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U.S. News
13 August 2024

Texas AG Launches Investigation Into CenterPoint Energy

Hurricane Beryl's aftermath prompts state inquiry as power outages and delays raise concerns

AUSTIN, Texas – The aftermath of Hurricane Beryl has led to significant attention and scrutiny surrounding CenterPoint Energy, the primary electricity provider for many Texans. With the storm resulting in widespread devastation and power outages affecting over two million customers, Texas Attorney General Ken Paxton has officially launched an investigation to assess whether CenterPoint’s response during the hurricane violated any state laws.

Hurricane Beryl made landfall on July 7, impacting residents across the Texas Gulf Coast. From disastrous power outages to increased utility rates and the unfortunate loss of lives believed to be due to hyperthermia, the community is still grappling with the storm’s aftermath. Beryl’s impact was not just limited to property and infrastructure, as it left many families without power for extended periods, some facing disruptions lasting days. Such disruptions naturally led to frustrations and calls for accountability from both the residents and political figures.

Ken Paxton addressed these concerns, stating, "The office of the Attorney General is aware of allegations concerning CenterPoint’s conduct during Hurricane Beryl, particularly how its actions may have led to significant harm to Houston residents, including rate increases and significant delays in power restoration." The stakes are high; if the investigation uncovers unlawful activity, Paxton assured the public, it would be met with the full force of the law.

The context for this inquiry arises from immediate reaction to CenterPoint's handling of the storm. Critics have pointed out significant shortcomings, with many feeling the company did not adequately prepare or respond to the disaster effectively. Texas Governor Greg Abbott has been vocal about his disapproval, stating, "CenterPoint completely dropped the ball on getting the power back on." Abbott established numerous deadlines for the company, demanding improvements to its infrastructure and management of risks to power lines.

The inquiry will particularly focus on allegations of fraud, waste, and improper use of taxpayer funds. Amidst this, the Public Utility Commission (PUC) has also initiated its own investigation, adding to the pressure on CenterPoint to provide satisfactory answers.

Given this backdrop, CenterPoint has admitted to deficiencies and has committed to substantial changes. After facing intense criticism for operational failures, the energy provider shared its intention to launch a strategic initiative aimed at enhancing its emergency preparedness and response protocols. Such initiatives stem from their recognition of the necessity to rebuild trust with the community.

CenterPoint's President and CEO, Jason Wells, has been at the forefront of these changes, expressing the company's commitment to becoming the nation's most resilient utility. He mentioned recently, "We have heard the calls for change, and we are taking action now. This first phase of our Greater Houston Resiliency Initiative will focus on several targeted actions to immediately strengthen our infrastructure across our communities." CenterPoint aims to replace wooden utility poles with stronger fiberglass poles, trim back vegetation threatening power lines, and improve customer communications and emergency coordination.

Notably, as part of their proactive measures, CenterPoint plans to implement advanced technologies and increase staffing at call centers, especially during storms, to alleviate customer frustrations and improve service efficiency. They are also preparing to educate the public about best practices related to vegetation near power infrastructure, recognizing its importance to power delivery and reliability.

The public's expectations are tangible, as communities across Houston remain vigilant for updates on both the inquiry and immediate improvements. Paxton has expressed his commitment to investigate thoroughly, highlighting the importance of transparent cooperation from CenterPoint with all agencies involved. The Attorney General’s investigation aims not just to identify problems and propose solutions but also to serve as the foundation for legislative actions intended to prevent such failures from rec occurring during the next inevitable storm.

Communities recovering from the devastation caused by Hurricane Beryl should brace for consequential changes, potentially leading to improved energy resilience and emergency readiness. The focus now shifts to how effectively CenterPoint implements these promises and whether the investigation leads to meaningful reforms within the energy sector to prevent similar situations from arising in the future.

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