After months of talks, CenterPoint Energy has settled its 2024 rate dispute, and consumers in the Houston area will start to get a decrease on their monthly residential and small business rates.
CenterPoint estimates that the rate cut will cost the corporation $50 million annually, with residential customers experiencing a monthly rate reduction of $0.82 and small business customers experiencing a monthly rate reduction of $1.28.
In a statement, Jason Ryan, executive vice president of regulatory services and government affairs at CenterPoint, stated, “We are all dedicated to keeping up our efforts to satisfy our customers’ needs and deliver the dependable, secure, and reasonably priced service that they expect and deserve.”
According to the statement, the rate reduction proposal is the result of several months of customer input and talks with relevant stakeholders.
The ruling also follows the retraction of a March request by the largest energy utility business in the Houston area, which generates hundreds of millions of dollars in profits, to hike its rate, which would have increased consumers’ bills by $1.25 a month. Additionally, the raise would have generated $17 million more revenue for the business.
After the May derecho and Hurricane Beryl devastated Houston in July, causing millions of dollars in losses, the rate raise proposal was rescinded last year. Days without electricity caused a surge in heat-related illnesses and fatalities among Houstonians, raising concerns about the company’s storm preparation.
In response to Governor Greg Abbott’s requests early this year, CenterPoint initiated a multi-phase improvement plan. Known as the Greater Houston Resiliency Initiative, the business started a year-round public emergency messaging campaign, installed or replaced 25,000 poles to satisfy extreme wind standards, and pruned vegetation around over 2,000 power lines.
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Every four years, the company’s base rate is reviewed by the Public Utility Commission of Texas.
In addition to addressing the large expenditures we have made to fortify our system for the benefit of customers, our settlement agreement with these parties would lower CenterPoint’s revenue and customer bills, Ryan stated on Wednesday.
