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Council backs statewide utility settlement that limits CenterPoint rate recovery
Summary
Freeport joined other Texas cities in approving a negotiated settlement with CenterPoint Energy to reduce and spread a proposed distribution cost recovery increase; the council approved the city’s participation unanimously after city attorney explanation of the Public Utility Commission process.
City Attorney Duncan explained on April 20 that CenterPoint Energy filed a request with the Public Utility Commission seeking permission to increase distribution recovery charges, and that the Texas Coalition of Cities for Utility Issues has negotiated a settlement to limit and phase that increase. The coalition represents affiliated cities in PUC proceedings and negotiates on their behalf.
Duncan recommended the council vote to approve Freeport’s participation in the negotiated settlement, explaining that the coalition’s approach seeks to reduce the immediate financial impact on customers by stretching recovery over time and by contesting portions of the requested increase. “I recommend that the council votes and approves the settlement,” he said. Council moved, seconded and approved the city's participation unanimously.
The council’s vote authorizes the city to remain aligned with the coalition’s negotiated settlement position before the PUC; the city does not unilaterally veto a statewide settlement—the outcome depends on votes from a sufficient number of participating cities and the PUC’s approval. City staff noted the civic rationale for joining the coalition is to keep rates lower for residents by leveraging collective legal representation.
