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Income Taxes
6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Registrants reported the following effective tax rates:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
CenterPoint Energy (1)
46 %22 %29 %26 %
Houston Electric (2)
21 %21 %22 %21 %
CERC (3) (4)
20 %%22 %23 %

(1)CenterPoint Energy’s higher effective tax rate for the three and six months ended June 30, 2023 compared to the same periods ended June 30, 2022 was primarily due to tax impacts of the sale of Energy Systems Group which is partially offset by the absence of the non-deductible goodwill associated with the sale of the Natural Gas businesses in Arkansas and Oklahoma in 2022.
(2)Houston Electric’s higher effective tax rate for the six months ended June 30, 2023 compared to the same period in 2022 was primarily driven by an increase in state income taxes.
(3)CERC’s higher effective tax rate for the three months ended June 30, 2023 compared to the same period ended June 30, 2022 was primarily driven by the increase in income from continuing operations in 2023 while favorable permanent tax adjustments and EDIT amortization remained consistent.
(4)CERC’s lower effective tax rate for the six months ended June 30, 2023 compared to the same period ended June 30, 2022 was primarily driven by decreased amortization of the EDIT regulatory liability.

CenterPoint Energy reported a net uncertain tax liability, inclusive of interest and penalties, of $29 million as of June 30, 2023. The Registrants believe that it is reasonably possible that there will be no change in unrecognized tax benefits, 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 2018 have been audited and settled with the IRS for CenterPoint Energy. For the 2019-2022 tax years, the Registrants are participants in the IRS’s Compliance Assurance Process. Vectren’s pre-Merger 2014-2019 tax years have been audited and settled with the IRS.