AUSTIN, Texas (AP) – The Texas attorney general on Monday launched an investigation into fraud and waste at a Houston power utility in the wake of Hurricane Beryl, adding to mounting scrutiny after widespread power outages left millions without power for days.
The latest investigation into CenterPoint Energy comes after state regulators and Republican Gov. Greg Abbott have also demanded answers about storm preparations and the response to Beryl, a Category 1 hurricane that knocked out power to nearly 3 million people in the nation’s fourth-largest city.
The storm was blamed for at least three dozen deaths, including those of some residents in homes left without air conditioning in the heat after the storm.
“My office is aware of the allegations regarding CenterPoint and how its operations impacted preparedness during Hurricane Beryl,” state Republican Attorney General Ken Paxton said in a statement. “If the investigation reveals illegal activity, it will be dealt with with the full force of the law.”
The electricity company promised its support in the investigation.
“We look forward to working with the Texas Attorney General or any other agency and have made clear our commitment to upholding our company’s values,” CenterPoint spokesman John Sousa said.
Paxton did not mention any specific allegations of waste or fraud in his announcement, and his office did not respond to requests for comment.
Abbott has demanded answers from CenterPoint about what he called its slow recovery efforts and poor communication with customers in the days leading up to the storm. The state’s Public Utilities Commission has launched its own investigation, and lawmakers grilled the company’s top management about its failures during a hearing last month.
CenterPoint has largely defended its storm preparedness, saying it has sent thousands of additional workers to help restore power. The provider has also begun a months-long plan to replace hundreds of wooden poles and double down on tree trimming after the governor called for swift action.
Beryl damaged power lines and downed trees when it made landfall in Texas on July 8. It is the latest natural disaster to hit Houston since a powerful storm in May left nearly a million people without power.
Many residents fear chronic blackouts have become the norm after Texas’ power grid went down amid a deadly winter storm in 2021.
CenterPoint has previously faced questions about the reliability of Houston’s power grid.
In 2008, Hurricane Ike, a Category 2 storm, knocked out power to more than 2 million people, and it took 19 days to fully restore power. The city of Houston created a task force initiative to study the company’s response and decided it needed to automate parts of its network to minimize outages.
CenterPoint received millions of dollars in federal funding to implement this technology years ago. However, according to Executive Vice President Jason Ryan, it is still a work in progress.
Some utility industry experts and critics say the company has not adapted its technology quickly enough to meet Texas’ extreme weather conditions.
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Lathan is a member of The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places reporters in local newsrooms to report on classified issues.
