Texas Freeze: largest power generation and transmission coop in Texas filed for bankruptcy. Link here.
- Brazos Electric Power Cooperatirve
- estimated $2.1 billion in charges over seven days
- last year, 2020, it cost cooperative members less than $775 million for power for the entire year
- the ooperative on Feb. 25 told state grid operator the Electric Reliability Council of Texas that it wouldn’t pay the $2.1 billion sum, and Karnei resigned from Ercot’s board of directors, court papers show
- Aside from its power bills, the cooperative has more than $2 billion of debt outstanding, spread across $1.56 billion of secured notes and about $480 million under a credit line administered by Bank of America Corp., court papers show. Brazos had A+ credit grade from Fitch Ratings and an A from S&P Global Ratings prior to the bankruptcy.
- Brazos, a member-owned power provider serves customers across 68 Texas counties, stretching from just north of Houston to near the Texas panhandle, court papers show.
- The bankruptcy is likely to be one of many after four million homes and
businesses went without heat, light and water during the deep winter
freeze last month, causing as much as $129 billion in economic losses.
The state’s broader market set a record for the most expensive week of
power in U.S. history.
SRE: up $2.42. Up over 2% in early morning trading. Trading well below its high, but recovering nicely.
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First group:
- 10-Year Treasury: link here. Down slightly, at 1.419%.
- DXY: link here. Up slightly, at $91.05.
- Silver: link here. Up slightly, at $27.025.
- CBOE volatility index: link here. Huge plunge, down over 15%; now at 23.72.
Second group:
A lot of folks getting heartburn on the bankruptcy, and a bunch of lawyers smiling
ReplyDeleteThis is "normal" for Texas.
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