The Electric Reliability Council of Texas (ERCOT) and several local power companies in the state are facing a massive lawsuit filed by more than 100 insurance companies over damages related to the grid failure that occurred during the February 2021 winter storm.
Filed in Travis County, the lawsuit alleges that ERCOT is responsible for the power failure last year, additionally claiming that the issue was entirely preventable. According to the lawsuit, ERCOT “failed to adequately prepare for the 2020-2021 winter season, and in fact, planned to fail.”
The February 2021 power outage led to more than 500,000 insurance claims and over 200 deaths. It was estimated that insurers were anticipated to pay more than $10 billion for damages related to the outage.