State regulators approved CenterPoint Energy’s $2.9 billion resiliency plan. For customers, this also means bill changes. CenterPoint Energy will increase electric rates by about $1 a month starting next year.
KPRC 2’s Amy Davis breaks down what’s included in the plan and when customers can expect higher electric bills.
The bill increase will gradually rise until customers are paying an extra $4 a month by 2028.
This latest rate hike funds CenterPoint’s $2.9 billion resiliency plan. The utility told the Public Utility Commission it aims to prevent the frequent power outages customers have experienced.
The money will be used to trim trees, bury more power lines and install more storm-resilient poles.
In part, a CenterPoint Energy statement said: “High-risk vegetation remains the leading cause of outages in Houston, and with the Public Utility Commission’s approval of our Systemwide Resiliency Plan, we can go above and beyond standard vegetation management by implementing an industry-leading three-year trim cycle. This enhanced approach will allow us to clear high-risk vegetation from thousands more miles of power lines every year.”
The $2.9 billion approved is only half of what CenterPoint originally requested. In January, the company asked for $5.75 billion. After months of negotiations involving city leaders, regulators and consumer advocates, the amount was reduced to $2.9 billion.
These rate increases are on top of all the increases we’ve reported over the last two years since Hurricane Beryl.
CenterPoint rate hike impact on bills
It’s difficult to sum up all the rate hikes because some increases last only a year while others extend longer.
Currently, a Houston customer using about 1,000 kilowatt-hours of electricity will owe CenterPoint about $64 on their bill — and that’s just for delivery charges, not the electricity itself.
The actual electricity is billed separately by providers like Gexa, Reliant or Direct Energy.
Full CenterPoint Energy Statement
As part of our commitment to building the most resilient coastal grid in the country, we are focused on performing critical vegetation management to improve reliability and reduce storm-related outages for our customers. High-risk vegetation remains the leading cause of outages in Houston, and with the Public Utility Commission’s approval of our Systemwide Resiliency Plan, we can go above and beyond standard vegetation management by implementing an industry-leading three-year trim cycle. This enhanced approach will allow us to clear high-risk vegetation from thousands more miles of power lines every year. We appreciate the Commission’s recognition of the importance of achieving our shared goal of improving reliability and resiliency across Greater Houston, and we look forward to delivering these benefits to the communities and customers we serve.