Texas Power Company Griddy Files for Bankruptcy as Aftermath of Winter Storm Continues – tech2.org

Texas Power Company Griddy Files for Bankruptcy as Aftermath of Winter Storm Continues


Griddy Energy, Texas Electricity Provider Accused of Charging Customers Thousands of dollars during winter storm Uri said Monday that it filed for bankruptcy.

Griddy was a “thriving business with more than 29,000 customers” before the winter storm hit, CEO Michael Fallquist said in a statement. The storm with record low temperatures caused a week-long freeze and left millions of people without power across Texas, causing an estimated $ 195 billion to $ 295 billion in property and economic damage.

Griddy is the third Texas energy provider to file for bankruptcy since the storm. The Brazos Electric Power Cooperative, which served more than 1.5 million Texans, filed for Chapter 11 after accumulating $ 2.1 billion in bills. Just Energy Group also filed for bankruptcy protection earlier this month.


Lessons from the Texas Power Grid Crisis

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Fallquist blamed the Texas power grid operator for Griddy seeking Chapter 11 protection. The Texas Electrical Reliability Council, known as ERCOT, “made things worse for our customers by continuing to price at $ 9,000 per megawatt hour. “, He said.

“ERCOT’s actions destroyed our business and caused financial damage to our clients,” said Fallquist.

Griddy is a defendant in a class action lawsuit filed last month by customers who have accused the company of price hikes. One customer, Lisa Khoury, said Griddy charged her $ 9,546 between February 1 and February 19. That amount is 40 times more than your typical bill, he said in court documents.

A Dallas resident told CNN his bill was $ 7,000, while another Texan reported a bill of $ 6,225. Khoury and other members of the class are seeking $ 1 billion in cash aid. Towering bills led the Texas Attorney General’s office earlier this month to sue Griddy, alleging “false, misleading and misleading advertising and marketing practices.”

Griddy executives contend that ERCOT is to blame for the excessive utility bills. During the storm, Griddy asked customers to switch to other providers in an attempt to avoid the high prices. However, many vendors were unable to add new customers during the freeze.


Texas power company files for bankruptcy

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Griddy said in a statement that it did not benefit from the February blackout and does not control changes in energy prices. Griddy said it only pocketed its usual $ 9.99 monthly fee from customers when electricity prices rose during the storm.

Texas Governor Greg Abbott also blamed ERCOT for the debacle. Four ERCOT board members resigned last month in the wake of storm damage. ERCOT supplies Texas with 90% of its power.

Griddy said its bankruptcy reorganization plan relieves customers of unpaid electricity bills. The reorganization plan, which has yet to be released, must be approved by a bankruptcy judge in Houston. The company lists its debt between $ 10 million and $ 50 million, according to court documents.

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