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Income Taxes (Tables)

12 Months Ended

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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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of the change in unrecognized tax benefits.

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