Legal, legislative, and procurement issues related to this week’s widespread failures of the Texas power grid have and will continue to result in significant losses for numerous businesses and individuals in Texas and significant changes to Texas infrastructure. There are many examples of the consequences stemming from this disaster, only a few of which include:
- Billions of dollars in property loss will occur, including, but not limited to, widespread flooding of structures due to the thawing of broken water, sewage, and gas pipes. Property insurance carriers will be stretched to the limit.
- Power traders profited while Retail Electric Providers have and will suffer often existential financial losses as a result of having to purchase electricity at the maximum spot price of $9000/megawatt hour (when it was approximately $19).
- Texas Governor Abbott added as an emergency legislative item the winterization of the Texas power system infrastructure (including gas, coal, wind, solar, nuclear, and related production, pipeline, and electrical generation infrastructure).
Furthermore, late on Friday, February 19, Texas Attorney General Paxton’s Consumer Protection Division issued Civil Investigative Demands to the companies listed below:
- Read the CID to AEP Texas.
- Read the CID to Calpine Corporation.
- Read the CID to CenterPoint Energy Services.
- Read the CID to ERCOT.
- Read the CID to Griddy Energy.
- Read the CID to La Frontera Holdings.
- Read the CID to Luminant Generation Company.
- Read the CID to NRG Texas Power.
- Read the CID to Oncor Electric Delivery Company.
- Read the CID to Panda Sherman Power.
- Read the CID to Temple Generation I.
- Read the CID to Texas-New Mexico Power Company.
The Texas legislature is in session and will be asked to assist Texas businesses and individuals. This may provide new opportunities for those doing or wishing to do business in Texas.
Should you require assistance (or see opportunities), our Foley Government Solutions Texas team is positioned to assist with insurance, legislative, regulatory procurement, investigative, and litigation issues. We regularly work with Foley’s Energy Team, Bankruptcy Group, and other practitioners.
For more information, please contact members of Foley’s Austin, Texas Government Solutions Team:
- Kim Yelkin – Managing Partner of Foley’s Austin, TX office
- Insurance Regulatory
- Office: 512.542.7001
- Cell: 512.413.7412
- Craig Chick – Director, Public Affairs
- Texas Lobby and Government Procurement
- Office: 512.542.7085
- Cell: 512.771.3769
- Ed Burbach – Partner
- Texas Attorney General, Regulatory Enforcement, Investigations, and Litigation
- Office: 512.542.7070
- Cell: 512.470.0801