A judge in Texas overseeing Brazos Electric Power Cooperative Inc.'s bankruptcy rejected a request by one of its creditors to arbitrate a contract dispute worth up to $770 million, saying that the proposed arbitration could derail the power cooperative's restructuring and harm consumers in rural Texas at a time when energy prices are already high, Reuters reported. At a Wednesday court hearing in Houston, attorneys for creditor Sandy Creek Energy Associates LP pushed for Brazos, the largest power cooperative in Texas, to arbitrate a contract dispute outside of bankruptcy court. U.S. Bankruptcy Judge David Jones sided with Brazos, saying that Sandy Creek's proposal could "drastically change the landscape" of the bankruptcy and ultimately harm other creditors, including rural power customers. "I do not buy the explanation at all that it's going to be quicker," Jones said. Brazos filed for bankruptcy after a historic winter storm in 2021 left millions of Texans without power and triggered a $2 billion fight between Brazos and the state’s electric grid operator. The deadly storm caused energy prices to spike several thousand percent and has caused several other energy companies to file for bankruptcy. Brazos is attempting to mediate its dispute with the Texas power grid operator before proposing a restructuring plan in court.
