As the largest and longest-established power cooperative company in Texas, Brazos Electric Power Cooperative Inc filed for bankruptcy protection in Houston on March 1 local time.
It is reported that the reason is $1.8 billion in debt owed by the state’s power grid operators.
Brazos Electric Power Cooperative Inc is one of dozens of electricity providers in Texas and provides electricity to more than 660,000 users across the state. But last month, due to severe snowstorms, it faced a huge cost deficit.
In mid-February 2021, abnormally cold weather destroyed nearly half of Texas’s power plants, causing 4.3 million people to lose power and heating for several consecutive days and rupture of water pipes, causing losses to many families and businesses.
During this period, Brazos Electric Cooperative Company and other suppliers were required to buy alternative electricity at high prices and pay other related fees, which caused high debts.