CenterPoint Energy agrees to move forward with rate review amid hike proposal

CenterPoint Energy announced late Friday it would proceed with its long-disputed rate review, ongoing since August. Alongside this announcement, the energy company presented a proposal to increase rates, aiming to recover costs from its response to severe weather in May. KPRC 2’s Amy Davis explains what is happening now and how it will impact your electric bill.

CenterPoint rate review background

Last March, CenterPoint requested a $60 million rate increase from the Public Utility Commission (PUC). If approved, this increase would add approximately $1.25 to the average customer’s monthly bill. This request was met with opposition from over 40 city leaders in CenterPoint’s service area, who argued the utility might be overcharging customers. Through numerous hearings, these cities have presented evidence to the PUC, aiming to prevent what they claim are unnecessary costs for customers.

RELATED: Why CenterPoint Energy is accused of overcharging customers for years

The debate was further complicated in August following Hurricane Beryl, when CenterPoint initially asked to pause the rate review process.

Arguments from the Recent PUC Meeting

The PUC meeting in Houston at 6300 Irvington. State leaders and members of the community came out to voice their concerns about CenterPoint. (Copyright 2024 by KPRC Click2Houston - All rights reserved.)

RELATED: Why do we have to use CenterPoint?

During a recent PUC meeting in October, representatives from both sides presented their cases:

”CenterPoint respectfully respects that the Commission grant this appeal, allow the company an opportunity to maintain momentum on completing important resiliency improvements before the next storm season,” Patrick Peters, CenterPoint Energy.

“There is no reason and certainly no good cause to postpone this rate case any further. Customers are being overcharged each month that this case gets delayed,” said Thomas Brocato, Gulf Coast Coalition of Cities.

“CenterPoint would be allowed by having their motion granted to effectively continue to over earn... continue to overcharge ratepayers,” said Alton Hall, Houston Community College (HCC).

CenterPoint told that for calendar year 2023, the company invested more in its system, resulting in $75 million more in costs that were not billed to customers for additional system improvements and vegetation management. “We do not expect to recover those costs,” a CenterPoint spokesperson wrote in an email to investigative reporter Amy Davis.

Below is the full release from CenterPoint explaining this latest rate review move.

CenterPoint’s additional rate hike proposal

In a separate request, CenterPoint has now filed to increase rates by an additional $450 million to recover expenses incurred from the May derecho storm, which caused extensive damage. This new proposal would add approximately $1 per month to customer bills over the next 15 years. If approved, the new charges would likely take effect in the second half of next year.

For more details on the ongoing rate dispute and its potential impact on electric bills, see these related articles:

KPRC 2’s Amy Davis will continue to bring the latest developments in the CenterPoint rate debate, along with explaining what it means for you and your bills.