HOUSTON – As the new year begins, the first Tuesday of January signals the return of Houston City Council meetings. With it, the first Pop-Off Politics of 2025.
This week, we’re exploring this additional hike CenterPoint Energy wants you to pay on your monthly bill.
What is Pop-Off Politics?
Houston City Council approves millions of dollars in expenditures every week. That money comes directly from your taxes. ‘Pop-Off Politics’ keeps a close eye on their decisions to ensure your money is being spent responsibly.
CenterPoint’s proposed hike
On the agenda for this week’s council meeting is Agenda Item #27, the city’s plan to deny CenterPoint’s request to address infrastructure improvements within the city.
CenterPoint submitted its application to the city on Dec. 5, requesting $102.5 million utilizing the Distribution Cost Recover Factor (DCRF). This increase would be roughly $1.83 and added to Houstonian’s monthly bill.
A DCRF is basically a way for a utility company to recover costs.
Houston’s response
Houston City Council members are not keen on the hike. Vice Mayor Pro Tem Amy Peck emphasized she doesn’t want to see a rake hike.
“Houstonians deserve a refund for what they’ve been put through, not a hit to their wallets for utility hardening that should have been done years ago,” Council Member Abbie Kamin adds.
Knowing that repairs are needed within city limits, she says the application was lacking specifics. Nor was there enough time to review the plan.
A sentiment echoed by fellow council member Sallie Alcorn who also added, “Any rate adjustment for Centrepoint right now will be heavily scrutinized and I think that will be the difference in this year. I think it’s scrutinized every year when they bring it, I think that our experts do a good job,” said the At-Large Position 5 member.
Billy Rudolph with the city’s Administration & Regulatory Affairs tells us, “It is not uncommon to deny a DCRF request at the municipal level. The City of Houston cannot determine if CenterPoint’s request is reasonable or complies with DCRF requirements until we have reviewed the application and questioned CenterPoint about details within the filing. The short deadline for a municipality to make a decision on a DCRF filing means the City of Houston will not have completed its review before the deadline has expired. By denying the application altogether, the City can continue its review while the filing is on appeal at the PUC.”
What happens next?
With council members signaling their intent to deny the rate hike, the matter could escalate to the Public Utilities Commission (PUC). CenterPoint is expected to appeal the city’s decision, and Houston has already engaged legal contractors to prepare for the impending battle.
We’ll have more on Pop-Off Politics on Tuesday morning at 8 a.m. on the KPRC2+.
