Electric coops file bankruptcy to save members

The parent company and wholesale electric provider of two of the large electric cooperatives that serve Freestone and Limestone Counties has filed for bankruptcy, after receiving a $2.1 billion bill from the Electric Reliability Council of Texas (ERCOT) for seven days of service during last month’s historic winter freeze.

Brazos Electric Power Cooperative, which is Texas’ largest and oldest electric power cooperative, counts among its 16 member cooperatives both Navarro County Electric and Navasota Valley Electric, which together provide electricity for the majority of Freestone and Limestone counties.

Brazos Electric filed for Chapter 11 bankruptcy Monday in Houston.

Prior to the cold weather Feb. 13-19, Brazos Electric enjoyed an A+ financial rating, and listed $10 billion in assets.

As a result of the catastrophic failures due to the storm, Brazos Electric was presented with excessively high invoices by ERCOT for collateral and for purported cost of electric service, payment of which was required within days, the company said in a press release.

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