Patrick calls for CenterPoint to pay back $800M lease for generators

AUSTIN (KXAN) -- Texas Lt. Gov. Dan Patrick said Tuesday Houston energy company CenterPoint should pay the $800 million cost to lease generators without passing that expense on to ratepayers. The demand comes in the aftermath of Monday's Texas Senate Special Committee meeting on hurricane and tropical storm preparedness.

Patrick said Senate Bill 1075 and House Bill 1500 from the 88th Legislative Session allowed utility companies to lease small generators to get power to hospitals, cooling and warming centers during emergencies.

The Lieutenant Governor said some utilities, like Oncor, invested in mobile generators that have been deployed in other emergencies. He said that was the intent of the legislation, and faulted CenterPoint for taking a different approach.

“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," Patrick said in a statement issued Tuesday. "In fact, since CenterPoint pursued profit over effectiveness, they actually had to borrow small mobile generators from those companies for Hurricane Beryl," Patrick added.

Millions of Texans were without power for days after the storm hit the Texas coast.

“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," Patrick said.

Patrick said he planned to write a letter to the Public Utility Commission (PUC) "to revoke their decision to grant CenterPoint’s request for ratepayers to pay for that $800 million."

Additionally, Patrick said in the statement CenterPoint would need to pay the $800 million from its own profits.

Since the storm, lawmakers and experts have placed blame on CenterPoint for the extended outages, The Hill reported.

“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," Patrick said. "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."

CenterPoint CEO Jason Wells apologized to the PUC last week, saying he and his “entire leadership team will not make excuses. We will improve and act with a sense of urgency," according to The Hill.