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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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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 September 30,Nine Months Ended September 30,
20262025Favorable (Unfavorable)20262025Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues$1,549$1,365$184$4,130$3,622$508
Expenses:
Utility natural gas, fuel and purchased power6172112092112
Operation and maintenance535520(15)1,5801,527(53)
Depreciation and amortization280247(33)832687(145)
Taxes other than income taxes8782(5)255240(15)
Total expenses963921(42)2,8762,665(211)
Operating Income5864441421,254957297
Other Income (Expense):
Interest expense and other finance charges(159)(116)(43)(428)(323)(105)
Other income, net26215756015
Income Before Income Taxes453349104901694207
Income tax expense9156(35)162122(40)
Net Income$362$293$69$739$572$167
Throughput (in GWh):
Residential13,33712,08810%29,11928,3183%
Total35,84535,4551%91,10890,5191%
Weather (percentage of normal weather for service area):
Cooling degree days112%103%9%114%108%6%
Heating degree days5%29%(24)%87%100%(13)%
Number of metered customers at end of period:
Residential2,716,8012,673,0772%2,716,8012,673,0772%
Total3,055,2903,006,9452%3,055,2903,006,9452%

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:

Favorable (Unfavorable)
Three Months Ended September 30, 2026 vs 2025Nine Months Ended September 30, 2026 vs 2025
(in millions)
Revenues
Customer rates and the impact of the change in rate design$54$185
Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below37126
Customer growth719
Energy efficiency, partially offset in operation and maintenance below23
Pass-through revenues, offset in operation and maintenance below(8)(8)
Miscellaneous revenues, including service connections and off-system sales(6)5
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items below76163
Weather, efficiency improvements and other usage impacts237
Cost of fuel and purchased power, offset in utility natural gas, fuel and purchased power below(1)8
Total$184$508
Utility natural gas, fuel and purchased power
Cost of purchased power, offset in revenues above$19$43
Cost of fuel, including coal, natural gas, and fuel oil, offset in revenues above(8)(41)
Total$11$2
Operation and maintenance
Transmission costs billed by transmission providers, offset in revenues above$(22)$(69)
Contract services48
Energy efficiency, and other pass-through, offset in revenues above(3)(5)
Corporate support services1416
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items(2)(4)
Labor and benefits(10)1
All other operation and maintenance expense, including materials and supplies and insurance4—
Total$(15)$(53)
Depreciation and amortization
Ongoing additions to plant-in-service$(13)$(71)
Amortization of regulatory assets3976
Lease expense associated with TEEEF units no longer eligible for regulatory deferral(2)(36)
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items(57)(114)
Total$(33)$(145)
Taxes other than income taxes
Incremental capital projects placed in service, and the impact of updated property tax rates$(5)$(15)
Total$(5)$(15)
Interest expense and other finance charges
Changes in outstanding debt$(6)$(32)
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items above(17)(45)
Other, primarily AFUDC and impacts of regulatory deferrals(20)(28)
Total$(43)$(105)
Other income, net
Other income, including AFUDC - equity and intersegment interest income$5$15
Total$5$15

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 September 30,Nine Months Ended September 30,
20262025Favorable (Unfavorable)20262025Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues$641$622$19$3,183$3,226$(43)
Expenses:
Utility natural gas and fuel127147201,2311,31685
Non-utility cost of revenues, including natural gas11—242
Operation and maintenance2102199680679(1)
Depreciation and amortization159139(20)464423(41)
Taxes other than income taxes5653(3)191183(8)
Total expenses55355962,5682,60537
Operating Income886325615621(6)
Other Income (Expense):
Loss on sale————(43)43
Interest expense and other finance charges(47)(52)5(163)(154)(9)
Other income, net8621923(4)
Income Before Income Taxes49173247144724
Income tax expense (benefit)5(54)(59)9762(35)
Net Income$44$71$(27)$374$385$(11)
Throughput (in Bcf):
Residential1314(7)%132157(16)%
Commercial and Industrial81793%290313(7)%
Total94931%422470(10)%
Weather (percentage of 10-year average for service area):
Heating degree days65%51%14%98%97%1%
Number of metered customers at end of period:
Residential3,744,0993,712,3121%3,744,0993,712,3121%
Commercial and Industrial283,889283,943—%283,889283,943—%
Total4,027,9883,996,2551%4,027,9883,996,2551%

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:

Favorable (Unfavorable)
Three Months Ended September 30, 2026 vs 2025Nine Months Ended September 30, 2026 vs 2025
(in millions)
Revenues
Cost of natural gas, offset in utility natural gas and fuel below$(20)$(27)
Gross receipts tax, offset in taxes other than income taxes below27
Weather and usage(3)(23)
Non-volumetric and miscellaneous revenue—7
Energy efficiency and other pass-through, offset in operation and maintenance below1017
Non-utility revenues—2
Customer growth19
Customer rates and impact of the change in rate design29113
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—(148)
Total$19$(43)
Utility natural gas and fuel
Cost of natural gas, offset in revenues above$20$27
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—58
Total$20$85
Operation and maintenance
All other operations and maintenance expense, including bad debt expense$2$(14)
Energy efficiency and other pass-through, offset in revenues above(10)(17)
Contract services(6)(19)
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—20
Labor and benefits1114
Corporate support services1215
Total$9$(1)
Depreciation and amortization
Ongoing additions to plant-in-service$(11)$(48)
Amortization of regulatory assets(9)(7)
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—14
Total$(20)$(41)
Taxes other than income taxes
Gross receipts tax, offset in revenues above$(2)$(7)
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(1)(9)
Total$(3)$(8)
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$1$(34)
Other, primarily AFUDC and impacts of regulatory deferrals415
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—10
Total$5$(9)
Other income, net
Other income, including AFUDC - Equity and intersegment interest income$2$(4)
Total$2$(4)

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 September 30,Nine Months Ended September 30,
20262025Favorable (Unfavorable)20262025Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues:
TDU$1,240$1,130$110$3,308$3,022$286
Bond Companies762741662164
Total revenues1,3161,1321843,4743,024450
Expenses:
Operation and maintenance, excluding Bond Companies491475(16)1,4531,405(48)
Depreciation and amortization, excluding Bond Companies18320825600583(17)
Taxes other than income taxes8579(6)248232(16)
Bond Companies582(56)1202(118)
Total expenses817764(53)2,4212,222(199)
Operating Income4993681311,053802251
Other Income (Expense):
Interest expense and other finance charges(121)(96)(25)(320)(272)(48)
Interest expense on Securitization Bonds(18)(1)(17)(46)(1)(45)
Other income, net221111643430
Income Before Income Taxes382282100751563188
Income tax expense8051(29)151107(44)
Net Income$302$231$71$600$456$144
Throughput (in GWh):
Residential12,86311,62911%27,98827,1743%
Total34,34733,9951%87,03186,908—%
Weather (percentage of 10-year average for service area):
Cooling degree days109%100%9%113%109%4%
Heating degree days—%—%—%71%92%(21)%
Number of metered customers at end of period:
Residential2,581,5622,538,4962%2,581,5622,538,4962%
Total2,900,1672,852,6912%2,900,1672,852,6912%

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:

Favorable (Unfavorable)
Three Months Ended September 30, 2026 vs 2025Nine Months Ended September 30, 2026 vs 2025
(in millions)
Revenues
Customer rates and the impact of the change in rate design$41$129
Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below37126
Customer growth718
Energy efficiency, partially offset in both operation and maintenance below23
Miscellaneous revenues(5)—
Weather, efficiency improvements and other usage impacts2810
Bond Companies, offset in other line items below74164
Total$184$450
Operation and maintenance, excluding Bond Companies
Transmission costs billed by transmission providers, offset in revenues above$(22)$(69)
Contract services39
Energy efficiency, offset in revenues above(2)(3)
Corporate support services1214
Labor and benefits(10)3
All other operation and maintenance expense, including materials and supplies and insurance3(2)
Total$(16)$(48)
Depreciation and amortization, excluding Bond Companies
Ongoing additions to plant-in-service$(11)$(57)
Amortization of regulatory assets3875
Lease expense associated with TEEEF units no longer eligible for regulatory deferral(2)(35)
Total$25$(17)
Taxes other than income taxes
Incremental capital projects placed in service, and the impact of changes to tax rates$(6)$(16)
Total$(6)$(16)
Bond Companies
Operations and maintenance and depreciation expense, offset in revenues above$(56)$(118)
Total$(56)$(118)
Interest expense and other finance charges
Changes in outstanding debt$(5)$(23)
Other, primarily AFUDC and impacts of regulatory deferrals(20)(25)
Total$(25)$(48)
Interest expense on Securitization Bonds
Change in outstanding principal balance, offset in revenues above$(17)$(45)
Total$(17)$(45)
Other income, net
Other income, including AFUDC - equity and affiliate interest income$11$30
Total$11$30

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 September 30,Nine Months Ended September 30,
20262025Favorable (Unfavorable)20262025Favorable (Unfavorable)
(in millions, except operating statistics)
Revenues$627$607$20$3,084$3,126$(42)
Expenses:
Utility natural gas128146181,2041,28682
Non-utility cost of revenues, including natural gas11—242
Operation and maintenance201211106536541
Depreciation and amortization152133(19)445406(39)
Taxes other than income taxes5650(6)190179(11)
Total expenses53854132,4942,52935
Operating Income896623590597(7)
Other Income (Expense):
Gain on sale————52(52)
Interest expense and other finance charges(43)(49)6(153)(144)(9)
Other income, net8621720(3)
Income Before Income Taxes542331454525(71)
Income tax expense6(51)(57)9460(34)
Net Income$48$74$(26)$360$465$(105)
Throughput (in Bcf):
Residential1313—%128152(16)%
Commercial and Industrial6969—%257280(8)%
Total8282—%385432(11)%
Weather (percentage of 10-year average for service area):
Heating degree days67%53%14%98%97%1%
Number of metered customers at end of period:
Residential3,639,3583,607,8111%3,639,3583,607,8111%
Commercial and Industrial273,264273,354—%273,264273,354—%
Total3,912,6223,881,1651%3,912,6223,881,1651%

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 CERC:

Favorable (Unfavorable)
Three Months Ended September 30, 2026 vs 2025Nine Months Ended September 30, 2026 vs 2025
(in millions)
Revenues
Cost of natural gas, offset in utility natural gas, fuel and purchased power below$(18)$(23)
Gross receipts tax, offset in taxes other than income taxes below27
Weather and usage(3)(23)
Energy efficiency and other pass-through, offset in operation and maintenance below917
Non-volumetric and miscellaneous revenue(1)6
Non-utility revenues—2
Customer growth29
Customer rates and impact of the change in rate design29111
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—(148)
Total$20$(42)
Utility natural gas
Cost of natural gas, offset in revenues above$18$23
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—59
Total$18$82
Operation and maintenance
All other operations and maintenance expense, including bad debt expense$2$(14)
Energy efficiency and other pass-through, offset in revenues above(9)(17)
Contract services(5)(16)
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—20
Labor and benefits1114
Corporate support services1114
Total$10$1
Depreciation and amortization
Ongoing additions to plant-in-service$(10)$(46)
Amortization of regulatory assets(9)(7)
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—14
Total$(19)$(39)
Taxes other than income taxes
Gross receipts tax, offset in revenues above$(2)$(7)
Incremental capital projects placed in service, and the impact of updated property tax rates(4)(10)
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—6
Total$(6)$(11)
Gain on sale
Gain on sale of Louisiana and Mississippi natural gas LDC businesses$—$(52)
Total$—$(52)
Interest expense and other finance charges
Changes in outstanding debt$2$(33)
Other, primarily AFUDC and impacts of regulatory deferrals414
Impact of divestiture of Louisiana and Mississippi natural gas LDCs on March 31, 2025—10
Total$6$(9)
Other income, net
Other income, including AFUDC - Equity and affiliate interest income$2$(3)
Total$2$(3)

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.