In a concerted effort to challenge CenterPoint Energy's withdrawal of a proposed rate hike, multiple cities in the Houston area, including Houston itself, have echoed the demands of consumer advocate groups for the utility company to lower its rates instead. According to a report by Click2Houston, the Public Utility Commission has been petitioned by The Gulf Coast Coalition of Cities, the Texas Coast Utilities Coalition, the Houston Coalition of Cities, and the Texas Consumer Association to not allow CenterPoint to simply drop their rate case.
These coalitions and organizations are arguing that the company is currently overcharging customers by an estimated $100 million annually. Their detailed filing to the Public Utility Commission states, "In this case, dismissal would prevent ratepayers from receiving the benefit of a significant rate decrease and would enable CenterPoint to avoid a required filing only to impose substantial costs on ratepayers in a future proceeding." Despite the intent to focus on improving emergency preparedness, these entities are wary of the timing of CenterPoint's withdrawal, perceiving it as a maneuver to escape potential rate reductions.
Supporting this viewpoint, a joint filing highlighted by Houston Public Media stressed, "CenterPoint professes it is doing ratepayers a favor by withdrawing this rate case, but the Company's rates are excessive." Sandra Haverlah of the Texas Consumer Association estimates the overcharges could amount to around $400 million over the course of four years.
Thomas Brocato, general counsel for the Gulf Coast Coalition of Cities, conveyed to Click2Houston that their request for lower interim rates is pivotal: "Let CenterPoint go and focus on, again, improving resiliency, keeping the lights on, restoring public trust... but at the same time, let rates be lowered to an appropriate level so that customers get the full benefit once they come back and finalize the case." This sentiment is in light of CenterPoint's past 25 small rate increases since its last full rate review in 2019, without a corresponding mechanism for customers to receive refunds for overpayments.
Acknowledging the challenge, CenterPoint has until August 14, 2024, to respond to the judge's order. Their statement, in response to the skepticism, emphasized their dedication towards preparations for the hurricane season through the Greater Houston Resilience Initiative, according to a written statement obtained by Click2Houston and Houston Public Media. The utility company maintains it will address the rate case withdrawal further on the said date, asserting its commitment to becoming the most resilient coastal utility in the nation.
