Sure. Sounds like he's totally within his rights to do so. Of course, he's still probably legally obligated to write that check, and he might want to look into backup generators for his business once he greets that Texas winter...
Or backup generators for the Texas summer. Don't forget that Texas isn't prepared for warm temperatures either!
There's a whole country of options that aren't on the extremes of Texas and New York - and I'd propose that most of them are better places to locate!