Texas Supreme Court Ends Winter Storm Uri Lawsuits
Five years after Winter Storm Uri resulted in the deaths of more than 200 people in the state of Texas, the Texas Supreme Court has brought an end to lawsuits filed against power generators.
Court Ends Appeals, Sides With Power Companies
As reported by the Texas Tribune, the court offered no details of why it ended the five separate appeals handing a major win for such power companies as CenterPoint Energy and NRG Texas Power.
The utilities claimed they were not responsible for the power outages that led to the deaths of at least 240 people during the freeze, and some estimates placed the damages at more than $300 billion.
Thousands attempted since the 2021 blizzard to recover damages to their businesses or from the deaths of family members.
Ruling Upholds Lower Court Decision
The Tribune reported that four of the state’s nine Supreme Court justices did not take part in the ruling according to the court’s website.
The ruling upheld the state’s First Court of Appeals which originally determined the case had “no basis in law or fact.”
ERCOT Sovereign Immunity Previously Upheld
The decision was not the first for the Texas Supreme Court concerning attempts to recover damages from the deadly storm that raked Oklahoma as well.
Three years ago, the Court determined that ERCOT (Electric Reliability Council of Texas) could not be sued because of sovereign immunity.
The immunity claim protected government agencies from civil lawsuits and the Court determined ERCOT “provides an essential governmental service.”
It was a 5-4 ruling in which the Supreme Court reversed an earlier judgment from a Dallas state appeals court.
The justices threw out lawsuits that had been filed by San Antonio’s municipal electric utility and a private energy developer reported the Dallas Morning News.
ERCOT Role and Market Impact
The Electric Reliability Council of Texas runs the country’s sole power grid contained wholly within a single state.
It encompasses roughly 75% of the state and maintains a grid providing electricity to 90% of Texas’ population.
It is a government created nonprofit corporation that is regulated by the Public Utility Commission.
“—it prevents the disruption of key governmental services, protects public funds, and respects separation of powers principles,” Chief Justice Nathan L. Hecht wrote for the majority.
Lawsuits Alleged Pricing Failures
The lawsuits alleged ERCOT mishandled the power pricing during the storm and led to San Antonio’s municipal electric utility CPS Energy being short-changed $18 million.
In the same ruling, the supreme court dismissed a lawsuit filed by Panda Power Funds of Dallas.
The company claimed it lost billions of dollars after making investments based on demand projections issued by ERCOT.