Texas court tosses winter storm cases against power companies

By Mike Lee, Shelby Webb | 03/31/2026 06:56 AM EDT

A consumer advocacy group says the state may not be prepared for a storm like the one in February 2021 as questions loom about the power needed for data centers.

Water shoots out of a burst pipe outside of a restaurant in February 2021 in Houston.

Water shoots out of a burst pipe outside of a restaurant in February 2021 as Houston coped with fallout from historic cold weather and power outages. Justin Sullivan/Getty Images

Five years after a winter storm crippled the Texas electric grid, causing hundreds of deaths and billions of dollars in damages, the state Supreme Court has rejected negligence claims against the state’s power providers.

The ruling ends a major effort to hold Texas’ electricity interests responsible for the 2021 storm, which was dubbed Winter Storm Uri.

And it raises questions about whether the system is ready for the challenges it faces today — including heat waves, drought and a rapid increase in electricity demand from the booming artificial intelligence industry. The ruling also comes as states and grid operators are trying to balance bolstering the grid with affordable power rates.

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Texas ordered electric generation plants and certain natural gas facilities to winterize their operations in the wake of the 2021 storm. But it’s unclear how effective those efforts will be, with some observers warning that the grid may not be ready despite the changes.

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