(Reuters) – The top of Texas’s energy regulator informed lawmakers on Thursday that any effort to retroactively cut back the facility costs levied throughout a latest storm would result in lawsuits that the state might lose.
The state’s energy grid operator raised energy costs sharply throughout a February freeze that pushed two energy firms into chapter 11. Others have warned of potential bankruptcies. High officers this week known as on the Public Utility Fee (PUC) of Texas to instantly cut back about $16 billion in energy costs.
Any repricing would set off lawsuits that the fee would lose, PUC Chairman Arthur D’Andrea bluntly informed lawmakers at a listening to in Austin. Commodity contracts used to hedge energy have closed and any repricing “can have penalties” for the state’s energy, agriculture and different markets, he mentioned.