Griddy’s plan could free 24,000 from high bills

The bankruptcy plan filed by the retail power company Griddy would release some 24,000 customers from huge electrics bills run up during the recent winter storm and power crisis, Attorney General Ken Paxton said Tuesday.

Paxton, who recently sued Griddy alleging the company violated consumer protection laws, said his office is working with the company to release customers from some $29 million in unpaid electric bills and provide additional relief to customers who have already paid them. Griddy, based in California, uses a business model that exposes its customers to wholesale power prices, which skyrocketed to the state maximum of $9,000 per megawatt-hour for days during the freeze, resulting in bills in the thousands of dollars for its customers.

The attorney general’s office filed a lawsuit earlier this month claiming the retail power company used deceptive practices to mislead customers. On Monday, Griddy filed for bankruptcy, listing more than $33 million in debts to the state’s grid manager, the Electric Reliability Council of Texas, the utilities CenterPoint Energy and Oncor, and other creditors.

In a statement, the attorney general’s office said it will abate, or effectively suspend, the state lawsuit and civil investigative demand. The suit, however, can still be brought forward at another time.

The attorney general’s office said it will negotiate with Griddy in “good faith” to resolve the issues around the storm-related energy bills. Griddy’s lawyer did not respond to requests from comment.