AUSTIN, Texas — Earlier this month, Texas Attorney General Ken Paxton sued Griddy Energy, LLC to "hold them accountable for their escalation of last month’s winter storm disaster by debiting enormous amounts from customer accounts as Texans struggled to survive the storm,” according to Paxton's office.
Now, Griddy Energy announced it has filed for Chapter 11 bankruptcy protection following February's winter storm crisis. Griddy Energy faced criticism from its customers after they were reportedly hit with astronomically high bills during Winter Storm Uri, according to ABC News.
"Prior to Winter Storm Uri, Griddy was a thriving business with more than 29,000 customers who saved more than $17 million since 2017. The actions of ERCOT destroyed our business and caused financial harm to our customers," Griddy Chief Executive Officer Michael Fallquist said in a statement following the bankruptcy filing. "Our bankruptcy plan, if confirmed, provides relief for our former customers who were unable to pay their electricity bills resulting from the unprecedented prices. ERCOT made a bad situation worse for our customers by continuing to set prices at $9,000 per megawatt hour long after firm load shed instructions had stopped. Our customers paid 300 times more than the normal price for electricity during this period."
"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," Paxton said in a statement on Tuesday. "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 that through the bankruptcy plan, Griddy Energy 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. Paxton also assured the State and Griddy Energy will work in good faith to address relief for Texans who have already paid.
On Monday, the Texas Senate scrambled to pass a bill that would force ERCOT to reverse billions of dollars in charges for wholesale electricity during February's winter storms. Senate Bill 2142 became the first bill that either chamber of the Texas Legislature has passed this session. It will now head to the House on Tuesday.
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