CenterPoint Energy, Inc. 10-Q filed Oct 27, 2026

Modified · RECENT EVENTS

Large-Load Customers. The PUCT has begun the process of implementing Texas Senate Bill 6 through various rulemaking processes, focused on establishing financial, operational, and interconnection requirements for large-load customers to ensure grid reliability and prevent stranded infrastructure costs. On June 18, 2026, the PUCT approved ERCOT’s Batch Zero process for large-user connection requests with the stated goal of ensuring large electricity users like data centers only connect in quantities and locations the Texas grid can reliably support. Houston Electric estimates thatoriginally submitted approximately 14 gigawatts of demand related to its potential large-load customers are eligible to be considered as part of ERCOT’s Batch Zero process, including which included the execution of Facilities Extension Agreements with Houston Electric and posting of financial security by the customers. Houston Electric estimates that 10 gigawatts of its previously submitted base load demand and approximately two gigawatts of its previously submitted studied load demand remain as part of ERCOT’s Batch Zero process. The amount of gigawatts ultimately connected to the Houston Electric system, the actual amount of electricity ultimately used by these customers, and the ultimate timing of these additional load connections and energization, if at all, remain uncertain due to a variety of factors, including, but not limited to, ERCOT approval into Batch Zero, including into base load or studied load, timing of construction, potential legislative, regulatory, and other government actions, and availability of materials. In the third quarter of 2026, customers provided or committed approximately $900290 million in either contributions in aid of construction or and approximately $600 million in financial security to Houston Electric, a portion of which may be approximately $135 million was returned to large-load customers depending on project outcomes and contractual requirementsduring the period. These amounts will continue to change as projects move through ERCOT reviews, load allocations are refined, and customers either advance toward construction and energization or exit the process.