{"id":2319292,"date":"2024-08-05T09:02:02","date_gmt":"2024-08-05T13:02:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/after-meeting-with-abbott-centerpoint-drops-customer-rate-hike-request-washington-examiner\/"},"modified":"2024-08-05T09:12:08","modified_gmt":"2024-08-05T13:12:08","slug":"after-meeting-with-abbott-centerpoint-drops-customer-rate-hike-request-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/after-meeting-with-abbott-centerpoint-drops-customer-rate-hike-request-washington-examiner\/","title":{"rendered":"After meeting with Abbott, CenterPoint drops customer rate hike request &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fafter-meeting-with-abbott-centerpoint-drops-customer-rate-hike-request-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2319292&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>CenterPoint Energy announced on August\u2063 1, 2024, that it would withdraw\u200d its \u2062request to the \u2062Public Utility Commission of Texas (PUC) for a rate\u2063 increase after a meeting with Governor Greg \u200bAbbott. This decision followed significant backlash from state legislators concerned about the company&#8217;s handling\u2063 of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hurricane-beryls-impact-immediately-felt-as-it-makes-landfall-in-texas-widespread-power-outages-reported\/\" title=\"Hurricane Beryl&#039;s Impact Immediately Felt as It Makes Landfall in Texas - Widespread Power Outages Reported\">power outages affecting<\/a> over two million residents after a recent hurricane.<\/p>\n<p>During recent Senate hearings, bipartisan \u2062criticism targeted CenterPoint\u2019s plan to pass the costs of recovery from\u200c the storm, specifically Hurricane Beryl, onto consumers while still aiming for \u2064a profit margin. Governor Abbott had previously expressed dissatisfaction with the company\u2019s proposals \u200dfor \u200bimprovement following the crisis, pushing for more urgent and\u200d effective measures to restore \u200bpublic trust.<\/p>\n<p>In his announcement, CenterPoint&#8217;s CEO, Jason Wells, acknowledged the\u200c company&#8217;s failures and emphasized the need to prioritize preparedness and communication moving\u200d forward, particularly with\u200c hurricane \u200bseason ongoing.\u2063 Following the withdrawal, officials like\u200b Lt. Gov.\u2063 Dan Patrick\u200d raised \u200cconcerns regarding potential financial improprieties in how CenterPoint managed its resources, particularly \u2062underutilized generators that were supposed \u2062to aid in emergency \u200csituations.\u200d The\u2064 situation reflects broader accountability \u200bissues regarding utilities and their responsibilities to the communities they serve.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">After meeting with Abbott, CenterPoint drops customer rate hike request<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1722157\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square) &ndash; After top executives met with Gov. Greg Abbott on Thursday, CenterPoint Energy announced it was withdrawing its request with the Public Utility Commission of Texas to have ratepayers cover its costs and make a profit.<\/p>\n<p>The announcement came four days after a Texas Senate hearing where Republicans and Democrats were united in their resolve to ensure customers&rsquo; weren&rsquo;t socked with higher electric bills. They also expressed their shared commitment to hold accountable the multi-billion-dollar company for not restoring power to more than two million residents in the Houston area for up to two weeks after a Category 1 hurricane hit on July 8.<\/p>\n<p>After apologizing for the company&rsquo;s failures, CenterPoint CEO Jason Wells said the company filed a request with the PUC to recoup their costs from the storm. Defiant to not resign from his multi-million-dollar salaried position, Wells also remained resolute in the company&rsquo;s request to hike energy rates to have customers pay for a 10% profit and all recovery costs.<\/p>\n<p>Aghast by his response, state Sen. Carol Alvarado, D-Houston, said, &ldquo;CenterPoint intends to increase their rates to recoup the cost of recovering from Hurricane Beryl, passing the cost on to the customer. That dog won&rsquo;t hunt.&rdquo;<\/p>\n<p>State Sen. Paul Bettencourt, R-Houston, also said, &ldquo;After 4 hours of testimony, I would like to highlight these four words used by CenterPoint CEO Wells in the Senate hearing: &lsquo;Inexcusable; Insensitive; Unacceptable; Insufficient.&rsquo; But CenterPoint is going to go to the PUC to ask for cost recovery from Hurricane Beryl.&rdquo;<\/p>\n<p>It would take a meeting with Gov. Greg Abbott in Austin on Thursday for the company to finally change course.<\/p>\n<p>Wells announced CenterPoint was withdrawing its request before the PUC, stating, &ldquo;We are acting urgently to strengthen our resiliency, improve our communications and emergency coordination. We believe any delay or distraction from this mission is unacceptable. Our company&rsquo;s collective focus for the remainder of this hurricane season will be on being ready: that is our mission. Nothing is more important than being ready for the next hurricane and rebuilding the trust of the community we are privileged to serve.&rdquo;<\/p>\n<p>Gov. Abbott said he spent more than two and a half hours with Wells and CenterPoint EVP Jason Ryan to discuss a proposal the company submitted in response to his request. Two weeks ago, Abbott issued several demands CenterPoint must meet by July 31 and in August. But the proposal he received &ldquo;was inadequate,&rdquo; he said. He instructed them &ldquo;that more must be done and it must be completed faster than originally proposed&rdquo; and &ldquo;before the next <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/morning-wire-biden-faces-backlash-over-afghanistan-speech-tropical-storm-hits-haiti-following-massive-earthquake-biden-administration-expands-food-stamp-program\/\" title=\"Morning Wire: Biden Faces Backlash Over Afghanistan Speech, Tropical Storm Hits Haiti Following Massive Earthquake, Biden Administration Expands Food Stamp Program\">tropical storm hits<\/a> their region,&rdquo; he said. They agreed.<\/p>\n<p>On Friday, Lt. Gov. Dan Patrick sent a letter to the PUC requesting it to ensure CenterPoint pays $800 million for generators it <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hunter-biden-defector-emails-pipeline-to-obama-admin-seen-as-currency\/\" title=\"Hunter Biden Defector Emails: &#039;Pipeline&#039; to Obama Admin Seen as &#039;Currency&#039;\">didn&#038;rsquo<\/a>;t use and charged ratepayers for. Bettencourt on Monday raised concerns that potential fraud might have occurred.<\/p>\n<p>After Winter Storm Uri in February 2021, when Texans were without power for at least a week in subfreezing temperatures, the state legislature passed a law to allow some utilities to lease small mobile generators to quickly restore power to critical facilities during a major emergency. &ldquo;CenterPoint deviated from this approach, instead appearing to choose to prioritize profits over effectiveness,&rdquo; Patrick wrote the PUC. &ldquo;Rather than leasing small mobile generators as intended by the legislation, CenterPoint squandered $800 million of ratepayer funds on massive non-mobile generators while spending only .000625% of that amount on what the legislation called for and would have actually helped their customers in the aftermath of Hurricane Beryl.<\/p>\n<p>&ldquo;As a result, CenterPoint was forced to borrow small mobile units from other TDUs that had complied with the legislation while their large non-mobile generators sat idle. This not only undermined the effectiveness of their storm response but also highlighted a misuse of the allocated funds.&rdquo;<\/p>\n<p>At Monday&rsquo;s hearing it was revealed that CenterPoint leased the generators and never used them but reportedly earned &ldquo;at least $30 million in profits,&rdquo; Patrick said. &ldquo;The Commission has a duty to ensure customers only pay just and reasonable rates for transmission and distribution services,&rdquo; and urged the PUC to &ldquo;take action as needed to change any rates that are unjust, unreasonable, or in violation of any law.&rdquo;<\/p>\n<p>Patrick, who called the special legislative hearing and said legislative changes are coming next year, said, &ldquo;CenterPoint either made the choice to pursue profit over protecting the customers they serve or made a bad business decision on behalf of the rate payers by pretending these units were &lsquo;mobile&rsquo; when they were not. Either way, the decision violated the &lsquo;reasonable and necessary cost&rsquo; statutory provisions, and CenterPoint should be disallowed from using ratepayer dollars to pay for these leases.&rdquo;<\/p>\n<p>Nearly 7,700 Houstonians have called on Wells to resign, signing a petition created by Houston businessman Jim &ldquo;Mattress Mack&rdquo; McIngvale. Wells has yet to be fired or resign.<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/strong><\/p>\n<p>Hundreds of businesses have sued CenterPoint in class action lawsuits seeking hundreds of millions of dollars in compensation citing negligence after the company reportedly didn&rsquo;t invest in upgrades and preventative vegetation removal after making $6.5 billion in profits last year and rate payer&rsquo;s energy bills skyrocketed.<\/p>\n<p>At least 36 people have died attributed to the storm and prolonged loss of power with no access to water or air conditioning during 100-degree weather.<\/p>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1722157\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1722157\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following a meeting with Governor Greg Abbott, CenterPoint Energy has decided to retract its request to the Public Utility Commission of Texas for a rate increase that would allow it to recover costs and generate profits from customers. This decision was made just days after a Texas Senate hearing where both Republican and Democratic lawmakers expressed their determination to prevent higher electric bills for consumers. They also emphasized the need for accountability from the multi-billion-dollar company, which failed to restore power to over two million residents in Houston for nearly two weeks following Hurricane Beryl on July 8.<\/p>\n<p>CenterPoint&#8217;s CEO, Jason Wells, acknowledged the company&#8217;s shortcomings during this crisis but initially insisted on pursuing a rate hike that included a 10% profit margin along with recovery costs. His stance drew criticism from state Senator Carol Alvarado (D-Houston), who remarked that passing these costs onto customers was unacceptable. Similarly, Senator Paul Bettencourt (R-Houston) highlighted Wells&#8217; use of terms like &#8220;inexcusable&#8221; and &#8220;unacceptable&#8221; during his testimony while noting CenterPoint&#8217;s intention to seek cost recovery.<\/p>\n<p>The turning point came after Abbott met with Wells and CenterPoint Executive Vice President Jason Ryan in Austin. Following their discussions about an inadequate proposal submitted by the company in response to Abbott\u2019s earlier demands, they agreed on necessary improvements before the next storm season.<\/p>\n<p>In addition, Lieutenant Governor Dan Patrick sent a letter urging the PUC to ensure CenterPoint reimburses $800 million for generators it charged ratepayers but did not utilize effectively. Concerns were raised about potential fraud related to this situation as well as allegations that CenterPoint prioritized profits over effective emergency responses by failing to lease smaller mobile generators as mandated by legislation after Winter Storm Uri in February 2021.<\/p>\n<p>At recent hearings, it was revealed that although CenterPoint leased generators without using them, they reportedly made at least $30 million in profits from this arrangement. Patrick emphasized that it&#8217;s crucial for customers only pay fair rates for utility services and called upon the PUC to take action against any unjust charges.<\/p>\n<p>Amidst growing public discontent\u2014evidenced by nearly 7,700 Houstonians signing a petition demanding Wells&#8217; resignation\u2014hundreds of businesses have filed class-action lawsuits against CenterPoint seeking compensation due to alleged negligence following significant profit margins last year while energy bills soared. The aftermath of Hurricane Beryl has been devastating; at least 36 fatalities have been linked directly or indirectly due to prolonged power outages during extreme heat conditions<\/p>\n","protected":false},"author":1,"featured_media":2319293,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/03\/AP24061781105608-1024x683.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[3697,37188,37189,4470,32076],"class_list":["post-2319292","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-abbott","tag-centerpoint","tag-customer-rates","tag-meeting","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/03\/AP24061781105608-1024x683.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2319292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2319292"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2319292\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2319293"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2319292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2319292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2319292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}