CenterPoint Energy proposing lower costs for Houston electric customers by 2027

HOUSTON - Centerpoint Energy has announced they are proposing to save Houston electric customers as much as $2 per month by 2027, according to a release.

CenterPoint Energy proposing lower electric costs for Houston customers

According to a release from CenterPoint Energy, company officials testified before the Texas Senate Subcommittee on Business and Commerce on their proposal to remove the cost of large emergency generation units from customers' monthly bills. 

Company officials said this could save average residential customers as much as $2 per month by 2027. 

The proposal, officials said, would send 15 large emergency generation units to the San Antonio area for up to two years to immediately support the State of Texas' energy needs for generation.

What they're saying:

"In Texas, we’re at our best when we’re working together to solve complex challenges. I think everyone can be proud of this proposal that provides a Texas-driven solution to address the state’s power generation shortfall, while also taking steps to reduce the impact on our customers. This plan would not only lower monthly bills immediately, and by as much as $2 by 2027, but it would address the costs paid to date related to large generation units. We look forward to working with elected leaders, regulators and industry partners to move these units to San Antonio and fulfill our commitment to lowering costs for our customers, while helping do our part to improve reliability for our great State of Texas," said Jason Wells, President and Chief Executive Officer of CenterPoint Energy in a news release.

Texas Lieutenant Governor Dan Patrick also released a statement about the testimony saying, "I have stood with Texas ratepayers from day one. In October, I testified at the Public Utility Commission of Texas public hearing to fight to ensure ratepayers were made whole for CenterPoint’s leasing of non-mobile generators. Today’s victory will not be the end of my ratepayer advocacy. Texans can count on me to continue to fight for them. Today is a great day for CenterPoint ratepayers across Texas! In this morning’s hearing in the Senate Committee on Business and Commerce, CenterPoint Energy testified that ratepayers will be made whole for the company’s lease of non-mobile generators for over $800 million, which were completely useless during Hurricane Beryl and the Derecho. CenterPoint’s management also laid out some of the measures they have taken to ensure their operations are more resilient to extreme weather moving forward. I thank the entire Texas Senate, but especially Sen. Charles Schwertner, R-Georgetown, Sen. Phil King, R-Weatherford, and the entire Houston-area delegation."

Previous CenterPoint actions taken

Last month, the Electric Reliability Council of Texas, or ERCOT, Board of Directors unanimously approved moving forward with a plan, which was the basis for the testimony on Thursday, that includes the following components:

• Lowering bills for CenterPoint Houston Electric customers: Costs associated with the large leased emergency generation units will start to come out of rates for Houston Electric customers in the coming months. By 2027, bills will be reduced by an estimated $2 per month for the average customer who uses 1,000 kWh/month.
• Meeting Texas’ current and future energy needs: Subject to finalization of mutually agreed upon documentation among the relevant parties, including ERCOT and the service provider/operator of the emergency generation units, CenterPoint stands ready to send the 15 large units (ranging from 27MW-32MW) to the Greater San Antonio area in the coming months, providing critical generation capacity to help avoid the risk of shortfalls. The units can each provide enough power for approximately 30,000 homes and were originally acquired following the devastation of Winter Storm Uri in 2021.
• Forgoing revenue and profit for 15 units: CenterPoint will receive no revenue or profit from the 15 large units for an up to two-year period based on the proposal with ERCOT.