CPS Energy 'disappointed’ in Supreme Court ruling protecting ERCOT from 2021 winter storm lawsuits

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CPS Energy 'disappointed’ in Supreme Court ruling protecting ERCOT from 2021 winter storm lawsuits
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The court’s decision last week is a a setback to the utility’s legal efforts to recoup hundreds of millions of dollars it spent on fuel in early 2021.

appeal the same ruling made in Bexar County

, but a 5-4 Supreme Court decision upheld the lower court. The court said Friday that ERCOT was entitled to sovereign immunity from civil lawsuits. “While CPS Energy is disappointed by the Texas Supreme Court’s decision in our case against ERCOT,” CPS said in a statement, “we recognize that the Court needed to weigh in on this previously unsettled issue and are gratified that four justices recognized our legal position as we seek relief for our customers in the aftermath of Winter Storm Uri.”CPS argued ERCOT improperly maintained scarcity pricing past the storm, resulting in billions of dollars in overcharges for fuel statewide.

During the storm, the Texas Public Utility Commission ordered ERCOT to set the electricity prices at the highest rate permitted — $9,000 per megawatt hour — to conserve power, according to the lawsuit. CPS says that cost continued even after the storm was over.But ERCOT argued it was a division of the state government and therefore had immunity to lawsuits related to official actions.

CPS has spent at least $16.55 million on a barrage of lawsuits since the spring of 2021, according to records the San Antonio Express-News obtained in January. In total, CPS sued 18 natural gas suppliers over allegations of price gouging.

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