Subrogation Alert: Rolling Brownouts And ERCOT

The past few days have been trying ones for Texans suffering due to the loss of electric power in their homes and business.  Already we have received several subrogation assignments arising from claims involving burst water and sprinkler piping.  Other claims involve damage due to lack of heat to inventories and other property.

The question presented is whether a subrogated property carrier has any recourse against those responsible for the brownout, either or both the electrical utility or the Electric Reliability Council of Texas, Inc (ERCOT).

The question is timely and interesting. The answer is a big MAYBE at this time. Here is why.

Electric utilities in Texas operate through and under publicly filed tariffs.  A tariff is viewed as a public contract between the utility and the people it serves.  An electric utility such as ONCOR operates under a tariff which by its express terms eliminates any liability of ONCOR for ordinary negligence causing property