Texas to Probe Utility After Hurricane Blackouts

Texas Attorney General Ken Paxton announced Monday that he is launching an investigation of national utility CenterPoint Energy after post-Hurricane Beryl blackouts last month in Houston.

CenterPoint's coverage area includes the majority of the city of Houston, where nearly 3 million homes lost power and at least a dozen people died from heat-related causes during the outages after the storm.

"My office is aware of concerning allegations regarding CenterPoint and how its conduct affected readiness during Hurricane Beryl," Paxton said in a statement. "If the investigation uncovers unlawful activity, that activity will be met with the full force of the law."

The Hill reported that the Harris County attorney's office, in a rare move, announced its support for Paxton's probe. The attorney general's office and the Harris County attorney's office have reportedly frequently locked horns in the courtroom.

"These days it's hard for folks to agree on much, but everyone agrees that Houston residents were not well served during the Houston derecho and Hurricane Beryl," county attorney Christian Menafee told The Hill. "People have real concerns about CenterPoint's preparation before the storms, how long it took to get the power back on, and why CenterPoint didn't communicate better.

"I support the Attorney General's investigation, and my office is ready to help."

Paxton isn't the only Texas Republican in state leadership to call for an investigation into the utility. Since the storm, CenterPoint has come under scrutiny from Gov. Greg Abbott, Lt. Gov. Dan Patrick, and the state Public Utility Commission, with its CEO facing questioning from a select subcommittee of state senators last month.

During the hearing, GOP state Sen. Paul Bettencourt told subcommittee colleagues, "One company blew it."

The bulk of the senators' criticism was directed at CenterPoint's decision to purchase 15 mobile generators for $800 million. The purchase reportedly netted the company approximately $50 million in profit, but the generators proved to be too large and cumbersome to use during the storm.   

It was revealed during Bettencourt's questioning last month that CenterPoint selected a vendor for the generators that cost 40 to 60 times as much as the next competitor; Bettencourt then accused the utility of "fraud" and called for a shake-up in company leadership.

"Now, what would you say to the average person that you should resign?" Bettencourt asked CenterPoint CEO Jason Wells.

Wells sidestepped the question.

"What we have outlined here is an ambitious set of 40 actions to immediately improve resiliency, our communications, and our partnerships this hurricane season," he said. "I think if I resign today, we lose momentum on the things that are going to have the best possible impact for the greater Houston region."

• Heat-Related Texas Deaths Climb After Hurricane Beryl
• Pressure on Houston Power Company After Beryl Blackouts