CenterPoint Seeks Rate Increase for Infrastructure Expansion

CenterPoint Rate Increase and Infrastructure Expansion in Texas

CenterPoint recently submitted an application to the Texas Public Utilities Commission to raise rates in order to cover costs and accommodate the region’s growth. Utility officials have indicated that the average residential bill may increase by approximately $1.25, as outlined in company documents.

Energy experts emphasize that utilities generate revenue not through maintenance tasks like tree trimming or power line reinforcement, but by expanding infrastructure coverage. However, Public Utilities Corporations (PUCs) regulate the earnings of companies like CenterPoint.

Growing Customer Base and System Expansion

To justify the rate increase, CenterPoint officials have cited an increase of 300,000 customers since their last rate change request in 2019. They anticipate ongoing growth in both the population and industry, necessitating infrastructure upgrades.

CenterPoint has invested over $6 billion in infrastructure over the past five years, addressing challenges posed by extreme weather conditions such as droughts, winter storms, and hurricanes. Vice President Lynnae Wilson highlighted the impact of climate-related factors on the reliability of the power grid.

Commitment to Maintenance and Reliability

The company plans to allocate $31.9 million towards vegetation management in 2022 and increase expenditures on reliability projects. Jason Ryan, Executive Vice President of regulatory services and government affairs, emphasized the importance of meeting customer expectations for reliable service and prompt outage restoration.

Amid public concerns following a significant outage in Beryl, CenterPoint has engaged in rate case discussions with various stakeholders, including the Houston Urban League and Texas Consumers Association. The company aims to address community feedback and enhance grid resilience in coordination with regulatory bodies.