When a Texas utility tried to walk away from natural-gas agreements after the 2021 winter storm, a state judge sent an important message: Contracts matter.

The case involved CPS Energy, the municipal utility serving San Antonio, and pipeline companies owned by Energy Transfer. During Winter Storm Uri, CPS Energy relied heavily on short-term gas purchases rather than securing enough long-term supply. When demand surged and gas prices spiked, the utility sought to escape contracts it had signed before the storm.