CenterPoint Energy settles rate case, will lower power costs for customers
More than six months after CenterPoint Energy came under fire for its response to Hurricane Beryl — and its proposal to raise its rates — Houston's main electricity company announced Wednesday that it reached a settlement that will lower customers' bills.
Instead of the proposed rate increase that the company had requested shortly before Beryl made landfall, most CenterPoint Energy customers will have their average bill reduced by about $1 per month moving forward — pending approval from the Public Utility Commission of Texas.
Centerpoint withdrew its rate increase proposal on Aug. 1 amid the Beryl backlash.
'Following customer feedback and constructive discussions with intervening parties over the last several months, this plan keeps our customers at the forefront and supports CenterPoint's ultimate goal of building the most resilient coastal grid in the country," Jason Ryan, CenterPoint's executive vice president of regulatory services and government affairs, said in a Wednesday statement.
CenterPoint faced public outrage and sharp criticism from Texas lawmakers after more than 2 million households and businesses lost power after Beryl struck the city, prompting a public apology from the company's CEO. At least 23 people in Texas died from the storm and associated power outages. Beryl also caused about $1.2 billion to $1.3 billion in damages to CenterPoint's electrical infrastructure.
Texas Gov. Greg Abbott criticized the utility for its response to Beryl, which left hundreds of thousands of customers in Houston without power nearly a week after the hurricane struck. In July, he said the state may have to reconsider how much territory CenterPoint could serve if the company didn't 'fix its ongoing problems.' CenterPoint serves more than 2.6 million customers across the greater Houston area and coastal communities like Galveston.
In addition to calling on CenterPoint to create a detailed plan about how it would restore power, the governor also asked the PUC to investigate the utility's response. The PUC presented their findings in a November report that said customers had trouble getting reliable information during Beryl and recommended that lawmakers pass legislation requiring utility companies to provide information about power restoration during outages.
The same investigation also recommended more than a dozen improvements to CenterPoint's emergency plans, communications and vegetation management. The PUC announced in November that it would also hire an outside company to audit CenterPoint, with results expected in April.
In August, Attorney General Ken Paxton also opened a criminal investigation into CenterPoint to examine allegations of fraud, waste and improper use of taxpayer funds.
After Beryl hit, CenterPoint President and CEO Jason Wells vowed to improve the company's communications and the electrical system's resiliency. In early August, CenterPoint launched a new outage tracker. The previous tracker had been offline for several months before Beryl struck.
During its Beryl response, CenterPoint also faced criticism for not utilizing massive generators designed to help during extended power outages. The PUC had allowed CenterPoint to charge its customers to help pay for the $800 million needed to lease the generators and make a profit.
In Wednesday's statement, CenterPoint said it 'would make no revenue or profit off of the temporary emergency generator proposal,' suggesting that customers would no longer be on the hook to help pay for the generators. The change comes after lawmakers, including Lt. Gov. Dan Patrick, called on the PUC to block CenterPoint from passing that cost onto its customers.
CenterPoint is also proposing moving the emergency generators to the San Antonio area for two years starting this spring to help the Electric Reliability Council of Texas, which manages the state power grid, address any potential energy shortfalls this summer. The proposed change is subject to approval from ERCOT.
Disclosure: CenterPoint Energy has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBS News
3 hours ago
- CBS News
North Texas lawmakers split on President Trump's airstrikes in Iran
North Texas lawmakers from both sides of the aisle are sharing their thoughts on the country's strikes on Iranian nuclear facilities. Supporters of the president's actions believe the Operation Midnight Hammer is necessary for the country's and world's safety, while opponents said President Donald Trump should have gotten Congress' approval before bombing Iran. Republican Congressman Keith Self, who represented parts of Collin County, said the offensive strikes were an act of national security by the President. "The president's been very clear. They cannot have a nuclear weapon. The intelligence said they were starting to move in that direction with all of the pile that they have of enriched uranium, so he made the decision as a defensive move to make sure they would never endanger the homeland, the American homeland, with a nuclear weapon," Self said. Texas Gov. Greg Abbott took to X to show his support for the actions of Mr. Trump, posting, "I stand with Donald Trump and the United States of America." Abbott shared details about the state's response in another post: "As we unite as a Nation, we as a state must remain vigilant to secure our homeland. To ensure the highest level of safety in our communities, and out of an abundance of caution, Texas is elevating the readiness of our Texas Department of Public Safety troopers and Texas National Guard, increasing patrols around high-risk locations and ensuring our state is fully prepared to address any threat. At this time, there is no need to worry. We want to keep it that way. Texas stands with America's Commander-in-Chief. We will defend our communities and support our troops." It's a very different tone from Dallas Congresswoman Jasmine Crockett. The Democrat posted on Facebook and spoke about the Constitution requiring the president to authorize military force with Congress before launching a strike. "That is not how you deal with things. There is such a thing as diplomacy, and we are living in this time in which there is someone who is occupying the White House who does not care about any rules, any norms, any laws, nor the Constitution. We cannot be a civilized country if there is no law and order," Crockett said in part of the video.
Yahoo
4 hours ago
- Yahoo
Texas will require permits for self-driving cars starting in September
Starting September 1, fully autonomous cars will require a permit to operate in Texas. This new restriction comes after the state's governor, Greg Abbott, signed into law the SB 2807 bill that requires authorization from the state's Department of Motor Vehicles for self-driving cars on public streets without human interaction. The signing of the new law coincides with Tesla's launch of its robotaxi service in Austin today where invited guests got to ride in fully autonomous Model Ys. While the law doesn't go into effect until a few months later, Tesla's robotaxi launch could have skirted this new regulation since all rides are accompanied by a human "safety monitor" in the front passenger seat. In the coming months, Texas' new law may prove to be more than just a headache for Tesla. Besides the permits, the upcoming regulation allows state authorities the ability to revoke permits and requires companies to provide methods of dealing with self-driving cars in emergency situations to police and first responders. While this could become a serious hurdle for Tesla, it's also likely to affect Waymo, since it currently operates an autonomous ride-hailing service in Austin.
New York Post
6 hours ago
- New York Post
New Texas law will require Ten Commandments to be posted in every public school classroom
Texas will require all public school classrooms to display the Ten Commandments under a new law that will make the state the nation's largest to attempt to impose such a mandate. Gov. Greg Abbott announced Saturday that he signed the bill, which is expected to draw a legal challenge from critics who consider it an unconstitutional violation of the separation of church and state. A similar law in Louisiana was blocked when a federal appeals court ruled Friday that it was unconstitutional. Arkansas also has a similar law that has been challenged in federal court. Advertisement 4 Gov. Greg Abbott announced Saturday that he signed the bill, which is expected to draw a legal challenge from critics. James Breeden for the NY Post The Texas measure easily passed in the Republican-controlled state House and Senate in the legislative session that ended June 2. 'The focus of this bill is to look at what is historically important to our nation educationally and judicially,' Republican state representative Candy Noble, a co-sponsor of the bill, said when it passed the House. Advertisement Abbott also signed a bill that allows school districts to provide students and staff a daily voluntary period of prayer or time to read a religious text during school hours. 4 The Texas measure easily passed in the Republican-controlled state House and Senate in the legislative session that ended June 2. AP The Ten Commandments laws are among efforts, mainly in conservative-led states, to insert religion into public schools. Texas' law requires public schools to post in classrooms a 16-by-20-inch (41-by-51-centimeter) poster or framed copy of a specific English version of the commandments, even though translations and interpretations vary across denominations, faiths and languages and may differ in homes and houses of worship. Advertisement 4 The Ten Commandments laws are among efforts, mainly in conservative-led states, to insert religion into public schools. Jay Janner/American-Statesman / USA TODAY NETWORK via Imagn Images Supporters say the Ten Commandments are part of the foundation of the United States' judicial and educational systems and should be displayed. Opponents, including some Christian and other faith leaders, say the Ten Commandments and prayer measures infringe on others' religious freedom. A letter signed this year by dozens of Christian and Jewish faith leaders opposing the bill noted that Texas has thousands of students of other faiths who might have no connection to the Ten Commandments. Texas has nearly 6 million students in about 9,100 public schools. Advertisement 4 Opponents, including some Christians, say the Ten Commandments and prayer measures infringe on others' religious freedom. AP In 2005, Abbott, who was state attorney general at the time, successfully argued before the Supreme Court that Texas could keep a Ten Commandments monument on the grounds of its Capitol. Louisiana's law has twice been ruled unconstitutional by federal courts, first by U.S. District Judge John deGravelles and then again by a three-judge panel of the 5th U.S. Circuit Court of Appeals, which also considers cases from Texas. State Attorney General Liz Murrell said she would appeal and pledged to take it to the U.S. Supreme Court if necessary.
