AUSTIN (KXAN) — Griddy customers left with high energy bills in the aftermath of February’s winter storm will be relieved of any and all outstanding balances to the company.
That’s due to a new settlement between the power company and the state of Texas. Attorney General Ken Paxton sued Griddy in March, claiming the power company unexpectedly left its customers with hundreds of thousands of dollars in bills as demand for energy during the winter storm spiked.
Griddy’s pricing model charges customers a $10 subscription fee, then uses the wholesale price of electricity, rather than a retail price, to charge customers for power. During the winter storm, wholesale prices went up more than 300 times its normal rate.
“Griddy customers felt an additional hit when the burden of skyrocketing energy costs hit their pocketbooks as well,” Paxton’s office said in a press release Monday.
Griddy filed for Chapter 11 bankruptcy protection in March, as well. The settlement in addition to Griddy’s bankruptcy plan of liquidation relieves former customers from any money owed, unless they choose to opt out of the release.
The attorney general’s office also says customers can file a legal claim in bankruptcy court to recover any money they may have already used to pay for energy during the winter storm.
“Winter Storm Uri devastated the lives of many Texans, and my office engaged in good faith negotiations with Griddy Energy, LLC to provide some relief after they filed for bankruptcy.” Paxton said in a press release. “I am pleased with the result of those negotiations, and I will continue to fight to protect the livelihoods of all who live in this great state.”