Okla. heads to court over winter storm costs
OKLAHOMA CITY – Oklahoma Attorney General Gentner Drummond filed suit Wednesday against entities of two Texas energy companies, Enable Transfer LP and Symmetry Energy Solutions LLC, saying they artificially inflated natural gas prices and preyed on Oklahomans during Winter Storm Uri.
The storm hit in mid-February 2021, bringing ice, snow and record-breaking cold that caused hundreds of deaths and more than $200 billion in damage throughout the southern part of the country, most notably in Texas.
It spurred a desperate need for additional natural gas, Drummond said. He alleged Enable and Symmetry counted on higher demand with the arrival of Winter Storm Uri and schemed to artificially reduce supply.
The companies “reaped billions of dollars in extra profit from their wrongful conduct and the resulting surge in prices during the storm,” the lawsuits allege.
A story published in May 2021 by the Reuters news agency underscored Drummond’s claim. “Energy Transfer LP expects to gain roughly $2.4 billion from Winter Storm Uri,” the Reuters story said. It “was able to cash in on soaring prices for natural gas during and after the storm froze in production and crippled energy transportation infrastructure.”
“I believe the level of fraud perpetrated on Oklahomans during Winter Storm Uri is both staggering and unconscionable,” Drummond said in a statement Wednesday. “While many companies conducted themselves above board during that trying time, our analysis indicates that some bad actors reaped billions of dollars in illgotten gains. It is important that we do everything in our power to hold bad actors accountable for their actions.”
Drummond said his office will pursue additional litigation against other companies that he said engaged in market manipulation.
Enable and Symmetry marketed natural gas and operated intrastate natural gas pipelines throughout Oklahoma. Among their customers was the Grand River Dam Authority, the state’s largest public power utility. Many of Oklahoma’s public schools, cities, counties and hospitals are directly supplied natural gas by Symmetry.
Officials at Energy Transfer did not respond to requests for comment. Repeated calls to listed general numbers and numbers for media relations and investor relations departments went to voicemail.
A spokesperson for Symmetry said the company was reviewing the lawsuit, adding, “Symmetry, like many others, suffered the adverse effects of Winter Storm Uri and adamantly denies the unfounded allegations in the lawsuit, which it will vigorously defend.”
Sean Voskuhl, state director of the AARP of Oklahoma, said the organization welcomed legal action.
“The companies who reaped billions of dollars on the backs of hard-working Oklahomans during Winter Storm Uri must be held accountable. Frustrated utility customers have been demanding to know why they are paying for a ‘once-in-a-generation’ storm for decades,” Voskuhl said. “Oklahomans are relieved action is being taken against the companies who bilked customers out of billions of dollars...”