A new proposal could help reduce the financial burden on Houston-area customers who have been paying for unused generators leased by CenterPoint Energy. The plan under review by the Electric Reliability Council of Texas (ERCOT) suggests sending 15 large generators—each capable of powering 30,000 homes—to CPS Energy in San Antonio to address power supply shortages in the region. If approved, this move would lower customer bills starting in spring 2025, as Houston-area ratepayers wouldn’t be charged for any costs while the generators are in San Antonio.
CenterPoint’s $800 million generator lease has drawn criticism, as the units have never been used for power restoration, including after Hurricane Beryl. They are difficult to deploy and unsuitable for storm-damaged areas. Under the proposal, CPS Energy would use the generators for about two years, replacing the need to keep two natural gas plants at the Braunig complex running. This move would save an estimated $56 million in maintenance costs. Even after the generators are returned, Houston customers would not be charged for their use until CenterPoint’s lease expires in 2029.
ERCOT has been working to address power shortages in San Antonio, where inadequate power line capacity has hindered the transfer of electricity from South Texas wind farms. Overloaded power lines triggered a grid emergency in September 2023, and without additional power sources, the risk of outages remains.
Meanwhile, CenterPoint has already passed on $350 million in generator costs to customers, adding $2.39 to the average monthly bill. The company is hopeful that the proposal will provide a positive solution, reducing costs for customers while addressing Texas’s energy needs.
ERCOT is still reviewing alternative, more cost-effective solutions, but CenterPoint’s generators are seen as a viable option. Additionally, the Public Utility Commission of Texas recently approved new rules requiring utilities to provide more detailed plans when leasing generators, aiming to improve transparency and accountability.
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