Texas Grid Manager, Electricity Transmission Company Hit with Lawsuit for Ignoring Warnings About Grid, Electricity Infrastructure Weaknesses
Suit claims ERCOT, AEP responsible for property damage, business interruptions
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CORPUS CHRISTI, Texas, Feb. 19, 2021 /PRNewswire/ -- Texas' electricity grid manager ERCOT and electricity transmission company American Electric Power Company (NASDAQ: AEP) consciously ignored repeated warnings about weaknesses in the state's power infrastructure and bear responsibility for property damage and business interruptions from recent catastrophic winter weather power outages, according to a lawsuit filed Friday.
The lawsuit filed by Dallas-based Fears Nachawati Law Firm charges that the Electric Reliability Council of Texas (ERCOT) and AEP each failed to maintain and winterize their infrastructure for the anticipated spike in energy use and failed to take corrective action once systems started to fail. The resulting widespread property damage from blackouts was caused by their negligence and gross negligence. In addition, the disruptions rendered private property unusable and amounted to an illegal "taking" of private property by the government.