CenterPoint reaches settlement agreement in 2024 rate case, reducing customer bills

CenterPoint Energy announced a settlement agreement with parties involved in its 2024 rate case for its Houston Electric business. This agreement, which is subject to approval by the Public Utility Commission of Texas (PUCT), is expected to lead to lower electricity bills for most customers.

Key takeaways:

  • Reduced Rates: The settlement is expected to decrease annual revenue for CenterPoint by approximately $50 million until the next rate case. This translates to an average monthly decrease of roughly $1 for most customers, or about 2% for residential customers using 1,000 kWh per month. Residential bills will specifically see a reduction of around $0.82 per month, while small business bills will decrease by approximately $1.28 per month.
  • Focus on Customers: According to CenterPoint, the agreement prioritizes customer needs while acknowledging the company's investments in grid improvements.
  • Grid Investments Highlighted: The company emphasized its investments in the Greater Houston area's electric grid since the last rate case in 2019, totaling roughly $8 billion. These investments include new transmission and distribution lines, substations, and smart grid technologies aimed at enhancing reliability and resilience.
  • ERCOT Proposal: Separately, CenterPoint proposed sending emergency generation units to the San Antonio area to address a projected energy shortfall in Central Texas. This initiative, if approved by ERCOT, could further reduce customer bills in the Greater Houston area.

Timeline:

Rate cases for Houston Electric typically occur every four years and involve PUCT review and approval of electricity rates. CenterPoint initially requested a rate increase in 2024, but later withdrew the request to focus on its Greater Houston Resiliency Initiative following Hurricane Beryl. Negotiations with intervening parties resulted in the current settlement agreement.

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What's next:

The settlement awaits PUCT approval. CenterPoint highlighted its commitment to providing reliable, safe, and affordable electricity to its customers while continuing to invest in grid improvements for the future.

The Source: Information provided by CenterPoint Energy via a news release on Wednesday. 

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