West DFW News

Senator Phil King has issued a statement addressing recent reports regarding CenterPoint Energy's use of funds and resources intended for emergency power generation. King asserts that the company misled him, the Texas Legislature, and the public about its $200 million investment in mobile generators.

King explained that he supported CenterPoint's initiative based on assurances from senior executives that mobile generators would be deployed to improve public safety during emergencies. "I had seen how successful these mobile deployments were in my area of North Texas and was assured that CenterPoint had similarly deployed their units in its service area," King stated. However, he later discovered this was not the case.

The senator criticized CenterPoint for failing to adhere to the legislative intent behind a bill passed unanimously to enhance public safety and minimize power outages after storms or other emergencies. He expressed his frustration: "Had I known then that I had been deceived I would never have signed that letter."

King called for full accountability and transparency from CenterPoint regarding its generator leases. He urged the company to terminate its costly stationary generator leases, which proved ineffective during Hurricane Beryl, and absorb all associated costs instead of passing them on to customers.

He also highlighted serious allegations concerning how CenterPoint negotiated and secured leasing contracts, calling for an official investigation into these claims. "On my end, I intend to file legislation to ensure that the Legislature’s intent with regard to life-saving mobile generation is strictly followed," King added.

Reflecting on Winter Storm Uri in February 2021, which resulted in over 246 deaths due to extended power outages, King recalled asking utility executives what tools could have alleviated Texans' suffering. Their response was mobile generation units capable of providing temporary power to critical infrastructure during emergencies.

King noted that while utilities like Oncor successfully secured mobile generation units at a fraction of the cost, CenterPoint's lease expenses soared to $800 million—far exceeding the initially reported $200 million. During a Senate hearing, it was revealed that less than one percent of this amount was allocated for rapidly deployable mobile units.

"CenterPoint strongly deviated from legislative intent and made a very poor business decision in leasing these large stationary units," King said. He also pointed out deceptive tactics used by CenterPoint, such as producing documents showing images of mobile generators on wheels despite using stationary ones.

Concerns were raised about the bidding process for these leases, including allegations of an inappropriate relationship between a former CenterPoint executive and an executive at the leasing company. These allegations are under scrutiny.

King emphasized that any cost recovery must undergo a transparent process with public input before approval by the Public Utility Commission (PUC). Despite extensive documentation submitted during CenterPoint's cost recovery application process, he criticized both the Office of Public Utility Counsel for not intervening and the PUC for approving excessive expenditures without finalizing rules on mobile generation.

In an August 2 letter, Lt. Governor Dan Patrick urged the PUC to reconsider CenterPoint’s approved rate recovery and prevent ratepayer dollars from covering exorbitant lease costs—a request with which King fully concurs.