Griddy Energy customers who were facing exorbitant bills during Winter Storm Uri will not have to pay those outstanding debts after the bankrupt energy company reached a settlement with the Texas Attorney General’s Office.
Details of the settlement were announced by Attorney General Ken Paxton on Monday. Paxton said customers who have already paid Griddy Energy for electricity during the winter storm can pursue legal claims in bankruptcy court to get a refund.
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The settlement also requires Griddy and its parent company, Griddy Holdings, from making any false or misleading statements in the advertising of retail electricity.
“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 the news 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.”
The company charged customers thousands of dollars during the winter storm in February, despite the fact that millions of Texas homes were without power for days in freezing conditions.
Unlike energy customers who pay for a fixed-rate electric plan, Griddy Energy would pass the wholesale electricity rate directly to customers.
When the price of energy skyrocketed during the storm, Griddy Energy customers were left with the massive bills before Paxton sued the company in March.
After the storm, state lawmakers approved a bill banning electric retailers from offering wholesale rates to customers. It was the first major bill related to the winter storm approved by the Legislature in May.