CENTERPOINT ENERGY HOUSTON ELECTRIC LLC

The Registrants reported the following effective tax rates for the periods presented:

(1)CenterPoint Energy’s higher effective tax rate for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was due primarily to a decrease in excess deferred income tax amortization of a regulatory liability resulting from the sale of Louisiana and Mississippi natural gas LDC businesses in the first quarter of 2025.

(2)Houston Electric’s effective tax rate for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was unchanged.

(3)CERC’s effective tax rate for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was unchanged. The impact of the decrease in excess deferred tax amortization of a regulatory liability resulting from the sale of Louisiana and Mississippi natural gas LDC businesses in the first quarter of 2025 offsets the decrease in state taxes from the sale of these businesses.

CenterPoint Energy reported a net uncertain tax liability, inclusive of interest and penalties, of $24 million as of March 31, 2026. The Registrants believe that it is reasonably possible that the Registrants will recognize an $18 million tax benefit, including penalties and interest, in the next 12 months as a result of a lapse of statutes on older exposures, a tax settlement, and/or a resolution of open audits.

Tax Audits and Settlements. Tax years through 2023 have been audited and settled with the IRS for CenterPoint Energy. For tax years 2024, 2025 and 2026, the Registrants are participants in the IRS’s Compliance Assurance Process.