Brazos Electric Power Cooperative Inc. is seeking bankruptcy court approval of a $350 million loan as it restructures in the aftermath of February’s historic winter storm that wiped out power for millions in Texas, Reuters reported. The cooperative, represented by Norton Rose Fulbright, filed a motion to access the loan on Tuesday. A hearing is set for May 18 before Chief U.S. Bankruptcy Judge David Jones in Houston to approve its use of up to $150 million of the loan on an interim basis. The judge will take up the full amount of the loan at a later date. Brazos, which is the oldest and largest electric power co-op in Texas, filed for bankruptcy protection in March in the face of a disputed $2.1 billion bill from the state's grid operator, the Electric Reliability Council of Texas (ERCOT), following the severe cold snap in February. The co-op said that it was in "fantastic financial health" before the storm caused wholesale electricity rates to soar. The loan, provided by a J.P. Morgan Chase Bank-led group of lenders, will fund collateral requirements Brazos must meet with ERCOT. The loan will also fund the co-op's purchases of gas and power on spot and day-ahead markets and provide working capital, according to court papers.
