Natural gas customers in the Houston area could soon see an increase in their monthly bills.
CenterPoint Energy, which supplies gas and electricity to much of the region, is seeking state approval for an "interim rate adjustment" for its natural gas services in the Houston and Beaumont areas along the Gulf Coast. The company said in a Feb. 18 filing with the Railroad Commission of Texas (RRC), which regulates the oil and natural gas industry in the state, that it's requesting the rate hike to recover more than $654 million in "additions and upgrades to its delivery system" between October 2023-December 2024.
If approved by the state agency, the rate increase would take effect as soon as April 19 and last for an indefinite period of time. Residential customers would see an additional $2.88 on their monthly bills, while large-volume gas customers would see a monthly increase of $61.20, according to CenterPoint's filing.
"CenterPoint Energy is committed to executing on its capital investment strategy for the safety, reliability and growth of its natural gas infrastructure, which is essential to meeting the current and future energy demand for one of the fastest-growing regions in the nation," the company said in a statement to Houston Public Media. "While making these investments in a sound and prudent manner, CenterPoint continues to keep customer affordability top of mind."
CenterPoint last month reported more than $1 billion in profits in 2024, a year in which it received backlash from both customers and state lawmakers for its response to Hurricane Beryl. The Category 1 storm that passed almost directly over Houston in July knocked out electricity to more than 2.2 million residents and businesses in the region – approximately 80% of CenterPoint's customer base – with prolonged outages contributing to several deaths.
The Public Utility Commission of Texas (PUC) subsequently issued a report on how CenterPoint could have improved its response and also launched an audit of the company amid claims it overcharged electricity customers by more than $100 million.
It was not immediately clear Wednesday whether CenterPoint's rate-increase application with another state regulatory agency, the RRC, is likely to be approved. A spokesperson for the RRC did not immediately answer emailed questions about the application and the timeline for it.
In a notice received Wednesday by at least one natural gas customer in Houston, CenterPoint said impacted residents and businesses in Southeast Texas can discuss the proposed rate increase with their local city councils or file written comments or protests with the RRC. Those comments can be mailed to Gas Services, Market Oversight Section, Railroad Commission of Texas, P.O. Box 12967, Austin, TX, 78711-2967.
CenterPoint's filing with the RRC says the rate increase, if approved, would be in effect until its next annual rate adjustment for the region or until the result of a broader rate case proceeding.
Since its last rate case filing, covering the period between October 2023 and December 2024, CenterPoint said it's made "capacity and reliability" improvements to support about 51,500 new natural gas customers in Texas. The company also said it's replaced about 300 miles of natural gas pipe and installed 175,000 new meters.