the Globe News
TEXAS. – electric arms, Texas' oldest and largest electric power company has filed for bankruptcy because it has $10,000 billion in debt and only $1,000 billion in assets.
The firm, which provides power to 16 distribution cooperatives and serves more than 1.5 million residents, was hit by two winter storms in February that left some 4.3 million businesses and homes without power for several days in the state.
“Before the harsh winter weather electric arms it was a financially robust company,” the firm said in a statement, in which it indicated that, under bankruptcy protection, it will begin a financial restructuring.
During the emergency, Brazos and other energy providers had to purchase replacement supplies at higher rates and had to pay other companies' rates.
Last Friday, the Electric Reliability Council of Texas (ERCOT), the entity that operates the state's electricity grid, indicated that there were some 2.100 billion dollars in initial unpaid bills.
“As a result of the catastrophic failures during the storms, ERCOT presented Brazos with excessively high bills for collateral costs, requiring payment within a few days,” according to the utility.
“As a cooperative whose costs are passed on to members and ultimately collected from the retail consumers served by member cooperatives, Brazos Electric determined that it cannot unload this catastrophic financial event on its members and consumers. New Day Font
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