Electricity rates could go up under utility-backed Texas bills, critics warn. Here's what to know.

Claire Hao | Source: Houston Chronicle | Posted 05/27/2025

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If you've ever wondered why your electricity bill is getting more expensive, one reason is that utilities such as CenterPoint Energy are allowed by law to pass on their rising expenses maintaining, repairing and building power lines to customers, as well as earn a profit.

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Texas electricity rates may rise due to proposed legislation that alters the ratemaking process, which currently protects consumers from excessive charges. Utilities argue that the changes are necessary for financial stability as electricity demand increases, while critics claim the bills would benefit utilities at the expense of consumers. One bill would allow utilities to implement interim rate hikes before approval, while another would give them more control over their debt-to-equity ratios, potentially leading to higher profits and rates for customers.

Opponents of the bills, including representatives from cities and consumer advocacy groups, express concern that these changes would weaken consumer protections established after past crises. They argue that utilities are using temporary debt issues as a justification for permanent shifts in risk and costs to consumers. As the bills progress through the Texas Legislature, there is apprehension that they could be attached to other legislation, potentially leading to increased electricity costs for Texans in the future.

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Source Link: https://www.houstonchronicle.com/business/energy/article/electric-utility-rate-increase-bills-20342552.php

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Electricity rates could go up under utility-backed Texas bills, critics warn. Here's what to know.

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