More Information and Investigations
Needed
AUSTIN,
Texas, July 17, 2024 /PRNewswire/ -- Texas
Consumer Association (TCA) calls on the Public Utility Commission
of Texas (PUC) and state lawmakers
to delay all transmission and distribution system resiliency plan
cost increase proceedings before the Commission until state
agencies' investigations and CenterPoint's internal reviews are
completed. This will also allow for adequate time to fully review
all cases in which companies are requesting approval of resiliency
plans.
The PUC should also delay all settlement talks on existing
CenterPoint rate cases until the agency investigation is completed.
It's important that the Commission not automatically approve past
actions only to learn from the investigations there were better and
more efficient uses for ratepayer money.
In his July 14 letter to PUC
Chairman Thomas Gleeson, Gov.
Greg Abbott said he was "directing
the [PUC] to undertake a rigorous study to determine the causes of
the repeated and ongoing power failures in the Greater Houston area after severe weather
events. Some questions that must be answered include: Is the cause
of the magnitude and duration of customer outages a result of
physical infrastructure or personnel issues? What was the utility's
pre-event planning process? Why exactly were so many Texans left
without power for so many days? When and for what purposes did
utilities use their mobile generation resources?"
TCA President Sandra Haverlah
agrees these are great questions. More importantly, CenterPoint's
answers to these questions could impact all the plans submitted by
electric delivery companies across the state, whether their
challenge is wildfires, hurricanes, or high winds. Therefore, it
would be prudent to wait for the investigation to determine if the
submitted plans take into consideration CenterPoint's real-time
experience and the outcomes of the investigations.
Currently, CenterPoint has two pending cases before the
PUC, which would significantly increase customer rates. Given that
one of the rate cases was filed based on past CenterPoint
processes, which proved ineffective during Hurricane Beryl,
approving any increase based on those practices and business
investments would be imprudent. TCA believes that all of
CenterPoint's existing cases, as well as all electric delivery
proposed investment proposals, are best delayed until a
comprehensive investigation is complete.
Haverlah said: "Customers pay for services expecting
reliability. Depending on where they live, they believe they pay
for hurricane protection, wildfire outage prevention, or a system
hardened for high wind. It should be made transparent what work was
completed and it should be clearly communicated the level of
measurable reliability customers can expect. Customers and the PUC
should have a clearly defined way to measure the utilities' success
or failure at their 'one job' – keeping the power on. Customers
deserve to know where their money goes and whether it was
well-spent. We don't have that now. Based on CenterPoint's current
performance, there's no reason to believe that money customers paid
for the past 25 years was spent in a way to improve reliability or
storm response."
Haverlah said before any plans are approved, it's important to
note that lawmakers may set new standards as part of the process
that will impact all electric delivery companies, so approval of
any proposed plans should be halted too, at least through the
legislative session.
"If lawmakers and the PUC determine there should be new
standards, it could dramatically impact electric delivery
companies' plans. The PUC should only approve plans with the latest
information available, which will come from the PUC and future
legislative investigations," she said. "Customers should not pay
for services that the legislature will change in nine months."
Based on the uncertainty of the legislative session, any rate
increases approved by the PUC before the end of session can be
called into question. It is prudent to delay any existing
proceedings for both customers and investors.
Texas Consumer Association is a non-profit organization
representing individual and small-business consumers on pocketbook
issues for over 50 years. Find TCA at
https://www.texasconsumer.org/ and on X (Twitter) @TXConsumer.
Email info@texasconsumer.org. For more information or questions,
you can reach Sandie Haverlah,
President of TCA, at (512) 423-0913.
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SOURCE Texas Consumer Association