Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
Enterprise Products Partners LP on April 26 sued CPS Energy, a San Antonio gas and power utility, alleging failure to pay nearly $100 million for natural gas delivered during a February winter storm.
The lawsuit is the latest to emerge from a severe cold snap that drove prices and demand for natural gas and electricity to hundreds of times their pre-storm levels. Houston gas prices hit $400 per million British thermal units (mmBtu) from about $4.50/mmBtu a week earlier. Those bills pushed at least three electricity providers to declare bankruptcy.
Enterprise is suing CPS Energy, a long-time customer, over payment disputes for sales during the freeze. The suit, filed in a state court in Harris County, Texas, claims CPS owes $99.7 million for gas after paying $36.5 million towards the month’s fuel bill.
“CPS Energy is now engaging in a coordinated plan to avoid paying its bills,” the lawsuit claimed, adding the utility has offered $38.83/mmBtu for the gas. The lawsuit does not say what price per unit of gas Enterprise sought.
CPS Energy CEO Paula Gold-Williams said Enterprise had engaged in “egregious price gouging” and that the lawsuit came after it had tried to negotiate the dispute.
“CPS Energy is committed to protecting its customers from unconscionable prices charged by certain natural gas suppliers,” Gold-Williams said.
A spokesman for Enterprise declined to comment, saying it would let the lawsuit speak for itself.
CPS Energy, the municipal utility owned by the city of San Antonio, Texas, previously sued grid operator Electric Reliability Council of Texas seeking to block it from issuing a default for unpaid power charges.
Enterprise next month is expected to report first-quarter earnings that analysts say will benefit from the sharp rise in gas prices during the storm. Rival Kinder Morgan Inc. last week reported a roughly $1 billion boost to earnings from selling high-priced natural gas to utilities.
Enterprise could post an around $475 million profit from the storm in its coming report, analysts from consultancy East Daley Capital said in a note last week.
Recommended Reading
Well Done Foundation Wins California Orphan Well Project
2024-02-12 - Nonprofit Well Done Foundation will plug orphan wells in Santa Barbara County, California, starting in Orcutt and Santa Maria.
NAPE: Turning Orphan Wells From a Hot Mess Into a Hot Opportunity
2024-02-09 - Certain orphaned wells across the U.S. could be plugged to earn carbon credits.
CNOOC Sets Increased 2024-2026 Production Targets
2024-01-25 - CNOOC Ltd. plans on $17.5B capex in 2024, with 63% of that dedicated to project development.
Gushing, Ohio: EOG Joins Ascent, Encino in Top Oil Wells
2024-01-22 - EOG’s latest wells in its new Ohio oil play are rolling into state public records, while Ascent Resources and Encino Energy are reporting the biggest producers. All three are landing 3-milers. Some are 3.5 miles.
Commentary: The Oil and Gas Future—Believe It or Not
2024-01-10 - If you believe the IEA’s analysis, plenty of oil and gas companies won’t survive very far into the future.