Tag Archives: power crisis

Texas lawmakers prepare bill to cut $5.1 billion in winter storm power fees

(Reuters) – Texas lawmakers on Monday were preparing legislation to cut about $5.1 billion in disputed electricity and services fees levied on power marketers during a winter freeze that sent the state’s power market into financial crisis.

The cold snap last month spurred a power crisis that pushed the state’s weekly electricity costs by nearly 10 times the usual to about $47 billion. Those costs led at least two bankruptcies and a sparked a battle between lawmakers and the state’s power regulator over the handling of the crisis and resulting prices.

Governor Greg Abbott on Monday submitted an emergency proposal authorizing legislators to address billing errors and service fees that led to a heated battle between lawmakers and the state’s power regulator over who can rescind the charges.

Lawmakers were moving to consider as early as Monday a bill cutting about $3.2 billion in power charges and services fees that state’s market adviser last week testified were improperly levied and should be corrected.

Arthur D’Andrea, the head of the state’s Public Utility Commission (PUC), rejected any change and advised lawmakers they could do it at the risk of a legal backlash. His refusal during a hearing last week to rescind prices sparked a heated comments between senators and the PUC chief.

One state senator, Charles Schwertner, ended his remarks by telling D’Andrea, who was appointed to the commission by Abbott: “My faith in you as chairman is severely, severely lacking.”

(Reporting by Gary McWilliams; Editing by Nick Zieminski and Marguerita Choy)

Derailed BNSF fuel train fire in Texas nearly extinguished

(Reuters) – A BNSF Railway Company train carrying products including coal and gasoline to Houston in Texas was still burning on Wednesday, a day after it collided with a truck near Cameron, causing an explosion in gasoline-carrying carriages.

BNSF, owned by Berkshire Hathaway Inc and one of the largest railroad operators in North America, had said on Tuesday that 13 of the train’s 110 carriages were derailed, with five of those carrying gasoline.

Five other carriages carrying non-hazardous loads were also on fire, the company added, forcing an evacuation of the surrounding area.

“Local first responders and BNSF personnel are still on site, working to completely extinguish the flames,” BNSF, one of the largest railroad operators in North America, said in a statement.

The train crew and truck driver were not injured, BNSF said, adding it would assess the damage and plan a clean-up once the fire was fully doused.

The fire is expected to be extinguished on Wednesday, the Cameron fire department said.

“It’s not completely out, we’re still putting water on it,” said fire department chief Henry Horelica.

The accident is the second incident since 10 BNSF Railway carriages carrying crude oil derailed, with three catching fire, in Custer, Washington, in late December.

The Texas-based company did not respond to a request for further comment and it was not immediately clear what companies would be affected by the delay in shipments.

BNSF is one of the largest U.S. coal carriers.

The region is already contending with an unprecedented power crisis caused by brutal cold weather and any fuel delays could further pressure the state’s electricity grid operator, which uses natural gas, coal and other fuels to power generators.

(Reporting by Asha Sistla and Swati Verma in Bengaluru; Editing by David Goodman)