Last week Texas experienced a historic winter storm knocking out the power of 4 million, leaving around 70 dead, and costing Texans at least $21 billion in damages. As energy demand rose, the supply of energy fell due to outdated power generators failing, which ultimately deprived the power grid of energy. ERCOT and CenterPoint ignored recommendations in 2001 to winterize their equipment, resulting in rolling blackouts and freezing homes across Texas.
What is the ERCOT?
The Electric Reliability Council of Texas, better known as ERCOT, is a private nonprofit corporation overseen by the Texas Legislature and Public Utility Commission. ERCOT is the only grid manager in the country with such protections. ERCOT operates Texas’s electrical grid, the Texas Interconnection, and is responsible for supplying 90% of the state’s electric load to more than 26 million Texas customers. CenterPoint is an electric and natural gas utility company that serves several markets in the United States, one of those being in Houston, Texas.
Winter Storm Damage Lawsuits
The aftermath of the storm is still being felt by Texans. While most of the power has been restored, the damage is still fresh for those who were affected. Several lawsuits have been filed against ERCOT and CenterPoint claiming negligence and gross negligence in their failure to adequately prepare for Texas’s power needs in freezing temperatures. Their conscious decisions to not increase electric production capacity and failure to meet the energy demands cost many Texans their warmth and unfortunately for some, their beloved family members.
Many of the 70 deaths in Texas are suspected to have been caused by hypothermia. According to Mayo Clinic, hypothermia occurs when your body loses heat faster than it can produce heat, resulting in a dangerously low body temperature.[1] Hypothermia can occur when body temperature reaches below 35°C and can also develop with prolonged exposure to temperatures under 10°C. Unfortunately, this was the case for Texans who sat in their freezing homes for days on end due to the failure of ERCOT and CenterPoint’s to winterize their electric grids.
Additionally, Texans across the state suffered property damage from frozen water pipes bursting and flooding their homes, carbon monoxide poisoning, and homes catching on fire.[2] All of which could have been prevented if ERCOT had not ignored recommendations for over a decade to winterize their equipment.
Increased Energy Bills
If the outages were not enough, Texans are also bracing for the increased energy bills hitting their homes this month as a result of the fuel costs skyrocketing from the storm. According to CPS Energy CEO Paula Gold-Williams, the cost of natural gas spiked by 16,000%.[3] Those with variable-rate power plans are being impacted the most as these plans charge different prices for electricity depending on how much demand there is – the more demand, the higher the price.[4] However, many are calling on the state of Texas to bear the costs related to this catastrophic energy failure last week.[5]
Ultimately, ERCOT and CenterPoint had knowledge of the weather forecast and knowledge that their equipment was not prepared for more than a decade, yet these energy companies failed to take any action that could have averted the crisis that occurred in Texas. Their negligence has caused this devastating result in Texas.
Watts Guerra has filed the first of many winter storm lawsuits against ERCOT to ensure that they are held accountable for their failure to adequately supply energy to the state of Texas.[6]
Resources
Below are resources for those who have been affected by the recent weather in Texas.
American Red Cross Serving Central and South Texas
Habitat for Humanity Home Repair Service in Austin
Partnership for Inclusive Disaster Strategies
Written by:
Kelsey Abbey
Law Clerk
WATTS GUERRA LLP
Four Dominion Drive, Bldg. Three, Suite 100
San Antonio, Texas 78257
Phone: (210) 447-0500
Frank Guerra
Board Certified – Personal Injury Law
Texas Board of Legal Specialization
WATTS GUERRA LLP
Four Dominion Drive, Bldg. Three, Suite 100
San Antonio, Texas 78257
Phone: (210) 447-0500
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