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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income Tax Expense | The components of the Registrants’ income tax expense (benefit) were as follows for the periods presented:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| (in millions)
CenterPoint Energy |  |  |  |  |
Current income tax expense (benefit): |  |  |  |  |
Federal | $ | (17) |  |  | $ | 106 |  |  | $ | 294 |
State | (9) |  |  | 33 |  |  | 46 |
Total current expense (benefit) | (26) |  |  | 139 |  |  | 340 |
Deferred income tax expense (benefit): |  |  |  |  |
Federal | 218 |  |  | 119 |  |  | 16 |
State | 3 |  |  | (88) |  |  | 4 |
Total deferred expense | 221 |  |  | 31 |  |  | 20 |
Total income tax expense | $ | 195 |  |  | $ | 170 |  |  | $ | 360 |
Houston Electric |  |  |  |  |
Current income tax expense (benefit): |  |  |  |  |
Federal | $ | 62 |  |  | $ | (26) |  |  | $ | 23 |
State | 15 |  |  | 34 |  |  | 16 |
Total current expense | 77 |  |  | 8 |  |  | 39 |
Deferred income tax expense: |  |  |  |  |
Federal | 60 |  |  | 159 |  |  | 86 |
State | 1 |  |  | 1 |  |  | — |
Total deferred expense | 61 |  |  | 160 |  |  | 86 |
Total income tax expense | $ | 138 |  |  | $ | 168 |  |  | $ | 125 |
CERC |  |  |  |  |
Current income tax expense (benefit): |  |  |  |  |
Federal | $ | 55 |  |  | $ | 12 |  |  | $ | 30 |
State | (6) |  |  | 3 |  |  | 28 |
Total current expense | 49 |  |  | 15 |  |  | 58 |
Deferred income tax expense (benefit): |  |  |  |  |
Federal | 60 |  |  | 95 |  |  | 164 |
State | (5) |  |  | (136) |  |  | 14 |
Total deferred expense (benefit) | 55 |  |  | (41) |  |  | 178 |
Total income tax expense (benefit) | $ | 104 |  |  | $ | (26) |  |  | $ | 236 |
Schedule of Reconciliation of Income Tax Expense (Benefit) | A reconciliation of income tax expense (benefit) using the federal statutory income tax rate to the actual income tax expense and resulting effective income tax rate were as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| (in millions)
CenterPoint Energy (1) (2) (3) |  |  |  |  |
Income before income taxes | $ | 1,214 |  |  | $ | 1,087 |  |  | $ | 1,417 |
Federal statutory income tax rate | 21 | % |  | 21 | % |  | 21 | %
Expected federal income tax expense | 255 |  |  | 228 |  |  | 298 |
Increase (decrease) in tax expense resulting from: |  |  |  |  |
State income tax expense, net of federal income tax | 25 |  |  | 25 |  |  | 46 |
State valuation allowance, net of federal income tax | 17 |  |  | — |  |  | — |
State law change, net of federal income tax | (47) |  |  | (69) |  |  | — |
Equity AFUDC | (12) |  |  | (13) |  |  | (8) |
Excess deferred income tax amortization | (43) |  |  | (44) |  |  | (51) |
Goodwill impairment | — |  |  | — |  |  | 84 |
Sale of Energy Systems Group | — |  |  | 28 |  |  | — |
Other, net | — |  |  | 15 |  |  | (9) |
Total | (60) |  |  | (58) |  |  | 62 |
Total income tax expense | $ | 195 |  |  | $ | 170 |  |  | $ | 360 |
Effective tax rate | 16 | % |  | 16 | % |  | 25 | %
Houston Electric (4) (5) (6) |  |  |  |  |
Income before income taxes | $ | 684 |  |  | $ | 761 |  |  | $ | 635 |
Federal statutory income tax rate | 21 | % |  | 21 | % |  | 21 | %
Expected federal income tax expense | 144 |  |  | 160 |  |  | 133 |
Increase (decrease) in tax expense resulting from: |  |  |  |  |
State income tax expense, net of federal income tax | 12 |  |  | 27 |  |  | 13 |
Equity AFUDC | (5) |  |  | — |  |  | — |
Excess deferred income tax amortization | (17) |  |  | (17) |  |  | (18) |
Other, net | 4 |  |  | (2) |  |  | (3) |
Total | (6) |  |  | 8 |  |  | (8) |
Total income tax expense | $ | 138 |  |  | $ | 168 |  |  | $ | 125 |
Effective tax rate | 20 | % |  | 22 | % |  | 20 | %
CERC (7) (8) (9) |  |  |
Income before income taxes | $ | 644 |  |  | $ | 486 |  |  | $ | 961 |
Federal statutory income tax rate | 21 | % |  | 21 | % |  | 21 | %
Expected federal income tax expense | 135 |  |  | 102 |  |  | 202 |
Increase (decrease) in tax expense resulting from: |  |  |  |  |
State income tax expense, net of federal income tax | 19 |  |  | (40) |  |  | 35 |
State law change, net of federal income tax | (45) |  |  | (66) |  |  | — |
State valuation allowance, net of federal income tax | 17 |  |  | — |  |  | — |
Goodwill impairment | — |  |  | — |  |  | 30 |
Equity AFUDC | (4) |  |  | — |  |  | — |
Excess deferred income tax amortization | (15) |  |  | (23) |  |  | (28) |
Other, net | (3) |  |  | 1 |  |  | (3) |
Total | (31) |  |  | (128) |  |  | 34 |
Total income tax expense (benefit) | $ | 104 |  |  | $ | (26) |  |  | $ | 236 |
Effective tax rate | 16 | % |  | (5) | % |  | 25 | %
(1)Recognized a $47 million benefit for the impact of state apportionment changes and Louisiana statutory rate change that resulted in the remeasurement of state deferred taxes, a $43 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $17 million valuation allowance established against Louisiana and Mississippi NOL, since those NOLs will not be utilized due to the Louisiana and Mississippi natural gas LDC businesses sale and a $12 million benefit for the impact of AFUDC equity. (2)Recognized a $69 million benefit for the impact of state apportionment changes that resulted in the remeasurement of state deferred taxes of the unitary group, a $44 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $13 million benefit for the impact of AFUDC equity, and a $28 million expense for the gain on the Energy Systems Group sale. (3)Recognized a $51 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, an $8 million benefit for the impact of AFUDC equity, and a $84 million expense for the goodwill impairment on the Arkansas and Oklahoma Natural Gas business sale. (4)Recognized a $17 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in Texas. (5)Recognized a $17 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (6)Recognized a $18 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (7)Recognized a $45 million benefit for the impact of state apportionment changes and Louisiana statutory rate change that resulted in the remeasurement of state deferred taxes, a $17 million valuation allowance established against Louisiana and Mississippi NOL, since those NOLs will not be utilized due to the Louisiana and Mississippi natural gas LDC businesses sale, and a $15 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (8)Recognized a $66 million benefit for the impact of state apportionment changes that resulted in the remeasurement of state deferred taxes of the unitary group, and a $23 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (9)Recognized a $28 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, and a $30 million expense for the goodwill impairment on the Arkansas and Oklahoma Natural Gas business sale.
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities were as follows:
| December 31, 2024 |  | December 31, 2023
| (in millions)
CenterPoint Energy |  |  |
Deferred tax assets: |  |  |
Benefits and compensation | $ | 126 |  |  | $ | 131 |
Regulatory liabilities | 348 |  |  | 365 |
Loss and credit carryforwards | 942 |  |  | 76 |
Asset retirement obligations | 98 |  |  | 96 |
Other | 150 |  |  | 124 |
Valuation allowance | (35) |  |  | (10) |
Total deferred tax assets | 1,629 |  |  | 782 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | 4,384 |  |  | 3,580 |
Regulatory assets | 750 |  |  | 401 |
Investment in ZENS and equity securities related to ZENS | 866 |  |  | 788 |
Other | 18 |  |  | 92 |
Total deferred tax liabilities | 6,018 |  |  | 4,861 |
Net deferred tax liabilities | $ | 4,389 |  |  | $ | 4,079 |
Houston Electric |  |  |
Deferred tax assets: |  |  |
Benefits and compensation | $ | 8 |  |  | $ | 10 |
Regulatory liabilities | 158 |  |  | 176 |
Loss and credit carryforward | 408 |  |  | — |
Asset retirement obligations | 9 |  |  | 6 |
Other | 16 |  |  | 18 |
Total deferred tax assets | 599 |  |  | 210 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | 1,988 |  |  | 1,497 |
Regulatory assets | 113 |  |  | 119 |
Total deferred tax liabilities | 2,101 |  |  | 1,616 |
Net deferred tax liabilities | $ | 1,502 |  |  | $ | 1,406 |
CERC |  |  |
Deferred tax assets: |  |  |
Benefits and compensation | $ | 17 |  |  | $ | 21 |
Regulatory liabilities | 150 |  |  | 145 |
Loss and credit carryforwards | 694 |  |  | 276 |
Asset retirement obligations | 82 |  |  | 86 |
Other | 122 |  |  | 65 |
Valuation allowance | (25) |  |  | — |
Total deferred tax assets | 1,040 |  |  | 593 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | 1,883 |  |  | 1,602 |
Regulatory assets | 513 |  |  | 171 |
Other | 14 |  |  | 66 |
Total deferred tax liabilities | 2,410 |  |  | 1,839 |
Net deferred tax liabilities | $ | 1,370 |  |  | $ | 1,246 |
Schedule of Unrecognized Tax Benefits | A reconciliation of CenterPoint Energy’s beginning and ending balance of unrecognized tax benefits, excluding interest and penalties, are as follows for the periods presented:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| (in millions)
Balance, beginning of year | $ | 25 |  |  | $ | 26 |  |  | $ | 3 |
Increases related to tax positions of prior years | — |  |  | — |  |  | 26 |
Decreases related to tax positions of prior years | — |  |  | — |  |  | (3) |
Lapse of statute of limitations | — |  |  | (1) |  |  | — |
Balance, end of year | $ | 25 |  |  | $ | 25 |  |  | $ | 26 |

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