CenterPoint Withdraws Request To Increase Electricity Rates

CenterPoint Energy said Thursday that it will be withdrawing a request to increase electricity rates by $1.25 per month, after receiving intense critiques for its response to power outages caused by Hurricane Beryl.

As first reported by the Houston Chronicle, CenterPoint’s request was filed in March and was aimed to recover $6 billion that the company has spent on power lines and poles in the Houston region since 2019. However, after Beryl caused widespread outages in CentrePoint’s service, the company has faced backlash for the slow process of recovery.

At least one consumer advocacy group argued that CenterPoint should not raise rates until an ongoing investigation by the Texas utility regulator is complete.

In a statement, CenterPoint said it would be withdrawing its rate case filing to be “laser focused” on improving the resiliency of the energy system for the hurricane season.

“We are acting urgently to strengthen our resiliency, improve our communications and emergency coordination,” CenterPoint President and CEO Jason Wells wrote in the statement. “We believe any delay or distraction from this mission is unacceptable. Our company’s collective focus for the remainder of this hurricane season will be on being ready: that is our mission. Nothing is more important than being ready for the next hurricane and rebuilding the trust of the community we are privileged to serve.”

The company also said it had a plan with more than 40 initial actions to address the resiliency of the electric system.

The proposed rate increase would have boosted CenterPoint’s annual revenue from delivering electricity by nearly $17 million, raising it to approximately $1.67 billion. CenterPoint also sought to increase its profit on capital investments from 9.4% to 10.4%.

CenterPoint is still awaiting approval for a $2.7 billion “resiliency plan” to strengthen its infrastructure ahead of possible weather disasters. This plan has also been widely criticized by consumer groups.

In addition, CenterPoint also plans to seek approval to pass on up to $1.7 billion of its costs for restoring power after the May derecho and Hurricane Beryl, executives told investors during an earnings call Tuesday.