Texas Electric Providers Begin Filing Bankruptcy As ERCOT Demands Record Payments

Submitted by News Desk on

During the recent winter storm outages that saw 12 million Texans without power, the Electric Reliability Council of Texas (ERCOT) raised rates by as much as 9000% causing record high electric bills for some consumers and added other fees and charges onto electrical providers that could not keep suppling power to the grid, slapping them with record fees.  This is what happened to Brazos Electric Power Cooperative Inc who have now filed for bankruptcy in Houston because they can not pay the enormous fees ERCOT charged them when they failed to keep electricity flowing to the state electrical grid during the winter storm.

ERCOT said on Friday that there are $2.1 billion in unpaid bills from electrical providers.  A significant portion of this are fees resulting from providers failing to generator power or from resellers failing to make payment to ERCOT after ERCOT raised rates to record levels such as Griddy.  ERCOT has terminated Griddy’s access to the grid and all Griddy customers have been forced to switch who they get their electricity from.  

“In the coming days and weeks, it is likely that more electrical power providers will file for bankruptcy as providers simply can not absorb these sky high fee’s ERCOT is assessing them.  So far the only winner is ERCOT, the fees they say they are owed are entirely made-up and were not as a result of a cost they incurred themselves as part of doing business.    This is why ERCOT must be reformed if we want Texas to remain its own independent grid” says Joshua Williamson of San Antonio.  “That like saying, I failed, therefore you must pay me more.”