Anheuser-Busch sued Symmetry Energy Solutions alleging price gouging during “the worst winter storm to hit Texas in the last half century to line its poclets.”
The suit recalls that the February winter storm obstructed supplies of natural gas throughout the state, prompting the pipeline company used by Symmetry to issue an operational flow order restricting the usage of some of its customers. A-B’s usage was not restricted, the suit says, but A-B “operated at the minimum flow required to avoid catastrophic damage to the furnace in its gas plant and contamination in its brewery.”
A-B paid Symmetry $233,298.74, which is the amount A-B should owe for February, the lawsuit says. “But Symmetry has taken the position that Anheuser–Busch must pay for gas overtake based on a retroactive reduction of the Volume Commitment for that month and at a price nearly 100x what the contract ” allows.
Under the contract, A-B is obligated to take 62,139 million Btus over the entire month. A-B’s obligation is not a daily commitment, only a monthly one, the lawsuit states. If A-B takes more than the volume commitment for a month, it pays more. If it takes less, Symettry is obligated to issue A-B a credit.
During Winter Storm Uri, the pipeline company supplying Symmetry issued an operational flow order reducing the amount of gas that would be supplied to Symmetry for 10 days. As noted, A-B reduced its natural gas consumption to the minimum needed to avoid damage to its glass furnace and to avoid contamination in its brewery. The parties had agreed that the remedy for failure to comply with an operational flow order would be the penalties imposed by the natural gas transporter.
A-B had reduced its gas usage days before the pipeline transporter issued the operational flow order. When Symmetry notified A-B of the order, A-B responded that its usage was at the minimum to avoid “catastrophic damage to our furnace.” Symmetry never offered an indication that A-B should reduce its usage and also assured A-B that it wouldn’t be subject to any additional fees from Feb.20 forward.
A-B did reduce its usage during the storm, but for the month overall used 69,112 million Btus, exceeding th monthly volume commitment by 6,973 million Btus. A-B’s lawsuit shows a dramatic reduction in gas usage during the time of the storm, and notes that “stopping the supply of natural gas would ruin the furnace which could take millions of dollars and several months to rebuild.”
A-B’s lawsuit asks the court to resolve the obligations of the parties and doesn’t seek any additional damages.
Symmetry didn’t immediately respond to a request for comment. If it does, we’ll report its response.
