v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Registrants reported the following effective tax rates:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
CenterPoint Energy (1)
22 %13 %22 %16 %
Houston Electric
20 %20 %20 %20 %
CERC (2)
11 %24 %22 %19 %

(1)CenterPoint Energy’s higher effective tax rate for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily driven by the impact of the non-deductible goodwill associated with the sale of the Louisiana and Mississippi natural gas LDC businesses and a reduction in favorable tax return true-ups. CenterPoint Energy’s higher effective tax rate for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily driven by the impact of the non-deductible goodwill associated with the sale of the Louisiana and Mississippi natural gas LDC businesses and a reduction in favorable tax return true-ups. For additional detail, see Note 3.
(2)CERC’s lower effective tax rate for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily driven by a $12 million deferred income tax benefit associated with net operating loss carryforwards at Indiana Gas partially offset by the impact of non-deductible goodwill associated with the sale Louisiana and Mississippi natural gas LDC businesses. CERC’s higher effective tax rate for the six months ended
June 30, 2025 compared to the six months ended June 30, 2024 was primarily driven by the impact of the non-deductible goodwill associated with the sale of the Louisiana and Mississippi natural gas LDC businesses. For additional detail, see Note 3.

CenterPoint Energy reported a net uncertain tax liability, inclusive of interest and penalties, of $30 million as of June 30, 2025. The Registrants believe that it is reasonably possible that the Registrants will recognize a $11 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 2022 have been audited and settled with the IRS for CenterPoint Energy. For tax years 2023, 2024 and 2025, the Registrants are participants in the IRS’s Compliance Assurance Process.