SELECT Americans will be forced to pay a new electricity bill fee soon as energy costs remain high nationwide.
It comes as part of a request for a widespread rate hikes from a prominent utilities company.
Some Americans will see an energy bill increase over the next 15 years (stock image)[/caption]
The costs come amid power line damage during storms last year (stock image)[/caption]
State regulators in Texas confirmed this month that CenterPoint Energy will be allowed to charge residents in Houston about $1.2 billion as a result of Hurricane Beryl and two other storms in 2024.
Households will, on average, see about $2 per month added to their monthly electricity bill over 15 years, according to what CenterPoint chief communications and marketing officer Keith Stephens told the Houston Chronicle recently.
“This settlement allows us to spread these costs over a longer period,” Stephens explained.
CenterPoint customers are effectively helping pay for the damage caused by the storms, and will see the increases start sometime later this year or at the beginning of 2026.
At least 2.2 million lost electricity after Hurricane Beryl for several days.
These outages were widespread, and immediately sparked Texas politicians to demand reforms.
Some lawmakers were even vocally against CenterPoint charging customers for the damage.
Still, the $1.2 billion rate hike application was made by CenterPoint to the Public Utility Commission of Texas for Hurricane Beryl.
About $60 million from the application was also for Hurricane Francine, which predominantly hit Lousiana in September 2024, and a snowstorm in January of this year.
The reason CenterPoint needs state regulator approval before raising prices is because it holds a monopoly over the power lines of a specific region (Houston).
Given that the approval was awarded, CenterPoint can legally charge customers for all “reasonable” costs, including those that are the result of responding to extreme weather.
Earlier in 2025, CenterPoint was already granted approval for a $400 million price hike proposal, and this month’s approval actually makes the grand total worth around $1.6 billion, equating to a $3 monthly increase to the average bill for Houston residents over 15 years.
SOME CUTS
It’s also important to note that CenterPoint’s original settlement request to the Public Utility Commission of Texas was $1.3 billion.
Houston-based lawyers argued that the utility company should have to absorb at least $200 million worth of the costs before passing the rest onto its customers.
Energy Bills: By the Numbers
- 64% of Americans whose household pays a monthly electric and gas utility bill say those bills have increased compared to a year ago.
- 63% of billpayers indicate that their electric and gas utility bills are adding to their financial stress.
- 48% of all Americans say that rising electric and gas utility bills for consumers like them is a bad sign for the economy.
- 60% of Americans say they are not familiar with the state or local regulatory body that determines their utility bills. In a separate open-ended question, around 9 in 10 respondents could not correctly name their specific regulatory body.
Source: PowerLines
They claimed that CenterPoint didn’t adequately inspect or maintain infrastructure before Hurricane Beryl, which lead to damage that could’ve been avoided.
CenterPoint disputed those allegations, arguing that evidence of this “simply does not exist” and blaming a “vast majority” of damage on high winds and vegetation that was not the company’s responsibility.
By August, CenterPoint agreed to cut its request down by $100 million to the $1.2 billion (minus about $2.2 million in legal and consulting expenses).
It could also seek to charge customers for many of those removed costs, about $78 billion worth, in a separate filing if it chooses.
Customers should also know that the $1.2 billion increase will go through a process called securitization, according to what Stephens told the Houston Chronicle.
Stephens said it’s “part of our commitment to work to keep customer bills affordable” and lets CenterPoint improve interest rates to pay back its storm debts, resulting in about $265 million in savings then passed on to customers.
STAYING STRONG
Stephens also said CenterPoint is continuing to work for its customers to build “the most resilient coastal grid in the nation.”
The utilities company has already built 26,000 stronger poles, buried 400 miles of power lines, and trimmed trees along 6,000 miles of standing power lines.
CenterPoint estimates that the work has cost about $500 million, which has been included in the rate hike request.
It’s also seeking approval moving forward for a hike worth about $3 billion to continue improvements from 2026 to 2028.
Americans in select states are also getting energy credits this month.
At least three this month are worth up to $1,100 and can automatically be scored by many residents.
Those located in West Virginia can get heating payments worth up to $259 as well.
