Texas electric cooperative files for bankruptcy after massive storm

Brazos Electric Power Cooperative Inc. (BEPC), the largest and oldest power cooperative in Texas, has filed for bankruptcy due to a disputed $1.8 billion bill from the state’s grid operator, Reuters reports.

BEPC, which provides power to more than 660,000 consumers in Texas, is among the dozens of providers that are facing hefty charges from the Electric Reliability Council of Texas (ERCOT) after freezing temperatures left millions of households in the state without power in February.

Reuters added that BEPC executive Clifton Karnei, who signed the company’s bankruptcy submissions, sat on ERCOT’s board of directors until last week.

More providers are expected to reject bills, executives from ERCOT said. According to ERCOT, $2.1 billion in initial bills was unpaid as of last Friday.

BEPC and other providers were required to buy replacement power at elevated rates, Reuters notes, and cover unpaid fees from other companies.

Four ERCOT board members resigned last week due to the power outages. All four members lived outside of Texas, leading many to question why individuals who do not live in the state were given top positions at the grid operator.

Texas Gov. Greg Abbott (R) has called for an investigation to be opened into ERCOT, requesting that reforms to the grid operator be prioritized as an emergency item in the legislative session.

“The Electric Reliability Council of Texas has been anything but reliable over the past 48 hours,” Abbott said a statement last month. “Far too many Texans are without power and heat for their homes as our state faces freezing temperatures and severe winter weather. This is unacceptable.”

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