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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?
We all know how devastating and tragic this artic freeze has been. As a disabled senior who went without power for 68 hrs I want to do everything possible to ensure the people, entities involved are held responsible and accountable. If they’re not this will happen again. Sign me up!
I live in Oak Valley a town part of Corsicana Texas. I was out power for over 50 hours from late Sunday night to early Wednesday morning. We about froze to death. I did lose all my tropical fish because the water in my 90 gallon tank froze killing all 7 of my them. I’m livid on how they could make a call to shut people off for that long. Rolling blackouts to last 15-60 minutes my butt more like I’ll shut this person off and forget about them for a few days they’ll never notice . Well sorry people noticed. This is inhumane I had to put all 4 of my dogs in my vehicle to stay warm at times during the 50 hours. I really would like to see them pay for their incompetence. I have medical conditions that are affected by cold weather. There are a lot of people in Texas that would join this suit for sure once there is one. Someone should be held accountable.
Power went off Monday around 2 am and I have been without power since. No hotels in town have rooms, not that I could make it to them because of the road conditions. Have two children and four pets. Power is still off currently (over 108 hours out and counting). I’m at my wits end. Out of wood for my fireplace. Food running low. Still freezing. Roads are icy so I can’t leave. Would like to join any class action lawsuit as well. I’m in Temple Texas 76502.
This is crazy what happened in Texas this week because ERCOT wasn’t prepared. They left us without power for days and now I find out most homeowner’s policy’s have an exclusion that doesn’t cover power interruptions. So they expect you to stay in a home freezing and wait it out…. unreal. We have incurred 4 nights in a hotel to now not having water but we have no choice but to figure it out even though most stores are sold out of water. Not to mention food is hard to find right now as stores lost power too. Just a huge mess that could’ve been prevented.
Miserable in San Antonio Texas.
Me and my husband was with out power since Monday February 15th.
We live in a 5th wheel RV which is basically a metal box! So that in itself made it feel so much more colder than if we was in a house or apartment.
We experienced more than 72 + hours with out Electricity. The long night time hours was the worst, unable to sleep because of the EXTREME COLD.
Both me and my husband are Disabled. My fingers and hands felt like they were frostbitten, still having numbness in both hands and fingers.
Now to be honest there was about 4 times the Electricity did pop on but for only 30-45 SECONDS At 45 minutes intervals only 4 darn times!!
My heart goes out to the Elderly as well as the children especially the little babies that have a hard time regulating their body temperature to begin with.
Texas is a wonderful state, born and raised here in San Antonio. My understanding is we are the only State to have it’s on Power Grid!
The Company that has caused us to go with out power KNEW THIS WEATHER WAS COMING AND KNEW THE POSSIBILITY OF OUTAGES HAPPING CHOSE NOT TO LET THE PUBLIC IN ON THIS SO WE COULD HAVE BETTER PREPARED OURSELVES!!!
San Antonio hardly ever gets Snow and we would more then likely enjoyed it had we not be so unbelievably cold in our homes.
This was uncalled for by this company and they need to be held responsible!!!
ADD ME PLEASE!!
Add me.
Was out of power from Sunday around 2300 to Wednesday about 1530. Some bs. Add me please
Add me please
We were without power for over 50 hours and our downstairs dropped into the low 40’s (upstairs in the mid-40’s). Because we have corgis, parrots, parakeets, a canary, tropical fish and my wife raises rare ferns and palms in our 50′ greenhouse (that has built in heaters) it was impossible for us to leave the house. We already know that we have lost all of our tropical fish and are holding our breath about the thousands of dollars of rare plants my wife has been raising for years. We know we have an unusual circumstance but we have paid our bills for years and should expect to receive the services we have paid for. Ercot has gone far beyond being irresponsible. What they have done should be considered criminal. In addition, if because of the nature of Ercot, Texas can’t purchase power from other states the situation must be reversed immediately. It is time for the citizens of our State to put the kind of necessary pressure on our governor and other politicians to correct this situation. If they fail to act immediately we should all raise up and throw them out of office. Ercot should not be shielded from liability. My wife and I are eager to join any class action suit launched against Ercot.
I had no power for at least 61 hours in the 76180 zip. I have a huge sob story involving my mother whom I care for and her myriad of health issues and the struggles we faced with the uncertainty of the first day.
By day 2 it was becoming obvious that hoping for power to be restored was useless. I ended up taking her to the hospital because she was far from being well at that point.
Please let’s do something to ensure that privatization of profits and socialization of risks doesn’t become the status quo. Bottom line is, this wasn’t a hurricane. By and large there were no high winds and downned branches preventing the distribution of electricity. There were decisions made both before and during the disaster that led to my struggles as well as the millions of other fellow Texans also impacted.
They need to be penalized for making the wrong decisions and we would also appreciate any compensation that comes from it.
Furthermore, I intend to hold all politicians to account. Talk is cheap. We demand actions or your comfy chairs shall be in jeopardy! Know this!