HOUSTON, Texas (June 17, 2025) — CenterPoint Energy and a coalition of Houston-area cities have reached a landmark $3.2 billion agreement aimed at fortifying the region’s power grid against extreme weather and future outages. The deal, announced Tuesday, comes in the wake of growing concerns about the grid’s reliability following major storm events.
The proposed plan, which still requires approval from the Texas Public Utility Commission (PUCT), focuses on targeted resiliency investments between 2026 and 2028. The initiative is expected to reduce outage durations and impacts for CenterPoint’s 2.8 million customers.
Strengthening the Grid
The agreement calls for:
- The installation of 130,000 stronger utility poles, representing about 10% of CenterPoint’s total poles.
- Expanding underground power lines from roughly 46% of the network to 50%, helping reduce exposure to wind and falling trees.
- Accelerating vegetation management, with tree-trimming cycles shortened from five years to three years.
Company officials say these measures could prevent nearly 1 billion minutes of customer outages by 2029 and will help limit the size of areas affected by service disruptions.
Ratepayer Impact
To fund the project, CenterPoint estimates an average residential customer will see a $1.40 per month increase on their bill each year from 2026 through 2028, followed by an additional 60 cents per month in 2030. The company will earn a 9.65% return on most of the resiliency-related investments.
Importantly, the final plan drops about $2 billion in transmission-only projects that were part of earlier proposals, following feedback from city officials and regulators who urged a sharper focus on resilience.
A Response to Past Failures
CenterPoint’s grid performance came under scrutiny after Hurricane Beryl in 2024, which left 2.2 million customers without power. The company initially proposed a $2.7 billion upgrade package, later revising it to $5.75 billion before settling on the more focused $3.2 billion deal.
“We heard the concerns of our customers and city leaders,” a CenterPoint spokesperson said. “This plan represents a balanced, cost-effective approach to making our infrastructure stronger and more reliable.”
Next Steps
The PUCT will review and vote on the settlement in the coming months. If approved, work could begin in early 2026, with major components completed by 2028.
In addition to the resiliency package, CenterPoint is also expanding its investment in battery energy storage, including a 160-megawatt/320-megawatt-hour facility slated for completion this summer. These efforts are part of a broader strategy to modernize and secure Houston’s energy infrastructure amid rising demand and climate challenges.