The overview
The restoration costs will add about $2 per month to the average customer’s electricity bill, with the rate change expected to take effect later this year or early next year, according to an Oct. 6 statement from CenterPoint Energy.
The decision allows CenterPoint to spread the cost to residential customers across 15 years, saving more than $265 million in interest charges, per the statement.
During an Oct. 2 meeting, PUCT commissioners approved CenterPoint’s determination of “system restoration costs,” which include repairing past damages as well as preparing for future extreme weather events. CenterPoint is required to seek PUCT approval before issuing rate increases.
Some context
CenterPoint submitted an application with the PUCT in April for $1.3 billion for “reasonable and necessary” system restoration costs, or SRCs, related to Hurricane Beryl, Hurricane Francine and Winter Storm Enzo, according to the application filing.
However, in response, the Houston Coalition of Cities argued CenterPoint would essentially be charging customers for its “ineffective maintenance practices,” according to public filings.
According to an August settlement agreement, CenterPoint agreed to reduce its initial SRC determination by $22 million and deferred an additional $78 million, which may be taken up in a future rate case.
In an Oct. 1 memo, PUCT Chairman Thomas J. Gleeson expressed concern with CenterPoint’s requested costs related to Hurricane Francine—totaling $23.49 million—as the storm ultimately changed course away from Texas and did not cause any CenterPoint outages.
However, commissioners at the Oct. 2 meeting ultimately agreed to approve the SRCs to avoid disincentivizing utility companies from preparing for storms.
“Given CenterPoint’s recent experience, I understand the need for precaution and don’t want to do anything to provide disincentives for them doing the work they feel they need to do,” Gleeson said at the Oct. 2 meeting.
Looking back
According to previous Community Impact reporting, more than 2.2 million customers in the Greater Houston area lost power during Hurricane Beryl in July 2024, and over 4,400 Harris County homes were damaged. The Category 1 storm led to an estimated $32 billion in losses nationwide.
In a separate rate case, CenterPoint agreed to a 2% decrease, or approximately $1 per month, for Houston residents following backlash over Hurricane Beryl, Community Impact previously reported.
As for Winter Storm Enzo, which hit Houston in January, only about 28,500 CenterPoint Energy customers lost power, with most of the outages resolved within 24 hours. City of Houston officials reported minimal damage from the storm, according to Community Impact.
