As part of the wholesale energy retailer's Chapter 11 bankruptcy agreement, Griddy's 24,000 former customers will no longer be saddled with the massive electric bills they received shortly after last month's winter storm.
In a statement, Texas Attorney General Ken Paxton said that his office sued Griddy Energy, under the Texas Deceptive Trade Practices Act, to hold them accountable for the massive escalation of their electric bills due to last month's winter storm disaster. "I ensured that Griddy's proposed bankruptcy plan takes an important step forward by offering releases to approximately 24,000 former customers who owe $29.1 million in unpaid electric bills," said Paxton. "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."
The news came as a surprise to the Texas Public Utility Commission Chairman Arthur D'Andrea, who was testifying before the State House State Affairs Committee about directing ERCOT to retroactively re-adjust the high energy rates set during the storm. "I'm so grateful for the Attorney General, for his leadership on this," said D'Andrea. "I think it was a really creative solution it took to help out those Griddy folks and I have already committed to do what I can on the ERCOT side."
According to Paxton:
The following steps are being taken to ensure Texans are protected:
• Through the bankruptcy plan, Griddy will release all outstanding payment obligations for those Texas consumers who were unable to pay their energy bills due to the high prices charged during the storm.
• Texas will abate the state court lawsuit and Civil Investigative Demand and Griddy will work with it in good faith to resolve these matters.
• Texas and Griddy will work in good faith to address relief for Texans who have already paid.
Information about Griddy's Chapter 11 case, including access to Court documents, is available here.
