CenterPoint Energy Reaches Settlement to Lower Electric Bills for Customers in Houston

CenterPoint Energy's Recent Settlement Agreement

In a significant development for residents of Houston, CenterPoint Energy announced a settlement agreement with various stakeholders aimed at reducing electric bills for its customers. This agreement, tied to the 2024 Houston Electric Rate Case, is set to bring an annual revenue decrease of about $50 million for the company, which translates to an average reduction of approximately $1 per month on customer bills. This strategic move reflects CenterPoint's commitment to serving Houston while also addressing the financial needs of its customers amid ongoing economic growth.

The settlement is pending review and approval from the Public Utility Commission of Texas (PUCT), marking a turning point in the regulatory landscape of electric utility rates in the state. Typically, rate cases for Houston Electric occur every four years, ensuring a structured process for determining fair pricing for consumers. Jason Ryan, CenterPoint's Executive Vice President of Regulatory Services and Government Affairs, emphasized the company's dedication to providing affordable and reliable energy service.

The fiscal adjustments directly respond to customer feedback and extensive discussions with intervening parties. These efforts highlight CenterPoint's priority of aligning services with the expectations of the community it serves. The settlement not only lowers the income the company will receive but also ensures that customer bills see a reduction at a critical time when many households face rising costs in various living expenses, especially following the economic impacts of recent events.

Investment in the Electric Grid

Part of the rationale behind this settlement is the substantial investments CenterPoint has made to enhance the electric infrastructure in the Greater Houston area. Since the last rate case in 2019, approximately $8 billion has been invested into upgrading electric systems to support the region’s growing demand. This includes the installation of nearly 2,200 miles of new distribution lines, the construction of six new distribution substations, and the enhancement of 11 substations to improve flood resilience.

CenterPoint's initiatives also encompass strategic interconnections to align with 25 new generation resources, enhancing the overall reliability of the electric grid. The installation of 437 Intelligent Grid Switching Devices has notably prevented over 80 million minutes of customer outages during peak times of demand in 2023. These improvements to the electric grid not only ensure stability but also prepare the infrastructure to handle increased stress during adverse weather or high-demand periods.

Temporary Emergency Generators and Broader Benefits

In light of ongoing challenges in meeting electric demands, particularly as the Electric Reliability Council of Texas (ERCOT) anticipates potential shortfalls, CenterPoint has proposed a temporary solution. This involves deploying large emergency generation units to the San Antonio region for two years, starting in Spring 2025. This plan will be implemented without generating any profit for CenterPoint, ultimately aiming to relieve the pressure on the electric grid while simultaneously reducing customer bills in Greater Houston.

CenterPoint's actions reflect a broader commitment to the community and its responsiveness to evolving energy demands. By managing resources effectively and addressing immediate needs, the company seeks to maintain customer trust and reinforce its role as a reliable provider. Residents will not see any charges related to these emergency generators once they are activated, which aligns with the company's philosophy of minimizing costs for its customers.

The Path Ahead for CenterPoint Energy

As an investor-owned utility that serves over 7 million customers across various states, CenterPoint Energy continues to play a pivotal role in shaping the electricity market in Texas. The company's operations focus solely on electric transmission and distribution without engaging in electricity generation, which underlines its commitment to efficient service delivery.

For over 150 years, CenterPoint and its predecessors have built a reputation for reliability, and this recent settlement marks another step in that journey. Looking forward, it will be essential for the company to maintain transparency with its customers as they navigate potential future challenges in the electricity market, including environmental factors and evolving regulatory conditions.

To learn more about CenterPoint Energy’s electric rates, investments, and ongoing efforts to enhance service delivery, customers can visit CenterPointEnergy.com/FactsMatter.