HOUSTON — CenterPoint Energy wants to raise natural gas rates for more than 430,000 customers in Houston.
The utility’s proposed rate hike would raise the average Houstonian’s bills by $5 per month.
Patrick Peters, Vice President Regulatory Legal at CenterPoint Energy, told Houston City Council on Wednesday the increase is needed to keep up with costs and deploy smart gas meters over five to ten years.
The proposal also calls for combining CenterPoint’s four Texas divisions into one, which Peters said would boost efficiency.
"There are things in Houston that do drive more costs, and so we believe that spreading them across the entire state will have benefits for the Houston customers as well,” said Peters.
Alton Hall, Counsel at Adams and Reese who’s served as a longtime outside lawyer for the city, argued consolidation will cost Houstonians more and cause them to fund repairs in other parts of Texas.
“In this case, Houston is absorbing, and in fact subsidizing, issues with the cost structure in the other two divisions that are getting decreases,” said Hall.
Hall urged Mayor John Whitmire and city council to deny the request and let the rate be decided before the Texas Railroad Commission.
He said state law would cap the final rate at CenterPoint’s requested amount, or it could end up being lower.
“What we want to do is try to ensure that whatever rates are being proposed are at the best interests of the residents, which are the end user,” said Edward Pollard, Houston City Council Member District J, who plans to vote no.
City council will vote on the rate hike in April.