Entrust Can Pursue Bid to Block ERCOT’s $296 Million Claim (1)

A trustee liquidating Entrust Energy Inc. can continue with its lawsuit to block the Electric Reliability Council of Texas’s $296 million payment claim, after a judge said the trustee made plausible arguments.

ERCOT, a grid operator and wholesaler to utilities in the state, submitted claims in Entrust’s bankruptcy to get paid on energy delivered. Entrust, which filed for bankruptcy in March, 2021 after a winter storm that knocked out power for millions of customers, sued to wipe out ERCOT’s claim, saying it was excessive and avoidable.

Given the large amount at stake, the extent of ERCOT’s claim against the litigation ...