Time to read: 4 minutes
Finally, things appear to be coming closer to a decision on the Brazos Electric Power Cooperative bankruptcy filed at the beginning of last year as a result of power costs accrued during the 2021 Winter Storm crisis. Hopefully, there can be some type of power bill cost normalization as their bankruptcy comes to an end. There are expected changes with this deal that could affect Texas power grid customers and you should know what they are. As Texas ever so slowly approaches fall, power switching decisions should be made sooner rather than later before company debts start to accumulate.
Who is Brazos?
Brazos Electric Power Cooperative is located in Waco, Texas, and is an energy generation and transmission cooperative. This means that they are a company that’s owned by its customers who get to vote on who runs the company. Their services extend across 68 counties from the Texas Panhandle to Houston, supply power to more than 1 million customers, and aim at providing the lowest possible cost of reliable power to their customers.
Understanding Brazos’ bankruptcy
Brazos Electric Power Cooperative, Inc. voluntarily petitioned for relief under Chapter 11 of the United States Bankruptcy Code filed on March 1, 2021. This was filed after the Electric Reliability Council of Texas (ERCOT) billed Brazos for more than $1.9 billion of power used over four days during Winter Storm Uri in February of 2021. It includes a charge rate of $9,000 per megawatt an hour for each of those four days. This bankruptcy continues to be costly for Brazos as they try to catch up and pay other outstanding bills associated with the winter storm and this bankruptcy. This could be one of several reasons why energy bill prices have become higher than usual for some Texans.
The proposed deal
With less than two years of being in the Bankruptcy Court of Texas, Brazos and ERCOT engaged in mediation that resulted in a proposed settlement agreement for Brazos’s bankruptcy exit plan. This included having to pay over $1.4 billion in debt, stopping power generation one year from the effective date, having to sell their three power generation plants, and undergo senior management changes. They will also set up a $140 million hardship fund for customers who struggle with paying their power bills. Brazos’ Combined Confirmation and Final Disclosure Statement Hearing will be on Nov. 14, 2022.
How does this affect you, Texans?
As a result of the Waco-based co-op selling its generation power plants, its customers will no longer receive the lowest possible cost of power. Current customer bills should be expected to rise as a result of paying for a transmission-only co-op. Recently, ERCOT adjustments are predicted to increase by 24%, which is roughly $20 for residents that use 860 kWh in one month. Prices also might rise as current customers seek alternative power grid solutions. Brazos customers within the Texas Panhandle to Houston regions should consider looking for other power solutions.
Take power switching into your own hands
While one company tries to settle its debts, Texas residents shouldn’t have to settle on their power options. For affordable power solutions, residents who chose to stay on the grid have the option of going to https://www.texaselectricityratings.com/ to find the lowest rates. It can also take 7-10 days from your last meter read to switch from one company to the next.
Sometimes, the best solution is to take power generation into your own hands. Doing that means switching to solar power to take charge of your own power needs. IES Solar is a trusted solar company that provides residential and commercial solar solutions that are less expensive and more reliable than regular utility companies. IES Texas Solar provides renewable solar powered systems for generating energy, battery storage solutions for stored power, and backup power generators for continuous, uninterrupted power. It’s your needs, your terms, and your energy.
If you are considering switching to solar for your home or business, reach out to us by going to our website, iestxsolar.com, or by giving us a call at (855) 447-6527.
Sources
http://www.brazoselectric.com/web/extranet.aspx?bo=b6portal.wo&fn=HomePage
https://www.munsch.com/Newsroom/Blogs/152911/Brazos-Electric-Bankruptcy-Heads-to-Finish-Line#:~:text=Brazos%20blamed%20its%20bankruptcy%20on,electricity%20buyers%20during%20the%20storm.
https://www.texaselectric ityratings.com/blog/what-the-ercot-brazos-coop-deal-means/
http://www.brazoselectric.com/
https://www.ercot.com/files/docs/2022/09/20/ERCOT%20-%20Brazos%20Proposed%20Settlement%20Presentation.pdfhttps://cbsaustin.com/news/local/austin-energy-ercot-explain-why-electric-bills-continue-to-skyrocket-texas-tribune-festival
