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Oklahoma sues 2 Texas natural gas companies over price spikes during 2021 winter storm

The lawsuits are Oklahoma's first against natural gas operators over earnings during the 2021 Winter Storm Uri. Photo by Lynn in Midtown via CultureMap

Two Texas-based natural gas companies are being sued by Oklahoma, which alleges they fraudulently reduced gas supplies to send prices soaring during Winter Storm Uri, making huge profits while thousands shivered across the state.

The lawsuits are Oklahoma's first against natural gas operators over earnings during the 2021 storm. The suits were filed against Dallas-based ET Gathering & Processing, which acquired Enable Midstream Partners in 2021, and Houston-based Symmetry Energy Solutions.

Both lawsuits seek actual and punitive damages, as well as a share of any profits that resulted from wrongdoing. Oklahoma's Republican attorney general, Gentner Drummond, said his office intends to pursue additional litigation against other companies that may have engaged in market manipulation.

“I believe the level of fraud perpetrated on Oklahomans during Winter Storm Uri is both staggering and unconscionable,” Drummond said in a statement. “While many companies conducted themselves above board during that trying time, our analysis indicates that some bad actors reaped billions of dollars in ill-gotten gains."

A Symmetry spokesperson said in a statement that the company "adamantly denies the unfounded allegations in the lawsuit, which it will vigorously defend.” A message seeking comment left with ET was not immediately returned. The lawsuits were filed in Osage County, Oklahoma.

The devastating storm sent temperatures plummeting across the country and left millions of people without power.

Kansas Attorney General Kris Kobach filed a similar lawsuit in federal court in December against a natural gas marketer operating in that state. In Texas, which was also hit hard by the deadly storm, the electric utility Griddy Energy reached a settlement with state regulators over crushing electric bills its customers received.

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A View From HETI

A new joint venture will work on four projects supplying 5 gigawatts of power from combined-cycle power plants for the ERCOT and PJM Interconnection grids. Photo via Getty Images.

Houston-based power provider NRG Energy Inc. has formed a joint venture with two other companies to meet escalating demand for electricity to fuel the rise of data centers and the evolution of generative AI.

NRG’s partners in the joint venture are GE Vernova, a provider of renewable energy equipment and services, and TIC – The Industrial Co., a subsidiary of construction and engineering company Kiewit.

“The growing demand for electricity in part due to GenAI and the buildup of data centers means we need to form new, innovative partnerships to quickly increase America’s dispatchable generation,” Robert Gaudette, head of NRG Business and Wholesale Operations, said in a news release. “Working together, these three industry leaders are committed to executing with speed and excellence to meet our customers’ generation needs.”

Initially, the joint venture will work on four projects supplying 5 gigawatts of power from combined-cycle power plants, which uses a combination of natural gas and steam turbines that produce additional electricity from natural gas waste. Electricity from these projects will be produced for power grids operated by the Electric Reliability Council of Texas (ERCOT) and PJM Interconnection. The projects are scheduled to come online from 2029 through 2032.

The joint venture says the model it’s developing for these four projects is “replicable and scalable,” with the potential for expansion across the U.S.

The company is also developing a new 721-megawatt natural gas combined-cycle unit at its Cedar Bayou plant in Baytown, Texas. Read more here.

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