022621 Press Release - City of Denton Files Suit Against ERCOT Io`F FOR IMMEDIATE RELEASE
DENTON Ryan Adams • (940) 349-8565 • Ryan.Adams@cityofdenton.com
City of Denton Files Suit Against ERCOT
City Seeks to Prevent Unconstitutional Use of Funds
DENTON, TX, Feb. 26, 2021—On February 25, the City of Denton filed suit against the Electric
Reliability Council of Texas (ERCOT) in the District Court of Denton County seeking to prevent
the unconstitutional use of public funds. The City of Denton owns and operates Denton Municipal
Electric (DME).
ERCOT is using a mechanism within its protocols known as "uplift". Due to the recent record-
high wholesale energy prices, some ERCOT market participants have failed to pay ERCOT for
power purchases. Ultimately, uplift may spread the costs of those ERCOT market participants to
other market participants, including DME.
The City views the payment of the costs of other utilities as an unconstitutional gifting of public
funds and unconstitutional lending of its credit.
Late Thursday, the district court granted a Temporary Restraining Order in favor of the City of
Denton in this matter.
The City of Denton will explore all legal options to protect the financial assets of the City of
Denton and its ratepayers from improper use. As this is a pending legal matter, there is currently
no additional information or comment.
The City of Denton will provide updates when available.
A copy of the filing is attached.
Contact: Ryan Adams, (940) 349-8565, Ryan.Adams@cityofdenton.com
Visit www.cityofdenton.com for more news and to stay updated.
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