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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 am an operational manager at a major airline. The power outage forced me to drive into work on Monday and then drive to Shreveport to find a hotel because we were w/out power for over 24 hours. I have two small children in my care, 1 and 2, that of course did not understand what was going on. A 7 hour car trip on snow/ice with two small kids is never ideal, but with no choice in the matter, we had to endure it. Had to leave the dogs at home in a 45 degree house. Heard the power finally came back on 52 hours later. So I now have 3 nights hotel times 2 rooms, gas, out of work for 3 days and a refrigerator/freezer full of food that will have to be thrown out. This is the most ridiculous thing for something that could have been avoided. If the supreme court provides immunity, they should be ashamed of themselves. How many people have to suffer and die because of the carelessness by ERCOT. I sure hope there is a class action suit. I will be one of the first on the list!!!
I live in Carrollton, TX and experienced lengthy periods without power during this round of severe weather. Beginning Monday we were without power for approx 20 of the first 24 hours. After that we were 2 hours with power and 8 hours without power on the average. My property has experienced significant damage. I have friends in Carrollton, Dallas, Plano, Corinth and Ft Worth who never lost power a single time. These supposed ‘rolling blackouts’ are a lie, and inequitable. And I know there are people who are worse off than me. The power company determines who gets power and who doesn’t based upon what criteria I can’t imagine. These people, entities, and politicians should be held accountable. Serve them with a lawsuit or nothing will ever change.
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Increasing prices for energy in a waether emergency is criminal when people could die without it. So is cutting off power for those who “used too much”. I was lucky enough to never loose power during the storm. I hosted a friend and her family who are going on 92hrs without power and still not returned as of this posting when much of the area has power now. Rediculous. Litigation and investigation needs to be brought against the energy grid managers. Pricing needs to be regulated to remain constant during emergencies/severe weather and that includes heat waves. Especially during an ongoing pandemic when unemployment is at an all time high. This situation is just disgusting.
We were without power for 38 hours, permitting inside house temperatures to dip to 41 degrees. The two dogs, cat and I had to live in our van to keep everyone safe. I was caused economic harm by paying for other resources to make up for electric company short-sightedness and lack of customer service. I have prescribed medical devices. Thank gosh the van has a 110-Volt inverter. I expect better from Oncor and Ercot, and the price-extortion of Governor Greg Abbott that restored electricity 2 hours later sends a damning message about our State of affairs in Texas.
Hi – I have started a next door posting about the current events in TX and have received over 200+ comments in the past 48 hours. Me and my neighbors are all personally impacted. As we do more research and put information together, there are things ‘not fully adding up’ and a lot of the information we receive is political posturing. We are interested in pursuing a class action lawsuit with ERCOT for their inability to effectively manage supply and demand, which impacted over 4.3 million people in TX. I’ve heard of people who have died, been hospitalized for carbon monoxide poisoning, and there will be extensive economic damage from these storms, particularly those with no power. I am interested in pursuing a class action lawsuit not seeking money, but accountability and justice for what we experienced. This happened in 2011 and in 1989, and no changes have been implemented to winterize power facility plants since. Let’s fix this for the TX winter storm 203X.
Erica Bass, I agree with you.
It’s time to sue ERCOT. That’s the only way to get their attention to fix the problems. I’m ready to join a class action suit. I’m sick & tired of the wealthy & powerful disregarding the best interest of the average citizens. A class action lawsuit is the only way to force those in power to do the right thing for all of us.
How do I see your next door posting?
I had multiple properties incur damage from the sustained loss of power. We were told rolling blackouts were to be expected, that we would get power about 15 minutes per hour. This of course never happened and with the sustained outages, the homes got much colder than expected causing multiple pipes to bust inside. Had I known the outages would be sustained, we would have shut off water to the homes completely to avoid freezing pipes inside!
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For 72 hours our power was on and off, mostly off. It would come on for a few hours in the afternoon and then shut off again before 7pm. It was horrible. We had no heat. The thermometer I brought in our bedroom read 35°! In our bedroom! The 3 of us and our pets huddled under blankets, which is what saved us from freezing. The electricity has been on now for 16 hours straight but I don’t want to get my hopes up that it’s going to stay on. There’s another winter storm warning….
I was without power for 48+ hours and then it came on and went out again. This was a new and ahocking experience for me because I am a new resident of Texas.
A SERIOUS investigation and disciplinary action into ERCOT’s devastating actions during such severe and unprecedented weather let alone, while in the midst of a pandemic needs to be made. Even during our worst hurricanes things weren’t mishandled to this great of an extent. Resignations need to happen. ERCOT is DIRECTLY responsible for the lives lost, and the significant amount of property damage that many homeowners are now having to deal with. Some of these are elderly people, or people laid off due to Covid, others have withstood heavy losses of family members, and then to deal with the severe lack of responsibility of ERCOT on TOP of everything is a complete disgrace. ERCOT’s actions, or lack of, should be considered criminal in nature. It’s unforgivable. There are not enough excuses in the world to justify what they have done.
Been without power for over 72 hrs. Lost freezer plus full of food. Lived in Midwest for years and never lost power in this kind of weather. There were ways and time for ERCOT to prepare they were just too worried about their bottom line. This is unacceptable.