Texas utility sues gas suppliers over high prices

Texas utility company CPS Energy filed lawsuits March 23 against state natural gas suppliers, accusing them of charging extraordinary prices during a bout of severe winter weather last month.

The price spikes for gas were tantamount to charging $348 for a gallon of gasoline, about 11,000% higher than the current national average, CPS Energy CEO Paula Gold-Williams said.

“We filed the suits to protect our customers from unlawful, excessive, and exorbitant prices charged by certain natural gas suppliers during a state and federally declared disaster,” she said.

An Arctic blast in mid-February brought extreme cold to large parts of the continental US. Texas saw temperatures below freezing, a rare event for the US south. Henry Hub, the US gas price benchmark, spiked into the double-digits as a result of the surge in demand and supply-side outages triggered by the deep freeze.

After Texas Governor Greg Abbot declared a state of emergency on February 12 because of the weather, CPS said its suppliers hiked the price for gas by as much as 15,000%.

The company’s lawsuit aims to convince a Texas court to deem the excessive charges unlawful and prevent suppliers from defaulting on their gas contracts.

Arthur D’Andrea, the head of the state utility regulator, the Public Utility Commission, resigned March 17 at the request of the governor due to the fallout from the strain on the Texas grid brought on by the February freeze.