Texas launches new investigation into Houston's power utility following deadly outages after Beryl

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Texas' attorney general launched an investigation Monday into Houston's electric utility over allegations of fraud and waste following Hurricane Beryl, adding to the mounting scrutiny after widespread power outages left millions without electricity for days.

The latest investigation of CenterPoint Energy comes after state regulators and Republican Gov. Greg Abbott have also demanded answers about storm preparations and the response to Beryl, a Category 1 hurricane that knocked out power to nearly 3 million people around the nation’s fourth-largest city.

The storm was blamed for at least three dozen deaths, including those of some residents who died in homes that were left without air conditioning in sweltering heat after the storm's passage.

“My office is aware of concerning allegations regarding CenterPoint and how its conduct affected readiness during Hurricane Beryl,” Ken Paxton, the state's Republican attorney general, said in a statement. “If the investigation uncovers unlawful activity, that activity will be met with the full force of the law.”

The utility pledged its support of the investigation.

“We look forward to cooperating with the Texas Attorney General or any other agency and have made clear our commitment to upholding the values of our company,” CenterPoint spokesperson John Sousa said.

Paxton did not cite any specific allegations of waste or fraud in his announcement and his office did not respond to requests for comment.

Abbott has demanded answers from CenterPoint for what he called its slow restoration efforts and poor communication with customers in the days leading up to the storm. The state's Public Utility Commission has launched its own investigation, and lawmakers grilled the company’s top executive over its failures at a hearing last month.

CenterPoint has largely defended its storm preparedness and said that it deployed thousands of additional workers to help restore power. The utility provider has also begun a monthslong plan to replace hundreds of wooden utility poles and double its tree-trimming efforts after the governor pressed for swift action.

Beryl damaged power lines and uprooted trees when it made its Texas landfall on July 8. It’s the latest natural disaster to hit Houston after a powerful storm ripped through the area in May, leaving nearly 1 million people without power.

Many residents fear that chronic outages have become the norm after Texas’ power grid failed amid a deadly winter storm in 2021.

CenterPoint has previously faced questions over the reliability of Houston's power grid.

In 2008, Hurricane Ike, a Category 2 storm, knocked out power to more than 2 people million and it took 19 days to fully restore electricity. The city of Houston created a task force initiative to investigate the company's response and determined it needed to automate parts of its grid to minimize outages.

CenterPoint received millions of dollars in federal funding to implement this technology years ago. However, according to executive vice president Jason Ryan, it's still a work in progress.

Some utility experts and critics say the company hasn’t adapted its technology fast enough to meet the extreme weather conditions Texas will continue to face.

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Texas awards $73M for Houston-area grid resilience project

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Texas Gov. Gregg Abbott announced millions in funding for energy resilience projects around this state this week, with one major project set to impact the greater Houston area.

As part of the Texas Energy Fund's Outside of ERCOT Grant Program, the state announced a roughly $73 million agreement with the Sam Houston Electric Cooperative to replace and upgrade more than 9,000 electric poles and improve other equipment in Montgomery, Liberty and Hardin counties. The agreement is the first for the fund's Outside of ERCOT Grant Program, which supports state projects outside of the state's largest grid.

The multibillion-dollar Texas Energy Fund aims to "finance the construction, maintenance, and modernization of electric facilities across Texas." It was approved by voters in 2023. Other programs within the fund include the:

In-ERCOT Generation Loan Program
Completion Bonus Grant Program
Texas Backup Power Package Program

“The Texas Energy Fund delivers real results for Texans and strengthens the electric systems that families, businesses, and communities depend on,” Abbott said in a news release. “This grant to Sam Houston Electric Cooperative will replace thousands of vulnerable utility poles to better withstand severe weather and ensure a more reliable and resilient grid in East Texas.”

The Houston-area project, nicknamed Steel Anchor, is expected to be completed by June 2031. According to the release from the governor's office, the Sam Houston Electric Cooperative’s territory is one of the most hurricane-prone service areas in the state. The cooperative serves more than 38,000 Texas consumers

“Over the past decade, Sam Houston EC has strategically replaced poles to improve the strength of its electricity distribution system. This grant will boost the Cooperative’s ongoing grid-hardening and resiliency program,” Doug Turk, CEO of the Sam Houston Electric Cooperative, added in the release.

Following the announcement of the Sam Houston funding, Abbott's office also awarded another $200 million from the Outside of ERCOT Grant Program to upgrade approximately 700 miles of power equipment in Northeast Texas. The equipment is operated by Southwestern Electric Power Company, which serves more than 192,000 Texas consumers. The project will include improvements to 200 circuits, replacing aging copper wire with aluminum alloy conductors and replacing existing utility poles.

Additionally, the state announced its seventh Texas Energy Fund loan agreement for a 570 megawatt natural gas power plant in Sherman, Texas. The 20-year loan of up to $411 million is between the Public Utility Commission of Texas and Rayburn Electric Cooperative and is part of the fund's In-ERCOT Generation Loan Program. Rayburn will build the facility near its existing Rayburn Energy Station 1 in the Texoma region. It will connect to the ERCOT North Load Zone.

“When Texas voters overwhelmingly approved the Texas Energy Fund, they gave us a mandate to secure new, reliable power generation for Texas,” PUCT Chairman Thomas Gleeson added in a release. “The TxEF is delivering on that promise, and Rayburn Electric Cooperative’s new 570 MW power plant is proof. We are ensuring Texas families and businesses have power they can depend on for years to come.”

Solar manufacturer announces massive new facility in Houston area

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SEG Solar has announced plans to open a new 1.15 million-square-foot solar module facility in Tomball—its third in the Houston area.

The news comes just weeks after the Houston-based solar manufacturer announced its second facility, which will be located in Cypress. It’s expected to open in August.

The latest 4.6-gigawatt facility in Tomball will include an assembly factory and a warehouse. Construction is slated to wrap in March 2027, with commercial panel production planned to begin in May 2027. Once completed, the facility will bring SEG’s annual U.S. module manufacturing capacity to 10.6 gigawatts, according to a news release from the company, one of the largest totals in the country.

The facility will produce heterojunction technology (HJT) modules, which the company says will add to the number of n-type solar panels made in the U.S. HJT modules are known to be more durable and are well suited for hotter climates.

“Designed to support next-generation HJT technology and FEOC-compliant production, the facility ensures reliable, high-efficiency solar solutions,” Raymond Bailey, sales manager at SEG Solar, said in a LinkedIn post. “ Alongside upstream integration in Indonesia and potential U.S. cell manufacturing, we are strengthening supply chain resilience amid evolving trade policies.”

SEG opened its $60 million, 250,000-square-foot facility in Houston in 2024 to house its production workshops, raw material warehouses, administrative offices, finished goods warehouses, and supporting infrastructure. The continued expansion is part of SEG’s long-term goal of becoming one of the largest 100 percent U.S.-owned module manufacturers.

Houston chemical co. completes successful field trial of cleaner natural gas processing tech

successful trial

Houston-based Merichem Technologies has announced successful results from the field trial of its new hydrogen sulfide (H2S) removal technology in the Permian Basin.

The technology, known as ECOTREAT, removed more than 99 percent of hydrogen sulfide gas from natural gas streams, or “sour gas,” without producing solid waste during the month-long trial. It also showed sustained performance even when operating above the unit’s design capacity, according to a news release.

“The industry is continually seeking to reduce both the price and complexity of removing hydrogen sulfide from gas production, especially since oil production has shifted to increasingly sour sources, higher gas ratios, and higher water ratios,” Jeff Gomach, SVP, Merichem Technologies, said in a news release. “ECOTREAT met all its field trial objectives and provides a highly effective method for removing hydrogen sulfide to prevent equipment corrosion, ensure worker safety, meet environmental regulations, and maintain product quality for transport.

H2S found in natural gas can turn the gas toxic or hazardous and lead to corrosion in pipelines and processing equipment. However, standard H2S removal technologies create high levels of solid waste. ECOTREAT resolves many of those issues by using an aqueous-phase proprietary catalytic process that converts H2S into dissolved thiosulfate.

Next, Merichem says it plans to move the technology out of the pilot stage to full-scale commercialization.

Merichem, an 80-plus-year-old company, initially launched as a soap and industrial cleaning company. It eventually transitioned to focus on energy technology.

In 2024, Black Bay Energy acquired a portion of Merichem Process Technologies and Merichem Catalyst Products, which would become Merichem Technologies.

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