Texas Grid Operator Immune From Entrust Gross Negligence Suit

March 12, 2026, 6:09 PM UTC

The Electric Reliability Council of Texas is shielded by state sovereign immunity from facing what remains of a long-running suit launched by the trustee for power retailer Entrust Energy Inc., a Houston bankruptcy judge ruled.

The Texas electric grid operator is entitled to a take-nothing judgment on a claim for gross negligence related to massive financial losses incurred by Entrust from Winter Storm Uri in 2021, Judge Marvin Isgur of the US Bankruptcy Court for the Southern District of Texas ruled Wednesday.

A federal appeals court has already determined that the US Constitution doesn’t protect ERCOT from being sued in ...

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