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CPS ENERGY v. ERCOT

No. 22-0056, No. 22-0196.

671 S.W.3d 605 (2023)

CPS ENERGY, Petitioner, v. ELECTRIC RELIABILITY COUNCIL OF TEXAS, Respondent. Electric Reliability Council of Texas, Inc., Petitioner, v. Panda Power Generation Infrastructure Fund, LLC d/b/a Panda Power Funds; Panda Sherman Power Holdings, LLC; Panda Sherman Power Intermediate Holdings I, LLC; Panda Sherman Power Intermediate Holdings II, LLC; Panda Sherman Power, LLC; Panda Temple Power Holdings, LLC; Panda Temple Power Intermediate Holdings I, LLC; Panda Temple Power Intermediate Holdings II, LLC; Panda Temple Power, LLC; Panda Temple Power II Holdings, LLC; Panda Temple Power II Intermediate Holdings I, LLC; Panda Temple Power II Intermediate Holdings II, LLC; and Panda Temple Power II, LLC, Respondents.

Supreme Court of Texas.

OPINION DELIVERED: June 23, 2023.

Attorney(s) appearing for the Case

Elliot Clark , Wallace B. Jefferson , D. Blake Wilson , Austin, Rachel Anne Ekery , Houston, Nicholas B. Bacarisse , Ron H. Moss , Austin, for Respondents Electric Reliability Council of Texas, Inc., Magness, William L. "Bill" in 22-0056.

Brent Webster , Houston, John R. Hulme , Austin, Judd E. Stone II , Kyle Highful , Atty. Gen. W. Kenneth Paxton Jr., Bill Davis, Austin, for Amicus Curiae Public Utility Commission of Texas in 22-0056.

James Sullivan , for Amicus Curiae Abbott, Greg in 22-0056.

Jennifer Nicole Pulliam , Christopher D. Anderson , Bryan, for Amicus Curiae Rayburn Country Electrical Cooperative, Inc. in 22-0056.

Glenn Arlen Ballard Jr. , Adam C. Kiehne , Houston, Harriet O'Neill , Austin, Lauren Valkenaar , Greta McFarling , Blake Stribling , Mukul S. Kelkar , Houston, Adrienne Jimenez , Barry A. Chasnoff , for Petitioner in 22-0056.

Patrick Leahy , Juliana Sersen , Austin, Macey Reasoner Stokes , George Harold Fibbe , Houston, Andrea Moore Stover , Austin, J. Mark Little , Houston, for Amicus Curiae Calpine Corporation in 22-0056.

John Hubbard , Katherine Coleman , Michael A. McMillin , Phillip Glynn Oldham , Austin, for Amicus Curiae Texas Industrial Energy Consumers in 22-0196.

Leslie Conant Thorne , Andrew W. Guthrie , Werner A. Powers , Dallas, Roger D. Sanders , Sherman, Ben L. Mesches , Christopher Knight , for Respondent in 22-0196, Hobart Hind, George McMullin Jr., Dallas, for Amicus Curiae National Association of Subrogation Professionals in 22-0196.

Kyle Highful , Bill Davis , Austin, Brent Webster , Houston, Judd E. Stone II , Warren Kenneth Paxton , Austin, for Amicus Curiae Public Utility Commission of Texas in 22-0196.

James Sullivan , for Amicus Curiae Abbott, Greg in 22-0196.

Nicholas B. Bacarisse , Wallace B. Jefferson , Austin, Chad Vann Seely , Erika M. Kane , J. Hampton Skelton , Austin, Rachel Anne Ekery , Houston, Brandon Duane Gleason , Austin, Nathan Myrick Higbee , for Petitioner The Electric Reliability Council of Texas, Inc. (ERCOT) in 22-0196.

Chief Justice Hecht delivered the opinion of the Court, in which Justice Blacklock, Justice Bland, Justice Huddle, and Justice Young joined, and in which Justice Lehrmann, Justice Boyd, Justice Devine, and Justice Busby joined except as to Part IV.

These two cases present three questions concerning the Electric Reliability Council of Texas, Inc.: (1) Is ERCOT a governmental unit as defined in the Texas Tort Claims Act and thereby entitled to pursue an interlocutory appeal from the denial of a plea to the jurisdiction? (2) Does the Public Utility Commission of Texas have exclusive jurisdiction over the parties' claims against ERCOT? And (3) is ERCOT entitled to sovereign immunity...

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