HOUSTON – Texas’ Lt. Governor Dan Patrick criticized CenterPoint Energy for leasing massive ratepayer funded generators instead of mobile generators which could be used more effectively in emergency situations.
Patrick released a lengthy statement about the matter Tuesday, one day after a Senate Special Committee hearing with CenterPoint executives.
“There were many questions about CenterPoint’s controversial lease of massive generators that could not be quickly used as mobile generators as intended in Senate Bill 1075 and House Bill 1500 (88th Legislative Session). Those bills allowed companies like CenterPoint and Oncor to lease small mobile generators to quickly get power to hospitals, vulnerable populations, and cooling/warming centers,” Patrick said. “Instead, CenterPoint spent $800 million on massive, more expensive generators that could not be used for 99% of all emergencies but allowed them to make a huge profit. Oncor and similar companies followed the legislation and obtained small mobile generators for emergencies, as was the intent of the legislation, and have deployed them appropriately. In fact, since CenterPoint pursued profit over effectiveness, they actually had to borrow small mobile generators from those companies for Hurricane Beryl.”
Patrick continued saying the Public Utility Commission approved reimbursing $800 million to CenterPoint over time by ratepayers. He said CenterPoint testified they will make at least $30 million in profits from the decision to lease the generators.
“CenterPoint violated the spirit and purpose of the legislation by leasing generators that are not truly mobile and, as they testified, have never been deployed for an emergency,” Patrick said. “It is clear they purposely violated the “reasonable and necessary cost” of leasing to make a profit instead of leasing smaller mobile generators that would have helped people without power during Beryl.”
The generators were not used during Hurricane Beryl, CenterPoint CEO Jason Wells told lawmakers at the July 29 hearing, however, according to the Texas Tribune, Wells defended the company’s investment, saying they were intended for a winter storm type scenario where not enough power is being generated.
Patrick is now calling for the Public Utility Commission to make CenterPoint pay for the generators using company profits instead.
“We need them to put the money into vegetation and and power poles that withstand winds, and not by big boat anchor generators that sit around for decades that aren’t used,” said State Senator Paul Bettencourt, who added that it takes about three flatbeds and five days to move the generators.
Bettencourt says he’ll file a bill to claw back the millions, if the PUC doesn’t act sooner.
“They haven’t been making the investments they needed to,” he said. “They haven’t been focusing on what we need in H-Town, which is our utility to keep the lights on.”
A spokesperson for the PUC says they understand and share the concern about the generators and look forward to receiving a letter from the Lieutenant Governor.
You can read Patrick’s full statement here.
The Texas Tribune contributed to this report.