Income Taxes (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Effective Income Tax Rate Reconciliation

The Registrants reported the following effective tax rates:


	Three Months Ended March 31,
		2023		2022
CenterPoint Energy (1)		19	%	27	%

Houston Electric (2)		23	%	22	%
CERC (3)		22	%	25	%

(1)CenterPoint Energy’s lower effective tax rate for the three months ended March 31, 2023 compared to the same periods ended March 31, 2022 was primarily driven by the decrease in state income taxes and the absence of the non-deductible goodwill associated with the sale of the Natural Gas businesses in Arkansas and Oklahoma in 2022 which is partially offset by the decrease in the amount of amortization of the net regulatory EDIT liability.

(2)Houston Electric’s higher effective tax rate for the three months ended March 31, 2023 compared to the same period in 2022 was primarily driven by an increase in state income taxes which is partially offset by an increase in the amount of amortization of the net regulatory EDIT liability.

(3)CERC’s lower effective tax rate for the three months ended March 31, 2023 compared to the same period ended March 31, 2022 was primarily driven by a decrease in state income taxes and the absence of the non-deductible goodwill associated with the sale of the Natural Gas businesses in Arkansas and Oklahoma in 2022 which is partially offset by the decrease in the amount of amortization of the net regulatory EDIT liability.