Energy costs in Houston have risen significantly, and will cost the city $131 million this fiscal year, according to the controller’s office.
The increase is an approximately 40% increase from the previous fiscal year.
The change is due to multiple factors including a 2021 storm that tore through the Houston area, according to the controller’s office.
“So, as a result of Winter Storm Uri, the state of Texas passed policies and reforms to help stabilize the grid and as a result of that, those costs have to be passed down to the customers,” City of Houston Deputy Controller Will Jones said.
The city has an existing contract with Reliant Energy, according to City staff and Reliant Energy.
The price increase isn’t specific to Reliant Energy but a structural change by energy companies after recent storms, according to Jones.
“We are proud to partner with the City of Houston and remain committed to providing it with reliable, affordable electricity. We actively engage with our customers on rates, contracts, and usage to ensure they are getting the best possible energy solutions for their individual needs. We look forward to continuing to partner with the city,” a Reliant Energy spokesperson said in a statement to ABC13.
The initial phase of the five-year contract has ended, and their renewal options carry into fiscal year 2027, according to Jones.
The city’s controller’s office says it is closely monitoring the City’s exposure and will continue to provide data-driven analysis that supports long-term planning.