HOUSTON – As KPRC 2 continues to look at the back-and-forth with CenterPoint Energy and ratepayers, the Public Utility Commission of Texas (PUC) approved moving forward with an audit of how the energy company is spending the money we all pay on out electric bills.
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Before the Derecho and Hurricane Beryl ravaged parts of the Greater Houston area, CenterPoint had requested a $60 million rate increase. This request was part of CenterPoint’s rate review, mandated by PUC rules every four years. The utility leaders of more than 40 cities in CenterPoint’s coverage area protested the increase. After studying more than 30 rate increases in the last 4 years, the city representatives presented evidence to show CenterPoint is overcharging customers by more than $100 million every year. The PUC had already authorized CenterPoint and these city leaders (called intervenors in the rate review) to negotiate and come to an agreement on an acceptable fair rate for electric customers. The two sides were in the middle of those negotiations when hurricane Beryl slammed into Houston. After the devastating hurricane, CenterPoint said it would just withdraw the review of its rates, effectively stopping all negotiations. A state administrative law judge ruled CenterPoint did not have the authority to back out of a mandated rate review. CenterPoint held firm and appealed the ruling with the PUC. Then days before the PUC was to vote on the issue, CenterPoint decided it would concede and continue negotiations with city leaders advocating on behalf of rate payers.
KPRC 2 has confirmed CenterPoint has reached out to the intervenors, including Houston city attorney Arturo Michel; to resume negotiations, but a date hasn’t been set yet.
During the PUC meeting Thursday, Commissioners took no action on the rate review item on the agenda since CenterPoint is no longer requesting a withdrawal.
RELATED: CenterPoint Energy agrees to move forward with rate review amid hike proposal
Once the agreement has been discussed, they are set to return to the PUC with a final answer.
SEE ALSO: CenterPoint releases independent third-party review of company’s Hurricane Beryl response
Additionally, the PUC voted to look for a third party to audit CenterPoint, citing Lt. Governor Dan Patrick’s call to investigate the energy giant’s use of mobile generators during their October hearing in Houston.
“We can look at how they evaluate customer needs for where the mobile generation needs to go, including looking at their emergency operation plan and how it deals with this,” PUC Chairman Thomas Gleeson said.
“It will hopefully allow the public that has any questions about CenterPoint currently to get some answers and move forward, and hopefully gain that trust back with their providers,” Commissioner Courtney Hjaltman added. “So we will get some good answers for them.”
Gleeson said he wants whoever completes the audit to have a report completed by April, in time to give the results to state lawmakers before the next Legislative session ends in May.
CenterPoint said they welcome the review and that the company is committed to being transparent and accountable.
CenterPoint releases independent third-party review of company’s Hurricane Beryl response
Here’s their full statement:
CenterPoint Energy is committed to working in full transparency and accountability and we welcome further review on this subject. As a reminder, the temporary generation procurement went through an open, transparent and thorough PUCT review process. It was also the subject of another third-party, independent review that found the procurement process to be competitive. CenterPoint has also engaged PA Consulting – a third-party consultancy with deep expertise in issues affecting utilities and other industries – to conduct a full review of CenterPoint’s Hurricane Beryl response, which we released publicly last month. As part of our commitment to improve, CenterPoint has already implemented, or is in the process of implementing, two-thirds of PA’s 77 recommendations. We look forward to working cooperatively to find constructive solutions and the best path forward for our customers, the Greater Houston region, and the state of Texas.
