Texas customers of the Griddy Energy electric company are being relieved of more than $29 million in bills that surged during the state’s recent record cold snap.
Texas Attorney General Ken Paxton sued Griddy on behalf of about 24,000 customers under the state’s Deceptive Trade Practices Act.
The problem developed when Griddy, which sold electric plans with rates linked to the spot price of power on the Texas grid, allowed the typical rate of about $25 per megawatt-hour to surge to $9,000 during the deep freeze.
The Dallas Morning News reported Dallas resident DeAndré Upshaw still owed Griddy $7,100 for February after he paid $900 via automatic payments.
The report said Paxton confirmed Texas won’t move forward with its state lawsuit, and Griddy will work in good faith to resolve the billing.
Paxton said he’s also working on help for people who already paid.
“Griddy and my office are engaged in ongoing good faith negotiations to attempt to address additional relief for those Griddy customers who have already paid their storm-related energy bills,” Paxton said in a statement.
Texas Attorney General wipes out Griddy customers’ electric bills totaling $29.1 million.
This resolves most of the residential customer claims from the winter storm.
I will continue working with the legislature to resolve remaining claims.
— Greg Abbott (@GregAbbott_TX) March 16, 2021
Griddy decided to abandon operations when the state grid, the Electric Reliability Council of Texas, notified the company it was in default and being shut down.
Griddy said it had “no customers and little to no incoming payments.”
The Morning News said prices for wholesale electricity were set at $9,000 per megawatt-hour for almost 88 hours during the February energy crisis.
Some 4 million Texas homes were without power for an extended period.
ERCOT sent Griddy a bill for $29 million, which it passed on to customers, and it eventually decided there was no option but to file for liquidation.
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