A closer look
The first application denied was the Distribution Cost Recovery Factor rate originally filed Feb. 28, according to the Houston City Council agenda item. The DCRF rate increase would have helped cover the cost of the company's ongoing investments, replace aging infrastructure and bolster the system to build resiliency, according to the proposal.
CenterPoint requested a revenue requirement increase of $122.6 million, which would have led to customers experiencing a $2.22 increase to the monthly bill.
What else?
The other application was the Gas Reliability Infrastructure Program interim rate adjustment filed Feb. 18 with the Railroad Commission of Texas. GRIP allows natural gas utilities to recover costs related to making safety and reliability upgrades to its natural gas system, with CenterPoint pointing to projects conducted from October 2023 to December 2024, according to the company’s fact sheet.
These projects included:
- Investments to replace 300 miles of natural gas pipes across Texas
- Installing 175,000 new Intelis gas meters with improved safety and accuracy features
According to the customer notice, if approved by the Railroad Commission, Houston customers could see the following increases.
This suspension period will provide Houston’s rate experts the time to review the request, address potential corrections to the calculations with CenterPoint and prepare a final recommendation for consideration by the mayor and City Council, according to the agenda item.
