As the operator of the Texas electric grid, the Electric Reliability Council of Texas is familiar with high stakes. But it's not extreme weather that has the grid operator on its toes this time. It's litigation before the Texas Supreme Court over whether ERCOT is in fact a division of state government and thus protected by sovereign immunity, meaning it can't be sued. Merchant power developer Panda Power and San Antonio public utility CPS Energy are leading the charge against ERCOT, and market participants and consumers alike are wondering what it will mean for their wallets.

S&P Global Commodity Insights senior power editor Mark Watson caught up with K&L Gates partner Maria Faconti for her take on the case after oral arguments were held Jan. 9. She laid out the consequences for the grid operator, market participants and Texans, and what happens next if either Panda or CPS prevails in their lawsuits against ERCOT.

Stick around after the interview for Chris Van Moessner with the Market Minute, a look at near-term oil market drivers.

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