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'We are fighting to protect our customers': CPS Energy files lawsuit against ERCOT

The San Antonio utility announced the suit alongside Mayor Ron Nirenberg Friday.

SAN ANTONIO — CPS Energy filed suit against the Electric Reliability Council of Texas (ERCOT) in Bexar County District Court. They say the suit is to protect its customers from excessive, illegitimate and illegal prices.

“CPS Energy is taking this action to defend its customers. Those who suffered the consequences of ERCOT’s failure must not be victimized by one of the largest illegal transfers of wealth in the history of Texas, too,” said San Antonio Mayor Ron Nirenberg. “Ensuring the fair treatment of customers and preventing them from additional harm by outrageous, excessive charges is essential, and we are fighting to achieve that goal.”

President & CEO of CPS Energy Paula Gold-Williams said, "We are fighting to protect our customers from the financial impacts of the systemic failure of the ERCOT market and the outrageous and unlawful costs associated with that failure.” She continued with, “During a state declared disaster, ERCOT ran up $20 billion in charges for 5 days of energy supply due to its lack of oversight, preparedness, and failure to follow its own protocols."

The Public Utility Commission (PUC) of Texas’ Independent Market Monitor said they found ERCOT made "critical mistakes that resulted in erroneous electricity overcharges." They also said ERCOT exceeded the mandate by "continuing to set high prices long after the load shed."

The release details how CPS Energy is also an energy supplier to ERCOT, "which has failed to pay the community utility what it is owed under its market agreement. The utility is asking the Court to take action to prevent harm to CPS Energy and its customers."

CPS Energy also said they are bringing action against ERCOT for:

  • Breach of contract
  • Negligence
  • Violation of the Texas Constitution

They have also petitioned the Court to reportedly prevent ERCOT from:

  • Charging excessive prices to CPS Energy and its customers
  • Overcharging market participants like CPS Energy and its customers
  • Any effort to wrongfully declare CPS Energy in default

KENS 5 reached out to ERCOT for comment. They said, "We do not have a comment at this time."

Watch the full CPS Energy, City press briefing here:

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