Proposed settlement in CenterPoint Energy’s rate case reduces customer contributions to American Gas Association membership dues in half
On November 25, 2024, parties to CenterPoint Energy’s gas rate case filed a settlement agreement with the Minnesota Public Utilities Commission (the Commission). Under the agreement, customers would be expected to partially reimburse CenterPoint for the membership dues it pays to the American Gas Association (AGA), a group that has spent decades propping up the natural gas industry in order to maintain the status quo. However, that reimbursement amount would be half of what CenterPoint initially sought to pass through to customers in its rate case filing. Membership dues to other “pro-gas” trade associations like the Minnesota Blue Flame Gas Association would be completely removed from customers’ bills under the agreement. The settlement agreement must be approved by the Commission before it becomes effective.
The AGA recently worked to gut clean energy building code rules and has engaged in decades of deception using Big Tobacco tactics to misinform the public on the health harms of gas stoves. Dozens of CenterPoint customers and several experts urged the Commission to stop charging customers for AGA membership dues, noting the AGA’s priorities and lobbying efforts contradict Minnesota’s goal of reaching net-zero greenhouse gas emissions by 2050.
“This settlement is a partial win for CenterPoint customers, who will now pay less to reimburse CenterPoint Energy membership in a lobbying organization that doesn’t support the transition to cleaner, safer, and more affordable energy,” said Carolina Ortiz, Associate Executive Director at COPAL, and a leader of the Clean Heat Minnesota coalition. “CenterPoint customers should not be forced to use their hard-earned dollars to pay lobbyists and organizations that contradict our state’s values and goals. We thank everyone who took the time to submit a comment, and all Minnesota residents who are working together to swiftly and equitably transition Minnesota away from natural gas and toward clean, healthy energy sources that benefit all Minnesotans.”
Earlier this year, Xcel similarly tried to raise rates for its gas customers, in part to pay membership dues to trade associations. After an outcry of opposition from Minnesota residents, Xcel agreed to not charge its customers for AGA dues. Although CenterPoint’s agreement does not fully remove all AGA dues, it is a step in the right direction.
Minnesota is moving away from climate change-causing fossil fuels to improve health and reach our climate goals. Everyone in Minnesota needs to be part of an equitable transition to clean, Midwest-made energy to heat our homes and buildings. Under the proposed settlement, residential customer rates will increase substantially less than CenterPoint initially requested. The final residential rate increase would be 5.2%, which is slightly less than customers are paying now under an “interim rate adjustment” that’s currently on bills.
“Utility companies have a pivotal role to play in ensuring that Minnesota’s shift from gas to clean energy is safe and affordable. We all deserve reliable energy with consistent prices that we can afford, and we look forward to working with Minnesota’s utility companies to make that future a reality,” said Margaret Cherne-Hendrick, PhD, Senior Lead, Innovation and Impact at Fresh Energy and a leader of the Clean Heat Minnesota coalition.
The Clean Heat Minnesota coalition, of which Fresh Energy is a member, will continue to advocate for safe, affordable energy that eliminates indoor air pollution at the Public Utilities Commission—especially as home heating season is underway. Now is the time for urgent action as the world is moving away from climate change-causing fossil fuels and questioning the wisdom of bringing natural gas into our homes and workplaces. The Commission has several upcoming regulatory dockets, including the Future of Gas docket, which we hope will provide additional opportunities for immediate and substantial policy changes to accelerate a just and equitable transition away from natural gas.
About Clean Heat Minnesota: Clean Heat Minnesota is a multi-racial, statewide coalition of more than 30 partners representing Minnesotans who want clean, affordable energy to power heating, cooking, and appliances. Learn more at cleanheatmn.org.
