Several major electric utilities in Texas, including CenterPoint Energy, are advocating for internal diversity, equity and inclusion (DEI) as crucial to their long-term success. This initiative coincides with the implementation of a new law, penned by Texas state Sen. Brandon Creighton, that prohibits state public colleges and universities from establishing DEI offices.
CenterPoint Energy is the sole investor-owned electric and gas utility headquartered in Texas. The company provides services to over seven million metered electric and natural gas customers in Texas and five other states. Its market capitalization stands at $17.6 billion, according to information available on the CenterPoint Energy website.
Exel Energy, another electric utility operating in Texas with a DEI program, is known for its power pole suspected of sparking a fire that ravaged over a million acres in Oklahoma and Texas. According to a corporate report on its DEI program, Exel Energy "added an incentive-based metric to the corporate scorecard in 2021, tying a portion of incentive pay to diversity, equity and inclusion." Furthermore, the company declared that it "successfully achieved our goal to train 100% of employees on unconscious bias and microinequities, and the training is now provided to new employees."
Two additional major electric utilities in Texas have also implemented DEI programs. Oncor serves customers in North Texas and stated it "continues to progress in our Diversity, Equity, and Inclusion (DEI) journey thanks to the shared commitment of our Chief Executive and executive officers, as well as Oncor’s Vice President of DEI and an 11-member officer-level DEI Steering Committee." The DEI initiative at American Electric Power (AEP) permeates throughout the company being "tied to enterprise, business unit and operating company annual incentive compensation objectives, which is measured through our annual employee culture survey." AEP caters to customers located in West and South Texas.
In January, a new Texas law was enacted that prevents state public colleges and universities from establishing or maintaining DEI offices or hiring or assigning officers, employees, or contractors to perform the duties of a DEI office. As reported by Texas Scorecard, Creighton, the author of the legislation, stated that the Texas Legislature passed the law due to concerns that taxpayers were funding these programs which detracted from higher education's "core mission of innovation and education." Creighton also expressed worries about whether Texas colleges and universities are complying with the law. "If they do not," he told Texas Scorecard, "the Texas Senate will be resolute in enforcement of this legislation, which includes provisions for university funding clawbacks, should there be violations."
Bill Peacock, policy director of the Energy Alliance, voiced his concerns to the Lone Star Standard about the potential distraction DEI initiatives at these companies might pose from their primary purpose: safely delivering affordable and reliable electricity to consumers throughout Texas. "Whether it is fires in the Texas panhandle or ongoing reliability problems stemming from renewable energy, it seems these companies are not completely focused on their core mission," said Peacock.
