HOUSTON — CenterPoint Energy has reached a settlement in its 2024 rate case that will lead to lower electric bills for Houston-area customers.
Pending approval by the Public Utility Commission of Texas (PUCT), the agreement will reduce CenterPoint’s revenue by about $50 million annually through 2029, lowering monthly residential bills by approximately $1, or 2% for customers using 1,000 kWh per month.
Small businesses will see a reduction of about $1.28 per month.
Rate cases happen every four years. This allows regulators to evaluate utility pricing.
In a news release, Jason Ryan, CenterPoint’s Executive VP of Regulatory Services and Government Affairs, emphasized the company’s commitment to affordability and reliability.
“Our settle agreement with these parties would reduce the amount of revenue that CenterPoint receives, and customer bills would decrease, while also addressing the significant investments we have made to strengthen our system for the benefit of our customers,” Ryan said. “Following customer feedback and constructive discussions with intervening parties over the last several months, this plan keeps our customers at the forefront and supports CenterPoint’s ultimate goal of building the most resilient coastal grid in the country.”
In August 2024, CenterPoint temporarily withdrew from its rate case following Hurricane Beryl to focus on the company’s “Greater Houston Resiliency Initiative.”
CenterPoint said its 2024 rate case is intended to support capital investments the company has made to expand and improve the Greater Houston area’s electric system.
Since 2019, CenterPoint said it has invested approximately $8 billion in the grid, including:
- Installing 2,200 miles of new distribution lines and over 100 miles of new transmission lines.
- Building six new distribution substations and two new transmission substations.
- Elevating 11 substations to prevent flood damage.
- Deploying 437 Intelligent Grid Switching Devices, reducing outages by over 80 million minutes in 2023.
These investments complement the company’s ongoing resiliency initiatives to improve grid performance and emergency response capabilities.
Along with the settlement, CenterPoint proposed relocating 15 emergency power generation units to San Antonio for two years to support the Electric Reliability Council of Texas (ERCOT) during a projected energy shortfall in the summer of 2025.
The company will not profit from this initiative, and Houston-area customers will not be charged for related costs during this period. CenterPoint said this proposal, if approved, would ultimately contribute to lower electric bills across the Greater Houston area.