The high court’s decision will impact other active lawsuits seeking billions brought by individuals, small businesses, large energy corporations and insurance companies impacted by the storm.
The Texas Supreme Court hears arguments in a 2018 case. On Monday, attorneys for CPS Energy and a Dallas-based power generator argued to the justices that the state’s grid operator doesn’t have sovereign immunity from civil lawsuits.
Lawyers for ERCOT countered that the grid operator is technically a state agency that’s immune from civil lawsuits and that any such damage claim must be decided by the Texas Public Utility Commission, which certifies and regulates ERCOT’s activities. The losing sides in each matter appealed to the Texas Supreme Court, which agreed to hear both appeals but decided to hold oral arguments together because the legal issues are the same.
“The independent organization has no function other than what the state assigns,” Jefferson argued. “It has no autonomy from the state. It has no private interests. Its only interest is in furthering the public’s interest in a reliable grid. It can’t spend a dollar or incur debt without the state’s permission.But lawyers for CPS Energy and Panda Power argued Texas law is clear about ERCOT’s status and it does not have immunity from litigation.
O’Neill pointed out that the Panda case came before the Texas Supreme Court while the Texas Legislature was in session two years ago, after Winter Storm Uri.
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