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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?
I was without power 36 hours and am now without water. ERCOT should be sued. Not only were individual families suffering from cold and no water in their homes, businesses lost millions of dollars in revenue being forced to close without power. It’s against the law to keep pets in cold temperatures with no relief; it should be against the law to keep people in cold temperatures as well. BTW, ERCOT is not a non-profit. They’re making money from their negligence.
Sign me up! The excuses given by Ercot are totally unacceptable! They KNEW in enough time to prevent or, at least, lower the impact on the grid. Every one of the management team needs to be held accountable, including, if not solely, the CEO. How DARE they expect to increase the prices to help fix their shortcomings? Take the expense out of their bonuses and millions in salaries! COUNT ME IN!
Currently more than 72 hours without power and counting. 1 mile from downtown austin where empty office bldgs are lit up like vegas. one pipe burst i’m aware of and probably more damage to come. Missed 2 shifts and counting of telework this week.
Totally unacceptable and a severe penalty should be paid.
I was informed that because my residence is on a commercial property and there are only commercial businesses within a certain radius ( I live on-site, in an apartment attached to the office, at a self storage property.) my electricity is not considered a priority at all like residential neighborhoods are. Unfair and unorthodox treatment based on my location. Despite making it known that there is in fact a residence in their “lowest priority zone” I still did not get power back when the neighborhoods in the area did. I went as far as disconnecting all power to the commercial part of the property so that when power is restored I am doing my part to conserve energy. I finally have power back however it is limited because my furnace, oven/stove and hot water heater will not come on. There is just enough power to run my portable heater, TV and coffee maker. I can’t even use my toaster oven. This is awful and discriminatory.
I lost my cold blooded pets. If they did not prepare by weatherizing to save $(even though they are non-profit) and we all knew the storm was coming, they should have at least given us a heads up. My family had to give a propane heater to a neighbor with a newborn that we would have otherwise used to keep the reptiles warm.
I have gone through hurricanes and fires and loosing material items is nothing to me. I grew up without baby pics, but in none of those disasters did we lose animals. Upon warning we prioritize and prepare. This weather and the lost power for over 50 hrs for some of us have costed us greatly
My wife and I went 40 hours or so without electricity. Rolling blackouts can’t exactly be called rolling blackouts when power comes on for 3 minutes then goes off for hours on end. ERCOT should be held responsible and their penance should be severe to remind them of their responsibilities to the people in the state of Texas. Families having to go without power or heat during unprecedented temperatures is unacceptable. The failure of the grid due to poor planning and lack of proper maintenance is one thing, but the absolute failure and poorly executed rolling blackouts is something else. I would most certainly back a lawsuit, whether for monetary gain or reform, but something has to change. They’ve had 30 years to get it right since the storm in 1989 and they haven’t figured it out yet, perhaps with more severe repercussions they’ll be incentivized to figure it out before the next storm cripples their grid again.
It cut off while working from home and we are suppose to use our PTO for time out because of situation. I am stressed. My family is stress mentally and physically etc. pipes burst. A lot. Does anyone know what the best lawyers for this situation?
ERCOT this Febuary Winter front 2021 was unacceptable and unprofessional on your part. ERCOT should have prepared for any and all possibilities of weather changes ahead of time. For goodness sake, it’s Texas, where anything is possible! My own family had to sleep in their truck for warmth. My neighbors rented a hotel. My kids and I hunkered in bed praying for warmth. Main objective is… Many folks were without electricity and water throughout Texas due to this company’s lack of preparedness. Sign me up for a lawsuit against ERCOT.
The rollout was disproportionate. We have been with out power 3 days as well as burst pipe no water. We had to live in our car with our 14month old son basically this event labeled us as homeless in actuality. The meteorologist gave good weather predictions in days prior to the storm and people in the high positions with power failed Texas in many levels which all is severe. None of anyones situation is minor. We all have been through enough. Sign me up to be apart of the EROT classic action law suit. I hope a great firm picks this up for the state of Texas residents
The rollout was disproportionate. We have been with out power 3 days as well as burst pipe no water. We had to live in our car with our 14month old son basically this event labeled us as homeless in actuality. The meteorologist gave good weather predictions in days prior to the storm and people in the high positions with power failed Texas in many levels which all is severe. None of anyones situation is minor. We all have been through enough.
Been without lights since Monday morning in this arctic blast they came back on for 3 hours this morning from 2:30a-5:30a WE WERE SLEEP so it was all for nothing no alerts or warnings this is such a disbelief & disheartening