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Paxton Probes CenterPoint 'Fraud'

Texas Attorney General Paxton threatens to bring the 'full force of the law' against any unlawful activity discovered in an ongoing investigation.

Published August 12, 2024 at 4:01pm by John C. Moritz


Texas AG Probes CenterPoint's Hurricane Response, Cites 'Concerning Allegations'

Texas Attorney General Ken Paxton on Monday announced an investigation into CenterPoint Energy's response to Hurricane Beryl, which caused widespread power outages in the Houston area. Paxton cited "concerning allegations" of fraud, waste, and improper use of taxpayer funds, saying that any unlawful activity "will be met with the full force of the law."

"My office is aware of concerning allegations regarding CenterPoint and how its conduct affected readiness during Hurricane Beryl, a storm that left millions of Texans without power." – Texas Attorney General Ken Paxton

The investigation comes amid intense scrutiny of CenterPoint, which serves about 7 million customers across the Gulf and Upper Midwest. The company has faced backlash for the slow restoration of power to 2.2 million customers in Houston after the Category 1 storm. During a state Senate hearing, CEO Jason Wells apologized and vowed to improve. Wells also faced calls to resign, but argued that doing so would "cause the company to lose momentum."

In the wake of the storm, Houston faced a prolonged outage. One week later, with 300,000 CenterPoint customers still without power, Gov. Greg Abbott [gave the company a deadline](https://www.gov.texas.gov/news/post/governor-abbott-statement-centerpoint-ener reticence-hurricane-beryl-response) of July 31 to submit a plan to minimize future outages. Abbott's office later called CenterPoint's response ["inadequate."](https://gov.texas.gov/uploads/files/press/2023/08/Statement_from_Governor_Abbott_on_CenterPoint%27s_Hurri cane_Beryl_Response_FINAL_d64a4bcb70.pdf)

"Governor Abbott reiterated the importance of fulfilling all of his original directives and the necessity of completing their restoration projects, such as vegetation removal and pole replacement, before the next tropical storm hits their region." – Statement from Gov. Greg Abbott's Office

Paxton's investigation adds to the pressure on CenterPoint, with the scope and timeline yet to be disclosed. State Sen. Paul Bettencourt, a Houston Republican, welcomed the probe, citing concerns over the company's use of taxpayer funds.


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Read more: Citing allegations of 'fraud, waste,' AG Ken Paxton launches CenterPoint investigation