Texas Supreme Court says ERCOT can't be sued over 2021 winter storm
TEXAS (CBSNewsTexas.com) – After the 2021 deadly winter storm, multiple cities, including Denton, sued ERCOT.
Now, the Texas Supreme Court has ruled ERCOT can't be sued over the storm because of sovereign immunity. It largely shields government agencies from civil lawsuits.
After power and electric companies filed suits against ERCOT, the Texas Supreme Court had to decide if ERCOT is a governmental unit that gets sovereign immunity.
"That 5-4 decision which was very close, 4 of the dissenters determined that they were not entitled to sovereign immunity because of the fact that they were a privately created entity and that the legislature did not specifically say hey look you can sue them if x, y, z," attorney Eric Cedillo said.
However, since ERCOT operates under the control and oversight of the Public Utility Commission, performs the governmental function of utilities regulation and has the power to adopt and enforce rules in accordance to that role, the Texas Supreme Court ultimately ruled ERCOT is immune from suit.
"The majority of the Supreme Court determined that there was enough control to suggest that PUC was basically acting out as the function," Cedillo said. "They were overseeing what ERCOT was doing to the extent that they exercised that type of oversight."
Cedillo says sovereign immunity will extend in a lot ways. This decision will now preclude a lot of the cases that may come about.
ERCOT has released a statement on the decision saying they're pleased.
Also, writing "The Court's careful consideration of these significant legal issues allows us to continue to focus on our core State responsibilities on ensuring a reliable grid for Texans.
