Lt. Gov. Dan Patrick: Statement on Yesterday’s Senate Special Committee on Hurricane and Tropical Storm Preparedness, Recovery, and Electricity Hearing

July 30, 2024

"Public Utility Commission should claw back ratepayer increase now for dubious $800 million lease of generators."

AUSTIN - Lt. Gov. Dan Patrick issued this statement today following yesterday's Senate Special Committee on Hurricane and Tropical Storm Preparedness, Recovery, and Electricity hearing:

"During yesterday's 11-hour Senate Special Committee on Hurricane and Tropical Storm Preparedness, Recovery, and Electricity hearing, there were many questions about CenterPoint's controversial lease of massive generators that could not be quickly used as mobile generators as intended in Senate Bill 1075 and House Bill 1500 (88th Legislative Session). Those bills allowed companies like CenterPoint and Oncor to lease small mobile generators to quickly get power to hospitals, vulnerable populations, and cooling/warming centers.

"Instead, CenterPoint spent $800 million on massive, more expensive generators that could not be used for 99% of all emergencies but allowed them to make a huge profit. Oncor and similar companies followed the legislation and obtained small mobile generators for emergencies, as was the intent of the legislation, and have deployed them appropriately. In fact, since CenterPoint pursued profit over effectiveness, they actually had to borrow small mobile generators from those companies for Hurricane Beryl.

"The Public Utility Commission of Texas (PUC) approved reimbursing $800 million to CenterPoint over time by ratepayers. By leasing more expensive, massive generators, which they may never need and are of little to no use in 99% of emergencies, CenterPoint testified they will make at least $30 million in profits off the backs of ratepayers.

"CenterPoint violated the spirit and purpose of the legislation by leasing generators that are not truly mobile and, as they testified, have never been deployed for an emergency.

"It is clear they purposely violated the "reasonable and necessary cost" of leasing to make a profit instead of leasing smaller mobile generators that would have helped people without power during Beryl.

"Sen. Paul Bettencourt, R-Houston, said yesterday he will file a bill next legislative session to claw back the ratepayer increase for the $800 million that CenterPoint recklessly spent on these massive generators. His bill will pass the Texas Senate. However, ratepayers should not have to wait another year for the legislative process to take its course. The PUC can and should act right now.

"After what we learned in yesterday's hearing, I will write a letter to the PUC urging them to revoke their decision to grant CenterPoint's request for ratepayers to pay for that $800 million. CenterPoint will have to pay the $800 million from their own profits.

"Ratepayers should not have to pay for CenterPoint's lease of generators that are not mobile or helpful in 99% of the emergencies Texas faces each year.

"Call it potential fraud, deceptive practices, poor money management, or whatever you wish; CenterPoint purposely violated the intent of the legislation to make a profit while not helping their customers during a crisis."

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