Over 100 insurers sue Texas electric authority, utilities over 2021 winter storm damage

The Electric Reliability Council of Texas (ERCOT) and a number of other native energy firms within the state are dealing with a large lawsuit filed by greater than 100 insurance coverage firms over damages associated to the grid failure that occurred in the course of the February 2021 winter storm.

Filed in Travis County, the lawsuit alleges that ERCOT is answerable for the ability failure final 12 months, moreover claiming that the problem was solely 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 energy outage led to greater than 500,000 insurance coverage claims and over 200 deaths. It was estimated that insurers had been anticipated to pay greater than $10 billion for damages associated to the outage.

“The point of this lawsuit is to recoup those costs,” Insurance Council of Texas (ICT) director of communications and public affairs Rich Johnson instructed FOX4.

ICT just isn’t concerned with the lawsuit.

Johnson additionally defined that whereas such a lawsuit in opposition to utility firms is unusual in Texas, it has been completed in different states.

Read extra: Four insurers file lawsuit in opposition to energy firm for negligence

“I know, in California, there have been a couple of lawsuits that have actually been settled with insurance companies and their power companies due to wildfires in 2017, 2018,” the communications director mentioned. “There were some massive wildfires where it was discovered that lack of maintenance caused many a couple of the wildfires.”

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