(AP) – The largest and oldest power cooperative in Texas is filing for Chapter 11 bankruptcy protection citing last month’s winter storm that left millions without power.
Brazos Electric Power, which serves 16 distribution member cooperatives that cater to more than 1.5 million Texans, said Monday that it was a “financially robust, stable company” prior to the severe cold weather that hit Texas between February 13 and February 19.
Brazos said that it received excessively high invoices from the Electric Reliability Council of Texas for collateral and for purported cost of electric service. According to court documents, the bill was about $1.8 billion.
Brazos says it’s decided not to pass on the ERCOT costs to its members or the consumers.
Dallas Oil and Gas Attorney Chrysta Castañeda says she expects more companies to have to file for bankruptcy because the price of electricity spiked so much and the companies who aren’t able to pass those costs along to customers are going to have to pay out of pocket.
She said ERCOT may have the power to retroactively set rates for electricity that might help eliminate these inflated prices, but there’s no telling if they will.
“What I see happening, hopefully, is the Legislature and Governor are going to have to provide some sort of relief for both consumers and these companies who cannot bare these excessive loses,” said Castañeda.
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