TX Supreme Court: No Power To Decide If ERCOT Can Be Sued


The Texas Supreme Court does not believe it has the power to decide if Texas’ electric grid operator can be sued. Justices ruled 5-4 Friday morning the Texas Constitution bans them from issuing advisory opinions.

Dissenting judges say they’re not sure why the majority believes it’s barred from issuing an opinion. The Electric Reliability Council of Texas was sued in 2016 by Panda Power Funds over claims it misled the company into building several power plants. ERCOT said it had sovereign immunity from lawsuits while Panda disagreed.

A second lawsuit involving the parties is also pending in the court of appeals. ERCOT also faces multiple lawsuits over last month’s weeklong power outages following two winter storms.

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