Unwilling to pass the storm’s sky-high electricity bills on to consumers, this company simply declared bankruptcy – Texas’ oldest electric cooperative files for bankruptcy protection

Brazos Electric Power Cooperative, the oldest electric utility in Texas, filed for bankruptcy on March 1, local Time, as it faces a huge $2.1 billion bill. The company said it was reluctant to pass those costs on to consumers after electricity rates soared to sky-high prices during the storm.

CBS reports that Texas-based Brazos Electric Cooperative filed for bankruptcy protection on March 1, after accumulating $2.1 billion in bills from the company’s purchase of high-priced electricity during the cold snap that hit Texas from Feb. 13 to 19.

Brazos said the company received excessive bills from the Electric Reliability Council of Texas (ERCOT) and was required to complete payment within days. The company was overwhelmed and eventually decided to file for Chapter 11 bankruptcy.

ERCOT has been criticized by Texas residents for its power supply problems during the snowstorm. Electricity rates for some Texans who were hit by the cold on the 20th of last month jumped 180 times to more than $9,000 per megawatt⋅hour; some Texas households even saw their bills rise by nearly $10,000.

Brazos said, “This catastrophic financial event cannot and will not be imposed on the members and those consumers.”

Brazos Electric Cooperative serves 16 distribution member cooperatives and is able to meet the needs of more than 1.5 million Texans. Energy analysts say numerous electric companies could fail as a result of the winter storm, and Brazos Electric Cooperative is the first to file for bankruptcy.