The Fifth District Court of Appeals in Dallas ruled Wednesday that the Electric Reliability Council of Texas does not have sovereign immunity from all lawsuits and that the Texas Public Utility Commission does not have exclusive jurisdiction over all claims against ERCOT. The 12-to-1 decision has been widely anticipated because it could have ramifications in hundreds of lawsuits stemming from Winter Storm Uri in which ERCOT is a named defendant.
“To date, the supreme court has not extended sovereign immunity to a purely private entity neither chartered nor created by the state, and this court will not create new precedent by extending sovereign immunity to ERCOT,” Justice Erin Nowell wrote.