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Texas' Brazos Electric Power Cooperative Files For Bankruptcy

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Brazos Electric Power Cooperative Inc., the largest power generation and transmission cooperative in Texas, filed for Chapter 11 bankruptcy protection citing a huge bill from the state's grid operator following major outages recently amid the winter storm.

Brazos received a $1.8 billion bill from electricity grid operator Electric Reliability Council of Texas or ERCOT for the seven day winter storm event that caused power failure for millions of residents for days.

In the U.S. Bankruptcy Court for the Southern District of Texas, the company listed both estimated assets and liabilities of $1 billion to $10 billion.

Brazos Electric provides electricity to more than 660,000 customers across the state of Texas through its 16 utility company members.

In its filing, the company said that it filed for bankruptcy to protect itself, its member cooperatives, and consumers from a massive bill.

In mid-February, majority of the state's power plants were shut down following unusually frigid temperatures that affected around 4.3 million people without heat or light for days, and caused severe damages to houses and businesses.

In the state, other utilities and power companies also face hefty charges in billions of dollars related to the recent blackouts.

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