CENTERPOINT ENERGY HOUSTON ELECTRIC LLC
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 28, 2026
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(10) Income Taxes
The Registrants reported the following effective tax rates for the periods presented:
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| CenterPoint Energy (1) | 18% | 22% | 21% | 22% |
| Houston Electric (2) | 19% | 20% | 19% | 20% |
| CERC (3) | 11% | 11% | 22% | 22% |
(1)CenterPoint Energy’s lower effective tax rate for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was due primarily to a decrease in nondeductible goodwill and a decrease in state taxes. CenterPoint Energy’s lower effective tax rate for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was due primarily to a decrease in nondeductible goodwill.
(2)Houston Electric’s lower effective tax rate for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily driven by a decrease in state income taxes. Houston Electric’s lower effective tax rate for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily driven by a decrease in state income taxes.
(3)CERC’s effective tax rate did not change for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Increases in state income taxes were offset by decreases in nondeductible goodwill.
CERC’s effective tax rate did not change for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Lower state tax expense and nondeductible goodwill was offset by a decrease in excess deferred tax amortization resulting from the sale of Louisiana and Mississippi LDC businesses in the first quarter of 2025.
CenterPoint Energy reported a net uncertain tax liability, inclusive of interest and penalties, of $20 million as of June 30, 2026. The Registrants believe that it is reasonably possible that the Registrants will recognize a $20 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.
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