CENTERPOINT ENERGY INCCNP
CENTERPOINT ENERGY INC Revenue Disclosure
Revenue
In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Registrants expect to be entitled to receive in exchange for these goods or services.
ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period.
The following tables disaggregate revenues by reportable segment and major source for the periods presented:
CenterPoint Energy
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| Electric | Natural Gas | Corporate and Other | Total | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Revenue from contracts with customers | $ | 4,829 | $ | 4,503 | $ | 5 | $ | 9,337 | ||||||||||||||||||
Other (1) | 37 | (17) | 3 | 23 | ||||||||||||||||||||||
| Eliminations | — | (3) | — | (3) | ||||||||||||||||||||||
| Total revenues | $ | 4,866 | $ | 4,483 | $ | 8 | $ | 9,357 | ||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| Electric | Natural Gas | Corporate and Other | Total | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Revenue from contracts with customers | $ | 4,558 | $ | 3,990 | $ | 4 | $ | 8,552 | ||||||||||||||||||
Other (1) | 32 | 58 | 3 | 93 | ||||||||||||||||||||||
| Eliminations | — | (2) | — | (2) | ||||||||||||||||||||||
| Total revenues | $ | 4,590 | $ | 4,046 | $ | 7 | $ | 8,643 | ||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| Electric | Natural Gas | Corporate and Other | Total | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Revenue from contracts with customers | $ | 4,275 | $ | 4,210 | $ | 127 | $ | 8,612 | ||||||||||||||||||
Other (1) | 15 | 69 | 3 | 87 | ||||||||||||||||||||||
| Eliminations | — | (3) | — | (3) | ||||||||||||||||||||||
| Total revenues | $ | 4,290 | $ | 4,276 | $ | 130 | $ | 8,696 | ||||||||||||||||||
(1)Primarily consists of income from ARPs and leases.
Houston Electric
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Revenue from contracts with customers | $ | 4,054 | $ | 3,930 | $ | 3,684 | |||||||||||
| Other (1) | 30 | 9 | (7) | ||||||||||||||
| Total revenues | $ | 4,084 | $ | 3,939 | $ | 3,677 | |||||||||||
(1)Primarily consists of income from ARPs and leases.
CERC
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (in millions) | ||||||||||||||||||||
| Revenue from contracts with customers | $ | 4,362 | $ | 3,868 | $ | 4,083 | ||||||||||||||
Other (1) | (18) | 57 | 66 | |||||||||||||||||
| Total revenues | $ | 4,344 | $ | 3,925 | $ | 4,149 | ||||||||||||||
(1)Primarily consists of income from ARPs and leases.
Revenues from Contracts with Customers
Electric (CenterPoint Energy and Houston Electric). Houston Electric distributes electricity to customers over time and customers consume the electricity when delivered. Indiana Electric generates, distributes and transmits electricity to customers over time and customers consume the electricity when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by state regulators, such as the PUCT and the IURC, is recognized as electricity is delivered and represents amounts both billed and unbilled. Discretionary services requested by customers are provided at a point in time with control transferring upon the completion of the service. Revenue for discretionary services provided by Houston Electric is recognized upon completion of service based on the tariff rates set by the PUCT. Payments for electricity distribution and discretionary services are aggregated and received on a monthly basis. Houston Electric performs transmission services over time as a stand-ready obligation to provide a reliable network of transmission systems. Revenue is recognized upon time elapsed and the monthly tariff rate set by the regulator. Payments are received on a monthly basis. Indiana Electric customers are billed monthly and payment terms, set by the regulator, require payment within a month of billing.
Natural Gas (CenterPoint Energy and CERC). CenterPoint Energy and CERC distribute and transport natural gas to customers over time and customers consume the natural gas when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by the state governing agency for that service area, is recognized as natural gas is delivered and represents amounts both billed and unbilled. Discretionary services requested by the customer are provided at a point in time with control transferring upon completion of the service. Revenue for discretionary services is recognized upon completion of service based on the tariff rates set by the applicable state regulator. Payments of natural gas distribution, transportation and discretionary services are aggregated and received on a monthly basis.
Contract Balances. When the timing of delivery of service is different from the timing of the payments made by customers and when the right to consideration is conditioned on something other than the passage of time, the Registrants recognize a contract liability when customer payment precedes performance. Those customers that prepay are represented by contract liabilities until the performance obligations are satisfied. The Registrants’ contract liabilities are included in Accounts payable and Other current liabilities in their Consolidated Balance Sheets.
The opening and closing balances of accounts receivable and accrued unbilled revenues from contracts with customers are as follows:
CenterPoint Energy
Accounts Receivable (1) (2) | Accrued Unbilled Revenues (2) | ||||||||||
| (in millions) | |||||||||||
Opening balance as of December 31, 2024 | $ | 666 | $ | 521 | |||||||
Closing balance as of December 31, 2025 | 722 | 600 | |||||||||
Increase | $ | 56 | $ | 79 | |||||||
(1)Excludes balances related to customer or vendor cost reimbursements and insurance that are not attributable to revenues from contracts with customers.
(2)The opening balance as of December 31, 2024 also excluded receivables associated with the sale of CERC Corp.’s Louisiana and Mississippi natural gas LDC businesses. The closing balance as of December 31, 2025 also excluded receivables classified as held for sale associated with the Ohio natural gas LDC business.
Houston Electric
Accounts Receivable (1) | Accrued Unbilled Revenues | ||||||||||
| (in millions) | |||||||||||
| Opening balance as of December 31, 2024 | $ | 284 | $ | 137 | |||||||
| Closing balance as of December 31, 2025 | 300 | 169 | |||||||||
Increase | $ | 16 | $ | 32 | |||||||
(1)Excludes balances related to customer or vendor cost reimbursements and insurance that are not attributable to revenues from contracts with customers.
CERC
Accounts Receivable (1) (2) | Accrued Unbilled Revenues (2) | ||||||||||
| (in millions) | |||||||||||
| Opening balance as of December 31, 2024 | $ | 326 | $ | 338 | |||||||
| Closing balance as of December 31, 2025 | 357 | 372 | |||||||||
Increase (decrease) | $ | 31 | $ | 34 | |||||||
(1)Excludes balances related to customer or vendor cost reimbursements and insurance that are not attributable to revenues from contracts with customers.
(2)The opening balance as of December 31, 2024 also excluded receivables associated with the sale of CERC Corp.’s Louisiana and Mississippi natural gas LDC businesses. The closing balance as of December 31, 2025 also excluded receivables classified as held for sale associated with the Ohio natural gas LDC business.
Practical Expedients and Exemption. Sales taxes and other similar taxes collected from customers are excluded from the transaction price. For contracts for which revenue from the satisfaction of the performance obligations is recognized in the amount invoiced, the practical expedient was elected and revenue expected to be recognized on these contracts has not been disclosed.
Allowance for Credit Losses and Bad Debt Expense
CenterPoint Energy and CERC segregate financial assets that fall under the scope of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, primarily trade receivables due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations and macroeconomic factors, among others. Houston Electric had no material changes in its methodology to recognize losses on financial assets that fall under the scope of Topic 326, primarily due to the nature of its customers and regulatory environment. For a discussion of regulatory deferrals, see Note 7.
The table below summarizes the Registrants’ bad debt expense amounts for the periods presented, net of regulatory deferrals:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | CenterPoint Energy | Houston Electric | CERC | |||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bad debt expense | $ | 19 | $ | 1 | $ | 14 | $ | 21 | $ | 1 | $ | 16 | $ | 18 | $ | — | $ | 16 | |||||||||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2022 | Feb 17, 2023 | |
| 2019 | Feb 27, 2020 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.