TEMPLE, Texas — Texas' largest and oldest electric power cooperative, Brazos Electric Power Cooperative Inc., filed for bankruptcy in Houston Monday after receiving an "excessively high invoice" following the historic winter storm that left millions without power in the Lone Star State.
The Waco-based company said it "had no choice" but to file for Chapter 11 protection after receiving a $2.1-billion bill from the state's grid operator, Electric Reliability Council (ERCOT), over a seven-day period during Winter Storm Uri, according to a news release from the company.
ERCOT incurred charges of $55 billion from providers throughout the state -- a number many executives say they plan to dispute.
"Brazos Electric determined that it cannot and will not foist this catastrophic financial event on its members and those consumers," the news release said.
The company serves 1.5 million Texans through 16 distribution member cooperatives including Brazos Electric - Waco. Prior to the storm, Brazos Electric said it was "a financially robust, stable company with a clear vision for its future and a strong 'A' to 'A+' credit rating," according to the release.
However, the storm left more than 4 million Texans without power and water for days, causing providers across the state -- including Brazos' -- to buy replacement power at high rates from ERCOT.
In a separate release, Brazos Electric said the price for wholesale electricity was set to a max price of $9,000 per megawatt hour for over four consecutive days. ERCOT also had other fees totally more than $25,000 per megawatt hour, NPR added.
"The consequences of these prices were devastating," Brazos Electric said in its court filing.
The company listed its assets and liabilities between $1 billion and $10 billion, according to the court filing.