P.S. 2018. I see Centerpoint did not learn a lesson, they are trying to keep the Trump tax cut, which is twice the profit as the Reagan cut. I think the Houston Chronicle has them in their sights, though.
HOW I WAS SANTA CLAUS FOR THE CITY OF HOUSTON
I once got an extra $200 bill from Houston Lighting and Power (now Centerpoint), for meter-tampering. Now, this was a ridiculous assertion because I didn’t know jack about electricity, but HL&P demanded their $200. It was that or get cut off, so in the end I had to pay.
Revenge came pretty quickly.
Two years before, the Reagan tax cuts had dropped the corporate tax rate from 48% to 34%. At the time I was working for another utility company and the regulatory body there required the company to pass the tax reduction through to the customers. Well, I thought, it’s been two years, where was the tax refund from HL&P?
Some motivated research and accounting work showed me that HL&P was charging its customers 100 million dollars a year for federal taxes that they were no longer paying. I called an editor at the Houston Post (now defunct) who had previously published an article of mine and gave him the situation and the numbers. A week later our lead Post editorial savaged HL&P for ripping off its customers. It demanded a refund and a forward-looking rate reduction. I made sure the Houston council and the state agencies got copies. After a follow-up newspaper article and likely pressure from every corner, HL&P succumbed. They credited their customer’s bills for part of the overcharges. They had to give the rest over the upcoming year because they did not have enough money!
Personally I ended up with about a $200 refund, plus, of course, the going-forward rate reduction of about $100 per year, so I considered me and HL&P even. However, the collateral damage to the company was that a million other customers got the same thing. Ouch. I don’t remember the year exactly but the cash came in around December. So I liked to think that for Houston, the whole Christmas of 1988 was on me!
Merry Christmas Houston,