Winter Storm Uri Negligence Lawsuits Cleared to Advance by Texas Court
The repercussions from Uri's Winter Storm in Texas, which occurred in February 2021, have reappeared in the headlines following a significant legal decision by a three-judge appeals panel from the Texas 14th Court of Appeals in Houston. The panel has approved the progression of negligence claims against notable utilities, including CenterPoint Energy, Oncor Electric Delivery, and American Electric Power.
How did Winter Storm Uri Impact the United States?
Nationwide, the storm triggered winter weather alerts from the National Weather Service, influencing more than 170 million Americans. Over five million people experienced blackouts, leaving nearly 18 million Texans with a boil water notice. It became evident that the storm, one of the most brutal in Texas history, also had a punishing fiscal impact, accruing over $195 billion in damages and earmarking itself as Texas' costliest-ever natural disaster.
How did the Power Companies Respond?
In Texas, the storm blanketed all 254 counties in record-breaking snowfall, bringing widespread power outages, road closures, and treacherous travel conditions due to the thick layer of snow and ice compounded by ultra-low temperatures. State emergency management teams were activated, setting up warming centers across Texas and deploying personnel to support stranded motorists and conduct welfare checks. Regardless of the precautions, millions of Texans did not have power, punctuating Governor Greg Abbott's disaster declaration for all 254 counties.
The lawsuits confronting the Transmission and Distribution Utilities (TDUs) stem from this power failure. Thousands of customers who sued the companies involved in Texas's electric grid sought damages for the outages during Uri's Winter Storm. Defendants CenterPoint Energy, Oncor Electric Delivery, and American Electric Power, allegedly supplying power amidst the storm, now face many lawsuits.
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Has there been Controversy surrounding the Power Outages?
The utilities had formerly argued that they were not liable for the alleged damages under a state Supreme Court precedent and the TDUs' tariffs for retail delivery service. However, the panel ruling shattered this defensive barrier, stating the TDUs were negligent in responding to the Electric Reliability Council of Texas, which issued a level three emergency declaration in less than an hour.
The court's decision revealed that these companies were unprotected from gross negligence or intentional misconduct. Sticking to allegations made by the plaintiffs, the ruling underscored the severity of their choices during the storm. This included decisions to rotate power outages among neighborhoods and cut power to certain areas entirely.
"These companies were warned, and they chose not to act." This statement came from Nachawati Law Group lawyer Ann Saucer - a pointed reference to the utilities' handling of the crisis. Complacency and failure to heed warnings ultimately culminated in several losses of life, adding to the 200 fatalities experienced during the storm.
A Lingering Reminder of Uri Winter's Wrath
Uri's Winter Storm continues bearing the grim reminder of its ruthless strike on Texas. A staggering $300 billion in damages was calculated, coinciding with the statewide blackouts and shutdowns that ensued. This ruling from the Texas Court allows the parties aggrieved by the negligence of utilities to seek legal redress, keeping the haunting memory of Uri's Winter storm relatively fresh. One thing is abundantly clear - Texas, along with its people and decision-making utilities, has a long, chilling saga to recount and redress, with Winter Storm Uri at its core.
