A subsidiary of Koch Industries Inc sued a Texas natural gas utility on Friday in San Antonio federal court, accusing it of failing to pay $21 million for natural gas it received from the company during Texas' severe February 2021 cold spell.
Texas' utilities off guard, killed more than 100 people and left 4.5 million without power. Demand for heat pushed wholesale power costs to 400 times the usual amount and propelled natural gas prices to record highs, forcing utilities and consumers to pay exorbitant bills.
Kansas-based Koch Energy Services sued Grey Forest Utilities, which serves customers in the San Antonio area, to seek full payment of a $23 million gas delivery invoice for which it says it was only paid about $1.8 million so far.Daniel Lanfear, an attorney representing Grey Forest Utilities, said the company "will vigorously defend the suit, and a counterclaim against Koch will be considered given what appear to be serious billing errors and overcharges.
The utility is owned by the city of Grey Forest, a suburb of San Antonio. It has taken out an 8-year, $22 million bond to secure what may be owed to Koch Energy Services, it says on its website. It normally pays about $540,000 for its February gas purchase from Koch Energy Services, it says. Grey Forest Utilities has "disputed" the bill and says it is seeking a mediated or litigated resolution. It will refund its ratepayers for an additional monthly fee it currently charges them to repay the bond if the matter is resolved in its favor, it adds.says that the utility "has refused to respond to Koch Energy's request to discuss the issue further."The case is Koch Energy Services, LLC v. Grey Forest Utilities, U.S.
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