial Statements.

Previous wording

Net income (loss) for the three and six months ended June 30, 2026 and 2025 was as follows:

Current wording

Net income (loss) for the three and nine months ended September 30, 2026 and 2025 was as follows:

Previous wording

Net income increased $46 million primarily due to the following items:

Current wording

Net income increased $38 million primarily due to the following items:

Previous wording

•an increase in net income of $66 million for the Electric reportable segment, as further discussed below;

Current wording

•an increase in net income of $69 million for the Electric reportable segment, as further discussed below;

Previous wording

•a decrease in net income of $6 million for the Natural Gas reportable segment, as further discussed below; and

Current wording

•a decrease in net income of $27 million for the Natural Gas reportable segment, as further discussed below; and

Previous wording

•an increase in net loss of $14 million for the Corporate and Other reportable segment, primarily due to a $21 million gain on the early extinguishment of debt recognized during the second quarter of 2025 that did not recur, an increase in operating expense and the unfavorable net impact of the mark-to-market valuations on the ZENS indexed debt securities derivative and ZENS-related securities, partially offset by $4 million from a release of a state unrecognized tax benefit upon statute of limitations expiration and $1 million of lower borrowing costs.

Current wording

•an increase in net loss of $4 million for the Corporate and Other reportable segment, primarily due to a $6 million increase in borrowing costs and the unfavorable net impact of the mark-to-market valuations on the ZENS indexed debt securities derivative and ZENS-related securities.

Previous wording

Net income increased $65 million primarily due to the following items:

Current wording

Net income increased $103 million primarily due to the following items:

Previous wording

•an increase in net income of $98 million for the Electric reportable segment, as further discussed below;

Current wording

•an increase in net income of $167 million for the Electric reportable segment, as further discussed below;

Previous wording

•an increase in net income of $16 million for the Natural Gas reportable segment, as further discussed below; and

Current wording

•a decrease in net income of $11 million for the Natural Gas reportable segment, as further discussed below; and

Previous wording

•an increase in net loss of $49 million for the Corporate and Other reportable segment, due to an $18 million tax benefit recognized in 2025 related to the sale of the Louisiana and Mississippi natural gas businesses that did not recur, a $21 million accrued tax expense related to the anticipated divestiture of the Ohio natural gas business expected to close in the fourth quarter of 2026, a $21 million gain on the early extinguishment of debt recognized in 2025 that did not recur, and the unfavorable net impact of the mark-to-market valuations on the ZENS indexed debt securities derivative and ZENS-related securities, partially offset by a $4 million release of a state unrecognized tax benefit upon the expiration of the statute of limitations. The remaining variance is primarily driven by income taxes and intersegment interest.

Current wording

•an increase in net loss of $53 million for the Corporate and Other reportable segment, primarily due to an $18 million tax benefit recognized in 2025 related to the sale of the Louisiana and Mississippi natural gas LDC businesses that did not recur, a $21 million accrued tax expense related to the divestiture of the Ohio natural gas LDC business, a $21 million gain on the early extinguishment of debt recognized in 2025 that did not recur, and a $5 million increase in borrowing costs partially offset by lower income tax expense and lower intersegment interest expense.

Previous wording

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:

Current wording

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

Previous wording

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:

Current wording

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

Previous wording

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:

Current wording

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

Previous wording

The following table summarizes the Registrants’ cash flows by category for the period presented:

Current wording

The following table summarizes the Registrants’ cash flows by category for the periods presented:

Previous wording

Operating Activities. The following items contributed to increased (decreased) net cash provided by operating activities for the six months ended June 30, 2026 compared to the six months ended June 30, 2025:

Current wording

Operating Activities. The following items contributed to increased (decreased) net cash provided by operating activities for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025:

Previous wording

Investing Activities. The following items contributed to (increased) decreased net cash used in investing activities for the six months ended June 30, 2026 compared to the six months ended June 30, 2025:

Current wording

Investing Activities. The following items contributed to (increased) decreased net cash used in investing activities for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025:

Previous wording

Financing Activities. The following items contributed to (increased) decreased net cash provided by (used in) financing activities for the six months ended June 30, 2026 compared to the six months ended June 30, 2025:

Current wording

Financing Activities. The following items contributed to (increased) decreased net cash provided by (used in) financing activities for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025:

Previous wording

The Registrants expect that anticipated cash needs for the remainder of 2026 will be met with available cash flow from operations, proceeds from the sale of our Ohio natural gas LDC business, contributions in aid of construction as well as cash flows from financing (such as issuances of debt securities and equity securities upon physical settlement of outstanding forward sale agreements and borrowings under credit facilities, commercial paper issuances or other sources). At this time, CenterPoint Energy does not anticipate the need for any sales of shares of Common Stock under the 2026 Equity Distribution Agreement in 2026. The issuance of securities in the capital markets and borrowings under additional credit facilities and term loans may not, however, be available on acceptable terms. The Registrants may, from time to time, redeem, repurchase or otherwise acquire their outstanding debt securities through open market purchases, tender offers or pursuant to the terms of such securities.

Current wording

The Registrants expect that anticipated cash needs for the remainder of 2026 will be met with available cash flow from operations, proceeds from the sale of our Ohio natural gas LDC business, which closed on October 1, 2026, as well as cash flows from financing (such as issuances of debt securities and equity securities upon physical settlement of outstanding forward sale agreements and borrowings under credit facilities, commercial paper issuances or other sources). At this time, CenterPoint Energy does not anticipate the need for any sales of shares of Common Stock under the 2026 Equity Distribution Agreement in 2026. The issuance of securities in the capital markets and borrowings under additional credit facilities and term loans may not, however, be available on acceptable terms. The Registrants may, from time to time, redeem, repurchase or otherwise acquire their outstanding debt securities through open market purchases, tender offers or pursuant to the terms of such securities.

Previous wording

While Indiana Electric’s 2025 IRP (similar to previous IRPs) preferred portfolios included the retirement of F.B. Culley Unit 2, a coal-fired generation unit, by the end of 2025, the U.S. Department of Energy issued emergency 202(c) orders (the “DOE Order”) in December 2025, March 2026 and June 2026 directing Indiana Electric to continue operating the unit through September 19, 2026. Indiana Electric has filed a complaint with the FERC to request creation of a cost recovery/cost allocation mechanism. On March 19, 2026, FERC directed MISO to adopt a tariff amendment that would authorize the F.B. Culley unit to recover costs across load-serving entities situated in MISO’s north and central local reliability zones, otherwise known as MISO North and Central. A separate filing will be made at a later date with the FERC to seek recovery of all costs incurred to comply with the U.S. Department of Energy’s emergency 202(c) orders. Indiana Electric has also filed an application with the IURC in Cause No. 46350 to recover any compliance costs associated with the emergency 202(c) orders that are not recovered through the FERC proceedings. On April 15, 2026, Indiana Electric filed a Motion to Intervene in the United States Court of Appeals for the D.C. Circuit in response to the Public Interest Organizations’ appeal of the December 2025 DOE Order. Indiana Electric intervened as the owner of F.B. Culley 2 that is the subject of the DOE Order representing Indiana Electric’s authority to recover the costs it has incurred to comply with the DOE Order. On May 8, 2026, the D.C. Circuit granted Indiana Electric’s motion to intervene and consolidated Indiana Electric’s case with the Public Interest Organizations’ appeal of the DOE emergency 202(c) order issued to Northern Indiana Public Service Company in December 2025 for its Schahfer plant. On June 29, 2026, the D.C. Circuit granted the U.S. Department of Energy’s unopposed motion to hold the consolidated appeals of the Culley and Schahfer DOE 202(c) orders in abeyance pending disposition of the People of the State of Michigan v. United States Department of Energy (the appeal of DOE’s 202(c) order issued to the Consumer Energy Company’s Campbell plant.) A modification to Indiana Electric’s wastewater discharge permit for F.B Culley Unit 2 has been proposed that would provide for the continued utilization of bottom ash transport water at the facility during the pendency of the DOE Order. The public comment period for the proposed modification closed on July 20, 2026, with a final agency decision expected later in the third quarter of 2026. On July 20, 2026, the Sierra Club and Environmental Law & Policy Center filed a petition with the United States Court of Appeals for the D.C. Circuit for review of FERC’s March 19, 2026 order related to the cost recovery/cost allocation mechanism and FERC’s subsequent procedural denial of the rehearing requests on the March 19th order.

Current wording

While preferred portfolios in Indiana Electric’s 2025 IRP (similar to previous IRPs) included the retirement of F.B. Culley Unit 2, a coal-fired generation unit, by the end of 2025, the U.S. Department of Energy issued emergency 202(c) orders (the “DOE Order”) in December 2025, March 2026, June 2026 and September 2026 directing Indiana Electric to continue operating the unit through December 18, 2026. Indiana Electric filed a complaint with the FERC to request creation of a cost recovery/cost allocation mechanism, and on March 19, 2026, FERC directed MISO to adopt a tariff amendment that would authorize the F.B. Culley unit to recover costs across load-serving entities situated in MISO’s north and central local reliability zones, otherwise known as MISO North and Central. A separate filing will be made at a later date with the FERC to seek recovery of all costs incurred to comply with the U.S. Department of Energy’s emergency 202(c) orders. Indiana Electric has also filed an application with the IURC in Cause No. 46350 to recover any compliance costs associated with the emergency 202(c) orders that are not recovered through the FERC proceedings. On April 15, 2026, Indiana Electric filed a Motion to Intervene in the United States Court of Appeals for the D.C. Circuit in response to the Public Interest Organizations’ appeal of the December 2025 DOE Order. Indiana Electric intervened as the owner of F.B. Culley Unit 2 that is the subject of the DOE Order representing Indiana Electric’s authority to recover the costs it has incurred to comply with the DOE Order. On May 8, 2026, the D.C. Circuit granted Indiana Electric’s motion to intervene and consolidated Indiana Electric’s case with the Public Interest Organizations’ appeal of the DOE emergency 202(c) order issued to Northern Indiana Public Service Company in December 2025 for its Schahfer plant. On June 29, 2026, the D.C. Circuit granted the U.S. Department of Energy’s unopposed motion to hold the consolidated appeals of the Culley and Schahfer DOE 202(c) orders in abeyance pending disposition of the People of the State of Michigan v. United States Department of Energy (the appeal of DOE’s May 2025 202(c) order issued to the Consumers Energy Company’s Campbell plant). In that case regarding the Campbell plant, the D.C. Circuit on September 11, 2026 vacated the DOE’s May 2025 202(c) Campbell plant order, finding that DOE had exceeded its authority because the circumstances did not constitute the type of emergency contemplated by the statute. A modification to Indiana Electric’s wastewater discharge permit for F.B Culley Unit 2 has been proposed that would provide for the continued utilization of bottom ash transport water at the facility during the pendency of the DOE Order. The public comment period for the proposed modification closed on July 20, 2026. Indiana Electric received the final permit modification in August 2026 with an effective date of September 1, 2026. On July 20, 2026, the Sierra …

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Pursuant to House Enrolled Act 1002 (HEA 1002), Indiana Electric is required to file a multi-year rate case in January 2028. On July 15, 2026, the IURC opened two investigations related to the implementation of the new multi-year rate plan (“MYRP”) framework established under HEA 1002. In Cause No. 46428, the IURC will examine potential risks and changes in risks to Indiana electric utilities and their customers resulting from implementation of MYRPs, including consideration of historical authorized-return frameworks and the establishment of a reasonable baseline for evaluating any changes in risk. In Cause No. 46429, the IURC will investigate cost recovery mechanisms within the MYRP framework, including the potential role of capital and expense trackers and the development of reasonable and quantifiable criteria governing their use.

Current wording

Pursuant to House Enrolled Act 1002 (HEA 1002), Indiana Electric is required to file a multi-year rate case in January 2028.

Previous wording

The IURC made all Indiana electric utilities respondents to both proceedings and scheduled technical conferences for August 7, 2026 to identify issues and establish procedural schedules. Indiana Electric is evaluating the orders and intends to participate in the proceedings. At this time, Indiana Electric cannot predict the outcome of either investigation or the potential impact, if any, that these proceedings may have on its future rates, cost recovery mechanisms, authorized returns, or financial condition.

Current wording

On July 15, 2026, the IURC opened two investigations related to the implementation of the new multi-year rate plan (“MYRP”) framework established under HEA 1002. In Cause No. 46428, the IURC will examine potential risks and changes in risks to Indiana electric utilities and their customers resulting from implementation of MYRPs, including consideration of historical authorized-return frameworks and the establishment of a reasonable baseline for evaluating any changes in risk. In Cause No. 46429, the IURC will investigate cost recovery mechanisms within the MYRP framework, including the potential role of capital and expense trackers and the development of reasonable and quantifiable criteria governing their use. On August 7, 2026, all Indiana electric utilities jointly participated in two technical conferences convened by the IURC to frame and clarify the issues to be addressed during the IURC’s investigations. Following the conferences, the Indiana electric utilities collaborated in submitting a proposed list of issues for consideration in the two proceedings. After reviewing the submissions by the Indiana electric utilities and other parties, the IURC finalized the issues list on September 24, 2026, defining the scope of the investigations and providing guidance on the topics for which the parties should submit prefiled testimony. On that same date, the IURC published the procedural schedules for prefiled testimony to be submitted on December 4, 2026; responsive testimony to be submitted on January 13, 2027; and an evidentiary hearing for both proceedings scheduled for the first half of 2027. At this time, Indiana Electric cannot predict the outcome of either investigation or the potential impact, if any, that these proceedings may have on its future rates, cost recovery mechanisms, authorized returns, or financial condition.

Previous wording

The Registrants are evaluating the effects of certain legislation passed in 2025 and associated PUCT rulemaking projects, including the following pieces of legislation that became law during the 89th Texas Legislature:

Current wording

The Registrants are actively working to comply with legislation passed in 2025 and associated PUCT rulemaking projects, including the following pieces of legislation that became law during the 89th Texas Legislature:

Previous wording

•Senate Bill 231, effective June 20, 2025, provides that, on or after the effective date, TDUs may only enter into, renew or extend leases for TEEEF units with a maximum generation capacity 5 or fewer MW and that are rapidly deployable, and that they may enter into leases without prior PUCT preapproval (as required by the TEEEF Rule) in the case of an emergency or if the lease includes a provision allowing for the alteration of the lease based on applicable PUCT orders or rules.

Current wording

•Senate Bill 231, effective June 20, 2025, provides that, on or after the effective date, TDUs may only enter into, renew or extend leases for TEEEF units with a maximum generation capacity of 5 or fewer MW and that are rapidly deployable, and that they may enter into leases without prior PUCT preapproval (as required by the TEEEF Rule) in the case of an emergency or if the lease includes a provision allowing for the alteration of the lease based on applicable PUCT orders or rules.

Previous wording

On June 2, 2026, CEI North and CEI South filed their petitions and cases-in-chief with the IURC requesting, among other things, approval of their seven-year plan for transmission, distribution, and storage improvements, pursuant to Ind. Code (TDSIC Plan) and their three-year compliance projects pursuant to Ind. Code (Compliance Projects). The request for the three-year Compliance Projects (2027-2029) was for an estimated $679 million (Indiana North) and $160 million (Indiana South), and the request for the seven-year Transmission, Distribution, Storage Improvement Charge (TDSIC) Plan (2027-2033) was for an estimated $902 million (Indiana North) and $211 million (Indiana South). OUCC and intervenors will file testimony and exhibits on or before August 26, 2026. Indiana North and Indiana South rebuttal testimony is due on or before September 18, 2026. Evidentiary hearings are scheduled for Indiana North on October 5, 2026, and for Indiana South on October 8, 2026.

Current wording

On June 2, 2026, Indiana North and Indiana South filed their petitions and cases-in-chief with the IURC requesting, among other things, approval of their seven-year plan for transmission, distribution, and storage improvements pursuant to Indiana Code (TDSIC Plan); and their three-year schedule of compliance projects pursuant to Indiana Code (Compliance Projects). The request for the seven-year TDSIC Plan (2027-2033) was for an estimated $902 million (Indiana North) and $211 million (Indiana South); and the request for three-year schedule of Compliance Projects (2027-2029) was for an estimated $679 million (Indiana North) and $160 million (Indiana South). On September 14, 2026, after filing corrections to the TDSIC Plan in August which reduced the previously stated amounts, Indiana North and Indiana South filed amended petitions and testimony with the IURC to modify their requested relief by removing from their request all relief related to TDSIC improvements under Indiana Code (approximately $876 million for Indiana North and $204 million for Indiana South); and maintaining their requested relief associated with the three-year schedule of compliance activities (approximately $679 million for Indiana North and $160 million for Indiana South). Because of the amended filing, the procedural schedule was modified, with rebuttal testimony due November 4, 2026 and an evidentiary hearing scheduled for November 17, 2026.

Previous wording

The Registrants may draw on their respective revolving credit facilities from time to time to provide funds used for general corporate and limited liability company purposes, including to backstop CenterPoint Energy’s and CERC’s commercial paper programs. The facilities may also be utilized to obtain letters of credit. For further details related to the Registrants’ revolving credit facilities, see Note 9 to the Interim Condensed Financial Statements.

Current wording

The Registrants may draw on their respective revolving credit facilities from time to time to provide funds used for general corporate and limited liability company purposes, including to backstop CenterPoint Energy’s, Houston Electric’s and CERC’s commercial paper programs. The facilities may also be utilized to obtain letters of credit. For further details related to the Registrants’ revolving credit facilities, see Note 9 to the Interim Condensed Financial Statements.

Previous wording

Based on the consolidated debt to capitalization covenant in the Registrants’ revolving credit facilities, the Registrants would have been permitted to utilize the full capacity of such revolving credit facilities, which aggregated approximately $4.0 billion as of June 30, 2026. As of July 22, 2026, the Registrants had the following revolving credit facilities and utilization of such facilities:

Current wording

On September 9, 2026, CenterPoint Energy, Houston Electric, CERC and SIGECO replaced their existing revolving credit facilities with four revolving credit facilities totaling $4.6 billion in aggregate commitments. Based on the consolidated debt to capitalization covenant in the Registrants’ revolving credit facilities, the Registrants would have been permitted to utilize the full capacity of such revolving credit facilities as of September 30, 2026. As of October 21, 2026, the Registrants had the following revolving credit facilities and utilization of such facilities:

Previous wording

The Registrants participate in a money pool through which they and certain of their subsidiaries 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 net funding requirements of the

Current wording

The Registrants participate in a money pool through which they and certain of their subsidiaries 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 net funding requirements of Houston Electric are expected to be met with borrowings from the CenterPoint Energy money pool, borrowings under Houston Electric's revolving credit facility or the sale of Houston Electric's commercial paper. The net funding requirements of the

Previous wording

Pipeline tariffs and contracts typically provide that if the credit ratings of a shipper or the shipper’s guarantor drop below a threshold level, which is generally investment grade ratings from both Moody’s and S&P, cash or other collateral may be demanded from the shipper in an amount equal to the sum of three months’ charges for pipeline services plus the unrecouped cost of any lateral built for such shipper. If the credit ratings of CERC Corp. decline below the applicable threshold levels, CERC might need to provide cash or other collateral of up to $232 million as of June 30, 2026. The amount of collateral will depend on seasonal variations in transportation levels.

Current wording

Pipeline tariffs and contracts typically provide that if the credit ratings of a shipper or the shipper’s guarantor drop below a threshold level, which is generally investment grade ratings from both Moody’s and S&P, cash or other collateral may be demanded from the shipper in an amount equal to the sum of three months’ charges for pipeline services plus the unrecouped cost of any lateral built for such shipper. If the credit ratings of CERC Corp. decline below the applicable threshold levels, CERC might need to provide cash or other collateral of up to $230 million as of September 30, 2026. The amount of collateral will depend on seasonal variations in transportation levels.

Previous wording

If CenterPoint Energy’s creditworthiness were to drop such that ZENS holders thought CenterPoint Energy’s liquidity was adversely affected or the market for the ZENS were to become illiquid, some ZENS holders might decide to exchange their ZENS for cash. Funds for the payment of cash upon exchange could be obtained from the sale of the shares of ZENS-Related Securities that CenterPoint Energy owns or from other sources. CenterPoint Energy owns shares of ZENS-Related Securities equal to approximately 100% of the reference shares used to calculate its obligation to the holders of the ZENS. ZENS exchanges result in a cash outflow because tax deferrals related to the ZENS and shares of ZENS-Related Securities would typically be reversed when ZENS are exchanged or otherwise retired and shares of ZENS-Related Securities are sold. The ultimate tax liability related to the ZENS and ZENS-Related Securities continues to increase by the amount of the tax benefit realized each year, and there could be a cash outflow when the taxes are paid as a result of the retirement or exchange of the ZENS. If all ZENS had been exchanged for cash on June 30, 2026, deferred taxes of approximately $964 million would have been payable in 2026, subject to reduction on account of available net operating loss carryforwards and CAMT carryforwards. If all the ZENS-Related Securities had been sold on June 30, 2026, capital gains taxes of approximately $49 million would have been payable in 2026 based on 2026 tax rates in effect. As of June 30, 2026, CenterPoint Energy had both net operating loss and CAMT carryforwards available from its filed 2024 federal income tax return that can be applied to largely offset the cash outflow that would result from a retirement or exchange of the ZENS. For additional information about ZENS, see Note 8 to the Interim Condensed Financial Statements.

Current wording

If CenterPoint Energy’s creditworthiness were to drop such that ZENS holders thought CenterPoint Energy’s liquidity was adversely affected or the market for the ZENS were to become illiquid, some ZENS holders might decide to exchange their ZENS for cash. Funds for the payment of cash upon exchange could be obtained from the sale of the shares of ZENS-Related Securities that CenterPoint Energy owns or from other sources. CenterPoint Energy owns shares of ZENS-Related Securities equal to approximately 100% of the reference shares used to calculate its obligation to the holders of the ZENS. ZENS exchanges result in a cash outflow because tax deferrals related to the ZENS and shares of ZENS-Related Securities would typically be reversed when ZENS are exchanged or otherwise retired and shares of ZENS-Related Securities are sold. The ultimate tax liability related to the ZENS and ZENS-Related Securities continues to increase by the amount of the tax benefit realized each year, and there could be a cash outflow when the taxes are paid as a result of the retirement or exchange of the ZENS. If all ZENS had been exchanged for cash on September 30, 2026, deferred taxes of approximately $983 million would have been payable in 2026, subject to reduction on account of available net operating loss carryforwards and CAMT carryforwards. If all the ZENS-Related Securities had been sold on September 30, 2026, capital gains taxes of approximately $53 million would have been payable in 2026 based on 2026 tax rates in effect. As of September 30, 2026, CenterPoint Energy had both net operating loss and CAMT carryforwards available from its filed 2024 federal income tax return that can be applied to largely offset the cash outflow that would result from a retirement or exchange of the ZENS. For additional information about ZENS, see Note 8 to the Interim Condensed Financial Statements.

Previous wording

Under the Registrants’ respective revolving credit facilities, a payment default on, or a non-payment default, event or condition that permits acceleration of, any indebtedness for borrowed money and certain other specified types of obligations (including guarantees) exceeding $125 million by the borrower or any of their respective significant subsidiaries will cause a default under such borrower’s respective credit facility or term loan agreement. Under SIGECO’s revolving credit facility, a payment default on, or a non-payment default, event or condition that permits acceleration of, any indebtedness for borrowed money and certain other specific types of obligations (including guarantees) exceeding $75 million by SIGECO or any of its significant subsidiaries will cause a default under SIGECO’s credit facility. A default by CenterPoint Energy would not trigger a default under its subsidiaries’ debt instruments or revolving credit facilities.

Current wording

Under the Registrants’ respective revolving credit facilities, a payment default on, or a non-payment default, event or condition that results in the acceleration of, any indebtedness for borrowed money and certain other specified types of obligations (including guarantees) exceeding $150 million by the borrower or any of their respective significant subsidiaries will cause a default under such borrower’s respective credit facility or term loan agreement. Under SIGECO’s revolving credit facility, a payment default on, or a non-payment default, event or condition that results in the acceleration of, any indebtedness for borrowed money and certain other specific types of obligations (including guarantees) exceeding $100 million by SIGECO or any of its significant subsidiaries will cause a default under SIGECO’s credit facility. A default by CenterPoint Energy would not trigger a default under its subsidiaries’ debt instruments or revolving credit facilities.

Previous wording

From time to time, the Registrants consider the acquisition or the disposition of assets or businesses or possible joint ventures, strategic initiatives or other joint ownership arrangements with respect to assets or businesses. Any determination to take action in this regard will be based on market conditions and opportunities existing at the time, and accordingly, the timing, size or success of any efforts and the associated potential capital commitments are unpredictable. The Registrants may seek to fund all or part of any such efforts with proceeds from debt and/or equity issuances. Debt or equity financing may not, however, be available to the Registrants at that time due to a variety of events, including, among others, maintenance of our credit ratings, industry conditions, general economic conditions, market conditions and market perceptions. As announced in July 2026, CenterPoint Energy has increased its planned capital expenditures in its Electric and Natural Gas businesses pursuant to its updated 10-year capital plan, which calls for investment of at least $66.7 billion through 2035, and CenterPoint Energy may continue to increase such planned capital investments in the future. The Registrants may continue to explore asset sales as a means to efficiently finance a portion of their increased capital expenditures in the future, subject to the considerations listed above. For further information, see Note 3 to the Interim Condensed Financial Statements.

Current wording

From time to time, the Registrants consider the acquisition or the disposition of assets or businesses or possible joint ventures, strategic initiatives or other joint ownership arrangements with respect to assets or businesses. Any determination to take action in this regard will be based on market conditions and opportunities existing at the time, and accordingly, the timing, size or success of any efforts and the associated potential capital commitments are unpredictable. The Registrants may seek to fund all or part of any such efforts with proceeds from debt and/or equity issuances. Debt or equity financing may not, however, be available to the Registrants at that time due to a variety of events, including, among others, maintenance of our credit ratings, industry conditions, general economic conditions, market conditions and market perceptions. As announced in October 2026, CenterPoint Energy has increased its planned capital expenditures in its Electric and Natural Gas businesses pursuant to its updated 10-year capital plan, which calls for investment of at least $70.7 billion through 2035, and CenterPoint Energy may continue to increase such planned capital investments in the future. The Registrants may continue to explore asset sales as a means to efficiently finance a portion of their increased capital expenditures in the future, subject to the considerations listed above. For further information, see Note 3 to the Interim Condensed Financial Statements.

Previous wording

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 for total consideration of approximately $2.62 billion, subject to adjustment as set forth in the Ohio Securities Purchase Agreement. 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.

Current wording

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 for total consideration of approximately $2.62 billion, subject to adjustment as set forth in the Ohio Securities Purchase Agreement. The transaction closed on October 1, 2026. For further information, see Note 3 and Note 16 to the Interim Condensed Financial Statements.