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Texas lawmakers are calling for investigations into the state’s power grid manager and are demanding resignations from some of its top leadership.
As of Wednesday morning approximately 2.7 million households in Texas have woken up without electricity with little answers as to when the lights and the heat can be turned back on.
“Millions of people without power during this arctic blast is life-threatening and unacceptable,” Texas and state senate head Lt. Gov. Dan Patrick said in a statement. “We must get to the bottom of this to be sure we are better prepared even if an unprecedented weather event happens again.”
Texas and much of the United States are facing record-low temperatures with the winter storm that rolled through earlier this week.
The severe weather initially left an estimated 4 million homes without power by Tuesday morning, according to the Texas Tribune, killing at least 10.
What Happened to the Texas Power Grid?
The cold front that swept across Texas brought with it two to nine inches of snow and ice, according to The Houston Chronicle.
Unlike other states, Texas power operates its own power grid managed by nonprofit Electric Reliability Council of Texas (ERCOT), which provides about 90 percent of Texas’ power, Vox reports.
Most of that power comes from natural gas. When the winter storm rolled through, natural gas pipelines were clogged by ice or disabled by losing power, and demand spiked at the same time. Because the Texas grid isn’t linked to a national one, it was unable to import extra power, according to the Washington Post.
Critics, including certain Texas leaders, claim ERCOT wasn’t prepared despite knowing the storm was coming and hasn’t invested enough in weather-proofing infrastructure.
The surge in demand sent wholesale energy prices skyrocketing, triggering ERCOT’s computers to cut off customers to avoid paying the higher prices, according to The Washington Post.
Neither ERCOT nor any of Texas energy providers are facing litigation over the massive outage but Top Class Actions is tracking the story for developments.
Energy Price Spike
On Monday Texas regulators held an emergency meeting to allow ERCOT to change its pricing to reflect the increased demand, KVEO reports.
“Energy prices should reflect scarcity of the supply. If customer load is being shed, scarcity is at its maximum, and the market price for the energy needed to serve that load should also be at its highest,” the regulators said in the order.
KVUEreports there are caps in place to ensure customers aren’t gouged with an exuberant electric bill, but regulators in other parts of the United States have faced legal actions relating to prices.
Utility Lawsuits in the Past
The issue of unregulated, independent electric companies was the subject of a class action lawsuit filed last week in Maryland. The lead plaintiff argued Major Energy Electric Services gouges her with expensive bills and it only happened after the market was deregulated.
Currently, an Ohio utility faces a class action lawsuit from customers alleging a bribery scheme. A judge denied FirstEnergy’s motion to have that complaint dismissed last week. Consumers in that case allege FirstEnergy paid out $1 million dollars to an organization run by an Ohio lawmaker.
Other class action lawsuits have reached settlements.
Xcel Energy, a Colorado natural gas company, agreed to pay out $2.5 million in a complaint alleging the manipulation of gas prices last month.
Consumers claimed the company was publishing false data and practicing so-called “wash trades.”
Also in January, more than 40,000 Australians were represented in a class action targeting two government owned electric utility companies. The lawsuit was filed after Queensland customers saw 90 percent increases in their bills in the last five years.
Southern California Edison faces charges of negligence in the massive wildfire that consumed much of the state starting in 2017. The numerous lawsuits are estimated to cost the utility approximately $6.2 billion in losses.
Southern California Edison has already paid out an estimated $128 million in settlements stemming from the wildfires and mudslides already, according to VC Star.
Are you living in Texas without power? What do you think of ERCOT’s role in the power outages? Let us know in the comments below.
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87 thoughts onWill Texas Grid Manager ERCOT Face Class Actions Over Power Outages?
Only because of the power outages lasting for so long did so many of our pipes bust. Renting a generator for a week just to keep my kids warm all because of negligence. Ercot needs to be held liable for EVERY HOME DAMAGED BY THIER GROSS NEGLIGENCE.
This is beyond unacceptable.
60 hours without electricity and over $8,000 in pool equipment repairs all because of gross negligence.
Same here, almost 48 hours without electricity and the pool equipment are destroyed.
I have water damage from a burst pipe which only froze due to power being cut off for 30 hours.
This was not a damaging storm with high winds or lots of ice bringing down powerlines.
It got a little cold and we had a light dusting of snow.
The reasons for the power outages were all preventable by Ercott and obviously they were negligent in thier planning.
Aside from the cold and inconvenience I am now going to be expected to pay a higher energy bill but the immediate issue is going to be the thousands of dollars that the insurance company is going to require me to pay because of the deductible on my policy.
At least my deductible should be covered. Why is it my responsibility ??
An investigation and compensation are definitely necessary. A non-profit organization with close to $1B in annual revenue ought to have basic redundancy, business continuity, and disaster plans in place that require member partners to test regularly. When residents have to huddle in their homes during a winter storm in TX because inside temperatures range from below freezing to 50 degrees Fahrenheit, but the same storm doesn’t pose the same seriousness in virtually all other states, then there is gross negligence in planning and testing the power grid. Given the cost of electricity and gas consumers pay each month, freezing temperatures inside the home are unacceptable. How incredibly inconsiderate and disrespectful can a non-profit that controls the energy supply and manages demand for its consumers be without being held accountable?
Been without electricity since Monday 230 a.m. ERCOT is definitely responsible.
I think ERCOT is responsible for this power outage we are experiencing in Texas and should be held accountable. I support the class action lawsuit against them
They are most certainly responsible and it is preposterous to think we should pay higher prices when most needed wasn’t even being provided. Our family went 28 hours straight without power and we have children in our home, ERCOT shame on you !
They’ll pay for this.
Still no power for over 48 hours, was originally told it would out 5 hours. Just found out maybe it will be another 24 plus. Ive already lost $300 in groceries and fear like so many of my friends and neighbors that pipes are goin to burst. Sign me up.
Hope so. Oncor’s “rolling outage” that was supposed to last 15-45 minutes lasted 36 hours. Sign me up.
Yes. Our power was out. When we need it most.