Almost three years since the deadly Texas blackout of 2021, a panel of judges from the First Court of Appeals in Houston has ruled that big power companies cannot be held liable for failure to provide electricity during the crisis. The reason is Texas’ deregulated energy market.
The decision seems likely to protect the companies from lawsuits filed against them after the blackout. It leaves the families of those who died unsure where next to seek justice.
In February of 2021, a massive cold front descended on Texas, bringing days of ice and snow. The weather increased energy demand and reduced supply by freezing up power generators and the state’s natural gas supply chain. This led to a blackout that left millions of Texans without energy for nearly a week.
The state has said almost 250 people died because of the winter storm and blackout, but some analysts call that a serious undercount.
Is there legislation that says otherwise? What should the judges do here?
AFAIK it wouldn’t be legislation, it would be damages paid for some kind of breach of contract or some other contract-related issue, since the city delegated energy management to private companies. I’m sure there may be some contractual relationship with the city as well as the customers, but it’s not clear to me what type of contractual basis for damages this would amount to.
I suppose it could be gross negligence for not taking reasonable measures to prevent that kind of catastrophic failure, but honestly the standard of care would seem hard to establish. Still, a week without power seems excessive even by extreme weather standards.
Not saying this ruling doesn’t suck, just that it seems legally kind of ambiguous.