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Public utilities

CenterPoint Energy Seeks $1.3 Billion in System Restoration Costs for Hurricanes and Winter Storm

Strategic Insights

— 1 min read

The Public Utility Commission of Texas (PUCT) has issued a preliminary order in response to CenterPoint Energy Houston Electric's application for determination of system restoration costs incurred due to Hurricane Beryl, Hurricane Francine, and Winter Storm Enzo. The application seeks recovery of approximately $1.3 billion in system restoration costs, including actual incurred costs, carrying charges, and estimated costs, as of March 31, 2025. CenterPoint Energy Houston Electric requests that the Commission designate the portion of the costs eligible for recovery through securitization and the portion to be recovered through wholesale transmission rates.

Key Takeaways:

  • The PUCT has referred the proceeding to the State Office of Administrative Hearings (SOAH) and has identified the following issues to be addressed:

+ The reasonableness and necessity of CenterPoint Energy Houston Electric's system restoration costs for Hurricane Beryl

+ The inclusion of estimated costs for Hurricane Beryl, including carrying charges and insurance proceeds

+ The reimbursement of costs associated with the restoration of service and infrastructure for Hurricane Beryl

  • CenterPoint Energy Houston Electric is seeking to recover $1.3 billion in system restoration costs, consisting of:

+ Actual incurred costs

+ Carrying charges

+ Estimated costs, including those related to Hurricane Beryl, Hurricane Francine, and Winter Storm Enzo

  • The Commission has mandated that CenterPoint Energy Houston Electric provide detailed information regarding its system restoration costs, including:

+ The specific costs incurred for each event

+ The reasonableness and necessity of these costs

+ Any insurance proceeds or government grants received to offset system restoration costs

  • The proceeding is subject to the statutory deadline of September 29, 2025, under PURA § 36.405(c).
  • The SOAH administrative law judge directed the parties to file lists of issues to be addressed in the docket and identify any threshold legal or policy issues.

Statistics:

  • Approximately $1.3 billion in system restoration costs are being sought by CenterPoint Energy Houston Electric
  • The system restoration costs consist of actual incurred costs, carrying charges, and estimated costs
  • The proceeding is subject to the statutory deadline of September 29, 2025
  • The Commission has identified 20 issues to be addressed in the docket

Sources:

  • Public Utility Commission of Texas

- Filed Date: 2025-06-05 03:14:52 PM

- Control Number: 58028

- Item Number: 38

  • Public Utility Regulatory Act (PURA)

- Section 36.402(a)

- Section 36.402(b)

- Section 36.402(c)

- Section 36.402(e)

- Section 36.405(c)

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