Texas Supreme Court To Decide On ERCOT Immunity From Lawsuits After Deadly Freeze

Lawyers argued before the Texas Supreme Court on Monday over whether the state’s power grid operator should be protected from lawsuits, a question that has become especially important after the deadly February 2021 freeze.

Individuals and insurance companies have filed lawsuits against the Electric Reliability Council of Texas and power generators since the storm, which left millions of Texans without power in bitterly cold temperatures and hundreds of people dead after electricity was cut in large portions of the state.

How those cases proceed will depend on what the Supreme Court decides in the coming weeks or months.

Lawyers for the ERCOT -- the nonprofit that manages the state grid -- argued Monday that it should receive the same ‘sovereign immunity’ that largely shields government agencies from civil suits.

Because ERCOT is empowered by the state to fulfill a public function and is overseen by a state agency -- the Public Utility Commission of Texas -- ERCOT should not be held liable, they argued, saying legal claims against ERCOT should instead be the responsibility of the PUC.