A recent ruling by the Texas Supreme Court has significantly impacted ongoing lawsuits related to the widespread power outages experienced during Winter Storm Uri in February 2021. While the court hasn’t outright dismissed the cases, it has established a higher legal threshold for residents and businesses seeking to hold power companies accountable for the devastating consequences.
The lawsuits, targeting companies like Oncor, CenterPoint, and American Electric Power Texas, initially alleged intentional nuisance and gross negligence stemming from the prolonged and deadly power failures. However, the court determined that plaintiffs have not adequately demonstrated “conscious indifference,” the heightened legal standard required to prove gross negligence. The court reasoned that power companies were operating under directives from the Electric Reliability Council of Texas (ERCOT) during the crisis.
The court also addressed the “intentional nuisance” claim, finding that plaintiffs had not sufficiently established the power companies as the primary source of the disruption, acknowledging the significant role of the storm itself. Despite this, the plaintiffs have been given the opportunity to revise and refile their gross negligence claims in trial court, though meeting the demanding “conscious indifference” standard will be difficult.
The ruling emphasizes the obligation of power companies to adhere to ERCOT’s instructions and highlights the legal protections afforded to them when acting under ERCOT’s guidance. The storm itself resulted in at least 246 deaths, primarily due to hypothermia. Power companies have responded to the ruling; CenterPoint expressed satisfaction and confidence that plaintiffs will fail to prove gross negligence, while Oncor anticipates a full dismissal if the lawsuits are refiled. American Electric Power Texas declined to comment.
The legal proceedings continue in Harris County, where the cases are consolidated within multidistrict litigation. A separate appeal remains pending before the Houston First Court of Appeals. The Supreme Court’s decision sets a high bar for future litigation, potentially hindering efforts to hold Texas power companies accountable for similar events in the future. Demonstrating “conscious indifference” – proving companies were aware of potential harm and disregarded it – will be essential for plaintiffs to succeed, and the court’s deference to ERCOT’s authority presents a substantial challenge.
For more information visit: https://www.keranews.org/energy-environment/2025-06-27/texas-supreme-court-oncor-centerpoint-power-companies-lawsuits-2021-winter-storm-uri