Texas customers of the Griddy Energy utility are being relieved of some $29 million in electricity bills that surged during the state's recent snowstorm.
The result follows a legal action by Texas Attorney General Ken Paxton under the state's Deceptive Trade Practices Act against Griddy on behalf of about 24,000 customers.
The problem developed when Griddy, which had sold electric plans with rates linked to the spot price of power on the Texas grid, allowed rates that normally are about $25 per megawatt-hour surge to $9,000 during the recent storm.
The Dallas News reported that Dallas resident DeAndré Upshaw "still owed Griddy $7,100 for February after he paid $900 via automatic payments from his checking account."
He called it "super" that the bill was being addressed.
The report explained Paxton's office sued Griddy, and then released the company's former customers from its bankruptcy plan, which it filed Monday in Houston.
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 surges.
Paxton said he's also working on help for people who already did pay.
"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
The company decided to abandon operations when the state grid, the Electric Reliability Council of Texas, notified Griddy it was in default and being shut down.
Griddy said it had "no customers and little to no incoming payments."
The News reported, "Prices for wholesale electricity were set at $9,000 per megawatt-hour for almost 88 hours during the February energy crisis, which included extended power outages for 4 million Texans."
The situation had ERCOT send Griddy a bill for $29 million, which it billed to customers, and it eventually decided there was no option but to file for liquidation, meaning its operations are closing.
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