As the Lone Star State continues to grapple with the aftermath of winter storm Uri, many Texas electric companies are facing bankruptcy and liquidation. The Waco-based Brazos Electric Power Cooperative, Inc. is the largest and oldest power generation and transmission cooperative in the state, serving 16 distribution member cooperatives and over 1.5 million Texans. Unfortunately, some heavily affected retailers and cooperatives have been forced to reach bankruptcy court. Brazos Electric Power Cooperative Inc.
is attempting to restructure, while Brilliant Energy LLC has gone straight to Chapter 7 liquidation. Griddy Energy, the Texan energy provider that encouraged customers to leave service during recent snowstorms, has become the third energy company in the state to file for bankruptcy as a result of grid outage. The Texas Attorney General Ken Paxton has sued Griddy on March 1, accusing the retailer of price increases under the Texas Deceptive Business Practices Act. The Texas Senate swiftly approved a bill Monday that would direct the Public Utility Commission (PUC) to review erroneously billed prices during the 32-hour period. The Texas Electrical Reliability Council (ERCOT) regulates power generation and management in the state.
However, the Texas Energy Reliability Council was going to lower prices back to market prices the next day, according to an independent market monitor. The repercussions of this crisis will be felt in Texas, in the licensed entities that provide electricity, and in the businesses and residents of Texas they serve. Just Energy, a Canadian company, also filed for bankruptcy in Texas after recently completing a recapitalization. Denton Electric could face tens of millions of dollars for charges not charged to others, according to a lawsuit. Customers who paid a fixed rate for electricity were protected from rising prices, although they could see prices rise in the near future to offset additional costs incurred by electric companies. As Texans continue to struggle with sky-high electricity bills and other consequences of winter storm Uri, it is important to stay informed about which electric companies are going out of business.
Knowing which companies are affected can help customers make informed decisions about their energy providers and protect themselves from potential price increases.
Leave Reply