Texas court rules PUC price-setting during Winter Storm Uri unlawful

by Mark Curriden, The Texas Lawbook; in Houston Chronicle | Source: Houston Chronicle | Posted 03/17/2023

Related meeting(s):

04/27/22 - HEARINGS - Luminant Energy Company LLC, Appellant v. Public Utility Commission of Texas, Appellee

Emergency rules that increased the price of electricity to $9,000/MWh during Winter Storm Uri were “invalid” a state appeals court ruled.

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In response to Winter Storm Uri, the Texas Public Utility Commission implemented emergency rules that drastically increased the wholesale price of electricity to $9,000 per megawatt-hour, a move that has now been deemed "invalid" by a state appeals court. The court's ruling stated that the PUC board's actions were unlawful and allowed for a 650 percent price increase over five days, impacting companies that had to purchase electricity at these inflated rates.

Legal analysts anticipate a potential multibillion-dollar outcome for companies such as Luminant Energy and Pattern Energy, amongst others, if the decision is upheld, as they may be entitled to refunds on overcharged electricity purchases. The ruling's impact on retail electric consumers remains uncertain, with the possibility of reimbursements or potential costs falling on taxpayers. Both sides are likely to appeal to the Texas Supreme Court, while the court criticized the PUC's excessive impact on competition and deviation from state law in its decision-making process.

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Source Link: https://www.houstonchronicle.com/business/energy/article/puc-ercot-winter-storm-electricity-rates-invalid-17845725.php#photo-23433852

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Texas court rules PUC price-setting during Winter Storm Uri unlawful

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