Houston City Council delays CenterPoint Energy rate increases for 45 days, pending further review

On April 19, Houston City Council members passed a motion to delay CenterPoint Energy rate increases for 45 days.

The move pushes the rate increase to take effect June 15 and will allow time for the city of Houston to review the request and make recommendations, officials said.

CenterPoint is asking for the following changes: a $2.47 increase for residential customers from $19.74 per customer per month to $22.21; a $3.73 for small general service customers from $24.50 per customer per month to $28.23; and a $70.73 rate increase for large general service customers from $290.11 per customer per month to $360.84. The increases would total $35.5 million in new revenue for CenterPoint.

CenterPoint also sought an $84.6 million incremental increase to its distribution cost recovery factor, which, according to CenterPoint, is an annual tool that accounts for the adjustments in electricity rates. This increase has been delayed until June 4.

Similarly, the council delayed until June 15 an item from Universal Natural Gas that would increase its revenue from retail gas customers to $3.6 million.

These rate delays come as two companion bills in the Texas Legislature, Senate Bill 814 and House Bill 2127, are being considered. These bills, if passed, would eliminate Houston's right to negotiate future rate increases with CenterPoint, among other sweeping changes that would transfer power from cities in Texas to the state.