A year after it battered Southeast Texas, Hurricane Ike was back in the news as the Public Utilities Commission of Texas (PUCT) authorized Centerpoint Energy Company to recover $643 million for costs related to power restoration in the wake of the September 2008 storm.

Centerpoint is utilizing new legislation passed by the state legislature to issue low-cost securitization bonds. In November, the utility closed on the sale of $664.8 million in storm recovery bonds that carry interest rates averaging 3.72% as opposed to the standard rate of 11.075%. In addition to the approved $643 million, the bond offering also includes carrying costs and certain bond issuance costs.

Centerpoint officials estimate that the low-cost storm recovery bonds will save customers about $417 million over the next 13 years.

Texas New Mexico Power reached an agreement earlier in 2009 on its case to recover $4.8 million annually over the next five years for cost related to Hurricane Ike recovery efforts. This translates into a per kWh charge ranging from $0.00229 to $0.24357 depending upon the service class as listed in the rates filed by the distribution company with the PUCT.