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Hurricane Beryl knocks out power to 1 million as it hits Houston

Beryl is lashing Houston with high winds and hard rain. Graphic via YouTube

The AP estimates the population without power in the Houston area has risen to 2 million.

Power outages are mounting along the Texas coast after Beryl came ashore on July 8 and lashed Houston with heavy rains and powerful winds as the storm moved inland.

More than 1 million homes and businesses were without power hours after Beryl made landfall, according to CenterPoint Energy in Houston. High waters quickly began to close streets across Houston and flood warnings were in effect across a wide stretch of the Texas coast.

The National Weather Service expected Beryl to weaken to a tropical storm Monday and a tropical depression Tuesday, forecasting a turn to the northeast and increase in speed Monday night and Tuesday. The storm reached the U.S. after leaving a trail of destruction over the last week in Mexico and the Caribbean.

The storm's center hit land as a Category 1 hurricane around 4 a.m. about 85 miles southwest of Houston with top sustained winds of 80 mph (128.7 kph) while moving north at 12 mph (19.3 kph), the National Weather Service reported. On Monday morning, the storm had maximum sustained winds of 75 mph (120 kph).

High waters quickly began closing roads around Houston, which was again under flood warnings after heavy storms in recent months washed out neighborhoods and knocked out power across the nation’s fourth-largest city.

More than 1,000 flights have been canceled at Houston’s two airports, according to tracking data from FlightAware.

Beryl dumped soaking rains across Houston after coming ashore and was expected to bring damaging winds into East Texas, near Louisiana, as the storm pushed north after making landfall.

“Beryl’s moving inland but this is not the end of the story yet,” said Jack Beven, senior hurricane specialist at the National Hurricane Center.

Beryl strengthened and became a hurricane again late Sunday. The storm had weakened after leaving a path of deadly destruction through parts of Mexico and the Caribbean.

A hurricane warning remains in effect for the Texas coast from Mesquite Bay north to Port Bolivar, the center said.

The storm's center is expected to move over eastern Texas on Monday and then through the lower Mississippi Valley into the Ohio Valley on Tuesday and Wednesday, the weather service said.

People on the Texas coast boarded up windows and left beach towns under an evacuation order. As the storm neared the coast Sunday, Texas officials warned of power outages and flooding but also expressed worry that not enough residents and beach vacationers in Beryl’s path had heeded warnings to leave.

“One of the things that kind of trigger our concern a little bit, we’ve looked at all of the roads leaving the coast and the maps are still green,” said Texas Lt. Gov. Dan Patrick, who is serving as the state’s acting governor while Gov. Greg Abbott is travelling overseas. “So we don’t see many people leaving.”

Tropical storm winds extended 115 miles (185 kilometers) from the center and the hurricane center warned residents to be prepared for possible flash flooding in parts of middle, upper and eastern Texas as well as Arkansas as the storm gradually turns to the north and then northeast later Monday.

Along the Texas coast, many residents and business owners took the typical storm precautions but also expressed uncertainty about the storm’s intensity.

In Port Lavaca, Jimmy May fastened plywood over the windows of his electrical supply company and said he wasn’t concerned about the possible storm surge. He recalled his business had escaped flooding in a previous hurricane that brought a 20-foot (6-meter) storm surge.

“In town, you know, if you’re in the low-lying areas, obviously, you need to get out of there,” he said.

At the nearby marina, Percy Roberts showed his neighbor Ken Waller how to properly secure his boat as heavy winds rolled in from the bay Sunday evening.

“This is actually going to be the first hurricane I’m going to be experiencing,” Waller said, noting he is a little nervous but feels safe following Roberts’ lead. “Pray for the best but expect the worst, I guess.”

The earliest storm to develop into a Category 5 hurricane in the Atlantic, Beryl caused at least 11 deaths as it passed through the Caribbean on its way to Texas. The storm ripped off doors, windows and roofs with devastating winds and storm surge fueled by the Atlantic’s record warmth.

Three times during its one week of life, Beryl has gained 35 mph (56 kph) in wind speed in 24 hours or less, the official weather service definition of rapid intensification.

Beryl’s explosive growth into an unprecedented early whopper of a storm indicates the hot water of the Atlantic and Caribbean and what the Atlantic hurricane belt can expect for the rest of the storm season, experts said.

Texas officials warned people along the entire coastline to prepare for possible flooding, heavy rain and wind. The hurricane warning extended from Baffin Bay, south of Corpus Christi, to Sargent, south of Houston.

Beryl lurked as another potential heavy rain event for Houston, where storms in recent months have knocked out power across the nation’s fourth-largest city and flooded neighborhoods. A flash flood watch was in effect for a wide swath of the Texas coast, where forecasters expected Beryl to dump as much as 10 inches (25 centimeters) of rain in some areas.

Potential storm surges between 4 and 7 feet (1.22 and 2.13 meters) above ground level were forecast around Matagorda. The warnings extended to the same coastal areas where Hurricane Harvey came ashore in 2017 as a Category 4 hurricane, far more powerful than Beryl’s expected intensity by the time the storm reaches landfall.

Those looking to catch a flight out of the area found a closing window for air travel as Beryl moved closer. Hundreds of flights from Houston’s two major commercial airports were delayed by midafternoon Sunday and dozens more canceled, according to FlightAware data.

In Corpus Christi, officials asked visitors to cut their trips short and return home early if possible. Residents were advised to secure homes by boarding up windows if necessary and using sandbags to guard against possible flooding.

The White House said Sunday that the Federal Emergency Management Agency had sent emergency responders, search-and-rescue teams, bottled water and other resources along the coast.

Several coastal counties called for voluntary evacuations in low-lying areas that are prone to flooding. Local officials also banned beach camping and urged tourists traveling on the Fourth of July holiday weekend to move recreational vehicles from coastal parks.

Beryl battered Mexico as a Category 2 hurricane last week, toppling trees but causing no injuries or deaths before weakening to a tropical storm as it moved across the Yucatan Peninsula.

Before hitting Mexico, Beryl wrought destruction in Jamaica, Barbados and St. Vincent and the Grenadines. Three people were reported dead in Grenada, three in St. Vincent and the Grenadines, three in Venezuela and two in Jamaica.

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A View From HETI

Lawyers for a Tesla shareholder who sued to block the pay package contended that shareholders who had voted for the 10-year plan in 2018 had been given misleading and incomplete information. Photo via cdn.britannica.com

For a second time, a Delaware judge has nullified a pay package that Tesla had awarded its CEO, Elon Musk, that once was valued at $56 billion.

Last week, Chancellor Kathaleen St. Jude McCormick turned aside a request from Musk's lawyers to reverse a ruling she announced in January that had thrown out the compensation plan. The judge ruled then that Musk effectively controlled Tesla's board and had engineered the outsize pay package during sham negotiations.

Lawyers for a Tesla shareholder who sued to block the pay package contended that shareholders who had voted for the 10-year plan in 2018 had been given misleading and incomplete information.

In their defense, Tesla's board members asserted that the shareholders who ratified the pay plan a second time in June had done so after receiving full disclosures, thereby curing all the problems the judge had cited in her January ruling. As a result, they argued, Musk deserved the pay package for having raised Tesla's market value by billions of dollars.

McCormick rejected that argument. In her 103-page opinion, she ruled that under Delaware law, Tesla's lawyers had no grounds to reverse her January ruling “based on evidence they created after trial.”

What will Musk and Tesla do now?

On Monday night, Tesla posted on X, the social media platform owned by Musk, that the company will appeal. The appeal would be filed with the Delaware Supreme Court, the only state appellate court Tesla can pursue. Experts say a ruling would likely come in less than a year.

“The ruling, if not overturned, means that judges and plaintiffs' lawyers run Delaware companies rather than their rightful owners — the shareholders,” Tesla argued.

Later, on X, Musk unleashed a blistering attack on the judge, asserting that McCormick is “a radical far left activist cosplaying as a judge.”

What do experts say about the case?

Legal authorities generally suggest that McCormick’s ruling was sound and followed the law. Charles Elson, founding director of the Weinberg Center for Corporate Governance at the University of Delaware, said that in his view, McCormick was right to rule that after Tesla lost its case in the original trial, it created improper new evidence by asking shareholders to ratify the pay package a second time.

Had she allowed such a claim, he said, it would cause a major shift in Delaware’s laws against conflicts of interest given the unusually close relationship between Musk and Tesla’s board.

“Delaware protects investors — that’s what she did,” said Elson, who has followed the court for more than three decades. “Just because you’re a ‘superstar CEO’ doesn’t put you in a separate category.”

Elson said he thinks investors would be reluctant to put money into Delaware companies if there were exceptions to the law for “special people.”

What will the Delaware Supreme Court do?

Elson said that in his opinion, the court is likely to uphold McCormick's ruling.

Can Tesla appeal to federal courts?

Experts say no. Rulings on state laws are normally left to state courts. Brian Dunn, program director for the Institute of Compensation Studies at Cornell University, said it's been his experience that Tesla has no choice but to stay in the Delaware courts for this compensation package.

Tesla has moved its legal headquarters to Texas. Does that matter?

The company could try to reconstitute the pay package and seek approval in Texas, where it may expect more friendlier judges. But Dunn, who has spent 40 years as an executive compensation consultant, said it's likely that some other shareholder would challenge the award in Texas because it's excessive compared with other CEOs' pay plans.

“If they just want to turn around and deliver him $56 billion, I can't believe somebody wouldn't want to litigate it,” Dunn said. “It's an unconscionable amount of money.”

Would a new pay package be even larger?

Almost certainly. Tesla stock is trading at 15 times the exercise price of stock options in the current package in Delaware, Morgan Stanley analyst Adam Jonas wrote in a note to investors. Tesla's share price has doubled in the past six months, Jonas wrote. At Monday’s closing stock price, the Musk package is now worth $101.4 billion, according to Equilar, an executive data firm.

And Musk has asked for a subsequent pay package that would give him 25 percent of Tesla's voting shares. Musk has said he is uncomfortable moving further into artificial intelligence with the company if he doesn't have 25 percent control. He currently holds about 13 percent of Tesla's outstanding shares.

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