Members of bankrupt Brazos Electric question strategy amid ERCOT dispute

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Members of Brazos Electric Power Cooperative Inc. are expressing concerns over the cooperative's bankruptcy strategy following a significant $2 billion energy bill incurred during the Texas winter storm. Tri-County Electric Cooperative, one of Brazos's largest members, has filed objections to Brazos's request for an extension to control the bankruptcy process, arguing that the proposed restructuring would unfairly burden retail and commercial ratepayers. They suggest that Brazos should explore selling some of its assets instead of focusing solely on securitizing the ERCOT claim, which they believe would lead to higher costs for consumers.

Brazos, which filed for Chapter 11 protection in March, contends that it requires more time to determine the final amount of the ERCOT claim before proceeding with a reorganization plan. While some smaller member cooperatives support Brazos's request for additional time, Tri-County and CoServ Electric are advocating for a shorter extension, emphasizing the need for a thorough evaluation of alternative options that would alleviate financial pressure on ratepayers. The ongoing litigation in bankruptcy court continues to complicate the situation as Brazos seeks to navigate its financial challenges.