Officials with CenterPoint Energy Offer a Public Apology

On Thursday, July 25, 2024, after officials in Houston, Texas, reported the deaths of 36 people so far because of trauma related to exposure to high temperatures during a power outage that began on July 8th, CenterPoint Energy officials issued a formal public apology for their electrical grid and customer communication problems during a formal Texas Public Utility Commission hearing in Austin. The electricity provider's president and CEO, Jason Wells, promised to "do better" in the future. 

With increasing climate- and weather-related catastrophes in recent years, Texas has become well known for its power outages and related upheaval and loss of life. Hurricane Beryl has shone a spotlight on the recurring problems the state has with its electrical infrastructure and utility mismanagement.

Background: A Hurricane and a Lasting Power Outage

On Monday, July 8, Category 1 hurricane Beryl made landfall across the Texas coast and southeast portion of the state. Shortly after its heavy rains and high winds hit the region, businesses and homes suffered severe damage. Additionally, one energy supplier, CenterPoint Energy, experienced a massive outage. Estimates vary, but officials believe between 2.2 and 3 million residents and visitors lost electricity. The impact was greatest in Houston, or H-Town, Texas' most populous city.

CenterPoint's technicians worked around the clock between July 8 and 10. Their efforts restored power to approximately 1 million people. Yet, it took another 10 days, until Saturday, July 20, for the company to complete power restoration for the remaining millions. 

During that period, Houston experienced continued heat waves from natural summer conditions and climate change. People without air conditioning faced the risk of heat exhaustion and strokes. People with health conditions and disabilities had to find alternative methods to refrigerate food and medicine and maintain adjustable beds, oxygen and other forms of medical equipment that require electricity.

Of the 14 deaths in Houston alone, officials with the Harris County Institute of Forensic Sciences have linked the deaths of seven people above the age of 50 to exposure to heat and subsequent hyperthermia, or above-normal body temperature, directly related to the lack of power. In the overall Houston area, officials believe that at least twelve people likely died from heat exposure caused by the loss of power after the hurricane. Nearby counties that experienced power losses reported similar deaths.

How Has CenterPoint Responded During This Crisis?

CenterPoint responded immediately with technicians on the ground. That said, as the blackout continued past the first 48 hours, it failed to pass the customer service communication test. The company refused to provide timely updates. It even gave inaccurate details about projected estimated time frames for restorations and other matters. On July 14, Dan Patrick, the lieutenant governor, held a press conference and warned companies that their jobs were "on the line" because of the mismanagement of the situation.

Eventually, Greg Abbott, the governor of Texas, prompted the state's Public Utility Commission to investigate. The PUC has until December 1 to report its findings. In the meantime, hearings have begun with confrontations between legislators and representatives of CenterPoint and other companies. The state's senate also has plans to hold separate reviews.

On Thursday, Wells emphasized the "frustration" and "difficulties" imposed upon customers. He stated that he and his leadership team wouldn't make excuses but instead improve and act with a greater sense of urgency going forward. He noted that policies prevent the company from currently having better customer contact details and admitted that CenterPoint is unable to directly contact 58% of its customers because of missing contact information. 

He also outlined a series of initiatives for improvement. He plans to increase the number of call center agents by at least 165% to decrease on-hold wait times. He also plans to invest in a new member of the leadership team to specifically deal with improving the company's handling of emergencies. CenterPoint Energy will provide daily briefings with the media after a storm-related outage, improve estimated restoration wait times, set up a cloud-based customer outage tracking system to replace a separate one that the company shut down in May after technical problems, and provide better phone, text and email alert notifications. He's also seeking an independent review of these changes and input from leading experts.

Randy Pryor, the incident commander during the Beryl outage, explained that they needed to "enhance the resiliency of the system to support faster restoration times." He also noted that thousands of technicians were on the ground restoring power from July 8 to 10. Wells explained that they also need to have more workers available to prevent line damage from vegetation, improve community partnerships, and make their power lines more durable and better capable of withstanding strong storm winds.