Griddy Energy, the Texas electricity provider accused of charging customers thousands of dollars During Winterstorm, Uri said he filed for bankruptcy on Monday.
Griddy was a “thriving business with over 29,000 customers” before the winter storm hit, CEO Michael Fallquist said in a statement. The record-low temperature storm led to 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 supplier to file for bankruptcy since the storm. Brazos Electric Power Cooperative, which served more than 1.5 million Texans, submitted for Chapter 11 after collecting $ 2.1 billion in bills. Just Energy Group also filed for bankruptcy protection earlier this month.
Fallquist blamed the Texas power grid operator that Griddy was seeking Chapter 11 protection. The Texas Electric Reliability Council, known as ERCOT, “made a bad situation worse for our customers by setting prices at $ 9,000 per megawatt hour,” he said.
“ERCOT’s actions destroyed our business and caused financial damage to our customers,” said Fallquist.
Griddy is a defendant in a class action lawsuit filed last month by customers who have accused the company of price gouging. A customer, Lisa Khoury, said Griddy charged her $ 9,546 between February 1 and 19. That amount is 40 times more than her normal bill, she 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 classmates are seeking $ 1 billion in financial aid. Towering bills led the Texas Attorney General’s office earlier this month to sue Griddy for “false, deceptive and deceptive advertising and marketing practices.”
Griddy executives claim ERCOT is responsible for excessive utility bills. During the storm, Griddy asked customers to switch to other providers in an effort to avoid the high prices. However, many providers were unable to add new customers during the frozen period.
Griddy said in a statement that it did not take advantage of the February power outage and has no control over changes in energy prices. Griddy said it only had its usual $ 9.99 monthly fee from customers in its pocket when electricity prices soared during the storm.
Governor Greg of Texas Abbott also blamed ERCOT for the debacle. Four ERCOT board members stepped down last month in the wake of the storm’s damage. ERCOT supplies Texas 90% of its assets
Griddy said the bankruptcy reorganization plan frees customers from their unpaid electricity bills. The reorganization plan, which has not yet been made public, must be approved by a bankruptcy judge in Houston. According to court documents, the company’s debt is between $ 10 million and $ 50 million.