Electric Reliability Council of Texas Seeks Dismissal of Brazos Electric Power Cooperative’s Complaint Objecting to its $1.8M Proof of Claim

September 16, 2021, Southern District of Texas – Defendant Electric Reliability Council of Texas, Inc. (“ERCOT”) moves to dismiss Debtor Brazos Electric Power Cooperative, Inc.’s complaint objecting to Defendant’s $1,899,152,990.64 proof of claim.

The Debtor Plaintiff alleges that the Court must disallow ERCOT’s claim because ERCOT seeks to collect an improper amount from the Debtor by ignoring or failing to follow the parties’ contract and protocols. According to the Debtor, it was not in default before the petition date, due to a force majeure event. The Debtor also alleges that ERCOT’s charges were avoidable and constructively fraudulent, thereby necessitated a significant reduction in the claim. ERCOT argues that the Debtor’s complaint should be dismissed because it fails to state plausible claim for relief under a standard form market participant agreement between the parties. ERCOT further argues that the Court should abstain from deciding Debtor’s pricing claims under the United States Supreme Court’s  Burford decision

The case is In re Brazos Electric Power Cooperative, Inc., Adversary Proceeding No. 20-03863-DRJ pending in the United States Bankruptcy Court for the Southern District of Texas. The law firm of Eversheds Sutherland LLP is representing the Debtor.

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