CPS Energy Files Lawsuit Against ERCOT Over Prices

CPS Energy announced that it filed suit against the Electric Reliability Council of Texas (ERCOT) in Bexar County District Court in what CPS described as a move, "to protect its customers from excessive, illegitimate and illegal prices."

"CPS Energy is taking this action to defend its customers. Those who suffered the consequences of ERCOT's failure must not be victimized by one of the largest illegal transfers of wealth in the history of Texas, too," said San Antonio Mayor Ron Nirenberg.

CPS stated, "As always, CPS Energy has and will continue to pay all lawful, legitimate charges for electricity. However, CPS Energy is also an energy supplier to ERCOT, which has failed to pay the community utility what it is owed under its market agreement. In today's petition, the utility is asking the Court to take action to prevent harm to CPS Energy and its customers. CPS Energy has brought action against ERCOT, for among other things, breach of contract, negligence, and violation of the Texas Constitution[.]"

CPS has petitioned the Court to prevent ERCOT from:

• "Charging excessive prices to CPS Energy and its customers in violation of the Texas Constitution;"

• "Overcharging market participants like CPS Energy and its customers for the failures of others; and"

• "Any effort to wrongfully declare CPS Energy in default."