By Guy Chapman – Navarro County Gazette
Texas Attorney General Ken Paxton announced today that 24,000 Texans who owe a collected 29.1 million to energy provider Griddy will be finding relief from February’s increased electric bills.
Earlier in the month, the attorney general’s office sued the energy provider under the Texas Deceptive Trade Practices Act after a week of freezing temperatures sent energy prices skyrocketing last month.
Griddy, which declared bankruptcy in Houston on March 15, sold electric plans with rates tied to the spot price of power on Texas’ electric grid. While prices normally run an average of $25 to $30 a megawatt hour under normal conditions were allowed to go to a maximum price of $9,000 a megawatt hour during February’s storm. While customers looked to switch their fixed plans before the adjusted prices hit, many ended up with huge electric bills.
AG Paxton took action to release former Griddy customers from the electric company’s bankruptcy. Through the bankruptcy plan, Griddy will release all outstanding payment obligations for customers unable to pay their energy bills due to the high prices charged during the storm.
“Griddy will work with it in good faith to resolve these matters,” Paxton said.
In return, Texas won’t move forward with its state court lawsuit and investigation.
Additionally, Paxton’s office is working with Griddy to provide relief for those customers who have in some case already paid several thousand dollars to the energy company.
“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.