(SAN ANTONIO) – May 26, 2021 – CPS Energy announced today that it was successful in defeating two key actions brought by the Electric Reliability Council of Texas (ERCOT) in CPS Energy’s case against the state electric grid operator.
First, CPS Energy was successful in defeating ERCOT’s request to change the venue of the case. ERCOT has asked the Court to move the case against ERCOT to Travis County, where ERCOT is headquartered. However, the Court ruled that the case will be heard in a Bexar County Court in San Antonio.
Second, CPS Energy successfully defeated ERCOT’s attempt to have the Court claim dismissed on the basis that CPS Energy did not have a valid legal basis for the case to be heard in a Texas Court. ERCOT has asked the Court to dismiss the case and allow the proceedings to take place before the Public Utility Commission of Texas because ERCOT asserted it has sovereign immunity and thus a court could not rule on the matter. The Court’s ruling confirms that CPS Energy has legitimate legal grounds for suing in a Bexar County Court on the grounds that ERCOT committed serious violations of Texas Law, Texas statutes, contractual obligations and the Texas State Constitution.
“Judge Casseb’s ruling is an important step in San Antonio’s fight to protect our community from illegitimate charges and profiteering during Winter Storm Uri,” said San Antonio Mayor Ron Nirenberg. “Tuesday’s ruling underscores the strength of CPS Energy’s case against ERCOT, and I look forward to the people of San Antonio having an opportunity to hold ERCOT accountable for its errors during and after the storm.”
“We are pleased that Judge Casseb gave CPS Energy the opportunity to present our case against ERCOT to the residents of Greater San Antonio. Like most Texans, more than one million CPS Energy customers have been unfairly impacted by ERCOT’s errors, negligence and gross negligence during Winter Storm Uri. What ERCOT did was wrong, and it continues to refuse to correct its own acknowledged errors, including roughly $16 billion in illegitimate charges. CPS Energy looks forward to continuing to fight for our Greater San Antonio customers and Texans across the state,” said Paula Gold-Williams, President & CEO of CPS Energy.
These developments come in the wake of CPS Energy successfully obtaining a temporary restraining order against ERCOT to prevent it from adjusting, extending, or otherwise affecting CPS Energy’s credit in preparation for passing on additional charges until the Court conducts further hearings on the matter.
CPS Energy will continue to provide updates on the case as appropriate.
About CPS Energy
Established in 1860, CPS Energy is the nation’s largest public power, natural gas, and electric company, providing safe, reliable, and competitively-priced service to more than 884,811 electric and 366,709 natural gas customers in San Antonio and portions of seven adjoining counties. Our customers’ combined energy bills rank among the lowest of the nation’s 20 largest cities – while generating $8 billion in revenue for the City of San Antonio for more than seven decades. As a trusted and strong community partner, we continuously focus on job creation, economic development, and educational investment. True to our People First philosophy, we are powered by our skilled workforce, whose commitment to the community is demonstrated through our employees’ volunteerism in giving back to our city and programs aimed at bringing value to our customers. CPS Energy is among the top public power wind energy buyers in the nation and number one in Texas for solar generation.