Texas Public Utility Commission (PUC) will decide whether CenterPoint Energy can withdraw its request to raise rates –a movement that critics say would prevent customers from pushing for a potential rate reduction.
Initially, CenterPoint had sought a rate increase of $60 million, but filed a request in August to withdraw this increase after facing intense criticism over its response to Hurricane Beryl. According to the Houston Chronicle, groups representing Houston-area cities and consumers protested the withdrawal request.
An administrative law judge denied the company’s withdrawal request in August, but CenterPoint appealed this decision. Ultimately, the PUC will have the final decision.
Lt. Gov. Dan Patrick and Houston Mayor John Whitmire have publicly opposed the withdrawal, emphasizing the need for a rate review to determine if lower rates are warranted.
The company’s pending rate case uses 2023 as the model year to calculate its rates. However, Centerpoint suggested refiling its case next year using 2024 as the “test year.” City advocates worry that delaying the rate case until 2024 could give CenterPoint grounds for an even larger increase due to recent infrastructure investments.
PUC Chairman Thomas Gleeson said that incorporating 2024 data could give the agency an opportunity to hear more about VenterPoiny’s Beryl response.
“I worry that if we make a decision in a rate case that doesn’t also include 2024 with Beryl performance that Houstonians will not be satisfied with that either,” Gleeson said.
CenterPoint’s initial request for a $60 million rate increase would raise the average household’s electric bill by about $1.25 per month. City coalitions argued the company already is overcharging customers by $100 million per year and that there is “overwhelming evidence” supporting a rate decrease. However, the company argued a cut would scale down CenterPoint’s budget for vegetation management and projects that could improve resiliency.
