Who’s Affected by the Texas Power Grid Failure?

Early in the morning on Feb. 15, 2021, the Texas power grid failed amidst a severe winter storm that brought below freezing temperatures, leaving at least 4.5 million without heat, hot water, and electricity. The devastating effects of the power outage have been felt by the state’s residents and thousands of farmers, ranchers, and store, property, and business owners across the state.   

How Have Businesses Been Affected by the Texas Power Outage?

Critically, the entire supply chain has been impacted. The Texas power outage caused manufacturers in the state to be unable to sustain production. As a result of being unable to get shipments, thousands of grocery store shelves have been left empty.

The dairy industry has been hit particularly hard by the Texas power grid failure. While some dairy farmers have been forced to dump $8 million worth of milk since they cannot pasteurize and process it without power, the long-term implications still remain to be seen. Although many dairy farmers increased feed and fiber intake of their cows in an effort to keep the animals warm, the cows may produce less milk as a result of using their metabolism to warm themselves instead. Some ranchers have also been concerned that their cattle may suffer respiratory problems once the temperature rises again.     

Companies in the beef, poultry, and grain industries have experienced similar catastrophic effects to their operations. While hatcheries and beef farms were without power, farmers and ranchers had been trying to keep baby chicks and cattle alive in the frigid temperatures. Additionally, grain mill operations were disrupted, halting production of animal feed.

The estimated losses in the agriculture industry may total hundreds of millions.

What Kinds of Property Damage Has Been Reported Due to the Texas Power Grid Failure?

Residents throughout the state have suffered extensive damage to their homes due to pipes bursting and flooding. Some have said they have incurred significant expenses for repairs to their property, and as a result of losing perishable food. Others have reported returning home after they had checked into hotels to keep warm to discover that their houses and belongings were destroyed by water damage.     

Similarly, those who own business properties have also incurred property damage due to burst pipes and water damage. Not only may essential documents have been lost, but damage to equipment may have occurred as well.

As published by Reuters, insurance companies could potentially see a record number of claims due to the substantial property damage and losses.  Texas’s grid manager, ERCOT, may see lawsuits facing them as well.

What Can You Do If Your Property or Business Was Damaged?

If your property was damaged due to the Texas power outage, it’s critical to document your losses. Take photos of anything that was destroyed and keep receipts for costs that you have incurred. If you have an insurance policy, it may cover some of your monetary losses.

If your insurance provider doesn’t cover the costs of your damages in connection with the Texas power outage, you may be able to file a lawsuit to hold them accountable. Lawyers are currently investigating the damages business owners have sustained as a result of the Texas power grid failure. An experienced attorney can best advise you of your legal rights and remedies.