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The largest electric company in Texas filed for bankruptcy over a bill lawsuit


White snow at a substation in Waco, Texas, February 18, 2021. Photo: AFP / VNA

Brazos, a power company, is one of dozens of electricity suppliers facing huge charges after the state experienced a devastating blizzard last month, according to Reuters news agency. Power outages have left many power providers in the face of billions of dollars in costs related to power outages.

The unusually deep drop in the blizzard left nearly half of Texas’ power generation facilities paralyzed in mid-February, leaving 4.3 million without electricity to heat, light, and clear pipes. lead water to freeze. Previously, Brazos and other companies committed to supplying electricity to the grid. However, they were unable to fulfill that commitment and were forced to purchase high-priced replacement electricity and pay for unpaid charges.

The Texas Power Grid Executive Board (ERCOT) said on February 26 that power companies have yet to pay $ 2.1 billion under the original bills, underlining financial pressure on power providers. this grid.

It is expected that more electricity suppliers may refuse to pay the bill in the coming days.
“The state’s electricity industry is really in crisis,” said Maulin Patani – founder of the electricity company Volt LP – said.

The city of Denton in North Texas last week sued ERCOT in a state court to prevent it from charging fees for unpaid bills. According to the lawsuit, Denton Electricity could face charges of up to tens of millions of USD if it does not collect electricity bills from users.

During the blizzard, ERCOT raised the market price of electricity to $ 9,000 per megawatt hour for more than four days and charged additional service charges. According to the electricity providers, the service charge is 500 times higher than the normal rate.

Mr. Clifton Karnei – CEO of Brazos Company and also on ERCOT’s executive board – signed the bankruptcy filing. Through 16 subsidiaries, Brazos currently supplies electricity to more than 660,000 homes across Texas.




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