Shell Sued by Texas Energy Retailer for Nixing Deal During Storm

Shell Energy North America US LP allegedly owes $124.3 million to bankrupt Texas energy retailer Entrust Energy Inc. for breaching a contract ahead of February’s winter storm in order to take advantage of a power price surge and sell electricity to other customers at higher rates.

Entrust, which filed Chapter 11 following the storm’s crippling effect on the Texas power grid, filed a complaint Monday arguing that Shell Energy was obligated to sell power at specified prices through Feb. 17, but terminated the contract mere hours before the storm hit Feb. 14.

To meet customer needs, Entrust was forced to ...