More than 100 insurance companies sue ERCOT over claims related to February freeze

[TexasTowelie]

As Texas nears the first anniversary of the freeze that left much of the state without heat and electricity for days, more than 100 insurance companies are suing Texas' main power grid operator as well as a host of electricity companies.

The suit blames the Electric Reliability Council of Texas — and companies that supply electricity into the ERCOT system — for the energy failure and the significant property damage that followed. Austin Energy is not a listed defendant in the case, but other lawsuits have taken aim at the city-owned utility.

ERCOT "failed to adequately prepare for the 2020-2021 winter season, and in fact, planned to fail," the suit argues, citing ERCOT's projections that if an extreme weather event occurred in Texas, the state would be thrown into the highest state of emergency.

As of July, insurers indicated they had 500,196 freeze-related insurance claims and expected to ultimately pay about $10.3 billion in losses from the event, the Texas Department of Insurance reported. The majority of claims were residential.

Read more: https://www.timesrecordnews.com/story/news/2022/01/07/over-100-insurance-companies-sue-ercot-over-claims-related-february-freeze/9106055002/
(Wichita Falls Times Record News)

[Tatertot]

1. Predictable

Entirely predictable and the best chance to force winterization of electric production in texas, since the republicans running texas are unwilling to do their regulatory job

I predicted this back during the event.

[BillyBobBrilliant]

2. Unfortunately

I have a feeling that as an Electricity customer in Texas, I'll be paying some of that bill, somehow.

[Tatertot]

3. Me too

As an electrical consumer in texas that had my power turned off during that event, I expect to pay. I pay for RELIABLE power, not electric on Tuesday, or between 2-4pm, or when it’s not to hot or cold. My older brother in Houston isn’t willing to pay either (we don’t agree politically) But I want it fixed. Alaska, Michigan, etc do it. It’s not that they can’t, it’s that they won’t And the electric producers won’t because it isn’t economically advantageous to do it. They have no incentive. Power gets cut off and the price goes up, and they don’t spend money to produce the power…a win/win for them. Force them to pay for the residential damage now and in the future and they have economic incentive to do the necessary work

[Tatertot]

4. You can pay

Now or later… A “one time” bill to winterize or a continuing bill from reoccurring freeze damage (approx every 10 years it seems) via higher home owners insurance bills.

You will be paying for last February either way…..

[LetMyPeopleVote]

5. This will be fun to watch