Texas court ruling casts uncertainty over 2021 blackout costs

by Naureen S. Malik & Mark Chediak; Bloomberg | Source: Bloomberg | Posted 03/17/2023

Related meeting(s):

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

Appeals court rules regulators exceeded authority on prices. Decision could have far-reaching impacts for power players.

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A Texas appeals court has ruled that regulators overstepped their authority by setting power prices at $9,000-per-megawatt-hour during the 2021 winter storm that caused widespread blackouts and overcharged consumers billions of dollars. The ruling favored power generator Vistra Corp. and could lead to a potential clawback of funds for affected power players in the state.

The court's decision has significant implications for the energy market in Texas, which has already faced billions of dollars in state-backed financing to address the aftermath of the storm. While the exact repercussions of the ruling are still uncertain as the case undergoes further proceedings, it signals a strong disapproval of the Public Utility Commission of Texas' actions during the crisis and may prompt a reassessment of the state's power market regulations and contractual obligations.

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Source Link: https://www.bloomberg.com/news/articles/2023-03-17/texas-court-overturns-power-price-rulings-from-2021-winter-storm?leadSource=uverify%20wall

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Texas court ruling casts uncertainty over 2021 blackout costs

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