HOUSTON – If your electric bill feels like it keeps getting more expensive, you’re not imagining it. CenterPoint’s delivery charges have increased.
For Houston-area customers, a portion of each monthly electric bill goes to CenterPoint Energy for transmitting and distributing electricity.
But how much are customers paying CenterPoint — and what happens to that money?
That’s what ENOUGH set out to find out.
How much of your electric bill goes to CenterPoint?
We asked electric customers to look at their bills and tell us how much they paid for the electricity they used compared with how much went to CenterPoint.
For Sean Gambini, 41% of his September bill went to CenterPoint through the transmission and distribution, or TDU, charge.
His total bill was $795.61, with $322.28 going toward the TDU delivery charge.
Another customer, Javier Alvarez, said 82% of his bill went to CenterPoint. He paid $67.90 in CenterPoint charges compared with $82.45 for the electricity itself.
Dan and Irene Phillips said about $220 of their roughly $720 bill went to CenterPoint.
“Our electric bill has almost doubled,” Dan Phillips said.
Why has the CenterPoint charge increased?
CenterPoint is a transmission and distribution utility, which is why its charge on your electric bill is called a TDU fee.
According to the figures reviewed by ENOUGH, CenterPoint’s per-kilowatt-hour delivery rate has increased over the past several years.
In 2020, the rate was 4.05 cents per kilowatt-hour, in addition to a $4.90 monthly fee.
In 2026, the rate is 6.41 cents per kilowatt-hour, while the $4.90 monthly fee remains.
For customers who use 2,000 kilowatt-hours of electricity each month, the difference in the rate amounts to about $566 more per year.
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CenterPoint says its charges are not profit
CenterPoint told ENOUGH that the fees customers pay cover the utility’s costs for infrastructure and other expenses.
The company said it does not earn a profit on day-to-day operating and maintenance costs.
CenterPoint provided this statement to ENOUGH:
“When we invest in infrastructure, we’re allowed to earn a regulated return on that investment, which is set by the Public Utility Commission of Texas in rate cases.”
The company said those capital costs are recovered gradually over time, typically over decades, while day-to-day operating and maintenance costs are passed through to customers without a profit.
So how does CenterPoint make money?
CenterPoint is a publicly traded, Fortune 500 company.
The company reported about $1 billion in profit last year, according to SEC filings.
The story also examined CenterPoint’s stock performance and executive compensation, including a reported $3 million increase in CEO Jason Wells’ compensation last year.
When the Public Utility Commission of Texas approves utility rate increases, those rates include an allowed return on equity for investors.
Energy and utility policy experts interviewed by ENOUGH said that structure can provide utilities and their investors with a regulated return on infrastructure investments.
Krysti Shallenberger with the Energy and Policy Institute said utilities benefit when they propose major infrastructure projects because those investments are included in the utility’s rate base.
Tyson Slocum with Public Citizen said utilities have less financial incentive to spend money on routine maintenance that does not qualify for the same return.
A CenterPoint representative confirmed this in the following statement he sent by email:
“Day to day operating and maintenance costs are passed through to customers without a profit.”
What is the Public Utility Commission’s role?
The Public Utility Commission of Texas regulates electric utilities and approves utility rate cases.
The commission is made up of four commissioners and a chairman, all appointed by the governor, according to the ENOUGH investigation.
ENOUGH asked members of the PUC to speak with us about CenterPoint’s rate increases and if the increased profits should factor into whether more increases are necessary. None of the commissioners responded to our interview request.
Then we learned PUC Chairman Thomas Gleeson would be in Houston for the opening of a new power plant in northwest Harris County.
So, ENOUGH reporter Stephania Jimenez and producer Andrea Slaydon tried to get time with him.
We contacted the chairman’s office ahead of the event and asked for an interview about the impact of the new power plant on customers and the rate increases approved by the PUC.
The chairman’s spokesperson initially asked what questions we planned to ask.
We explained that we wanted to discuss the power plant, rate hikes and the PUC’s role in those decisions.
A few days later, the spokesperson responded that Gleeson would not be able to accommodate the interview request.
ENOUGH still went to the event.
Jimenez introduced herself to Gleeson and asked if there would be an opportunity to speak with him. She was told they could try again at the end of the event.
After the ribbon-cutting ceremony, our team tried again. But we were told the media could not go beyond that point.
So we did not get the interview.
That leaves an important question for customers: As CenterPoint’s rates increase, who is asking whether those costs and the utility’s investments are delivering the results customers expect?
https://www.puc.texas.gov/agency/about/commissioners/gleeson/
Customers say they’re paying more but still dealing with outages
The ENOUGH investigation also looked at whether customers are seeing improvements in service as CenterPoint’s rates increase.
Angelyque and Alvin Pegues, who live in Fulshear, told ENOUGH frequent outages disrupt their work and put additional strain on their appliances.
“I think that CenterPoint just really needs to look at the community that they’re serving and do better,” Angelyque Pegues said.
The investigation also reviewed CenterPoint’s own report to shareholders, which shows the company fell short of two customer-related goals: customers experiencing multiple interruptions and customer satisfaction. Even though the company fell short on those metrics, CEO Wells still earned a $3 million pay increase.
CenterPoint told ENOUGH that its efforts to make the grid more resilient are producing results.
The company said its work has prevented more than 100 million customer outage minutes in less than two years.
ENOUGH is tracking CenterPoint
CenterPoint’s rates, profits and service affect millions of electric customers across the Houston area.
ENOUGH will continue tracking the company’s rates, outages, profits and service — and asking questions about what customers are getting for what they pay.
What are you experiencing where you live?
If you have questions or concerns about your CenterPoint service, send us a message on the KPRC2 Help Desk.
