Recent Houston Storms Impacted CenterPoint Customers

Following last month’s severe storms, Houston is grappling with extensive damage and restoration efforts that could span several months. CenterPoint Energy, the utility company at the heart of the recovery, is facing significant costs, which will inevitably be passed on to customers.

The storm struck on May 16, with hurricane intensity, taking the city by surprise and causing widespread disruption. Powerful derecho winds wreaked havoc in Houston, damaging homes, businesses and critical infrastructure and leaving many residents without power for days.

Since the storm, CenterPoint crews have been working around the clock to restore power and repair damaged infrastructure. The work involves replacing temporary transmission structures with permanent structures and remediating tilted distribution poles which, although currently functional, require permanent repairs. The restoration process is extensive and expensive, with preliminary estimates indicating at least $100 million in expenses.

Jason Ryan, CenterPoint’s executive vice president of regulatory services and government affairs, highlighted the scale and complexity of the ongoing efforts. He stressed that while immediately restoring power was a priority, long-term infrastructure repairs were needed to ensure stability and prevent future outages.

The financial burden of these repairs will ultimately fall on CenterPoint customers. Historically, these costs have been recovered through various means, such as surcharges or additional line items on utility bills. Sandra Haverlah, president of the Texas Consumer Association, noted that these fees, often implemented as temporary fees, are a common industry practice.

Ryan said customers could expect an increase of about a dollar a month on their bills as the costs were phased in over the next year. This phased approach aims to mitigate the immediate financial impact on consumers while ensuring that necessary funds are available for ongoing and future restoration work.

Although the exact final cost is still undetermined, pending invoices from out-of-town and out-of-state crews that assisted in the recovery efforts, CenterPoint assured the additional fees would be phased in. The utility company is also awaiting a full assessment of all expenses incurred before finalizing the cost to be passed on to customers.