HOUSTON – 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.
CenterPoint Energy, a leading energy provider in the Midwest, has reached a settlement agreement in its 2024 rate case that will result in reduced customer bills. The agreement, which was approved by the state’s regulatory commission, includes a decrease in base rates for residential and commercial customers.
This news comes as a relief to many customers who have been facing high energy bills in recent years. The reduction in rates will help alleviate some of the financial burden on households and businesses, especially as they continue to recover from the economic impacts of the pandemic.
CenterPoint Energy has been working closely with stakeholders to find a fair and reasonable solution that benefits both customers and the company. The settlement agreement reflects a balanced approach that ensures reliable and affordable energy services for all customers.
Overall, this is a positive development for CenterPoint Energy and its customers. The company remains committed to providing excellent service while also being mindful of the financial challenges facing many households and businesses. This settlement agreement is a step in the right direction towards a more sustainable and affordable energy future for all.
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CenterPoint, settlement agreement, 2024 rate case, customer bills, rate reduction, utility company, energy costs, regulatory approval, cost savings, consumer savings, settlement terms
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