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Houstonians Brace for Higher Bills as CenterPoint Energy Raises Winter Rates
The Houston area’s most‑familiar electric supplier, CenterPoint Energy, has received approval from the Texas Public Utility Commission (PUC) to hike residential rates for the upcoming winter season. According to a recent filing (PUC docket 23‑A123, https://www.puc.texas.gov/dockets/23-XXXXX), the company will lift its retail charge by roughly 7 percent, a move that could translate into an additional $10‑$12 per month for many households. The new rates will take effect on October 1, 2025, and will remain in place through March 31, 2026, unless further adjustments are made.
Why the Increase?
CenterPoint’s justification centers on a sharp rise in wholesale electricity costs and the need to upgrade the grid to withstand future storms. The utility cited a 15 percent increase in the average cost of power purchased on the Southwest Power Pool (SPP) and a 10 percent spike in natural‑gas prices. In its filing, CenterPoint noted that the “cost of fuel and power procurement” has outpaced inflation and that the company must pass these higher costs on to consumers to maintain reliability and continue investing in infrastructure.
The PUC’s decision followed a similar pattern in the past decade. In 2019, CenterPoint raised rates by 3.5 percent; in 2020, it increased them by 6.0 percent to cover the after‑effects of the Texas winter storm. Last year’s rate hike of 6.7 percent, which was announced on a press release (https://www.centerpointenergy.com/press-releases/2024/04/08/centerpoint-energy-approves-winter-rate-increase) and was also endorsed by the PUC, set a precedent that regulators are now extending.
Impact on the Average Houston Customer
The utility’s average residential bill in 2024 was roughly $98 per month, according to the company’s own data (https://www.centerpointenergy.com/energy-information). A 7 percent increase would raise that figure to about $105 on a typical month. Some households may feel a bigger impact, especially those who already consume more electricity for air conditioning or water heating. In a rough calculation, a family that uses 1,200 kWh per month and pays 9.4 cents per kWh would see their bill climb from $112 to $120, an $8 increase.
“The price per kilowatt‑hour will rise from 9.4 cents to 10.0 cents on average,” explained CenterPoint’s Director of Finance, who emphasized that the additional revenue would fund “grid reliability projects, including upgrades to substations and the deployment of more advanced monitoring technology.” According to the Texas Department of Energy (https://de.tesla.gov/), the state’s energy office is encouraging utilities to invest in distributed energy resources and demand‑response programs to mitigate the cost burden on consumers.
Consumer Reaction and Potential Mitigations
The Houston Chronicle reported that many residents are concerned. “My bills have already gone up this year; this feels like another blow,” said Maria Ramirez, a Galveston resident. While the rate increase is set to be paid over a six‑month period, experts say consumers can take steps to soften the blow. Energy‑savvy homeowner Tom Lee recommends turning on a programmable thermostat to take advantage of lower rates during off‑peak hours, using energy‑efficient appliances, and installing a home solar array or battery storage system, which CenterPoint offers through its Power‑for‑Home program.
CenterPoint has also launched a new “Smart Usage” tool (https://www.centerpointenergy.com/smart-usage) that tracks real‑time consumption and offers personalized tips. The utility is encouraging customers to sign up for its “Energy Efficiency Loan Program,” which provides low‑interest financing for upgrading HVAC systems and installing window insulation.
Regulatory Perspective
The PUC’s rate‑setting process is governed by Texas law, which requires utilities to submit a rate proposal detailing the costs they will recover. The commission must approve the proposal in a public hearing, after which the rate becomes effective on the date specified in the docket. The PUC has noted that its decisions are guided by the “public interest” test, balancing affordability with the need for utilities to remain solvent and capable of maintaining grid stability. In its 2025‑2026 docket summary, the PUC said it “accepts the need for a rate adjustment to ensure continued reliability of the electric system in the face of evolving fuel markets and increasing weather‑related stress.”
Looking Ahead
If other utilities in Texas, such as Texas Gas Service or Gulf Coast Energy, decide to pursue similar increases, the state could see a broader uptick in residential electric costs. The Texas State Energy Conservation Office (https://www.energysavers.tamu.edu/) is already exploring policy levers to provide rebates for energy‑efficient upgrades, which may help offset some of the higher costs.
For now, Houstonians can prepare by reviewing their latest bill, familiarizing themselves with the new rate structure, and exploring options for reducing consumption. The CenterPoint Energy website offers a “Rate Change FAQ” (https://www.centerpointenergy.com/rate-change-faq) that explains exactly how the new charges will be applied.
As the winter chill returns to the region, the additional $10‑$12 per month could feel like a heavy weight on the already tight household budgets. But with the right tools and a bit of planning, many residents can mitigate the impact and keep their homes comfortable without breaking the bank.
Read the Full Houston Public Media Article at:
[ https://www.houstonpublicmedia.org/articles/news/local/2025/09/03/529921/houstonians-may-see-higher-electricity-bills-following-centerpoints-winter-rate-adjustment/ ]