More than 100 insurers have filed a subrogation lawsuit against Texas' electric grid operator and dozens of utilities in state court seeking compensation for losses they incurred as a result of the loss of power during the 2021 polar vortex.
Last February, a polar vortex and winter storm Uri drove record freezing temperatures which caused significant issues across the Electric Reliability Council of Texas, Inc's (ERCOT's) power network and utilities in Texas. The level of demand for power was unable to be met by any of the sources at ERCOT's disposal.
The resulting power outages for millions of energy customers meant no heating or power for days on end. This exacerbated the insurance market claims burden, particularly from freezing and burst pipes, and costs related to business interruption. At least 57 people died "in connection with the extreme weather and resulting blackouts."