Brazos Electric Power Cooperative
| Company type | Cooperative |
|---|---|
| Industry | Electric generation and transmission |
| Founded | 1941 |
| Headquarters | Waco , United States |
| Products | Electricity generation and transmission |
Brazos Electric Power Cooperative is a cooperative specializing in electrical generation and transmission, with its main office located in Waco, Texas. In March 2021, the cooperative sought bankruptcy protection as a result of financial losses incurred during the February 2021 North American ice storm.
Operations
Construction of Brazos' present headquarters commenced in 2013 within the Texas Central Industrial Park in Waco.
The cooperative manages four power plants, which together have a total generation capacity of up to 2,909 megawatts. Initially, Brazos invested in the Comanche Peak Nuclear Generating Station, but later divested its stake to TXU. Beginning in January 2020, Brazos entered into a power purchase agreement to acquire energy from the Lapetus Solar project operated by Duke Energy in Andrews County, Texas.
Electricity distribution by Brazos extends to 16 local utility cooperatives and three municipal electric utilities.
Congressional Testimony
In 1967, H. A. Dalton, then general manager of Brazos, provided testimony before the 90th United States Congress concerning proposed amendments to the Federal Power Act. These amendments aimed to enhance the reliability of electrical service nationwide during emergencies. The testimony advocated for legislation intended to avert blackouts similar to the November 1965 event.
Lawsuit
The Texas Commission on Environmental Quality (TCEQ) initiated legal action against Brazos Electric Power Cooperative after denying an ad valorem tax exemption for heat recovery steam generators (HRSGs). The Texas Legislature categorizes these generators as "pollution control property." The case was escalated to the Texas Supreme Court in May 2019. While TCEQ contended that the legislature lacked jurisdiction to grant such exemptions, the court determined that legislative authority existed and found that TCEQ had acted improperly by refusing the exemption.
Bankruptcy filing
In response to the severe impact of the February 2021 North American ice storm on Texas' energy infrastructure and subsequent electricity price surges, Brazos filed for Chapter 11 bankruptcy protection within the U.S. Bankruptcy Court for the Southern District of Texas. The cooperative disclosed it had received bills exceeding $2.1 billion from the Electric Reliability Council of Texas (ERCOT), prompting the bankruptcy filing as a measure to protect itself, its member cooperatives, and consumers from these overwhelming costs.
Member cooperatives
- Bartlett Electric Cooperative
- Comanche Electric Cooperative
- CoServ Electric
- Fort Belknap Electric Cooperative
- Hamilton County Electric Cooperative
- Heart of Texas Electric Cooperative
- HILCO Electric Cooperative
- J-A-C Electric Cooperative
- MidSouth Synergy
- Navarro County Electric Cooperative
- Navasota Valley Electric Cooperative
- PenTex Energy
- South Plains Electric Cooperative
- Tri-County Electric Cooperative
- United Cooperative Services
- Wise Electric Cooperative