cnp-20240331


GLOSSARY
ACE						Affordable Clean Energy


AFUDC						Allowance for funds used during construction

ALJ						Administrative Law Judge
AMA						Asset Management Agreement
Arevon						Arevon Energy, Inc., which was formed through the combination of Capital Dynamics, Inc.’s U.S. Clean Energy Infrastructure business unit and Arevon Asset Management



ARO						Asset retirement obligation

ARP						Alternative revenue program

ASC						Accounting Standards Codification


ASU						Accounting Standards Update
AT&T Common						AT&T Inc. common stock

ATM Forward Purchasers						Bank of America, N.A., Barclays Bank PLC, Citibank, N.A., Goldman Sachs & Co. LLC, JPMorgan Chase Bank, National Association, Mizuho Markets Americas LLC, MUFG Securities EMEA plc and Royal Bank of Canada
ATM Forward Sellers						BofA Securities, Inc. Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and RBC Capital Markets, LLC
ATM Managers						BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and RBC Capital Markets, LLC
Bcf						Billion cubic feet

Bond Companies						Bond Company IV and Restoration Bond Company, each a wholly-owned, bankruptcy remote entity formed solely for the purpose of purchasing and owning transition or system restoration property through the issuance of Securitization Bonds
Bond Company IV						CenterPoint Energy Transition Bond Company IV, LLC, a wholly-owned subsidiary of Houston Electric
BTA						Build Transfer Agreement

CAMT						Corporate Alternative Minimum Tax


CCN						Certificate of Convenience and Necessity
CCR						Coal Combustion Residuals


CECA						Clean Energy Cost Adjustment
CEIP						CenterPoint Energy Intrastate Pipelines, LLC, a wholly-owned subsidiary of CERC Corp.
CenterPoint Energy						CenterPoint Energy, Inc., and its subsidiaries
CERC						CERC Corp., together with its subsidiaries
CERC Corp.						CenterPoint Energy Resources Corp.
CES						CenterPoint Energy Services, Inc. (now known as Symmetry Energy Solutions, LLC), previously a wholly-owned subsidiary of CERC Corp.
Charter Common						Charter Communications, Inc. common stock
CIP						Conservation Improvement Program




CODM						Chief Operating Decision Maker, who is each Registrant’s Chief Operating Executive
Common Stock						CenterPoint Energy, Inc. common stock, par value $0.01 per share

Convertible Notes						CenterPoint Energy’s 4.25% Convertible Senior Notes due 2026
Convertible Notes Indenture						Indenture dated as of August 4, 2023 by and between CenterPoint Energy and The Bank of New York Mellon Trust Company, National Association, as trustee
COVID-19						Novel coronavirus disease 2019, and any mutations or variants thereof, and related global outbreak that was subsequently declared a pandemic by the World Health Organization

CPCN						Certificate of Public Convenience and Necessity
CPP						Clean Power Plan

CSIA						Compliance and System Improvement Adjustment
DCRF						Distribution Cost Recovery Factor
DOC						U.S. Department of Commerce
DRR						Distribution Replacement Rider
DSMA						Demand Side Management Adjustment


ECA						Environmental Cost Adjustment
EDF Renewables						EDF Renewables Development, Inc.
EDIT						Excess deferred income taxes
EECR						Energy Efficiency Cost Recovery


GLOSSARY
EECRF						Energy Efficiency Cost Recovery Factor
EEFC						Energy Efficiency Funding Component
EEFR						Energy Efficiency Funding Rider












Energy Systems Group						Energy Systems Group, LLC, previously a wholly-owned subsidiary of Vectren




EPA						Environmental Protection Agency

Equity Distribution Agreement						Equity Distribution Agreement, dated as of January 10, 2024, by and between CenterPoint Energy, the ATM Managers, the ATM Forward Purchasers and the ATM Forward Sellers
Equity Purchase Agreement						Equity Purchase Agreement, dated as of May 21, 2023, by and between Vectren Energy Services and ESG Holdings Group
ERCOT						Electric Reliability Council of Texas
ESG Holdings Group						ESG Holdings Group, LLC, a Delaware limited liability company, and an affiliate of Oaktree Capital Management
Exchange Act						The Securities Exchange Act of 1934, as amended
February 2021 Winter Storm Event						The extreme and unprecedented winter weather event in February 2021 (Winter Storm Uri) that resulted in electricity generation supply shortages, including in Texas, and natural gas supply shortages and increased wholesale prices of natural gas in the United States, primarily due to prolonged freezing temperatures
FASB						Financial Accounting Standards Board
FERC						Federal Energy Regulatory Commission

Fitch						Fitch Ratings, Inc.
Form 10-Q						Quarterly Report on Form 10-Q




GHG						Greenhouse gases

GRIP						Gas Reliability Infrastructure Program

GWh						Gigawatt-hours
Houston Electric						CenterPoint Energy Houston Electric, LLC and its subsidiaries
IAS						International Accounting Standards

IDEM						Indiana Department of Environmental Management
Indiana Electric						Operations of SIGECO’s electric transmission and distribution services, and includes its power generating and wholesale power operations
Indiana Gas						Indiana Gas Company, Inc., formerly a wholly-owned subsidiary of Vectren, acquired by CERC on June 30, 2022
Indiana North						Gas operations of Indiana Gas
Indiana South						Gas operations of SIGECO
Indiana Utilities						The combination of Indiana Electric, Indiana North and Indiana South


Interim Condensed Financial Statements						Unaudited condensed consolidated interim financial statements and combined notes
IRA						Inflation Reduction Act of 2022

IRP						Integrated Resource Plan
IRS						Internal Revenue Service
IURC						Indiana Utility Regulatory Commission



kV						Kilovolt
LAMS Asset Purchase Agreement						Asset Purchase Agreement, dated as of February 19, 2024, by and among CERC Corp. and the LAMS Buyers
LAMS Buyers						Delta Utilities No. LA, LLC, a Delaware limited liability company, Delta Utilities S. LA, LLC, a Delaware limited liability company, Delta Utilities MS, LLC, a Delaware limited liability company, and Delta Shared Services Co., LLC, a Delaware limited liability company
LDC						Local distribution company



LPSC						Louisiana Public Service Commission


M&DOT						Mortgage and Deed of Trust, dated November 1, 1944, between Houston Lighting and Power Company and Chase Bank of Texas, National Association (formerly, South Texas Commercial National Bank of Houston), as Trustee, as amended and supplemented
MDL						Multi-district litigation
Merger						The merger of Merger Sub with and into Vectren on the terms and subject to the conditions set forth in the Merger Agreement, with Vectren continuing as the surviving corporation and as a wholly-owned subsidiary of CenterPoint Energy, Inc.
Merger Agreement						Agreement and Plan of Merger, dated as of April 21, 2018, among CenterPoint Energy, Vectren and Merger Sub

Merger Sub						Pacer Merger Sub, Inc., an Indiana corporation and wholly-owned subsidiary of CenterPoint Energy


GLOSSARY
MGP						Manufactured gas plant
MISO						Midcontinent Independent System Operator


MMBtu						One million British thermal units
Moody’s						Moody’s Investors Service, Inc.

MPSC						Mississippi Public Service Corporation
MPUC						Minnesota Public Utilities Commission

MW						Megawatt
NERC						North American Electric Reliability Corporation


NOLs						Net operating losses

NRG						NRG Energy, Inc.
NYSE						New York Stock Exchange
Oriden						Oriden LLC
Origis						Origis Energy USA Inc.




OUCC						Indiana Office of Utility Consumer Counselor

Posey Solar						Posey Solar, LLC, a special purpose entity



PPA						Power Purchase Agreement
PRPs						Potentially responsible parties
PTCs						Production Tax Credits
PUCO						Public Utilities Commission of Ohio
PUCT						Public Utility Commission of Texas
Railroad Commission						Railroad Commission of Texas
RCRA						Resource Conservation and Recovery Act of 1976
Registrants						CenterPoint Energy, Houston Electric and CERC, collectively

REP						Retail electric provider
Restoration Bond Company						CenterPoint Energy Restoration Bond Company, LLC, a wholly-owned subsidiary of Houston Electric
Restructuring						CERC Corp.’s common control acquisition of Indiana Gas and VEDO from VUH on June 30, 2022

ROE						Return on equity
ROU						Right of use
RRA						Rate Regulation Adjustment
RSP						Rate Stabilization Plan
S&P						S&P Global Ratings
Scope 1 emissions						Direct source of emissions from a company’s operations
Scope 2 emissions						Indirect source of emissions from a company’s energy usage
Scope 3 emissions						Indirect source of emissions from a company’s end-users
SEC						Securities and Exchange Commission

Securitization Bonds						Transition and system restoration bonds issued by the Bond Companies and SIGECO Securitization Bonds issued by the SIGECO Securitization Subsidiary
Series A Preferred Stock						CenterPoint Energy’s Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share, with a liquidation preference of $1,000 per share



SIGECO						Southern Indiana Gas and Electric Company, a wholly-owned subsidiary of Vectren
SIGECO Securitization Bonds						SIGECO Securitization Subsidiary’s Series 2023-A Senior Secured Securitization Bonds
SIGECO Securitization Subsidiary						SIGECO Securitization I, LLC, a direct, wholly-owned subsidiary of SIGECO
SOFR						Secured Overnight Financing Rate

SRC						Sales Reconciliation Component


TBD						To be determined

TCJA						Tax reform legislation informally called the Tax Cuts and Jobs Act of 2017
TCOS						Transmission Cost of Service
TCRF						Transmission Cost Recovery Factor
TDSIC						Transmission, Distribution and Storage System Improvement Charge
TDU						Transmission and distribution utility
TEEEF						Assets leased or costs incurred as “temporary emergency electric energy facilities” under the Public Utility Regulatory Act Section 39.918, also referred to as mobile generation


GLOSSARY
Topic 326						Accounting Standards Update 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Utility Holding						Utility Holding, LLC, a wholly-owned subsidiary of CenterPoint Energy
Vectren						Vectren, LLC, which converted its corporate structure from Vectren Corporation to a limited liability company on June 30, 2022, a wholly-owned subsidiary of CenterPoint Energy as of February 1, 2019
Vectren Energy Services						Vectren Energy Services Corporation, an Indiana corporation and a wholly-owned subsidiary of CenterPoint Energy
VEDO						Vectren Energy Delivery of Ohio, LLC, which converted its corporate structure from Vectren Energy Delivery of Ohio, Inc. to a limited liability company on June 13, 2022, formerly a wholly-owned subsidiary of Vectren, acquired by CERC on June 30, 2022
VIE						Variable interest entity

Vistra Energy Corp.						Texas-based energy company focused on the competitive energy and power generation markets
VRP						Voluntary Remediation Program
VUH						Vectren Utility Holdings, LLC, which converted its corporate structure from Vectren Utility Holdings, Inc. to a limited liability company on June 30, 2022, a wholly-owned subsidiary of Vectren

WBD Common						Warner Bros. Discovery, Inc. Series A common stock
Winter Storm Elliott						From December 21 to 26, 2022, a historic extratropical cyclone created winter storm conditions, including blizzards, high winds, snowfall and record cold temperatures across the majority of the United States and parts of Canada
ZENS						2.0% Zero-Premium Exchangeable Subordinated Notes due 2029
ZENS-Related Securities						As of March 31, 2024 and December 31, 2023, consisted of AT&T Common, Charter Common and WBD Common
2023 Form 10-K						Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as filed with the SEC on February 20, 2024

From time to time the Registrants make statements concerning their expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied by these statements. You can generally identify forward-looking statements by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “target,” “will” or other similar words.

The Registrants have based their forward-looking statements on management’s beliefs and assumptions based on information reasonably available to management at the time the statements are made. The Registrants caution you that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Therefore, the Registrants cannot assure you that actual results will not differ materially from those expressed or implied by the Registrants’ forward-looking statements. In this Form 10-Q, unless context requires otherwise, the terms “our,” “we” and “us” are used as abbreviated references to CenterPoint Energy, Inc. together with its consolidated subsidiaries, including Houston Electric, CERC and SIGECO.

You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and the Registrants undertake no obligation to update or revise any forward-looking statements. Investors should note that the Registrants announce material financial and other information in SEC filings, press releases and public conference calls. Based on guidance from the SEC, the Registrants may use the Investors section of CenterPoint Energy’s website (www.centerpointenergy.com) to communicate with investors about the Registrants. It is possible that the financial and other information posted there could be deemed to be material information. The information on CenterPoint Energy’s website is not part of this combined Form 10-Q.


	Three Months Ended March 31,

		2024		2023
		(in millions, except per share amounts)
Revenues:
Utility revenues		$	2,607	$	2,717
Non-utility revenues		13		62
Total		2,620		2,779
Expenses:
Utility natural gas, fuel and purchased power		787		1,078
Non-utility cost of revenues, including natural gas		1		40
Operation and maintenance		709		663
Depreciation and amortization		363		319
Taxes other than income taxes		144		138

Total		2,004		2,238
Operating Income		616		541
Other Income (Expense):
Gain (loss) on equity securities		(83)		38
Gain (loss) on indexed debt securities		85		(39)

Interest expense and other finance charges		(198)		(148)
Interest expense on Securitization Bonds		(6)		(2)




Other income, net		14		13
Total		(188)		(138)
Income Before Income Taxes		428		403
Income tax expense		78		78


Net Income		350		325
Income allocated to preferred shareholders		—		12
Income Available to Common Shareholders		$	350	$	313



Basic Earnings Per Common Share		$	0.55	$	0.50


Diluted Earnings Per Common Share		$	0.55	$	0.49

Weighted Average Common Shares Outstanding, Basic		632		630
Weighted Average Common Shares Outstanding, Diluted		634		633


	March 31, 2024		December 31, 2023
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents ($132 and $90 related to VIEs, respectively)	$	161	$	90
Investment in equity securities	458		541

Accounts receivable ($20 and $21 related to VIEs, respectively), less allowance for credit losses of $32 and $27, respectively	675		710
Accrued unbilled revenues ($2 and $2 related to VIEs, respectively), less allowance for credit losses of $2 and $2, respectively	372		516

Natural gas and coal inventory	104		197
Materials and supplies	559		573
Non-trading derivative assets	3		—
Taxes receivable	204		94
Current assets held for sale	1,325		—
Regulatory assets	294		161
Prepaid expenses and other current assets ($15 and $15 related to VIEs, respectively)	131		145
Total current assets	4,286		3,027
Property, Plant and Equipment, net:
Property, plant and equipment	39,631		40,396
Less: accumulated depreciation and amortization	10,252		10,543
Property, plant and equipment, net	29,379		29,853
Other Assets:
Goodwill	3,943		4,160
Regulatory assets ($367 and $402 related to VIEs, respectively)	2,428		2,513






Other non-current assets	163		162
Total other assets	6,534		6,835
Total Assets	$	40,199	$	39,715


	March 31, 2024		December 31, 2023
	(in millions, except par value and shares)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings	$	—	$	4
Current portion of VIE Securitization Bonds long-term debt	178		178
Indexed debt, net	4		5
Current portion of other long-term debt	850		872
Indexed debt securities derivative	520		605
Accounts payable	753		917

Taxes accrued	193		291
Interest accrued	208		236
Dividends accrued	—		126
Customer deposits	97		111
Non-trading derivative liabilities	9		9


Current liabilities held for sale	224		—
Other current liabilities	394		510
Total current liabilities	3,430		3,864
Other Liabilities:
Deferred income taxes, net	4,295		4,079
Non-trading derivative liabilities	3		3
Benefit obligations	585		572
Regulatory liabilities	3,046		3,208

Other non-current liabilities	725		763
Total other liabilities	8,654		8,625
Long-term Debt, net:
VIE Securitization Bonds, net	320		320
Other long-term debt, net	17,797		17,239
Total long-term debt, net	18,117		17,559
Commitments and Contingencies (Note 13)

Shareholders’ Equity:

Common stock, $0.01 par value, 1,000,000,000 shares authorized, 633,166,053 shares and 631,225,829 shares outstanding, respectively	6		6
Additional paid-in capital	8,583		8,604
Retained earnings	1,442		1,092
Accumulated other comprehensive loss	(33)		(35)
Total shareholders’ equity	9,998		9,667
Total Liabilities and Shareholders’ Equity	$	40,199	$	39,715


	Three Months Ended March 31,
	2024		2023
	(in millions)
Cash Flows from Operating Activities:
Net income	$	350	$	325


Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	363		319

Deferred income taxes	193		(13)





Loss (gain) on equity securities	83		(38)
Loss (gain) on indexed debt securities	(85)		39



Pension contributions	(2)		(2)
Changes in other assets and liabilities:
Accounts receivable and unbilled revenues, net	72		351

Inventory	93		95
Taxes receivable	(110)		13
Accounts payable	(70)		(323)

Net regulatory assets and liabilities	(145)		1,025

Other current assets and liabilities	(224)		(86)
Other non-current assets and liabilities	40		6
Other operating activities, net	(20)		2


Net cash provided by operating activities	538		1,713
Cash Flows from Investing Activities:
Capital expenditures	(845)		(1,123)










Other investing activities, net	1		(32)


Net cash used in investing activities	(844)		(1,155)
Cash Flows from Financing Activities:
Decrease in short-term borrowings, net	(4)		(11)

Proceeds from (payments of) commercial paper, net	157		(1,315)
Proceeds from long-term debt and term loans	398		3,026
Payments of long-term debt and term loans, including make-whole premiums	(22)		(2,036)




Payment of debt issuance costs	(3)		(16)


Payment of dividends on Common Stock	(126)		(120)
Payment of dividends on Preferred Stock	—		(24)
Proceeds from issuance of Common Stock, net	3		—




Other financing activities, net	(27)		(23)


Net cash provided by (used in) financing activities	376		(519)
Net Increase in Cash, Cash Equivalents and Restricted Cash	70		39
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	109		91
Cash, Cash Equivalents and Restricted Cash at End of Period	$	179	$	130


	Three Months Ended March 31,
		2024	2023
			Shares	Amount		Shares	Amount
			(in millions of dollars and shares, except authorized shares and par value amounts)
Cumulative Preferred Stock, $0.01 par value; authorized 20,000,000 shares
Balance, beginning of period			—	$	—	1	$	790




Balance, end of period			—	—		1	790
Common Stock, $0.01 par value; authorized 1,000,000,000 shares
Balance, beginning of period			631	6		630	6

Issuances related to benefit and investment plans			2	—		1	—
Balance, end of period			633	6		631	6
Additional Paid-in-Capital
Balance, beginning of period				8,604			8,568
Issuances of Common Stock, net of issuance costs				3			—
Issuances related to benefit and investment plans				(24)			(10)


Balance, end of period				8,583			8,558
Retained Earnings
Balance, beginning of period				1,092			709
Net income				350			325







Balance, end of period				1,442			1,034
Accumulated Other Comprehensive Loss
Balance, beginning of period				(35)			(31)
Other comprehensive income (loss)				2			(1)
Balance, end of period				(33)			(32)
Total Shareholders’ Equity				$	9,998		$	10,356


	March 31, 2024		December 31, 2023
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents ($109 and $76 related to VIEs, respectively)	$	109	$	76
Accounts receivable ($18 and $19 related to VIEs, respectively), less allowance for credit losses of $1 and $1, respectively	265		295
Accounts and notes receivable–affiliated companies	586		251
Accrued unbilled revenues	122		142
Materials and supplies	410		409
Taxes receivable	5		38


Prepaid expenses and other current assets ($13 and $13 related to VIEs, respectively)	32		48
Total current assets	1,529		1,259
Property, Plant and Equipment, net:
Property, plant and equipment	19,891		19,515
Less: accumulated depreciation and amortization	4,555		4,469
Property, plant and equipment, net	15,336		15,046
Other Assets:
Regulatory assets ($42 and $74 related to VIEs, respectively)	725		752

Other non-current assets	33		29
Total other assets	758		781
Total Assets	$	17,623	$	17,086


	March 31, 2024		December 31, 2023
	(in millions)
LIABILITIES AND MEMBER’S EQUITY
Current Liabilities:

Current portion of VIE Securitization Bonds long-term debt	$	161	$	161

Accounts payable	347		351
Accounts and notes payable–affiliated companies	89		104
Taxes accrued	83		155
Interest accrued	115		99

Other current liabilities	86		111
Total current liabilities	881		981
Other Liabilities:
Deferred income taxes, net	1,397		1,406
Benefit obligations	40		32
Regulatory liabilities	958		1,025

Other non-current liabilities	122		107
Total other liabilities	2,517		2,570



Long-Term Debt, net	7,823		7,426
Commitments and Contingencies (Note 13)
Member’s Equity:
Common stock	—		—
Additional paid-in capital	4,975		4,745
Retained earnings	1,427		1,364

Total member’s equity	6,402		6,109
Total Liabilities and Member’s Equity	$	17,623	$	17,086


	Three Months Ended March 31,
	2024		2023
	(in millions)
Cash Flows from Operating Activities:
Net income	$	99	$	108
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	199		159
Deferred income taxes	(11)		18


Changes in other assets and liabilities:
Accounts and notes receivable, net	51		86
Accounts receivable/payable–affiliated companies	(15)		(57)
Inventory	(1)		(34)
Accounts payable	25		3
Taxes receivable	33		—
Net regulatory assets and liabilities	(79)		(95)
Other current assets and liabilities	(79)		(90)
Other non-current assets and liabilities	23		1
Other operating activities, net	(4)		(5)
Net cash provided by operating activities	241		94
Cash Flows from Investing Activities:
Capital expenditures	(461)		(587)
Increase in notes receivable–affiliated companies	(335)		(313)


Other investing activities, net	1		(5)
Net cash used in investing activities	(795)		(905)
Cash Flows from Financing Activities:


Proceeds from long-term debt	398		898

Decrease in notes payable–affiliated companies	—		(642)
Dividend to parent	(36)		(51)
Contribution from parent	230		650

Payment of debt issuance costs	(3)		(7)

Other financing activities, net	(2)		(1)
Net cash provided by financing activities	587		847
Net Increase in Cash, Cash Equivalents and Restricted Cash	33		36
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	89		88
Cash, Cash Equivalents and Restricted Cash at End of Period	$	122	$	124


	March 31, 2024		December 31, 2023
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	17	$	1
Accounts receivable, less allowance for credit losses of $29 and $25, respectively	343		356
Accrued unbilled revenues, less allowance for credit losses of $2 and $1, respectively	214		329
Accounts and notes receivable–affiliated companies	37		43

Materials and supplies	98		107
Natural gas inventory	69		156

Taxes receivable	137		101

Current assets held for sale	1,230		—
Regulatory assets	291		161
Prepaid expenses and other current assets	30		55
Total current assets	2,466		1,309
Property, Plant and Equipment, net:
Property, plant and equipment	14,671		15,672
Less: accumulated depreciation and amortization	3,961		4,169
Property, plant and equipment, net	10,710		11,503
Other Assets:
Goodwill	1,461		1,583
Regulatory assets	790		850




Other non-current assets	51		51
Total other assets	2,302		2,484
Total Assets	$	15,478	$	15,296


	March 31, 2024		December 31, 2023
	(in millions)
LIABILITIES AND STOCKHOLDER’S EQUITY
Current Liabilities:
Short-term borrowings	$	—	$	4

Accounts payable	271		392
Accounts and notes payable–affiliated companies	112		99

Taxes accrued	118		145
Interest accrued	44		70
Customer deposits	81		95
Non-trading derivative liabilities	8		8
Current liabilities held for sale	224		—
Other current liabilities	232		274
Total current liabilities	1,090		1,087
Other Liabilities:
Deferred income taxes, net	1,370		1,246

Non-trading derivative liabilities	2		3
Benefit obligations	74		74
Regulatory liabilities	1,796		1,882

Other non–current liabilities	400		455
Total other liabilities	3,642		3,660
Long-Term Debt, net	4,719		4,670
Commitments and Contingencies (Note 13)
Stockholder’s Equity:
Common stock	—		—
Additional paid-in capital	4,229		4,229
Retained earnings	1,783		1,634
Accumulated other comprehensive income	15		16
Total stockholder’s equity	6,027		5,879
Total Liabilities and Stockholder’s Equity	$	15,478	$	15,296


	Three Months Ended March 31,
	2024		2023
	(in millions)
Cash Flows from Operating Activities:
Net income	$	264	$	212
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	127		118

Deferred income taxes	106		21


Changes in other assets and liabilities:
Accounts receivable and unbilled revenues, net	21		233
Accounts receivable/payable–affiliated companies	18		(90)
Inventory	82		141
Taxes receivable	(36)		—
Accounts payable	(81)		(289)



Net regulatory assets and liabilities	(69)		1,136

Other current assets and liabilities	(53)		45
Other non-current assets and liabilities	12		3
Other operating activities, net	(13)		1
Net cash provided by operating activities	378		1,531
Cash Flows from Investing Activities:
Capital expenditures	(303)		(391)
Decrease (increase) in notes receivable–affiliated companies	1		(30)


Other investing activities, net	13		(2)


Net cash used in investing activities	(289)		(423)
Cash Flows from Financing Activities:
Decrease in short-term borrowings, net	(4)		(11)

Proceeds from (payments of) commercial paper, net	48		(805)
Proceeds from long-term debt and term loan	—		1,698
Payments of long-term debt and term loan	—		(1,775)

Dividends to parent	(115)		(204)
Payment of debt issuance costs	—		(9)





Other financing activities, net	(2)		(1)


Net cash used in financing activities	(73)		(1,107)
Net Increase in Cash, Cash Equivalents and Restricted Cash	16		1
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	1		—
Cash, Cash Equivalents and Restricted Cash at End of Period	$	17	$	1

The following combined discussion and analysis should be read in combination with the Interim Condensed Financial Statements contained in this combined Form 10-Q and the Registrants’ combined 2023 Form 10-K. When discussing CenterPoint Energy’s consolidated financial information, it includes the results of Houston Electric and CERC, which, along with CenterPoint Energy, are collectively referred to as the Registrants. Unless the context indicates otherwise, specific references to Houston Electric and CERC also pertain to CenterPoint Energy. In this combined Form 10-Q, the terms “our,” “we” and “us” are used as abbreviated references to CenterPoint Energy, Inc. together with its consolidated subsidiaries, including Houston Electric and CERC, unless otherwise stated. No Registrant makes any representations as to the information related solely to CenterPoint Energy or the subsidiaries of CenterPoint Energy other than itself.


	Three Months Ended March 31,
		2024			2023			Favorable (Unfavorable)
		(in millions, except operating statistics)
Revenues		$	1,049		$	952		$	97
Expenses:
Utility natural gas, fuel and purchased power		43			60			17
Operation and maintenance		475			426			(49)
Depreciation and amortization		226			191			(35)
Taxes other than income taxes		78			67			(11)

Total expenses		822			744			(78)
Operating Income		227			208			19
Other Income (Expense):
Interest expense and other finance charges		(91)			(61)			(30)

Other income, net		16			12			4
Income Before Income Taxes		152			159			(7)
Income tax expense		31			36			5
Net Income		$	121		$	123		$	(2)
Throughput (in GWh):
Residential		5,963			5,968			—		%
Total		23,063			21,756			6		%
Weather (percentage of normal weather for service area):
Cooling degree days		104		%	134		%	(30)		%
Heating degree days		91		%	87		%	4		%
Number of metered customers at end of period:
Residential		2,604,026			2,547,297			2		%
Total		2,932,702			2,871,667			2		%


	Favorable (Unfavorable)

	(in millions)
Revenues
Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below	$	55
Customer rates and the impact of the change in rate design	42
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items below	8
Customer growth	6


Miscellaneous revenues, including service connections and off-system sales	2
Energy efficiency, and other pass-through, offset in operation and maintenance below	2
Equity return, related to the annual true-up of transition charges for amounts over or under collected in prior periods	1
Weather, efficiency improvements and other usage impacts	(2)
Cost of fuel and purchased power, offset in utility natural gas, fuel and purchased power below	(17)
Total	$	97
Utility natural gas, fuel and purchased power
Cost of fuel, including coal, natural gas, and fuel oil, offset in revenues above	$	15
Cost of purchased power, offset in revenues above	2
Total	$	17
Operation and maintenance
Transmission costs billed by transmission providers, offset in revenues above	$	(28)
All other operation and maintenance expense, including materials and supplies and insurance	(9)
Labor and benefits	(9)
Contract services	(1)





Energy efficiency, and other pass-through, offset in revenues above	(2)
Total	$	(49)
Depreciation and amortization
Ongoing additions to plant-in-service	$	(30)
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items	(5)
Total	$	(35)
Taxes other than income taxes


Incremental capital projects placed in service, and the impact of updated property tax rates	$	(8)
Franchise fees and other taxes	(3)
Total	$	(11)
Interest expense and other finance charges
Changes in outstanding debt	$	(18)
Other, primarily AFUDC and impacts of regulatory deferrals	(9)
Bond Companies and SIGECO Securitization Subsidiary, offset in other line items	(3)
Total	$	(30)
Other income, net
Other income, including AFUDC - Equity	$	4


Total	$	4


	Three Months Ended March 31,
		2024			2023			Favorable (Unfavorable)
		(in millions, except operating statistics)
Revenues		$	1,570		$	1,775		$	(205)
Expenses:
Utility natural gas, fuel and purchased power		744			1,018			274
Non-utility cost of revenues, including natural gas		1			1			—
Operation and maintenance		234			228			(6)
Depreciation and amortization		132			122			(10)
Taxes other than income taxes		65			70			5
Total expenses		1,176			1,439			263
Operating Income		394			336			58
Other Income (Expense):

Interest expense and other finance charges		(51)			(44)			(7)

Other income, net		3			2			1
Income Before Income Taxes		346			294			52
Income tax expense		63			60			(3)
Net Income		$	283		$	234		$	49



Throughput (in Bcf):
Residential		74			96			(23)		%
Commercial and Industrial		101			133			(24)		%
Total		175			229			(24)		%
Weather (percentage of 10-year average for service area):
Heating degree days		82		%	88		%	(6)		%
Number of metered customers at end of period:
Residential		4,026,029			3,973,454			1		%
Commercial and Industrial		303,018			302,634			—		%
Total		4,329,047			4,276,088			1		%


	Favorable (Unfavorable)

	(in millions)
Revenues

Cost of natural gas, offset in utility natural gas, fuel and purchased power below	$	(274)
Energy efficiency and other pass-through, offset in operation and maintenance below	(10)
Gross receipts tax, offset in taxes other than income taxes below	(3)




Customer growth	4
Non-volumetric and miscellaneous revenue	5
Non-utility revenues	6
Weather and usage	18
Customer rates and impact of the change in rate design	49
Total	$	(205)
Utility natural gas, fuel and purchased power

Cost of natural gas, offset in revenues above	$	274


Total	$	274



Operation and maintenance

Miscellaneous operations and maintenance expense, including bad debt expense	$	(6)
Labor and benefits	(5)
Contract services	(4)
Corporate support services	(1)


Energy efficiency and other pass-through, offset in revenues above	10
Total	$	(6)
Depreciation and amortization
Ongoing additions to plant-in-service	$	(10)


Total	$	(10)
Taxes other than income taxes
Gross receipts tax, offset in revenues above	$	3
Incremental capital projects placed in service, and the impact of updated property tax rates	2


Total	$	5



Interest expense and other finance charges
Other, primarily AFUDC and impacts of regulatory deferrals	$	(12)
Changes in outstanding debt	5
Total	$	(7)



Other income, net
AFUDC - Equity, primarily from increased capital spend	$	2

Other	(1)

Total	$	1

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, please read “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 Item 1A of Part I of the Registrants’ combined 2023 Form 10-K.


	Three Months Ended March 31,
		2024			2023			Favorable (Unfavorable)
		(in millions, except operating statistics)
Revenues:
TDU		$	868		$	760		$	108
Bond Companies		33			32			1
Total revenues		901			792			109
Expenses:
Operation and maintenance, excluding Bond Companies		437			380			(57)
Depreciation and amortization, excluding Bond Companies		167			129			(38)
Taxes other than income taxes		75			64			(11)
Bond Companies		32			30			(2)
Total expenses		711			603			(108)
Operating Income		190			189			1
Other Income (Expense):
Interest expense and other finance charges		(76)			(53)			(23)
Interest expense on Securitization Bonds		(1)			(2)			1


Other income, net		11			7			4
Income Before Income Taxes		124			141			(17)
Income tax expense		25			33			8
Net Income		$	99		$	108		$	(9)
Throughput (in GWh):
Residential		5,624			5,652			—		%
Total		22,005			20,650			7		%
Weather (percentage of 10-year average for service area):
Cooling degree days		104		%	134		%	(30)		%
Heating degree days		92		%	88		%	4		%
Number of metered customers at end of period:
Residential		2,470,925			2,414,905			2		%
Total		2,780,362			2,720,041			2		%


	Favorable (Unfavorable)

	(in millions)
Revenues
Transmission Revenues, including TCOS and TCRF, inclusive of costs billed by transmission providers, partially offset in operation and maintenance below	$	55
Customer rates and the impact of the change in rate design	49

Customer growth	5

Equity return, related to the annual true-up of transition charges for amounts over or under collected in prior periods	1

Energy efficiency, partially offset in operations and maintenance below	1


Bond Companies, offset in other line items below	1
Weather, efficiency improvements and other usage impacts	(3)

Total	$	109
Operation and maintenance, excluding Bond Companies
Transmission costs billed by transmission providers, offset in revenues above	$	(28)
All other operation and maintenance expense, including materials and supplies and insurance	(17)
Labor and benefits	(9)
Contract services	(3)



Energy efficiency, offset in revenues above	(1)
Support services	1
Total	$	(57)
Depreciation and amortization, excluding Bond Companies
Ongoing additions to plant-in-service	$	(38)
Total	$	(38)
Taxes other than income taxes
Incremental capital projects placed in service, and the impact of changes to tax rates	$	(11)


Total	$	(11)
Bond Companies expense
Operations and maintenance and depreciation expense, offset in revenues above	$	(2)
Total	$	(2)
Interest expense and other finance charges
Changes in outstanding debt	$	(16)
Other, primarily AFUDC and impacts of regulatory deferrals	(7)
Total	$	(23)




Interest expense on Securitization Bonds
Lower outstanding principal balance, offset in revenues above	$	1
Total	$	1
Other income, net
Other income, including AFUDC - Equity	$	4


Total	$	4

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, please read “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 Item 1A of Part I of the Registrants’ combined 2023 Form 10-K.


	Three Months Ended March 31,
		2024			2023			Favorable (Unfavorable)
		(in millions, except operating statistics)
Revenues		$	1,512		$	1,717		$	(205)
Expenses:
Utility natural gas		724			998			274
Non-utility cost of revenues, including natural gas		1			1			—
Operation and maintenance		226			218			(8)
Depreciation and amortization		127			118			(9)
Taxes other than income taxes		64			69			5
Total expenses		1,142			1,404			262
Operating Income		370			313			57
Other Income (Expense):

Interest expense and other finance charges		(49)			(42)			(7)

Other income, net		3			1			2
Income Before Income Taxes		324			272			52
Income tax expense		60			60			—


Net Income		$	264		$	212		$	52
Throughput (in Bcf):
Residential		71			94			(24)		%
Commercial and Industrial		93			125			(26)		%
Total		164			219			(25)		%
Weather (percentage of 10-year average for service area):
Heating degree days		82		%	89		%	(7)		%
Number of metered customers at end of period:
Residential		3,921,286			3,869,044			1		%
Commercial and Industrial		292,398			292,014			—		%
Total		4,213,684			4,161,058			1		%


	Favorable (Unfavorable)

	(in millions)
Revenues

Cost of natural gas, offset in utility natural gas, fuel and purchased power below		$	(274)
Energy efficiency and other pass-through, offset in operation and maintenance below		(7)
Gross receipts tax, offset in taxes other than income taxes below		(3)


Non-volumetric and miscellaneous revenue		4
Customer growth		4

Non-utility revenues		6
Weather and usage		18
Customer rates and impact of the change in rate design		47
Total		$	(205)
Utility natural gas, fuel and purchased power

Cost of natural gas, offset in revenues above		$	274


Total		$	274



Operation and maintenance
Miscellaneous operations and maintenance expense, including bad debt expense		$	(6)
Labor and benefits		(4)
Contract services		(4)

Corporate support services		(1)

Energy efficiency and other pass-through, offset in revenues above		7



Total		$	(8)
Depreciation and amortization
Ongoing additions to plant-in-service		$	(9)


Total		$	(9)
Taxes other than income taxes
Gross receipts tax, offset in revenues above		$	3
Incremental capital projects placed in service, and the impact of updated property tax rates		2

Total		$	5



Interest expense and other finance charges
Other, primarily AFUDC and impacts of regulatory deferrals		$	(12)
Changes in outstanding debt		5
Total		$	(7)



Other income, net
AFUDC - Equity, primarily from increased capital spend		$	2



Total		$	2

On February 23, 2021, Indiana Electric filed a CPCN with the IURC seeking approval to purchase the Posey Solar project. On October 27, 2021, the IURC issued an order approving the CPCN, authorizing Indiana Electric to purchase the Posey Solar project through a BTA to acquire its solar array assets for a fixed purchase price and approved recovery of costs via a levelized rate over the anticipated 35-year life. Due to community feedback and rising project costs caused by inflation and supply chain issues affecting the energy industry, Indiana Electric, along with Arevon, the developer, announced plans in January 2022 to downsize the Posey Solar project to 191 MW. Indiana Electric collaboratively agreed to the scope change, and on February 1, 2023, Indiana Electric entered into an amended and restated BTA that is contingent on further IURC review and approval. On February 7, 2023, Indiana Electric filed a CPCN with the IURC to approve the amended BTA. With the passage of the IRA, Indiana Electric can now pursue PTCs for solar projects. Indiana Electric requested that project costs, net of PTCs, be recovered in rate base rather than a levelized rate, through base rates or the CECA mechanism, depending on which provides more timely recovery. On September 6, 2023 the IURC issued an order approving the CPCN. The Posey Solar project is expected to be placed in service in 2025 and recovered through base rates.

On July 5, 2022, Indiana Electric entered into a BTA to acquire a 130 MW solar array in Pike County, Indiana through a special purpose entity for a capped purchase price. A CPCN for the project was filed with the IURC on July 29, 2022. On September 21, 2022, an agreement in principle was reached resolving all the issues between Indiana Electric and OUCC. The Stipulation and Settlement agreement was filed on October 6, 2022 and a settlement hearing was held on November 1, 2022. On January 11, 2023, the IURC issued an order approving the settlement agreement authorizing Indiana Electric to purchase and acquire the Pike County solar project through a BTA and approved the estimated cost. The IURC also designated the project as a clean energy project under applicable Indiana regulations, approved the proposed levelized rate and associated ratemaking and accounting treatment. Due to inflationary pressures, the developer disclosed that costs have exceeded the agreed upon levels in the BTA. After negotiations, Indiana Electric and the developer were not able to agree upon updated pricing. As a result, on February 27, 2024, Indiana Electric provided notice that it was exercising its right to terminate the BTA, which terminated all further obligations of Indiana Electric with respect to the project.

On January 10, 2023, Indiana Electric filed a CPCN with the IURC to acquire a wind energy generating facility with installed capacity of 200 MWs through a BTA, consistent with its 2019/2020 IRP that calls for up to 300 MWs of wind generation. The wind project is located in MISO’s Central Region. Indiana Electric received approval from the IURC to recover the costs of the wind facility via the CECA mechanism, which is expected to be placed in service by the end of 2026. On June 6, 2023 the IURC issued an order approving the CPCN, thereby authorizing Indiana Electric to purchase the wind generating facility. However, as of the date of the filing of this Form 10-Q, Indiana Electric has not entered into any definitive agreement relating to this wind energy generating facility, and it is not certain that a definitive agreement will be entered into at all.

Indiana Electric also sought approval in February 2021 for a 100 MW solar PPA with Clenera LLC in Warrick County, Indiana. The request accounted for increased cost of debt related to this PPA, which provides equivalent equity return to offset imputed debt during the 25 year life of the PPA. In October 2021, the IURC approved the Warrick County solar PPA but denied the request to preemptively offset imputed debt in the PPA cost. Due to rising project costs caused by inflation and supply chain issues affecting the energy industry, Clenera LLC and Indiana Electric were compelled to renegotiate terms of the agreement to increase the PPA price. On January 17, 2023, Indiana Electric filed a request with the IURC to amend the previously approved PPA with certain modifications. Revised purchase power costs are requested to be recovered through the fuel adjustment clause proceedings over the term of the amended PPA. On May 30, 2023, the IURC approved the Warrick County solar amended PPA; however, due to MISO interconnection study delays, the developer disclosed the project in-service date could be delayed from 2025 to 2026.

County, Indiana had increased. The increase was largely driven by escalating commodity and supply chain costs impacting manufacturers worldwide. In August 2022, Indiana Electric and Origis entered into an amended PPA, which reiterated the terms contained in the 2021 PPA with certain modifications. On February 22, 2023, the IURC approved the Knox County solar amended PPA; however, due to MISO interconnection delays, the project in-service date will be delayed from 2024 to 2025. On January 17, 2023, Indiana Electric filed a request with the IURC to amend the previously approved PPA with Oriden with certain modifications. Revised purchase power costs were approved to be recovered through the fuel adjustment clause proceedings over the term of the amended PPA with Oriden. On May 30, 2023, the IURC approved the Vermillion County solar amended PPA; however, due to MISO interconnection study delays, the developer disclosed the project in-service date could be delayed from 2025 to 2026.

On June 17, 2021, Indiana Electric filed a CPCN with the IURC seeking approval to construct two natural gas combustion turbines to replace portions of its existing coal-fired generation fleet. On June 28, 2022, the IURC approved the CPCN. The estimated $334 million turbine facility is being constructed at the previous site of the A.B. Brown power plant in Posey County, Indiana and is expected to provide a combined output of 460 MW. Indiana Electric received approval for depreciation expense and post in-service carrying costs to be deferred in a regulatory asset until the date Indiana Electric’s base rates include a return on and recovery of depreciation expense on the facility. A new approximately 23.5 mile pipeline will be constructed and operated by Texas Gas Transmission, LLC to supply natural gas to the turbine facility. FERC granted a certificate to construct the pipeline on October 20, 2022. The period to challenge FERC’s certificate in a federal district court expired on February 20, 2023. Indiana Electric granted its contractor a full notice to proceed to construct the turbines on December 9, 2022. The facility is targeted to be operational by mid-year 2025. Recovery of the proposed natural gas combustion turbines and regulatory asset is included in the forecasted test year in the Indiana Electric rate case, which was filed with the IURC on December 5, 2023.

On December 17, 2020, Houston Electric filed a CPCN with the PUCT for approval to build a 345 kV transmission line in Wharton County, Texas connecting the Hillje substation on Houston Electric’s transmission system to the planned 610 MW Space City Solar Generation facility being developed by third-party developer EDF Renewables. In November 2021, the PUCT approved a route that was estimated to cost $25 million and issued a final order on January 12, 2022. There have been project delays due to supply chain constraints in the developer acquiring solar panels. Houston Electric substantially completed construction in the fall of 2023, and the transmission line is expected to be energized shortly after the generation facility is complete, which is anticipated to occur in the first half of 2025.

The Natural Gas Innovation Act was passed by the Minnesota legislature in June 2021 with bipartisan support. This law establishes a regulatory framework to enable the state’s investor-owned natural gas utilities to provide customers with access to renewable energy resources and innovative technologies, with the goal of reducing GHG emissions and advancing the state’s clean energy future. The maximum allowable cost for an innovation plan will start at 1.75% of the utility's revenue in the state and could increase to 4% by 2033, subject to review and approval by the MPUC. Specifically, the Natural Gas Innovation Act allows a natural gas utility to submit an innovation plan for approval by the MPUC which could propose the use of renewable energy resources and innovative technologies such as:

On June 28, 2023, CERC submitted its first innovation plan to the MPUC; the five-year plan includes 18 pilot projects and seven smaller research-and-development projects. These projects will deploy and evaluate a broad array of innovative resources including made-in-Minnesota alternative gases such as renewable natural gas and green hydrogen as well as pioneering technologies such as a networked geothermal district energy system and end-use carbon capture. The proposed plan requires approval from the MPUC through a review process that is expected to take about one year. The MPUC requested comments by September 15, 2023 if parties believe that the filing is incomplete based on the reporting requirements or if parties do not believe that that the MPUC’s standard informal proceeding process is appropriate. No parties filed comments regarding completeness or raising concerns that the MPUC’s standard informal procedural process is inappropriate. The initial comment period closed January 15, 2024, the reply comment period closed March 15, 2024 and supplemental comments are due May 15, 2024; CERC anticipates the MPUC will hear this matter after the final comments are received.

CenterPoint Energy’s current and future solar projects have been impacted by delays and/or increased costs. The potential delays and inflationary cost pressures communicated from the developers of our solar projects have been primarily due to (i) unavailability of solar panels and other uncertainties related to a DOC investigation on anti-dumping and countervailing duties petition filed by a domestic solar manufacturer, (ii) the December 2021 Uyghur Forced Labor Prevention Act on solar modules and other products manufactured in China's Xinjiang Uyghur Autonomous Region and (iii) persistent general global supply chain and labor availability issues. On December 2, 2022, the DOC issued its preliminary determination, finding four of the eight companies being investigated are attempting to bypass U.S. duties. On August 18, 2023, the DOC announced its final determination and found that five of the eight companies investigated are attempting to bypass U.S. duties by doing minor processing in one of the Southeast Asian countries before shipment to the United States. Pursuant to President Biden’s executive order issued in June 2022, duties will not be collected on any solar module and cell imports from these Southeast Asian countries until June 2024, as long as the imports are consumed in the U.S. market within six months of the termination of the executive order. The executive order could be subject to legal and legislative challenges and its effects remain uncertain. The resolution of these issues will determine what additional costs or delays our solar projects will be subject to. These impacts have resulted in cost increases for certain projects, and may result in cost increases in other projects, and such impacts have resulted in, or are expected to result in, the need for us to seek additional regulatory review and approvals. Additionally, significant changes to project costs and schedules as a result of these factors could impact the viability of the projects. For more information regarding potential delays, cancellations and supply chain disruptions, see “Item 1A. Risk Factors” in the Registrants’ combined 2023 Form 10-K.

On May 24, 2023, Indiana Electric filed its petition and case-in-chief with the IURC requesting, among other things, approval of its five-year plan for transmission, distribution, and storage improvements (TDSIC Plan). Intervenors filed their case-in-chief on August 16, 2023 and Indiana Electric filed rebuttal on August 29, 2023. A hearing was held on September 13, 2023 and an order approving the TDSIC Plan was issued on December 27, 2023. The approved five-year TDSIC Plan, covering the period January 1, 2024 through December 31, 2028, consists of approximately $454 million in proposed investments across seven different programs: (1) Distribution 12kV Circuit Rebuild, (2) Distribution Underground Rebuild, (3) Distribution Automation, (4) Wood Pole Replacement, (5) Transmission Line Rebuild, (6) Substation Rebuild, and (7) Substation Physical Security.

House Bill 2555 was passed by the 88th Texas Legislature in 2023 and allows an electric utility to create a transmission and distribution system resiliency plan to enhance its system through the implementation of one or more of the following measures: hardening, modernization, undergrounding certain lines, lightning mitigation measures, flood mitigation measures, information technology, cybersecurity measures, physical security measures, vegetation management, and wildfire mitigation and response. House Bill 2555 also allows an electric utility to establish a regulatory asset for distribution-related costs, including depreciation expense and carrying costs at the electric utility’s weighted average cost of capital, relating to the implementation of a transmission and distribution system resiliency plan.

On April 29, 2024, Houston Electric filed its first transmission and distribution system resiliency plan with the PUCT for review and approval. Houston Electric’s transmission and distribution system resiliency plan proposes to enhance its system over a three year period through twenty-five (25) measures related to: system hardening, grid modernization, flood mitigation, information technology, physical security, and vegetation management. Houston Electric’s transmission and distribution system resiliency plan also proposes to further analyze and identify specific wildfire risk and implement additional measures to mitigate the identified wildfire risk. The estimated capital cost is approximately $2.2 billion, the estimated incremental operations and maintenance expense is approximately $86 million over the three year period, and Houston Electric has requested that the PUCT allow Houston Electric to establish a regulatory asset for distribution related costs. The PUCT has 180 days to make a decision on Houston Electric’s transmission and distribution system resiliency plan, and a final decision is expected in the fourth quarter of 2024.

Texas Gas Rate Case. On October 30, 2023 CERC filed an application with the Railroad Commission and municipal regulatory authorities to set new natural gas base rates that would be applied consistently across the approximately 1.9 million customers. The requested increase is approximately 3.1% or $37 million based on an historical test year ending June 30, 2023. The need for a rate change is primarily driven by the continuing investment in the safety and reliability of the natural gas system, including new Intelis natural gas meters that feature an integrated safety shutoff valve, changes to depreciation rates that better reflect the actual life and salvage characteristics of assets, and changes in other costs to serve customers. The request reflects a proposed 10.50% ROE on a 60.61% equity ratio. Intervenor testimony was filed March 8, 2024, rebuttal testimony addressing intervenor issues was filed March 29, 2024 and a settlement agreement was filed on April 23, 2024. A hearing was held on April 24, 2024. A final order is expected in the second quarter of 2024.

Minnesota Rate Case. On November 1, 2023, CERC filed an application with the MPUC requesting an adjustment to delivery charges in 2024 and 2025 for the natural gas business in Minnesota. The requested increase is approximately 6.5% or $85 million for 2024 and an additional approximately 3.7% or $52 million for 2025. The need for a rate change is primarily driven by the continuing investment in the safety and reliability of the natural gas system, including new Intelis natural gas meters that feature an integrated safety shutoff valve, changes to depreciation rates that better reflect the actual life and salvage characteristics of assets, and changes in other costs to serve customers. The request reflects a proposed 10.3% ROE on a 52.5% equity ratio. Interim rates of $69 million, subject to refund, were implemented as of January 1, 2024. A decision on 2025 interim rates was delayed until the fourth quarter of 2024. The anticipated decision date of the rate case is July 1, 2025.

Indiana Electric Rate Case. On December 5, 2023, Indiana Electric filed a petition with the IURC for authority to modify its rates and charges for electric utility service through a phase-in of rates. The requested increase is approximately 16% or $119 million based on a forward looking 2025 test year. The need for a rate increase is primarily driven by the continuing investment that is being made to bolster the safety and reliability of the system and normal increases in operating expenses. The rate case reflects a proposed 10.4% ROE on a 55% equity ratio. On April 9, 2024 Indiana Electric filed rebuttal in the rate case. The requested increase remains at 16% with an updated requested increase of $115 million. A hearing is scheduled to begin May 2, 2024. A final order is expected in the fourth quarter of 2024.

Houston Electric Rate Case. On March 6, 2024, Houston Electric filed an application with the PUCT requesting authority to change rates and charges for electric transmission and distribution service. The requested increase is approximately $17 million (1%) for retail customers and $43 million (6.6%) for wholesale transmission service, excluding TCRF and rate case expenses. Texas law mandates that electric utilities file a base rate proceeding no later than every four years from the date of their last base rate proceeding final order. Houston Electric’s most recent base rate proceeding order was approved by the PUCT on March 9, 2020, in Docket No. 49421. Therefore, Houston Electric was required to file a next base rate proceeding no later than March 9, 2024. The need for a rate increase is primarily driven by the continuing investment that has been made to support customer growth and to bolster the safety and reliability of Houston Electric’s transmission and distribution system. The request reflects a proposed 10.4% ROE and a 45% equity ratio. Intervenor and PUCT Staff testimony is expected in June 2024, followed by rebuttal on July 12, 2024. A hearing on the merits is scheduled to start in late July 2024 and a final order is expected late fourth quarter of 2024 or the first quarter of 2025.

Mechanism

Annual Increase (Decrease) (1)

(in millions)

Filing
Date

Effective Date

Approval Date

Additional Information

CenterPoint Energy and Houston Electric (PUCT)

DCRF

December 2023

April 2024

March 2024

Based on the net change in distribution invested capital since its last base rate proceeding of approximately $2.5 billion for the period January 1, 2019 through September 30, 2023 for an incremental revenue increase of $86 million, adjusted for load growth. This is the second DCRF filing made in 2023; filing two DCRFs in a year was authorized in 2023 legislative session. A request for interim rates to be implemented on February 12, 2024 was also made on December 14, 2023 which was denied on January 9, 2024 by the ALJ who also granted a good cause exemption to extend the procedural schedule. On February 5, 2024, Houston Electric notified the ALJ that the parties reached an agreement in principle on all issues in this proceeding, and filed an agreed expedited motion for interim rates. On February 13, 2024, interim rates designed to collect $220 million ($73 million incremental) were approved by the ALJ, to be effective April 2024. A final order was issued by the PUCT March 7, 2024.

Rate Case

March 2024

TBD

See discussion above under Houston Electric Rate Case.

CenterPoint Energy and CERC - Beaumont/East Texas, South Texas, Houston and Texas Coast (Railroad Commission)

Rate Case

October 2023

TBD

See discussion above under Texas Gas Rate Case.

CenterPoint Energy and CERC - Minnesota (MPUC)

Rate Case

136

November 2023

TBD

See discussion above under Minnesota Rate Case.

CenterPoint Energy and CERC - Louisiana (LPSC)

RSP

September/October 2023

TBD

Based on ROE of 9.95% with 50 basis point (+/-) earnings band. The North Louisiana increase, net of TCJA effects considered outside of the earnings band and completion of COVID-19 asset recovery, is $8 million based on a test year ended June 2023 and adjusted ROE of 3.67%. The South Louisiana increase, net of TCJA effects considered outside of the earnings band and completion of COVID-19 asset recovery, is $5 million based on a test year ended June 2023 and adjusted ROE of 5.47%. The TCJA refund impact to North Louisiana and South Louisiana was $0.6 million and $0.4 million, respectively. South Louisiana interim rates were implemented on December 28, 2023, subject to refund. North Louisiana interim rates were implemented on January 29, 2024. Staff reports issued on January 31, 2024 recommended disallowances of $0.3 million and $0.2 million in North and South Louisiana, respectively. LPSC voted to approve the January 2024 staff reports on April 19, 2024. Implementation will occur after the final order is issued and compliance tariffs are approved.

CenterPoint Energy - Indiana South - Gas (IURC)

CSIA

April 2024

July 2024

TBD

Requested an increase of $35 million to rate base, which reflects approximately $3.6 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until the next rate case. The mechanism also includes a change in (over)/under-recovery variance of $0.03 million annually. OUCC is scheduled to file testimony on or before May 31, 2024. Rebuttal testimony, if needed, is due June 14, 2024. Evidentiary hearing is scheduled for July 1, 2024.

CenterPoint Energy and CERC - Indiana North - Gas (IURC)

CSIA

April 2024

July 2024

TBD

Requested an increase of $97 million to rate base, which reflects approximately $9.4 million annual increase in current revenues. 80% of revenue requirement is included in requested rate increase and 20% is deferred until the next rate case. The mechanism also includes a change in (over)/under-recovery variance of $1 million annually. OUCC is scheduled to file testimony or before May 31, 2024. Rebuttal testimony, if needed, is due June 14, 2024. Evidentiary hearing is scheduled for July 1, 2024.

Mechanism

Annual Increase (Decrease) (1)

(in millions)

Filing
Date

Effective Date

Approval Date

Additional Information

CenterPoint Energy - Indiana Electric (IURC)

Rate Case

115

December 2023

TBD

See discussion above under Indiana Electric Rate Case.

TDSIC

February 2024

TBD

Requested an increase of $36 million to rate base, which reflects a $5 million annual increase in current revenues. 80% of the revenue requirement is included in requested rate increase and 20% is deferred until next rate case. The mechanism also includes a change in (over)/under-recovery variance and a tax reform credit for a total of $1 million. The OUCC filed testimony on April 2, 2024, Indiana Electric did not file rebuttal and the evidentiary hearing is scheduled for April 30, 2024.

CECA

—

February 2024

TBD

Requested a decrease of $1 million to rate base, which reflects no change in current revenues. The mechanism also includes a change in (over)/under-recovery variance of $0.1 million. OUCC filed testimony on April 2, 2024, recommending a $0.3 million reduction in the revenue requirement, comprised almost entirely of a reduction in estimated operation and maintenance expenses and a small offset to capital investment for grant funding. CEI South filed rebuttal testimony on April 9, 2024, disagreeing with the OUCC’s reasoning behind the recommended reductions, but in an effort to help address affordability concerns, agreed to make one-time adjustment in this proceeding. The evidentiary hearing was held on April 23, 2024.

On August 16, 2022, the IRA was signed into law. The new law extends or creates tax-related energy incentives for solar, wind and alternative clean energy sources, implements, subject to certain exceptions, a 1% tax on share repurchases after December 31, 2022, and implements a 15% CAMT based on the adjusted financial statement income of certain large corporations. Corporations are entitled to a CAMT credit to the extent CAMT liability exceeds regular tax liability, which can be carried forward indefinitely and used in future years when regular tax exceeds the CAMT. It is likely that the Registrants will owe CAMT in excess of their regular tax liability beginning in 2024. As a result, the Registrants may experience a temporary increase in federal cash tax liability due to this provision beginning in 2024.

On August 3, 2015, the EPA released its CPP rule, which required a 32% reduction in carbon emissions from 2005 levels. The final rule was published in the Federal Register on October 23, 2015, and that action was immediately followed by litigation ultimately resulting in the U.S. Supreme Court staying implementation of the rule. On July 8, 2019, the EPA published the ACE rule, which (i) repealed the CPP rule; (ii) replaced the CPP rule with a program that requires states to implement a program of energy efficiency improvement targets for individual coal-fired electric generating units; and (iii) amended the implementing regulations for Section 111(d) of the Clean Air Act. On January 19, 2021, the majority of the ACE rule — including the CPP repeal, CPP replacement, and the timing-related portions of the Section 111(d) implementing rule — was struck down by the U.S. Court of Appeals for the D.C. Circuit and on October 29, 2021, the U.S. Supreme Court agreed to consider four petitions filed by various coal interests and a coalition of 19 states. On June 30, 2022, the U.S. Supreme Court ruled that the EPA exceeded its authority in promulgating the CPP. On May 11, 2023, the EPA announced proposed emission limits and guidelines for carbon dioxide from fossil fuel-fired power plants under Section 111 of the Clean Air Act which, if finalized, apply new GHG performance standards for those existing coal-fired units expected to continue operation beyond December 31, 2029. On February 29, 2024, EPA announced that it would be delaying the rulemaking as applied to existing natural gas-fired units. On April 25, 2024, the EPA released its New Source Performance Standards for Greenhouse Gas Emissions From New, Modified, Reconstructed Fossil Fuel-Fired Units; Emission Guidelines for Greenhouse Gas Emissions From Existing Fossil Fuel-Fired Electric Generating Units; and Repeal of the Affordable Clean Energy Rule. CenterPoint Energy is currently reviewing this rule, but would note that CenterPoint Energy does not currently have plans to operate any of its coal-fired units beyond December 2029.

Because Texas is an unregulated market, CenterPoint Energy’s Scope 2 estimates do not take into account Texas electric transmission and distribution assets in the line loss calculation and, in addition, exclude emissions related to purchased power in Indiana between 2024 and 2026 as estimated. CenterPoint Energy’s Scope 3 emissions estimates are based on the total natural gas supply delivered to residential and commercial customers as reported in the U.S. Energy Information Administration (EIA) Form EIA-176 reports and do not take into account the emissions of transport customers and emissions related to upstream extraction. These emission goals are expected to be used to position CenterPoint Energy to comply with anticipated future regulatory requirements from the current and future administrations to further reduce GHG emissions. CenterPoint Energy’s and CERC’s revenues, operating costs and capital requirements could be adversely affected as a result of any regulatory action that would require installation of new control technologies or a modification of their operations or would have the effect of reducing the consumption of natural gas. The IRA established the Methane Emissions Reduction Program, which imposes a charge on methane emissions from certain natural gas transmission facilities, and the EPA has proposed new regulations targeting reductions in methane emissions, which if implemented will increase costs related to production, transmission and storage of natural gas.

CenterPoint Energy’s net zero emissions goals are aligned with Indiana Electric’s generation transition plan and are expected to position Indiana Electric to comply with anticipated future regulatory requirements related to GHG emissions reductions. Houston Electric, in contrast to some electric utilities including Indiana Electric, does not generate electricity, other than TEEEF, and thus is not directly exposed to the risk of high capital costs and regulatory uncertainties that face electric utilities that burn fossil fuels to generate electricity. Nevertheless, Houston Electric’s and Indiana Electric’s revenues could be adversely affected to the extent any resulting regulatory action has the effect of reducing consumption of electricity by ultimate consumers within their respective service territories. Likewise, incentives to conserve energy or to use energy sources other than natural gas could result in a decrease in demand for the Registrants’ services. For example, Minnesota has enacted the Natural Gas Innovation Act that seeks to provide customers with access to renewable energy resources and innovative technologies, with the goal of reducing GHG emissions. Further, certain local government bodies have introduced or are considering requirements and/or incentives to reduce energy consumption by certain specified dates. For example, Minneapolis has adopted carbon emission reduction goals in an effort to decrease reliance on natural gas. Additionally, cities in Minnesota within CenterPoint Energy’s Natural Gas operational footprint are considering initiatives to eliminate natural gas use in buildings and focus on electrification. Also, Minnesota cities may consider seeking legislative authority for the ability to enact voluntary enhanced energy standards for all development projects. These initiatives could have a significant impact on CenterPoint Energy and its operations, and this impact could increase if other cities and jurisdictions in its service area enact similar initiatives. Further, our third-party suppliers, vendors and partners may also be impacted by climate change laws and regulations, which could impact CenterPoint Energy’s business by, among other things, causing permitting and construction delays, project cancellations or increased project costs passed on to CenterPoint Energy. Conversely, regulatory actions that effectively promote the consumption of natural gas because of its lower emissions characteristics would be expected to benefit CenterPoint Energy and CERC and their natural gas-related businesses. At this time, however, we cannot quantify the magnitude of the impacts from possible new regulatory actions related to GHG emissions, either positive or negative, on the Registrants’ businesses.

Compliance costs and other effects associated with climate change, reductions in GHG emissions and obtaining renewable energy sources remain uncertain. Although the amount of compliance costs remains uncertain, any new regulation or legislation relating to climate change will likely result in an increase in compliance costs. While the requirements of a federal or state rule remain uncertain, CenterPoint Energy will continue to monitor regulatory activity regarding GHG emission standards that may affect its business. Currently, CenterPoint Energy does not purchase carbon credits. In connection with its net zero emissions goals, CenterPoint Energy is expected to purchase carbon credits in the future; however, CenterPoint Energy does not currently expect the number of credits, or cost for those credits, to be material.

As a result of increased awareness regarding climate change, coupled with adverse economic conditions, availability of alternative energy sources, including private solar, microturbines, fuel cells, energy-efficient buildings and energy storage devices, and new regulations restricting emissions, including potential regulations of methane emissions, some consumers and companies may use less energy, meet their own energy needs through alternative energy sources or avoid expansions of their facilities, including natural gas facilities, resulting in less demand for the Registrants’ services. As these technologies likely become more cost-competitive option over time, whether through cost effectiveness or government incentives and subsidies, certain customers may choose to meet their own energy needs and subsequently decrease usage of the Registrants’ systems and services, which may result in, among other things, Indiana Electric’s generating facilities becoming less competitive and economical. Further, evolving investor sentiment related to the use of fossil fuels and initiatives to restrict continued production of fossil fuels have had significant impacts on CenterPoint Energy’s electric generation and natural gas businesses. For example, because Indiana Electric’s current generating facilities substantially rely on coal for their operations, certain financial institutions choose not to participate in CenterPoint Energy’s financing arrangements. Conversely, demand for the Registrants’

To address these developments, CenterPoint Energy announced its net zero emissions goals for both Scope 1 emissions and certain Scope 2 emissions by 2035. Indiana Electric’s 2019/2020 IRP identified a preferred portfolio that retires 730 MW of coal-fired generation facilities and replaces these resources with a mix of generating resources composed primarily of renewables, including solar, wind, and solar with storage, supported by dispatchable natural gas combustion turbines including a pipeline to serve such natural gas generation. Indiana Electric continues to execute on its 2019/2020 IRP and has received initial approvals for 626 MWs of the 700-1,000 MWs identified within Indiana Electric’s 2019/2020 IRP. Additionally, as reflected in its 10-year capital plan announced in September 2021, CenterPoint Energy anticipates spending over $3 billion in cleaner energy investments and enablement, which may be used to support, among other things, renewable energy generation and electric vehicle expansion. CenterPoint Energy believes its planned investments in renewable energy generation and corresponding planned reduction in its GHG emissions as part of its net zero emissions goals support global efforts to reduce the impacts of climate change. Indiana Electric has conducted a new IRP, which was submitted to the IURC in May 2023, to identify an appropriate generation resource portfolio to satisfy the needs of its customers and comply with environmental regulations. The proposed preferred portfolio is the second evolution to the generation transition plan to move away from coal-fired generation to a more sustainable portfolio of resources. Under the proposed preferred portfolio, Indiana Electric plans to convert its last remaining coal unit to natural gas by the end of 2027 and to add a significant amount of additional renewable resources through 2033. For more information regarding CenterPoint Energy’s net zero emission goals and the risks associated with them, see “Risk Factors — Risk Factors Affecting Regulatory, Environmental and Legal Risks — CenterPoint Energy is subject to operational and financial risks...” in Item 1A of Part I of the Registrants’ combined 2023 Form 10-K.

To the extent climate changes result in warmer temperatures in the Registrants’ service territories, financial results from the Registrants’ businesses could be adversely impacted. For example, CenterPoint Energy’s and CERC’s Natural Gas could be adversely affected through lower natural gas sales. On the other hand, warmer temperatures in CenterPoint Energy’s and Houston Electric’s electric service territory may increase revenues from transmission and distribution and generation through increased demand for electricity used for cooling. Another possible result of climate change is more frequent and more severe weather events, such as hurricanes, tornadoes and flooding, including such storms as the February 2021 Winter Storm Event. Since many of the Registrants’ facilities are located along or near the Texas gulf coast, increased or more severe hurricanes or tornadoes could increase costs to repair damaged facilities and restore service to customers. CenterPoint Energy’s current 10-year capital plan includes capital expenditures to maintain reliability and safety and increase resiliency of its systems as climate change may result in more frequent significant weather events. Houston Electric does not own or operate any electric generation facilities other than, since September 2021, its operation of TEEEF. Houston Electric transmits and distributes to customers of REPs electric power that the REPs obtain from power generation facilities owned by third parties. To the extent adverse weather conditions affect the Registrants’ suppliers, results from their energy delivery businesses may suffer. For example, in Texas, the February 2021 Winter Storm Event caused an electricity generation shortage that was severely disruptive to Houston Electric’s service territory and the wholesale generation market and also caused a reduction in available natural gas capacity. When the Registrants cannot deliver electricity or natural gas to customers, or customers cannot receive services, the Registrants’ financial results can be impacted by lost revenues, and they generally must seek approval from regulators to recover restoration costs. To the extent the Registrants are unable to recover those costs, or if higher rates resulting from recovery of such costs result in reduced demand for services, the Registrants’ future financial results may be adversely impacted. Further, as the intensity and frequency of significant weather events continues, it may impact our ability to secure cost-efficient insurance.

On March 6, 2024, the SEC adopted final rules that require the Registrants to disclose certain climate-related information in registration statements and annual reports. The final rules require Registrants to disclose, among other things, material climate-related risks, activities to mitigate such risks and information about the Registrants’ board of directors oversight and management’s role in managing material climate-related risks. The final rule also requires the Registrants to provide information related to any climate-related targets or goals that are material to the Registrants’ businesses, results of operations, or financial condition. A majority of the reporting requirements are applicable to the fiscal year beginning in 2025, with the addition of assurance reporting for GHG inventories starting in 2029 for large accelerated filers. Litigation challenging the new rule was filed by multiple parties in multiple jurisdictions, which have been consolidated and assigned to the U.S. District Court of Appeals for the Eighth Circuit. On April 4, 2024, the SEC announced that it is voluntarily delaying the implementation of the climate disclosure regulations while the U.S. District Court of Appeals considers the litigation. The Registrants are currently evaluating the impact of the final rules on their respective consolidated financial statements and related disclosures.

Borrowings under each of the revolving credit facilities are subject to customary terms and conditions. However, there is no requirement that the borrower makes representations prior to borrowing as to the absence of material adverse changes or litigation that could be expected to have a material adverse effect. Borrowings under each of the revolving credit facilities are subject to acceleration upon the occurrence of events of default that we consider customary. The revolving credit facilities also provide for customary fees, including commitment fees, administrative agent fees, fees in respect of letters of credit and other fees. In each of the revolving credit facilities, the spread to SOFR and the commitment fees fluctuate based on the borrower’s credit rating. Each of the Registrant’s credit facilities provide for a mechanism to replace SOFR with possible alternative benchmarks upon certain benchmark replacement events. The borrowers are currently in compliance with the various business and financial covenants in the four revolving credit facilities.

The Registrants cannot assure that the ratings set forth above will remain in effect for any given period of time or that one or more of these ratings will not be lowered or withdrawn entirely by a rating agency. The Registrants note that these credit ratings are included for informational purposes and are not recommendations to buy, sell or hold the Registrants’ securities and may be revised or withdrawn at any time by the rating agency. Each rating should be evaluated independently of any other rating. Any future reduction or withdrawal of one or more of the Registrants’ credit ratings could have a material adverse impact on the Registrants’ ability to obtain short- and long-term financing, the cost of such financings and the execution of the Registrants’ commercial strategies.

A decline in credit ratings could increase borrowing costs under the Registrants’ revolving credit facilities. If the Registrants’ credit ratings had been downgraded one notch by S&P and Moody’s from the ratings that existed as of March 31, 2024, the impact on the borrowing costs under the four revolving credit facilities would have been insignificant. A decline in credit ratings would also increase the interest rate on long-term debt to be issued in the capital markets and could negatively impact the Registrants’ ability to complete capital market transactions and to access the commercial paper market. Additionally, a decline in credit ratings could increase cash collateral requirements and reduce earnings of CenterPoint Energy’s and CERC’s Natural Gas reportable segments.

If CenterPoint Energy’s creditworthiness were to drop such that ZENS holders thought its liquidity was adversely affected or the market for the ZENS were to become illiquid, some ZENS holders might decide to exchange their ZENS for cash. Funds for the payment of cash upon exchange could be obtained from the sale of the shares of ZENS-Related Securities that CenterPoint Energy owns or from other sources. CenterPoint Energy owns shares of ZENS-Related Securities equal to approximately 100% of the reference shares used to calculate its obligation to the holders of the ZENS. ZENS exchanges result in a cash outflow because tax deferrals related to the ZENS and shares of ZENS-Related Securities would typically cease when ZENS are exchanged or otherwise retired and shares of ZENS-Related Securities are sold. The ultimate tax liability related to the ZENS and ZENS-Related Securities continues to increase by the amount of the tax benefit realized each year, and there could be a significant cash outflow when the taxes are paid as a result of the retirement or exchange of the ZENS. If all ZENS had been exchanged for cash on March 31, 2024, deferred taxes of approximately $764 million would have been payable in 2024. If all the ZENS-Related Securities had been sold on March 31, 2024, capital gains taxes of approximately $63 million would have been payable in 2024 based on 2024 tax rates in effect. For additional information about ZENS, see Note 10 to the Interim Condensed Financial Statements.

Under each of CenterPoint Energy’s, Houston Electric’s and CERC’s respective revolving credit facilities, a payment default on, or a non-payment default, event or condition that permits acceleration of, any indebtedness for borrowed money and certain other specified types of obligations (including guarantees) exceeding $125 million by the borrower or any of their respective significant subsidiaries will cause a default under such borrower’s respective credit facility or term loan agreement. Under SIGECO’s revolving credit facility, a payment default on, or a non-payment default, event or condition that permits acceleration of, any indebtedness for borrowed money and certain other specific types of obligations (including guarantees) exceeding $75 million by SIGECO or any of its significant subsidiaries will cause a default under SIGECO’s credit facility. A default by CenterPoint Energy would not trigger a default under its subsidiaries’ debt instruments or revolving credit facilities.

From time to time, the Registrants consider the acquisition or the disposition of assets or businesses or possible joint ventures, strategic initiatives or other joint ownership arrangements with respect to assets or businesses. Any determination to take action in this regard will be based on market conditions and opportunities existing at the time, and accordingly, the timing, size or success of any efforts and the associated potential capital commitments are unpredictable. The Registrants may seek to fund all or part of any such efforts with proceeds from debt and/or equity issuances. Debt or equity financing may not, however, be available to the Registrants at that time due to a variety of events, including, among others, maintenance of our credit ratings, industry conditions, general economic conditions, market conditions and market perceptions. CenterPoint Energy has increased its planned capital expenditures in its Electric and Natural Gas businesses multiple times over the recent years to support rate base growth and may continue to do so in the future. The Registrants may continue to explore asset sales as a means to efficiently finance a portion of its increased capital expenditures in the future, subject to the considerations listed above. For further information, see Note 3 to the Interim Condensed Financial Statements.

Houston Electric’s receivables from the distribution of electricity are collected from REPs that supply the electricity Houston Electric distributes to their customers. Before conducting business, a REP must register with the PUCT and must meet certain financial qualifications. Nevertheless, adverse economic conditions, weather events such as the February 2021 Winter Storm Event, structural problems in the market served by ERCOT or financial difficulties of one or more REPs could impair the ability of these REPs to pay for Houston Electric’s services or could cause them to delay such payments. Houston Electric depends on these REPs to remit payments on a timely basis, and any delay or default in payment by REPs could adversely affect Houston Electric’s cash flows. In the event of a REP default, Houston Electric’s tariff provides a number of remedies,

including the option for Houston Electric to request that the PUCT suspend or revoke the certification of the REP. Applicable regulatory provisions require that customers be shifted to another REP or a provider of last resort if a REP cannot make timely payments. However, Houston Electric remains at risk for payments related to services provided prior to the shift to the replacement REP or the provider of last resort. If a REP were unable to meet its obligations, it could consider, among various options, restructuring under the bankruptcy laws, in which event such REP might seek to avoid honoring its obligations and claims might be made against Houston Electric involving payments it had received from such REP. If a REP were to file for bankruptcy, Houston Electric may not be successful in recovering accrued receivables owed by such REP that are unpaid as of the date the REP filed for bankruptcy. However, PUCT regulations authorize utilities, such as Houston Electric, to defer bad debts resulting from defaults by REPs for recovery in future rate cases, subject to a review of reasonableness and necessity.

A critical accounting policy is one that is both important to the presentation of the Registrants’ financial condition and results of operations and requires management to make difficult, subjective or complex accounting estimates. An accounting estimate is an approximation made by management of a financial statement element, item or account in the financial statements. Accounting estimates in the Registrants’ historical consolidated financial statements measure the effects of past business transactions or events, or the present status of an asset or liability. The accounting estimates described below require the Registrants to make assumptions about matters that are highly uncertain at the time the estimate is made. Additionally, different estimates that the Registrants could have used or changes in an accounting estimate that are reasonably likely to occur could have a material impact on the presentation of their financial condition, results of operations or cash flows. The circumstances that make these judgments difficult, subjective and/or complex have to do with the need to make estimates about the effect of matters that are inherently uncertain. Estimates and assumptions about future events and their effects cannot be predicted with certainty. The Registrants base their estimates on historical experience and on various other assumptions that they believe to be reasonable under the circumstances, the results of which form the basis for making judgments. These estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the Registrants’ operating environment changes.

Generally, a long-lived asset to be sold is classified as held for sale in the period in which management, with approval from the Board of Directors, as applicable, commits to a plan to sell, and a sale is expected to be completed within one year. The Registrants record assets and liabilities held for sale, or the disposal group, at the lower of their carrying value or their estimated fair value less cost to sell. If a disposal group reflects a component of a reporting unit and meets the definition of a business, the goodwill within that reporting unit is allocated to the disposal group based on the relative fair value of the components representing a business that will be retained and disposed. Goodwill is not allocated to a portion of a reporting unit that does not meet the definition of a business.

As of March 31, 2024 and December 31, 2023, CenterPoint Energy had outstanding fixed-rate debt (excluding indexed debt securities) aggregating $17.3 billion and $16.9 billion, respectively, in principal amount and having a fair value of $16.1 billion and $16.1 billion, respectively. Because these instruments are fixed-rate, they do not expose CenterPoint Energy to the risk of loss in earnings due to changes in market interest rates. However, the fair value of these instruments would increase by approximately $650 million if interest rates were to decline by 10% from levels at March 31, 2024. In general, such an increase in fair value would impact earnings and cash flows only if CenterPoint Energy were to reacquire all or a portion of these instruments in the open market prior to their maturity. CenterPoint Energy has $500 million of fixed-rate senior notes maturing in 2024 that are expected to be refinanced at then current market rates.

The ZENS obligation is bifurcated into a debt component and a derivative component. The debt component of $4 million as of March 31, 2024 was a fixed-rate obligation and, therefore, did not expose CenterPoint Energy to the risk of loss in earnings due to changes in market interest rates. However, the fair value of the debt component would increase by approximately $1 million if interest rates were to decline by 10% from levels at March 31, 2024. Changes in the fair value of the derivative component, a $520 million recorded liability at March 31, 2024, are recorded in CenterPoint Energy’s Condensed Statements of Consolidated Income and, therefore, it is exposed to changes in the fair value of the derivative component as a result of changes in the underlying risk-free interest rate. If the risk-free interest rate were to increase by 10% from March 31, 2024 levels, the fair value of the derivative component liability would decrease by $1 million, which would be recorded as an unrealized gain in CenterPoint Energy’s Condensed Statements of Consolidated Income.

CenterPoint Energy is exposed to equity market value risk through its ownership of 10.2 million shares of AT&T Common, 0.9 million shares of Charter Common and 2.5 million shares of WBD Common, which CenterPoint Energy holds to facilitate its ability to meet its obligations under the ZENS. See Note 10 to the Interim Condensed Financial Statements for a discussion of CenterPoint Energy’s ZENS obligation. Changes in the fair value of the ZENS-Related Securities held by CenterPoint Energy are expected to substantially offset changes in the fair value of the derivative component of the ZENS. A decrease of 10% from the March 31, 2024 aggregate market value of these shares would result in a net loss of less than $1 million, which would be recorded as a loss on debt securities in CenterPoint Energy’s Condensed Statements of Consolidated Income.

However, CenterPoint Energy’s and CERC’s regulated operations in Indiana have limited exposure to commodity price risk for transactions involving purchases and sales of natural gas, coal and purchased power for the benefit of retail customers due to current state regulations, which, subject to compliance with those regulations, allow for recovery of the cost of such purchases through natural gas and fuel cost adjustment mechanisms. CenterPoint Energy’s and CERC’s utility natural gas operations in Indiana have regulatory authority to lock in pricing for up to 50% of annual natural gas purchases using arrangements with an original term of up to 10 years. This authority has been utilized to secure fixed price natural gas using both physical purchases and financial derivatives. As of March 31, 2024, the recorded fair value of non-trading energy derivative liabilities was $12 million and $10 million, respectively, for CenterPoint Energy’s and CERC’s utility natural gas operations in Indiana.

Although CenterPoint Energy’s and CERC’s regulated operations are exposed to limited commodity price risk, natural gas and coal prices have other effects on working capital requirements, interest costs, and some level of price-sensitivity in volumes sold or delivered. Constructive regulatory orders, such as those authorizing lost margin recovery, other innovative rate designs and recovery of unaccounted for natural gas and other natural gas-related expenses, also mitigate the effect natural gas costs may have on CenterPoint Energy’s financial condition. In 2008, the PUCO approved an exit of the merchant function in CenterPoint Energy’s and CERC’s Ohio natural gas service territory, allowing Ohio customers to purchase substantially all natural gas directly from retail marketers rather than from CenterPoint Energy or CERC.

In accordance with Exchange Act Rules 13a-15 and 15d-15, the Registrants carried out separate evaluations, under the supervision and with the participation of each company’s management, including the principal executive officer and principal financial officer, of the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report. Based on those evaluations, the principal executive officer and principal financial officer, in each case, concluded that the disclosure controls and procedures were effective as of March 31, 2024 to provide assurance that information required to be disclosed in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and such information is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding disclosure.

For a description of material legal and regulatory proceedings, including environmental legal proceedings that involve a governmental authority as a party and that the Registrants reasonably believe would result in $1,000,000 or more of monetary sanctions, exclusive of interest and costs, under federal, state and local laws that have been enacted or adopted regulating the discharge of materials into the environment or primarily for the purpose of protecting the environment, affecting the Registrants, please read Note 13(c) to the Interim Condensed Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Future Sources and Uses of Cash” and “— Regulatory Matters,” each of which is incorporated herein by reference. See also “Business — Regulation” and “— Environmental Matters” in Item 1 and “Legal Proceedings” in Item 3 of the Registrants’ combined 2023 Form 10-K.


Texas			74-0694415
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

1111 Louisiana	Houston	Texas	77002
(Address of Principal Executive Offices)			(Zip Code)


Texas			22-3865106
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

1111 Louisiana	Houston	Texas	77002
(Address of Principal Executive Offices)			(Zip Code)


Delaware			76-0511406
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

1111 Louisiana	Houston	Texas	77002
(Address of Principal Executive Offices)			(Zip Code)


Securities registered pursuant to Section 12(b) of the Act:
Registrant	Title of each class	Trading Symbol(s)	Name of each exchange on which registered
CenterPoint Energy, Inc.	Common Stock, $0.01 par value	CNP	The New York Stock Exchange
			NYSE Chicago
CenterPoint Energy Houston Electric, LLC	6.95% General Mortgage Bonds due 2033	n/a	The New York Stock Exchange
CenterPoint Energy Resources Corp.	6.625% Senior Notes due 2037	n/a	The New York Stock Exchange


PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	CenterPoint Energy, Inc. Financial Statements (Unaudited)	1




	CenterPoint Energy Houston Electric, LLC Financial Statements (Unaudited)	7




	CenterPoint Energy Resources Corp. Financial Statements (Unaudited)	12





	Combined Notes to Interim Condensed Financial Statements (Unaudited)	18
	(1) Background and Basis of Presentation	18
	(2) New Accounting Pronouncements	19
	(3) Held for Sale and Divestitures	19
	(4) Revenue Recognition and Allowance for Credit Losses	21
	(5) Employee Benefit Plans	24
	(6) Regulatory Matters	25
	(7) Derivative Instruments	27
	(8) Fair Value Measurements	29
	(9) Goodwill	31
	(10) Equity Securities and Indexed Debt Securities (ZENS)	32
	(11) Short-term Borrowings and Long-term Debt	33
	(12) Income Taxes	35
	(13) Commitments and Contingencies	35
	(14) Earnings Per Share	41
	(15) Reportable Segments	42
	(16) Supplemental Disclosure of Cash Flow and Balance Sheet Information	43
	(17) Related Party Transactions	44
	(18) Equity	45
	(19) Leases	46
	(20) Subsequent Events	49
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	50
	Recent Events	50
	Consolidated Results of Operations	51
	Results of Operations by Reportable Segment	52
	Certain Factors Affecting Future Earnings	59
	Liquidity and Capital Resources	60
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	75
Item 4.	Controls and Procedures	76

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	77
Item 1A.	Risk Factors	77
Item 5.	Other Information	77
Item 6.	Exhibits	77
	Signatures	81


(Mark One)
☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			FOR THE TRANSITION PERIOD FROM __________________ TO __________________


CenterPoint Energy, Inc.	639,724,143	shares of common stock outstanding, excluding 166 shares held as treasury stock
CenterPoint Energy Houston Electric, LLC	1,000	common shares outstanding, all held by Utility Holding, LLC, a wholly-owned subsidiary of CenterPoint Energy, Inc.
CenterPoint Energy Resources Corp.	1,000	shares of common stock outstanding, all held by Utility Holding, LLC, a wholly-owned subsidiary of CenterPoint Energy, Inc.











	Three Months Ended March 31, 2024
	Electric		Natural Gas		Corporate and Other		Total
	(in millions)
Revenue from contracts with customers	$	1,052	$	1,541	$	1	$	2,594
Other (1)	(3)		29		—		26

Total revenues	$	1,049	$	1,570	$	1	$	2,620










	Three Months Ended March 31, 2023
	Electric		Natural Gas		Corporate and Other		Total
	(in millions)
Revenue from contracts with customers	$	958	$	1,752	$	51	$	2,761
Other (1)	(6)		23		1		18

Total revenues	$	952	$	1,775	$	52	$	2,779


	Accounts Receivable		Other Accrued Unbilled Revenues		Contract Liabilities
	(in millions)
Opening balance as of December 31, 2023	$	652	$	516	$	2
Closing balance as of March 31, 2024	656		392		3
Decrease	$	4	$	(124)	$	1


	March 31, 2024						December 31, 2023
	CenterPoint Energy (1)		Houston Electric (2)		CERC (3)		CenterPoint Energy (1)		Houston Electric (2)		CERC (3)
	(in millions)
Unrecognized equity return	$	204	$	69	$	73	$	204	$	75	$	69


		March 31, 2024				December 31, 2023
	Balance Sheet Location	Derivative Assets Fair Value		Derivative Liabilities Fair Value		Derivative Assets Fair Value		Derivative Liabilities Fair Value
CenterPoint Energy:		(in millions)
Derivatives designated as cash flow hedges:
Interest rate derivatives	Current Assets: Non-trading derivative assets	$	3	$	—	$	—	$	—


Derivatives not designated as hedging instruments:
Natural gas derivatives (1)	Current Liabilities: Non-trading derivative liabilities	$	—	$	9	$	—	$	9
Natural gas derivatives (1)	Other Liabilities: Non-trading derivative liabilities	—		3		—		3





Indexed debt securities derivative (2)	Current Liabilities	—		520		—		605

Total		$	3	$	532	$	—	$	617


		Three Months Ended March 31,
	Income Statement Location		2024		2023
CenterPoint Energy:			(in millions)
Derivatives not designated as hedging instruments:
Indexed debt securities derivative (1)	Gain (loss) on indexed debt securities		$	85	$	(39)


	March 31, 2024						December 31, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets	(in millions)
Equity securities	$	458	$	—	$	—	$	458	$	541	$	—	$	—	$	541
Investments, including money market funds (1)	37		—		—		37		31		—		—		31
Interest rate derivatives	—		3		—		3		—		—		—		—




Total assets	$	495	$	3	$	—	$	498	$	572	$	—	$	—	$	572
Liabilities
Indexed debt securities derivative	$	—	$	520	$	—	$	520	$	—	$	605	$	—	$	605

Natural gas derivatives	—		12		—		12		—		12		—		12



Total liabilities	$	—	$	532	$	—	$	532	$	—	$	617	$	—	$	617


	December 31, 2023		Held For Sale		March 31, 2024
	(in millions)
Electric (1)	$	936	$	—	$	936
Natural gas (2)	2,920		217		2,703
Corporate and other	304		—		304

Total	$	4,160	$	217	$	3,943


	Shares Held		Carrying Value
	March 31, 2024	December 31, 2023	March 31, 2024		December 31, 2023
			(in millions)
AT&T Common	10,212,945	10,212,945	$	180	$	171
Charter Common	872,503	872,503	254		339
WBD Common	2,470,685	2,470,685	21		28


Other			3		3
Total			$	458	$	541


	March 31, 2024	December 31, 2023
	(in shares)
AT&T Common	0.7185	0.7185
Charter Common	0.061382	0.061382
WBD Common	0.173817	0.173817


Execution Date	Registrant	Size of Facility		Draw Rate of SOFR plus (1)	Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio		Debt for Borrowed Money to Capital Ratio as of March 31, 2024 (2)	Termination Date
		(in millions)
December 6, 2022	CenterPoint Energy	$	2,400	1.500%	65.0%	(3)	59.6%	December 6, 2027
December 6, 2022	CenterPoint Energy (4)	250		1.125%	65.0%		46.7%	December 6, 2027

December 6, 2022	Houston Electric	300		1.250%	67.5%	(3)	52.9%	December 6, 2027
December 6, 2022	CERC	1,050		1.125%	65.0%		39.9%	December 6, 2027
	Total	$	4,000


	CenterPoint Energy						CERC
	Natural Gas Supply		Electric Supply (1)		Other (2)		Natural Gas Supply
	(in millions)
Remaining nine months of 2024	$	427	$	117	$	117	$	423
2025	596		461		59		592
2026	536		113		61		532
2027	466		105		17		462
2028	399		68		12		395
2029	386		66		1		382
2030 and beyond	1,392		696		306		1,373


		Dividends Declared Per Share					Dividends Paid Per Share
	Three Months Ended March 31,					Three Months Ended March 31,
		2024		2023			2024		2023
Common Stock		$	—	$	—		$	0.200	$	0.190
Series A Preferred Stock (1)		—		—			—		30.625


	CenterPoint Energy		Houston Electric		CERC
	(in millions)
Remainder of 2024	$	3	$	2	$	2
2025	3		2		1
2026	3		1		1
2027	2		1		—
2028	1		—		—
2029	1		—		—
2030 and beyond	1		—		—
Total lease payments	14		6		4
Less: Interest	2		1		—
Present value of lease liabilities	$	12	$	5	$	4


			Amount Utilized as of April 22, 2024
Registrant	Size of Facility		Loans		Letters of Credit		Commercial Paper		Weighted Average Interest Rate	Termination Date
	(in millions)
CenterPoint Energy	$	2,400	$	—	$	—	$	1,018	5.48%	December 6, 2027
CenterPoint Energy (1)	250		—		—		—		—%	December 6, 2027


Houston Electric	300		—		—		—		—%	December 6, 2027
CERC	1,050		—		1		430		5.47%	December 6, 2027
Total	$	4,000	$	—	$	1	$	1,448


*			Schedules to this agreement have been omitted pursuant to Items 601(a)(5) and 601(b)(2) of Regulation S-K. A copy of any omitted schedules will be furnished supplementally to the SEC upon request; provided, however, that the parties may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished.


Original Interest Accrual Date: February 29, 2024 Stated Maturity: March 1, 2034 Interest Rate: 5.15% Interest Payment Dates: March 1 and September 1 Regular Record Dates: February 15 and August 15 immediately preceding the respective Interest Payment Date			Redeemable: Yes [X] No [ Redemption Date: At any time. Redemption Price: Prior to December 1, 2033 at a redemption price equal to the greater of (i)(a) the sum of the present values of the remaining scheduled payments of principal and interest on this Security or the portion thereof to be redeemed discounted to the Redemption Date (assuming this Security matured on the Par Call Date) on a semiannual basis at the Treasury Rate plus 15 basis points, less (b) interest accrued to the Redemption Date, and (ii) 100% of the principal amount of this Security (or such portion to be redeemed); plus, in each case, accrued and unpaid interest thereon to, but excluding, the Redemption Date; or on or after December 1, 2033, at a redemption price equal to 100% of the principal amount of this Security or the portion thereof to be redeemed plus accrued and unpaid interest thereon to, but excluding, the Redemption Date.


Attest: ____________________________ Vincent A. Mercaldi Secretary			CENTERPOINT ENERGY HOUSTON ELECTRIC, LLC By: Kristie L. Colvin Senior Vice President and Chief Accounting Officer


			CENTERPOINT ENERGY, INC. By:/s/Jason P. Wells Jason P. Wells President


			/s/ Lynnae K. Wilson
			Lynnae K. Wilson
			President and Chief Executive Officer


/s/ Darin M. Carroll
Darin M. Carroll
President and Chief Executive Officer


			/s/ Christopher A. Foster
			Christopher A. Foster
			Executive Vice President and Chief Financial Officer


/s/ Jason P. Wells
Jason P. Wells
Chief Executive Officer
April 30, 2024

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2024	Apr. 22, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	1-31447
Entity Registrant Name	CenterPoint Energy, Inc.
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	74-0694415
Entity Address, Address Line One	1111 Louisiana
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77002
City Area Code	713
Local Phone Number	207-1111
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		639,724,143
Entity Central Index Key	0001130310
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock, $0.01 Par Value \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	CNP
Security Exchange Name	NYSE
Common Stock, $0.01 Par Value \| Chicago Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	CNP
Security Exchange Name	CHX
Houston Electric
Entity Information [Line Items]
Entity File Number	1-3187
Entity Registrant Name	CenterPoint Energy Houston Electric, LLC
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	22-3865106
Entity Address, Address Line One	1111 Louisiana
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77002
City Area Code	713
Local Phone Number	207-1111
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,000
Entity Central Index Key	0000048732
Houston Electric \| 6.95% General Mortgage Bonds due 2033 \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	6.95% General Mortgage Bonds due 2033
Security Exchange Name	NYSE
No Trading Symbol Flag	true
CERC
Entity Information [Line Items]
Entity File Number	1-13265
Entity Registrant Name	CenterPoint Energy Resources Corp.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	76-0511406
Entity Address, Address Line One	1111 Louisiana
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77002
City Area Code	713
Local Phone Number	207-1111
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,000
Entity Central Index Key	0001042773
CERC \| 6.625% Senior Notes due 2037 \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	6.625% Senior Notes due 2037
Security Exchange Name	NYSE
No Trading Symbol Flag	true

Condensed Statements of Consolidated Income (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues:
Utility revenues	$ 2,607	$ 2,717
Non-utility revenues	13	62
Total	2,620	2,779
Expenses:
Utility natural gas, fuel and purchased power	787	1,078
Non-utility cost of revenues, including natural gas	1	40
Operation and maintenance	709	663
Depreciation and amortization	363	319
Taxes other than income taxes	144	138
Total	2,004	2,238
Operating Income	616	541
Other Income (Expense):
Gain (loss) on equity securities	(83)	38
Gain (loss) on indexed debt securities	85	(39)
Interest expense and other finance charges	(198)	(148)
Interest expense on Securitization Bonds	(6)	(2)
Other income, net	14	13
Total	(188)	(138)
Income Before Income Taxes	428	403
Income tax expense	78	78
Net Income	350	325
Income allocated to preferred shareholders	0	12
Income Available to Common Shareholders	$ 350	$ 313
Basic Earnings Per Common Share (in dollars per share)	$ 0.55	$ 0.50
Diluted Earnings Per Common Share (in dollars per share)	$ 0.55	$ 0.49
Weighted Average Common Shares Outstanding, Basic (in shares)	632,228	630,309
Weighted Average Common Shares Outstanding, Diluted (in shares)	633,970	633,051

Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 350	$ 325
Other comprehensive income (loss):
Adjustment to pension and other postretirement plans (net of tax of $-0- and $-0-)	(1)	(1)
Net deferred gain from cash flow hedges (net of tax of $-0- and $-0-)	3	0
Total	2	(1)
Comprehensive income	352	324
Income allocated to preferred shareholders	0	12
Comprehensive income available to common shareholders	$ 352	$ 312

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 161	$ 90
Investment in equity securities	458	541
Accounts receivable, less allowance for credit losses	675	710
Accrued unbilled revenues	372	516
Natural gas and coal inventory	104	197
Materials and supplies	559	573
Non-trading derivative assets	3	0
Taxes receivable	204	94
Current assets held for sale	1,325	0
Regulatory assets	294	161
Prepaid expenses and other current assets	131	145
Total current assets	4,286	3,027
Property, Plant and Equipment, net:
Property, plant and equipment	39,631	40,396
Less: accumulated depreciation and amortization	10,252	10,543
Property, plant and equipment, net	29,379	29,853
Other Assets:
Goodwill	3,943	4,160
Regulatory assets	2,428	2,513
Other non-current assets	163	162
Total other assets	6,534	6,835
Total Assets	40,199	39,715
Current Liabilities:
Short-term borrowings	0	4
Current portion of VIE Securitization Bonds long-term debt	178	178
Indexed debt, net	4	5
Current portion of other long-term debt	850	872
Indexed debt securities derivative	520	605
Accounts payable	753	917
Taxes accrued	193	291
Interest accrued	208	236
Dividends accrued	0	126
Customer deposits	97	111
Non-trading derivative liabilities	9	9
Current liabilities held for sale	224	0
Other current liabilities	394	510
Total current liabilities	3,430	3,864
Other Liabilities:
Deferred income taxes, net	4,295	4,079
Non-trading derivative liabilities	3	3
Benefit obligations	585	572
Regulatory liabilities	3,046	3,208
Other non-current liabilities	725	763
Total other liabilities	8,654	8,625
Long-term Debt, net:
VIE Securitization Bonds, net	320	320
Other long-term debt, net	17,797	17,239
Total long-term debt, net	18,117	17,559
Commitments and Contingencies (Note 13)
Shareholders’ Equity:
Common stock	6	6
Additional paid-in capital	8,583	8,604
Retained earnings	1,442	1,092
Accumulated other comprehensive loss	(33)	(35)
Total shareholders’ equity	9,998	9,667
Total Liabilities and Shareholders’ Equity	$ 40,199	$ 39,715