AUSTIN (Nexstar) — Preceding the controversy embroiling CenterPoint Energy as Houstonians endure prolonged power outages, the state’s largest city’s energy monopoly has a long history of high-dollar donations to Texas lawmakers.
According to campaign finance records from the Texas Ethics Commission, CenterPoint Energy and its political arms have donated about $1.4 million to state legislators since the beginning of 2022 — the vast majority to Republicans and groups that elect Republicans.
Of that $1.4 million, $95,500 went to Democratic legislators. Nearly all of the rest went to Republicans, including $500,000 to the Associated Republicans of Texas Campaign Fund, $250,000 to Project Red, $8,800 to Texans for Dan Patrick, $5,000 to House Speaker Dade Phelan, and $4,553 to Texans for Greg Abbott.
CenterPoint CEO Jason Wells has personally made more than $69,000 in political contributions since the beginning of 2022, including $21,000 to Texans for Greg Abbott and $2,500 to Speaker Dade Phelan.
The donations have not helped CenterPoint avoid intense scrutiny from Gov. Greg Abbott and Lt. Gov. Patrick. State leaders have excoriated the company over the last week for a storm response they have described as “unacceptable.”
Abbott has threatened executive orders, financial penalties, and regulatory changes for CenterPoint, accusing the company of putting lives at risk and potentially cutting corners in their storm preparation. Patrick has promised legislative investigations into their response in the Texas Senate.
Ethics watchdogs said, because CenterPoint is not competing for customers’ business, they have an outsized incentive to influence lawmakers and regulators, whose decisions impact their profits and revenue recovery.
“Its only real competition is government regulation and the cost recovery that it’s allowed by the Public Utility Commission, and ultimately, our lawmakers,” Public Citizen’s Adrian Shelley said. “Because of what it is — a for-profit company operating as a monopoly utility in one area — it’s got an unusual incentive to influence political decision making in Houston and in Texas. And so that’s why I think we see some pretty substantial donations over the recent years.”
The Public Utility Commission also announced an investigation into CenterPoint, and legislators have alluded to statewide policy change coming next session. With both parties accepting donations from CenterPoint and other energy interests, Shelley and his organization project skepticism.
“It’s right to look for accountability for CenterPoint right now, but it’s also right to follow the money and ask the question, ‘Why was there not already oversight in place that prevented CenterPoint from falling so far behind?,'” Shelly said. “Ultimately, we’re not making it a priority. And I think you have to see the donations that are made to our leadership as a piece with that decision.”