HOUSTON, TX – CenterPoint Energy announced plans last week to spread the $450 million emergency response costs from the May 2024 Derecho storm across a 15-year period, resulting in a minimal bill increase of approximately $1 per month for customers. The proposed financing, filed with the Public Utility Commission of Texas (PUCT), aims to save customers more than $50 million in interest charges over the period.
The May 16 Derecho storm, which caused an estimated $5 billion in damages unrelated to CenterPoint infrastructure, was labeled a “once-in-a-generation” event with wind gusts exceeding 100 miles per hour and several tornadoes across Greater Houston. The fast-moving storm shattered windows, damaged homes and businesses, and downed thousands of power poles and critical equipment. CenterPoint activated its emergency response, mobilizing over 7,700 personnel and resources to assess and repair widespread damage, restoring power to approximately 750,000 customers within 72 hours and 98 percent of customers within five days.
“The Derecho that struck the Houston region in the spring was an unprecedented and extreme weather event that caused billions in damage to our communities and a significant portion of our electrical infrastructure,” said Jason Ryan, CenterPoint Energy’s Executive Vice President of Regulatory Services and Government Affairs. “This proposed cost recovery plan reflects our commitment to minimize the impact on our customers’ electric bills while addressing the significant costs related to mobilizing thousands of frontline workers to repair and rebuild the damaged portions of the energy system and restore power.”
CenterPoint’s response included deploying 13 emergency generation units to critical facilities, establishing nine staging sites to coordinate restoration efforts, and replacing 400 miles of electrical wires, 1,600 transformers, and approximately 1,600 power poles.
The company’s plan involves securitization, a lower-cost financing method frequently used in Texas to recover expenses from major weather events, allowing for cost distribution across multiple years. The surcharge is expected to decrease below $1 per month by the second half of 2026, following a thorough PUCT review.
This filing does not include costs related to CenterPoint’s response to Hurricane Beryl in 2024. CenterPoint expects a decision on the plan in 2025.
