CENTERPOINT ENERGY INC (CNP) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that CENTERPOINT ENERGY INC surfaced in its latest filing.

• During the February 2021 Winter Storm Event, ERCOT directed TDUs to significantly Load Shed, causing customer outages in Houston Electric's service territory.February 2021
• CenterPoint Energy received various claims and lawsuits with respect to the February 2021 Winter Storm Event, alleging wrongful death, personal injury, property damage, and other injuries and damages.February 2021
• In June 2022, F.B. Culley Unit 3 experienced a boiler feed pump turbine failure causing a nine-month outage.June 2022
• In 2024, Hurricane Beryl caused significant damage to Houston Electric's electric delivery system, causing extended outages.2024
• U.S. Department of Energy issued emergency order 202(c) in December 2025 directing Indiana Electric to continue operating F.B. Culley Unit 2 through March 23, 2026 despite IRP retirement plans.December 2025
• Indiana Electric terminated several wind and solar projects in 2025 due to shifting market dynamics, substantial delays, cost increases, and customer affordability concerns.2025
• As of December 31, 2025, Houston Electric provided electric delivery service to approximately 67 REPs.December 31, 2025
• Aggregate billed receivables balance from REPs as of December 31, 2025 was $279 million.December 31, 2025
• As of December 31, 2025, CenterPoint Energy and Houston Electric had a regulatory asset of $7 million for bad debt expenses from REP defaults, net of collateral and recovery in rates.December 31, 2025
• Following the February 2021 Winter Storm Event, multiple REPs filed for bankruptcy.February 2021
• Houston Electric began leasing large (27 MW to 32 MW) and medium (5.7 MW) TEEEF following a 2021 Texas law allowing TDUs to use TEEEF during widespread outages.2021
• In 2023, Texas legislature amended the law to allow wider use of TEEEF, and Houston Electric entered into contracts for small TEEEF units representing ~4% of its TEEEF MW portfolio.2023
• In 2025, Houston Electric requested PUCT preapproval to lease small TEEEF units for a three-year term; proceedings are ongoing.2025
• In June 2025, Texas law was amended to restrict new, renewed, or extended TEEEF leases to units ≤5 MW and rapidly deployable.June 2025
• In June 2025, Houston Electric entered the ERCOT Transaction (subject to PUCT approval) to release large TEEEF units, reduce TEEEF fleet capacity, and reduce rates.June 2025
• In November 2025, Houston Electric proposed to release its medium TEEEF units and remove associated lease costs from rates.November 2025
• In 2024, the TCA filed a complaint with the PUCT to end cost recovery and return on investment on Houston Electric’s large and medium TEEEF units; proceedings are ongoing.2024
• In the 2024 Houston Electric general rate case, Houston Electric sought a $60 million revenue increase and 10.4% ROE, but received a $47 million revenue decrease and 9.65% ROE.2024
• The MPUC ordered extraordinary gas costs from the February 2021 Winter Storm Event be recovered over a 63-month period from 2022 to 2027, with CERC foregoing carrying costs.February 2021
• In October 2022, the MPUC disallowed recovery of approximately $36 million of the $409 million CERC requested for February 2021 Winter Storm Event costs.October 2022
• Houston Electric’s SRP, approved by the PUCT in November 2025, includes 27 resiliency measures totaling ~$2.68 billion in capital investments and ~$185 million in O&M expense.November 2025
• CenterPoint Energy, CenterPoint Energy Service Company, LLC and Houston Electric are subject to litigation and claims arising out of Hurricane Beryl.
• In 2025, the Governor of Indiana directed the commissioner of the OUCC to evaluate utilities’ profits and find cost-saving measures to ease the financial burden on customers.2025
• As of December 31, 2025, CenterPoint Energy had nearly $23 billion of outstanding indebtedness on a consolidated basis, including $714 million of non-recourse Securitization Bonds.December 31, 2025
• CenterPoint Energy plans to invest at least $65.5 billion through 2035 under its 10-year capital plan announced in 2025 and increased in February 2026.2025
• CenterPoint Energy closed the sale of its Energy Systems Group business on June 30, 2023.June 30, 2023
• CenterPoint Energy has approximately $828 million principal amount of ZENS outstanding as of December 31, 2025.December 31, 2025
• Redemption of all ZENS would trigger deferred taxes of approximately $897 million as of December 31, 2025.December 31, 2025
• On October 20, 2025, CenterPoint Energy entered into the Ohio Securities Purchase Agreement to sell its Ohio natural gas LDC business, expected to close in Q4 2026.October 20, 2025
• Houston Electric is seeking to recover system restoration costs for Hurricane Beryl and other storms through non-recourse system restoration bonds, expecting net proceeds on February 26, 2026.February 26, 2026