Workers clear snow from a parking lot in Midland, Texas, U.S, on Monday, Feb. 15, 2021. Blackouts triggered by frigid weather have spread to more than four million homes and businesses across the central U.S. and extended into Mexico in a deepening energy crisis that's already crippled the Texas power grid. Photo: Matthew Busch/Bloomberg Workers clear snow from a parking lot in Midland, Texas, U.S, on Monday, Feb. 15, 2021.  Photo: Matthew Busch/Bloomberg

The Texas utility responsible for shutting off power to millions of Texas residents last week during a record winter storm now faces at least two lawsuits claiming negligence in its failure to prepare for the state's power needs. The lawsuits both seek punitive damages against the Austin-based Electric Reliability Council of Texas Inc., or ERCOT, which operates 90 percent of the state's power grid. They claim the utility did not prepare residents for possible rolling blackouts and failed to winterize electrical equipment.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Amanda Bronstad

Amanda Bronstad is the ALM staff reporter covering class actions and mass torts nationwide. She writes the email dispatch Law.com Class Actions: Critical Mass. She is based in Los Angeles.