Energy Central Professional


Texas energy company threatens to cut off plants powering 400,000 homes



    One of Texas’ largest power providers asked state regulators to force the Dallas-based pipeline company Energy Transfer to continue natural gas service to its power plants.

    • Luminant Corp. says that Energy Transfer has threatened to stop providing natural gas to its plants as soon as Monday because of $21.6 million in fees related to last February's winter storm, according to a report from WFAA.

    Why it matters: Luminant power plants provide energy to 400,000 Texas homes, businesses, schools and hospitals.

    Context: After a catastrophic grid failure last year that led to hundreds of deaths, Energy Transfer made a reported $2.4 billion.

    What's happening: Luminant's parent company, Vistra Corp., filed a 149-page document with the Texas Railroad Commission, which oversees energy matters. The filing included a letter from Energy Transfer stating that if payment is “not received within ten days” it would no longer “deliver gas” to Luminant's gas-fired plants.

    • Energy Transfer sent a response to the commission stating that it will continue to supply Luminant's plants with natural gas while it tries to work out the fee dispute and asked the commission to delay any rulings for now.
    • Railroad Commission officials have not responded to questions about whether the agency will act, per the Texas Tribune.

    What they're saying: Energy Transfer's threat to cut off service in the middle of winter is “illegal and grossly irresponsible and should be prohibited by this commission,” Vistra says in the filing.

    • Railroad Commission Chair Wayne Christian tweeted: "I am paying close attention to this. @EnergyTransfer and @VistraCorp must come together to resolve this issue so that no Texans lose gas or electric service during cold weather. Do what's right for Texans."

    (Get Axios in you inbox: Click Here)

    The views expressed in content distributed by Newstex and its re-distributors (collectively, "Newstex Authoritative Content") are solely those of the respective author(s) and not necessarily the views of Newstex et al. It is provided as general information only on an "AS IS" basis, without warranties and conferring no rights, which should not be relied upon as professional advice. Newstex et al. make no claims, promises or guarantees regarding its accuracy or completeness, nor as to the quality of the opinions and commentary contained therein.


Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.