Houston Electric and CERC meet the conditions specified in General Instruction H(1)(a) and (b) to Form 10-Q and are therefore permitted to use the reduced disclosure format for wholly-owned subsidiaries of reporting companies. Accordingly, Houston Electric and CERC have omitted from this report the information called for by Item 3 (Quantitative and Qualitative Disclosures About Market Risk) of Part I of the Form 10-Q. Information regarding the Registrants’ quantitative and qualitative disclosures about market risk are disclosed in Part II, Item 7A of our combined 2025 Form 10-K. Except as described below, there have been no material changes in those disclosures. Interest Rate Risk (CenterPoint Energy) As of June 30, 2026, the Registrants had outstanding long-term debt and lease obligations and CenterPoint Energy had obligations under its ZENS that subject them to the risk of loss associated with movements in market interest rates. The Registrants seek to manage interest rate exposure by monitoring the effects of changes in market interest rates and using a combination of fixed and variable rate debt. Additionally, interest rate swaps are used to mitigate interest rate exposure when deemed appropriate. CenterPoint Energy’s floating rate obligations aggregated $1.3 billion and $1.5 billion as of June 30, 2026 and December 31, 2025, respectively. If the floating interest rates were to increase by 100 basis points from June 30, 2026 rates, CenterPoint Energy’s combined interest expense would increase by approximately $13 million annually. As of June 30, 2026 and December 31, 2025, CenterPoint Energy had outstanding fixed-rate debt (excluding indexed debt securities) aggregating $23.6 billion and $21.7 billion, respectively, in principal amount and having a fair value of $22.9 billion and $21.1 billion, respectively. Because these instruments are fixed-rate, they do not expose CenterPoint Energy to the risk of loss in earnings due to changes in market interest rates. However, the fair value of these instruments would increase by approximately $865 million if interest rates were to decline by 10% from their levels as of June 30, 2026. In general, such an increase in fair value would impact earnings and cash flows only if CenterPoint Energy were to reacquire all or a portion of these instruments in the open market prior to their maturity. 66 Table of Contents