Denton Files Suit Against ERCOT Over ‘Illegal and Unconstitutional' Raid

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The city of Denton on Thursday filed a lawsuit against ERCOT to prevent what it calls "an illegal and unconstitutional" raid on cities that run their own utility companies.

The city owns and operates its own energy provider -- Denton Municipal Electric -- and says it sued to prevent ERCOT from shifting the cost of electricity not paid by some market participants to others, including cities.

The lawsuit says the city is prepared to pay its bills, but not those of others. The suit says cities cannot make those payments under the Texas constitution.

The suit was filed in the District Court of Denton County, where the judge granted a temporary restraining order to the city.

The city said it would explore "all legal options to protect the financial assets of the City of Denton and its ratepayers from improper use."

NBC 5 reached out to ERCOT for comment, who said "I’m sorry, but I’m not familiar with this lawsuit. We need time to review all lawsuits in full and will respond accordingly."

The city of Denton said it was notified Saturday the hearing on the application for a temporary injunction will be held March 9.

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