BRAZOS ELECTRIC POWER COOPERATIVE FILES FOR BANKRUPTCY PROTECTION

  

The state’s oldest and largest wholesale power generator, which services Mid-South Synergy in Navasota along with 15 other member cooperatives, has filed for voluntary bankruptcy protection.

Brazos Electric Power Cooperative filed today (Monday) in federal court in Houston, listing assets and liabilities between $1 billion and $10 billion.

Brazos Electric, based in Waco, said in a news release that as a result of the winter storm, it was presented with “excessively high invoices” by the Electric Reliability Council of Texas (ERCOT) for collateral and the purported cost of electric service.  The provider also said payment of these invoices was “required within days.”

Brazos Electric said it “cannot and will not foist this catastrophic financial event” on its members and consumers.

Brazos Electric General Manager Clifton Karnei said this action was “necessary to protect its member cooperatives and their more than 1.5 million retail members from unaffordable electric bills.”

Karnei said the provider expects this court-supervised financial restructuring process will allow it to protect and preserve its assets and operations, and satisfy obligations to its creditors.