As Texans continue paying off the costs of the deadly 2021 winter storm, state lawmakers...
of the deadly 2021 winter storm, state lawmakers are considering a Republican-backed proposal that would allow for more frequent rate hikes and prevent cities from challenging the increases.say it would help bolster the power grid, making it easier for utilities to recover the costs of building poles and wires to transmit electricity across growing cities.
Critics say the bill would cost ratepayers millions. It would amount to"utility self-regulation," with “the potential of multiple, sizable increases to ratepayers over a very short period,” argued Tina Paez, director of Houston's Administration and Regulatory Affairs Department. Aside from distribution costs, utilities are allowed to seek rate hikes up to twice a year for work on transmission lines, which carry electricity from power stations to substations . King said his bill would apply the same standard to both transmission and distribution lines.
The proposal comes as CenterPoint Energy, the regulated utility that distributes most of the electricity in the Houston area,Jason Ryan, CenterPoint's executive vice president of regulatory services and government affairs,to spread out the cost over time, so it would represent less than a $1 dollar increase of the rate base on monthly bills. But consumer advocates say Texas utilities have been layering on costs gradually that add up to significant increases in customers’ monthly bills.
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