Texas Energy Retailer Griddy Heads For Bankruptcy: Wall Street Journal

(Reuters) – Texas energy retailer Griddy Energy LLC plans to file for bankruptcy after the state grid operator cut the company’s access to customers over unpaid bills following the Texas freeze, sources familiar with the matter said. to the Wall Street Journal.

Company officials were not immediately available for comment.

Griddy sold energy to customers at market prices. When energy prices skyrocketed to $ 9,000 per megawatt hour (MWh) and remained at that high level for days during the extreme cold of February, some customers received monthly bills of more than $ 10,000.

That compares with an average energy price of $ 22 per MWh in 2020 on the Electric Reliability Council of Texas (ERCOT), which operates the state’s power grid.

“ERCOT took our members and effectively shut down Griddy,” the company told clients on its website after ERCOT transferred Griddy’s approximately 10,000 clients to others.

In addition to losing his clients, the Texas attorney general is suing Griddy, saying he engaged in deceptive business practices by issuing excessive bills.

Griddy has said it urged customers to switch to other providers with a flat rate before the worst of the storm hit in February.

High gas and electric bills due to the Texas freeze have already forced two other companies to seek bankruptcy protection: Just Energy Group Inc and Brazos Electric Power Cooperative Inc.

Reporting by Scott DiSavino; Edited by Kim Coghill


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