August 10, 2010
Two Public Meetings on CenterPoint Energy's Proposed Rate Increase
The City of Houston has decided not to approve CenterPoint Energy's request for an electric rate increase for Houston customers. As allowed by law, the city can suspend or deny the proposed rate change and Mayor Annise Parker has recommended that the rates be suspended, rather than be denied altogether, to allow the city's experts to review the proposed rate increase to determine if it is justified, or if a rate reduction might be in order.
As part of its review process, the city will hold two public meetings to allow ratepayers the opportunity to voice quality of service concerns and/or objections to the proposed rate increase. The meetings will be held on Tuesday, August 17, 2010 and Tuesday, August 24, 2010, from 6:00 p.m. to 8:00 p.m., on the Public Level of the City Hall Annex, 900 Bagby, 77002. All Houston customers served by CenterPoint Energy are welcome to attend.
By way of background, on June 30, 2010, CenterPoint Energy filed a request to change rates for Houston customers. If CenterPoint's proposed rates went unchallenged, the average residential customer using 1,000 kilowatt hours (kWh) per month would experience an increase in their monthly electric bill of approximately 5 percent, or $5.53 per month, assuming an existing retail rate of $0.1115 per kWh. CenterPoint is proposing to increase rates for residential customers, while decreases are proposed for certain rate classes of commercial and industrial customers.
With a reported 760,000 in-city residential customers within the Houston service area, a proposed monthly increase of $5.53 for residential customers equates to an annual increase in revenues of approximately $50.6 million for CenterPoint. CenterPoint is also requesting an additional $7 million increase in its rates for streetlights, which will directly affect the City of Houston as a customer.
For more information, please contact Tina Paez at Tina.Paez@houstontx.gov or 713-837-9630.