Texas Supreme Court to decide whether ERCOT can be sued for 2021 winter grid failure
AUSTIN (CBSDFW.COM) – The Texas Supreme Court heard arguments on two separate cases Monday involving whether ERCOT should be immune from lawsuits.
The two cases stem from the power grid failure during the February 2021 freeze.
The central question in both these lawsuits is can ERCOT be sued?
If the Texas Supreme Court decides ERCOT is not immune from lawsuits, it would open the door for additional lawsuits stemming from the 2021 winter freeze that caused an estimated $130 billion in damage.
Attorneys for ERCOT told the state Supreme Court ERCOT has sovereign immunity because it is a part of the state government and is under the control of the Texas Public Unity Commission.
However, attorneys representing San Antonio's public utility along with a private energy company, in separate cases, both told the state's highest court just because ERCOT is regulated by the Texas PUC does not necessarily make it a government entity.
"Being heavily regulated and serving a public purpose does not confirm government entity status on a private entity," CPS Energy attorney Harriet O'Neill said while pointing out ERCOT was not created by the government and does not receive state funding.
Meanwhile, ERCOT attorney Wallace Jefferson argued ERCOT is protected by sovereign immunity since it has no autonomy from the state and its bylaws are controlled by the state.
In the first case heard by the Texas Supreme Court, San Antonio-owned CPS Energy is trying to sue ERCOT over energy prices during the 2021 winter storm. In the other case, Panda Energy Company is trying to sue ERCOT after the energy company built power plants based on ERCOT's power projections that were later revised to show an overcapacity.
