HOUSTON, TX — Residential customers across the Houston area will begin paying slightly more on their electricity bills following the approval of a storm recovery surcharge by the Texas Public Utility Commission. The increase, which amounts to approximately $1 per month, is part of a long-term effort to recover $425 million in costs tied to the May 2024 derecho storm that caused widespread power outages and infrastructure damage.
CenterPoint Energy will recoup these expenses using a 15-year securitization plan, a financing method that allows the company to issue bonds backed by future customer payments. This approach is expected to save ratepayers over $50 million in interest costs, compared to more traditional recovery methods.
The May 2024 storm left a trail of destruction across the Greater Houston area, damaging transmission lines and knocking out power for hundreds of thousands. Recovery efforts required extensive repair to poles, lines, and substations—costs that CenterPoint now aims to recover through this approved surcharge.
Although the monthly increase is modest, the decision highlights the long-term financial impacts that extreme weather events continue to have on the region’s energy infrastructure and consumers.
CenterPoint officials say the surcharge is necessary to maintain service reliability and ensure the company can respond effectively to future storms. Critics, however, argue that utility companies should shoulder more of the financial burden or seek state funding support to minimize impacts on residents.
This rate adjustment is one of several expected in the coming years as CenterPoint embarks on major infrastructure improvements and resilience upgrades. A proposed $5.75 billion grid modernization plan and other pending cost-recovery efforts could bring additional rate changes in the near future.
For now, Houston residents can expect to see the storm recovery fee reflected in their monthly bills beginning May 2025.
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