Houston Says 'Nay' to Electrical Rate Hike

HOUSTON - Mayor Annise Parker announced the City of Houston is rejecting a proposed electrical rate increase.

Centerpoint Energy filed a request to change its rates for Houston customers, according to a City of Houston statement.

The proposed changes would not only affect Houston home owners, but also the government.

Centerpoint requested a $7 million increase in rates for streetlights, according to the statement.

If the rates for Houston residents went unchallenged, Centerpoint would be able to bring in revenues around $50.6 million.

Including the rate increases, Centerpoint also requested a streamlined ratemaking mechanism, known as a Distribution Cost Recovery Factor.

According to the city statement, this would make it easier for the company to raise rates with minimal oversight or regulation.