Electric Reliability Council Of Texas (ERCOT) Ruling Dims Energy Prospects

In February 2021, the Lone Star State’s standalone energy grid buckled under the pressure of unprecedented blizzards. The deregulated Electric Reliability Council of Texas (ERCOT) proved unequal to distributing energy under extreme pressure, resulting in widespread blackouts and wholesale electricity prices going from $25 per megawatt-hour (MWh) to $9,000 per MWh. In June 2023, the Texas Supreme Court revived memories of the storm and courted controversy when it overturned previous rulings and ruled that ERCOT was entitled to the sovereign immunity enjoyed by government actors and thus could not be sued for damages.

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