Houston-area cities fight CenterPoint’s proposed $1.3B rate hike for Hurricane Beryl, other storms

Claire Hao | Source: Houston Chronicle | Posted 08/01/2025

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  As the region’s primary electric distributor, CenterPoint is legally allowed to charge customers all of its “reasonable and necessary” costs preparing for and responding to extreme weather events. In exchange, its proposed rates must be scrutinized and approved by the Public Utility Commission of Texas, the state’s utility regulator. 


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Houston-area cities are opposing CenterPoint Energy's proposal to charge customers $1.3 billion for costs incurred during Hurricane Beryl and other storms. CenterPoint, the region's main electric distributor, claims it is entitled to recover all "reasonable and necessary" expenses related to extreme weather, but local representatives argue that over $200 million should be deducted from this request due to inadequate maintenance of infrastructure prior to the storm. They contend that the utility should not be allowed to charge for damages resulting from its own ineffective maintenance practices.

CenterPoint, however, defends its position, stating that the majority of the damage was caused by external factors such as high winds and vegetation. The proposed charges would increase the average household's electricity bill by approximately $2.13 per month. While both parties have agreed to postpone a hearing to negotiate a settlement, key disagreements remain regarding the total amount to be charged, particularly concerning potential double-counting of employee salaries in the storm-related expenses. An update on these discussions is anticipated before August 15.



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Source Link: https://www.houstonchronicle.com/business/energy/article/centerpoint-hurricane-beryl-charges-houston-20792229.php

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