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3 Mar, 2021 Author Nephele KirongSelene Balasta
This is an update to the continuing financial impacts tracker:
Electricity and natural gas companies continued to warn of potential financial exposure from the February arctic freeze that caused a grid crisis in Texas, with the independent market monitor of the state s grid operator flagging flaws in certain market transactions that occurred during the winter storm.
Brazos Electric Power Cooperative Inc., the oldest and largest generation and transmission power cooperative in Texas, declared Chapter 11 bankruptcy after receiving excessively high invoices from the Electric Reliability Council Of Texas Inc. which required payment within days.
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The largest and oldest power cooperative in Texas is filing for bankruptcy protection, citing last monthâs winter storm that left millions without power, and it is unlikely to be the last utility to seek shelter in the courts.
Brazos Electric Power Cooperative serves distributors that supply electricity to more than 1.5 million Texans in 68 counties from the Panhandle to Houston. Brazos said Monday that it was a âfinancially robust, stable companyâ before the Arctic freeze that hit Texas between Feb. 13 and Feb. 19. The cooperativeâs service area includes parts of southern and eastern Bell County as well as parts of Milam and Falls counties.
Brazos Electric Power Coop has 1.5 million customers across 68 counties.
Brazos said that it received excessively high invoices from the Electric Reliability Council of Texas for collateral and for purported cost of electric service. The invoices were required to be paid within days. As a cooperative, Brazos costs are passed through to its members and retail consumers served by its members. Brazos decided that it won t pass on the ERCOT costs to its members or the consumers. Let me emphasize that this action by Brazos Electric was necessary to protect its member cooperatives and their more than 1.5 million retail members from unaffordable electric bills as we continue to provide electric service throughout the court-supervised process, Clifton Karnei, executive vice president and general manager of Brazos, said in a prepared statement.