Texas
CenterPoint intends to ask Texas PUC for rate increase to recoup losses from Hurricane Beryl response
AUSTIN, Texas – As CenterPoint Energy remains in the hot seat, facing scrutiny for its response to Hurricane Beryl, the CEO has promised the energy giant will do better, but Texas lawmakers are wondering how much of that weight taxpayers will have to carry going forward.
During a hearing Monday held by a special senate committee in Austin, Senator Carol Alvarado asked CenterPoint CEO Jason Wells if the energy giant had any plans to go forward before the Public Utility Commission of Texas (PUC) for a rate increase and what that would look like and how taxpayers would be affected.
In summation, Wells admitted CenterPoint would ask for a rate increase, with the Senator sharing a brief bit of that exchange on X, formerly known as Twitter.
CenterPoint intends to increase their rates to recoup the cost of recovering from Hurricane Beryl, passing the cost on to the customer.
That dog won’t hunt. pic.twitter.com/QpTrJK9BkF
— Carol Alvarado (@CarolforTexas) July 30, 2024
“CenterPoint intends to increase their rates to recoup the cost of recovering from Hurricane Beryl, passing the cost on to the customer,” Alvarado said. “That dog won’t hunt.”
SEE ALSO: ‘We make no excuses:’ CenterPoint CEO sends letter to customers apologizing over Beryl response
Before the exchange shown on social media, Sen. Alvarado hoped to get a look at the bigger picture and asked Wells what CenterPoint looks for when they ask PUC for a rate increase to recoup efforts, noting they have to be “just and reasonable.”
Wells claimed the vast majority is to payback the lineworkers, vegetation management, and people who helped restore power, as well as materials used in the restoration efforts like power poles, and transformers. However, he emphasized the more than 50,000 workforce who helped restore service to over 2 million customers left in the dark for nearly a week.
Some customers, however, didn’t get their power back for more than a week and were forced to live in dangerously hot conditions inside their homes with no air conditioning, while temperatures outside soared into the 90s. Some of them lost their lives to heat illness.
What would a rate increase look like?
In pressing Wells during the hearing, Sen. Alvarado felt uneasy about even a $1 or $2 rate per customer per month “that never goes away,” and asked if the buck would stop there. That’s because CenterPoint already has a contending rate case with the PUC.
“We were required to file this rate case back in March of this year as part of our 2019 rate case for the company,” he said. “We made a commitment to file no later than the middle of March 2024 so we made it earlier this year.”
“What were you trying to recoup for?” Alvarado asked.
“This rate case covered all our capital investments that the company has made since the 2019 rate case as well as an update on our current level of operating and maintenance costs as well as a current update on the allowed return on the investment of our electric system,” Wells explained.
Is CenterPoint allowed to add additional costs?
“We basically submit the amount we spent for 2023 and use that as the basis for the request moving forward,” Wells added.
Still, Sen. Alvarado didn’t seem pleased with his response and pressed him again to ensure the rate increase would benefit the taxpayers despite having to pay extra on their electric bills.
“I just want to make sure you’re not doing less on proactive maintenance on vegetation,” Alvarado explained. “And waiting till a storm hits because you can recoup the cost once a tree hits the wire on a stem.”
“I can assure you, Senator we took proactive measures well beyond what we can recover in rates because it was the right thing to do given the impact the last several growing seasons have had on the trees in our area,” Wells said. “In the instance of the 35,000 trees we worked – that’s part of the restoration – that’s part of the cost we’d like to recover.”
That’s when the senator asked the question she shared in her video on social media: “Are you planning to go to the PUC on this storm and ask for a rate increase?”
“Yes, we are intending to file for recovery on the cost of this restoration,” Wells replied. “We have the burden of proof to prove those costs are prudent and reasonable but it is a cost – historically has been a cost that has been supported by the PUC.”
Sen. Alvarado, however, felt otherwise suggesting Wells would have to “jump through hoops” with the PUC to try and recoup the loss.
“I hope folks are really going to hone in on this and look carefully at what you’re asking for because there’s a lot of folks that are going to tune in; we’ve got a lot of our constituents [who] don’t want to pay – even if it’s a dollar or two extra a month when a lot of these costs could have been avoided.”
The hearing began at 10 a.m. Monday and the state livestreamed it, which you can find by clicking here.
Wells’ testimony comes just a week after his meeting with the PUC where he apologized to Houstonians.
“Let me begin by being very clear: our response to the impacts of Hurricane Beryl, including our communications, did not meet the high standard we expect of ourselves, let alone what the public expects of us,” Wells said.
‘Talk is cheap’: Outage victims react to CenterPoint’s apologies and promises to do better
As he did last week, Wells also announced initial action plans Monday to increase resiliency. For starters, CenterPoint has assured the public it will be introducing a new and improved online outage tracker by August 1.
“I take accountability for those areas where we fell short of our customer’s expectations, and I want to apologize for the frustration our customers and their families experienced as a result. There are no excuses. We will do better. We will improve. And we will act with a greater sense of urgency,” Wells said. “Hurricane Beryl impacted so many lives, and I want to express my condolences to the families and friends who lost loved ones.”
CenterPoint’s plan of action, which was initially announced during a hearing with the Public Utility Commission of Texas on Thursday, July 25, reflects more than 40 initial actions that the company is taking immediately and over the intermediate- and long-term, including:
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Resiliency Investments: By accelerating the adoption of the latest construction standards, retrofitting existing assets on an accelerated basis, and using predictive modeling, AI and other advanced technologies, CenterPoint will harden its distribution system and speed restoration. The company will also take action to protect its electrical assets by nearly doubling the size of its vegetation management crews and targeting higher-risk vegetation to address the number one cause of damage and outages in Hurricane Beryl.
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Best-in-Class Customer Communications: To ensure customers have the information they need when they need it, CenterPoint will launch a new and more customer-oriented outage tracker by August 1. This online tool will provide better and more complete information during storms and is designed to handle increased demand during such events.
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Strengthened Partnerships: Effective emergency preparedness and response requires close coordination with government officials. CenterPoint will hire a seasoned emergency response leader to help the company rapidly accelerate its planning capabilities and develop close community partnerships to ease the burden of storm events on more vulnerable communities.
Copyright 2024 by KPRC Click2Houston – All rights reserved.
Texas
Cal Pulls Young Linebacker From Texas A&M Out of the Portal
Tristan Jernigan, a Texas A&M sophomore linebacker who was a four-star prospect in high school, has signed with Cal out of the transfer portal.
Jernigan comes to Berkeley with three years of eligibility after seeing action in just two games this season. He played against Notre Dame without any stats and had three tackles, including one tackle for loss, against Samford.
He is the second members of the Aggies’ squad to join the Bears, following defensive end Solomon Williams, who signed last Sunday.
The 6-foot-1, 230-pounder from Tupelo, Miss., also drew interest from Tennessee, Memphis, Louisville, Ole Miss, Arizona State, Baylor and San Diego State.
Jernigan played eight games as a true freshman in 2024, primarily on special teams. He had 11 tackles, including five against McNeese State, and was named the team’s defensive scout team player of the year.
At Tupelo High School, Jernigan had 177 tackles with 11.5 sacks his final two seasons. Those teams compiled a two-year record of 22-4 with a Class 6A state semifinal appearance as a junior in 2022.
He was rated by 247 Sports as the No. 28 linebacker prospect in the class and the No. 9 recruit in the state of Mississippi.
He is not related to former Cal linebacker Myles Jernigan, who was from Grand Prairie, Texas, and spent five years in Berkeley through the 2023 season.
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Texas
American Airlines to start serving Texas BBQ on select flights
DALLAS – Starting in February, some American Airlines passengers will have the option of eating authentic Texas barbecue as their in-flight meal.
The airline said they’ll be partnering with Pecan Lodge restaurant to serve Texas barbecue on board.
American Airlines to serve Texas BBQ
The meals will be available to first-class passengers on flights from DFW International Airport to LaGuardia Airport and John F. Kennedy International Airport.
The meals will be available for preorder starting on Jan. 11 through aa.com or American’s mobile app.
What they’re saying:
“As we celebrate American’s centennial anniversary in 2026, we’re looking forward to delighting our customers in new ways that honor unique regional tastes, beginning right here in our home state through one of the most beloved barbecue restaurants in Texas,” said Rhonda Crawford, American’s SVP of Customer Experience Design and Strategy. “Our customers deserve nothing but the best, and Pecan Lodge is certainly that.”
Pecan Lodge meals
February offering: Pecan Lodge barbecue platter
Smoked brisket and smoked sausage, paired with creamy mac and cheese, crisp coleslaw and a side of pickles, onions and barbecue sauce
March offering: Smoked chopped brisket sandwich
Chopped brisket on a fresh brioche bun, served with roasted green beans, creamy potato salad and a side of pickles, onions and barbecue sauce
The Source: Information in this article comes from American Airlines.
Texas
John Cornyn makes campaign stop at Texas-Mexico border
HIDALGO — During a visit to the border Friday, U.S. Sen. John Cornyn said changes in immigration laws should wait until the border is completely secure, a contrast from Republican lawmakers who are willing to explore legal status for immigrant workers to address labor shortages prompted by enforcement efforts at work sites.
Cornyn was part of a group of Republican U.S. senators and Senate hopefuls who flocked to the Rio Grande Valley to praise President Donald Trump’s border policies as they attempt to promote their achievements and shape political narratives ahead of November’s midterm elections.
Aggressive enforcement by U.S. Immigration and Customs Enforcement has prompted some unauthorized workers to stay clear of job sites, leading to labor shortages in construction and restaurants. The Valley has been among the areas hardest hit by the worker shortage, prompting a group of local builders to call for solutions to economic struggles in their industry.
U.S. Rep. Monica De La Cruz, an Edinburg Republican, met with the group and expressed support for a visa program for construction workers, akin to the H-2A visa program that allows foreign nationals to work in the agriculture sector.
Cornyn, though, said it was too early to consider such an option.
“The first thing we need to do is secure the border,” Coryn said during a news conference along the border in the city of Hidalgo. “There is no way that the American people, and certainly my constituents in Texas, would allow us to take another stab at reforming our immigration laws until we’ve got the border secure.”
After securing the border, he said, the next step would be to remove people who “never should have been here in the first place.” Only after that had been accomplished, Cornyn said, should lawmakers delve into changing immigration laws.
Much of Trump’s border policy has been set by executive action. The Republican Congress passed $170 billion in funding for immigration and border enforcement through 2029, making ICE the best-funded law enforcement agency in the country and giving the agency unprecedented recruitment, enforcement, deportation and detention powers. But the effort did not codify many of Trump’s changes to border practices.
Senate Majority Leader John Thune, who stood beside Cornyn during Friday’s news conference, said he was open to legislation that would address the need for qualified workers but also said the first priority was to secure the border.
“I think we can work in a constructive way on how we come up with a mechanism whereby people who come to this country legally can contribute and be members of our work force,” said Thune, R-South Dakota.
ICE activity at construction sites has intimidated workers — those unauthorized to live in the U.S. and those with legal authorization — from accepting work, builders say. This labor shortage has prompted construction delays that economists suggest will drive up housing costs.
Absent a change in immigration laws, Cornyn suggested job sectors would benefit from cuts to assistance like the Supplemental Nutrition Assistance Program and Medicaid, saying it would encourage people to work.
“If you are an able-bodied young adult, you can’t qualify for food stamps, you can’t qualify for welfare benefits like Medicaid and the like, in order to encourage more people to get off the couch,” Cornyn said. “That’s good for them, good for their families, good for their communities.”
For Cornyn, who is locked in an expensive primary race with Attorney General Ken Paxton and U.S. Rep. Wesley Hunt of Houston, the news conference was also an opportunity to tout a major provision from Republicans’ 2025 mega-bill — reimbursement for Operation Lone Star.
Cornyn publicly stated during spring negotiations that his vote in support of the package was contingent on reimbursing Texas for Gov. Greg Abbott’s border security initiative. Ultimately, the One Big Beautiful Bill Act, passed in July with support from nearly all Republicans and no Democrats, included $13.5 billion in two funds to reimburse states for border security spending.
Abbott had requested $11.1 billion, and the vast majority of the bill’s money is expected to go to Texas. But six months after the bill’s passage, the Trump administration has yet to allocate funding. State Republicans, led by Cornyn, U.S. Sen. Ted Cruz and U.S. Rep. August Pfluger, sent a December letter asking the departments of Homeland Security and Justice to prioritize Texas in the disbursement.
“That money will now soon be flowing into the coffers of the state of Texas, to the tune of roughly $11 billion, to do justice — which is to reimburse Texas taxpayers for stepping up and filling the gap when the federal government simply refused to do so,” Cornyn said Friday. “That would not have happened without the leadership of the majority leader and the whip and the direction of the president of the United States, to whom I am very grateful.”
The Cornyn campaign and allied groups have spent more than $40 million in advertising, helping to close Paxton’s initial polling lead. Polls have shown no candidate close to the 50% threshold needed to avoid a runoff in the March 3 primary.
Cornyn has the backing of Thune and OneNation, a group aligned with the Senate Republican leader that organized Friday’s border trip after spending millions in pro-Cornyn advertising.
Thune on Friday praised Cornyn, whom he beat out to become majority leader in 2024.
“He has been such an advocate through the years on the issue of border security — foremost expert on it,” Thune said. “Most of us, what we know about the border, we know from him.”
Part of Cornyn’s campaign strategy has been to emphasize his support for Trump in ads and on social media. Thune, Cornyn, other Republican senators and Senate hopeful Michael Whatley, former chair of the Republican National Committee from North Carolina, praised Trump’s border actions, with Cornyn expressing his gratitude for Trump’s leadership in getting the One Big Beautiful Bill passed and for his Border Patrol leadership appointments.
The president’s endorsement — or lack of, thus far — has factored heavily into the state’s Senate primary. It is one of a handful of Republican contests for Senate where Trump has yet to put his thumb on the scale, and the president has said that he likes both Cornyn and Paxton.
Cornyn and Thune have appealed to Trump for his endorsement.
The border trip was also an opportunity for Cornyn’s opponents to press their cases.
Paxton preemptively criticized Cornyn’s visit in a Thursday statement that noted the senator said a border wall “makes no sense” in a February 2017 speech in Weslaco, among other instances of wall skepticism in early 2017. At the time, Cornyn said technology and personnel are more effective than physical barriers in some areas. On Friday, Cornyn praised the border wall and its outfitting with cameras, sensors and other technology.
“His 40-plus year career has been spent fighting for amnesty for illegals, cutting deals with Democrats, trying to stop President Trump, and standing in the way of building the wall,” Paxton said in the statement. “Texans aren’t going to forget how Cornyn’s betrayed our country, and no last minute trip to the border to try and act tough is going to change that.”
Hunt posted an ad on X criticizing Cornyn’s previous apprehension for a border wall.
“Now that Trump’s secured our border, John Cornyn wants to take the credit for the wall he tried to block,” the ad said.
Reporting in the Rio Grande Valley is supported in part by the Methodist Healthcare Ministries of South Texas, Inc.
Disclosure: Methodist Healthcare Ministries of South Texas, Inc. has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here.
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