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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.