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Mon Mar 1, 2021, 03:20 AM

Texas electricity firm files for bankruptcy citing $1.8 billion in claims from grid operator

Last edited Mon Mar 1, 2021, 12:32 PM - Edit history (4)

Source: Reuters

HOUSTON (Reuters) - Texas’s largest and oldest electric power cooperative on Monday filed for bankruptcy protection in federal court in Houston, citing a disputed $1.8 billion bill from the state’s grid operator.

Brazos Electric Power Cooperative Inc, which supplies electricity to more than 660,000 consumers across the state, is one of dozens of providers facing enormous charges stemming from a severe cold snap last month. The fallout threatens utilities and power marketers, which collectively face billions of dollars in blackout-related charges, executives said.

Unusually frigid temperatures knocked out nearly half of the state’s power plants in mid-February, leaving 4.3 million people without heat or light for days and bursting water pipes that damaged homes and businesses. Brazos and others that committed to provide power to the grid - and could not - were required to buy replacement power at high rates and cover other firms’ unpaid fees.

The state’s grid operator, Electric Reliability Council of Texas (ERCOT), on Friday said $2.1 billion in initial bills went unpaid, underscoring the financial stress on utilities and power marketers. More providers likely will reject the bills in coming days, executives said.


Read more: https://www.reuters.com/article/us-bankruptcy-brazoselectric-texas-outag/texas-electricity-firm-files-for-bankruptcy-citing-1-8-billion-in-claims-from-grid-operator-idUSKCN2AT1FE




http://www.brazoselectric.com/pressrelease.pdf

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Reply Texas electricity firm files for bankruptcy citing $1.8 billion in claims from grid operator (Original post)
dalton99a Mar 2021 OP
winstars Mar 2021 #1
NNadir Mar 2021 #10
abqtommy Mar 2021 #2
IthinkThereforeIAM Mar 2021 #3
ancianita Mar 2021 #6
MissMillie Mar 2021 #15
hot2na Mar 2021 #4
aggiesal Mar 2021 #26
bucolic_frolic Mar 2021 #5
Maxheader Mar 2021 #7
Baitball Blogger Mar 2021 #8
FailureToCommunicate Mar 2021 #9
Lonestarblue Mar 2021 #12
FailureToCommunicate Mar 2021 #16
Lonestarblue Mar 2021 #23
Roc2020 Mar 2021 #11
IronLionZion Mar 2021 #13
MissMillie Mar 2021 #14
turbinetree Mar 2021 #17
rpannier Mar 2021 #18
NBachers Mar 2021 #19
LaMouffette Mar 2021 #20
modrepub Mar 2021 #21
LeftInTX Mar 2021 #22
Yo_Mama_Been_Loggin Mar 2021 #24
mdbl Mar 2021 #25
dalton99a Mar 2021 #27
mdbl Mar 2021 #28
dalton99a Mar 2021 #29
mdbl Mar 2021 #30

Response to dalton99a (Original post)

Mon Mar 1, 2021, 03:38 AM

1. Oh, I suppose its because of the Green New Deal this has occurred????????????

Darn windmills.

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Response to winstars (Reply #1)

Mon Mar 1, 2021, 09:23 AM

10. An inconvenient truth is that this situation is...

..."smart" metering run wild.

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 05:46 AM

2. Some Texans remember The Alamo; ERCOT remembers ENRON...

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 06:24 AM

3. Let the state of Texas take out a loan from the Feds, like GM, Chrysler and Ford did in 2008/09...


... and give Texas 10 years to pay it off. They caused their own problem. They had many warnings the past few decades... the rest of the nation can show how charitable they are by loaning them money when in dire straights. (don't know if I should put in a sarcasm tag or not).

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Response to IthinkThereforeIAM (Reply #3)

Mon Mar 1, 2021, 07:47 AM

6. +1

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Response to IthinkThereforeIAM (Reply #3)

Mon Mar 1, 2021, 10:09 AM

15. I like this idea (n/t)

.

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 06:26 AM

4. Looks like ERCOT will need a bailout from taxpayers

So much for all that non regulation bloviating.

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Response to hot2na (Reply #4)

Mon Mar 1, 2021, 02:38 PM

26. Privatize the profits, socialize the debts ...

I think when any company asks for bailouts from us taxpayers,
then the government should mandate the business model change,
so that we should not be bailing them out every other year.

It is, after all, our money they're using to stay alive.

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 07:35 AM

5. Sounds to me like free market bidding at a point of scarcity

but I'm no expert on Texas utility structure. Deregulation and price-gouging come to mind. Ah, the benefits of laissez-faire no-government capitalism! Get the government off your backs and THIS is what happens!

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 08:10 AM

7. Fix your shit texas..


We've already got armadillos migrating up here cuz of global

warming. Don't need any lone star wingers lookin for stable

power ...

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 09:03 AM

8. Bankruptcy. Who knew?

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 09:06 AM

9. So, Big Texas power providers get a taste of having to pay "out of network" charges. Lesson...

learned? Probably not.

Why do I get the feeling we the tax payers will end up being asked to bail the power providers -like Brazos - who had to buy power from elsewhere, AND bail out the millions of Texan homeowners who also got exorbitant bills for that week.

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Response to FailureToCommunicate (Reply #9)

Mon Mar 1, 2021, 09:40 AM

12. In return for a federal bailout, Texas must join a federal power grid and be subject to regulation.

This seems only fair. Otherwise, it will just happen again because Republican politicians here are too stupid, greedy, and corrupt to look out for average citizens.

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Response to Lonestarblue (Reply #12)

Mon Mar 1, 2021, 10:13 AM

16. That would be a good requirement. But that may also mean "we" are on the hook for them to up-

grade, and winterize the power plants and grid.

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Response to FailureToCommunicate (Reply #16)

Mon Mar 1, 2021, 12:22 PM

23. We're likely to be on the hook anyway because Republicans are not trustworthy.

They’ll take the federal bailout, give consumers a few dollars, and reward their buddies in the energy industry with the rest of the money.

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 09:27 AM

11. No man...or State is an Island

because when the do do hits the fan and it always does, you're on your own

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 09:41 AM

13. Those damn liberals are killing jobs again with their regulations

Oh wait, Texas is deregulated and independent

What a hot mess. This has to be a campaign issue to change the leadership of that state. If people can't get basic services like power, heat, water, or clear roads, it looks like it's time for a change.

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 10:07 AM

14. the big, rich muckety-mucks want a bail-out..what else is new? (n/t)

.

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 10:16 AM

17. Well that didn't take long....who would have thunk....

.....greed is not good, and this just shows what and how "corporate run state" fails in it's mission, I mean that literally, and then they will go to the horse trough and ask for a bailout at both the state and federal level from "blue state taxpayers...........and Allen West and his gang want to leave the union...........

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 10:21 AM

18. This is something sensible people need to mention as often as possible

The failure of deregulation

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 10:27 AM

19. How's that Corporate Stampede out of California and into Free Range Texas workin' out for ya,

Hewlett Packard, Oracle, and Tesla?

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 10:35 AM

20. So Texas energy customers are having their savings wiped out by $17,000 electric bills, but

the giant energy company that has screwed them over gets to go bankrupt?!

I think every person who received an exorbitant electric bill after the Texas snowstorm event should file for bankruptcy then. All of them, do one massive bankruptcy all at once.

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 10:49 AM

21. Another "Too Big To Fail" Moment

Think a lot of people are confusing a functioning market place with what's going on in TX, which is more of a political set up than a "deregulated" market.

In a truly functioning market, situations like this will tend to wring out the bad players and hopefully replace them with competent ones. What happened here was residents and companies didn't lock in contracts (or hedge their position) because the spot price was lower. What you saved over the years by buying based on the lowest price (spot price) just got wiped out in a week. The supply was interrupted and could not meet demand (plus you couldn't pull electricity from neighboring grids because politicians didn't want to be subject to federal/cross-state commerce rules). A veritable (man-made) black swan event.

If taxpayers step in to "correct" this problem then it doesn't allow the market to function properly by removing the players who are responsible for this catastrophic mistake. Hopefully ratepayers will get some relief but if they don't learn to buy via contract instead of spot then this is going to happen again (and again).

There needs to be some market-based accountability or this will continue. Taxpayers will be saddled with more debt and the politicians and grid managers will not suffer any real consequences for their actions (and the total lack of understanding how true markets actually work).

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 12:05 PM

22. This is not good. This is a public utility. I was afraid of this.

Now customers will be forced into the private market.

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 01:07 PM

24. Welcome to Trumponomics

When the shit hits the fan file bankruptcy and walk away.

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Response to dalton99a (Original post)

Mon Mar 1, 2021, 01:53 PM

25. Guess TX has no anti-gouging laws for states of emergemcy

the guy hoarding the hand sanitizer to sell back at outrageous prices gets arrested for gougomg but the power grid operator in TX has no problem doing it.

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Response to mdbl (Reply #25)

Mon Mar 1, 2021, 02:53 PM

27. Heck, the Texas Public Utility Commission ORDERED them to raise prices

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Response to dalton99a (Reply #27)

Mon Mar 1, 2021, 09:17 PM

28. It is totally moronic for them to think this is a normal economic condition

The market fluctuations are normally not so severe and any dolt that isn't a greedy asshole should know the market should not be guiding pricing in an emergency situation such as what happened in TX. Even the stock market halts trading before things completely crap out. It was a man-made emergency. Hopefully the voters will remember to remove the dumbasses who were supposed to be responsible for the grid's oversight. I know, that's a pipe dream in TX.

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Response to mdbl (Reply #28)

Mon Mar 1, 2021, 10:37 PM

29. The chief moron resigned:



DeAnn Walker, the chairwoman of the Public Utility Commission, is the highest-ranking official to step down in the aftermath of one of the largest power failures in U.S. history.

Gov. Greg Abbott appointed Walker to the commission in 2017, and she is one of two commissioners who used to work in his office. In a letter to Abbott, Walker said she accepted her role in the outages but that others should acknowledge their responsibility, including gas companies and lawmakers.

Abbott, a Republican, blamed the power failures on the state’s grid manager, the Electric Reliability Council of Texas, commonly known as ERCOT. But the three-member commission appointed by Abbott has oversight authority over ERCOT.

Walker struggled in two lengthy appearances before legislative panels investigating the state’s electric grid breakdowns, the commission’s response and the lack of communication with the public over the approaching storm.

She initially said her agency has little control over ERCOT, but later said it has total control. Lawmakers questioned her knowledge of her agency’s authority and the decision to reduce or reassign enforcement staff charged with policing the utility companies.

She was also criticized for a lack of communication about the approaching catastrophic storm. Walker testified that she spoke with Abbott’s office, as well as staff for Lt. Gov. Dan Patrick and others several days before the storm hit to warn them about the weather and its potential impact on power distribution in the state.


https://www.cnbc.com/2021/03/01/texas-fallout-over-blackouts.html

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Response to dalton99a (Reply #29)

Tue Mar 2, 2021, 06:56 AM

30. Thanks for the info

It makes you wonder why a state like TX has a PUC when they don't want any regulation. A job with a bunch of seats being paid to do nothing.

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