Brazos seeks another exclusivity extension as Ercot dispute continues

By Sarah Lizee

Olympia, Wash., Oct. 28 – Brazos Electric Power Cooperative, Inc. is seeking another extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

Specifically, the company asked the court to extend the plan filing period through March 28 from Oct. 27 and the solicitation period through May 25 from Dec. 28.

“The unprecedented consequences of winter storm Uri, including the pricing of power by [the Electric Reliability Council of Texas], were devastating to the debtor, its members, and their customers,” the company said in its motion.

“Despite the debtor’s ‘free fall’ into Chapter 11, and the many unique challenges it is currently working to address, the debtor has managed to make substantial progress toward a successful reorganization in the short time that it has been in bankruptcy.”

The company noted that it operates in a complicated industry across a number of different business lines and market functions, all of which are subject to and governed by the debtor’s contracts with Ercot, in particular, the debtor’s standard form market participant agreement (SFA) with Ercot.

“Resolving the debtor’s disputes with Ercot in connection with the Ercot claim objection will play a significant role in determining the ultimate treatment of the SFA in this Chapter 11 case and provide clarity around the debtor’s go-forward business plan,” the company said.

The company said the Ercot claim objection is on track to be resolved on an expedited basis in early 2022 and, as that litigation continues, any developments will provide the debtor and its stakeholders with important guidance on key legal and business issues.

Brazos Electric is a 3,994-megawatt generation and transmission cooperative based in Waco, Tex. The company filed bankruptcy on March 1, 2021 under Chapter 11 case number 21-30725.

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