Houston Mayor John Whitmire is prompting action over the electric rates charged by CenterPoint Energy. With CenterPoint under investigation for system reliability issues, Mayor Whitmire argues that the company should not be allowed to continue to over-earn. The critique comes in the wake of CenterPoint withdrawing its mandatory rate review earlier this month, a move contested by city leaders concerned about the high profits and claimed overcharges to customers, as reported by Click2Houston.
An administrative judge has intervened, ruling that CenterPoint cannot abandon its rate review process. This mandate leaves the utility company with two options: appeal the judge's decision or re-enter negotiations over its pricing practices. The cities challenging CenterPoint allege that the utility is overcharging its customers to the tune of more than $100 million annually, suggesting that the high rates are unwarranted and burdensome.
State law stipulates a comprehensive rate review every four years. CenterPoint's last review occurred in 2019, making a review due this year. The utility had sought a delay of this review until June 2025, a request that was denied by the judge on grounds of complying with the mandated timetable. Advocates and officials, like Mayor Whitmire, highlight the implications of such a delay—mainly that customers could continue paying increased rates well into 2025 without the possibility of refunds for overpayment, according to Click2Houston.
Concurrently, CenterPoint Energy has retracted its request to boost customer rates following intense scrutiny from public representatives and criticism, as stated in a previous report by ABC13. Initially, the company aimed to increase monthly rates by $1.25 to recover expenses related to power lines and poles, triggered by the aftermath of Derecho and Hurricane Beryl. Amid questioning about the deployment of customer funds, CenterPoint declared a commitment to improving its infrastructure but still entertains the possibility of implementing a rate rise in response to recent natural calamities.
