The Central Square –
CenterPoint Energy is facing several legal actions due to power outages in southeast Texas following Hurricane Beryl. Three new lawsuits have been brought against the company this week. It took 12 days to restore power to customers in the area affected by the hurricane.
The Governor, Greg Abbott, insisted that CenterPoint fulfill a set of demands before July 31st. An inquiry was initiated by both the Public Utility Commission and the Texas legislature. On Thursday, the PUC convened its inaugural public gathering to discuss the matter, while a legislative hearing is planned for next month.
During the PUC meeting on Wednesday, Jason Wells, the president and CEO of CenterPoint, expressed regret and offered an apology to their customers, acknowledging the inconvenience they had experienced. We are committed to improving.
Although we cannot eliminate the challenges and obstacles that many of our clients face, my leadership team and I will not offer justifications. We will enhance our efforts and proceed with a feeling of immediacy.
During a recent press briefing, Abbott mentioned the possibility of urging the PUC to deny CenterPoint’s request to recover a profit. The previous year, it made a profit exceeding $6.5 billion. Abbott mentioned accusations of CenterPoint being overly frugal and taking shortcuts that could have caused delays in power restoration.
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Vice Governor Dan Patrick, who established a unique investigative committee to supervise the Senate’s inquiry, cautioned CenterPoint that they should brace themselves for an impending force like a speeding locomotive. Make sure you are ready. Regardless of your position within the management hierarchy, whether you are at the helm or overseeing the response or preparation, everyone’s role should be at stake. This behavior is unacceptable and we refuse to allow it.
The Harris County Institute of Forensic Sciences reported that at least 14 deaths in the Houston area were linked to the hurricane, with seven individuals succumbing to “heat exposure caused by power outages.” According to the University of Texas Medical Branch in Galveston, a minimum of 22 individuals lost their lives due to Beryl in Harris, Galveston, and Montgomery counties.
During this week, three lawsuits were filed in Harris County claiming hundreds of millions of dollars in losses, as CenterPoint sought to recoup profits.
Houston’s formidable trial attorney Tony Buzbee, who has previously run for mayor and city council, filed a class-action lawsuit worth $100 million. Buzbee also represented Attorney General Ken Paxton during his impeachment trial. According to Eater, the first submission had 15 hospitality and restaurant organizations, but now it has grown to encompass more than 200 establishments in the Houston and Galveston regions.
According to the lawsuit, CenterPoint failed to properly maintain its lines and equipment, invest in infrastructure, prepare adequately for the hurricane, and carry out power restoration operations effectively. Furthermore, it echoes a comparable point put forth by Abbott and Patrick regarding Beryl being classified as a minor Category 1 hurricane, expressing concern about the potentially catastrophic consequences of CenterPoint’s incompetence in the event of a Category 5 hurricane hitting the Greater Houston region.
CenterPoint has faced criticism following the freeze in February 2021, during which millions of Texans were left without electricity, warmth, and water. Amidst the surge in bills and the challenges faced by customers in meeting them, it was said that the former CEO of CenterPoint received a salary of almost $40 million.
The law firm of Rose Sanders submitted a distinct collective lawsuit aiming to obtain $100 million in compensation, on behalf of various establishments such as beauty parlors, wellness centers, and medical practices. On its website, there is a link available for businesses impacted by Beryl who might qualify to participate as a plaintiff in the class action lawsuit.
The legal action presents comparable arguments to those of Buzbee: its customers as a group “contribute substantial amounts to CenterPoint annually for electricity” and if any of them do not settle their bills promptly, “CenterPoint will disconnect service and withhold electricity.”
However, when CenterPoint carelessly neglects to supply electricity, despite its commitment and legal duty to do so, it nonchalantly dismisses the situation, feigns ignorance, and attributes its shortcomings to weather conditions or other external factors, asserting it was unaware of the severity of the disruption or the extent of the damage it could cause.
According to Houston Public Media, a man from the Houston area has taken legal action after experiencing severe burns from a power line that fell on him due to a tree during a storm that occurred three days earlier on July 11th. The legal claim argues that CenterPoint failed to properly care for and examine its power lines, neglected to trim trees and plants surrounding them, and did not alert about hazardous situations.
