CENTERPOINT ENERGY HOUSTON ELECTRIC LLC

The Registrants reported the following effective tax rates for the periods presented:

(1)CenterPoint Energy’s higher effective tax rate for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was due primarily to an increase in state income taxes driven by the prior year remeasurement of state deferred taxes in the third quarter of 2025. A decrease in nondeductible goodwill was offset by a decrease in excess deferred tax amortization resulting from the sale of the Louisiana and Mississippi natural gas LDC businesses in the first quarter of 2025. CenterPoint Energy’s higher effective tax rate for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was due primarily to an increase in state income taxes driven by the prior year remeasurement of state deferred taxes in the third quarter of 2025. In 2026, a decrease in nondeductible goodwill was offset by a decrease in excess deferred tax amortization resulting from the sale of the Louisiana and Mississippi natural gas LDC businesses in the first quarter of 2025.

(2)Houston Electric’s higher effective tax rate for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was primarily driven by an increase in state income taxes. Houston Electric’s higher effective tax rate for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was primarily driven by an increase in state income taxes.

(3)CERC’s higher effective tax rate for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was due primarily to an increase in state income taxes driven by the prior year remeasurement of state deferred taxes in the third quarter of 2025. CERC’s higher effective tax rate for the nine months ended

September 30, 2026 compared to the nine months ended September 30, 2025 was due primarily to an increase in state income taxes driven by the prior year remeasurement of state deferred taxes in the third quarter of 2025. A decrease in nondeductible goodwill was offset by a decrease in excess deferred tax amortization resulting from the sale of the Louisiana and Mississippi natural gas LDC businesses in the first quarter of 2025.

CenterPoint Energy reported a net uncertain tax liability, inclusive of interest and penalties, of $20 million as of September 30, 2026. The Registrants believe that it is reasonably possible that the Registrants will recognize a $20 million tax benefit, including penalties and interest, in the next 12 months as a result of a lapse of statutes on older exposures, a tax settlement, and/or a resolution of open audits.

Tax Audits and Settlements. Tax years through 2023 have been audited and settled with the IRS for CenterPoint Energy. For tax years 2024, 2025 and 2026, the Registrants are participants in the IRS’s Compliance Assurance Process.