Houstonians bracing for yet another hit to their wallets may find slight relief in a recently negotiated reduction in electricity delivery rate increases proposed by CenterPoint Energy. After a tense stand-off, a settlement has been reached that, if approved, will result in a smaller monthly increase than previously anticipated for the area's power consumers. This development comes with a deadline looming—February 14—for filing comments to the Public Utility Commission of Texas (PUCT), as reported by the Houston Chronicle.
In figures, the about-to-be-sentenced Houston City Council initially rebuffed CenterPoint's proposal to up the delivery rate from $2.67 to $4.20 per month for the typical residential customer. The adjusted proposal now pending before PUCT sets the monthly impact at $3.96, just cents shy of the initial sticker-shocked amount Houston Public Media detailed.
The new compromise, heralded after Houston's refusal of the first offer, would set CenterPoint's annual delivery revenue near $220.5 million, an about $13 million concession from its original request. It's a number that still requires the green light from state regulators to officially ink the change set for March 1. The city, which sought a $20.6 million cut, is yet to issue a public remark on this latest round of settlement.
Sandra Haverlah, president of the Texas Consumer Association, voices the concerns of many by noting the burden of these rate hikes on consumers. "I think people are tired of paying higher bills under the guise that somehow we're making the system more reliable," Haverlah told Houston Public Media, pointing out that the promised improvements in reliability have yet to be felt. As the infrastructure stands, skeptics like Haverlah argue that the city and PUCT may merely be rubber-stamping corporate requests that pad utility coffers at consumer expense.
A new Texas law lets utilities ask for rate hikes twice a year instead of once, signed by Gov. Greg Abbott last June. This law shortened PUCT's review period for increases from 120 to 60 days, a timeline criticized for being exploited by CenterPoint. CenterPoint argues these charges are crucial for big infrastructure investments, sparking debate on the fairness and transparency of utility rate changes.
