Paying to replace or repair a major appliance is not cheap.
If you find out it was damaged by the utility company supplying electricity to your home, you might expect them to pay for the damages. It’s why a lot of people are frustrated when CenterPoint Energy denies claims to pay up.
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RELATED: Does CenterPoint have to pay if a power surge damages your appliances?
KPRC 2 Investigative reporter Amy Davis explains your rights and what you can do to increase your chances of getting your money back.
Multiple residents in Pearland’s Shadow Creek Ranch subdivision experienced mysterious electrical issues over a week in June, leading to thousands of dollars in damages.
It was like their homes were haunted by a very expensive ghost.
“Everything was just going haywire,” said Coy Satterfield, describing the start of the problems.
Vicki Latson noticed unusual activity with her lighting. “These lights up here, they were flickering like crazy,” she said.
For Theresa Touchette, the problems became apparent at night.
“We would be lying in bed, and the fan would just start going 100 miles an hour,” she said.
Riechelle Williams reported electrical problems throughout her house.
“The breaker boxes flipping in certain areas of the house,” she said, describing the erratic behavior.
The damage mounted quickly.
“The first one that was on there blew out. We purchased another one. That one blew out,” Touchette said.
The financial impact hit homeowners hard. Latson’s repairs reached $1,200, while Williams faced $4,000 in damages. “I can’t afford another $2,000,” Touchette said.
Throughout the neighborhood, air conditioning units failed, circuits malfunctioned, garage door motors stopped working, and sprinkler systems broke down.
Pearland neighbors realize the problem was bigger than they first thought
The scattered incidents remained unconnected until one Saturday night, when multiple residents noticed a more serious development.
They began smelling burning wires, prompting calls to the Pearland Fire Department. Firefighters who responded directed the homeowners to contact CenterPoint Energy.
Utility Company’s limited liability
When CenterPoint crews investigated, they identified a shortage in a transformer as the source of the problem.
Despite acknowledging their equipment caused the damage, the utility company initially denied all claims for reimbursement.
Houston attorney Tony Buzbee explains why.
“The law, unfortunately, is on their side. CenterPoint is regulated very heavily by what they can charge us. In exchange for that, they’re immune from a lot of lawsuits,” said Buzbee.
Buzbee has two current lawsuits against CenterPoint. One for the 2021 freeze when 54 people died with no electricity in the frigid temperatures. He’s also representing Houston area restaurant owners in a class action against CenterPoint for the sustained power outages after Hurricane Beryl.
The company operates under a state agreement called a tariff that typically protects it from liability for damages to customers’ private property. However, Buzbee notes that this immunity has limits: “If you’re grossly negligent, then you can be liable.”
READ MORE: What is a CenterPoint tariff?
CenterPoint eventually provided partial reimbursements after continued pressure from homeowners and after KPRC 2 Investigates kept asking questions. None of the residents received full compensation for their damages.
We wanted to know: What will CenterPoint reimburse customers for? What is the policy?
When asked about their claims process and reimbursement criteria, CenterPoint declined to provide specific details.
How to increase your chances of getting reimbursement from a utility company:
If you do try to get reimbursed from CenterPoint for damages to your property, some things will increase your chances of getting any help.
For homeowners facing similar situations, experts recommend:
- Installing surge protectors for major appliances and electronics
- Keeping detailed records and receipts for all repairs
- Filing a complaint with the Public Utility Commission
- Persistently following up on denied claims
“The cards are stacked against you. But that’s not to say you shouldn’t try,” Buzbee advises affected homeowners.
Do you have an issue you need help with? Email Amy Davis at ADavis@kprc.com and Investigative Producer Andrea Slaydon at ASlaydon@kprc.com.
