Texas utility files for bankruptcy after $2.1 billion power bill

The biggest electrical energy co-operative in Texas has filed for chapter safety after it obtained a $2.1 billion invoice from the state's grid operator following final month's winter storm that left hundreds of thousands with out energy.

Bitterly chilly climate in mid-February left hundreds of thousands with out electrical energy throughout Texas because the Arctic circumstances overwhelmed native utility corporations ill-prepared for such climate.

Brazos Electrical Energy Cooperative, which provides 16 co-op members serving greater than 1.5 million Texans, mentioned it filed for Chapter 11 chapter on Monday after receiving "excessively high invoices" from the state grid operator Electrical Reliability Council of Texas (ERCOT).

In keeping with courtroom filings, Brazos mentioned it was hit with invoices from ERCOT totaling greater than $2.1 billion, with fee required inside days.

Brazos mentioned the invoice for the seven-day "black swan" winter occasion was practically 3 times its whole energy price of $774 million for the entire of 2020.

"As the month of February 2021 began, the notion that a financially stable cooperative such as Brazos Electric would end the month preparing for bankruptcy was unfathomable," government vp and basic supervisor Clifton Karnei mentioned in a courtroom submitting.

He mentioned through the storm the value for wholesale electrical energy was set on the most value of $9,000 per megawatt hour for greater than 4 straight days and ERCOT imposed different ancillary charges totaling greater than $25,000 per MWh.

"The consequences of these prices were devastating."

ERCOT has come below fireplace from prospects and politicians over its obvious failure to arrange for the chilly climate and hovering payments because of the non permanent large spike within the vitality market.

Residential prospects who signed for variable-rate plans have reported receiving electrical payments as excessive as $16,000.

Brazos mentioned it filed for chapter safety as "it cannot and will not foist this catastrophic financial event on its members and those consumers."

"Let me emphasize that this action by Brazos Electric was necessary to protect its member cooperatives and their more than 1.5 million retail members from unaffordable electric bills," Karnei mentioned in a press launch.

Texas is the one state within the continental US to have its personal unbiased energy grid, that means it was minimize off when the climate hit.

State governor Greg Abbott has ordered an investigation into ERCOT, and the Federal Vitality Regulatory Fee has additionally mentioned it should probe the elements behind the ability outages.