Energy bill hits snag in House: Critics foresee more power plants

By Knight Ridder Tribune


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Legislation designed to help the state reduce energy use and promote the use of renewable power sources sailed through the state Senate. But the bill has stalled in the House amid growing concern that it would have the opposite effect: encouraging the construction of more power plants.

After four hours of public hearings, the House Committee on Energy and Energy Efficiency has put off voting on the measure. Rep. Pricey Harrison, a Guilford County Democrat who leads the committee, is planning to bring in independent electric-utility experts to explain the proposal's financial risks to the public.

"I don't think it got the attention and scrutiny it needed in the Senate," Harrison said. "We have not thoughtfully reviewed the (power plant) provisions." The bill would require the state's utilities to derive 12.5 percent of their electricity through energy efficiency programs and from renewable sources.

North Carolina would be the first state in the Southeast to adopt such a requirement. But as it encourages energy alternatives, the bill would also make it easier for utilities to raise electricity rates to pay for the costs of building nuclear and coal-burning power plants.

In a change from current practice, utility customers could star paying years before the plants were built - even if the plants are never completed. Currently, such cost recovery is allowed at the discretion of the state Utilities Commission, but only if a utility declares financial distress - which practically means never.

As a matter of state policy, utility customers pay for the construction and financing of power plants. But if a utility were to abandon a power plant in mid-construction today, many assume that the company would bear significant risk and absorb some, if not all, of the expense. Dan Besse, a Winston-Salem councilman, warned at the public hearing that helping utilities charge the public for risky power plants is "a consumer catastrophe in the making."

The proposal started out as an energy efficiency and renewables bill but grew into a comprehensive energy package containing sweeteners for the utilities and other groups.

It cleared the state Senate in about a week this month after the bill had been negotiated for six months by representatives of utilities, manufacturers and environmentalists. "It's a consensus bill, and we believe it will stand up to scrutiny of the legislative process," Progress Energy spokeswoman Cari Boyce said.

Under the proposal, 12.5 percent of the electricity sold by Progress Energy and Duke Energy would have to come from conservation programs and renewable sources such as solar energy, swine waste and poultry waste by 2021. For municipal utilities and elec ric cooperatives, the requirement would be 10 percent by 2018.

About two dozen states have a renewables and efficiency requirement. The measure is backed by Raleigh-based Progress and Charlotte-based Duke. But some leading environmental groups oppose the bill, fearing it would promote new power plants at the expense of energy alternatives. They worry that as it takes away the utilities commission's discretion on power plant costs, the bill limits how much a utility could spend on energy efficiency and renewables.

It also grants the utilities commission new discretion to modify the efficiency and renewables requirements. Consumers would share the utilities' costs of moving to renewables and efficiency, as the companies expect to lose revenue and invest in new technology.

For a residential customer, the proposal caps the annual cost at $10 a year from 2008 through 2011, to $12 a year from 2012 through 2014 and at $34 a year thereafter.

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European gas prices fall to pre-Ukraine war level

European Gas Prices hit pre-invasion lows as LNG inflows, EU storage gains, and softer oil markets ease the energy crisis, while recession risks, windfall taxes, and ExxonMobil's challenge shape demand and policy.

 

Key Points

European gas prices reflect supply, LNG inflows, storage, and policy, shaping energy costs for households and industry.

✅ Month-ahead hit €76.78/MWh, rebounding to €85.50/MWh.

✅ EU storage 83.2% filled; autumn peak exceeded 95%.

✅ Demand tempered by recession risks; LNG inflows offset Russian cuts.

 

European gas prices have dipped to a level last seen before Russia launched its invasion of Ukraine in February, after warmer weather across the continent eased concerns over shortages and as coal demand dropped across Europe during winter.

The month-ahead European gas future contract dropped as low as €76.78 per megawatt hour on Wednesday, the lowest level in 10 months, amid EU talks on gas price cap strategies that could shape markets, before closing higher at €83.70, according to Refinitiv, a data company.

The invasion roiled global energy markets, serving as a wake-up call to ditch fossil fuels for policymakers, and forced European countries, including industrial powerhouse Germany, to look for alternative suppliers to those funding the Kremlin. Europe had continued to rely on Russian gas even after its 2014 annexation of Crimea and support for separatists in eastern Ukraine.

On Tuesday 83.2% of EU gas storage was filled, data from industry body Gas Infrastructure Europe showed. The EU in May set a target of filling 80% of its gas storage capacity by the start of November to prepare for winter, and weighed emergency electricity measures to curb prices as needed. It hit that target in August, and by mid-November it had peaked at more than 95%.

Gas prices bounced further off the 10-month low on Thursday to reach €85.50 per megawatt hour.

Europe has several months of domestic heating demand ahead, and some industry bosses believe energy shortages could also be a problem next winter, with a worst energy nightmare still possible if supplies tighten. However, traders have also had to weigh the effects of recessions expected in several big European economies, which could dent energy demand.

UK gas prices have also dropped back from their highs earlier this year, and forecasts suggest UK energy bills to drop in April. The day-ahead gas price closed at 155p per therm on Wednesday, compared with 200p/therm at the start of 2022, and more than 500p/therm in August.

Europe’s response to the prospect of gas shortages also included campaigns to reduce energy use – a strategy belatedly adopted by the UK – and windfall taxes on energy companies to help raise revenues for governments, many of which have started expensive subsidies to cushion the impact of high energy prices for households and consumers. Energy companies have enjoyed huge profits at the expense of businesses and households this year, as EU inflation accelerated, but costs remained much the same.

However, the US oil company ExxonMobil on Wednesday launched a legal challenge against EU plans for a windfall tax on oil companies, according to filings by its German and Dutch subsidiaries at the European general court in Luxembourg. ExxonMobil argued that the windfall tax would be “counter-productive” because it said it would result in lower investment in fossil fuel extraction, and that the EU did not have the legal jurisdiction to impose it.

ExxonMobil’s move has prompted anger among European politicians. A message posted on the Twitter account of Paolo Gentiloni, the EU’s commissioner for the economy, on Thursday stated: “Fairness and solidarity, even for corporate giants. #Exxon.”

Oil prices are significantly lower than they were before the start of Russia’s invasion, and only marginally above where they were at the start of 2022. Brent crude oil futures traded at $100 a barrel on 28 February, but were at $81.84 on Thursday.

Oil prices dropped by 1.7% on Thursday. Prices had risen from 12-month lows in early December as traders hoped for increased demand from China after it relaxed its coronavirus restrictions. However, Covid-19 infection numbers are thought to have surged in the country, prompting the US to require travellers from China to show a negative test for the disease and tempering expectations for a rapid increase in oil demand.

 

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Tesla reduces Solar + home battery pricing following California blackouts

Tesla Solar and Powerwall Discount offers a ~10% installation price cut amid PG&E blackouts, helping California homeowners with solar panels, battery storage, and backup power, while supporting renewable energy and resilient Supercharger infrastructure.

 

Key Points

A ~10% installation discount on Tesla solar panels and Powerwall batteries to boost backup power during PG&E blackouts.

✅ ~10% off installation for solar plus Powerwall

✅ Helps during PG&E shutoffs and wildfire mitigation

✅ Supports resilience, backup power, and EV charging

 

Pacific Gas & Electric’s (PG&E) shutoff of electric supply to residents in California’s Bay Area has caught the attention of Tesla and SpaceX CEO Elon Musk, who, while highlighting a huge future for Tesla Energy in coming years, has announced that he would be offering a price reduction of approximately 10% for a solar panel and Tesla Powerwall battery installation. The discount will be available to anyone interested in powering their homes with solar energy, not just the 800,000 affected homes in the Bay Area.

After initially tweeting a link to Tesla’s Solar page on Tesla.com, Musk added that he would be offering a “~10% price reduction” in installation price for solar panels and Powerwall batteries for anyone, as California explores EVs for grid stability during emergencies, including those who have lost power in response to PG&E’s power shutoff. The blackout induced by the California-based power company is a part of an effort to reduce the possibility of wildfires. PG&E lines were the cause of multiple fires in the past, so the company is taking every necessary precaution to reduce the probability of its lines causing another fire in the future.

Tesla Solar recently offered a subscription program that would allow homeowners to lease panels for a fraction of the cost. The service is available to both residential and commercial customers, and costs as little as $45 a month in some states, particularly appealing in California where EV sales top 20% recently. The option to lease solar panels carries no long-term contracts that would tie down customers to a lengthy commitment.

Wildfires have always been an issue in California. Currently, fires are ripping through Los Angeles county, presumably caused by the winds of the Autumn season. The effort to reduce the environmental impact of forest fires in the state has been increasingly more prevalent over the years. But 2019 is a different story, underscoring that California may need a much bigger grid to support electrification, considering the previous year was noted as the deadliest wildfire season in California’s history. Over 8,500 fires destroyed over 1.89 million acres of land burned due to fires, causing the California Department of Forestry and Fire Protection to spend $432 million through the end of August 2018, according to the Associated Press.

In reaction to the news of the power shutoffs, Tesla added words of advice to vehicle affected owners on its app. The company posted a message encouraging drivers to keep their vehicles charged to 100% and highlighted that EVs can power homes for up to three days during outages, in order to prevent interruptions in driving. Those who are driving ICE vehicles are feeling the effects of the blackout too, as gas stations in California’s affected region have begun to shut down. Musk also tweeted that he would be installing Tesla Powerpacks at all Supercharger stations in the affected region, a move that can help ease strain on state power grids during outages, in order to allow owners to charge their vehicles.

In addition to the efforts that Tesla has already put into place, Musk plans to transition all Supercharger stations to solar power as soon as possible. But the sunny climate of California offers residents a great opportunity to move from gas and electric, even as some warn of a looming green car wreck in the state, to a more eco-friendly, sun-powered option. Tesla solar will completely eliminate power blackouts that are used to control wildfires in California.

 

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TTC Bans Lithium-Ion-Powered E-Bikes and Scooters During Winter Months for Safety

TTC Winter E-Bike and E-Scooter Ban addresses lithium-ion battery safety, mitigating fire risk on Toronto public transit during cold weather across buses, subways, and streetcars, while balancing micro-mobility access, infrastructure gaps, and evolving regulations.

 

Key Points

A seasonal TTC policy limiting lithium-ion e-bikes and scooters on transit in winter to cut battery fire risk.

✅ Targets lithium-ion fire hazards in confined transit spaces

✅ Applies Nov-Mar across buses, subways, and streetcars

✅ Sparks debate on equity, accessibility, and policy alternatives

 

The Toronto Transit Commission (TTC) Board recently voted to implement a ban on lithium-ion-powered electric bikes (e-bikes) and electric scooters during the winter months, a decision that reflects growing safety concerns. This new policy has generated significant debate within the city, particularly regarding the role of these transportation modes in the lives of Torontonians, and the potential risks posed by the technology during cold weather.

A Growing Safety Concern

The move to ban lithium-ion-powered e-bikes and scooters from TTC services during the winter months stems from increasing safety concerns related to battery fires. Lithium-ion batteries, commonly used in e-bikes and scooters, are known to pose a fire risk, especially in colder temperatures, and as systems like Metro Vancouver's battery-electric buses expand, robust safety practices are paramount. In recent years, Toronto has experienced several high-profile incidents involving fires caused by these batteries. In some cases, these fires have occurred on TTC property, including on buses and subway cars, raising alarm among transit officials.

The TTC Board's decision was largely driven by the fear that the cold temperatures during winter months could make lithium-ion batteries more prone to malfunction, leading to potential fires. These batteries are particularly vulnerable to damage when exposed to low temperatures, which can cause them to overheat or fail during charging or use. Since public transit systems are densely populated and rely on close quarters, the risk of a battery fire in a confined space such as a bus or subway is considered too high.

The New Ban

The new rule, which is expected to take effect in the coming months, will prohibit e-bikes and scooters powered by lithium-ion batteries from being brought onto TTC vehicles, including buses, streetcars, and subway trains, even as the agency rolls out battery electric buses across its fleet, during the winter months. While the TTC had previously allowed passengers to bring these devices on board, it had issued warnings regarding their safety. The policy change reflects a more cautious approach to mitigating risk in light of growing concerns.

The winter months, typically from November to March, are when these batteries are at their most vulnerable. In addition to environmental factors, the challenges posed by winter weather—such as snow, ice, and the damp conditions—can exacerbate the potential for damage to these devices. The TTC Board hopes the new ban will prevent further incidents and keep transit riders safe.

Pushback and Debate

Not everyone agrees with the TTC Board's decision. Some residents and advocacy groups have expressed concern that this ban unfairly targets individuals who rely on e-bikes and scooters as an affordable and sustainable mode of transportation, while international examples like Paris's e-scooter vote illustrate how contentious rental devices can be elsewhere, adding fuel to the debate. E-bikes, in particular, have become a popular choice among commuters who want an eco-friendly alternative to driving, especially in a city like Toronto, where traffic congestion can be severe.

Advocates argue that instead of an outright ban, the TTC should invest in safer infrastructure, such as designated storage areas for e-bikes and scooters, or offer guidelines on how to safely store and transport these devices during winter, and, in assessing climate impacts, consider Canada's electricity mix alongside local safety measures. They also point out that other forms of electric transportation, such as electric wheelchairs and mobility scooters, are not subject to the same restrictions, raising questions about the fairness of the new policy.

In response to these concerns, the TTC has assured the public that it remains committed to finding alternative solutions that balance safety with accessibility. Transit officials have stated that they will continue to monitor the situation and consider adjustments to the policy if necessary.

Broader Implications for Transportation in Toronto

The TTC’s decision to ban lithium-ion-powered e-bikes and scooters is part of a broader conversation about the future of transportation in urban centers like Toronto. The rise of electric micro-mobility devices has been seen as a step toward reducing carbon emissions and addressing the city’s growing congestion issues, aligning with Canada's EV goals that push for widespread adoption. However, as more people turn to e-bikes and scooters for daily commuting, concerns about safety and infrastructure have become more pronounced.

The city of Toronto has yet to roll out comprehensive regulations for electric scooters and bikes, and this issue is further complicated by the ongoing push for sustainable urban mobility and pilots like driverless electric shuttles that test new models. While transit authorities grapple with safety risks, the public is increasingly looking for ways to integrate these devices into a broader, more holistic transportation system that prioritizes both convenience and safety.

The TTC’s decision to ban lithium-ion-powered e-bikes and scooters during the winter months is a necessary step to address growing safety concerns in Toronto's public transit system. Although the decision has been met with some resistance, it highlights the ongoing challenges in managing the growing use of electric transportation in urban environments, where initiatives like TTC's electric bus fleet offer lessons on scaling safely. With winter weather exacerbating the risks associated with lithium-ion batteries, the policy seeks to reduce the chances of fires and ensure the safety of all transit users. As the city moves forward, it will need to find ways to balance innovation with public safety to create a more sustainable and safe urban transportation network.

 

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Power Outage Disrupts Travel at BWI Airport

BWI Power Outage caused flight delays, cancellations, and diversions after a downed power line near Baltimore/Washington International. BGE crews responded as terminal operations, security screening, and boarding slowed, exposing infrastructure gaps and backup power needs.

 

Key Points

A downed power line disrupted BWI, causing delays, diversions, and slowed operations after power was restored by noon.

✅ Downed power line near airport spurred terminal-wide disruptions

✅ 150+ delays, dozens of cancellations; diversions to nearby airports

✅ BGE response, backup power gaps highlight infrastructure resilience

 

On the morning of March 3, 2025, a major power outage at Baltimore/Washington International Thurgood Marshall Airport (BWI) caused significant disruptions to air travel, much like the London morning outage that upended routines, affecting both departing and incoming flights. The outage, which began around 7:40 a.m., was caused by a downed power line near the airport, according to officials from Baltimore Gas and Electric Company. Although power was restored by noon, the effects were felt for several hours, resulting in flight delays, diversions, and a temporary disruption to airport operations.

Flight Disruptions and Delays

The outage severely impacted operations at BWI, with more than 150 flights delayed and dozens more canceled. The airport, which serves as a major hub for both domestic and international travel, was thrown into chaos, similar to the Atlanta airport blackout that snarled operations, as power outages affected various critical areas, including parts of the main terminal and an adjacent parking garage. The downed power line created a ripple effect throughout the airport’s operations, delaying not only the check-in and security screening processes but also the boarding of flights. In addition to the delays, some inbound flights had to be diverted to nearby airports, further complicating an already strained travel schedule.

With the disruption affecting vital functions of the airport, passengers were advised to stay in close contact with their airlines for updated flight statuses and to prepare for longer-than-usual wait times.

Impact on Passengers

As power began to return to different parts of the terminal, airport officials reported that airlines were improvising solutions to continue the deplaning process, such as using air stairs to help passengers exit planes that were grounded due to the power outage, a reminder of how transit networks can stall during grid failures, as seen with the London Underground outage that frustrated commuters. This created further delays for passengers attempting to leave the airport or transfer to connecting flights.

Many passengers, who were left stranded in the terminal, faced long lines at ticket counters, security checkpoints, and concessions as the airport worked to recover from the loss of power, a situation mirrored during the North Seattle outage that affected thousands. The situation was compounded by the fact that while power was restored by midday, the airport still struggled to return to full operational capacity, creating significant inconvenience for travelers.

Power Restoration and Continued Delays

By around noon, officials confirmed that power had been fully restored across the main terminal. However, the full return to normalcy was far from immediate. Airport staff continued to work on clearing backlogs and assisting passengers, but the effects of the outage lingered throughout the day. Passengers were warned to expect continued delays at ticket counters, security lines, and concessions as the airport caught up with the disruption caused by the morning’s power outage.

For many travelers, the experience was a reminder of how dependent airports and airlines are on uninterrupted power to function smoothly. The disruption to BWI serves as a case study in the potential vulnerabilities of critical infrastructure that is not immune to the effects of power failure, including weather-driven events like the windstorm outages that can sever lines. Moreover, it highlights the difficulties of recovering from such incidents while managing the expectations of a large number of stranded passengers.

Investigations into the Cause of the Outage

As of the latest reports, Baltimore Gas and Electric Company (BGE) crews were still investigating the cause of the power line failure, including weather-related factors seen when strong winds in the Miami Valley knocked out power. While no definitive cause had been provided by early afternoon, BGE spokesperson Stephanie Weaver confirmed that the company was working diligently to restore service. She noted that the downed line had caused widespread disruptions to electrical service in the area, which were exacerbated by the airport’s significant reliance on a stable power supply.

BWI officials remained in close contact with BGE to monitor the situation and ensure that necessary precautions were taken to prevent further disruptions. With power largely restored by midday, focus turned to the logistical challenges of clearing the resulting delays and assisting passengers in resuming their travel plans.

Response from the Airport and Airlines

In response to the power outage, BWI officials encouraged travelers to remain patient, a familiar message during prolonged events like Houston's extended outage in recent months, and continue checking their flight statuses. Although flight tracking websites and social media posts provided timely updates, passengers were urged to expect long delays throughout the day as the airport struggled to return to full capacity.

Airlines, for their part, worked swiftly to accommodate affected passengers, although the situation created a ripple effect across the airport's operations. With delayed flights and diverted planes, air traffic control and ground crews had to adjust flight schedules accordingly, resulting in even more congestion at the airport. Airlines coordinated with the airport to prioritize urgent cases, and some flights were re-routed to other nearby airports to mitigate the strain on the terminal.

Long-Term Effects on Airport Infrastructure

This incident underscores the importance of maintaining resilient infrastructure at key transportation hubs like BWI. Airports are vital nodes in the air travel network, and any disruption, whether from power failure or other factors, can have far-reaching consequences on both domestic and international travel. Experts suggest that BWI and other major airports should consider implementing backup power systems and other safeguards to ensure that they can continue to function smoothly during unforeseen disruptions.

While BWI officials were able to resolve the situation relatively quickly, the power outage left many passengers frustrated and inconvenienced. This incident serves as a reminder of the need for airports and utilities to have robust contingency plans in place to handle emergencies and prevent delays from spiraling into more significant disruptions.

The power outage at Baltimore/Washington International Airport highlights the vulnerability of critical infrastructure to power failures and the cascading effects such disruptions can have on travel. Although power was restored by noon, the delays, diversions, and logistical challenges faced by passengers underscore the need for greater resilience in airport operations. With travel back on track, BWI and other airports will likely revisit their contingency plans to ensure that they are better prepared for future incidents that could affect air travel.

 

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World Bank Backs India's Low-Carbon Transition with $1.5 Billion

World Bank Financing for India's Low-Carbon Transition accelerates clean energy deployment, renewable energy capacity, and energy efficiency, channeling climate finance into solar, wind, grid upgrades, and green jobs for sustainable development and climate resilience.

 

Key Points

$1.5B World Bank support to scale renewables, boost energy efficiency, and drive India's low-carbon growth.

✅ Funds solar, wind, and grid modernization projects

✅ Backs industrial and building energy-efficiency upgrades

✅ Catalyzes green jobs, innovation, and climate resilience

 

In a significant move towards bolstering India's efforts towards a low-carbon future, the World Bank has approved an additional $1.5 billion in financing. This article explores how this funding aims to support India's transition to cleaner energy sources, informed by global moves toward clean and universal electricity standards and market access, the projects it will fund, and the broader implications for sustainable development.

Commitment to Low-Carbon Transition

India, as one of the world's largest economies, faces substantial challenges in balancing economic growth with environmental sustainability. The country has committed to reducing its carbon footprint and enhancing energy efficiency through various initiatives and partnerships. The World Bank's financing represents a crucial step towards achieving these goals within the context of the global energy transition now underway, providing essential resources to accelerate India's transition towards a low-carbon economy.

Projects Supported by World Bank Funding

The $1.5 billion financing package will support several key projects aimed at advancing India's renewable energy sector and promoting sustainable development practices. These projects may include the expansion of solar and wind energy capacity, enhancing energy efficiency in industries and buildings, improving waste management systems, and fostering innovation in clean technologies.

Impact on Renewable Energy Sector

India's renewable energy sector stands to benefit significantly from the World Bank's financial support. With investments in solar and wind power projects, and broader shifts toward carbon-free electricity across utilities, the country can increase its renewable energy capacity, reduce dependency on fossil fuels, and mitigate greenhouse gas emissions. This expansion not only enhances energy security but also creates opportunities for job creation and economic growth in the clean energy sector.

Enhancing Energy Efficiency

In addition to renewable energy projects, the financing will likely focus on enhancing energy efficiency across various sectors. Improving energy efficiency in industries, transportation, and residential buildings is critical to reducing overall energy consumption, and analyses of decarbonizing Canada's electricity grid highlight how efficiency supports lower carbon emissions and progress toward sustainable development goals. The World Bank's support in this area can facilitate technological advancements and policy reforms that promote energy conservation practices.

Promoting Sustainable Development

The World Bank's financing is aligned with India's broader goals of promoting sustainable development and addressing climate change impacts. By investing in clean energy infrastructure and promoting environmentally sound practices, and amid momentum from the U.S. climate deal that shapes investment expectations, the funding contributes to enhancing resilience to climate risks, improving air quality, and fostering inclusive economic growth that benefits all segments of society.

Collaboration and Partnership

The approval of $1.5 billion in financing underscores the importance of international collaboration and partnership in advancing global climate goals, drawing lessons from China's path to carbon neutrality where relevant. The World Bank's engagement with India demonstrates a commitment to supporting developing countries in their efforts to transition towards sustainable development pathways and build resilience against climate change impacts.

Challenges and Opportunities

Despite the positive impact of the World Bank's financing, India faces challenges such as regulatory barriers, funding constraints, and technological limitations in scaling up renewable energy and energy efficiency initiatives, as well as evolving investor sentiment amid U.S. oil policy shifts that affect energy strategy. Addressing these challenges requires coordinated efforts from government agencies, private sector stakeholders, and international partners to overcome barriers and maximize the impact of investments in sustainable development.

Conclusion

The World Bank's approval of $1.5 billion in financing to support India's low-carbon transition marks a significant milestone in global efforts to combat climate change and promote sustainable development. By investing in renewable energy, enhancing energy efficiency, and fostering innovation, the funding contributes to building a cleaner, more resilient future for India and sets a precedent for international cooperation in addressing pressing environmental challenges worldwide.

 

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Judge: Texas Power Plants Exempt from Providing Electricity in Emergencies

Texas Blackout Liability Ruling clarifies appellate court findings in Houston, citing deregulated energy markets, ERCOT immunity, wholesale generators, retail providers, and 2021 winter storm lawsuits over grid failures and wrongful deaths.

 

Key Points

Houston judges held wholesale generators owe no duty to retail customers, limiting liability for 2021 blackout lawsuits.

✅ Court cites deregulated market and lack of privity to consumers

✅ Ruling shields generators from 2021 winter storm civil suits

✅ Plaintiffs plan appeals; legislature may address liability

 

Nearly three years after the devastating Texas blackout of 2021, a panel of judges from the First Court of Appeals in Houston has determined that major power companies cannot be held accountable for their failure to deliver electricity during the power grid crisis that unfolded, citing Texas' deregulated energy market as the reason.

This ruling appears likely to shield these companies from lawsuits that were filed against them in the aftermath of the blackout, leaving the families of those affected uncertain about where to seek justice.

In February 2021, a severe cold front swept over Texas, bringing extended periods of ice and snow. The extreme weather conditions increased energy demand while simultaneously reducing supply by causing power generators and the state's natural gas supply chain to freeze. This led to a blackout that left millions of Texans without power and water for nearly a week.

The state officially reported that almost 250 people lost their lives during the winter storm and subsequent blackout, although some analysts argue that this is a significant undercount and warn of blackout risks across the U.S. during severe heat as well.

In the wake of the storm, Texans affected by the energy system's failure began filing lawsuits, and lawmakers proposed a market bailout as political debate intensified. Some of these legal actions were directed against power generators whose plants either ceased to function during the storm or ran out of fuel for electricity generation.

After several years of legal proceedings, a three-judge panel was convened to evaluate the merits of these lawsuits.

This week, Chief Justice Terry Adams issued a unanimous opinion on behalf of the panel, stating, "Texas does not currently recognize a legal duty owed by wholesale power generators to retail customers to provide continuous electricity to the electric grid, and ultimately to the retail customers."

The opinion further clarified that major power generators "are now statutorily precluded by the legislature from having any direct relationship with retail customers of electricity."

This separation of power generation from transmission and retail electric sales in many parts of Texas resulted from energy market deregulation in the early 2000s, with the goal of reducing energy costs, and prompted electricity market reforms aimed at avoiding future blackouts.

Under the previous system, power companies were "vertically integrated," controlling generators, transmission lines, and selling the energy they produced directly to regional customers. However, in deregulated areas of Texas, competition was introduced, creating competing energy-generating companies and retail electric providers that purchase power wholesale and then sell it to residential consumers; meanwhile, electric cooperatives in other parts of the state remained member-owned providers.

Tré Fischer, a partner at the Jackson Walker law firm representing the power companies, explained, "One consequence of that was, because of the unbundling and the separation, you also don't have the same duties and obligations [to consumers]. The structure just doesn't allow for that direct relationship and correspondingly a direct obligation to continually supply the electricity even if there's a natural disaster or catastrophic event."

In the opinion, Justice Adams noted that when designing the Texas energy market, amid renewed interest in ways to improve electricity reliability across the grid, state lawmakers "could have codified the retail customers' asserted duty of continuous electricity on the part of wholesale power generators into law."

The recent ruling applies to five representative cases chosen by the panel out of hundreds filed after the blackout. Due to this decision, it is improbable that any of the lawsuits against power companies will succeed, according to the court's interpretation.

However, plaintiffs' attorneys have indicated their intention to appeal. They may request a review of the panel's opinion by the entire First Court of Appeals or appeal directly to the state supreme court.

The state Supreme Court had previously ruled that the Electric Reliability Council of Texas (ERCOT), the state's power grid operator, enjoys sovereign immunity and cannot be sued over the blackout.

This latest opinion raises the question of who, if anyone, can be held responsible for deaths and losses resulting from the blackout, a question left unaddressed by the court. Fischer commented, "If anything [the judges] were saying that is a question for the Texas legislature."

 

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