CEO of Texas Power Grid Operator in the US Removed from Position

[Image source= AFP Yonhap News]

[Asia Economy Reporter Byunghee Park] Bill Magness, CEO of the Electric Reliability Council of Texas (ERCOT), which operates the power supply network in Texas, USA, was dismissed on the 3rd (local time).

According to Bloomberg News, the ERCOT Operating Committee voted 6 in favor and 1 against to resolve the dismissal of CEO Magness. Two committee members abstained.

This was in response to the responsibility for the large-scale power outage in the Texas area caused by the cold wave last month. The economic loss from the large-scale power outage in Texas is estimated to be up to $129 billion. More than 4 million households and offices were without electricity for several days, and dozens of people lost their lives due to the inability to withstand the cold.

ERCOT plans to appoint Magness's successor within two months.

Brad Jones, who previously served as COO at ERCOT and was the head of a power grid company in New York, is considered the most likely next CEO. Magness will continue to serve as CEO until a successor is decided. Magness has worked at ERCOT since 2010 and became CEO in 2016.

Earlier, on the 1st, Diane W. Walker, chairperson of the Texas Public Utility Commission, resigned. The Public Utility Commission has supervisory authority over ERCOT.

Meanwhile, on the same day, Texas power supplier Entrust Energy filed for bankruptcy protection. Entrust is the second power supplier to file for bankruptcy after the outage.

Previously, Brazos Electric Power Cooperative, the oldest and largest power supplier in Texas, filed for bankruptcy protection. Brazos declared bankruptcy, stating it could not bear the $1.8 billion cost billed by ERCOT. Entrust also filed for bankruptcy protection, claiming it could not repay the $234 million billed by ERCOT.

This content was produced with the assistance of AI translation services.