ERCOT can’t be sued over power grid failures during 2021 winter storm, Texas Supreme Court rules (Texas Tribune)

ERCOT can’t be sued over power grid failures during 2021 winter storm, Texas Supreme Court rules – By Emily Foxhall (Texas Tribune) / June 23, 2023

The all-Republican court narrowly found that the nonprofit corporation operating the state’s electrical grid qualifies for sovereign immunity, which protects government entities from lawsuits.

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The Supreme Court of Texas narrowly decided Friday that sovereign immunity, which largely shields government agencies from civil lawsuits, also protects the operator of the Texas electric grid.

The 5-4 opinion will likely free the nonprofit corporation from lawsuits filed by thousands of Texans for deaths, injuries and damages following the deadly 2021 winter storm, unless lawyers find another way forward.

The Electric Reliability Council of Texas, which manages the power supply for most of Texas, qualifies for immunity because it “provides an essential governmental service,” Chief Justice Nathan Hecht wrote in the majority opinion. State law intended for ERCOT to have the power of an “arm of the State government,” Hecht wrote. If anyone is going to hold ERCOT accountable for its actions, Hecht wrote, it should be state regulators or the Legislature, not the courts.

Freezing temperatures gripped the state during the 2021 winter storm, straining the power supply so much that ERCOT called for cutting power to millions of homes and businesses to prevent the grid’s collapse. More than 200 people died. Experts estimated afterward that financial losses totaled between $80 billion and $130 billion, including physical damage and missed economic opportunity.

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