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CENTERPOINT ENERGY HOUSTON ELECTRIC LLC

For the period ended Sep 30, 2026. Filed Oct 27, 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.

Sep 30, 2026 · Filed Oct 27, 2026

CNP$40.66+1.7%Stored close · as of Nov 6, 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 September 30, 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 closed on October 1, 2026. For further information, see Note 3 and Note 16 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 closed on October 1, 2026. For further information, see Note 3 and Note 16 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 September 30, 2026
ElectricNatural GasCorporate and OtherTotal Reportable SegmentsEliminationsTotal
(in millions)
Revenues from external customers$1,549$640$2$2,191$—$2,191
Intersegment revenues—1—1(1)—
Utility natural gas, fuel and purchased power61127—188(1)187
Non-utility cost of revenues, including natural gas—1—1—1
Operation and maintenance5352102747—747
Depreciation and amortization2801595444—444
Taxes other than income taxes87562145—145
Interest expense and other finance charges1594785291(10)281
Interest income (1)(6)—(5)(11)10(1)
Other expense (income), net (2)(20)(8)2(26)—(26)
Income tax expense (benefit)915(14)82—82
Net income (loss)$362$44$(75)$331$—$331
Three Months Ended September 30, 2025
ElectricNatural GasCorporate and OtherTotal Reportable SegmentsEliminationsTotal
(in millions)
Revenues from external customers$1,365$622$1$1,988$—$1,988
Utility natural gas, fuel and purchased power72147—219—219
Non-utility cost of revenues, including natural gas—1—1—1
Operation and maintenance5202192741—741
Depreciation and amortization2471396392—392
Taxes other than income taxes8253(2)133—133
Interest expense and other finance charges1165281249(6)243
Interest income (1)(1)—(5)(6)6—
Other income, net (2)(20)(6)(1)(27)—(27)
Income tax expense (benefit)56(54)(9)(7)—(7)
Net income (loss)$293$71$(71)$293$—$293
Nine Months Ended September 30, 2026
ElectricNatural GasCorporate and OtherTotal Reportable SegmentsEliminationsTotal
(in millions)
Revenues from external customers$4,130$3,181$7$7,318$—$7,318
Intersegment revenues—224(4)—
Utility natural gas, fuel and purchased power2091,231—1,440(2)1,438
Non-utility cost of revenues, including natural gas—2—2—2
Operation and maintenance1,580680(3)2,257(2)2,255
Depreciation and amortization832464161,312—1,312
Taxes other than income taxes2551916452—452
Interest expense and other finance charges428163256847(26)821
Interest income (1)(15)(1)(18)(34)26(8)
Other expense (income), net (2)(60)(18)5(73)—(73)
Income tax expense (benefit)16297(31)228—228
Net income (loss)$739$374$(222)$891$—$891
Nine Months Ended September 30, 2025
ElectricNatural GasCorporate and OtherTotal Reportable SegmentsEliminationsTotal
(in millions)
Revenues from external customers$3,622$3,224$6$6,852$—$6,852
Intersegment revenues—2—2(2)—
Utility natural gas, fuel and purchased power2111,316—1,527(2)1,525
Non-utility cost of revenues, including natural gas—4—4—4
Operation and maintenance1,527679(3)2,203—2,203
Depreciation and amortization687423151,125—1,125
Taxes other than income taxes2401834427—427
Interest expense and other finance charges323154226703(27)676
Interest income (1)(12)(10)(5)(27)27—
Other expense (income), net (2)(48)30(7)(25)—(25)
Income tax expense (benefit)12262(55)129—129
Net income (loss)$572$385$(169)$788$—$788

(1) Interest income earned on cash and cash equivalents related to VIEs of less than $1 million for the three and nine months ended September 30, 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
Nine Months Ended September 30,
20262025
(in millions)
Electric$2,626$2,534
Natural Gas1,4931,164
Corporate and Other1932
Consolidated$4,138$3,730
Total Assets
September 30, 2026December 31, 2025
(in millions)
Electric$29,779$26,649
Natural Gas19,10718,405
Corporate and Other (1)5891,480
Consolidated$49,475$46,534

(1)Total assets included pension and other postemployment-related regulatory assets of $364 million and $383 million as of September 30, 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 $2.4 billion and $1.9 billion for the nine months ended September 30, 2026 and 2025, respectively. Financial data related to interest income is as follows:

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(in millions) · (in millions)
Interest income (1)$7$1$14$10

(1)Reflected in Other income, 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 three and nine months ended September 30, 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 $1.4 billion and $1.1 billion for the nine months ended September 30, 2026 and 2025, respectively. Financial data related to interest income is as follows:

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(in millions) · (in millions)
Interest income (1)$—$—$1$10

(1)Reflected in Other income, net on CERC’s Condensed Statements of Consolidated Income.

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