Texas appeals court says winter storm lawsuits against transmission and distribution utilities can move forward

A three-judge appellate panel in Texas ruled Wednesday that a winter storm lawsuit against transmission and distribution utilities (TDUs) can move forward.

of The judgment was given The 14th Circuit Court of Appeals in Houston, Texas, plans to allow a lawsuit related to the deadly 2021 winter storm to proceed with alleged negligence against defendants CenterPoint Energy, Oncor Electric Delivery, and American Electric Power. .

Those TDUs were responsible for providing power and “record energy demand” during the storm, according to the lawsuit. Thousands of customers have sued companies participating in Texas’ power grid, seeking compensation for power outages during Winter Storm Uri that killed more than 200 people.

The companies previously argued that they were not liable for damages based on state Supreme Court precedent and a “comprehensive regulatory regime that includes TDU’s fees for retail delivery services.”

Ultimately, the commission argued that the companies were negligent in cutting off power after the Electric Reliability Council of Texas declared a Level 3 state of emergency less than an hour later.

The commission said TDUs were not protected from “gross negligence or intentional misconduct.” The ruling outlined the plaintiffs’ specific claims, including the company’s decision to rotate power outages to other areas and shut off power in certain areas during storms. .

“There is no denying this deliberate action and blatant disregard for TDU’s own customers,” said Ann Saucer, an attorney with Nachawati Law Group. told Business Wire. “It was a conscious decision to cut off power to certain areas, and several people lost their lives as a result. These companies had been warned but chose not to take action. Did.”

Mr. Uri shut off power to millions of people in Texas as temperatures plunged below freezing, sparking an ongoing debate over the state’s power grid. Hundreds of deaths were recorded and damages estimated at $300 billion.

The Hill has reached out to the utility company for comment.