CenterPoint Energy is stepping up in the aftermath of Hurricane Beryl, which devastated Texas in July, leaving over 2.2 million residents without power. The company has proposed to waive around $110 million in profits following widespread backlash regarding their storm response.
The Houston Chronicle reports that CEO Jason Wells communicated this offer in a letter to state Senator Charles Schwertner and Representative Todd Hunter, both of whom are investigating utility responses to the hurricane.
This profit forfeiture accounts for a significant portion of earnings from generators that CenterPoint hired for $800 million, which were mostly unused during the outages. Hurricane Beryl, making landfall on July 8, brought winds up to 80 mph and tragically claimed 26 lives in the Greater Houston area.
Of the 2.2 million power outages recorded on July 11, 1.1 million affected customers were CenterPoint Energy clients, per PowerOutage.us data. In a bid to improve future resilience, Wells announced plans for a $5 billion investment on infrastructure enhancements between 2026 and 2028, aiming to create “the most resilient coastal grid in the country.”
In his communication to lawmakers, Wells emphasized that the proposed profit waiver would “help address this issue,” reflecting the company’s commitment to their customers and the community.
Senator Schwertner responded positively but added that more effort is needed. He remarked, “I appreciate CenterPoint’s movement in becoming a better partner to their ratepayers and to Texas. However, they have yet to hit that mark.”
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During a Senate hearing in July, Wells apologized for the company’s inadequate handling of the hurricane response, admitting the organization has since made 40 improvements. He stated his intention to continue leading the company through its recovery efforts.
Houston Mayor John Whitmire was notably critical at the hearing, emphasizing the need for accountability: “Their communication sucks. Enough is enough. CenterPoint needs to improve their preparation, operations, and recovery.” He also expressed his frustration with the company’s returns compared to its response to customer needs.
CenterPoint Energy is primarily involved in electric transmission and distribution, along with natural gas distribution and sales. It has faced scrutiny over its operational performance, particularly in severe weather events.
Wells also offered condolences to those affected by Hurricane Beryl’s devastating impacts, acknowledging that the company’s response, including communication, did not reflect the standards they strive for.