The deep freeze that knocked out a lot of the Texas grid has claimed a key energy supplier as considered one of its first monetary victims.
Brazos Electric Power Cooperative, which serves greater than 1.5 million prospects within the central a part of the state, has filed for Chapter 11 chapter safety. The February winter storm prompted prolonged sub-zero or no less than under freezing temperatures in a lot of state, resulting in increased demand, energy technology shutdowns and cargo shedding.
Under the state’s deregulated, aggressive market construction, charges rocketed upward with the mix of traditionally excessive demand and constricted provide. Prior to the storm impression, Brazos was a A-rated monetary entity.
“As a results of the catastrophic failures because of the storm, Brazos Electric was introduced with excessively excessive invoices by ERCOT (system operator for the Texas grid) for collateral and for purported price of electrical service, fee of which was required inside days,” the press launch reads. “As a cooperative whose prices are handed by to its members, and that are finally borne by Texas retail shoppers served by its Member cooperatives, Brazos Electric decided that it can not and won’t foist this catastrophic monetary occasion on its members and people shoppers.”
Under Chapter 11 firms can proceed to function whereas restructuring their debt and financing. During this era, Brazos Electric will proceed to supply dependable electrical service and supporting communities within the wake of the winter storm.
“Let me emphasize that this motion by Brazos Electric was essential to guard its Member cooperatives and their greater than 1.5 million retail members from unaffordable electrical payments as we proceed to supply electrical service all through the court-supervised course of,” mentioned Clifton Karnei, Executive Vice President and General Manager of Brazos Electric. “We will prioritize what issues most to our Member cooperatives and their retail members as we, they usually, work to return to normalcy. We count on this court-supervised course of will present us with the protections and mechanism to guard and protect our belongings and operations, and fulfill obligations to our collectors.”
The Chapter 11 petition for chapter safety was filed in Texas federal court docket.
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Brazos Electric Power Cooperative owns and operates technology and transmission belongings. The service territory extends throughout 68 Texas counties from the Texas Panhandle to Houston.
Member-owner cooperatives together with Bartlett Electric Cooperative, Comanche Electric Cooperative Association, PenTex Energy, CoServ Electric, Fort Belknap Electric Cooperative, Hamilton County Electric Cooperative Association, Heart of Texas Electric Cooperative, HILCO Electric Cooperative, J-A-C Electric Cooperative, Mid-South Electric Cooperative, Navarro County Electric Cooperative, Navasota Valley Electric Cooperative, South Plains Electric Cooperative, Tri-County Electric Co-Op, United Cooperative Services and Wise Electric Cooperative.
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