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On June 26, 2026 Centerpoint Houston filed aStipulation And Settlement Agreementwith Texas PUC Staff and several parties to lower the amount charged to retail electric providers under Rider Temporary Emergency Electric Energy Facility or TEEEF.

The parties to this stipulation and settlement agreement (“Agreement”) include CenterPoint Energy Houston Electric, LLC (“CenterPoint Houston”), Houston Coalition of Cities, Texas Coast Utilities Coalition, Gulf Coast Coalition of Cities, and Public Utility Commission of Texas (“Commission”) Staff.

Note that the Office of Public Utility Counsel, Texas Consumer Association, Texas Industrial Energy Consumers and Texas Energy Association for Marketers are unopposed to the settlement.

The Signatories agree that CenterPoint Houston’s Rider TEEEF rate effective August 15, 2026, will reflect the removal of the fifteen 32 MW and five 5.7 MW TEEEF units from CenterPoint Houston’s TEEEF fleet.  As result, CenterPoint Houston will implement updated TEEEF rates using a new annual TEEEF revenue requirement of $41,438,571 to recover balances recorded as of August 15, 2026. This represents a reduction of approximately $49,000,000 to CenterPoint Houston’s requested annual TEEEF revenue requirement of $91,055,626 and results in a Rider TEEEF monthly rate reduction of $1.65 for the average residential customer.

The Signatories agree and intend for the Rider TEEEF rates shown on Exhibit A that result from the stipulated revenue requirement will be effective August 15, 2026.

The settlement’s TEEEF rates from Attachment A are below:

TEEEF EFFECTIVE FOR SCHEDULED METER READ DATES ON/AFTER AUGUST 15, 2026.

Rate Class                                  TEEEF Charge                                 Billing Units

Residential Service                   $0.000742                                         per kWh

Secondary Service                    $0.000378                                         per kWh

Less Than or Equal to

10 kVA

Secondary Service

Greater Than 10 kVA                    $0.133331                                         per Billing kVA

Primary Service                            $0.118706                                         per Billing kVA

Transmission Service                  $-                                                        per 4CP kVA

Lighting Services                         $0.000554                                         per kWh

As background, on April 18, 2025, CenterPoint Houston filed an Application for authorization to reduce its Temporary Emergency Electric Energy Facility (“TEEEF”) capacity and rates.  Specifically, the Application requests that the Commission authorize CenterPoint Houston to make fifteen 32 megawatt (“MW”) TEEEF units previously leased by CenterPoint Houston available to the Electric Reliability Council of Texas (“ERCOT”) at CPS Energy facilities after May 1, 2025, and to remove its 5.7 MW TEEEF units from CenterPoint Houston’s TEEEF fleet by December 31, 2025.