BLUEBONNET SAYS ITS WHOLESALE POWER PROVIDERS ‘FINANCIALLY SOUND’

  

Following Brazos Electric Power Cooperative’s filing for bankruptcy protection in the wake of the winter storm, many are wondering what may happen with other electric service providers.

Brazos Electric filed Monday in federal court in Houston after receiving an invoice worth an estimated $2.1 billion due to the Electric Reliability Council of Texas (ERCOT).

The bankruptcy does not affect Bluebonnet Electric Cooperative, as it does not have a wholesale power contract with Brazos Electric.  Bluebonnet Public Affairs Manager Will Holford says it is “too early to say” how these bankruptcies may affect the ERCOT market, but states Bluebonnet’s wholesale power providers are “financially sound.”

Holford says every electric generation company in the ERCOT market will likely feel the impact of increased natural gas and wholesale power prices, but the extent is yet to be determined.  He says it will likely be several months before the ultimate impact of the weather event is known for Bluebonnet members and the Lower Colorado River Authority (LCRA), the primary wholesale electric provider for Bluebonnet and the City of Brenham.

Bluebonnet says it is very closely monitoring the overall situation with ERCOT, and is in “constant communication” with LCRA and local elected officials.  The cooperative says it is focused on achieving the best outcome for its members, and will continue to work with LCRA to keep its wholesale power cost rate for members “as low as possible.”

LCRA has not yet responded to KWHI’s request for comment.