CenterPoint Energy, through its subsidiary CERC Corp., entered into the LAMS Asset Purchase Agreement to sell its Louisiana and Mississippi natural gas LDC businesses. The transaction is expected to close by the end of the first quarter of 2025, subject to satisfaction of the foregoing conditions.

Houston Electric filed its first transmission and distribution system resiliency plan with the PUCT for review and approval. Houston Electric's transmission and distribution system resiliency plan proposes to implement twenty-five (25) resiliency measures over a three-year period related to: system hardening, grid modernization, flood mitigation, information technology, physical security, and vegetation management. The estimated capital cost is approximately $2.2 billion.

Indiana Electric continues to execute on its 2019/2020 IRP and has received initial approvals for 626 MWs of the 700-1,000 MWs identified within Indiana Electric's 2019/2020 IRP. The developer disclosed that costs exceeded the agreed upon levels in the BTA. After negotiations, Indiana Electric and the developer were not able to agree upon updated pricing. As a result, on February 27, 2024, Indiana Electric provided notice that it was exercising its right to terminate the BTA, which terminated all further obligations of Indiana Electric with respect to the project.

Houston Electric announced an initial hurricane preparedness and response action plan to the PUCT on July 25, 2024 to enhance the resiliency of the electric system through various investments.

Through this plan, Houston Electric additionally plans to work to improve customer communications, as well as strengthen the effectiveness of its emergency response, among other things.

CenterPoint Energy and Houston Electric have also responded to inquiries from the Texas Attorney General and the Galveston County District Attorney's Office.

In July 2024, Hurricane Beryl made landfall in Texas, bringing sustained winds, storm surges and torrential rain, which impacted our operations, customers and personnel in our Texas Gulf Coast markets. Hurricane Beryl caused significant damage to Houston Electric's electric delivery system, resulting in a substantial number of its customers (peaking at more than an estimated 2.26 million customers out of 2.8 million customers) being without power, many for extended periods of time.

The total cost for the restoration of Houston Electric's electric delivery facilities as a result of Hurricane Beryl is currently estimated to be in the range of $1.2 billion to $1.3 billion, but such estimate is preliminary and restoration costs ultimately incurred could vary from that estimate.

Houston Electric believes it is entitled to recover prudently incurred storm restoration costs in accordance with applicable regulatory and legal principles.

The company's strategy emphasizes regulated utility operations, which provide stable earnings and cash flows, and significant investments in infrastructure to enhance reliability and safety.

The company is focused on improving operational efficiency and managing costs to maintain competitiveness and profitability.

The company is facing increasing competition from renewable energy sources, which could reduce demand for natural gas and electricity.

Operation and maintenance expenses increased for CenterPoint Energy's Electric segment to $497 million for the three months ended June 30, 2024, compared to $450 million for the same period in 2023.

Operation and maintenance expenses increased for CenterPoint Energy's Electric segment to $972 million for the six months ended June 30, 2024, compared to $876 million for the same period in 2023.

Operation and maintenance expenses decreased for CenterPoint Energy's Natural Gas segment to $189 million for the three months ended June 30, 2024, compared to $222 million for the same period in 2023.

Houston Electric is proposing two pilot programs and one activity: 1) a utility-scale microgrid pilot program, 2) a pilot program to fund a City of Houston department responsible for overseeing resiliency issues for the City of Houston, and 3) the transition and migration of Houston Electric's Systems, Applications & Products in Data Processing software to a cloud-based application.

Houston Electric's transmission and distribution system resiliency plan proposes to implement twenty-five (25) resiliency measures over a three-year period related to: system hardening, grid modernization, flood mitigation, information technology, physical security, and vegetation management.

The company is focused on implementing new Intelis natural gas meters that feature an integrated safety shutoff valve.

Capital expenditures are a significant use of cash, with $1,657 million used in investing activities for the six months ended June 30, 2024.

Capital expenditures are expected to be used for investment in infrastructure to enhance reliability and safety, increase resiliency and expand our systems through value-added projects.

Issuances of Common Stock, net of issuance costs, increased to $247 million for the six months ended June 30, 2024.

CenterPoint Energy's net zero emissions goals are aligned with Indiana Electric's generation transition plan and are expected to position Indiana Electric to comply with anticipated future regulatory requirements related to GHG emissions reductions.

The company is focused on reducing GHG emissions and advancing the state's clean energy future.

CenterPoint Energy, CERC and their predecessors, including predecessors of Vectren, operated MGPs in the past. The costs CenterPoint Energy or CERC, as applicable, expect to incur to fulfill their respective obligations are estimated by management using assumptions based on actual costs incurred, the timing of expected future payments and inflation factors, among others.

The company is facing increasing competition from renewable energy sources, which could reduce demand for natural gas and electricity.

CenterPoint Energy's current and future solar projects have been impacted by delays and/or increased costs. The potential delays and inflationary cost pressures communicated from the developers of our solar projects have been primarily due to (i) unavailability of solar panels and other uncertainties related to a DOC investigation on anti-dumping and countervailing duties petition filed by American Alliance of Solar Manufacturing Trade Committee, (ii) the December 2021 Uyghur Forced Labor Prevention Act on solar modules and other products manufactured in China's Xinjiang Uyghur Autonomous Region and (iii) persistent general global supply chain and labor availability issues.

The Registrants are routinely involved in rate change applications before state regulatory authorities. Those applications include general rate cases, where the entire cost of service of the utility is assessed and reset. In addition, Registrants are periodically involved in proceedings to adjust its capital tracking mechanisms (e.g., CSIA, DCRF, DRR, GRIP, TCOS, ECA, CECA and TDSIC), its cost of service adjustments (e.g., RSP and RRA), its decoupling mechanism (e.g., decoupling and SRC), and its energy efficiency cost trackers (e.g., CIP, DSMA, EECR, EECRF, EEFC and EEFR).