CenterPoint’s Puzzling Deal for Generators Faces New Scrutiny

Russell Gold and Sasha von Oldershausen | Source: Texas Monthly | Posted 08/07/2024

Did a relationship that began a decade ago between a chief executive of a Fortune 500 company and a recent college graduate lead to a controversial $818 million deal that Houston-area residents could be paying off for years? That’s a question elected officials and energy regulators may grapple with as new revelations arise about the contract that Lieutenant Governor Dan Patrick recently described as “potential fraud.”

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A controversial $818 million deal between CenterPoint and Life Cycle Power, approved by state officials to provide mobile power generators for extreme weather, is under scrutiny after the generators proved ineffective during Hurricane Beryl, leaving many Houston-area residents without power. Concerns have been raised about the bidding process for the deal, which involved a personal relationship between CenterPoint's former CEO, David Lesar, and a key figure at Life Cycle, Knoell Coombs, leading to allegations of favoritism in awarding the contract.

Despite challenges raised in regulatory filings and sworn testimony about the transparency and fairness of the bidding process, CenterPoint moved forward with the deal, resulting in criticism from lawmakers and energy experts. The deal, which aimed to provide mobile generators for emergencies, including hurricanes and arctic blasts, has sparked calls for further investigation into the decision-making process and potential conflicts of interest involved.

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Source Link: https://www.texasmonthly.com/news-politics/centerpoint-generators-life-cycle-power/

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CenterPoint’s Puzzling Deal for Generators Faces New Scrutiny

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