Supreme Court hears whether utilities owe common-law duty over Winter Storm Uri blackouts

The Supreme Court of Texas heard arguments over whether transmission and distribution utilities (TDUs) can be sued in state court for common-law gross negligence for decisions made during Winter Storm Uri, when ERCOT-directed load shedding interrupted electricity service across Texas.

Relator counsel argued the question for the TDUs is a duty question governed by the courts’ Mission Petroleum framework and by the Public Utility Commission (PUC) regulatory scheme. Relator counsel said, "Throughout the entire load shed event, our load shedding decisions were constrained by ERCOT protocols," and described regulatory limits including under-frequency load-shedding (UFLS) relays that the TDUs must keep energized during an EEA 3 event. Counsel explained those protocols require reserving circuits carrying at least 25% of ERCOT system load and prioritizing service to "nuclear plants, to prioritize military, law enforcement, public health, communications facilities," and that ERCOT orders must be complied with "in a time not to exceed 30 minutes." Relator counsel argued that where a comprehensive regulatory system addresses the same harms and provides administrative remedies and penalties,…