Texas Power Company Files for Bankruptcy


Brazos Electric Power Cooperative, headquartered in Waco, Texas, has filed for Chapter 11 bankruptcy protection.


The filing was a result of the February ice storm.


The storm had severely disrupted energy supplies in Texas for days, leading to a dramatic rise in the price of electricity, the company said it had received invoices from the Electric Reliability Council of Texas (ERCOT) which, when combined, amounted to over $2.1 billion.


Brazos said the massive bill forced it to file for bankruptcy protection to shield itself, its member cooperatives, and consumers, from the effect of trying to meet the cost.


The storm caused over 212,000 power outages and killed at least 12 people, primarily due to accidents involving freezing rain and sleet.


Chapter 11 of the United States Bankruptcy Code permits reorganization under the bankruptcy laws of the United States.