What Texas Electric Companies are Going Out of Business?

The winter storms of February 2021 have caused a handful of Texas energy cooperatives and retailers to go bankrupt, including Brazos, Just Energy, Griddy Energy LLC, and Entrust Energy Inc. Just Energy and Entrust Energy are also challenging the electricity bills issued by the Electric Reliability Council of Texas (ERCOT) as part of their Chapter 11 cases. Brazos Electric Power Cooperative, Inc., the largest and oldest power generation and transmission cooperative in Texas, is trying to restructure. Brilliant Energy LLC went straight to Chapter 7 liquidation.

The Texas Senate has approved a bill that would direct the Public Utilities Commission (PUC) to review erroneously billed prices during the 32-hour period. Many customers are unable to afford the high cost of electricity that was transmitted along the chain in February. The United States government is taking immediate action to prevent irreparable damage to the Texas electricity market, its participants, and the public. ERCOT has sparked outrage among state legislators, businesses, and households over its response to the February storms. Griddy Energy filed for bankruptcy Monday, which if approved in court, will leave former customers free of electricity bills incurred during the late February winter storm. Skyrocketing bills prompted the Texas Attorney General's office earlier this month to sue Griddy, alleging false, deceptive and deceptive advertising and marketing practices.

Energy providers who are in arrears are now trying to figure out what's next for their businesses and what to do with their customers. According to Reliant, each VREP has told the Texas Public Utilities Commission how many customers they can accept from failing REPs. Texas Attorney General Ken Paxton said in a statement that Griddy and his office are “engaged in ongoing good faith negotiations to try to address additional relief for those Griddy customers who have already paid their storm-related energy bills.”The winter storms of February 2021 have had a devastating effect on many Texas electric companies. A handful of energy cooperatives and retailers have gone bankrupt due to ERCOT energy billing during the storm, including Brazos Electric Power Cooperative, Inc., Just Energy, Griddy Energy LLC, and Entrust Energy Inc. These companies are now facing Chapter 11 cases as they challenge ERCOT's electricity bills.

Brilliant Energy LLC has gone straight into Chapter 7 liquidation. The Texas Senate has approved a bill that would direct the Public Utilities Commission (PUC) to review erroneously billed prices during the 32-hour period. Many customers are unable to afford the high cost of electricity that was transmitted along the chain in February. The US government is taking immediate action to prevent irreparable damage to the Texas electricity market, its participants, and the public. Griddy Energy filed for bankruptcy Monday which, if approved in court, will leave former customers free of electricity bills incurred during the late February winter storm. Skyrocketing bills prompted the Texas Attorney General's office earlier this month to sue Griddy for false, deceptive and deceptive advertising and marketing practices. Reliant has informed the Texas Public Utilities Commission how many customers they can accept from failing REPs.

The Attorney General's office is also engaging in good faith negotiations with Griddy in order to provide additional relief for those who have already paid their storm-related energy bills. The winter storms of February 2021 have had a devastating effect on many electric companies in Texas. While some companies are enduring bankruptcy protection or liquidation, others are fleeing Texas or going into liquidation. It is important for customers to be aware of their rights when dealing with these companies so that they can protect themselves from further financial losses.