The City of Houston will tap reserves to pay about $319,000 in additional electricity costs from January’s winter storm, sparing customers from higher bills, Mayor Sam Kelley said.
The decision, approved by the city’s utility committee, will leave roughly $3 million in reserves after the payment.
“Although we prefer not to raise utility rates, the recent increase makes cost-avoidance measures like this possible,” said Kelley.
The city council approved a 3% electric rate increase last year, effective in 2026.
The move contrasts with a similar February 2021 winter storm, when the city incurred about $725,000 in added expenses and passed half the cost on to customers.
January’s storm brought about 10 inches of snow and widespread closures, including a full week of canceled school. City officials sent text alerts ahead of the storm urging customers to curb electricity usage.