Bill to allow more frequent utility rate hikes advances

Electricity consumers in Houston likely would see utility rate hikes more frequently under a bill passed by the Texas House of Representatives on Tuesday.

Senate Bill 1015 would make it easier for CenterPoint, the regulated utility that transmits power in the Houston area, and other electricity distributors across the state to seek an additional rate hike every year.

Power utilities pass along the costs to build transmission and distribution systems to electricity customers, a charge that shows up on utility bills as a separate line item often called a “delivery charge.” Under current law, to recover the costs for such work at the neighborhood level, the utilities once a year can request a rate hike from the city in which they operate as well as from the Public Utility Commission, which regulates utilities.

The new bill would allow CenterPoint and other utilities to seek a distribution-cost rate increase twice a year. The bill also would require approval from the PUC alone, not the local entity, and limit the time the PUC has to review the request to 60 days from 120.

The bill now heads back to the state Senate, which can accept the changes made in the House or send it to a committee where any differences can be hammered out.

Backers of the bill, including utilities CenterPoint and Oncor, say it will streamline the process to recover costs for building and maintaining systems to deliver power to homes.

Opponents, such as consumer advocates and the city of Houston, say it removes oversight and will increase electric bills.

Jason Fochtman/Staff file photo State lawmakers have advanced Senate Bill 1015, which would allow utilities to seek rate hikes twice a year instead of once.