Texas Attorney General Ken Paxton (R) said Tuesday that $ 29 million in electric bills will be forgiven after electricity supplier Griddy filed for bankruptcy on Monday.
“My office sued Griddy Energy, under the Texas Deceptive Business Practices Act, to hold them accountable for the escalation of last month’s winter storm disaster by debiting huge amounts from customer accounts as Texans struggled to survive the storm, ”Paxton said in a statement.
“I made sure that Griddy’s proposed bankruptcy plan takes an important step by offering releases to approximately 24,000 former customers who owe $ 29.1 million in unpaid electric bills. Griddy and my office are participating in ongoing good faith negotiations to attempt to address additional relief for Griddy customers who have already paid their storm-related energy bills. ”
Paxton specified that through its 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” and that “Texas and Griddy will work in good faith to address relief for Texans who have already paid. “
Paxton had filed a lawsuit against Griddy under the Texas Deceptive Business Practices Act after some Texans were hit by abnormally high electricity bills during severe winter weather last month, including as power went out in large areas of the state. .
Dozens of people in Texas and surrounding states died during frigid conditions last month, and millions were without power for days. Authorities have said frozen machinery at natural gas plants fueled the outages.
Texas Governor Greg Abbott (R) praised the news, saying he will “continue to work with the legislature to resolve the remaining claims.”
The Texas Attorney General clears Griddy customers’ electric bills totaling $ 29.1 million.
This resolves the majority of residential customer claims from the winter storm.
I will continue to work with the legislature to resolve the remaining claims.
– Greg Abbott (@GregAbbott_TX) March 16, 2021