A Bexar County judge last Thursday ordered CPS Energy to pay nearly $400 million to two Energy Transfer subsidiaries for natural gas delivered during the February 2021 winter storm, a ruling that could echo through San Antonio utility bills for years. The judgment covers roughly $264 million in unpaid contract charges, about $119 million in prejudgment interest and more than $9 million in attorneys’ fees. It caps a 12-day bench trial and rejects CPS Energy’s core argument that the eye-popping storm prices were legally unconscionable.
In her written findings, Judge Laura Salinas concluded that "CPS breached the contracts" and that "the contracts are not unconscionable and must be enforced," according to the San Antonio Report. The court found that Houston Pipe Line Company and Oasis Pipeline had invoiced CPS Energy about $309 million for gas delivered during Winter Storm Uri, and that CPS had paid roughly $52 million while withholding the rest. The judgment also requires CPS to pay court costs and post-judgment interest, the outlet reported.
How The Judge Tallied The Bill
Salinas entered a final award of about $263.7 million in unpaid charges, $119.1 million in prejudgment interest, and approximately $9.4 million in attorneys' fees, as reported by the San Antonio Express-News. The five-page order also leaves the door open for additional attorneys' fees if the suppliers win on appeal and directs CPS to cover court costs. With interest and fees layered on, the court's judgment climbs close to the $400 million mark cited by local news outlets.
What It Could Mean For Customer Bills
The dispute traces back to Winter Storm Uri, when natural gas spot market prices spiked, and CPS Energy spent about $850 million on fuel during the crisis, according to the San Antonio Report. To recover part of those costs, CPS rolled out a monthly surcharge that adds about $1.26 to the average residential bill and is expected to stick around for roughly 21 years. Utility officials say costs tied to this litigation remain wrapped into a $1 billion regulatory asset that was previously approved by the CPS board and the San Antonio City Council, and the company says it is still weighing its options on an appeal.
Pushback From CPS, Victory Lap For Energy Transfer
CPS Energy called the decision "disappointing" and said it would consider appellate options in a statement reported by the San Antonio Express-News. Energy Transfer, on the other hand, portrayed the ruling as a clear win for contract law, saying it "confirms CPS Energy is responsible for honoring its contracts" and that "the message is clear: CPS Energy must pay its bills just like everyone else," according to Texas Public Radio. The decision lands as CPS trustees are already reviewing budgets and eyeing possible rate moves later this year, so timing here is less than ideal for the city-owned utility.
Part Of A Bigger Post-Storm Legal Fight
The ruling arrives against a broader backdrop of post-storm litigation and shifting regulations. In March, the Texas Supreme Court ended appeals that targeted power generators, narrowing other storm-related legal avenues, as reported by The Texas Tribune. If CPS Energy files an appeal in this case, lawyers say the process could drag on for months and will likely hinge on contract law questions about market prices during declared emergencies, issues that have already divided judges and legal observers across the state.
