Senator Alvarado testifies at PUC Centerpoint meeting

Centerpoint Energy criticized by public

By David Taylor

It was the first time in decades that the Public Utilities Commission stepped outside of their Austin confines to host a public meeting in Houston and the public responded. From organizations to individuals, businesses and other entities, they came with their own horror stories related to Hurricane Beryl and CenterPoint.

The first person to testify before the committee, however, was Lt. Governor Dan Patrick who lauded the response of the state, affected counties, and the city of Houston who took a direct hit. “I cannot say I’m proud of the work of CenterPoint,” he lamented, “neither in preparation, communication, or recovery of the storm.”

Patrick, who arrived in Harris County in 1979, said he had endured the same as every other resident and understands the risk of flooding and storms.

“We are patient people. We help people. We come together. We are Texas strong,” he said.

“This is not the CenterPoint that I know from the past or the company that preceded them, and their failures resulted in misery for the most vulnerable, misery for everyone [including] the economic impact on businesses and people who couldn’t go to work and for the over 40 people who died in the storm,” he continued.

He doesn’t blame CenterPoint for all the deaths that occurred, some were accidents, but he squarely put the blame on them for those who died heat-related deaths due to a poor response by CenterPoint.

Patrick related an interview CenterPoint CEO and former CFO of the company Jason Wells had with a KPRC Channel 2 reporter.

“The reporter asked Jason, the city of Houston and many others believe that CenterPoint has been overcharging customers by as much as $100 million a year. What do you say? These are Jason Wells’ exact words—‘We want to work with all our stakeholders on what is a fair rate for our service. [Pause] I don’t think we’re overcharging our customers $100 million.”

“This is the CEO and the former CFO of CenterPoint and you don’t know if you’ve been overcharging the customers $100 million?” Patrick charged. “That’s an answer from a low level management person, not the CEO of CenterPoint.

Wells, who testified later in the hearing, unequivocally denied the company was over charging customers.

Patrick proceeded to ask the commission to conduct an audit and review the utilities management and business operations.

Patrick also blamed the CenterPoint CEO for not being prepared for the storm though he had three to four days.

“In communication, no one knew who to turn to. No one could get a response. It was the poorest response to citizens and elected officials trying to reach them of any storm I’ve ever seen,” he said.

Patrick continued levying charges against the company and finally called for the resignation of Jason Wells from CenterPoint.

Senator Carol Alvarado, who also testified at the hearing, said she is planning on getting at briefing from Houston City Attorney Arturo Michel who allegedly lodged the allegations of overcharging by Center- Point.

“I haven’t seen anything, so I really can’t comment on it, but I am looking forward to hearing what he has to say, and they have it documented someway, somehow,” she said.

Alvarado testified that these storms are now becoming a battle of haves and have nots.

“I applaud people who can afford one [generator], it’s great but they shouldn’t have to make that investment. We have a generation problem, grid issues and this affects us year round,” she said.

“I think it’s gotten better.”

Alvarado was also considering legislation that would hold a multifamily complex in Jacinto City and others like it responsible if they abandoned their residents.

“Places like that are difficult because they’re not registered with the state. It’s privately owned but they cater to seniors,” she said. Alvarado discovered the management allegedly bailed on the residents during the storm leaving the residents on the second floor abandoned without supplies, food, or assistance. Many of them were in wheelchairs and had to be brought down by Jacinto City Fire Department.

“We are going to try to do something about that, and I think I’ll have the bipartisan support in both chambers to get it done,” she said.

Alvarado also hoped that future responses to the storms would be equitable.

“It seems that the lower income neighborhoods and our unincorporated areas are always hit the hardest and I just want to see them get equal treatment. It’s harder since they have no city council member or mayor to reach out for them,” she said.

Wells testified that the company was moving along with their resiliency program announced in the wake of the controversy.

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