Rimkus Consulting Group, Inc

Subrogating Texas Freeze Damage Claims

 Monday, November 22, 2021

 Matthiesen, Wickert & Lehrer, S.C.

Successful subrogation against power companies is not a given. In determining whether the Electric Reliability Council of Texas (ERCOT) may be sued for its clear negligence in failing to properly winterize power production facilities and the power grid that it runs in Texas, the issue is currently in limbo.

The Texas Supreme Court is currently reviewing whether ERCOT will be granted governmental immunity.

There are a myriad of reasons Texas has seen power outages, but many of the failures are likely tied to simply being unprepared for extreme cold weather. In Texas, power is generated from natural gas, coal, nuclear, and wind.

This is not unsimilar to power generation in states that inhabit colder climates. It is clear that all of this equipment has the capability to be winterized and made to operate in sub-freezing temperatures.

The issue is that the power providers in Texas have not undertaken the time and investment necessary to properly winterize their equipment.