ScreenShot/Public Utility Commission of Texas
Several groups representing Houston-area cities and customers are challenging CenterPoint Energy’s withdrawal of a rate increase the company proposed to the Public Utility Commission in March. The organizations argue CenterPoint’s move is an effort to avoid having its rates cut.
Last week, CenterPoint filed a request to the Public Utility Commission (PUC) to withdraw proposed rate increases that would have amounted to $1.25 a month for customers. The increases would have boosted CenterPoint’s revenue by $17 million, according to documents the company filed with the PUC in March.
“We are acting urgently to strengthen our resiliency, improve our communications and emergency coordination,” CenterPoint CEO Jason Wells said in a statement on August 1 explaining the withdrawal. “We believe any delay or distraction from this mission is unacceptable.”
But a court filing by the Gulf Coast Coalition of Cities, the Texas Coast Utilities Coalition, the Houston Coalition of Cities, and the Texas Consumer Association argued this move was hardly a gift to ratepayers.
“CenterPoint professes it is doing ratepayers a favor by withdrawing this rate case, but the Company’s rates are excessive,” the filing said. “The company may not simply rebuff the Commission when it is overearning and should not be left off the hook once again to continue to over-earn.”
Sandra Haverlah, president of the Texas Consumer Association, said that CenterPoint had been overcharging ratepayers to the tune of more than $100 million a year. “Since it’s a lookback case over four years, the total approximately over the four years would be somewhere close to $400 million,” Haverlah said.
Thomas Brocato, general counsel for the Gulf Coast Coalition of Cities, underscored the point.
“I think that the general population typically expects, when there’s a rate case, that their rates might be going up,” Brocato said. “What’s unique about this case, or different, is that our analysis and the analysis of the PUC staff and the office of (the) Public Utility Counsel all demonstrate that CenterPoint’s rates should in fact be lowered. And so, this idea that they’re doing a good thing by withdrawing the case doesn’t tell the full story.”
The administrative law judge in the case has given CenterPoint, as well as any other interested parties, until next Wednesday, August 14, to respond.
“If they grant our request, the case will continue to proceed,” Sandra Haverlah said. “Certainly, the PUC has the opportunity, and the commissioners, to overrule the (judge), but we would hope that they would not do that, and the case would continue to proceed.”
In a written statement to Houston Public Media, CenterPoint reiterated Wells’ August 1 statement, adding, “Our collective focus is taking action to be better prepared this hurricane season. That is our singular focus and why we launched the Greater Houston Resilience Initiative this week…We look forward to providing more information on August 14th as part of our overall commitment to become the most resilient coastal utility in the country.”
