CenterPoint being held accountable? A look at Gov. Abbott’s demands from the energy company

How Texas is holding the energy company accountable

Utility trucks sit parked at a CenterPoint Energy staging center at the Houston Race Track in Houston, Wednesday, July 10, 2024. Millions of residents lost power after Hurricane Beryl made landfall. (AP Photo/Maria Lysaker) (Maria Lysaker, Copyright 2024 The Associated Press. All rights reserved.)

HOUSTON – After Hurricane Beryl, frustrations and angers grew in Texans as millions went without power for several days -- and tens of thousands are still out.

Nearly 2.2 million customers and businesses were left powerless -- physically and mentally -- more than a week after the storm.

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Gov. Greg Abbott and state leaders are demanding answers from the energy company on what happened after losing the trust of Texans.

There have already been at least three heat-related deaths due to the power outages in the Houston area.

Abbott and the Public Utility Commission of Texas, which regulates CenterPoint, have launched an investigation into CenterPoint Energy’s response to the disaster. The governor gave CenterPoint until the end of July to submit plans to protect the power supply through the rest of what could be an active hurricane season, as well as trim trees and vegetation that threaten power lines.

Abbott sent a letter Tuesday directing Jason P. Wells, the President and Chief Executive Officer of CenterPoint Energy, to adequately prepare CenterPoint Energy for the next severe weather event in Southeast Texas by improving its preparation and response practices.

“In the wake of Hurricane Beryl’s landfall, CenterPoint Energy has lost the faith and trust of Texans,” the letter read. “Indeed, nearly 2.2 million residential and commercial customers in Southeast Texas lost power during the peak of the storm, and many continue to suffer without electricity more than a week after the storm. Texans deserve better from their electrical companies, especially during hurricane season. The adequacy of your preparation will be analyzed in the coming months, but the time is now for CenterPoint Energy to improve its practices.”

Residents and Texas leaders want to hold CenterPoint Energy accountable -- but what will that look like?

Will it impact Texans even more? Will our utility rates go up?

Here’s what we know so far

In the letter, Abbott requests the following from the energy company by July 31:

  • Identify how CenterPoint Energy will complete the elimination of all vegetation issues by August 31, 2024.
  • Specify all actions CenterPoint Energy will take in the future that it failed to do during the preparation for and response to Hurricane Beryl that will reduce or eliminate power outages for your customers.
  • Ensure that CenterPoint Energy has a sufficient number of pre-staged workers to be able to immediately respond to any power outages that may occur for any tropical storm or hurricane that hits your service area.
  • Describe how CenterPoint Energy will retain or quickly restore power for at-risk Texans in hospitals, nursing homes, and senior living facilities.
  • Describe how CenterPoint Energy’s pole replacement process for Hurricane Beryl will be accelerated and will prioritize the deployment of new, highly resilient poles before the end of this hurricane season.
  • Specify CenterPoint Energy’s plan to improve communication with its customers before, during and after a weather event. Additionally, how CenterPoint Energy will ensure the failure of its outage tracker during Hurricane Beryl will be reconciled.

What happens if those demands are not met by the deadline?

  • An Executive Order will be issued in response to any impending tropical storm or hurricane to impose needed requirements on CenterPoint Energy. The Executive Order would be aimed at keeping the power on throughout hurricane season and until the next legislative session.
  • The governor will oppose requests brought to the PUC by CenterPoint Energy to raise utility rates on Texans or to obtain any profit or rate of return.
  • Texas would also consider limiting the utility service area of CenterPoint Energy.

RELATED: Mayor Whitmire extends disaster declaration after Hurricane Beryl’s devastation


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