Texas Electric Co-op Files For Bankruptcy, Received $2.1 Billion In Invoices From ERCOT

Brazos Electric Power Cooperative, Inc. filed a voluntary Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for Southern District of Texas (Houston)

Estimated liabilities were $1 billion to $10 billion

The filing listed ERCOT's disputed unsecured claim as $1.8 billion. Brazos was presented with invoices from ERCOT amounting to over $2.1 billion after the recent weather event

"The Black Swan Winter Event caused ERCOT wholesale market to incur charges of $55 billion over a seven-day period, an amount equal to what it ordinarily incurs over four years. Notwithstanding Brazos Electric's efforts to leverage low prices available in ERCOT through various markets, including real-time energy market and the Day-Ahead Market, Brazos' share of those charges are estimated at $2.1 billion for the seven-day Black Swan Winter Event, whereas Brazos Electric's total power cost to its Co-Op Members in 2020 was $774 million," Brazos's Executive Vice President stated in a filing accompanying the petition

Brazos also reported collateral calls from ERCOT of up to $1.6 billion

In a filing accompanying the petition, Brazos's Executive Vice President stated that Brazos Electric responded to this demand for payment with a Force Majeure Event letter, and informed ERCOT that it was abating payment pending resolution of the Force Majeure Event.