UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Emerging Growth Company
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| Item 7.01. | Regulation FD Disclosure. |
On September 23, 2021, CenterPoint Energy, Inc. (“CenterPoint Energy”) posted a slide presentation on its website to provide information regarding CenterPoint Energy’s long-term financial outlook and business strategy, including it net zero emissions targets, in connection with CenterPoint Energy’s hosting of an Analyst Day on such date. A copy of the slide presentation is attached to this Current Report on Form 8-K as Exhibit 99.1, which slide presentation is incorporated by reference herein.
Exhibit 99.1 is furnished, not filed, pursuant to Item 7.01. Accordingly, none of the information will be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, as amended, and the information in Exhibit 99.1 will not be incorporated by reference into any registration statement filed by CenterPoint Energy under the Securities Act of 1933, as amended, unless specifically identified as being incorporated by reference.
| Item 9.01. | Financial Statements and Exhibits. |
Exhibit 99.1 is furnished, not filed, pursuant to Item 7.01. Accordingly, none of the information will be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, as amended, and the information in Exhibit 99.1 will not be incorporated by reference into any registration statement filed by CenterPoint Energy under the Securities Act of 1933, as amended, unless specifically identified as being incorporated by reference.
(d) Exhibits.
| EXHIBIT NUMBER |
EXHIBIT DESCRIPTION | |
| 99.1 | CenterPoint Energy Analyst Day Slide Presentation dated September 23, 2021 | |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CENTERPOINT ENERGY, INC. | ||||||
| Date: September 23, 2021 | By: | /s/ Kristie L. Colvin | ||||
| Kristie L. Colvin | ||||||
| Senior Vice President and Chief Accounting Officer | ||||||
Exhibit 99.1 Establishing a path towards PREMIUM T h r o u g h S u s t a i n a b l e G r o w t h … CenterPoint Analyst Day September 2021 CenterPoint Energy Analyst Day – September 2021Exhibit 99.1 Establishing a path towards PREMIUM T h r o u g h S u s t a i n a b l e G r o w t h … CenterPoint Analyst Day September 2021 CenterPoint Energy Analyst Day – September 2021
CAUTIONARY STATEMENT AND OTHER DISCLAIMERS This presentation and the oral statements made in connection herewith contain statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future operations, events, financial position, earnings, growth, costs, prospects, capital investments or performance or underlying assumptions and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or implied by these statements. You can generally identify our forward-looking statements by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “target,” “will,” or other similar words. The absence of these words, however, does not mean that the statements are not forward-looking. We have based our forward-looking statements on our management’s beliefs and assumptions based on information currently available to our management at the time the statements are made. Any statement in this presentation regarding future events, such as CenterPoint Energy’s carbon emission reduction goals, including its net-zero emission goals, and its ability to achieve such goals and related timing thereof, the advancement of and use of new technologies for alternative energy sources, CenterPoint Energy’s ability to continue to modernize its distribution grid, executive management continuity and succession planning, future board composition, corporate governance commitments, strategic plans and value creation, capital investments, business opportunities, future financial performance and results of operations, renewable energy growth objectives, growth and guidance (including earnings and customer growth, utility and rate base growth expectations), the expected closing of previously announced strategic transactions, and any other statement that is not historical facts are forward-looking statements. We caution you not to place undue reliance on any forward-looking statements and that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Accordingly, we cannot assure you that actual results will not differ materially from those expressed or implied by our forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the performance of Enable, the amount of cash distributions CenterPoint Energy receives from Enable, Enable’s ability to redeem the Enable Series A Preferred Units in certain circumstances and the value of CenterPoint Energy’s interest in Enable; (2) the integration of the businesses acquired in the merger with Vectren Corporation (Vectren), including the integration of technology systems, the outcome of shareholder litigation filed against Vectren that could reduce the benefits of the merger, the ability to realize additional benefits and commercial opportunities from the merger, including the development of new opportunities and the performance of projects undertaken by Energy Systems Group, a subsidiary of CenterPoint Energy, which are subject to, among other factors, the level of success in bidding contracts and cancellation and/or reductions in the scope of projects by customers and obligations related to warranties, guarantees and other contractual and legal obligations; (3) the recording of impairment charges; (4) industrial, commercial and residential growth in CenterPoint Energy’s service territories and changes in market demand, including the demand for CenterPoint Energy’s non-utility products and services and effects of energy efficiency measures and demographic patterns; (5) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment, including the timing and amount of natural gas purchase costs associated with the February 2021 winter storm event recovered; (6) future economic and political conditions in regional and national markets and their effect on sales, prices and costs; (7) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital, such as impacts from the February 2021 winter storm event; (8) CenterPoint Energy’s or Enable’s business strategies and strategic initiatives, restructurings, joint ventures and acquisitions or dispositions of assets or businesses, including the announced sale of our Natural Gas businesses in Arkansas and Oklahoma, which we cannot assure will be completed or will have the anticipated benefits to us, and the merger of Enable with Energy Transfer, which we cannot assure will be completed or will have the anticipated benefits to us or Enable; (9) the outcome of litigation, including litigation related to the February 2021 winter storm event; (10) the ability of retail electric providers (REPs), including REP affiliates of NRG Energy, Inc. and Vistra Energy Corp., to satisfy their obligations to CenterPoint Energy and Houston Electric, including the negative impact on such ability related to COVID-19 and the February 2021 winter storm event; (11) the COVID- 19 pandemic and its effect on CenterPoint Energy’s and Enable’s operations, business and financial condition, the industries and communities they serve, U.S. and world financial markets and supply chains, potential regulatory actions and changes in customer and stakeholder behaviors relating thereto; (12) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy’s businesses (including the businesses of Enable), including, among others, energy deregulation or re-regulation, pipeline integrity and safety, regulations relating to climate change, air emissions, carbon, waste water discharges and the handling and disposal of coal combustion residuals, and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by our regulated businesses; (13) direct or indirect effects on CenterPoint Energy’s or Enable’s facilities, resources, operations and financial condition resulting from terrorism, cyber attacks or intrusions, data security breaches or other attempts to disrupt their businesses or the businesses of third parties, or other catastrophic events such as fires, ice, explosions, leaks, severe weather events, pandemic health events or other occurrences; (14) tax legislation, including the effects of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act (which includes but is not limited to any potential changes to tax rates, tax credits and/or interest deductibility), as well as any changes in tax laws under the Biden administration and uncertainties involving state commissions’ and local municipalities’ regulatory requirements and determinations regarding the treatment of excess deferred income taxes and CenterPoint Energy’s rates; (15) CenterPoint Energy’s ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (16) actions by credit rating agencies, including any potential downgrades to credit ratings; (17) matters affecting regulatory approval, legislative actions, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or cancellation or in cost overruns that cannot be recouped in rates; (18) the impact of unplanned facility outages or other closures; (19) CenterPoint Energy’s ability to fund and invest planned capital and the timely recovery of CenterPoint Energy’s investments, including those related to Indiana Electric’s generation transition plan as part of its most recent IRP; (20) CenterPoint Energy’s ability to successfully construct and operate electric generating facilities, including complying with applicable environmental standards and the implementation of a well-balanced energy and resource mix, as appropriate; (21) the sufficiency of CenterPoint Energy’s insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (22) commercial bank and financial market conditions, CenterPoint Energy’s access to capital, the cost of such capital, and the results of CenterPoint Energy’s financing and refinancing efforts, including availability of funds in the debt capital markets; (23) changes in rates of inflation; (24) inability of various counterparties or customers to meet their obligations to CenterPoint Energy; (25) the extent and effectiveness of CenterPoint Energy’s and Enable’s risk management and hedging activities, including but not limited to, financial and weather hedges; (26) timely and appropriate regulatory actions, which include actions allowing securitization, for any future hurricanes or other severe weather events, or natural disasters or other recovery of costs; (27) CenterPoint Energy’s or Enable’s ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (28) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (29) the impact of alternate energy sources on the demand for natural gas; (30) the timing and outcome of any audits, disputes and other proceedings related to taxes; (31) the transition to a replacement for the LIBOR benchmark interest rate; (32) the effect of changes in and application of accounting standards and pronouncements; (33) CenterPoint Energy’s ability to execute operations and maintenance management initiatives, targets and goals; and (34) other factors discussed in CenterPoint Energy’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, CenterPoint Energy’s Quarterly Report on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission. This presentation contains time-sensitive information that is accurate as of September 23, 2021. Some of the information in this presentation is unaudited and may be subject to change. We undertake no obligation to update the information presented herein, except as required by law. Use of Non-GAAP Financial Measures The Company provides guidance based on non-GAAP Utility Net income, non-GAAP long term funds from operations (FFO) and non-GAAP utility earnings per share. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. Please refer to the Appendix for detailed discussion of the use of non-GAAP financial measures presented herein. . CenterPoint Energy Analyst Day – September 2021 2CAUTIONARY STATEMENT AND OTHER DISCLAIMERS This presentation and the oral statements made in connection herewith contain statements concerning our expectations, beliefs, plans, objectives, goals, strategies, future operations, events, financial position, earnings, growth, costs, prospects, capital investments or performance or underlying assumptions and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or implied by these statements. You can generally identify our forward-looking statements by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “target,” “will,” or other similar words. The absence of these words, however, does not mean that the statements are not forward-looking. We have based our forward-looking statements on our management’s beliefs and assumptions based on information currently available to our management at the time the statements are made. Any statement in this presentation regarding future events, such as CenterPoint Energy’s carbon emission reduction goals, including its net-zero emission goals, and its ability to achieve such goals and related timing thereof, the advancement of and use of new technologies for alternative energy sources, CenterPoint Energy’s ability to continue to modernize its distribution grid, executive management continuity and succession planning, future board composition, corporate governance commitments, strategic plans and value creation, capital investments, business opportunities, future financial performance and results of operations, renewable energy growth objectives, growth and guidance (including earnings and customer growth, utility and rate base growth expectations), the expected closing of previously announced strategic transactions, and any other statement that is not historical facts are forward-looking statements. We caution you not to place undue reliance on any forward-looking statements and that assumptions, beliefs, expectations, intentions and projections about future events may and often do vary materially from actual results. Accordingly, we cannot assure you that actual results will not differ materially from those expressed or implied by our forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by the provided forward-looking information include risks and uncertainties relating to: (1) the performance of Enable, the amount of cash distributions CenterPoint Energy receives from Enable, Enable’s ability to redeem the Enable Series A Preferred Units in certain circumstances and the value of CenterPoint Energy’s interest in Enable; (2) the integration of the businesses acquired in the merger with Vectren Corporation (Vectren), including the integration of technology systems, the outcome of shareholder litigation filed against Vectren that could reduce the benefits of the merger, the ability to realize additional benefits and commercial opportunities from the merger, including the development of new opportunities and the performance of projects undertaken by Energy Systems Group, a subsidiary of CenterPoint Energy, which are subject to, among other factors, the level of success in bidding contracts and cancellation and/or reductions in the scope of projects by customers and obligations related to warranties, guarantees and other contractual and legal obligations; (3) the recording of impairment charges; (4) industrial, commercial and residential growth in CenterPoint Energy’s service territories and changes in market demand, including the demand for CenterPoint Energy’s non-utility products and services and effects of energy efficiency measures and demographic patterns; (5) timely and appropriate rate actions that allow recovery of costs and a reasonable return on investment, including the timing and amount of natural gas purchase costs associated with the February 2021 winter storm event recovered; (6) future economic and political conditions in regional and national markets and their effect on sales, prices and costs; (7) weather variations and other natural phenomena, including the impact of severe weather events on operations and capital, such as impacts from the February 2021 winter storm event; (8) CenterPoint Energy’s or Enable’s business strategies and strategic initiatives, restructurings, joint ventures and acquisitions or dispositions of assets or businesses, including the announced sale of our Natural Gas businesses in Arkansas and Oklahoma, which we cannot assure will be completed or will have the anticipated benefits to us, and the merger of Enable with Energy Transfer, which we cannot assure will be completed or will have the anticipated benefits to us or Enable; (9) the outcome of litigation, including litigation related to the February 2021 winter storm event; (10) the ability of retail electric providers (REPs), including REP affiliates of NRG Energy, Inc. and Vistra Energy Corp., to satisfy their obligations to CenterPoint Energy and Houston Electric, including the negative impact on such ability related to COVID-19 and the February 2021 winter storm event; (11) the COVID- 19 pandemic and its effect on CenterPoint Energy’s and Enable’s operations, business and financial condition, the industries and communities they serve, U.S. and world financial markets and supply chains, potential regulatory actions and changes in customer and stakeholder behaviors relating thereto; (12) state and federal legislative and regulatory actions or developments affecting various aspects of CenterPoint Energy’s businesses (including the businesses of Enable), including, among others, energy deregulation or re-regulation, pipeline integrity and safety, regulations relating to climate change, air emissions, carbon, waste water discharges and the handling and disposal of coal combustion residuals, and changes in regulation and legislation pertaining to trade, health care, finance and actions regarding the rates charged by our regulated businesses; (13) direct or indirect effects on CenterPoint Energy’s or Enable’s facilities, resources, operations and financial condition resulting from terrorism, cyber attacks or intrusions, data security breaches or other attempts to disrupt their businesses or the businesses of third parties, or other catastrophic events such as fires, ice, explosions, leaks, severe weather events, pandemic health events or other occurrences; (14) tax legislation, including the effects of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the comprehensive tax reform legislation informally referred to as the Tax Cuts and Jobs Act (which includes but is not limited to any potential changes to tax rates, tax credits and/or interest deductibility), as well as any changes in tax laws under the Biden administration and uncertainties involving state commissions’ and local municipalities’ regulatory requirements and determinations regarding the treatment of excess deferred income taxes and CenterPoint Energy’s rates; (15) CenterPoint Energy’s ability to mitigate weather impacts through normalization or rate mechanisms, and the effectiveness of such mechanisms; (16) actions by credit rating agencies, including any potential downgrades to credit ratings; (17) matters affecting regulatory approval, legislative actions, construction, implementation of necessary technology or other issues with respect to major capital projects that result in delays or cancellation or in cost overruns that cannot be recouped in rates; (18) the impact of unplanned facility outages or other closures; (19) CenterPoint Energy’s ability to fund and invest planned capital and the timely recovery of CenterPoint Energy’s investments, including those related to Indiana Electric’s generation transition plan as part of its most recent IRP; (20) CenterPoint Energy’s ability to successfully construct and operate electric generating facilities, including complying with applicable environmental standards and the implementation of a well-balanced energy and resource mix, as appropriate; (21) the sufficiency of CenterPoint Energy’s insurance coverage, including availability, cost, coverage and terms and ability to recover claims; (22) commercial bank and financial market conditions, CenterPoint Energy’s access to capital, the cost of such capital, and the results of CenterPoint Energy’s financing and refinancing efforts, including availability of funds in the debt capital markets; (23) changes in rates of inflation; (24) inability of various counterparties or customers to meet their obligations to CenterPoint Energy; (25) the extent and effectiveness of CenterPoint Energy’s and Enable’s risk management and hedging activities, including but not limited to, financial and weather hedges; (26) timely and appropriate regulatory actions, which include actions allowing securitization, for any future hurricanes or other severe weather events, or natural disasters or other recovery of costs; (27) CenterPoint Energy’s or Enable’s ability to recruit, effectively transition and retain management and key employees and maintain good labor relations; (28) changes in technology, particularly with respect to efficient battery storage or the emergence or growth of new, developing or alternative sources of generation; (29) the impact of alternate energy sources on the demand for natural gas; (30) the timing and outcome of any audits, disputes and other proceedings related to taxes; (31) the transition to a replacement for the LIBOR benchmark interest rate; (32) the effect of changes in and application of accounting standards and pronouncements; (33) CenterPoint Energy’s ability to execute operations and maintenance management initiatives, targets and goals; and (34) other factors discussed in CenterPoint Energy’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, CenterPoint Energy’s Quarterly Report on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 and other reports CenterPoint Energy or its subsidiaries may file from time to time with the Securities and Exchange Commission. This presentation contains time-sensitive information that is accurate as of September 23, 2021. Some of the information in this presentation is unaudited and may be subject to change. We undertake no obligation to update the information presented herein, except as required by law. Use of Non-GAAP Financial Measures The Company provides guidance based on non-GAAP Utility Net income, non-GAAP long term funds from operations (FFO) and non-GAAP utility earnings per share. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. Please refer to the Appendix for detailed discussion of the use of non-GAAP financial measures presented herein. . CenterPoint Energy Analyst Day – September 2021 2
Executive Kickoff COMPANY PROFILE Minnesota Gas (1) MN MI Financial Statistics Ohio Gas (5) Arkansas Gas (1) ▪ Stock Price $26.22 ▪ Total Assets – $36B Texas Gas WI Mississippi Gas (2) ▪ Market Cap – ~$16B MI ▪ Non-GAAP Utility Net Income – $757M Houston Electric Company HQ ▪ Enterprise Value – ~$32B (3) ▪ Credit Rating – BBB / Baa2 North Indiana Gas IA ▪ Payout Ratio – 55% Southern Indiana Gas & Electric (5) IN Oklahoma Gas OH (4) Louisiana Gas IL Electric Transmission & Distribution and Power Generation Power generation more than MO KY 2.7 million 2 states AR TN OK METERED CUSTOMERS (5) Natural Gas Distribution MS TX LA more than (6) 4.7 million 8 states METERED CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements and see slide 93 for information on non-GAAP measures, including Utility EPS, Utility net income, and respective assumptions. See slide 86 for a reconciliation of non- GAAP Utility Net Income to its most directly comparable GAAP financial measure. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 3Executive Kickoff COMPANY PROFILE Minnesota Gas (1) MN MI Financial Statistics Ohio Gas (5) Arkansas Gas (1) ▪ Stock Price $26.22 ▪ Total Assets – $36B Texas Gas WI Mississippi Gas (2) ▪ Market Cap – ~$16B MI ▪ Non-GAAP Utility Net Income – $757M Houston Electric Company HQ ▪ Enterprise Value – ~$32B (3) ▪ Credit Rating – BBB / Baa2 North Indiana Gas IA ▪ Payout Ratio – 55% Southern Indiana Gas & Electric (5) IN Oklahoma Gas OH (4) Louisiana Gas IL Electric Transmission & Distribution and Power Generation Power generation more than MO KY 2.7 million 2 states AR TN OK METERED CUSTOMERS (5) Natural Gas Distribution MS TX LA more than (6) 4.7 million 8 states METERED CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements and see slide 93 for information on non-GAAP measures, including Utility EPS, Utility net income, and respective assumptions. See slide 86 for a reconciliation of non- GAAP Utility Net Income to its most directly comparable GAAP financial measure. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 3
Executive kickoff Executive Kickoff Dave Lesar President and Chief Executive Officer CenterPoint Energy Analyst Day – September 2021 4Executive kickoff Executive Kickoff Dave Lesar President and Chief Executive Officer CenterPoint Energy Analyst Day – September 2021 4
Executive kickoff OUR TEAM Dave Lesar * Kristie Colvin Scott Doyle * Lynne Harkel-Rumford Monica Karuturi President and Chief Executive Officer SVP and Chief Accounting Officer EVP of Natural Gas SVP and Chief Human Resources Officer SVP and General Counsel Jason Ryan * Gregory Knight * Kenny Mercado * Jason Wells * SVP of Regulatory Services EVP of Customer Transformation EVP of Electric Utility EVP and Chief Financial Officer and Government Affairs and Business Services * denotes today’s presenters CenterPoint Energy Analyst Day – September 2021 5Executive kickoff OUR TEAM Dave Lesar * Kristie Colvin Scott Doyle * Lynne Harkel-Rumford Monica Karuturi President and Chief Executive Officer SVP and Chief Accounting Officer EVP of Natural Gas SVP and Chief Human Resources Officer SVP and General Counsel Jason Ryan * Gregory Knight * Kenny Mercado * Jason Wells * SVP of Regulatory Services EVP of Customer Transformation EVP of Electric Utility EVP and Chief Financial Officer and Government Affairs and Business Services * denotes today’s presenters CenterPoint Energy Analyst Day – September 2021 5
Executive kickoff ANALYST DAY AGENDA Time Event Presenter(s) 9:00 AM Executive kickoff Dave Lesar 9:20 AM Integrating industry-leading Net-Zero commitments Jason Wells 9:30 AM Investing in our utility businesses Kenny Mercado and Scott Doyle 10:00 AM Delivering clean & resilient services for our customers Gregory Knight 10:10 AM Serving constructive regulatory jurisdictions Jason Ryan 10:20 AM Path towards sustainable financial growth Jason Wells 10:35 AM Closing: Key takeaways Dave Lesar Brief Intermission 10:45 AM Q&A Session Management Panel 12:00 PM – 2:00 PM Lunch and Breakout sessions at Hyatt Regency Houston Various CenterPoint teams CenterPoint Energy Analyst Day – September 2021 6Executive kickoff ANALYST DAY AGENDA Time Event Presenter(s) 9:00 AM Executive kickoff Dave Lesar 9:20 AM Integrating industry-leading Net-Zero commitments Jason Wells 9:30 AM Investing in our utility businesses Kenny Mercado and Scott Doyle 10:00 AM Delivering clean & resilient services for our customers Gregory Knight 10:10 AM Serving constructive regulatory jurisdictions Jason Ryan 10:20 AM Path towards sustainable financial growth Jason Wells 10:35 AM Closing: Key takeaways Dave Lesar Brief Intermission 10:45 AM Q&A Session Management Panel 12:00 PM – 2:00 PM Lunch and Breakout sessions at Hyatt Regency Houston Various CenterPoint teams CenterPoint Energy Analyst Day – September 2021 6
Executive kickoff YESTERDAY’S GREAT HEADLINES…. (1) (2) 8% Utility EPS Growth For 2021 (Top decile) (1) (2) 6% - 8% Utility EPS Growth 5-year annual growth (Top decile) $16B+ 2021 – 2025 Capital Plan (3) 10% CAGR Rate Base Growth (4) Moving to a purely regulated utility Supporting a transaction to allow for future midstream exit $300M ATM equity issuance over 5-year plan Utilizing asset sales to efficiently recycle capital for growth No block equity needs 1% - 2% YoY O&M Focusing on cost control with opportunity for reinvestments (5) Reduction Target 1% - 2% annual avg Serving jurisdictions with organic customer growth (6) customer growth ….THAT WE WILL IMPROVE UPON TODAY Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 7Executive kickoff YESTERDAY’S GREAT HEADLINES…. (1) (2) 8% Utility EPS Growth For 2021 (Top decile) (1) (2) 6% - 8% Utility EPS Growth 5-year annual growth (Top decile) $16B+ 2021 – 2025 Capital Plan (3) 10% CAGR Rate Base Growth (4) Moving to a purely regulated utility Supporting a transaction to allow for future midstream exit $300M ATM equity issuance over 5-year plan Utilizing asset sales to efficiently recycle capital for growth No block equity needs 1% - 2% YoY O&M Focusing on cost control with opportunity for reinvestments (5) Reduction Target 1% - 2% annual avg Serving jurisdictions with organic customer growth (6) customer growth ….THAT WE WILL IMPROVE UPON TODAY Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 7
Executive kickoff TODAY’S HEADLINES…. CenterPoint Energy Analyst Day – September 2021 8Executive kickoff TODAY’S HEADLINES…. CenterPoint Energy Analyst Day – September 2021 8
Executive kickoff HEADLINE 1 – INCREASING UTILITY EPS GROWTH GUIDANCE…. 8% Expected annual growth in 2021, 22, 23 and 24 6% - 8% Expected annual growth from 2025-30 This would double Utility EPS and dividends in less than 10 years (1) ….THIS IS TOP DECILE UTILITY EPS GROWTH FOR THE INDUSTRY Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 9Executive kickoff HEADLINE 1 – INCREASING UTILITY EPS GROWTH GUIDANCE…. 8% Expected annual growth in 2021, 22, 23 and 24 6% - 8% Expected annual growth from 2025-30 This would double Utility EPS and dividends in less than 10 years (1) ….THIS IS TOP DECILE UTILITY EPS GROWTH FOR THE INDUSTRY Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 9
Executive kickoff HEADLINE 2 – INCREASING CAPITAL INVESTMENT…. (1) Increasing our current 5-year capital plan to $18B+ from $16B+ We are announcing today a new $40B+ (2) 10-year capital plan ~$1B of additional reserve capital No spending cliff here ….TO CONTINUE TO INVEST IN SAFETY AND RESILIENCY OF OUR SERVICE Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 10Executive kickoff HEADLINE 2 – INCREASING CAPITAL INVESTMENT…. (1) Increasing our current 5-year capital plan to $18B+ from $16B+ We are announcing today a new $40B+ (2) 10-year capital plan ~$1B of additional reserve capital No spending cliff here ….TO CONTINUE TO INVEST IN SAFETY AND RESILIENCY OF OUR SERVICE Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 10
Executive kickoff HEADLINE 3 – NO EQUITY NEEDS TO FUND GROWTH…. Announcing the elimination (1) of our previously communicated $300M of ATM equity needs Announcing no external equity issuance for the full 10-year capital plan Utilizing >$3B (2) of after-tax proceeds to efficiently fund growth and pay down debt Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 11Executive kickoff HEADLINE 3 – NO EQUITY NEEDS TO FUND GROWTH…. Announcing the elimination (1) of our previously communicated $300M of ATM equity needs Announcing no external equity issuance for the full 10-year capital plan Utilizing >$3B (2) of after-tax proceeds to efficiently fund growth and pay down debt Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 11
Executive kickoff HEADLINE 4 - ELIMINATING MIDSTREAM EXPOSURE…. We expect to exit midstream by (1) end of 2022 Announcing a contingent forward sale of 50 million Energy Transfer common units Anticipate (1) >40% monetization by end of 2021, including Energy Transfer preferred units ….BECOMING A PURELY REGULATED UTILITY Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 12Executive kickoff HEADLINE 4 - ELIMINATING MIDSTREAM EXPOSURE…. We expect to exit midstream by (1) end of 2022 Announcing a contingent forward sale of 50 million Energy Transfer common units Anticipate (1) >40% monetization by end of 2021, including Energy Transfer preferred units ….BECOMING A PURELY REGULATED UTILITY Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 12
Executive kickoff HEADLINE 5 – ANNOUNCING A NET-ZERO CARBON TARGET…. Net Zero direct emissions by 2035 with clear and transparent steps across all jurisdictions, no exclusions An industry-leading goal ~15 years (1) ahead of the peer average ….THAT IS MORE AGGRESSIVE THAN OTHER UTILITIES WITH GENERATION Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 13Executive kickoff HEADLINE 5 – ANNOUNCING A NET-ZERO CARBON TARGET…. Net Zero direct emissions by 2035 with clear and transparent steps across all jurisdictions, no exclusions An industry-leading goal ~15 years (1) ahead of the peer average ….THAT IS MORE AGGRESSIVE THAN OTHER UTILITIES WITH GENERATION Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 13
Executive kickoff HEADLINE 6 – MAINTAINING A STRONG BALANCE SHEET…. Plan supports 14% - 15% (1) long-term FFO/Debt over the 10-year plan Starting in 2022 Expect parent level debt at ~20% by the end of 2022 Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including long-term FFO assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 14Executive kickoff HEADLINE 6 – MAINTAINING A STRONG BALANCE SHEET…. Plan supports 14% - 15% (1) long-term FFO/Debt over the 10-year plan Starting in 2022 Expect parent level debt at ~20% by the end of 2022 Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including long-term FFO assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 14
Executive kickoff HEADLINE 7 – MAINTAINING COST DISCIPLINE AND SERVING GROWING REGIONS…. Plan maintains 1% - 2% (1) Annual O&M reductions through continuous improvement 1% - 2% (2) Organic annual customer growth 1% - 2% (3) Potential incremental load growth from EVs ….KEEPING SERVICE AFFORDABLE FOR CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 15Executive kickoff HEADLINE 7 – MAINTAINING COST DISCIPLINE AND SERVING GROWING REGIONS…. Plan maintains 1% - 2% (1) Annual O&M reductions through continuous improvement 1% - 2% (2) Organic annual customer growth 1% - 2% (3) Potential incremental load growth from EVs ….KEEPING SERVICE AFFORDABLE FOR CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 15
Executive kickoff OUR 10-YEAR FINANCIAL PLAN…. Scenario assuming 2021E-2024E annual Utility EPS growth of 8% and 2025E-2030E annual Utility EPS growth of 7% Rate Base Growth Utility EPS Growth Dividend Growth (1) (1) $2.38 $1.21 ~$37B+ 2030E Utility EPS 2030E Dividend per Share 2030E Rate Base (2) $1.17 $0.60 ~$16B+ 2020 Ending Utility EPS 2020 Dividend per Share 2020 Ending Rate Base ….IS A COMPELLING AND SUSTAINABLE VALUE PROPOSITION Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 16Executive kickoff OUR 10-YEAR FINANCIAL PLAN…. Scenario assuming 2021E-2024E annual Utility EPS growth of 8% and 2025E-2030E annual Utility EPS growth of 7% Rate Base Growth Utility EPS Growth Dividend Growth (1) (1) $2.38 $1.21 ~$37B+ 2030E Utility EPS 2030E Dividend per Share 2030E Rate Base (2) $1.17 $0.60 ~$16B+ 2020 Ending Utility EPS 2020 Dividend per Share 2020 Ending Rate Base ….IS A COMPELLING AND SUSTAINABLE VALUE PROPOSITION Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 16
Executive kickoff PREMIUM UTILITY BENCHMARK COMPARISONS…. CNP vs. (1) Headline CenterPoint Premium Utilities Premium Utilities (2) Utility EPS Growth 8% 5 - 7% Top (3) Rate Base Growth 9% 6 - 8% Top (4) Dividend Per Share Growth 8% 5 - 7% Top (5) External Equity Needs 0% 0 - 5% Among Top (5) Net-Zero Goal 2035 2048 average Top (6) Customer Growth 1-2% 0-1% Top (7) Balance Sheet Metrics Inline Baa2 Baa1 /Baa2 ….HIGHLIGHTS COMPELLING GROWTH AND VALUE PROPOSITION FOR STAKEHOLDERS Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer and information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. “Premium Utilities” include AEE, CMS, LNT, WEC, and XEL. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 17Executive kickoff PREMIUM UTILITY BENCHMARK COMPARISONS…. CNP vs. (1) Headline CenterPoint Premium Utilities Premium Utilities (2) Utility EPS Growth 8% 5 - 7% Top (3) Rate Base Growth 9% 6 - 8% Top (4) Dividend Per Share Growth 8% 5 - 7% Top (5) External Equity Needs 0% 0 - 5% Among Top (5) Net-Zero Goal 2035 2048 average Top (6) Customer Growth 1-2% 0-1% Top (7) Balance Sheet Metrics Inline Baa2 Baa1 /Baa2 ….HIGHLIGHTS COMPELLING GROWTH AND VALUE PROPOSITION FOR STAKEHOLDERS Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer and information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. “Premium Utilities” include AEE, CMS, LNT, WEC, and XEL. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 17
Executive kickoff OUR NEW PREMIUM VALUE PROPOSITION 10 YEAR PLAN Delivering industry-leading Utility EPS growth of 8% annually through 2024 and (1) 6-8% annually through 2030 ; targeting Dividend growth in line with Utility EPS growth Increasing 5-year Capital plan to $18B+, and introducing 10-year Capital plan of $40B+, with more potential well beyond our 10-year horizon Utilizing >$3B in proceeds; No external equity issuance planned through 2030 (2) Executed contingent forward sale of Energy Transfer common units ; plan to accelerate future midstream exit Industry-leading Net Zero direct emissions by 2035 target; nearly 15 years ahead of (3) peer average (4) Maintaining balance sheet health; long term FFO/Debt target of 14%-15% through 2030 (5) (6) Keeping rates affordable through maintained O&M discipline and customer growth Becoming a Pure-play Regulated Utility with a consistent track record of delivery Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer and information on non-GAAP measures, including Utility EPS and long term FFO/Debt and their related assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 18Executive kickoff OUR NEW PREMIUM VALUE PROPOSITION 10 YEAR PLAN Delivering industry-leading Utility EPS growth of 8% annually through 2024 and (1) 6-8% annually through 2030 ; targeting Dividend growth in line with Utility EPS growth Increasing 5-year Capital plan to $18B+, and introducing 10-year Capital plan of $40B+, with more potential well beyond our 10-year horizon Utilizing >$3B in proceeds; No external equity issuance planned through 2030 (2) Executed contingent forward sale of Energy Transfer common units ; plan to accelerate future midstream exit Industry-leading Net Zero direct emissions by 2035 target; nearly 15 years ahead of (3) peer average (4) Maintaining balance sheet health; long term FFO/Debt target of 14%-15% through 2030 (5) (6) Keeping rates affordable through maintained O&M discipline and customer growth Becoming a Pure-play Regulated Utility with a consistent track record of delivery Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer and information on non-GAAP measures, including Utility EPS and long term FFO/Debt and their related assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 18
Executive kickoff SERVING GROWING AND PREMIUM JURISDICTIONS…. (1) Population Growth: 2010 to 2020 ~56%+ of 2021E Rate Base Dedicated to Texas th Houston is currently the 4 largest city in the U.S. and (1) is the only one growing among the top 4 cities (2) Houston ranks #1 in diversity in the U.S. Houston is home to 21 Fortune 500 companies (3) nd 15.3% 2 only to New York and 2x as many as Dallas 15% (4) – Hewlett Packard Enterprise and NRG Energy relocated to Houston in the past year Texas Medical Center is the world’s largest medical center TX (5) th 15.9% and on its own is the 8 largest business district in U.S. Houston Electric customer growth projected to Houston Electric (6) Company HQ continue at 2% annually Texas Gas Austin-San Antonio Corridor – one of the fastest-growing regions (7) in the U.S. with 50%+ population growth expected by 2030 ….ANCHORED BY STRONG MACRO DRIVERS IN THE GREATER HOUSTON AREA Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 19Executive kickoff SERVING GROWING AND PREMIUM JURISDICTIONS…. (1) Population Growth: 2010 to 2020 ~56%+ of 2021E Rate Base Dedicated to Texas th Houston is currently the 4 largest city in the U.S. and (1) is the only one growing among the top 4 cities (2) Houston ranks #1 in diversity in the U.S. Houston is home to 21 Fortune 500 companies (3) nd 15.3% 2 only to New York and 2x as many as Dallas 15% (4) – Hewlett Packard Enterprise and NRG Energy relocated to Houston in the past year Texas Medical Center is the world’s largest medical center TX (5) th 15.9% and on its own is the 8 largest business district in U.S. Houston Electric customer growth projected to Houston Electric (6) Company HQ continue at 2% annually Texas Gas Austin-San Antonio Corridor – one of the fastest-growing regions (7) in the U.S. with 50%+ population growth expected by 2030 ….ANCHORED BY STRONG MACRO DRIVERS IN THE GREATER HOUSTON AREA Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 19
Executive kickoff SERVING GROWING AND PREMIUM JURISDICTIONS…. (1) Population Growth by State: 2010 to 2020 ~30% of 2021E Rate Base Dedicated to IN + MN MN IN Minnesota’s population outgrew the U.S. (1) 8% 5% average over the last decade Second to Minnesota, Indiana had the highest population growth in the Midwest over the last (1) decade Minnesota Gas Minnesota’s and Indiana’s real GDP increased 7.5% North Indiana Gas and 6.8%, respectively, in Q1 2021 compared to the Southern Indiana Gas & Electric (2) U.S. growth rate of 6.4% Minnesota and Indiana are home to 42 Fortune MS (3) 500 Companies OH -% LA 2% 3% Constructive regulatory jurisdictions Ohio Gas All gas jurisdictions (except MN) passed legislation Mississippi Gas to prohibit natural gas ban Louisiana Gas ….ANCHORED BY STRONG MACRO DRIVERS IN MINNESOTA AND INDIANA Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 20Executive kickoff SERVING GROWING AND PREMIUM JURISDICTIONS…. (1) Population Growth by State: 2010 to 2020 ~30% of 2021E Rate Base Dedicated to IN + MN MN IN Minnesota’s population outgrew the U.S. (1) 8% 5% average over the last decade Second to Minnesota, Indiana had the highest population growth in the Midwest over the last (1) decade Minnesota Gas Minnesota’s and Indiana’s real GDP increased 7.5% North Indiana Gas and 6.8%, respectively, in Q1 2021 compared to the Southern Indiana Gas & Electric (2) U.S. growth rate of 6.4% Minnesota and Indiana are home to 42 Fortune MS (3) 500 Companies OH -% LA 2% 3% Constructive regulatory jurisdictions Ohio Gas All gas jurisdictions (except MN) passed legislation Mississippi Gas to prohibit natural gas ban Louisiana Gas ….ANCHORED BY STRONG MACRO DRIVERS IN MINNESOTA AND INDIANA Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 20
Executive kickoff $40+ BILLION OF SUSTAINABLE CAPITAL INVESTMENTS OVER 10 YEARS…. ~$18+ Billion 5-Yr Capital Plan ~$4.7 ~$22 billion ~$3.8 ~$3.7 ~$3.5 ~$3.2 2021E 2022E 2023E 2024E 2025E 2026E – 2030E ….TO PROVIDE SAFE, RESILIENT, AFFORDABLE, AND CLEAN SERVICES FOR OUR CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. Includes the effect of AR and OK gas LDCs dispositions expected to be completed by 2022. CenterPoint Energy Analyst Day – September 2021 21 $ in billionsExecutive kickoff $40+ BILLION OF SUSTAINABLE CAPITAL INVESTMENTS OVER 10 YEARS…. ~$18+ Billion 5-Yr Capital Plan ~$4.7 ~$22 billion ~$3.8 ~$3.7 ~$3.5 ~$3.2 2021E 2022E 2023E 2024E 2025E 2026E – 2030E ….TO PROVIDE SAFE, RESILIENT, AFFORDABLE, AND CLEAN SERVICES FOR OUR CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. Includes the effect of AR and OK gas LDCs dispositions expected to be completed by 2022. CenterPoint Energy Analyst Day – September 2021 21 $ in billions
Executive kickoff ESTABLISHING A PATH TOWARDS PREMIUM…. Through Sustainable Growth Sustainable, resilient, Sustainable Positive and Sustainable Growth for Impact on our affordable service Shareholders Environment for Customers ….FOR ALL STAKEHOLDERS Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 22Executive kickoff ESTABLISHING A PATH TOWARDS PREMIUM…. Through Sustainable Growth Sustainable, resilient, Sustainable Positive and Sustainable Growth for Impact on our affordable service Shareholders Environment for Customers ….FOR ALL STAKEHOLDERS Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 22
Integrating industry-leading Net Zero Commitments Integrating Industry-leading Net Zero Commitments Jason Wells Executive Vice President and Chief Financial Officer CenterPoint Energy Analyst Day – September 2021 23Integrating industry-leading Net Zero Commitments Integrating Industry-leading Net Zero Commitments Jason Wells Executive Vice President and Chief Financial Officer CenterPoint Energy Analyst Day – September 2021 23
Integrating industry-leading Net Zero commitments ESTABLISHING INDUSTRY-LEADING CARBON REDUCTION TARGETS Scope 3 Emissions Scope 1 & 2 Emissions Utility to announce Scope 3 carbon Utility with generation to announce st st reduction goal by 2035 that applies Net-Zero goal (Scope 1 & 2) by 2035 1 1 (1) (1) ~15 years ahead of peer average goals to all operating jurisdictions Net-Zero Carbon Target Carbon Reduction Target 2025 2030 2035 2040 2045 2050 2025 2030 2035 2040 2045 2050 CNP CNP 20% - 30% reduction by 2035 Peer A Peer A Peer B Peer B Peer C Peer C Peer D Peer D Peer E Peer E Peer F 35% reduction by 2050 Peer F Peer G Peer G Peer H Peer H Peer I Peer I Peer J Peer J Peer K Net Zero by 2050, excluding some businesses Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. See appendix for endnotes. See definitions for emission scopes on slide 85. Our Scope 2 estimates exclude Texas electric T&D assets in the line loss calculation and exclude emissions related to purchased power between ’24E-’26E. Our Scope 3 estimates exclude the emissions of transport customers and emissions related to upstream extraction. CenterPoint Energy Analyst Day – September 2021 24Integrating industry-leading Net Zero commitments ESTABLISHING INDUSTRY-LEADING CARBON REDUCTION TARGETS Scope 3 Emissions Scope 1 & 2 Emissions Utility to announce Scope 3 carbon Utility with generation to announce st st reduction goal by 2035 that applies Net-Zero goal (Scope 1 & 2) by 2035 1 1 (1) (1) ~15 years ahead of peer average goals to all operating jurisdictions Net-Zero Carbon Target Carbon Reduction Target 2025 2030 2035 2040 2045 2050 2025 2030 2035 2040 2045 2050 CNP CNP 20% - 30% reduction by 2035 Peer A Peer A Peer B Peer B Peer C Peer C Peer D Peer D Peer E Peer E Peer F 35% reduction by 2050 Peer F Peer G Peer G Peer H Peer H Peer I Peer I Peer J Peer J Peer K Net Zero by 2050, excluding some businesses Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. See appendix for endnotes. See definitions for emission scopes on slide 85. Our Scope 2 estimates exclude Texas electric T&D assets in the line loss calculation and exclude emissions related to purchased power between ’24E-’26E. Our Scope 3 estimates exclude the emissions of transport customers and emissions related to upstream extraction. CenterPoint Energy Analyst Day – September 2021 24
Integrating industry-leading Net Zero commitments ACCELERATE TO NET ZERO SCOPE 1 AND 2 EMISSIONS BY 2035…. ~60% ~40% Actions Underway Future Actions (1) 5.2MM Annual MT 2020 Actual Retire coal unit Culley 3 coal unit Retire coal units Culley 2 by 2025 to be addressed in the next IRP AB Brown 1&2 and Exit Warrick 4 coal unit by 2023 Net Zero (3) 2035 Coal retirements partially Offsets and Modernize Pipe and Fleet; offset by gas CT plant in renewable credits Enhance Leak detection (2) 2024 ….THROUGH CLEAR AND TRANSPARENT STEPS Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. See appendix for endnotes. See definitions for emission scopes on slide 85. As Texas is in an unregulated market, our Scope 2 estimates exclude Texas electric T&D assets in the line loss calculation and exclude emissions related to purchased power between ’24E-’26E. CenterPoint Energy Analyst Day – September 2021 25Integrating industry-leading Net Zero commitments ACCELERATE TO NET ZERO SCOPE 1 AND 2 EMISSIONS BY 2035…. ~60% ~40% Actions Underway Future Actions (1) 5.2MM Annual MT 2020 Actual Retire coal unit Culley 3 coal unit Retire coal units Culley 2 by 2025 to be addressed in the next IRP AB Brown 1&2 and Exit Warrick 4 coal unit by 2023 Net Zero (3) 2035 Coal retirements partially Offsets and Modernize Pipe and Fleet; offset by gas CT plant in renewable credits Enhance Leak detection (2) 2024 ….THROUGH CLEAR AND TRANSPARENT STEPS Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. See appendix for endnotes. See definitions for emission scopes on slide 85. As Texas is in an unregulated market, our Scope 2 estimates exclude Texas electric T&D assets in the line loss calculation and exclude emissions related to purchased power between ’24E-’26E. CenterPoint Energy Analyst Day – September 2021 25
Integrating industry-leading Net Zero commitments NET ZERO GOALS REQUIRES MINIMAL OFFSETS Potential Scenario 5.2 MM Only ~10 -15% of net-zero goal is achieved through offsets or credits Annual MT of CO 2 Offset mechanism % of 2035 Emission Balance ROW management and owned property ~30% Ex: native plantings, pollinator habitat, etc. ~85 - 90% of reduction is through active Forestry / Land Use measures ~50% Ex: managed pine forests in MS Examples of other credits (1) Energy Efficiency, Renewables ~20% ~10%-15% reduction through Alternative Fuels (Hydrogen & RNG) offsets 0 MM MT of CO 2 Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. See appendix for endnotes. See definitions for emission scopes on slide 85. As Texas is in an unregulated market, our Scope 2 estimates exclude Texas electric T&D assets in the line loss calculation and exclude emissions related to purchased power between ’24E-’26E. CenterPoint Energy Analyst Day – September 2021 26Integrating industry-leading Net Zero commitments NET ZERO GOALS REQUIRES MINIMAL OFFSETS Potential Scenario 5.2 MM Only ~10 -15% of net-zero goal is achieved through offsets or credits Annual MT of CO 2 Offset mechanism % of 2035 Emission Balance ROW management and owned property ~30% Ex: native plantings, pollinator habitat, etc. ~85 - 90% of reduction is through active Forestry / Land Use measures ~50% Ex: managed pine forests in MS Examples of other credits (1) Energy Efficiency, Renewables ~20% ~10%-15% reduction through Alternative Fuels (Hydrogen & RNG) offsets 0 MM MT of CO 2 Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. See appendix for endnotes. See definitions for emission scopes on slide 85. As Texas is in an unregulated market, our Scope 2 estimates exclude Texas electric T&D assets in the line loss calculation and exclude emissions related to purchased power between ’24E-’26E. CenterPoint Energy Analyst Day – September 2021 26
Integrating industry-leading Net Zero commitments ESTABLISHING INDUSTRY LEADING SCOPE 3 EMISSION REDUCTION BY 2035 (1) Currently Underway New Actions 20MM Annual MT 2021 Estimate 20%-30% reduction by 2035 Energy Efficiency Commercial High efficiency Hydrogen Pilots RNG Offsets New Technology CCS Pilots appliances Conservation 5-10% 20% Enhanced Hydrogen Improvement 1-5% Demand side Further Offsets management Programs 30% Weatherization 10% Smart Home Programs 25% 20% - 30% reduction (2) by 2035 ….PRIMARILY UTILIZING EXISTING TECHNOLOGY Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. Interim target reductions as measured against 2020. See appendix for endnotes. See definitions for emission scopes on slide 85. Our Scope 3 estimates exclude the emissions of transport customers and emissions related to upstream extraction. CenterPoint Energy Analyst Day – September 2021 27Integrating industry-leading Net Zero commitments ESTABLISHING INDUSTRY LEADING SCOPE 3 EMISSION REDUCTION BY 2035 (1) Currently Underway New Actions 20MM Annual MT 2021 Estimate 20%-30% reduction by 2035 Energy Efficiency Commercial High efficiency Hydrogen Pilots RNG Offsets New Technology CCS Pilots appliances Conservation 5-10% 20% Enhanced Hydrogen Improvement 1-5% Demand side Further Offsets management Programs 30% Weatherization 10% Smart Home Programs 25% 20% - 30% reduction (2) by 2035 ….PRIMARILY UTILIZING EXISTING TECHNOLOGY Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. Interim target reductions as measured against 2020. See appendix for endnotes. See definitions for emission scopes on slide 85. Our Scope 3 estimates exclude the emissions of transport customers and emissions related to upstream extraction. CenterPoint Energy Analyst Day – September 2021 27
Integrating industry-leading Net Zero commitments COMMITMENT TO GOVERNANCE AND EXECUTIVE ALIGNMENT ON ESG Board ESG Oversight Refreshed and Diversified Board Establishing Independent Governance Governance committee will Newly established 55% become Governance, Independent Chairman are women or minorities Environmental and Now 1 of 7 Sustainability Committee (1) Utilities in proxy peer group 66% with Independent Chair Environmental measures have been on the board 5 years to be included in or less 2022 compensation plan VP of environment and sustainability Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 28Integrating industry-leading Net Zero commitments COMMITMENT TO GOVERNANCE AND EXECUTIVE ALIGNMENT ON ESG Board ESG Oversight Refreshed and Diversified Board Establishing Independent Governance Governance committee will Newly established 55% become Governance, Independent Chairman are women or minorities Environmental and Now 1 of 7 Sustainability Committee (1) Utilities in proxy peer group 66% with Independent Chair Environmental measures have been on the board 5 years to be included in or less 2022 compensation plan VP of environment and sustainability Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 28
Integrating industry-leading Net Zero commitments ENHANCED ESG COMMITMENTS AND OUR ESG REPORTING…. What’s New Launched a dedicated ESG website to provide regular updates Enhanced engagements with ESG Ratings firms What’s Next Integrating emission reduction goals into executive compensation (2022) Progressing towards UN Sustainable Development Goal alignment as we develop a path for sustainable financing (2022) Implementing our Net Zero strategy will enable us to regularly report on our progress …. AS WE PROGRESS OUR ESG STORY Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 29Integrating industry-leading Net Zero commitments ENHANCED ESG COMMITMENTS AND OUR ESG REPORTING…. What’s New Launched a dedicated ESG website to provide regular updates Enhanced engagements with ESG Ratings firms What’s Next Integrating emission reduction goals into executive compensation (2022) Progressing towards UN Sustainable Development Goal alignment as we develop a path for sustainable financing (2022) Implementing our Net Zero strategy will enable us to regularly report on our progress …. AS WE PROGRESS OUR ESG STORY Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 29
Investing in our Electric business Investing in our Electric business Kenny Mercado EVP of Electric Utility CenterPoint Energy Analyst Day – September 2021 30Investing in our Electric business Investing in our Electric business Kenny Mercado EVP of Electric Utility CenterPoint Energy Analyst Day – September 2021 30
Investing in our Electric business PREMIUM JURISDICTIONS…. Houston Electric Value Proposition TX▪ ~2.6M Metered Customers ✓ Superior utility driven by $23B+ ▪ ~4,000+ mi of Transmission Line of sustainable capital investments through 2030 ▪ 55,000+ mi of Distribution Line ▪ ~1/4 of ERCOT Summer Peak load ▪ System Growth Houston Electric Company HQ ▪ System Reliability and Resiliency Indiana Electric ▪ Renewable Integration IN✓ Constructive regulatory mechanisms ▪ ~150k Metered Customers ▪ 1,000+ mi of Transmission Line ✓ Strong, consistent O&M discipline ▪ 7,000+ mi of Distribution Line ▪ ~1,300 MW of Generation Capacity ✓ Continued focus on safety and Indiana Electric reliability Indiana electric HQ ….WITH FOCUS ON GROWTH, RESILIENCY, AND RENEWABLES Note: Refer to slide 2 for information on forward-looking statements. Customer data as of June 30, 2021; Operational data as of December 31, 2020 CenterPoint Energy Analyst Day – September 2021 31Investing in our Electric business PREMIUM JURISDICTIONS…. Houston Electric Value Proposition TX▪ ~2.6M Metered Customers ✓ Superior utility driven by $23B+ ▪ ~4,000+ mi of Transmission Line of sustainable capital investments through 2030 ▪ 55,000+ mi of Distribution Line ▪ ~1/4 of ERCOT Summer Peak load ▪ System Growth Houston Electric Company HQ ▪ System Reliability and Resiliency Indiana Electric ▪ Renewable Integration IN✓ Constructive regulatory mechanisms ▪ ~150k Metered Customers ▪ 1,000+ mi of Transmission Line ✓ Strong, consistent O&M discipline ▪ 7,000+ mi of Distribution Line ▪ ~1,300 MW of Generation Capacity ✓ Continued focus on safety and Indiana Electric reliability Indiana electric HQ ….WITH FOCUS ON GROWTH, RESILIENCY, AND RENEWABLES Note: Refer to slide 2 for information on forward-looking statements. Customer data as of June 30, 2021; Operational data as of December 31, 2020 CenterPoint Energy Analyst Day – September 2021 31
Investing in our Electric business SUSTAINABLE CAPITAL INVESTMENTS Investments for Future State by 2030E 2021E-2030E: $23B+ of Capital Other ~$11 Billion 4% System Growth and Improvement Supported by 2%+ Annual Customer Growth (1) $8 Billion+ Renewables + 14% System Resiliency and Reliability Growth / To Modernize, Harden, and Upgrade existing system Customer Additions 47% $3 Billion+ Resiliency & (1) Reliability Clean Energy Investment and Enablement 35% Integrating our Net-Zero Transition and Preparing for accelerated EV adoption ~$1 Billion – Technology and Misc. ….DRIVING A DECADE OF GROWTH Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 32Investing in our Electric business SUSTAINABLE CAPITAL INVESTMENTS Investments for Future State by 2030E 2021E-2030E: $23B+ of Capital Other ~$11 Billion 4% System Growth and Improvement Supported by 2%+ Annual Customer Growth (1) $8 Billion+ Renewables + 14% System Resiliency and Reliability Growth / To Modernize, Harden, and Upgrade existing system Customer Additions 47% $3 Billion+ Resiliency & (1) Reliability Clean Energy Investment and Enablement 35% Integrating our Net-Zero Transition and Preparing for accelerated EV adoption ~$1 Billion – Technology and Misc. ….DRIVING A DECADE OF GROWTH Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 32
Investing in our Electric business ~$11B TO ENABLE GROWTH AND ECONOMIC DEVELOPMENT…. 2021E-2030E Capital Dedicated to Growth and Improvement Transmission Distribution 32 new / 90 upgraded ~230 MW substations for capacity by 2030 (1) annual throughput growth 4,500+ miles of new underground residential ~400 miles distribution lines by 2030 of new overhead transmission lines by 2030 2,000+ miles ~10% system growth of new overhead distribution lines by 2030 ~3% system growth ~600 miles ~400 miles of transmission capacity upgrades by 2030 Houston, TX of upgraded distribution lines by 2030 (2) ….AND SUPPORT ~2% ANNUAL CUSTOMER GROWTH Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. Photo by South Austin Gallery CenterPoint Energy Analyst Day – September 2021 33Investing in our Electric business ~$11B TO ENABLE GROWTH AND ECONOMIC DEVELOPMENT…. 2021E-2030E Capital Dedicated to Growth and Improvement Transmission Distribution 32 new / 90 upgraded ~230 MW substations for capacity by 2030 (1) annual throughput growth 4,500+ miles of new underground residential ~400 miles distribution lines by 2030 of new overhead transmission lines by 2030 2,000+ miles ~10% system growth of new overhead distribution lines by 2030 ~3% system growth ~600 miles ~400 miles of transmission capacity upgrades by 2030 Houston, TX of upgraded distribution lines by 2030 (2) ….AND SUPPORT ~2% ANNUAL CUSTOMER GROWTH Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. Photo by South Austin Gallery CenterPoint Energy Analyst Day – September 2021 33
Investing in our Electric business ~$8B+ TO INVEST IN RELIABILITY AND RESILIENCY OF OUR SYSTEM…. Upgrading T&D system to address Creating a smarter system to Executing on new tools enabled by extreme weather conditions improve reliability recent legislation 2.6 million 280 miles ~$1B transmission modernization and hardening capital opportunities advanced meter upgrades and expanding intelligent grid 500 MW 1,000 miles Enhanced status monitoring and management emergency backup generation capacity distribution modernization and hardening near customer delivery points Optimizing EMS to improve operational flexibility ~25 MW 120 during extreme events battery storage resiliency and reliability substation upgrades 3 transmission projects ~550 miles identified through economic test major underground modernization and hardening ….THROUGH HARDENING OF TRANSMISSION, SUBSTATION, AND DISTRIBUTION GRID Note: Refer to slide 2 for information on forward-looking statements. EMS – Energy Management System. CenterPoint Energy Analyst Day – September 2021 34Investing in our Electric business ~$8B+ TO INVEST IN RELIABILITY AND RESILIENCY OF OUR SYSTEM…. Upgrading T&D system to address Creating a smarter system to Executing on new tools enabled by extreme weather conditions improve reliability recent legislation 2.6 million 280 miles ~$1B transmission modernization and hardening capital opportunities advanced meter upgrades and expanding intelligent grid 500 MW 1,000 miles Enhanced status monitoring and management emergency backup generation capacity distribution modernization and hardening near customer delivery points Optimizing EMS to improve operational flexibility ~25 MW 120 during extreme events battery storage resiliency and reliability substation upgrades 3 transmission projects ~550 miles identified through economic test major underground modernization and hardening ….THROUGH HARDENING OF TRANSMISSION, SUBSTATION, AND DISTRIBUTION GRID Note: Refer to slide 2 for information on forward-looking statements. EMS – Energy Management System. CenterPoint Energy Analyst Day – September 2021 34
Investing in our Electric business ~$3B+ OF CAPITAL SUPPORTING CLEANER ENERGY DEMANDS…. Direct 2035 1.1 GW Future Renewable (1) Net Zero Target Renewable Generation Integrated Resource Plan Investments supported by renewable t a r g e t e d to be online by end of 2024 to to address remaining coal facility and Expanding renewable generation investments support customers’ energy needs further renewable opportunities in Indiana portfolio in Indiana Supporting $750M+ 12 25+ Renewables Investments Investments Utility-scale Solar Projects Storage Projects Connecting renewable related to interconnects for Currently under construction; currently evaluated for renewables over 10-year horizon expecting 10+ renewable projects in 2022 2022 and 2023 generation in Houston Long-term ~2M tons ~$80 ~125k Investment CO Emissions Additional Margin Home Equivalent 2 Opportunity (3) (2) avoided annually by electrifying p e r v e hicle per year due to load growth annual electric usage from Supporting EV across our Houston territory EVs by 2030 expansion in Houston ….DRIVE UTILITY INFRASTRUCTURE EXPANSION Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 35Investing in our Electric business ~$3B+ OF CAPITAL SUPPORTING CLEANER ENERGY DEMANDS…. Direct 2035 1.1 GW Future Renewable (1) Net Zero Target Renewable Generation Integrated Resource Plan Investments supported by renewable t a r g e t e d to be online by end of 2024 to to address remaining coal facility and Expanding renewable generation investments support customers’ energy needs further renewable opportunities in Indiana portfolio in Indiana Supporting $750M+ 12 25+ Renewables Investments Investments Utility-scale Solar Projects Storage Projects Connecting renewable related to interconnects for Currently under construction; currently evaluated for renewables over 10-year horizon expecting 10+ renewable projects in 2022 2022 and 2023 generation in Houston Long-term ~2M tons ~$80 ~125k Investment CO Emissions Additional Margin Home Equivalent 2 Opportunity (3) (2) avoided annually by electrifying p e r v e hicle per year due to load growth annual electric usage from Supporting EV across our Houston territory EVs by 2030 expansion in Houston ….DRIVE UTILITY INFRASTRUCTURE EXPANSION Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 35
Investing in our Electric business FOCUSED AND DISCIPLINED APPROACH TO OPERATIONAL EXCELLENCE… (2) Continuous Improvement and O&M Efficiency Examples O&M per Customer Actions Benefits $240 $235 p Testing and inspection efficiency $225 ▪ Continuous Improvement – $215 q 30%+ Truck rolls reduced for $205 Major Underground and (1) MUG maintenance Substation maintenance process q 60%+ Truck rolls reduced for (1) improvement substation maintenance 2021E 2022E 2023E 2024E 2025E ▪ Capital Investments –q Reduction in outage events Hardening and increased resiliency q Reduction in equipment st Consistent 1 quartile O&M per ▪ Continued Underground of T&D replacement (3) Customer performance System (Houston Electric) ….USING CONTINUOUS IMPROVEMENT TO ACHIEVE OPERATIONAL EFFICIENCIES Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 36Investing in our Electric business FOCUSED AND DISCIPLINED APPROACH TO OPERATIONAL EXCELLENCE… (2) Continuous Improvement and O&M Efficiency Examples O&M per Customer Actions Benefits $240 $235 p Testing and inspection efficiency $225 ▪ Continuous Improvement – $215 q 30%+ Truck rolls reduced for $205 Major Underground and (1) MUG maintenance Substation maintenance process q 60%+ Truck rolls reduced for (1) improvement substation maintenance 2021E 2022E 2023E 2024E 2025E ▪ Capital Investments –q Reduction in outage events Hardening and increased resiliency q Reduction in equipment st Consistent 1 quartile O&M per ▪ Continued Underground of T&D replacement (3) Customer performance System (Houston Electric) ….USING CONTINUOUS IMPROVEMENT TO ACHIEVE OPERATIONAL EFFICIENCIES Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 36
Investing in our Natural Gas business Investing in our Natural Gas business Scott Doyle EVP of Natural Gas CenterPoint Energy Analyst Day – September 2021 37Investing in our Natural Gas business Investing in our Natural Gas business Scott Doyle EVP of Natural Gas CenterPoint Energy Analyst Day – September 2021 37
Investing in our Natural Gas business PREMIUM JURISDICTIONS WITH RUNWAY FOR GROWTH…. Gas LDCs Value Proposition ✓ Stable Growth Driven by $16B+ IN OH of sustainable capital investments through 2030 MN ✓ Robust capital investments serving: (1) ▪ ~4.7mm Metered Customers ▪ Modern resiliency needs (2) ▪ 99,000+ mi of Distribution Mains (4) ▪ #1 Gas LDC by system miles (3) ▪ 65,000+ mi of Service Lines AR OK (4) ▪ #2 Gas LDC by customer count Northern Indiana Gas MS ✓ Reducing carbon intensity Southern Indiana Gas TX LA Oklahoma Gas ✓ Constructive regulatory mechanisms Louisiana Gas Minnesota Gas Ohio Gas ✓ Strong, consistent O&M discipline Arkansas Gas Texas Gas ✓ Continued focus on safety and reliability Mississippi Gas Company HQ ….RESILIENT, RELIABLE, AND SUSTAINABLE Note: Refer to slide 2 for information on forward-looking statements. Customer data as of July 31, 2021; Operational service data as of December 31, 2020 and main data as of August 24, 2021. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 38Investing in our Natural Gas business PREMIUM JURISDICTIONS WITH RUNWAY FOR GROWTH…. Gas LDCs Value Proposition ✓ Stable Growth Driven by $16B+ IN OH of sustainable capital investments through 2030 MN ✓ Robust capital investments serving: (1) ▪ ~4.7mm Metered Customers ▪ Modern resiliency needs (2) ▪ 99,000+ mi of Distribution Mains (4) ▪ #1 Gas LDC by system miles (3) ▪ 65,000+ mi of Service Lines AR OK (4) ▪ #2 Gas LDC by customer count Northern Indiana Gas MS ✓ Reducing carbon intensity Southern Indiana Gas TX LA Oklahoma Gas ✓ Constructive regulatory mechanisms Louisiana Gas Minnesota Gas Ohio Gas ✓ Strong, consistent O&M discipline Arkansas Gas Texas Gas ✓ Continued focus on safety and reliability Mississippi Gas Company HQ ….RESILIENT, RELIABLE, AND SUSTAINABLE Note: Refer to slide 2 for information on forward-looking statements. Customer data as of July 31, 2021; Operational service data as of December 31, 2020 and main data as of August 24, 2021. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 38
Investing in our Natural Gas business SUSTAINABLE CAPITAL INVESTMENT…. (1) Investments for Future State by 2030E 2021E-2030E Capital: $16B+ Peak Shaving and Smart Metering Renewable Supply Technology 2% $14 Billion+ 4% of System modernization / improvement Growth / 10,000+ miles of legacy steel / plastic pipe replacement Customer Additions 6% $1 Billion+ mains for new growth and customer additions $0.7 Billion System Modernization smart metering technology & Improvement 88% $0.3 Billion peak shaving and renewable supply ….DRIVES GROWTH FOR SHAREHOLDERS, CUSTOMERS, AND ENVIRONMENT Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 39Investing in our Natural Gas business SUSTAINABLE CAPITAL INVESTMENT…. (1) Investments for Future State by 2030E 2021E-2030E Capital: $16B+ Peak Shaving and Smart Metering Renewable Supply Technology 2% $14 Billion+ 4% of System modernization / improvement Growth / 10,000+ miles of legacy steel / plastic pipe replacement Customer Additions 6% $1 Billion+ mains for new growth and customer additions $0.7 Billion System Modernization smart metering technology & Improvement 88% $0.3 Billion peak shaving and renewable supply ….DRIVES GROWTH FOR SHAREHOLDERS, CUSTOMERS, AND ENVIRONMENT Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 39
Investing in our Natural Gas business $14B+ FOR RESILIENCY AND SYSTEM MODERNIZATION…. Pipe Modernization Plan 1,063 Miles: 1,045 576 Plan to Average Eliminate cast iron by 2024 & 960 bare steel by 2025 miles/year for Pipeline Methane replacement Emissions (thousand metric tons) ~33% reduction >13,500 626 534 Miles replaced next 15 361 years; <2% per year 2021 2025 2030 Cast Iron Known Bare Steel 2011 2020 2035E Unprotected Steel Legacy (Pre-50) Steel Unconfirmed Vintage Steel Pre-74 Plastic Pre-84 Plastic Unconfirmed Vintage Plastic ….DRIVES INVESTMENTS BEYOND A DECADE Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 40 (% of total)Investing in our Natural Gas business $14B+ FOR RESILIENCY AND SYSTEM MODERNIZATION…. Pipe Modernization Plan 1,063 Miles: 1,045 576 Plan to Average Eliminate cast iron by 2024 & 960 bare steel by 2025 miles/year for Pipeline Methane replacement Emissions (thousand metric tons) ~33% reduction >13,500 626 534 Miles replaced next 15 361 years; <2% per year 2021 2025 2030 Cast Iron Known Bare Steel 2011 2020 2035E Unprotected Steel Legacy (Pre-50) Steel Unconfirmed Vintage Steel Pre-74 Plastic Pre-84 Plastic Unconfirmed Vintage Plastic ….DRIVES INVESTMENTS BEYOND A DECADE Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 40 (% of total)
Investing in our Natural Gas business $1.7B+ OF CAPITAL FOR GROWTH AND IMPROVEMENTS…. 2021E-2030E Capital Investments Supporting Customer Growth 800+ #1 Pipeline miles/ year for growth (1) in customer count in MN (2) 1%+ growth in MN Investments in Intelis Meters #1 25% (1) in customer count in IN converted (2) 1%+ growth in IN by year end 2025 Replacement schedule through Minneapolis, MN #2 (1) 2031 in customer count in TX Highly Efficient Heating Source (3) 2% growth in Houston Improving reliability, safety, emissions and customer 95%+ efficiency in fuel conversion for home heating (4) experience (2) compared to 30% efficiency derived from fossil fuel generation 1%+ growth in S.TX corridor ….PROVIDING SAFE AND RELIABLE SERVICE FOR CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 41Investing in our Natural Gas business $1.7B+ OF CAPITAL FOR GROWTH AND IMPROVEMENTS…. 2021E-2030E Capital Investments Supporting Customer Growth 800+ #1 Pipeline miles/ year for growth (1) in customer count in MN (2) 1%+ growth in MN Investments in Intelis Meters #1 25% (1) in customer count in IN converted (2) 1%+ growth in IN by year end 2025 Replacement schedule through Minneapolis, MN #2 (1) 2031 in customer count in TX Highly Efficient Heating Source (3) 2% growth in Houston Improving reliability, safety, emissions and customer 95%+ efficiency in fuel conversion for home heating (4) experience (2) compared to 30% efficiency derived from fossil fuel generation 1%+ growth in S.TX corridor ….PROVIDING SAFE AND RELIABLE SERVICE FOR CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 41
Investing in our Natural Gas business SUPPORTING CLEANER ENERGY DEMANDS…. Driving a Cleaner Natural Gas System and Reducing Carbon Intensity H 2 Hydrogen Pilot (MN) Natural Gas Innovation Act (MN) ▪ 1MW Green Hydrogen pilot by 4Q 2021 ▪ Pathway for next generation fuels ▪ 2 projects under review ▪ Innovation Plan to be submitted 2022 ▪ System can accommodate 5-10% Hydrogen RNG (MN, IN, & TX) Fleet Electrification ▪ Feed in tariff (MN) ▪ Plan to electrify 100% of our light fleet (1) by 2030 ▪ 5+ projects under review ….ALIGNING CARBON REDUCTION STRATEGY WITH CAPITAL INVESTMENTS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. RNG – Renewable Natural Gas. CenterPoint Energy Analyst Day – September 2021 42Investing in our Natural Gas business SUPPORTING CLEANER ENERGY DEMANDS…. Driving a Cleaner Natural Gas System and Reducing Carbon Intensity H 2 Hydrogen Pilot (MN) Natural Gas Innovation Act (MN) ▪ 1MW Green Hydrogen pilot by 4Q 2021 ▪ Pathway for next generation fuels ▪ 2 projects under review ▪ Innovation Plan to be submitted 2022 ▪ System can accommodate 5-10% Hydrogen RNG (MN, IN, & TX) Fleet Electrification ▪ Feed in tariff (MN) ▪ Plan to electrify 100% of our light fleet (1) by 2030 ▪ 5+ projects under review ….ALIGNING CARBON REDUCTION STRATEGY WITH CAPITAL INVESTMENTS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. RNG – Renewable Natural Gas. CenterPoint Energy Analyst Day – September 2021 42
Investing in our Natural Gas business CONTINUOUS IMPROVEMENTS…. (2) Continuous Improvement Examples O&M per Customer Actions Benefits $160 $150 ▪ Align inspection q Reporting $145 $140 procedure with processing time $135 best practices (1) q 15%+ Truck rolls ▪ Standardize processes 2021E 2022E 2023E 2024E 2025E ▪ Enhance safety q Leak response feature time (Auto-shutoff) q Service disruption (3) ▪ Incorporate remote q 50-75% Truck st Consistent 1 quartile O&M per shutoff feature rolls (4) Customer performance ….REDUCE O&M AND BENEFIT CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 43 Intelis Meter Meter Testing Technology and InspectionInvesting in our Natural Gas business CONTINUOUS IMPROVEMENTS…. (2) Continuous Improvement Examples O&M per Customer Actions Benefits $160 $150 ▪ Align inspection q Reporting $145 $140 procedure with processing time $135 best practices (1) q 15%+ Truck rolls ▪ Standardize processes 2021E 2022E 2023E 2024E 2025E ▪ Enhance safety q Leak response feature time (Auto-shutoff) q Service disruption (3) ▪ Incorporate remote q 50-75% Truck st Consistent 1 quartile O&M per shutoff feature rolls (4) Customer performance ….REDUCE O&M AND BENEFIT CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 43 Intelis Meter Meter Testing Technology and Inspection
Delivering clean, resilient and affordable services for our customers Delivering Clean, Resilient and Affordable Services for our Customers Gregory Knight EVP of Customer Transformation and Business Services CenterPoint Energy Analyst Day – September 2021 44Delivering clean, resilient and affordable services for our customers Delivering Clean, Resilient and Affordable Services for our Customers Gregory Knight EVP of Customer Transformation and Business Services CenterPoint Energy Analyst Day – September 2021 44
Delivering clean, resilient & affordable services for our customers INVESTING FOR THE FUTURE…. A premium utility is critical to meet the evolving needs and aspirations of a thriving community. It’s willing to make the investment and be the enabler that drives the future. A future that is: ✓ Sustainable ✓ Resilient ✓ Equitable ✓ Affordable A Community Where People & Businesses Want To: ▪ Live ▪ Work ▪ Play ▪ Invest CenterPoint Energy Analyst Day – September 2021 45Delivering clean, resilient & affordable services for our customers INVESTING FOR THE FUTURE…. A premium utility is critical to meet the evolving needs and aspirations of a thriving community. It’s willing to make the investment and be the enabler that drives the future. A future that is: ✓ Sustainable ✓ Resilient ✓ Equitable ✓ Affordable A Community Where People & Businesses Want To: ▪ Live ▪ Work ▪ Play ▪ Invest CenterPoint Energy Analyst Day – September 2021 45
Delivering clean, resilient & affordable services for our customers MEETING THE EVOLVING NEEDS OF OUR CUSTOMERS & COMMUNITIES… Drive Sustainability Resilient Now Drive Affordability and Safety and Equitable Economic Growth with Innovation ▪ Supporting energy transition ▪ Digital transformation and automation ▪ Foundational Partnership ▪ Equitable economic development ▪ Developing first Energy Master Plan ▪ Creating a more agile workforce …. WITH SAFE, CLEAN, RESILIENT & AFFORDABLE ENERGY CenterPoint Energy Analyst Day – September 2021 46Delivering clean, resilient & affordable services for our customers MEETING THE EVOLVING NEEDS OF OUR CUSTOMERS & COMMUNITIES… Drive Sustainability Resilient Now Drive Affordability and Safety and Equitable Economic Growth with Innovation ▪ Supporting energy transition ▪ Digital transformation and automation ▪ Foundational Partnership ▪ Equitable economic development ▪ Developing first Energy Master Plan ▪ Creating a more agile workforce …. WITH SAFE, CLEAN, RESILIENT & AFFORDABLE ENERGY CenterPoint Energy Analyst Day – September 2021 46
Delivering clean, resilient & affordable services for our customers CUSTOMERS EXPECT CENTERPOINT ENERGY TO LEAD… Green Fuels Renewables Gas Conservation Electric Vehicles (1) Target Innovation plan >1GW by 2024 3500% anticipated Programs in 2022 growth in adoption $19.5M customer bill st 1 Hydrogen pilot in 2021 by 2030 savings in 2020 (2) in Houston H 2 (3) OVER 7 MILLION CUSTOMERS ACROSS OUR FOOTPRINT …. IN THE TRANSITION TO CLEAN ENERGY SOLUTIONS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 47Delivering clean, resilient & affordable services for our customers CUSTOMERS EXPECT CENTERPOINT ENERGY TO LEAD… Green Fuels Renewables Gas Conservation Electric Vehicles (1) Target Innovation plan >1GW by 2024 3500% anticipated Programs in 2022 growth in adoption $19.5M customer bill st 1 Hydrogen pilot in 2021 by 2030 savings in 2020 (2) in Houston H 2 (3) OVER 7 MILLION CUSTOMERS ACROSS OUR FOOTPRINT …. IN THE TRANSITION TO CLEAN ENERGY SOLUTIONS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 47
Delivering clean, resilient & affordable services for our customers COLLABORATING FOR THE FUTURE: METRO – 100% ZERO EMISSION BUS PROCUREMENT BY 2030 CenterPoint Energy is developing a targeted 10-year energy and infrastructure plan in support of METRO’s 2030 goal ▪ Established one of the strongest commitments to electrification in the nation, anticipated to result in 120 MW load ▪ Currently over 1,250 buses, expected to grow to 1,500 by 2030 (1) ▪ 1/3 of all Downtown employees rely on METRO daily (1) ▪ Over 110 million rides annually (1) ▪ Serving over 1,303 square miles “The future success of METRO and Houston’s transition to a sustainable and resilient future is dependent upon CenterPoint Energy’s partnership.” Tom Jasien, METRO Deputy Chief Executive Officer Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 48Delivering clean, resilient & affordable services for our customers COLLABORATING FOR THE FUTURE: METRO – 100% ZERO EMISSION BUS PROCUREMENT BY 2030 CenterPoint Energy is developing a targeted 10-year energy and infrastructure plan in support of METRO’s 2030 goal ▪ Established one of the strongest commitments to electrification in the nation, anticipated to result in 120 MW load ▪ Currently over 1,250 buses, expected to grow to 1,500 by 2030 (1) ▪ 1/3 of all Downtown employees rely on METRO daily (1) ▪ Over 110 million rides annually (1) ▪ Serving over 1,303 square miles “The future success of METRO and Houston’s transition to a sustainable and resilient future is dependent upon CenterPoint Energy’s partnership.” Tom Jasien, METRO Deputy Chief Executive Officer Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 48
Delivering clean, resilient & affordable services for our customers COLLABORATING FOR THE FUTURE: MINNESOTA AND INDIANA Fortune 500 Global Manufacturer Largest university system in Minnesota Headquartered in Evansville, IN Carbon neutrality by 2050 25% by 2025 (2) attained through multiyear project to install Goal to reduce Greenhouse Gas emission high-efficiency equipment 1.1 GW renewable generation ~$5.4 million or 1 million Dth aligns with commercial customers sustainability goals (1) saved in natural gas cost annually in the region 8,900 cars removed equivalent Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 49Delivering clean, resilient & affordable services for our customers COLLABORATING FOR THE FUTURE: MINNESOTA AND INDIANA Fortune 500 Global Manufacturer Largest university system in Minnesota Headquartered in Evansville, IN Carbon neutrality by 2050 25% by 2025 (2) attained through multiyear project to install Goal to reduce Greenhouse Gas emission high-efficiency equipment 1.1 GW renewable generation ~$5.4 million or 1 million Dth aligns with commercial customers sustainability goals (1) saved in natural gas cost annually in the region 8,900 cars removed equivalent Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 49
Delivering clean & resilient services for our customers BUILDING FOR THE FUTURE CenterPoint Energy Analyst Day – September 2021 50Delivering clean & resilient services for our customers BUILDING FOR THE FUTURE CenterPoint Energy Analyst Day – September 2021 50
Serving constructive regulatory jurisdictions Serving Constructive Regulatory Jurisdictions Jason Ryan SVP of Regulatory Services and Government Affairs CenterPoint Energy Analyst Day – September 2021 51Serving constructive regulatory jurisdictions Serving Constructive Regulatory Jurisdictions Jason Ryan SVP of Regulatory Services and Government Affairs CenterPoint Energy Analyst Day – September 2021 51
Serving constructive regulatory jurisdictions COMMITMENT TO PROVIDING AFFORDABLE ELECTRIC SERVICE…. Historic rates have remained affordable… …and we believe future rates will too 5 Year Average TX Historical (1) Bill Mitigants Electric Bill Change 2.2% 0.9% ▪ Transition Bond II and III Customer ended in 2019 Growth 1-2% annual Rates ▪ Expiration of AMS meter Structural customer (Based deployment surcharge Headroom growth on new (4.0%) CEHE’s O&M EV-driven capital Securitization Discipline load growth CNP TX Inflation plan) (2) bonds ending 1-2% O&M Electric Effective (3) ~8% reduction of reduction Utility Rates vol. charge per year Peers Houston Electric rate growth has been below peer average over last 5 years ….EXECUTING $40B+ CAPITAL PLAN WITH MINIMAL CUSTOMER IMPACT Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 52Serving constructive regulatory jurisdictions COMMITMENT TO PROVIDING AFFORDABLE ELECTRIC SERVICE…. Historic rates have remained affordable… …and we believe future rates will too 5 Year Average TX Historical (1) Bill Mitigants Electric Bill Change 2.2% 0.9% ▪ Transition Bond II and III Customer ended in 2019 Growth 1-2% annual Rates ▪ Expiration of AMS meter Structural customer (Based deployment surcharge Headroom growth on new (4.0%) CEHE’s O&M EV-driven capital Securitization Discipline load growth CNP TX Inflation plan) (2) bonds ending 1-2% O&M Electric Effective (3) ~8% reduction of reduction Utility Rates vol. charge per year Peers Houston Electric rate growth has been below peer average over last 5 years ….EXECUTING $40B+ CAPITAL PLAN WITH MINIMAL CUSTOMER IMPACT Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 52
Serving constructive regulatory jurisdictions COMMITMENT TO PROVIDING AFFORDABLE NATURAL GAS SERVICE…. Historically ……and we believe future rates will be too affordable rates … Average Historic Impact of (1) Natural Gas Price Monthly Gas $73.9 ▪ 50% hedged supply in 2021 Customer $40.9 Rates Growth ▪ Forward price projected (Based lower; Mid $3-range by 1-2% annual on new (3) customer mid-2022 O&M capital growth Discipline plan) 1-2% O&M Effective (4) reduction Rates (2) 2009 2014 2019 2021 per year TX MN Average Gas bills have remained affordable ….EXECUTING $40B+ CAPITAL PLAN WITH MINIMAL CUSTOMER IMPACT Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 53Serving constructive regulatory jurisdictions COMMITMENT TO PROVIDING AFFORDABLE NATURAL GAS SERVICE…. Historically ……and we believe future rates will be too affordable rates … Average Historic Impact of (1) Natural Gas Price Monthly Gas $73.9 ▪ 50% hedged supply in 2021 Customer $40.9 Rates Growth ▪ Forward price projected (Based lower; Mid $3-range by 1-2% annual on new (3) customer mid-2022 O&M capital growth Discipline plan) 1-2% O&M Effective (4) reduction Rates (2) 2009 2014 2019 2021 per year TX MN Average Gas bills have remained affordable ….EXECUTING $40B+ CAPITAL PLAN WITH MINIMAL CUSTOMER IMPACT Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 53
Serving constructive regulatory jurisdictions CONSTRUCTIVE SOLUTIONS…. ~80% Regulatory Highlights Stakeholder Benefits (1) of 10-year Capital plan recoverable through interim mechanisms Existing Mechanisms Traditional Reasonable cost recovery Rate case rate case for timely recovery of minimizes customer impact with forward ~5% and earnings volatility major storm costs test year ~10% Interim mechanisms New Winter storm cost Reasonable cost recovery with CPCN (2) recovery initiated in all minimizes customer impact required impacted states and earnings volatility ~5% Interim (3) (2) Mechanisms Generation transition ~80% Clean energy transition proceedings in Indiana good for communities on plan ….FOR OUR CUSTOMERS AND INVESTORS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 54Serving constructive regulatory jurisdictions CONSTRUCTIVE SOLUTIONS…. ~80% Regulatory Highlights Stakeholder Benefits (1) of 10-year Capital plan recoverable through interim mechanisms Existing Mechanisms Traditional Reasonable cost recovery Rate case rate case for timely recovery of minimizes customer impact with forward ~5% and earnings volatility major storm costs test year ~10% Interim mechanisms New Winter storm cost Reasonable cost recovery with CPCN (2) recovery initiated in all minimizes customer impact required impacted states and earnings volatility ~5% Interim (3) (2) Mechanisms Generation transition ~80% Clean energy transition proceedings in Indiana good for communities on plan ….FOR OUR CUSTOMERS AND INVESTORS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 54
Serving constructive regulatory jurisdictions INNOVATIVE POLICY FOR RESILIENT AND CLEAN SERVICES…. Legislative Highlights Supporting Pillars of ESG Gas Jurisdictions Texas Indiana Minnesota (Except MN) Use of emergency generation Procurement of long lead-time items for widespread outages Securitization of unrecovered Natural Gas Innovation Act Law prohibiting natural gas rate base related to transition facilitates developments of bans by municipalities and Use of battery storage from coal clean energy resources such local governments New transmission as renewable natural gas through economic (RNG), hydrogen, and carbon justification capture to benefit our customers “S”ocial benefit “E”nvironmental benefit “E”nvironmental benefit “S”ocial benefit ….SUPPORTS A SUSTAINABLE $40B+ 10-YEAR CAPITAL PLAN Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 55Serving constructive regulatory jurisdictions INNOVATIVE POLICY FOR RESILIENT AND CLEAN SERVICES…. Legislative Highlights Supporting Pillars of ESG Gas Jurisdictions Texas Indiana Minnesota (Except MN) Use of emergency generation Procurement of long lead-time items for widespread outages Securitization of unrecovered Natural Gas Innovation Act Law prohibiting natural gas rate base related to transition facilitates developments of bans by municipalities and Use of battery storage from coal clean energy resources such local governments New transmission as renewable natural gas through economic (RNG), hydrogen, and carbon justification capture to benefit our customers “S”ocial benefit “E”nvironmental benefit “E”nvironmental benefit “S”ocial benefit ….SUPPORTS A SUSTAINABLE $40B+ 10-YEAR CAPITAL PLAN Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 55
Sustainable financial growth Sustainable Financial Growth Jason Wells Executive Vice President and Chief Financial Officer CenterPoint Energy Analyst Day – September 2021 56Sustainable financial growth Sustainable Financial Growth Jason Wells Executive Vice President and Chief Financial Officer CenterPoint Energy Analyst Day – September 2021 56
Sustainable financial growth SUSTAINABLE FINANCIAL GOALS…. Earnings per Share Efficient Financing Reaffirming 2021E Utility EPS Guidance: ✓ Utilizing $3B+ of expected after-tax proceeds $1.25 - $1.27 (1) to fund growth and paydown debt Establishing 2022E Utility EPS Guidance: ✓ Eliminating planned external equity issuance $1.35 - $1.37 through 2030 Targeting 8% Utility EPS annual growth ✓ Maintaining targeted Long term FFO/Debt through 2024 (2) of 14% - 15% through 2030 Targeting 6% - 8% Utility EPS annual growth through 2030 Targeting Dividend growth in line with Utility EPS growth ….TO DELIVER 10-YEAR $40B+ CAPITAL INVESTMENT PLAN Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS, Long term FFO/Debt and their assumptions. Includes the effect of AR/OK LDCs disposition expected to be completed by end of 2021. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 57Sustainable financial growth SUSTAINABLE FINANCIAL GOALS…. Earnings per Share Efficient Financing Reaffirming 2021E Utility EPS Guidance: ✓ Utilizing $3B+ of expected after-tax proceeds $1.25 - $1.27 (1) to fund growth and paydown debt Establishing 2022E Utility EPS Guidance: ✓ Eliminating planned external equity issuance $1.35 - $1.37 through 2030 Targeting 8% Utility EPS annual growth ✓ Maintaining targeted Long term FFO/Debt through 2024 (2) of 14% - 15% through 2030 Targeting 6% - 8% Utility EPS annual growth through 2030 Targeting Dividend growth in line with Utility EPS growth ….TO DELIVER 10-YEAR $40B+ CAPITAL INVESTMENT PLAN Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS, Long term FFO/Debt and their assumptions. Includes the effect of AR/OK LDCs disposition expected to be completed by end of 2021. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 57
Sustainable financial growth (1) COMMITTED TO FULLY EXITING MIDSTREAM …. 50 million >40% End of 2022 monetization Contingent forward sale Target exit of midstream Anticipated by end of 2021 of Energy Transfer Moving to purely including ~$370M of Energy common units regulated utility Transfer preferred units 25% of CNP’s ownership in Energy Transfer common units ….MOVING TO A PURELY REGULATED UTILITY BY 2022 Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes CenterPoint Energy Analyst Day – September 2021 58Sustainable financial growth (1) COMMITTED TO FULLY EXITING MIDSTREAM …. 50 million >40% End of 2022 monetization Contingent forward sale Target exit of midstream Anticipated by end of 2021 of Energy Transfer Moving to purely including ~$370M of Energy common units regulated utility Transfer preferred units 25% of CNP’s ownership in Energy Transfer common units ….MOVING TO A PURELY REGULATED UTILITY BY 2022 Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes CenterPoint Energy Analyst Day – September 2021 58
Sustainable financial growth $40+ BILLION OF SUSTAINABLE CAPITAL INVESTMENTS…. $ in billions ~$18+ Billion 5-Yr Capital Plan ~$22 Billion Capital Recovery ~$4.7 ~$3.8 $16B+ ~$3.7 $1.9 ~$3.5 10-year ~$3.2 ~$9 billion Gas $1.4 $1.4 Capital $1.4 $1.5 ~80% of 10-year Capital plan $23B+ recoverable through interim (1) $2.8 10-year mechanisms ~$13 billion $2.4 $2.3 Electric $2.1 $1.7 Capital 2021E 2022E 2023E 2024E 2025E 2026E – 2030E Gas Electric ….TO PROVIDE SAFE, RESILIENT, AFFORDABLE, AND CLEAN SERVICES FOR OUR CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. Includes the effect of AR and OK gas LDCs dispositions expected to be completed by 2022. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 59Sustainable financial growth $40+ BILLION OF SUSTAINABLE CAPITAL INVESTMENTS…. $ in billions ~$18+ Billion 5-Yr Capital Plan ~$22 Billion Capital Recovery ~$4.7 ~$3.8 $16B+ ~$3.7 $1.9 ~$3.5 10-year ~$3.2 ~$9 billion Gas $1.4 $1.4 Capital $1.4 $1.5 ~80% of 10-year Capital plan $23B+ recoverable through interim (1) $2.8 10-year mechanisms ~$13 billion $2.4 $2.3 Electric $2.1 $1.7 Capital 2021E 2022E 2023E 2024E 2025E 2026E – 2030E Gas Electric ….TO PROVIDE SAFE, RESILIENT, AFFORDABLE, AND CLEAN SERVICES FOR OUR CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. Includes the effect of AR and OK gas LDCs dispositions expected to be completed by 2022. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 59
Sustainable financial growth EFFICIENTLY FUNDING INDUSTRY-LEADING GROWTH…. No Planned External Equity Issuance Needed through 2030 Funding Incremental Capital Funding Capital 2021E – 2025E 2026E – 2030E ~$2.3B ~$22B ~$0.3B Parent Debt Eliminated Incremental Gas LDC Proceeds ~$0.3B In line with ~20% parent to total debt ATM (1) ~$0.5B Midstream Exit and Other Regulatory Debt In line with authorized capital structure New Cash Flow Opportunities ~$0.5B ▪ Cash savings from repairs tax ▪ Indiana coal securitization ~$2B + ~$1.0B Operating Cash Flows Regulatory Debt Not contingent on incremental strategic opportunities Uses Sources Uses Sources ….FOR THE BENEFIT OF OUR SHAREHOLDERS AND CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 60Sustainable financial growth EFFICIENTLY FUNDING INDUSTRY-LEADING GROWTH…. No Planned External Equity Issuance Needed through 2030 Funding Incremental Capital Funding Capital 2021E – 2025E 2026E – 2030E ~$2.3B ~$22B ~$0.3B Parent Debt Eliminated Incremental Gas LDC Proceeds ~$0.3B In line with ~20% parent to total debt ATM (1) ~$0.5B Midstream Exit and Other Regulatory Debt In line with authorized capital structure New Cash Flow Opportunities ~$0.5B ▪ Cash savings from repairs tax ▪ Indiana coal securitization ~$2B + ~$1.0B Operating Cash Flows Regulatory Debt Not contingent on incremental strategic opportunities Uses Sources Uses Sources ….FOR THE BENEFIT OF OUR SHAREHOLDERS AND CUSTOMERS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 60
Sustainable financial growth 2021E-2030E RATE BASE GROWTH…. $ in billions (1) ~9% Rate Base CAGR over 10-Year Plan Rate Base projection $37B+ Rate Base by 2030 2021E 42% $27.3 ~$15BE $25.4 58% by 2030 $22.6 $10.5 $19.7 $9.6 $18.5 $8.4 2030E $7.4 $7.8 40% $16.8 ~$22BE $15.8 60% $14.1 $12.3 $10.8 by 2030 2021E 2022E 2023E 2024E 2025E Electric Natural Gas ....DELIVERING SUSTAINABLE INDUSTRY-LEADING GROWTH Note: Refer to slide 2 for information on forward-looking statements. Includes the effect of AR and OK gas LDCs dispositions expected to be completed by 2022. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 61Sustainable financial growth 2021E-2030E RATE BASE GROWTH…. $ in billions (1) ~9% Rate Base CAGR over 10-Year Plan Rate Base projection $37B+ Rate Base by 2030 2021E 42% $27.3 ~$15BE $25.4 58% by 2030 $22.6 $10.5 $19.7 $9.6 $18.5 $8.4 2030E $7.4 $7.8 40% $16.8 ~$22BE $15.8 60% $14.1 $12.3 $10.8 by 2030 2021E 2022E 2023E 2024E 2025E Electric Natural Gas ....DELIVERING SUSTAINABLE INDUSTRY-LEADING GROWTH Note: Refer to slide 2 for information on forward-looking statements. Includes the effect of AR and OK gas LDCs dispositions expected to be completed by 2022. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 61
Sustainable financial growth INITIATING 2022E UTILITY EARNINGS GUIDANCE…. $0.02 – $0.03 $0.03 – $0.04 $0.07 – $0.08 $0.02 ▪ 2021E: Baseline Utility EPS of $1.25 - $1.27 ▪ 2022E: Initiating Utility EPS of $1.35 - $1.37 $1.25 - $1.27 $1.35 - $1.37 ▪ 8% Utility EPS annual growth through 2024E ▪ 6% - 8% Utility EPS annual growth through 2030E (4) FY 2021 non-GAAP Net growth and rate One-time items O&M reductions Sale of AR&OK gas FY 2022 non-GAAP (3) (2) in 2021 Utility EPS relief LDCs Utility EPS ….ACHIEVABLE AND SUSTAINABLE Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 62Sustainable financial growth INITIATING 2022E UTILITY EARNINGS GUIDANCE…. $0.02 – $0.03 $0.03 – $0.04 $0.07 – $0.08 $0.02 ▪ 2021E: Baseline Utility EPS of $1.25 - $1.27 ▪ 2022E: Initiating Utility EPS of $1.35 - $1.37 $1.25 - $1.27 $1.35 - $1.37 ▪ 8% Utility EPS annual growth through 2024E ▪ 6% - 8% Utility EPS annual growth through 2030E (4) FY 2021 non-GAAP Net growth and rate One-time items O&M reductions Sale of AR&OK gas FY 2022 non-GAAP (3) (2) in 2021 Utility EPS relief LDCs Utility EPS ….ACHIEVABLE AND SUSTAINABLE Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 62
Sustainable financial growth A PREMIUM DIVIDEND GROWTH STORY… 6%-8% 6%-8% 8% 5%-7% 5%-7% 5%-7% 5%-7% Peer leading 8% Dividend per share growth target through 2024E 6-8% through 2030E (1) Premium Utility Peers CenterPoint ….DRIVING COMPELLING TOTAL RETURNS FOR SHAREHOLDERS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 63Sustainable financial growth A PREMIUM DIVIDEND GROWTH STORY… 6%-8% 6%-8% 8% 5%-7% 5%-7% 5%-7% 5%-7% Peer leading 8% Dividend per share growth target through 2024E 6-8% through 2030E (1) Premium Utility Peers CenterPoint ….DRIVING COMPELLING TOTAL RETURNS FOR SHAREHOLDERS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 63
Sustainable financial growth UPDATED FINANCIAL PLAN…. 2020 Analyst Day 2021 Analyst Day forecast forecast $16B+ $18B+ +$2B 5-year Capital Plan 5-year Capital Plan ~$25B ~$27B +$2B 2025E Rate Base 2025E Rate Base (1) $0.52 - $0.55 $0.40 (at 6%) +$0.12 to +$0.15 2020 - 2025E Utility EPS Growth 2020 - 2025E Utility EPS Growth ….A MARKED IMPROVEMENT Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 64Sustainable financial growth UPDATED FINANCIAL PLAN…. 2020 Analyst Day 2021 Analyst Day forecast forecast $16B+ $18B+ +$2B 5-year Capital Plan 5-year Capital Plan ~$25B ~$27B +$2B 2025E Rate Base 2025E Rate Base (1) $0.52 - $0.55 $0.40 (at 6%) +$0.12 to +$0.15 2020 - 2025E Utility EPS Growth 2020 - 2025E Utility EPS Growth ….A MARKED IMPROVEMENT Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Utility EPS assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 64
Closing – Key takeaways Closing – Key Takeaways Dave Lesar President and Chief Executive Officer CenterPoint Energy Analyst Day – September 2021 65Closing – Key takeaways Closing – Key Takeaways Dave Lesar President and Chief Executive Officer CenterPoint Energy Analyst Day – September 2021 65
Closing – Key takeaways ESTABLISHING A PATH TOWARDS PREMIUM…. Through Sustainable Growth Sustainable, resilient, Sustainable Positive and Sustainable Growth for Impact on our affordable service Shareholders Environment for Customers ….FOR ALL STAKEHOLDERS Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 66Closing – Key takeaways ESTABLISHING A PATH TOWARDS PREMIUM…. Through Sustainable Growth Sustainable, resilient, Sustainable Positive and Sustainable Growth for Impact on our affordable service Shareholders Environment for Customers ….FOR ALL STAKEHOLDERS Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 66
Closing – Key takeaways OUR NEW PREMIUM VALUE PROPOSITION Delivering industry-leading Utility EPS growth of 8% annually through 2024 and (1) 6-8% annually through 2030 ; targeting Dividend growth in line with Utility EPS growth Increasing 5-year Capital plan to $18B+, and introducing 10-year Capital plan of $40B+, with more potential well beyond our 10-year horizon Utilizing >$3B in proceeds; No external equity issuance planned through 2030 (2) Executed contingent forward sale of Energy Transfer common units ; plan to accelerate future midstream exit Industry-leading Net Zero direct emissions by 2035 target; nearly 15 years ahead of (3) peer average (4) Maintaining balance sheet health; long term FFO/Debt target of 14%-15% through 2030 (5) (6) Keeping rates affordable through maintained O&M discipline and customer growth Becoming a Pure-play Regulated Utility with a consistent track record of delivery Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer and information on non-GAAP measures, including Utility EPS and long term FFO/Debt related assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 67Closing – Key takeaways OUR NEW PREMIUM VALUE PROPOSITION Delivering industry-leading Utility EPS growth of 8% annually through 2024 and (1) 6-8% annually through 2030 ; targeting Dividend growth in line with Utility EPS growth Increasing 5-year Capital plan to $18B+, and introducing 10-year Capital plan of $40B+, with more potential well beyond our 10-year horizon Utilizing >$3B in proceeds; No external equity issuance planned through 2030 (2) Executed contingent forward sale of Energy Transfer common units ; plan to accelerate future midstream exit Industry-leading Net Zero direct emissions by 2035 target; nearly 15 years ahead of (3) peer average (4) Maintaining balance sheet health; long term FFO/Debt target of 14%-15% through 2030 (5) (6) Keeping rates affordable through maintained O&M discipline and customer growth Becoming a Pure-play Regulated Utility with a consistent track record of delivery Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer and information on non-GAAP measures, including Utility EPS and long term FFO/Debt related assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 67
Appendix Additional Materials CenterPoint Energy Analyst Day – September 2021 68Appendix Additional Materials CenterPoint Energy Analyst Day – September 2021 68
Appendix 2021 BASE MODELING DRIVERS (1) Asset Map Elec. Utility / Jurisdiction Rate Base 2021E Equity Content Allowed ROE A Minnesota Gas CEHE ~$8,700 42.5% 9.40% Ohio Gas (3) (3) (2) B SIGECO Electric ~$2,050 43.5% 10.40% ND Arkansas Gas Texas Gas MI MN (1) Gas Utility / Jurisdiction Rate Base 2021E Equity Content Allowed ROE Mississippi Gas Houston Electric D (4) (4) C Texas Gas ~$1,650 55.6% 9.69% SD WI Company HQ MI (5) (5) D Minnesota Gas ~$1,560 - - North Indiana Gas IA Southern Indiana Gas & Electric (2) (6) (6) E N. Indiana Gas ~$1,560 47.7% 10.20% NE IN Oklahoma Gas OH (5) (5) IL Louisiana Gas F Ohio Gas ~$1,020 - - E F Power generation WV (2) (6) (6) B SIGECO Gas ~$450 47.0% 10.15% KS MO KY VA G Louisiana Gas ~$270 52.0% 9.95% B AR TN OK NC H Mississippi Gas ~$200 50.0% 9.29% J I (2) SC I Arkansas Gas ~$940 32.4% 9.50% AL MS GA G J Oklahoma Gas ~$95 55.0% 10.00% TX LA C H Allowed Return on Equity ~$800M FL A (7) Net Regulatory Lag ~$(25M) Regulatory Net Income ~$775M Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 69Appendix 2021 BASE MODELING DRIVERS (1) Asset Map Elec. Utility / Jurisdiction Rate Base 2021E Equity Content Allowed ROE A Minnesota Gas CEHE ~$8,700 42.5% 9.40% Ohio Gas (3) (3) (2) B SIGECO Electric ~$2,050 43.5% 10.40% ND Arkansas Gas Texas Gas MI MN (1) Gas Utility / Jurisdiction Rate Base 2021E Equity Content Allowed ROE Mississippi Gas Houston Electric D (4) (4) C Texas Gas ~$1,650 55.6% 9.69% SD WI Company HQ MI (5) (5) D Minnesota Gas ~$1,560 - - North Indiana Gas IA Southern Indiana Gas & Electric (2) (6) (6) E N. Indiana Gas ~$1,560 47.7% 10.20% NE IN Oklahoma Gas OH (5) (5) IL Louisiana Gas F Ohio Gas ~$1,020 - - E F Power generation WV (2) (6) (6) B SIGECO Gas ~$450 47.0% 10.15% KS MO KY VA G Louisiana Gas ~$270 52.0% 9.95% B AR TN OK NC H Mississippi Gas ~$200 50.0% 9.29% J I (2) SC I Arkansas Gas ~$940 32.4% 9.50% AL MS GA G J Oklahoma Gas ~$95 55.0% 10.00% TX LA C H Allowed Return on Equity ~$800M FL A (7) Net Regulatory Lag ~$(25M) Regulatory Net Income ~$775M Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 69
Appendix 2021 BASE MODELING DRIVERS (Cont.) Regulatory Net Income ~$775M (1) Other utility-related income ~$35M (2) Income from non-core businesses ~$25M Equity return on securitization bonds ~$30M (3) (4) Corporate allocations ~$(100M) Non-GAAP Net Income from Utility Operations ~$770M 2021 Average Diluted Shares Outstanding 608M 2021E Non-GAAP Utility EPS $1.25 - $1.27 Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Net Income from Utility Operations and related assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 70Appendix 2021 BASE MODELING DRIVERS (Cont.) Regulatory Net Income ~$775M (1) Other utility-related income ~$35M (2) Income from non-core businesses ~$25M Equity return on securitization bonds ~$30M (3) (4) Corporate allocations ~$(100M) Non-GAAP Net Income from Utility Operations ~$770M 2021 Average Diluted Shares Outstanding 608M 2021E Non-GAAP Utility EPS $1.25 - $1.27 Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Net Income from Utility Operations and related assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 70
Appendix 2022 BASE MODELING DRIVERS (1) Asset Map Elec. Utility / Jurisdiction Rate Base 2022E Equity Content Allowed ROE (2) Minnesota Gas A CEHE ~$9,800 42.5% 9.40% Ohio Gas (4) (3) B SIGECO Electric ~$2,500 43.5% 10.40% ND Texas Gas Mississippi Gas MI MN (1) Gas Utility / Jurisdiction Rate Base 2022E Equity Content Allowed ROE North Indiana Gas D (5) (5) Southern Indiana Gas & Electric C Texas Gas ~$1,850 55.6% 9.69% SD WI MI Louisiana Gas (6) (6) D Minnesota Gas ~$1,750 - - Power generation IA (3) (7) (7) Houston Electric E N. Indiana Gas ~$1,650 46.2% 9.80% NE IN Company HQ OH (6) (6) IL F Ohio Gas ~$1,140 - - E F WV (3) (7) (7) B SIGECO Gas ~$490 45.7% 9.70% KS MO KY VA G Louisiana Gas ~$300 52.0% 9.95% B AR TN OK NC H Mississippi Gas ~$240 50.0% 9.29% SC Allowed Return on Equity ~$863M AL MS GA G (8) TX LA C H Net Regulatory Lag ~$(38M) Regulatory Net Income ~$825M FL A Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 71Appendix 2022 BASE MODELING DRIVERS (1) Asset Map Elec. Utility / Jurisdiction Rate Base 2022E Equity Content Allowed ROE (2) Minnesota Gas A CEHE ~$9,800 42.5% 9.40% Ohio Gas (4) (3) B SIGECO Electric ~$2,500 43.5% 10.40% ND Texas Gas Mississippi Gas MI MN (1) Gas Utility / Jurisdiction Rate Base 2022E Equity Content Allowed ROE North Indiana Gas D (5) (5) Southern Indiana Gas & Electric C Texas Gas ~$1,850 55.6% 9.69% SD WI MI Louisiana Gas (6) (6) D Minnesota Gas ~$1,750 - - Power generation IA (3) (7) (7) Houston Electric E N. Indiana Gas ~$1,650 46.2% 9.80% NE IN Company HQ OH (6) (6) IL F Ohio Gas ~$1,140 - - E F WV (3) (7) (7) B SIGECO Gas ~$490 45.7% 9.70% KS MO KY VA G Louisiana Gas ~$300 52.0% 9.95% B AR TN OK NC H Mississippi Gas ~$240 50.0% 9.29% SC Allowed Return on Equity ~$863M AL MS GA G (8) TX LA C H Net Regulatory Lag ~$(38M) Regulatory Net Income ~$825M FL A Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 71
Appendix 2022 BASE MODELING DRIVERS (Cont.) Regulatory Net Income ~$825M (1) Other utility-related income ~$50M (2) Income from non-core businesses ~$35M Equity return on securitization bonds ~$30M (3) (4) Corporate allocations ~$(75M) Non-GAAP Net Income from Utility Operations ~$865M 2022 Average Diluted Shares Outstanding 636M 2022E Non-GAAP Utility EPS $1.35 - $1.37 Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Net Income from Utility Operations and related assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 72Appendix 2022 BASE MODELING DRIVERS (Cont.) Regulatory Net Income ~$825M (1) Other utility-related income ~$50M (2) Income from non-core businesses ~$35M Equity return on securitization bonds ~$30M (3) (4) Corporate allocations ~$(75M) Non-GAAP Net Income from Utility Operations ~$865M 2022 Average Diluted Shares Outstanding 636M 2022E Non-GAAP Utility EPS $1.35 - $1.37 Note: Refer to slide 2 for information on forward-looking statements and slide 93 for information on non-GAAP measures, including Utility EPS and Net Income from Utility Operations and related assumptions. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 72
Appendix 5-YEAR CAPITAL BY CATEGORY Electric Natural Gas $ in billions $ in billions $2.8 $0.2 $1.9 $2.4 $0.4 $2.3 $0.3 $0.2 $0.1 $2.1 $0.2 $0.1 $1.5 $1.4 $0.1 $1.4 $1.4 $0.5 $0.4 $0.1 $0.2 $1.7 $0.2 $0.1 $0.1 $0.1 $0.4 $0.8 $0.4 $0.4 $1.1 $1.1 $0.2 ~$13B ~$9B $0.4 $0.2 $0.8 $0.2 $0.2 $0.9 $0.2 $1.0 $1.1 $0.8 $0.8 $0.7 $0.9 $0.9 $0.6 $0.7 $0.5 (2) 2021E 2022E 2023E 2024E 2025E 2026E to 2021E 2022E 2023E 2024E 2025E 2026E to 2030E 2030E Transmission Distribution Traditional Generation System Maintenance & Improvement Growth / Customer Additions (1) Renewables Generation Other Public Improvements & Other Meters and Regulators Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 73Appendix 5-YEAR CAPITAL BY CATEGORY Electric Natural Gas $ in billions $ in billions $2.8 $0.2 $1.9 $2.4 $0.4 $2.3 $0.3 $0.2 $0.1 $2.1 $0.2 $0.1 $1.5 $1.4 $0.1 $1.4 $1.4 $0.5 $0.4 $0.1 $0.2 $1.7 $0.2 $0.1 $0.1 $0.1 $0.4 $0.8 $0.4 $0.4 $1.1 $1.1 $0.2 ~$13B ~$9B $0.4 $0.2 $0.8 $0.2 $0.2 $0.9 $0.2 $1.0 $1.1 $0.8 $0.8 $0.7 $0.9 $0.9 $0.6 $0.7 $0.5 (2) 2021E 2022E 2023E 2024E 2025E 2026E to 2021E 2022E 2023E 2024E 2025E 2026E to 2030E 2030E Transmission Distribution Traditional Generation System Maintenance & Improvement Growth / Customer Additions (1) Renewables Generation Other Public Improvements & Other Meters and Regulators Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 73
Appendix 10-YEAR CAPITAL BY STATE Electric Natural Gas ~1% ~17% ~22% ~33% (1) $23B+ $16B+ 2021E-2030E Capital 2021E-2030E Capital ~10% ~7% ~83% ~4% ~23% Indiana Ohio Louisiana Mississippi Minnesota Texas Texas Indiana Arkansas & Oklahoma Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. AR/OK LDCs disposition is expected to be completed by end of 2021. CenterPoint Energy Analyst Day – September 2021 74Appendix 10-YEAR CAPITAL BY STATE Electric Natural Gas ~1% ~17% ~22% ~33% (1) $23B+ $16B+ 2021E-2030E Capital 2021E-2030E Capital ~10% ~7% ~83% ~4% ~23% Indiana Ohio Louisiana Mississippi Minnesota Texas Texas Indiana Arkansas & Oklahoma Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. AR/OK LDCs disposition is expected to be completed by end of 2021. CenterPoint Energy Analyst Day – September 2021 74
Appendix 10-YEAR CAPITAL BY ANTICIPATED RECOVERY MECHANISM Electric Natural Gas Traditional rate case ~3% Interim mechanisms Traditional with CPCN (2) rate case required ~10% Rate case with ~10% Forward Test Year ~23% $16B+ 2021-2030 Capital $23B+ $16B+ 2021E-2030E Capital 2021E-2030E Capital (3) Interim mechanisms (1) Interim mechanisms ~75% ~80% Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 75Appendix 10-YEAR CAPITAL BY ANTICIPATED RECOVERY MECHANISM Electric Natural Gas Traditional rate case ~3% Interim mechanisms Traditional with CPCN (2) rate case required ~10% Rate case with ~10% Forward Test Year ~23% $16B+ 2021-2030 Capital $23B+ $16B+ 2021E-2030E Capital 2021E-2030E Capital (3) Interim mechanisms (1) Interim mechanisms ~75% ~80% Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 75
Appendix GENERATION PROJECT UPDATE Delivering cleaner fuels to benefit our customers Targeted Recovery Project Structure Capacity (MW) Status In-service Mechanisms In Execution: Expected Rate case Gas CT Ownership 460 Q4 2024 Pending Approval investment: (PUP) ~$320 million CECA Troy Solar Ownership 50 Q1 2021 In-service (non-PUP) CECA Pending Approval Posey Solar Ownership 300 Q4 2023 (non-PUP) Expected Rustic Hills Solar PPA 100 (25 yrs) Q4 2023 FAC Pending Approval investment: ~$500 million Vermillion Solar PPA 185 (15 yrs) Q4 2023 FAC Pending Approval Wheatland Solar PPA 150 (20 yrs) Q4 2023 FAC Pending Approval In Process: Commercial CECA Solar Ownership ~100 Q4 2024 Expected (non-PUP) Negotiations investment: Commercial CECA Wind Ownership ~200 Q4 2024 (PUP) ~$500 million Negotiations (1) ….EXECUTING OUR PLAN TO PROVIDE 1GW+ OF RENEWABLES BY 2024 Note: Refer to slide 2 for information on forward-looking statements. CECA – Clean Energy Cost Adjustment; FAC = Fuel Adjustment Clause; PUP – Public Utility Property, subject to traditional ratemaking and tax normalization rules. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 76Appendix GENERATION PROJECT UPDATE Delivering cleaner fuels to benefit our customers Targeted Recovery Project Structure Capacity (MW) Status In-service Mechanisms In Execution: Expected Rate case Gas CT Ownership 460 Q4 2024 Pending Approval investment: (PUP) ~$320 million CECA Troy Solar Ownership 50 Q1 2021 In-service (non-PUP) CECA Pending Approval Posey Solar Ownership 300 Q4 2023 (non-PUP) Expected Rustic Hills Solar PPA 100 (25 yrs) Q4 2023 FAC Pending Approval investment: ~$500 million Vermillion Solar PPA 185 (15 yrs) Q4 2023 FAC Pending Approval Wheatland Solar PPA 150 (20 yrs) Q4 2023 FAC Pending Approval In Process: Commercial CECA Solar Ownership ~100 Q4 2024 Expected (non-PUP) Negotiations investment: Commercial CECA Wind Ownership ~200 Q4 2024 (PUP) ~$500 million Negotiations (1) ….EXECUTING OUR PLAN TO PROVIDE 1GW+ OF RENEWABLES BY 2024 Note: Refer to slide 2 for information on forward-looking statements. CECA – Clean Energy Cost Adjustment; FAC = Fuel Adjustment Clause; PUP – Public Utility Property, subject to traditional ratemaking and tax normalization rules. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 76
Appendix GENERATION PROJECT TIMELINE Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 77Appendix GENERATION PROJECT TIMELINE Note: Refer to slide 2 for information on forward-looking statements. CenterPoint Energy Analyst Day – September 2021 77
Appendix ENABLING LONGER TERM EV OPPORTUNITIES…. City of Houston EV car projection: Fleet conversion represents material upsides to plan Fleet = Houston Metro, Vehicle School fleets, other ~125k Potential: ~400k Equivalent demand vehicles by 2030 CenterPoint: ~ 100% of new homes conversion of light duty fleet by 2030 Potential upside: >200k EVs from Bipartisan Infrastructure plan by 2030 ~2M tons ~$80 ~1,500 GWh Incremental Growth CO Emissions Additional Margin 2 (2) (1) avoided annually by electrifying per vehicle per year due to load growth at Houston Electric – keeps customer across our Houston territory bills affordable ….A POTENTIAL STEP CHANGE BY 2030 Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 78Appendix ENABLING LONGER TERM EV OPPORTUNITIES…. City of Houston EV car projection: Fleet conversion represents material upsides to plan Fleet = Houston Metro, Vehicle School fleets, other ~125k Potential: ~400k Equivalent demand vehicles by 2030 CenterPoint: ~ 100% of new homes conversion of light duty fleet by 2030 Potential upside: >200k EVs from Bipartisan Infrastructure plan by 2030 ~2M tons ~$80 ~1,500 GWh Incremental Growth CO Emissions Additional Margin 2 (2) (1) avoided annually by electrifying per vehicle per year due to load growth at Houston Electric – keeps customer across our Houston territory bills affordable ….A POTENTIAL STEP CHANGE BY 2030 Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 78
Appendix INTELIS METER TECHNOLOGY Improving reliability, safety, emissions and customer experience Current Meter Capability ▪ Auto-meter shutoff (high flow/temp) Current Meter Capability Enhanced ▪ Air detection if tampering/removal▪ Unparalleled ultrasonic meter accuracy Safety ▪ Gas shut-off ability via remote▪ Meter logs hourly interval read data Customer ▪ 70% lighter improves logistics Future Meter Capability Experience Future Meter Capability▪ Fixed network integration provides centralized ▪ Shutoff via integration with separate methane meter reads, improves outage restoration times, detection devices and allows timelier customer communication (1) ▪ Fixed network integration provides centralized shutoff, alarm notification and enhanced response capabilities Current Meter Capability Current Meter Capability ▪ Reduced service interruption duration▪ Auto meter shutoff ability reduces methane and Emissions Reliability ▪ Less unaccounted-for gas through increased CO emissions 2 Reduction meter accuracy▪ Improved logistics means reduced shipping, Future Meter Capability smaller storage footprint and fewer truck rolls ▪ Fixed network integration allows more Future Meter Capability frequent flow rate sampling of gas supply▪ Shutoff via integration with separate methane detection devices ….MULTI-YEAR SCALE UPGRADE Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 79Appendix INTELIS METER TECHNOLOGY Improving reliability, safety, emissions and customer experience Current Meter Capability ▪ Auto-meter shutoff (high flow/temp) Current Meter Capability Enhanced ▪ Air detection if tampering/removal▪ Unparalleled ultrasonic meter accuracy Safety ▪ Gas shut-off ability via remote▪ Meter logs hourly interval read data Customer ▪ 70% lighter improves logistics Future Meter Capability Experience Future Meter Capability▪ Fixed network integration provides centralized ▪ Shutoff via integration with separate methane meter reads, improves outage restoration times, detection devices and allows timelier customer communication (1) ▪ Fixed network integration provides centralized shutoff, alarm notification and enhanced response capabilities Current Meter Capability Current Meter Capability ▪ Reduced service interruption duration▪ Auto meter shutoff ability reduces methane and Emissions Reliability ▪ Less unaccounted-for gas through increased CO emissions 2 Reduction meter accuracy▪ Improved logistics means reduced shipping, Future Meter Capability smaller storage footprint and fewer truck rolls ▪ Fixed network integration allows more Future Meter Capability frequent flow rate sampling of gas supply▪ Shutoff via integration with separate methane detection devices ….MULTI-YEAR SCALE UPGRADE Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 79
Appendix $23B+ INVESTMENT DRIVING SAFETY, RESILIENCY, AND GROWTH…. (1) Current State Expected by 2030E Growth +0.4M 2.7M metered customers metered customers added ~4,800 mi OH transmission lines ~1,300 mi OH transmission lines added/upgraded ~34,00 mi OH distribution lines ~2,200mi OH distribution lines added Resiliency Electric ~29,000 mi UG distribution lines ~6,500 mi UG distribution lines added 351 substations 210 substations upgrade + 32 added Clean 50 MW solar ~400 MW solar built + ~200 MW wind built ….NO BIG BETS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 80Appendix $23B+ INVESTMENT DRIVING SAFETY, RESILIENCY, AND GROWTH…. (1) Current State Expected by 2030E Growth +0.4M 2.7M metered customers metered customers added ~4,800 mi OH transmission lines ~1,300 mi OH transmission lines added/upgraded ~34,00 mi OH distribution lines ~2,200mi OH distribution lines added Resiliency Electric ~29,000 mi UG distribution lines ~6,500 mi UG distribution lines added 351 substations 210 substations upgrade + 32 added Clean 50 MW solar ~400 MW solar built + ~200 MW wind built ….NO BIG BETS Note: Refer to slide 2 for information on forward-looking statements. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 80
Appendix $16B+ INVESTMENT DRIVING SAFETY, RESILIENCY, AND GROWTH…. (1) Current State Expected by 2030E +0.5M Growth 4.1M metered customers metered customers added 0 mi cast iron mains remaining ~100 mi cast iron mains Natural 0 mi bare steel mains remaining ~764 mi bare steel mains Resiliency ~8,343 mi legacy mains remaining ~17,988 mi legacy mains Gas ~4.6M smart meters ~41,054 smart meters H H Clean 2 1MW hydrogen facility (pilot) 2 up to 10% amount of renewable fuels ….NO BIG BETS Note: Refer to slide 2 for information on forward-looking statements. Includes the effect of AR/OK LDCs disposition expected to be completed by end of 2021. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 81Appendix $16B+ INVESTMENT DRIVING SAFETY, RESILIENCY, AND GROWTH…. (1) Current State Expected by 2030E +0.5M Growth 4.1M metered customers metered customers added 0 mi cast iron mains remaining ~100 mi cast iron mains Natural 0 mi bare steel mains remaining ~764 mi bare steel mains Resiliency ~8,343 mi legacy mains remaining ~17,988 mi legacy mains Gas ~4.6M smart meters ~41,054 smart meters H H Clean 2 1MW hydrogen facility (pilot) 2 up to 10% amount of renewable fuels ….NO BIG BETS Note: Refer to slide 2 for information on forward-looking statements. Includes the effect of AR/OK LDCs disposition expected to be completed by end of 2021. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 81
Appendix DATA SECURITY SOLUTIONS $10 million, 2-year initiatives to continuously improve Cyber Resiliency through improved network design, application hardening, governance, and new capabilities to our network Security Hardening Application Hardening/ Infrastructure Hardening Password Resets Network segmentation Configure policy and infrastructure changes End-user PWR Endpoint hardening Backup strategy (Cloud) Privileged accounts PWR New visibility, monitoring and response capabilities Network strategy Service account PWR Identity / Access Management External assessments Instituting best-practice password changes management and policy enhancements 2021 Q2 – 2022 Q2 2021 Q1 – 2022 Q2 2021 Q1 – Q4 Note: Refer to slide 2 for information on forward-looking statements. PWR – Password Reset CenterPoint Energy Analyst Day – September 2021 82Appendix DATA SECURITY SOLUTIONS $10 million, 2-year initiatives to continuously improve Cyber Resiliency through improved network design, application hardening, governance, and new capabilities to our network Security Hardening Application Hardening/ Infrastructure Hardening Password Resets Network segmentation Configure policy and infrastructure changes End-user PWR Endpoint hardening Backup strategy (Cloud) Privileged accounts PWR New visibility, monitoring and response capabilities Network strategy Service account PWR Identity / Access Management External assessments Instituting best-practice password changes management and policy enhancements 2021 Q2 – 2022 Q2 2021 Q1 – 2022 Q2 2021 Q1 – Q4 Note: Refer to slide 2 for information on forward-looking statements. PWR – Password Reset CenterPoint Energy Analyst Day – September 2021 82
Appendix TEXAS LEGISLATIVE HIGHLIGHTS Economic test for transmission lines Use of batteries ▪ Effective September 1, 2021▪ Effective September 1, 2021 ▪ Houston Electric can propose new transmission lines using ▪ Houston Electric can operate via capitalized leases electric a customer benefit test rather than just reliability criteria storage facilities, up to a PUC-determined MW level ▪ Could accelerate transmission and capital spend▪ Houston Electric would get a “proportional share” of 100MW ▪ Exception for 3-mile interconnections for new customers and ▪ Capital leases eligible for recovery using a reasonable return 2-mile interconnections for new generation – reducing ▪ Law requires a PUC rule to implement barrier to new renewables Use of emergency generation Procurement of long lead-time items ▪ Effective September 1, 2021▪ Effective September 1, 2021 ▪ No MW limit and allows Houston Electric to operate via ▪ Houston Electric can procure and rate base long lead time capitalized leases temporary emergency generation facilities items (items that may take 6 months or longer obtain) that that would aid in restoring power during widespread outages aid in responses to widespread outages ▪ Generation source may be batteries or fueled by gas, ▪ Eligible for immediate recovery through interim mechanisms hydrogen, diesel, etc., can be both mobile or stationary ▪ Incremental O&M is deferred to the next rate case ▪ Capital leases are eligible for recovery using our most recent authorized rate of return, O&M is deferred to the rate case CenterPoint Energy Analyst Day – September 2021 83Appendix TEXAS LEGISLATIVE HIGHLIGHTS Economic test for transmission lines Use of batteries ▪ Effective September 1, 2021▪ Effective September 1, 2021 ▪ Houston Electric can propose new transmission lines using ▪ Houston Electric can operate via capitalized leases electric a customer benefit test rather than just reliability criteria storage facilities, up to a PUC-determined MW level ▪ Could accelerate transmission and capital spend▪ Houston Electric would get a “proportional share” of 100MW ▪ Exception for 3-mile interconnections for new customers and ▪ Capital leases eligible for recovery using a reasonable return 2-mile interconnections for new generation – reducing ▪ Law requires a PUC rule to implement barrier to new renewables Use of emergency generation Procurement of long lead-time items ▪ Effective September 1, 2021▪ Effective September 1, 2021 ▪ No MW limit and allows Houston Electric to operate via ▪ Houston Electric can procure and rate base long lead time capitalized leases temporary emergency generation facilities items (items that may take 6 months or longer obtain) that that would aid in restoring power during widespread outages aid in responses to widespread outages ▪ Generation source may be batteries or fueled by gas, ▪ Eligible for immediate recovery through interim mechanisms hydrogen, diesel, etc., can be both mobile or stationary ▪ Incremental O&M is deferred to the next rate case ▪ Capital leases are eligible for recovery using our most recent authorized rate of return, O&M is deferred to the rate case CenterPoint Energy Analyst Day – September 2021 83
Appendix OUR SOCIAL COMMITMENTS Diversity and Inclusion Pillars Management Long Term Incentive Compensation includes D&I Metrics at least 10% of CNP Continue to outpace diversity employment trends in the sector foundation’s annual budget supports D&I giving 26% 35% 48% DIVERSE DIVERSE DIVERSE 9% direct annual 100% of debt spending with diverse offerings include a CenterPoint 2020 CenterPoint Utility Industry Energy Current business vendors D&I firm in the Energy New Hires Nationwide Trend Workforce underwriting group Source: Utility Trend as reported by U.S. Equal Employment Opportunity Commission, Job Patterns for Minorities and Women in Private Industry (EEO-1), 2018 CenterPoint Energy Analyst Day – September 2021 84Appendix OUR SOCIAL COMMITMENTS Diversity and Inclusion Pillars Management Long Term Incentive Compensation includes D&I Metrics at least 10% of CNP Continue to outpace diversity employment trends in the sector foundation’s annual budget supports D&I giving 26% 35% 48% DIVERSE DIVERSE DIVERSE 9% direct annual 100% of debt spending with diverse offerings include a CenterPoint 2020 CenterPoint Utility Industry Energy Current business vendors D&I firm in the Energy New Hires Nationwide Trend Workforce underwriting group Source: Utility Trend as reported by U.S. Equal Employment Opportunity Commission, Job Patterns for Minorities and Women in Private Industry (EEO-1), 2018 CenterPoint Energy Analyst Day – September 2021 84
Appendix STANDARD DEFINITIONS FOR SCOPE 1, 2, AND 3 EMISSIONS Scope 1 Scope 2 Scope 3 (Direct source of emission from operations) (Indirect source of emission / (Indirect source of emission /end-user) company) Electric Generation: ▪ Primarily emissions generated from coal, Facilities consumption End-use customer emissions will also include gas combustion of purchased electricity including: ▪ Residential, logistics, Gas Operations include: commercial, and industrial ▪ Compressor stations, emissions from pipelines (including fugitives), excavation damages, storage, transmission T&D Line Loss blowdowns, and other minor contributors ▪ Employee commuting and ▪ Does not currently include customer business travel meters, subject to change Fleet Transportation: ▪ Company fleet vehicles Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. As Texas is in an unregulated market, our Scope 2 estimates exclude Texas electric T&D assets in the line loss calculation and exclude emissions related to purchased power between ’24E-’26E. Our Scope 3 estimates exclude the emissions of transport customers and emissions related to upstream extraction. CenterPoint Energy Analyst Day – September 2021 85Appendix STANDARD DEFINITIONS FOR SCOPE 1, 2, AND 3 EMISSIONS Scope 1 Scope 2 Scope 3 (Direct source of emission from operations) (Indirect source of emission / (Indirect source of emission /end-user) company) Electric Generation: ▪ Primarily emissions generated from coal, Facilities consumption End-use customer emissions will also include gas combustion of purchased electricity including: ▪ Residential, logistics, Gas Operations include: commercial, and industrial ▪ Compressor stations, emissions from pipelines (including fugitives), excavation damages, storage, transmission T&D Line Loss blowdowns, and other minor contributors ▪ Employee commuting and ▪ Does not currently include customer business travel meters, subject to change Fleet Transportation: ▪ Company fleet vehicles Note: Refer to slide 2 for information on forward-looking statements and slide 93 for Net Zero disclaimer. As Texas is in an unregulated market, our Scope 2 estimates exclude Texas electric T&D assets in the line loss calculation and exclude emissions related to purchased power between ’24E-’26E. Our Scope 3 estimates exclude the emissions of transport customers and emissions related to upstream extraction. CenterPoint Energy Analyst Day – September 2021 85
Appendix RECONCILIATION OF INCOME AND DILUTED EPS TO ADJUSTED INCOME AND ADJUSTED DILUTED EPS USED IN PROVIDING ANNUAL EARNINGS GUIDANCE Twelve Months Ended June 30, 2021 (1) (2) Midstream Corporate and CES & CIS (6) Utility Operations Investments Other (Disc. Operations) Consolidated Dollars in Diluted Dollars in Diluted Dollars in Diluted Dollars in Diluted Dollars in Diluted (3) (3) (3) (3) (3) millions EPS millions EPS millions EPS millions EPS millions EPS Consolidated income (loss) available to common shareholders and diluted EPS $ 808 $ 1.40 $ 112 $ 0.25 $ (139) $(0.24) $ (6) $ - $ 775 $ 1.41 ZENS-related mark-to-market (gains) losses: (4)(5) Marketable securities (net of taxes of $37) - - - - (133) (0.25) - - (133) (0.25) (4) Indexed debt securities (net of taxes of $36) - - - - 134 0.25 - - 134 0.25 (4) Impacts associated with the Vectren merger (net of taxes of $1, $1) 4 0.01 - - 2 - - - 6 0.01 (4) Severance costs (net of taxes of $2) 6 0.02 - - - - - - 6 0.02 (4) Impacts associated with BREC activities (net of taxes of $0, $0) 1 - - - 1 - - - 2 - (1) (2) (4) Impacts associated with the sales of CES and CIS (net of taxes of $0) - - - - - - 7 - 7 - Impacts associated with Series C preferred stock Preferred stock dividend requirement and amortization of beneficial conversion feature - - - - 42 0.08 - - 42 0.08 Impact of increased share count on EPS if issued as common stock - (0.05) - 0.05 - 0.01 - - - 0.01 Total Series C preferred stock impacts - (0.05) - 0.05 42 0.09 - - 42 0.09 (4) Losses on impairment (net of taxes of $29) - (0.02) 92 0.04 - - - - 92 0.02 (4) Impacts associated with gas LDC sales (11) (0.02) - - (6) (0.01) - - (17) (0.03) (4) Cost associated with the early extinguishment of debt (net of taxes of $7) - - - - 27 0.05 - - 27 0.05 Corporate and Other Allocation (51) (0.08) (18) (0.03) 72 0.11 (3) - - - (7) Exclusion of Discontinued Operations - - - - - - 2 - 2 - Consolidated on a guidance basis $ 757 $ 1.26 $ 186 $ 0.31 $ - $ - $ - $ - $ 943 $ 1.57 Note: Refer to slide 93 for information on non-GAAP Utility EPS assumptions and non-GAAP measures. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 86Appendix RECONCILIATION OF INCOME AND DILUTED EPS TO ADJUSTED INCOME AND ADJUSTED DILUTED EPS USED IN PROVIDING ANNUAL EARNINGS GUIDANCE Twelve Months Ended June 30, 2021 (1) (2) Midstream Corporate and CES & CIS (6) Utility Operations Investments Other (Disc. Operations) Consolidated Dollars in Diluted Dollars in Diluted Dollars in Diluted Dollars in Diluted Dollars in Diluted (3) (3) (3) (3) (3) millions EPS millions EPS millions EPS millions EPS millions EPS Consolidated income (loss) available to common shareholders and diluted EPS $ 808 $ 1.40 $ 112 $ 0.25 $ (139) $(0.24) $ (6) $ - $ 775 $ 1.41 ZENS-related mark-to-market (gains) losses: (4)(5) Marketable securities (net of taxes of $37) - - - - (133) (0.25) - - (133) (0.25) (4) Indexed debt securities (net of taxes of $36) - - - - 134 0.25 - - 134 0.25 (4) Impacts associated with the Vectren merger (net of taxes of $1, $1) 4 0.01 - - 2 - - - 6 0.01 (4) Severance costs (net of taxes of $2) 6 0.02 - - - - - - 6 0.02 (4) Impacts associated with BREC activities (net of taxes of $0, $0) 1 - - - 1 - - - 2 - (1) (2) (4) Impacts associated with the sales of CES and CIS (net of taxes of $0) - - - - - - 7 - 7 - Impacts associated with Series C preferred stock Preferred stock dividend requirement and amortization of beneficial conversion feature - - - - 42 0.08 - - 42 0.08 Impact of increased share count on EPS if issued as common stock - (0.05) - 0.05 - 0.01 - - - 0.01 Total Series C preferred stock impacts - (0.05) - 0.05 42 0.09 - - 42 0.09 (4) Losses on impairment (net of taxes of $29) - (0.02) 92 0.04 - - - - 92 0.02 (4) Impacts associated with gas LDC sales (11) (0.02) - - (6) (0.01) - - (17) (0.03) (4) Cost associated with the early extinguishment of debt (net of taxes of $7) - - - - 27 0.05 - - 27 0.05 Corporate and Other Allocation (51) (0.08) (18) (0.03) 72 0.11 (3) - - - (7) Exclusion of Discontinued Operations - - - - - - 2 - 2 - Consolidated on a guidance basis $ 757 $ 1.26 $ 186 $ 0.31 $ - $ - $ - $ - $ 943 $ 1.57 Note: Refer to slide 93 for information on non-GAAP Utility EPS assumptions and non-GAAP measures. See appendix for endnotes. CenterPoint Energy Analyst Day – September 2021 86
Appendix Endnotes: Slide Notes (1) Market data as of 9/11/2021; Total assets as of 6/30/2021 (2) Net income represents trailing 12 months non-GAAP Utility net income. (3) As rated by S&P / Moody’s 3 (4) Data as of 6/30/2021 (5) Data as of 6/30/2021; Pending sale of AR and OK gas LDCs (6) Includes ~530,000 customers of AR and OK gas LDCs (1) Refers to projected non-GAAP Utility EPS and non-GAAP Utility EPS 6-8% annual growth rate from 2021E – 2025E (2) Compared to CNP’s annual proxy statement peers’ average recent long-term EPS consensus estimates (3) Refers to projected rate base CAGR from 2020 to 2025E, based on capital plan presented on CNP’s 2020 Investor Day 7 (4) Subject to the close of Enable and Energy Transfer merger (5) 2021E-2025E projection inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets (6) 2021E-2025E forward projections based on internal projections (1) As compared against annual proxy statement peers’ consensus long term estimates as reported through FactSet 9 (1) Refers to capital plan from 2021E to 2025E 10 (2) Refers to capital plan from 2021E to 2030E (1) Based on 5-year plan 11 (2) Includes anticipated proceeds from sale of AR and OK gas LDCs, interest in midstream investments, coal asset securitization, and cash savings from repairs tax deduction (1) Subject to timing of closure of Enable and Energy Transfer merger, if at all; assuming sale of all Series G preferred units received by CenterPoint Energy and 50M common unit sale through contingent forward agreement by 12 end of 2021 13 (1) Scope 1&2 peer group includes operators owning large scale generation, including CMS, AEE, D, DTE, DUK, LNT, PPL, SO, WEC, XEL (1) Consistent with Moody’s methodology 14 (1) Projections based on current forecast. Inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets 15 (2) Projections through 2030 based on internal projections (3) Based on City of Houston’s target of EVs accounting for 30% of new car sales by 2030 (1) Assuming mid-point in 2025E – 2030E guidance range 16 (2) Annualized dividend post dividend cut in April 2020 CenterPoint Energy Analyst Day – September 2021 87Appendix Endnotes: Slide Notes (1) Market data as of 9/11/2021; Total assets as of 6/30/2021 (2) Net income represents trailing 12 months non-GAAP Utility net income. (3) As rated by S&P / Moody’s 3 (4) Data as of 6/30/2021 (5) Data as of 6/30/2021; Pending sale of AR and OK gas LDCs (6) Includes ~530,000 customers of AR and OK gas LDCs (1) Refers to projected non-GAAP Utility EPS and non-GAAP Utility EPS 6-8% annual growth rate from 2021E – 2025E (2) Compared to CNP’s annual proxy statement peers’ average recent long-term EPS consensus estimates (3) Refers to projected rate base CAGR from 2020 to 2025E, based on capital plan presented on CNP’s 2020 Investor Day 7 (4) Subject to the close of Enable and Energy Transfer merger (5) 2021E-2025E projection inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets (6) 2021E-2025E forward projections based on internal projections (1) As compared against annual proxy statement peers’ consensus long term estimates as reported through FactSet 9 (1) Refers to capital plan from 2021E to 2025E 10 (2) Refers to capital plan from 2021E to 2030E (1) Based on 5-year plan 11 (2) Includes anticipated proceeds from sale of AR and OK gas LDCs, interest in midstream investments, coal asset securitization, and cash savings from repairs tax deduction (1) Subject to timing of closure of Enable and Energy Transfer merger, if at all; assuming sale of all Series G preferred units received by CenterPoint Energy and 50M common unit sale through contingent forward agreement by 12 end of 2021 13 (1) Scope 1&2 peer group includes operators owning large scale generation, including CMS, AEE, D, DTE, DUK, LNT, PPL, SO, WEC, XEL (1) Consistent with Moody’s methodology 14 (1) Projections based on current forecast. Inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets 15 (2) Projections through 2030 based on internal projections (3) Based on City of Houston’s target of EVs accounting for 30% of new car sales by 2030 (1) Assuming mid-point in 2025E – 2030E guidance range 16 (2) Annualized dividend post dividend cut in April 2020 CenterPoint Energy Analyst Day – September 2021 87
Appendix Endnotes: Slide Notes (1) Peer selection based on highest average P/E multiple from 2011-2020 (excluding NEE, AWK, and ES); “Premium Utilities” include AEE, CMS, LNT, WEC, and XEL (2) Refers to CNP’s non-GAAP Utility EPS annual growth rate for 2021E – 2024E, compared to stated EPS growth guidance from Premium Utilities per most recent company disclosure (3) Refers to CNP Rate Base CAGR target from 2020 to 2030E, compared to stated rate base growth guidance from Premium Utilities from 2020-2025E (4) Refers to CNP’s targeted dividend annual growth rate for 2021 – 2024E, compared to stated EPS growth guidance from Premium Utilities per most recent company disclosure 17 (5) As provided by CNP and Premium Utilities most recent company disclosure (6) Represents CNPs’ 2016 – 2020 annual average metered customer growth and that of Premium Utilities; CNP’s internal data; Premium Utilities data from S&P Global Market Intelligence (7) As rated by Moody’s (1) Refers to non-GAAP Utility EPS annual growth rate for 2021E – 2030E (2) Refers to forward sale agreement of 50M Energy Transfer common units, subject to the close of Enable and Energy Transfer merger (3) Scope 1&2 peer group includes operators owning large scale generation, including CMS, AEE, D, DTE, DUK, LNT, PPL, SO, WEC, XEL 18 (4) Consistent with Moody’s methodology (5) Inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets (6) Internal projection through 2030 (1) Data from 2021 US Census data (2) Data from wallethub.com (3) Data from Fortune 2020 Survey (4) Data from Greater Houston Partnership; The GDP includes Houston, The Woodlands and Sugar Land 19 (5) 2019 Houston Economic Development Guide (6) Projections through 2030 based on internal projections (7) Data from the greater Austin-San Antonio Corridor council (1) Data from 2021 US Census data 20 (2) Data from Bureau of Economic Analysis, U.S. Department of Commerce (3) Data from Fortune 2020 Survey (1) Scope 1&2 peer group includes operators owning large scale generation, including CMS, AEE, D, DTE, DUK, LNT, PPL, SO, WEC, XEL; Scope 3 peer group includes CMS, AEE, D, DTE, DUK, LNT, PPL, SO, WEC, XEL, and SRE 24 (1) Million Metric tons (MM MT) (2) Actual emissions from the facility depend on utilization 25 (3) Emissions from AR and OK gas LDCs are included in 2020 but not in 2035 due to expected divestiture to close by end of 2021 26 (1) Our renewable facilities generate renewable energy credits which can potentially offset our thermal-based generation emissions or be sold to fund carbon credit offsets CenterPoint Energy Analyst Day – September 2021 88Appendix Endnotes: Slide Notes (1) Peer selection based on highest average P/E multiple from 2011-2020 (excluding NEE, AWK, and ES); “Premium Utilities” include AEE, CMS, LNT, WEC, and XEL (2) Refers to CNP’s non-GAAP Utility EPS annual growth rate for 2021E – 2024E, compared to stated EPS growth guidance from Premium Utilities per most recent company disclosure (3) Refers to CNP Rate Base CAGR target from 2020 to 2030E, compared to stated rate base growth guidance from Premium Utilities from 2020-2025E (4) Refers to CNP’s targeted dividend annual growth rate for 2021 – 2024E, compared to stated EPS growth guidance from Premium Utilities per most recent company disclosure 17 (5) As provided by CNP and Premium Utilities most recent company disclosure (6) Represents CNPs’ 2016 – 2020 annual average metered customer growth and that of Premium Utilities; CNP’s internal data; Premium Utilities data from S&P Global Market Intelligence (7) As rated by Moody’s (1) Refers to non-GAAP Utility EPS annual growth rate for 2021E – 2030E (2) Refers to forward sale agreement of 50M Energy Transfer common units, subject to the close of Enable and Energy Transfer merger (3) Scope 1&2 peer group includes operators owning large scale generation, including CMS, AEE, D, DTE, DUK, LNT, PPL, SO, WEC, XEL 18 (4) Consistent with Moody’s methodology (5) Inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets (6) Internal projection through 2030 (1) Data from 2021 US Census data (2) Data from wallethub.com (3) Data from Fortune 2020 Survey (4) Data from Greater Houston Partnership; The GDP includes Houston, The Woodlands and Sugar Land 19 (5) 2019 Houston Economic Development Guide (6) Projections through 2030 based on internal projections (7) Data from the greater Austin-San Antonio Corridor council (1) Data from 2021 US Census data 20 (2) Data from Bureau of Economic Analysis, U.S. Department of Commerce (3) Data from Fortune 2020 Survey (1) Scope 1&2 peer group includes operators owning large scale generation, including CMS, AEE, D, DTE, DUK, LNT, PPL, SO, WEC, XEL; Scope 3 peer group includes CMS, AEE, D, DTE, DUK, LNT, PPL, SO, WEC, XEL, and SRE 24 (1) Million Metric tons (MM MT) (2) Actual emissions from the facility depend on utilization 25 (3) Emissions from AR and OK gas LDCs are included in 2020 but not in 2035 due to expected divestiture to close by end of 2021 26 (1) Our renewable facilities generate renewable energy credits which can potentially offset our thermal-based generation emissions or be sold to fund carbon credit offsets CenterPoint Energy Analyst Day – September 2021 88
Appendix Endnotes: Slide Notes (1) As measured from EIA form 176 for residential and commercial customers 27 (2) Emissions from AR and OK gas LDCs are included in 2020 but not in 2035 due to divestiture expected to close by end of 2021 (1) Refers to CNP and its annual proxy statement peers 28 (1) Includes renewables, storage, and future generation to be informed by upcoming IRP as well as T&D assets enabling renewable integration 32 (1) Internal projection through 2030 33 (2) Internal projection through 2030 (1) Assumes successful completion of ongoing commercial negotiations, regulatory approval and / or construction, among other things (2) Based on 4.6 metric tons per year from typical passenger car, per EPA (https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle#tailpipe-emissions) 35 (3) Based on current Houston Electric’s rates and 4,000 kWh of usage per EV per year (1) Assume reduction in truck rolls and service orders and O&M efficiency start in 2022, as compared to current process 36 (2) Composite of all jurisdictions in Electric business segment. Excluding utility costs to achieve, severance costs and amounts with revenue offsets. Customer counts per CNP internal forecast (3) Houston Electric O&M performance as benchmarked against peers through First Quartile’s 2020 benchmarking study (1) Includes customer count in AR and OK of ~530,000 customers. Pending sale of AR and OK gas LDCs (2) Includes miles of Mains in AR and OK of ~17,000 miles. Pending sale of AR and OK gas LDCs 38 (3) Includes miles of services in AR and OK of ~ 7,000 miles. Pending sale of AR and OK gas LDCs (4) Data sourced from AGA. #3 gas LDC by customer count after excluding AR and OK, #2 gas LDC by system miles after excluding AR and OK. Pending sale of AR and OK gas LDCs (1) Includes capital expenditure for Arkansas and Oklahoma in 2021 39 (1) Based on 2020 AGA data (2) Internal projection through 2030 across the Austin-San Antonio corridor (S.TX corridor) 41 (3) Internal projection through 2030; Greater Houston area, including Texas coast (4) Source: https://www.energy.gov/energysaver/home-heating-systems/electric-resistance-heating and https://www.energy.gov/energysaver/home-heating-systems/furnaces-and-boilers 42 (1) Light Fleet includes small SUVs and sedans (1) Assumed over implementation period through 2030 as compared to 2020 (2) Composite of all jurisdictions in Natural Gas Distribution business segment. Excluding utility costs to achieve and amounts with revenue offsets. Includes the effect of AR and OK gas LDCs dispositions expected to be completed by 2022. Customer counts per CNP internal forecast. 43 (3) Higher end of the efficiency band assumes the mass deployment of a fixed network solution. Assumed over implementation period through 2030 as compared to 2020 (4) Data sourced from 2020 AGA report. CNP data excludes AR and OK CenterPoint Energy Analyst Day – September 2021 89Appendix Endnotes: Slide Notes (1) As measured from EIA form 176 for residential and commercial customers 27 (2) Emissions from AR and OK gas LDCs are included in 2020 but not in 2035 due to divestiture expected to close by end of 2021 (1) Refers to CNP and its annual proxy statement peers 28 (1) Includes renewables, storage, and future generation to be informed by upcoming IRP as well as T&D assets enabling renewable integration 32 (1) Internal projection through 2030 33 (2) Internal projection through 2030 (1) Assumes successful completion of ongoing commercial negotiations, regulatory approval and / or construction, among other things (2) Based on 4.6 metric tons per year from typical passenger car, per EPA (https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle#tailpipe-emissions) 35 (3) Based on current Houston Electric’s rates and 4,000 kWh of usage per EV per year (1) Assume reduction in truck rolls and service orders and O&M efficiency start in 2022, as compared to current process 36 (2) Composite of all jurisdictions in Electric business segment. Excluding utility costs to achieve, severance costs and amounts with revenue offsets. Customer counts per CNP internal forecast (3) Houston Electric O&M performance as benchmarked against peers through First Quartile’s 2020 benchmarking study (1) Includes customer count in AR and OK of ~530,000 customers. Pending sale of AR and OK gas LDCs (2) Includes miles of Mains in AR and OK of ~17,000 miles. Pending sale of AR and OK gas LDCs 38 (3) Includes miles of services in AR and OK of ~ 7,000 miles. Pending sale of AR and OK gas LDCs (4) Data sourced from AGA. #3 gas LDC by customer count after excluding AR and OK, #2 gas LDC by system miles after excluding AR and OK. Pending sale of AR and OK gas LDCs (1) Includes capital expenditure for Arkansas and Oklahoma in 2021 39 (1) Based on 2020 AGA data (2) Internal projection through 2030 across the Austin-San Antonio corridor (S.TX corridor) 41 (3) Internal projection through 2030; Greater Houston area, including Texas coast (4) Source: https://www.energy.gov/energysaver/home-heating-systems/electric-resistance-heating and https://www.energy.gov/energysaver/home-heating-systems/furnaces-and-boilers 42 (1) Light Fleet includes small SUVs and sedans (1) Assumed over implementation period through 2030 as compared to 2020 (2) Composite of all jurisdictions in Natural Gas Distribution business segment. Excluding utility costs to achieve and amounts with revenue offsets. Includes the effect of AR and OK gas LDCs dispositions expected to be completed by 2022. Customer counts per CNP internal forecast. 43 (3) Higher end of the efficiency band assumes the mass deployment of a fixed network solution. Assumed over implementation period through 2030 as compared to 2020 (4) Data sourced from 2020 AGA report. CNP data excludes AR and OK CenterPoint Energy Analyst Day – September 2021 89
Appendix Endnotes: Slide Notes (1) Assumes successful completion of ongoing commercial negotiations, regulatory approval and/or construction, among other things (2) Source: EVolve Houston and City of Houston’s electric vehicle adoption goal 47 (3) Includes customer count in AR and OK of ~530,000 customers (1) As sourced by Houston Metro, 2019 48 (1) Source: CNP’s press release 49 (2) Source: CNP’s 2019 – 2020 Indiana Integrated Resource Plan filings (1) 5-year annual average change in T&D rates as compared to Texas peers Oncor, AEP, TNMP and CPI inflation (2) Refers to Houston Electric’s securitization bonds. One tranche of storm restoration bonds and one tranche of transitions bonds remain, maturing in 2022 and 2024, respectively 52 (3) Projections based on internal forecast. Inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets (1) Historical average customer natural gas bills across all jurisdictions in TX and historical customer natural gas bills in Minnesota (2) Pre-Uri customer bill in 2021 (3) Source: Bloomberg NYMEX HH futures as of 9/22/2021 53 (4) Projections based on current forecast. Inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets (1) Includes capital expenditure for AR and OK in 2021 (2) Includes capital expenditure that can be recovered through interim mechanisms but requires approvals of Certificate of Public Convenience and Necessity 54 (3) Includes capital expenditure that can be recovered through interim mechanisms and riders. Excludes capital expenditure that requires approvals of Certificate of Public Convenience and Necessity (1) Includes anticipated proceeds from sale of AR and OK gas LDCs, interest in midstream investments, coal asset securitization, and cash savings from repairs tax deduction 57 (2) Consistent with Moody’s methodology (1) Subject to timing of closure of Enable and Energy Transfer merger, if at all; assuming entire Series G preferred unit sale and 50M common unit sale through contingent forward agreement by end of 2021 58 (1) Includes capital expenditure that can be recovered through interim mechanisms and riders. Excludes capital expenditure that requires approvals of Certificate of Public Convenience and Necessity 59 (1) Based on certain assumptions regarding the sale of Energy Transfer common units as well as other strategic transactions 60 (1) Refers to rate base CAGR from 2020 to 2030E 61 (2) Refers to rate base CAGR from 2020 to 2025E CenterPoint Energy Analyst Day – September 2021 90Appendix Endnotes: Slide Notes (1) Assumes successful completion of ongoing commercial negotiations, regulatory approval and/or construction, among other things (2) Source: EVolve Houston and City of Houston’s electric vehicle adoption goal 47 (3) Includes customer count in AR and OK of ~530,000 customers (1) As sourced by Houston Metro, 2019 48 (1) Source: CNP’s press release 49 (2) Source: CNP’s 2019 – 2020 Indiana Integrated Resource Plan filings (1) 5-year annual average change in T&D rates as compared to Texas peers Oncor, AEP, TNMP and CPI inflation (2) Refers to Houston Electric’s securitization bonds. One tranche of storm restoration bonds and one tranche of transitions bonds remain, maturing in 2022 and 2024, respectively 52 (3) Projections based on internal forecast. Inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets (1) Historical average customer natural gas bills across all jurisdictions in TX and historical customer natural gas bills in Minnesota (2) Pre-Uri customer bill in 2021 (3) Source: Bloomberg NYMEX HH futures as of 9/22/2021 53 (4) Projections based on current forecast. Inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets (1) Includes capital expenditure for AR and OK in 2021 (2) Includes capital expenditure that can be recovered through interim mechanisms but requires approvals of Certificate of Public Convenience and Necessity 54 (3) Includes capital expenditure that can be recovered through interim mechanisms and riders. Excludes capital expenditure that requires approvals of Certificate of Public Convenience and Necessity (1) Includes anticipated proceeds from sale of AR and OK gas LDCs, interest in midstream investments, coal asset securitization, and cash savings from repairs tax deduction 57 (2) Consistent with Moody’s methodology (1) Subject to timing of closure of Enable and Energy Transfer merger, if at all; assuming entire Series G preferred unit sale and 50M common unit sale through contingent forward agreement by end of 2021 58 (1) Includes capital expenditure that can be recovered through interim mechanisms and riders. Excludes capital expenditure that requires approvals of Certificate of Public Convenience and Necessity 59 (1) Based on certain assumptions regarding the sale of Energy Transfer common units as well as other strategic transactions 60 (1) Refers to rate base CAGR from 2020 to 2030E 61 (2) Refers to rate base CAGR from 2020 to 2025E CenterPoint Energy Analyst Day – September 2021 90
Appendix Endnotes: Slide Notes (1) Refers to projected non-GAAP Utility EPS annual growth rate (2) Includes customer growth, rate relief, depreciation, interest expense, and other 62 (3) Includes one-time tax benefits, costs related to governance changes, and other one-time items (4) Excluding utility costs to achieve, severance costs and amounts with revenue offsets (1) Peer selection based on highest average P/E multiple from 2011-2020 (excluding AWK, ES and NEE due to business mix); Premium Utilities include AEE, CMS, LNT, WEC, and XEL. Refers to dividend per share growth as 63 reported through company’s most recent investor disclosures (1) $0.12 projected non-GAAP Utility EPS change refers to new low-end growth rate of 8% growth for 2021E-2024E and 6% through 2025 of $0.52 as compared to 6% former low end growth rate for 2021E-2025E of $0.40. 64 $0.15 projected non-GAAP Utility EPS change refers to new high-end growth rate of 8% through 2025E of $0.55 as compared to 6% former low end growth rate for 2021-2025 of $0.40 (1) Refers to non-GAAP Utility EPS annual growth rate for 2021E – 2030E (2) Refers to contingent forward sale agreement of 50M Energy Transfer common units, subject to the close of Enable and Energy Transfer merger (3) Refers to utility peers with generation: CMS, AEE, D, DTE, DUK, LNT, PPL, SO, WEC, XEL 67 (4) Consistent with Moody’s methodology (5) Inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets (6) Internal projection through 2030 (1) Projected year-end rate base is the total rate base at year end and includes amount not yet reflected in rates; Amounts shown may differ from regulatory filings. Rate Base figures in millions (2) IN forecasted 2021 rate base and equity content follow Ratemaking Approach. AR forecasted 2021 rate base and equity content follow Modified Balance Sheet Approach. (3) Includes assets related to Troy solar and Regional Expansion Criteria and Benefit (“RECB”). Rate of return does not reflect actual rate of return related to Troy solar and RECB 69 (4) TX Gas regulatory metrics reflect jurisdictional average (5) Settlements in MN and OH do not explicitly establish ROE and capital structure (6) Does not reflect recently settled rate cases (7) Includes impacts of customer growth, weather, usage, and recoverable O&M (1) Includes AFUDC income and energy efficiency bonus, net of below the line operating and maintenance expenses (2) Includes income from Mobile Energy Solutions, CenterPoint Energy Interstate Pipeline, Home Service Plus (reported within Natural Gas segment) and income from Energy Systems Group (reported within Corporate and 70 Other segment) (3) Includes net interest expense of ~$(30M), income allocated to preferred shareholders of ~$(85M), and miscellaneous and one-time items of $10M - $15M. All amounts are net of taxes (4) Excludes corporate allocations allocated to midstream investments expected to be $10M - $15M based on relative earnings contributions, subject to an assumption related to timing of Enable and Energy Transfer merger (1) Projected year-end rate base is the total rate base for the year and not just the amount that has been reflected in rates; Amounts shown may differ from regulatory filings. Rate Base figures in millions (2) Includes capital leases related to recent Texas legislation opportunities (3) IN forecasted 2022 rate base and equity content follow Ratemaking Approach (4) Includes assets related to Troy solar and RECB. Rate of return does not reflect actual rate of return related to Troy solar and RECB 71 (5) TX Gas regulatory metrics reflect jurisdictional average (6) Settlements in MN and OH do not explicitly establish ROE and capital structure (7) Reflect recently settled rate cases (8) Includes impacts of customer growth, weather, usage, and recoverable O&M CenterPoint Energy Analyst Day – September 2021 91Appendix Endnotes: Slide Notes (1) Refers to projected non-GAAP Utility EPS annual growth rate (2) Includes customer growth, rate relief, depreciation, interest expense, and other 62 (3) Includes one-time tax benefits, costs related to governance changes, and other one-time items (4) Excluding utility costs to achieve, severance costs and amounts with revenue offsets (1) Peer selection based on highest average P/E multiple from 2011-2020 (excluding AWK, ES and NEE due to business mix); Premium Utilities include AEE, CMS, LNT, WEC, and XEL. Refers to dividend per share growth as 63 reported through company’s most recent investor disclosures (1) $0.12 projected non-GAAP Utility EPS change refers to new low-end growth rate of 8% growth for 2021E-2024E and 6% through 2025 of $0.52 as compared to 6% former low end growth rate for 2021E-2025E of $0.40. 64 $0.15 projected non-GAAP Utility EPS change refers to new high-end growth rate of 8% through 2025E of $0.55 as compared to 6% former low end growth rate for 2021-2025 of $0.40 (1) Refers to non-GAAP Utility EPS annual growth rate for 2021E – 2030E (2) Refers to contingent forward sale agreement of 50M Energy Transfer common units, subject to the close of Enable and Energy Transfer merger (3) Refers to utility peers with generation: CMS, AEE, D, DTE, DUK, LNT, PPL, SO, WEC, XEL 67 (4) Consistent with Moody’s methodology (5) Inclusive of Houston Electric, Indiana Electric Integrated and Natural Gas Distribution business segments. Excluding utility costs to achieve, severance costs and amounts with revenue offsets (6) Internal projection through 2030 (1) Projected year-end rate base is the total rate base at year end and includes amount not yet reflected in rates; Amounts shown may differ from regulatory filings. Rate Base figures in millions (2) IN forecasted 2021 rate base and equity content follow Ratemaking Approach. AR forecasted 2021 rate base and equity content follow Modified Balance Sheet Approach. (3) Includes assets related to Troy solar and Regional Expansion Criteria and Benefit (“RECB”). Rate of return does not reflect actual rate of return related to Troy solar and RECB 69 (4) TX Gas regulatory metrics reflect jurisdictional average (5) Settlements in MN and OH do not explicitly establish ROE and capital structure (6) Does not reflect recently settled rate cases (7) Includes impacts of customer growth, weather, usage, and recoverable O&M (1) Includes AFUDC income and energy efficiency bonus, net of below the line operating and maintenance expenses (2) Includes income from Mobile Energy Solutions, CenterPoint Energy Interstate Pipeline, Home Service Plus (reported within Natural Gas segment) and income from Energy Systems Group (reported within Corporate and 70 Other segment) (3) Includes net interest expense of ~$(30M), income allocated to preferred shareholders of ~$(85M), and miscellaneous and one-time items of $10M - $15M. All amounts are net of taxes (4) Excludes corporate allocations allocated to midstream investments expected to be $10M - $15M based on relative earnings contributions, subject to an assumption related to timing of Enable and Energy Transfer merger (1) Projected year-end rate base is the total rate base for the year and not just the amount that has been reflected in rates; Amounts shown may differ from regulatory filings. Rate Base figures in millions (2) Includes capital leases related to recent Texas legislation opportunities (3) IN forecasted 2022 rate base and equity content follow Ratemaking Approach (4) Includes assets related to Troy solar and RECB. Rate of return does not reflect actual rate of return related to Troy solar and RECB 71 (5) TX Gas regulatory metrics reflect jurisdictional average (6) Settlements in MN and OH do not explicitly establish ROE and capital structure (7) Reflect recently settled rate cases (8) Includes impacts of customer growth, weather, usage, and recoverable O&M CenterPoint Energy Analyst Day – September 2021 91
Appendix Endnotes: Slide Notes (1) Includes AFUDC income and energy efficiency bonus, net of below the line operating and maintenance expenses (2) Includes income from CenterPoint Energy Interstate Pipeline, Home Service Plus (reported within Natural Gas segment) and income from Energy Systems Group (reported within Corporate and Other segment) 72 (3) Includes net interest expense of ~$(35M), income allocated to preferred shareholders of ~$(50M), and miscellaneous of ~$10M. All amounts are net of taxes (4) Excludes corporate allocations allocated to midstream investments, subject to an assumption related to timing of Enable and Energy Transfer merger (1) Assuming filings for Certificate of Public Convenience and Necessity required for renewable projects are approved 73 (2) Includes Capital for AR and OK in 2021 74 (1) Includes Capital for AR and OK in 2021 (1) Includes capital expenditure that can be recovered through interim mechanisms and riders. Excludes capital expenditure that requires approvals of Certificate of Public Convenience and Necessity 75 (2) Includes capital expenditure that can be recovered through interim mechanisms but requires approvals of Certificate of Public Convenience and Necessity (3) Includes capital expenditure that can be recovered through interim mechanisms and riders. Includes capital expenditure for AR and OK in 2021 76 (1) Plan assumes renewable projects in process to be completed by 2024, subject to regulatory approvals and completion of successful commercial negotiations, regulatory approval and / or construction, among other things (1) Based on 4.6 metric tons per year from typical passenger car, per EPA (https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle#tailpipe-emissions) 78 (2) Based on current Houston Electric’s rates and 4,000 kWh of usage per EV per year (1) Fixed network integration in Houston and Evansville only 79 80 (1) Data as of 6/30/2021 81 (1) Data as of 6/30/2021 (1) Energy Services segment (2) Infrastructure Services segment (3) Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted EPS. EPS figures for Utility Operations, Midstream Investments, Corporate and Other and Discontinued Operations are non-GAAP financial measures. 86 (4) Taxes are computed based on the impact removing such item would have on tax expense (5) Comprised of common stock of AT&T Inc. and Charter Communications, Inc. (6) Corporate and Other, plus income allocated to preferred shareholders (7) Results related to discontinued operations are excluded from the company's non-GAAP results CenterPoint Energy Analyst Day – September 2021 92Appendix Endnotes: Slide Notes (1) Includes AFUDC income and energy efficiency bonus, net of below the line operating and maintenance expenses (2) Includes income from CenterPoint Energy Interstate Pipeline, Home Service Plus (reported within Natural Gas segment) and income from Energy Systems Group (reported within Corporate and Other segment) 72 (3) Includes net interest expense of ~$(35M), income allocated to preferred shareholders of ~$(50M), and miscellaneous of ~$10M. All amounts are net of taxes (4) Excludes corporate allocations allocated to midstream investments, subject to an assumption related to timing of Enable and Energy Transfer merger (1) Assuming filings for Certificate of Public Convenience and Necessity required for renewable projects are approved 73 (2) Includes Capital for AR and OK in 2021 74 (1) Includes Capital for AR and OK in 2021 (1) Includes capital expenditure that can be recovered through interim mechanisms and riders. Excludes capital expenditure that requires approvals of Certificate of Public Convenience and Necessity 75 (2) Includes capital expenditure that can be recovered through interim mechanisms but requires approvals of Certificate of Public Convenience and Necessity (3) Includes capital expenditure that can be recovered through interim mechanisms and riders. Includes capital expenditure for AR and OK in 2021 76 (1) Plan assumes renewable projects in process to be completed by 2024, subject to regulatory approvals and completion of successful commercial negotiations, regulatory approval and / or construction, among other things (1) Based on 4.6 metric tons per year from typical passenger car, per EPA (https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle#tailpipe-emissions) 78 (2) Based on current Houston Electric’s rates and 4,000 kWh of usage per EV per year (1) Fixed network integration in Houston and Evansville only 79 80 (1) Data as of 6/30/2021 81 (1) Data as of 6/30/2021 (1) Energy Services segment (2) Infrastructure Services segment (3) Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted EPS. EPS figures for Utility Operations, Midstream Investments, Corporate and Other and Discontinued Operations are non-GAAP financial measures. 86 (4) Taxes are computed based on the impact removing such item would have on tax expense (5) Comprised of common stock of AT&T Inc. and Charter Communications, Inc. (6) Corporate and Other, plus income allocated to preferred shareholders (7) Results related to discontinued operations are excluded from the company's non-GAAP results CenterPoint Energy Analyst Day – September 2021 92
ADDITIONAL INFORMATION Use of Non-GAAP Financial Measures In this presentation and the oral statements made in connection herewith, CenterPoint Energy presents non-GAAP Utility net income, non-GAAP Utility earnings per share (“Utility EPS”) and non-GAAP long-term funds from operations (“FFO”) which are not generally accepted accounting principles (“GAAP”) financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. 2021 Utility EPS includes net income from Electric and Natural Gas segments, as well as after tax Corporate and Other operating income and an allocation of corporate overhead based upon the Utility’s relative earnings contribution. Corporate overhead consists primarily of interest expense, preferred stock dividend requirements, and other items directly attributable to the parent along with the associated income taxes. Utility EPS excludes (a) earnings or losses from the change in value of CenterPoint Energy's 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 (“ZENS”) and related securities, (b) certain expenses associated with Vectren merger integration, (c) Midstream Investments segment and associated income from the Enable preferred units and a corresponding amount of debt in addition to an allocation of associated corporate overhead and impact, including related expenses, associated with the merger between Enable and Energy Transfer, (d) cost associated with the early extinguishment of debt and (e) gain and impact, including related expenses, associated with gas LDC sales. 2021 Utility EPS does not consider the items noted above and other potential impacts, such as changes in accounting standards, impairments or other unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. 2021 Utility EPS also considers assumptions for certain significant variables that may impact earnings, such as customer growth and usage including normal weather, throughput, recovery of capital invested, effective tax rates, financing activities and related interest rates and regulatory and judicial proceedings. In addition, the 2021 Utility EPS guidance range assumes a continued re-opening of the economy in CenterPoint Energy's service territories throughout 2021.To the extent actual results deviate from these assumptions, the 2021 Utility EPS guidance range may not be met or the projected annual Utility EPS growth rate may change. CenterPoint Energy is unable to present a quantitative reconciliation of forward-looking non-GAAP Utility net income, Utility EPS and long- term FFO because changes in the value of ZENS and related securities, future impairments and other unusual items are not estimable and are difficult to predict due to various factors outside of management’s control. The appendix to this presentation contains a reconciliation of income (loss) available to common shareholders and diluted earnings (loss) per share to the basis used in providing guidance. Management evaluates the Company’s financial performance in part based on non-GAAP Utility net income, Utility EPS and long-term FFO. Management believes that presenting these non-GAAP financial measures enhances an investor’s understanding of CenterPoint Energy’s overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods. The adjustments made in these non-GAAP financial measures exclude items that Management believes do not most accurately reflect the Company’s fundamental business performance. These excluded items are reflected in the reconciliation tables, where applicable. CenterPoint Energy’s non-GAAP Utility net income, Utility EPS and long-term FFO, which are non-GAAP financial measures, should be considered as a supplement to, and not as a substitute for, or superior to, income available to common shareholders, diluted earnings per share, and net cash provided by operating activities which, respectively, are the most directly comparable GAAP financial measures. These non-GAAP financial measures also may be different than non-GAAP financial measures used by other companies. Net Zero Disclaimer While we believe that we have a clear path towards achieving our net zero emissions (Scope 1 and Scope 2) by 2035 goals, our analysis and path forward required us to make a number of assumptions. These goals and underlying assumptions involve risks and uncertainties and are not guarantees. Should one or more of our underlying assumptions prove incorrect, our actual results and ability to achieve net zero emissions by 2035 could differ materially from our expectations. Certain of the assumptions that could impact our ability to meet our net zero emissions goals include: emission levels, service territory size and capacity needs remaining in line with Company expectations (inclusive of changes related to the sale of our natural gas businesses in Arkansas and Oklahoma); regulatory approval of our generation transition plan; impacts of future environmental regulations or legislation; impacts of future carbon pricing regulation or legislation; price and availability of carbon offsets; price of fuel, such as natural gas; cost of energy generation technologies, such as wind and solar, natural gas and storage solutions; adoption of alternative energy by the public, including adoption of electric vehicles; rate of technology innovation with regards to alternative energy resources; our ability to implement our modernization plans for our pipelines and facilities; retirement dates of our coal facilities by 2035; and enhancement of energy efficiencies. Please also review the section entitled “Cautionary Statement and Other Disclaimers” included in this presentation. CenterPoint Energy Analyst Day – September 2021 93ADDITIONAL INFORMATION Use of Non-GAAP Financial Measures In this presentation and the oral statements made in connection herewith, CenterPoint Energy presents non-GAAP Utility net income, non-GAAP Utility earnings per share (“Utility EPS”) and non-GAAP long-term funds from operations (“FFO”) which are not generally accepted accounting principles (“GAAP”) financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure. 2021 Utility EPS includes net income from Electric and Natural Gas segments, as well as after tax Corporate and Other operating income and an allocation of corporate overhead based upon the Utility’s relative earnings contribution. Corporate overhead consists primarily of interest expense, preferred stock dividend requirements, and other items directly attributable to the parent along with the associated income taxes. Utility EPS excludes (a) earnings or losses from the change in value of CenterPoint Energy's 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 (“ZENS”) and related securities, (b) certain expenses associated with Vectren merger integration, (c) Midstream Investments segment and associated income from the Enable preferred units and a corresponding amount of debt in addition to an allocation of associated corporate overhead and impact, including related expenses, associated with the merger between Enable and Energy Transfer, (d) cost associated with the early extinguishment of debt and (e) gain and impact, including related expenses, associated with gas LDC sales. 2021 Utility EPS does not consider the items noted above and other potential impacts, such as changes in accounting standards, impairments or other unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. 2021 Utility EPS also considers assumptions for certain significant variables that may impact earnings, such as customer growth and usage including normal weather, throughput, recovery of capital invested, effective tax rates, financing activities and related interest rates and regulatory and judicial proceedings. In addition, the 2021 Utility EPS guidance range assumes a continued re-opening of the economy in CenterPoint Energy's service territories throughout 2021.To the extent actual results deviate from these assumptions, the 2021 Utility EPS guidance range may not be met or the projected annual Utility EPS growth rate may change. CenterPoint Energy is unable to present a quantitative reconciliation of forward-looking non-GAAP Utility net income, Utility EPS and long- term FFO because changes in the value of ZENS and related securities, future impairments and other unusual items are not estimable and are difficult to predict due to various factors outside of management’s control. The appendix to this presentation contains a reconciliation of income (loss) available to common shareholders and diluted earnings (loss) per share to the basis used in providing guidance. Management evaluates the Company’s financial performance in part based on non-GAAP Utility net income, Utility EPS and long-term FFO. Management believes that presenting these non-GAAP financial measures enhances an investor’s understanding of CenterPoint Energy’s overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods. The adjustments made in these non-GAAP financial measures exclude items that Management believes do not most accurately reflect the Company’s fundamental business performance. These excluded items are reflected in the reconciliation tables, where applicable. CenterPoint Energy’s non-GAAP Utility net income, Utility EPS and long-term FFO, which are non-GAAP financial measures, should be considered as a supplement to, and not as a substitute for, or superior to, income available to common shareholders, diluted earnings per share, and net cash provided by operating activities which, respectively, are the most directly comparable GAAP financial measures. These non-GAAP financial measures also may be different than non-GAAP financial measures used by other companies. Net Zero Disclaimer While we believe that we have a clear path towards achieving our net zero emissions (Scope 1 and Scope 2) by 2035 goals, our analysis and path forward required us to make a number of assumptions. These goals and underlying assumptions involve risks and uncertainties and are not guarantees. Should one or more of our underlying assumptions prove incorrect, our actual results and ability to achieve net zero emissions by 2035 could differ materially from our expectations. Certain of the assumptions that could impact our ability to meet our net zero emissions goals include: emission levels, service territory size and capacity needs remaining in line with Company expectations (inclusive of changes related to the sale of our natural gas businesses in Arkansas and Oklahoma); regulatory approval of our generation transition plan; impacts of future environmental regulations or legislation; impacts of future carbon pricing regulation or legislation; price and availability of carbon offsets; price of fuel, such as natural gas; cost of energy generation technologies, such as wind and solar, natural gas and storage solutions; adoption of alternative energy by the public, including adoption of electric vehicles; rate of technology innovation with regards to alternative energy resources; our ability to implement our modernization plans for our pipelines and facilities; retirement dates of our coal facilities by 2035; and enhancement of energy efficiencies. Please also review the section entitled “Cautionary Statement and Other Disclaimers” included in this presentation. CenterPoint Energy Analyst Day – September 2021 93