The Supreme Court of Texas agreed last week to hear the appeals this fall of two cases...
The Texas Supreme Court will hear appeals from ERCOT, arguing that the grid manager is immune to lawsuits, including those related to the winter storm of February 2021.The Supreme Court of Texas agreed last week to hear the appeals this fall of two cases brought by electric power companies against the Electric Reliability Council of Texas that involved billions of dollars individually and affect tens of billions of dollars at stake in thousands of lawsuits related to the 2021 winter storm.
Panda claims ERCOT knowingly produced false market data in 2011 and 2012 that led the merchant power company to invest $2.2 billion to build three new power plants — operations that did not generate the revenues that ERCOT predicted. Panda claims that ERCOT committed fraud, negligent misrepresentation and breach of fiduciary duty and demands hundreds of millions of dollars in damages.
In the CPS case, the San Antonio Court of Appeals dismissed the energy company’s lawsuit, stating that CPS should have taken its claims through an administrative process with the PUC instead of going to court first. The justices on the Fourth Court of Appeals did not address ERCOT’s immunity argument.
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