What Is With The CenterPoint Scrutiny?
In recent months, Houston’s energy landscape has been hectic to say the least. At the heart is CenterPoint Energy, which finds itself embattled by its handling of prolonged May storms and Hurricane Beryl in July. The scrutiny of CenterPoint remains a hot topic among the media, politicians, and locals. With charges of misdeeds flying at the utility, what does this all mean for Houston wallets and the power grid?
The Mobile Generator Controversy
CenterPoint Energy’s troubles began with its $800 million purchase of 15 huge mobile generators. They were meant to give emergency power during crises. It sounded like a great idea, right? Costing an average of $2.87 per month on every Houston electric bill, the units should have prevented power outages like those during Winter Storm Uri in 2021. But did they? No.
When rough weather hit, these units sat idle. Instead, the utility borrowed smaller, mobile units from other utilities. This sparked criticism from Lt. Gov. Dan Patrick, who accused CenterPoint of failing to employ the costly items and thus harm Texans. This violated the spirit of post-Uri law changes, he said. Also, he urged the state’s utility oversight agency to revoke the firm’s ability to recover the $800 million cost.
Recovery Costs Piling Up
As a result of the storms, the utility said it will seek up to $1.7 billion in costs for storm recovery. This move means Houston families could face a 2.2% hike in their electricity bills over the next 15 years.
Criticism is mounting. In response, the company took back its request to increase customer rates by $1.25 per month. This was intended to cover $6 billion in capital outlay for grid improvements. Also, the company has withdrawn its proposed $2.7 billion resiliency plan. This plan explains how CenterPoint would have protected the grid against extreme weather and cybersecurity threats. But now, that plan is no more. Will the grid keep on failing?
More CenterPoint Scrutiny To Come
The future is complex and uncertain for Houston homes. While taking away the rate increase and resiliency plan might seem like a win for bills in the short term, the long-term effects are unclear.
Customers will still face a 2.2% hike in their bills for storm recovery costs. While the express impact of the rate increase may be less, families will still pay more for the next 15 years. The costs remain, but they’re spread out over time. With storm damage, the bill always comes due.
The decision to withdraw the rate increase and resiliency plan means that many of the critical questions about CenterPoint remain unresolved. Could Texans face the same problems again and again? Consumer advocates worry this may delay needed accountability for the utility’s decisions.
CenterPoint’s fate remains in flux. But your home power contract doesn’t have to be. Shop for power plans at http://www.texaselectricityratings.com to make sure you pay the lowest rate possible.