Texas Power Company, ERCOT Hit With $10M Lawsuit Over Outages

UPDATE:

• ERCOT board members step down on Feb. 24, 2021 as criticism of the company intensifies
• At least two other lawsuits filed this week Feb. 22-24

A Houston-area couple has filed the first lawsuit against the Electric Reliability Council of Texas (ERCOT) and CenterPoint Energy, asserting its negligence in failing to prepare for the winter storm that left millions without power and nearly 80 dead.

Plaintiffs Mauricio and Daysi Marin are demanding $10 million in damages from the operator and utility company. The couple says Mauricio was close to dying from COVID-19 and was left to suffer without medical treatments that required electricity.

Mauricio reports the blackouts stemming from the snowstorm cut off his supplemental oxygen, leaving him and his wife “cold and hopeless.” 

Millions Plunged into Darkness in a Winter Storm

The couple says ERCOT and CenterPoint Energy cut power off to millions of Texans without warning. 

The Marins are wondering why ERCOT waited until the winter storm hit to act and why CenterPoint Energy never warned customers of the blackouts. Because ERCOT and CenterPoint Energy failed to prepare for the storm and communicate blackouts to customers, the companies are negligent in its duties, the lawsuit contends. 

ERCOT also didn’t consider electrical demands adequately enough, the lawsuit states, and did not provide enough power to the state. Its forecast leading up to the winter storm “far under-estimated the reality.”

“As a result, millions were plunged into darkness,” the lawsuit states. 

Negligence Beyond ERCOT

In addition to the lawsuit’s claims against ERCOT, the Marins allege CenterPoint Energy had an obligation to not only warn customers of power shut offs, but also to maintain its infrastructure. The suit alleges that the company failed to conduct the necessary work to winterize equipment, generators and power lines.

“CenterPoint had the ultimate responsibility to supply power … throughout much of the state of Texas, but failed to do so because it callously and indifferently placed profits over people,” the lawsuit asserted.

CenterPoint Energy allegedly failed to implement rolling blackouts in a safe manner and left neighborhoods without power for days. Additionally, the power company failed to warn the public of how long these blackouts will last, the lawsuit states.  

The Marins are seeking actual and exemplary damages in the amount of $10 million. Formally, the lawsuit accuses ERCOT and CenterPoint Energy of gross negligence. 

Fallout Continues for ERCOT

At least two other lawsuits have been filed against ERCOT alleging the company acted negligently in the face of the severe winter storm. In one, a family alleges that their 11-year-old child froze to death after ERCOT cut power to their home, reports ABC News.

A second class action lawsuit has reportedly been filed on behalf of millions of Texas ERCOT customers who unexpectedly had their power shut off during the storm. The plaintiffs state that “ERCOT has repeatedly disregarded its responsibilities” in prior years, failing to learn from previous blackouts during winter weather in the state.

In the meantime, four of ERCOT’s board leaders announced on Tuesday that they would step down. In addition, a candidate for a position as a board director announced he would withdraw from consideration. ABC News reports that all five are from out-of-state, resulting in increased scrutiny of the company by lawmakers.

“We want to acknowledge the pain and suffering of Texans during this past week,” wrote the departing board members in a statement. “Our hearts go out to all Texans who have had to go without electricity, heat, and water during frigid temperatures and continue to face the tragic consequences of this emergency.”

Up to 4 million Texas homes were left without power when the winter storm hit. Though the storm subsided by the end of the week, millions had to boil water because of crippled water systems, The New York Times reports. 

Do you live in Texas? Did you lose power during the winter storm? What do you think of this lawsuit? Let us know in the comments below.

The plaintiffs are represented by Francis I. Spagnoletti, Marcus R. Spagnoletti, Eric J. Rhine of Spagnoletti Law Firm.

The ERCOT CenterPoint Energy Texas Winter Storm Lawsuit is Marin et al. v. CenterPoint Energy Inc. et al., Case No. 202109497, in Harris County, Texas District Court. 

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