The Supreme Court of Texas has ruled in a split decision that the operator of the Texas power grid is shielded from civil lawsuits related to 2019’s Winter Storm Uri. 

Power Outages

In a 5-4 opinion on Friday (June 23), the court found that sovereign immunity, which shields government agencies from most civil lawsuits, also protects the nonprofit Electric Reliability Council of Texas (ERCOT). 

Although it is a nonprofit, ERCOT qualifies for immunity as it “provides an essential governmental service,” Chief Justice Nathan Hecht wrote for the majority. ERCOT under Texas law was intended to serve as an “arm of the state government.” The grid operator may be held accountable, but oversight rests with state regulators and the Texas legislature, he wrote.

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