Brazos Electric Power Cooperative Files Motion for Partial Summary Judgment Against ERCOT Concerning Latter’s Proof of Claim
January 6, 2022, Southern District of Texas – Debtor and debtor-in-possession Brazos Electric Power Cooperative, Inc. files a motion for partial summary judgment on Count 1 of the Debtor’s first amended complaint objecting to Electric Reliability Council of Texas, Inc.’s (ERCOT) proof of claim for $1,899,152,990.64 and other relief.
In its motion, Brazos asserts that the amounts that ERCOT claims the Debtor owes are “unenforceable” as a matter of law, and summary judgment should be granted in its favor. Brazos argues that under the unambiguous terms of the Standard Form Market Participant Agreement between the Debtor and ERCOT, the amount that the Debtor owes to ERCOT “must be calculated according to the protocols in effect during Winter Storm”.
Brazos also contends that the alleged exorbitant and excessive ERCOT charges were avoidable as “constructively fraudulent obligations”, thereby necessitating a significant reduction of the ERCOT Claim. Further, Brazos asserts that the ERCOT Claim “does not meet the requirements for priority” under Bankruptcy Code section 503(b)(9) and must be reclassified as a general unsecured claim in its entirety.
The case is In re Brazos Electric Power Cooperative, Inc., Adv. Proc. No. 21-03863 (DRJ)