CenterPoint filed an application with the Public Utilities Commission of Texas earlier this year seeking a rate increase to cover costs and accommodate growth in the area. Utility officials said the average residential rate would increase by about $1.25, according to the company’s filing.
Energy experts say utilities don’t make money on maintenance like pruning trees or strengthening power lines, but on expanding infrastructure coverage, but the PUC controls how much regulated utilities like CenterPoint can make in profits.
In justifying the rate increase, CenterPoint officials said the company now has 300,000 more customers than when it last requested rate changes in 2019. The company expects both population and industrial growth to continue, driven by a shift to electrification and the potential construction of hydrogen production facilities.
Utility officials said in the filing that they are both expanding their systems and making needed repairs. The company has invested more than $6 billion in infrastructure over the past five years, while also responding to “unprecedented weather conditions” including droughts, winter storms and hurricanes.
“Each event has had an impact on the system,” said Lynne Wilson, senior vice president of electric operations. “Drought can cause trees to die or become stressed, making them more susceptible to high winds. Damage to the system from weather events can cause power outages for customers.”
The company said it will spend $31.9 million on vegetation management in 2022 and increased spending on reliability projects.
“CenterPoint Houston faces increasingly higher expectations from its customers for more reliable service and faster restoration after outages, as well as from regulators and policymakers who are increasingly interested in strengthening Texas’ electric grid,” Jason Ryan, executive vice president of regulatory services and government relations, said in the March 6 filing.
On July 17, in the wake of public outrage over Beryl’s widespread blackouts, CenterPoint requested more time to continue discussions in the rate case with other stakeholders. Groups such as the Houston Urban Coalition, Texas Industrial Energy Consumers and the Texas Consumers Association were already weighing in on the proposed rate increases. The administrative judge considering the proposed rate increases required the stakeholders to submit status reports by August 2, and every two weeks thereafter.
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