Houstonians’ next electricity bills may be higher, following a rate increase by CenterPoint – Houston Public Media

Gabriel C. Pérez

As September comes to a close, many Harris County residents may notice a higher-than-usual energy bill thanks to a rate increase by CenterPoint Energy that went into effect at the beginning of this month.

Under the new rates, the fixed charge will remain the same at $4.39 a month but the usage-based charge will increase from 3.87 cents per kilowatt hour to 5.35 cents per kilowatt hour. For an average household using 1,000 kilowatts, the new total cost equates to $57.90 a month.

CenterPoint owns the powerlines and is in charge of power transmission. They are not the direct retail energy provider so their fees are typically passed onto the consumer by their chosen utility company.

This increase comes as CenterPoint has continued to receive backlash for its failure to quickly restore power following Hurricane Beryl in July. During the storm, more than 2.2 million residents and businesses — or approximately 80% of CenterPoint Energy customers — lost power. For more than a week afterward, hundreds of thousands remained without electricity. The storm also caused the death of 42 people in the Houston area, several of the deaths were attributed to the loss of power.

In August, CenterPoint began walking back an earlier request to increase rates by an additional $1.25 per month. This rate increase would have raised the company’s revenue by more than $17 million but the company said it requested the withdrawal as “part of a company-wide commitment to act urgently and immediately to improve and strengthen the resiliency of the energy system during this hurricane season.”

Later that same month, CenterPoint CEO Jason P. Wells sent a letter to representatives outlining the company’s plan to invest $5 billion into resiliency over the next 10 years and to forgo more than half of the company’s estimated mobile generator profits.

Next month, the Texas Public Utility Commission will be hosting a public workshop in Houston to discuss utility preparedness and response to severe storms. Residents will also have the opportunity to share their experiences during Hurricane Beryl.

The meeting is scheduled for 9 a.m. on Saturday, Oct.5, at the 5th-floor conference center of the Ronald Reagan Building — located at 6300 Irvington Boulevard, Houston.

In a statement to Houston Public Media, CenterPoint said this will be the first major rate increase in 10 years.

“While we continue to undertake a historic level of resiliency actions and investment to be better prepared for the next major storm, CenterPoint Energy remains committed to affordability, as reflected by the fact that customer rates that pay for the Transmission & Distribution system have remained relatively flat over the past 10 years,” the statement said. “CenterPoint will continue to prioritize customer affordability, including by conducting an independent third-party assessment of the benefits and costs of its longer-term investments.”

Editors note: This article was updated on Sept. 27 to include a statement from CenterPoint.