Texas 2021 Winter Storm Event

March 4, 2021

We at Lloyd Gosselink wish all of our clients, colleagues, and fellow Texans well as our state continues to move through response and recovery from last month’s winter storm.  We especially thank our employees who have continued to deal with utility service issues and property damage while serving our clients. We will be keeping up with activities at the federal, state, and local levels, and here is a summary of where things stand.

LATEST INFORMATION

Federal Disaster Declaration and Assistance:  The Biden administration has approved additional counties for federal disaster aid so that as of early March, all 254 Texas counties are eligible for public assistance to local governments (emergency protective measures only) and 126 counties are eligible for individual assistance for the Stafford Act.  Governor Abbott and the Texas Division of Emergency Management continue to work on the extension of individual assistance to additional Texas counties.

Regulatory and Legislative Follow Up:  The TCEQ held a work session on March 3, 2021, to discuss the agency’s response to the event and discuss additional actions the agency may need to take.  The video can be viewed here.

February 22, 2021

State Disaster Declaration and TCEQ Rules Suspensions:  On February 12, Governor Abbott issued a state disaster declaration for all 254 counties due to the threat posed by the oncoming winter storm.

As allowed by the state disaster declaration, Governor Abbott approved the suspension of certain Texas Commission on Environmental Quality (TCEQ) rules for regulated entities dealing with the storm on February 13-19, 2021. 

Federal Disaster Declaration and Assistance:  On February 20, 2021, the Biden administration approved Texas’ request for a federal major disaster declaration and federal individual assistance in 77 counties and public assistance to local governments (emergency protective measures only) in all 254 counties under the Stafford Act. On February 22, 2021, the Federal Emergency Management Agency approved additional Texas counties for individual assistance.

Regulatory and Legislative Follow Up:  State agencies and legislative committees with relevant jurisdiction have been and will be taking more action in the coming days.  The Public Utility Commission has opened a separate docket number (51812) for winter storm event response activities. The TCEQ has set up a winter storm event webpage to serve as a resource for regulated entities. The Railroad Commission has issued orders and notices related to natural gas operations. The following legislative committees will be holding hearings this week.  Committee hearings can be viewed for the House here and for the Senate here.

Joint Hearing House State Affairs and Energy Resources Committees

9:00 AM, Thursday, February 25, 2021

Hearing to consider the factors that led to statewide electrical blackouts during the recent unprecedented weather event; the response by industry, suppliers, and grid operators; and changes necessary to avoid future power interruptions.

Senate Business & Commerce

9:00 AM, Thursday, February 25, 2021

Hearing to examine extreme weather condition preparedness and circumstances that led to the power outages as directed by Electric Reliability Council of Texas (ERCOT). The committee will also review generator preparedness and performance, utility outage practices, natural gas supply, and the reliability of renewable generation, as well as overall ERCOT system resilience.

Senate Jurisprudence

9:00 AM, Thursday, March 4, 2021

Hearing to examine the legal responsibilities that ERCOT and the PUC owe to the people of Texas. The committee will review the legal framework for governance and oversight of these two entities, their relationship to one another under the law, potential legal liabilities, and the legal limits on increases to consumer electricity rates during an emergency. The committee will also examine price gouging under the Texas Deceptive Trade Practices-Consumer Protection Act and receive an update from the judiciary on how the judicial system is managing its operations during the ongoing statewide emergency.

Again we wish our clients, colleagues, and all fellow Texans fair skies and warm temperatures in the days ahead!


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