ERCOT has scheduled a pair of live virtual presentations this week to discuss the terms of its proposed settlement with Brazos Electric Power Cooperative that is part of the utility’s bankruptcy case.
The identical presentations will be held Tuesday at 2:30 p.m. (CT) and Wednesday at 10 a.m. ERCOT said because it expects a large number of attendees, it will not answer questions or facilitate a chat feature during the presentations. However, questions can be submitted in advance to MPElectionNotice@ercot.com.
The U.S. Bankruptcy Court for Southern Texas’ chief judge last week conditionally approved Brazos’ disclosure statement on the settlement with ERCOT and its proposed exit plan from Chapter 11 bankruptcy. The decision allows Brazos to begin soliciting votes from creditors and settle its dispute with ERCOT (21-30725). (See related story, Judge Approves Brazos Chapter 11 Exit Plan.)
The decision also allows ERCOT to move forward with an election-notice process for eligible market participants that will conclude on Oct. 21. A hearing has been scheduled before the court in November to consider final approval of the settlement and the exit plan.
Brazos was originally charged $1.89 billion for wholesale power market costs during the February 2021 winter storm that it owed the market. The settlement with ERCOT has reduced that to $1.4 billion.
The Texas grid operator said in a market notice Friday that it has not reached a final agreement on some provisions in the plan and that it expects further modifications as it continues to negotiate with Brazos and other key stakeholders. It said it has been coordinating with the Texas Public Utility Commission and Attorney General’s Office on the proposed settlement and continued negotiations.
ERCOT attached a letter to the notice from PUC Chair Peter Lake, who said Brazos’ reorganization addresses the economic recovery of the grid operator’s bankruptcy claim and “material, noneconomic concerns important to the commission and ERCOT.” That includes the cooperative’s continued existence and management, Lake wrote.
The grid operator said it is developing a webpage where it will post a recording of one of the virtual presentations and other important settlement materials, including answers to submitted questions.
