Supreme Court rules ERCOT can't be sued, dismisses CPS lawsuit

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Supreme Court rules ERCOT can't be sued, dismisses CPS lawsuit
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The court ruled Friday that ERCOT is a government entity entitled to sovereign immunity, protecting it from being sued over the 2021 winter storm.

Credit:The Texas Supreme Court ruled Friday that the Electric Reliability Council of Texas is a government entity and entitled to sovereign immunity, protecting it from being sued. The decision effectively dismisses CPS Energy’s lawsuit against Texas’ power grid operator over the deadly February 2021 winter storm.Success! You're on the list.

CPS Energy expressed disappointment in the Supreme Court’s ruling, saying in a prepared 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.”

Exactly how CPS Energy reduced costs passed on to customers or by how much was unclear from the statement. The utility did not immediately respond to a request for clarification. against ERCOT accused the grid operator of allowing wholesale electricity prices — power that typically trades at under $50 per megawatt-hour — to rise to $9,000 per megawatt hour and stay there for 72 hours during Winter Storm Uri.

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